Document:

exv4w2

 

Exhibit 4.2

Unless this Security is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), 55 Water Street, New York, New York, to the Company (as
defined below) or its agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as
is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

This Security is a Global Security within the meaning set forth in the Indenture hereinafter
referred to and is registered in the name of DTC or a nominee of DTC. This Security is
exchangeable for Securities registered in the name of a person other than DTC or its nominee only
in the limited circumstances described in the Indenture, and may not be transferred except as a
whole by DTC to a nominee of DTC or another nominee of DTC or by DTC or its nominee to a successor
Depository or its nominee.

			
	 	 	 
	Registered No. 001
	 	PRINCIPAL AMOUNT
	CUSIP No.: 637417 AB2
	 	$250,000,000.00 (subject to
	 
	 	revision as set 
forth below)

NATIONAL RETAIL PROPERTIES, INC.

6.875% NOTE DUE 2017

     NATIONAL RETAIL PROPERTIES, INC., a corporation duly organized and existing under the laws of
the State of Maryland (herein referred to as the “Company” which term shall include any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to CEDE & CO., or registered assigns, upon presentation, the principal sum of TWO HUNDRED
FIFTY MILLION AND 00/100THS DOLLARS ($250,000,000.00), as may be revised by the Schedule of
Increases or Decreases in Global Security attached hereto, on October 15, 2017 and to pay interest
on the outstanding principal amount thereon from September 10, 2007, or from the immediately
preceding Interest Payment Date to which interest has been paid or duly provided for, semi-annually
in arrears on April 15 and October 15 in each year, commencing April 15, 2008, at the rate of
6.875% per annum, until the entire principal hereof is paid or made available for payment. The
interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security is registered at the
close of business on the Regular Record Date for such interest which shall be the April 1 or
October 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date, and may either be paid to the Person in whose
name this Security is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
the Securities not more than 15 days and not less than 10 days prior to such Special Record Date,
or may be paid at any time in

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any other lawful manner not inconsistent with the requirements of any securities exchange on which
the Securities may be listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture. Payment of the principal of and interest on this Security will be
made at the office or agency maintained for that purpose in the City of St. Paul, Minnesota, or
elsewhere as provided in the Indenture, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts; provided, however,
that at the option of the Company payments of principal and interest on the 6.875% Notes (other
than payments of principal and interest due at Maturity) may be made (i) by check mailed to the
address of the Person entitled thereto as such address shall appear in the Security Register or
(ii) by wire transfer to an account of the Person entitled thereto located within the United
States, provided, that such Person owns 6.875% Notes in an aggregate principal amount of at least
$1,000,000 and such Person makes a written request therefor for the appropriate Interest Payment
Date.

          Securities of this series are one of a duly authorized issue of securities of the Company
(herein called the “Securities”), issued and to be issued in one or more series under an Indenture,
dated as of March 25, 1998 (as supplemented, herein called the “Indenture”), between the Company
and U.S. Bank National Association, as successor trustee to Wachovia Bank, National Association
(formerly First Union National Bank) (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto,
including, Supplemental Indenture No. 8 thereto, dated September 10, 2007 between the Company and
the Trustee, reference is hereby made for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are authenticated and delivered. This
Security is one of the series designated in the first page thereof, initially having an aggregate
principal amount equal to $250,000,000, provided, that the Company may, without the consent
of the Holders of the then Outstanding 6.875% Notes, “reopen” this series of Securities so as to
increase the aggregate principal amount of 6.875% Notes Outstanding in compliance with the
procedures set forth in the Indenture, including Sections 3.1 and 3.3 thereof, so long as any such
additional notes have the same tenor and terms (including, without limitation, rights to receive
accrued and unpaid interest) as the 6.875% Notes then Outstanding.

          Securities of this series may be redeemed at any time at the option of the Company, in whole
or in part, upon notice of not more than 60 nor less than 30 days prior to the Redemption Date, at
a redemption price equal to the sum of (i) the principal amount of the Securities being redeemed
plus accrued interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with
respect to such Securities.

          The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of
the Company on this Security and (ii) certain restrictive covenants and the related defaults and
Events of Default applicable to the Company, in each case, upon compliance by the Company with
certain conditions set forth in the Indenture, which provisions apply to this Security.

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          If an Event of Default with respect to the Securities shall occur and be continuing, the
principal of the Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless (i) such Holder
shall have previously given written notice to the Trustee of a continuing Event of Default with
respect to the Securities, (ii) the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity and (iii) the Trustee shall not have received from the Holders of a majority
in principal amount of Securities of this series at the time Outstanding a direction inconsistent
with such request, and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of principal hereof or
any interest on or after the respective due dates expressed herein.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series of Securities then Outstanding affected thereby. The
Indenture also contains provisions permitting the Holders of specified percentages in principal
amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Security.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and Make-Whole Amount, if any) and interest on this Security at the times, place
and rate, and in the coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any Place of Payment where
the principal of (and Make-Whole Amount, if any) and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Securities of this series, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated transferee or
transferees.

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          The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series of a different authorized
denomination, as requested by the Holder surrendering the same.

          This 6.875% Note is a Global Security. As provided in and subject to the provisions of the
Indenture, definitive Securities shall be issued to all owners of beneficial interests in a Global
Security in exchange for such interests if: (1) the depositary with respect to the 6.875% Notes
(which shall initially be DTC) notifies the Company that it is unwilling or unable to continue as
depositary for such Global Security or the depositary ceases to be a clearing agency registered
under the Exchange Act, at a time when the depositary is required to be so registered in order to
act as depositary, and in each case a successor depositary is not appointed by the Company within
90 days of such notice; (2) an Event of Default has occurred and is continuing and the Security
Registrar has received a request from the depositary or (3) the Company executes and delivers to
the Trustee and Security Registrar an Officers’ Certificate stating that such Global Security shall
be so exchangeable. In connection with the exchange of an entire Global Security for definitive
Securities pursuant to this paragraph, such Global Security shall be deemed to be surrendered to
the Trustee for cancellation, and the Company shall execute and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the depositary in exchange for its beneficial
interest in such Global Security, an equal aggregate principal amount of definitive Securities of
authorized denominations.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          No recourse under or upon any obligation, covenant or agreement contained in the Indenture or
in this Security, or because of any indebtedness evidenced hereby or thereby, shall be had against
any promoter, as such, or against any past, present or future shareholder, officer or director, as
such, of the Company or of any successor, either directly or through the Company or any successor,
under any rule of law, statute or constitutional provision or by the enforcement of any assessment
or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and
released by the acceptance of this Security by the Holder thereof and as part of the consideration
for the issue of the Securities of this series.

          All capitalized terms used in this Security which are used herein but not defined herein shall
have the meanings assigned to them in the Indenture.

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          THE INDENTURE AND THE SECURITIES, INCLUDING THIS SECURITY, SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

          Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused “CUSIP” numbers to be printed on the Securities of this series
as a convenience to the Holders of such Securities. No representation is made as to the
correctness or accuracy of such CUSIP numbers as printed on the Securities, and reliance may be
placed only on the other identification numbers printed hereon.

          Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

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     IN WITNESS WHEREOF, NATIONAL RETAIL PROPERTIES, INC. has caused this instrument to be duly
executed under its corporate seal.

Dated: September 10, 2007

	 	 	 	 	 	 
	 	 	NATIONAL RETAIL PROPERTIES, INC.

 	 
	 	 	By:  	 	 
	[SEAL] 	 	 	Kevin B. Habicht 	 
	 	 	 	Executive Vice President,

Chief Financial Officer,

Assistant Secretary and Treasurer 	 
	 
	Attest:

 	 	 	 	 	 
	
 	 	 	 	 	 
	Secretary 	 	 	 	 	 	 
	 	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. BANK, NATIONAL ASSOCIATION,

as Trustee

 	 
	Dated:  September 10, 2007
 	By:  	 	 
	 	 	Terence Rawlins 	 
	 	 	Vice President 	 
	 

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ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby

Sells, assigns and transfers unto

	 	 	 
	PLEASE INSERT SOCIAL
	 	 
	SECURITY OR OTHER IDENTIFYING
	 	 
	NUMBER OF ASSIGNEE
	 	 
	 

	 	 
	 	 	 

 
(Please Print or Typewrite Name and Address including

Zip Code of Assignee)

 
the within Security of National Retail Properties, Inc. and hereby does irrevocably constitute and
appoint

	 	 	 
	 

	 	Attorney
	 
	 	 
	to transfer said Security on the books of the within-named Company with full power of substitution in the premises.

	 	 	 	 	 	 	 
	 	 	 
	Dated: 	 	 	
 	 
	 	 	 	 
 	 
	 

NOTICE: The signature to this assignment must correspond with the name as it appears on the first
page of the within Security in every particular, without alteration or enlargement or any change
whatever.

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SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	 	 
	 	 	 	 	Amount of Decrease	 	 	Amount of Increase	 	 	this Global	 	 	Signature of	 
	 	 	 	 	in Principal Amount	 	 	in Principal Amount	 	 	Security Following	 	 	Authorized Officer	 
	 	 	 	 	of this Global	 	 	of this Global	 	 	Such Increase or	 	 	of Trustee or	 
	 	Date	 	 	Security	 	 	Security	 	 	Decrease	 	 	Custodian	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

-8-exv10w01

 

Exhibit 10.1

Second Amendment to the ARA Alliance, Purchase, and Production

Agreement

This Second Amendment to the ARA Alliance, Purchase, and Production Agreement (“Second
Amendment”) is made and entered into effective as of the 1st day of January, 2007 (“Effective Date
of the Second Amendment”), by and between DSM Food Specialties B.V., a Besloten Vennootschap
organized under the laws of the Netherlands with its principal place of business at A. Fleminglaan
1, 2613 AX Delft, the Netherlands (“DSM”), and MARTEK BIOSCIENCES CORPORATION, a corporation
organized under the laws of the State of Delaware with its principal place of business at 6480
Dobbin Road, Columbia, Maryland 21045 (“Martek”), who, intending to be legally bound, hereby agree
as follows:

WITNESSETH:

     WHEREAS Martek and DSM have previously entered into an ARA Alliance, Purchase, and Production
Agreement dated April 19, 2004 pursuant to which Martek and DSM entered into cross-licensing,
purchase, and production arrangements, as amended by the First Amendment thereto dated December 31,
2005 (the “Agreement”) related to ARA; and

     WHEREAS Martek and DSM now wish to further amend, clarify and expand certain provisions in the
Agreement as set forth herein.

     NOW, THEREFORE, effective as of the Effective Date of the Second Amendment, the parties hereto
agree to amend the Agreement as follows:

     Capitalized terms, unless otherwise defined herein, shall have the meaning given in the
Agreement.

1. Definitions. 

A. Section 2 of the Agreement is hereby amended to add the following definitions:

     2.34A * shall mean symptoms of, damage to or deterioration of the * as a result of *.

     2.38A “DSM Adult Application Customer” shall have the meaning set forth in Section
7.4(f).

     2.38B “DSM Adult ARA Applications” shall have the meaning set forth in Section 7.4(f).

     2.38C “DSM Adult ARA Products” shall have the meaning set forth in Section 7.4(f).

     2.84A “Interim Period” shall mean the calendar years 2007, 2008, 2009 and 2010 (if the
2010 Minimum Threshold is met).

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

1

 

     2.87A “Jointly Funded ARA Research Project” shall have the meaning set forth in Section
7.1(c)(ii).

     2.139A “R&D Plan” shall mean a summary of research and development work on ARA
planned by the parties for the Succeeding Year.

     2.142AA * shall mean the use of products derived or sourced from ARA Products as a
source of *and * in *, but any consumer products using such * shall not (i) contain an ARA
content greater than * of the * of the end consumer product, (ii) be labeled as containing
ARA or (iii) be intended to provide ARA for *.

     2.169 “2010 Minimum Threshold” shall mean Martek’s good faith estimate of Martek’s
customers’ demand based on forecasts provided by Martek’s customers for ARA Products for
calendar year 2010 as of November 1, 2009 of * Units of ARA or more. Martek will share with
DSM all relevant data received from customers to confirm such forecasts, subject to any
applicable confidentiality obligations.

			
	B.	 	The following subsections of Section 2 of the Agreement are hereby deleted in their entirety
and replaced with the following:

	 	2.49	 	“DSM Mark Up” shall have the meaning set forth in Section 6.1.
	 
	 	2.68	 	“Fixed Budget Price” shall be determined as specified in Section 6.1.
	 
	 	2.132	 	Reserved.
	 
	 	2.133	 	Reserved.
	 
	 	2.134	 	Reserved.
	 
	 	2.138	 	Reserved.
	 
	 	2.158	 	Reserved.

2. Amendment to Section 5.5 of the Agreement. Section 5.5(a) of the Agreement is hereby
amended by inserting the following proviso immediately prior to the end of the first sentence
thereof:

“; provided, however, that, from and after the Effective Date of the Second
Amendment, the foregoing requirement as well as the remaining provisions of this Section 5.5 shall
not apply to any sale by DSM or its Affiliates of, and DSM and its Affiliates shall at all times
after such date be entitled to sell, DSM Adult ARA Products for a DSM Adult ARA Application on the
terms and subject to the conditions set forth in Section 7.4(f) of this Agreement.”

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

2

 

3. Amendments to Section 6.1 of the Agreement. The following sections are hereby inserted
as new Sections 6.1(m), 6.1(n), 6.1(o), 6.1(p), 6.1(q), 6.1(r), 6.1(s), 6.1(t), 6.1(u) and 6.1(v)
of the Agreement:

     (m) The parties agree that within five (5) days following the execution date of the Second
Amendment, DSM will issue a * credit to Martek in full and complete resolution, discharge and
satisfaction of all outstanding issues with respect to any payments owed by one party to the other
under this Agreement prior to the Effective Date of the Second Amendment. Martek shall be
permitted to apply such credit to any amounts due from Martek under this Agreement after the
Effective Date of the Second Amendment.

     (n) In the Interim Period, other than as specifically noted below, the provisions of Sections
6.1 through 6.3 governing the determination of the Fixed Budget Price per Unit of ARA and/or any
components thereof or adjustments thereto (but for clarity not those provisions of such Sections
that do not directly impact the determination of the Fixed Budget Price per Unit of ARA or any
adjustment thereto) and the provisions of Section 6.4 shall not apply and the parties agree on the
following pricing terms and conditions in lieu thereof (subject, for the avoidance of doubt, to
Sections 3.3A, 5.4, 6.5, 6.7, 6.12 and 6.15):

	 	(i)	 	For calendar year 2007, Martek will purchase a minimum of * Units of ARA from
DSM. The Fixed Budget Price per Unit of ARA for 2007 is *, consisting of a DSM Fixed
Cost per Unit of ARA of *, plus a DSM Variable Cost per Unit of ARA of*, plus a DSM
Mark Up per Unit of ARA of *. Martek will have the right to purchase up to an
additional * Units of ARA during 2007 at a Fixed Budget Price per Unit of ARA of *,
consisting of a DSM Variable Cost per Unit of ARA of *, plus a DSM Mark Up per Unit of
ARA of *.
	 
	 	(ii)	 	For calendar year 2008, Martek will purchase a minimum of * Units of ARA
from DSM. The Fixed Budget Price per Unit of ARA for 2008 will be calculated as
follows:

	 	(a)	 	The DSM Fixed Cost per Unit of ARA, which shall be
an agreed amount of *, subject to any inflation adjustment as provided in
Section 6.1(n)(x) below; plus
	 
	 	(b)	 	The 2008 DSM Variable Cost per Unit of ARA, which
shall be agreed by the parties on or before January 1, 2008, but which
shall be equal to * per Unit of ARA, reduced by * of any improvements
resulting from R&D performed by either of the parties and/or incremental
process and production improvements

	 	i.	 	actually implemented prior to
2008, and/or
	 
	 	ii.	 	achieved, as established by the
R&D Committee, prior to 2008 and scheduled, as agreed upon by
the Committee, to be implemented during 2008,

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

3

 

	 	 	 	and which shall be further adjusted to reflect the impact of any rate
adjustments from January 1, 2007 to be made pursuant to Section 6.1(c) of
the Agreement using the methodology outlined in Schedule 6.1(n) attached
hereto.
	 
	 	 	 	      When determining the 2008 DSM Variable Cost per Unit of ARA, the
parties will agree whether or not to fix such cost at an agreed upon risk
premium for the entire year or allow such cost to fluctuate based on any
rate adjustments to be made pursuant to Section 6.1(c) of the Agreement
using the methodology outlined in Schedule 6.1(n) attached hereto. Under
no circumstances, however, will the DSM Variable Cost per Unit of ARA for
2008 exceed * plus any agreed upon risk premium, except as adjusted
pursuant to Section 6.1(c) of the Agreement using the methodology outlined
in Schedule 6.1(n) attached hereto; plus
	 
	 	(c)	 	The 2008 DSM Mark Up per Unit of ARA, which will be
calculated by increasing the 2007 DSM Mark Up per Unit of ARA by * of any
reduction of DSM Variable Cost per Unit of ARA from *, calculated as
described in Section 6.1(n)(ii)(b) above, plus any inflation adjustments
as provided in Section 6.1(d)(i). Rate adjustments pursuant to Section
6.1(c) of the Agreement using the methodology outlined in Schedule 6.1(n)
attached hereto shall not be considered in such calculation.

	 	 	 	For 2008, Martek will have the right to purchase up to an additional * Units of ARA
at a Fixed Budget Price per Unit of ARA consisting of the DSM Variable Cost per Unit
of ARA calculated in accordance with Section 6.1(n)(ii)(b) above, plus * of the DSM
Mark Up per Unit of ARA calculated in accordance with Section 6.1(n)(ii)(c) above.
	 
	 	(iii)	 	For calendar year 2009, Martek may purchase up to * Units of ARA, and the
Fixed Budget Price per Unit of ARA for 2009 will be calculated as follows:

	 	(a)	 	The DSM Fixed Cost per Unit of ARA, which shall be
an agreed amount of * divided by the number of Units of ARA forecasted
for purchase by Martek during 2009 as of November 1, 2008, subject to a
reconciliation based on actual 2009 purchases (to ensure that the full*
is paid) which shall be made in the first quarter of 2010, and subject
to any inflation adjustment as provided in Section 6.1(n)(x) below; plus
	 
	 	(b)	 	The 2009 DSM Variable Cost per Unit of ARA, which
shall be agreed by the parties on or before January 1, 2009, but which
shall be equal to * per Unit of ARA, reduced by * of any improvements
resulting from R&D performed by either of the parties and/or incremental
process and production improvements

	 	     i.	 	actually implemented prior to 2009, and/or

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

4

 

	 	     ii.	 	achieved, as established by the
R&D Committee, prior to 2009 and scheduled, as agreed upon by
the Committee, to be implemented during 2009,

	 	 	 	and which shall be further adjusted to reflect the impact of any rate
adjustments from January 1, 2007 to be made pursuant to Section 6.1(c) of
the Agreement using the methodology outlined in Schedule 6.1(n) attached
hereto.
	 
	 	 	 	      When determining the 2009 DSM Variable Cost per Unit of ARA, the
parties will agree whether or not to fix such cost at an agreed upon risk
premium for the entire year or allow such cost to fluctuate based on any
rate adjustments to be made pursuant to Section 6.1(c) of the Agreement
using the methodology outlined in Schedule 6.1(n) attached hereto. Under
no circumstances, however, will the DSM Variable Cost per Unit of ARA for
2009 exceed * plus any agreed upon risk premium, except as adjusted
pursuant to Section 6.1(c) of the Agreement using the methodology outlined
in Schedule 6.1(n) attached hereto; plus
	 
	 	(c)	 	The 2009 DSM Mark Up per Unit of ARA, which will be
calculated by increasing the 2007 DSM Mark Up per Unit of ARA by * of any
cumulative reduction of DSM Variable Cost per Unit of ARA from *,
calculated as described in Section 6.1(n)(iii)(b) above, plus any
inflation adjustments as provided in Section 6.1(d)(i). Rate adjustments
pursuant to Section 6.1(c) of the Agreement using the methodology
outlined in Schedule 6.1(n) attached hereto shall not be considered in
such calculation.

	 	 	 	If Martek purchases additional Units of ARA above the amount forecasted for 2009 as
of November 1, 2008, the Fixed Budget Price per Unit of ARA for such additional
Units of ARA will consist of the DSM Variable Cost per Unit of ARA calculated in
accordance with Section 6.1(n)(iii)(b) above, plus * of the DSM Mark Up per Unit of
ARA calculated in accordance with Section 6.1(n)(iii)(c) above.
	 
	 	(iv)	 	For calendar year 2010, provided that the 2010 Minimum Threshold is met,
Martek may purchase between * and * Units of ARA, and the Fixed Budget Price per Unit
of ARA for 2010 will be calculated as follows:

	 	(a)	 	The DSM Fixed Cost per Unit of ARA, which shall be
an agreed amount of * divided by the number of Units of ARA forecasted
for purchase by Martek during 2010 as of November 1, 2009, subject to a
reconciliation based on actual 2010 purchases (to ensure that the full *
is paid) which shall be made in the first quarter of 2011, and subject to
any inflation adjustment as provided in Section 6.1(n)(x) below; plus

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

5

 

	 	(b)	 	The 2010 DSM Variable Cost per Unit of ARA, which
shall be agreed by the parties on or before January 1, 2010, but which
shall be equal to * per Unit of ARA, reduced by * of any improvements
resulting from R&D performed by either of the parties and/or incremental
process and production improvements

	 	     i.	 	actually implemented prior to
2010, and/or
	 
	 	     ii.	 	achieved, as established by the
R&D Committee, prior to 2010 and scheduled, as agreed upon by
the Committee, to be implemented during 2010,

	 	 	 	and which shall be further adjusted to reflect the impact of any rate
adjustments from January 1, 2007 to be made pursuant to Section 6.1(c) of
the Agreement using the methodology outlined in Schedule 6.1(n) attached
hereto.
	 
	 	 	 	      When determining the 2010 DSM Variable Cost per Unit of ARA, the
parties will agree whether or not to fix such cost for the entire year at
an agreed upon risk premium or allow such cost to fluctuate based on any
rate adjustments to be made pursuant to Section 6.1(c) of the Agreement
using the methodology outlined in Schedule 6.1(n) attached hereto. Under
no circumstances, however, will the DSM Variable Cost per Unit of ARA for
2010 exceed * plus any agreed upon risk premium, except as adjusted
pursuant to Section 6.1(c) of the Agreement using the methodology outlined
in Schedule 6.1(n) attached hereto; plus
	 
	 	(c)	 	The 2010 DSM Mark Up per Unit of ARA, which will be
calculated by increasing the 2007 DSM Mark Up per Unit of ARA by * of any
cumulative reduction of DSM Variable Cost per Unit of ARA from *,
calculated as described in Section 6.1(n)(iv)(b) above, plus any
inflation adjustments as provided in Section 6.1(d)(i). Rate adjustments
pursuant to Section 6.1(c) of the Agreement using the methodology
outlined in Schedule 6.1(n) attached hereto shall not be considered in
such calculation.

	 	 	 	If the 2010 Minimum Threshold is met and Martek purchases additional Units of ARA
above the amount forecasted for 2010 as of November 1, 2009, the Fixed Budget Price
per Unit of ARA for such additional Units of ARA will consist of the DSM Variable
Cost per Unit of ARA calculated in accordance with Section 6.1(n)(iv)(b) above, plus
* of the DSM Mark Up per Unit of ARA calculated in accordance with Section
6.1(n)(iv)(c) above.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

6

 

	 	(v)	 	If the 2010 Minimum Threshold is not met, then the pricing provisions set
forth in this Section 6.1(n) will not apply for calendar year 2010 and the other
provisions governing the determination of the Fixed Budget Price per Unit of ARA as
set forth in Sections 6.1 through 6.4 of the Agreement shall apply. Notwithstanding
the foregoing, if, based upon Martek’s good faith estimate of Martek’s customers’
demand for ARA products for calendar year 2010, the 2010 Minimum Threshold was not
met, but the 2010 aggregate amount of ARA Products actually purchased from Martek by
its customers during calendar year 2010 equals or exceeds * Units of ARA, then the
2010 Minimum Threshold will be considered met, the Fixed Budget Price for 2010 shall
be recalculated as if the pricing provisions set forth in this Section 6.1(n)
applied, and any over or underpayments made by Martek for 2010 purchases will be
refunded to or paid by Martek within forty-five (45) days following the end of
calendar year 2010. For 2007 (for the third and fourth quarters), 2008, 2009, 2010,
and 2011, within 45 days of the end of each calendar quarter, Martek shall provide
DSM with a written quarterly statement of its aggregate sales of ARA Products during
such quarter.
	 
	 	(vi)	 	The parties agree that in the Interim Period, Martek shall pay for all
transport from both the Belvidere and Capua facilities Ex-Works and arrange (or have
arranged by DSM) transport of Units of ARA in line with DSM’s production planning and
Martek’s Purchase Orders, except that for volumes over * Units of ARA shipped from
the Capua facility in any such year, Martek shall only pay for shipping Ex-Works from
Capua as if the material had been shipped Ex-Works from Belvidere.
	 
	 	(vii)	 	* of all purchases of Units of ARA made by Martek in the Interim Period
will be paid to DSM in * (using an exchange rate of * as applied to the amounts set
forth herein). For those purchases paid in Euros, for each * fluctuation in the
exchange rate above or below * as of the date of payment, Martek’s Fixed Budget Price
per Unit of ARA will be adjusted by *. Reconciliations will be performed by the
parties on a quarterly basis to determine the * fluctuation in the exchange rate that
is not included in the Fixed Budget Price, and DSM will issue a debit or credit to
Martek for such amount (the “Quarterly Currency Fluctuation”)
	 
	 	 	 	To compensate the parties for additional costs incurred as a result of the above
sharing of exchange rate fluctuations, a savings account will be established as
follows:

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

7

 

	 	 	 	When the exchange rate rises above * and DSM has issued to Martek a credit for such
Quarterly Currency Fluctuation, the parties will maintain an accurate record-keeping
of such amount (the “Currency Savings Account”) for the future benefit of DSM should
the exchange rate subsequently fall below *. When the exchange rate falls below * and
there is a balance in the Currency Savings Account for the benefit of DSM, Martek
will continue to pay * until the balance of the Currency Savings Account for the
future benefit of DSM is reduced to zero. When the exchange rate falls below * and
there is no accumulated balance in the Currency Savings Account for the benefit of
DSM, and DSM has issued a debit to Martek for such Quarterly Currency Fluctuation,
the parties will maintain an accurate record-keeping of such amount in the Currency
Savings Account for the future benefit of Martek should the exchange rate
subsequently rise above *. When the exchange rate subsequently rises above *, Martek
will continue to pay * until the balance of the Currency Savings Account for the
future benefit of Martek is reduced to zero.
	 
	 	(viii)	 	If any changes to requirements in the process or Specifications that are requested
by Martek and agreed to by DSM lead to higher DSM Costs, these Costs shall be dealt
with in accordance with Section 4.3 of this Agreement.
	 
	 	(ix)	 	Notwithstanding any volume limits specified above, Martek shall be
permitted to purchase in excess of * Units of ARA in the Interim Period at the DSM
Variable Cost per Unit of ARA for the Current Year, plus * of the DSM Mark Up per
Unit of ARA for the Current Year. In addition, DSM shall be entitled to charge
Martek for reasonable additional (i.e., not previously reimbursed) DSM Fixed Costs
per Unit of ARA actually incurred by DSM due to such excess production, as shall be
notified to Martek within 60 days of Martek’s request for any such additional Units
of ARA. In such event, DSM shall provide details to Martek of all DSM Fixed Costs
for the relevant year and Martek shall be entitled to have such DSM Fixed Costs
confirmed by an independent public accounting firm designated by Martek and
reasonably acceptable to DSM upon Martek’s request.
	 
	 	(x)	 	The DSM Fixed Cost per Unit of ARA calculated as provided above in this
Section 6.1(n) shall be adjusted for inflationary increases in the PPI following each
calendar year, beginning January 1, 2008, as follows, if applicable:

	 	     (a)	 	If the cumulative percentage increase in the PPI
“all other miscellaneous food manufacturing” (Series ID PCU311999311999)
from January 1, 2004 to the beginning of the Current Year exceeds *, and
	 
	 	     (b)	 	If the actual DSM Fixed Cost per Unit of ARA for
the Current Year less the depreciation component for such Fixed Costs per
Unit of ARA, exceeds that otherwise calculated as provided in this
Section 6.1(n) for the Current Year less the depreciation component for
such Fixed Costs per Unit of ARA as a result of inflationary cost
increases, as confirmed by an audit of such actual costs by an
independent public accounting firm designated by Martek and reasonably
acceptable to DSM, and

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

8

 

	 	(c)	 	If Martek’s average price for ARA Products to its
customers has increased during the previous calendar year and/or if the
DSM Variable Cost per Unit of ARA for the Current Year calculated as
provided in this Section 6.1(n) has decreased from the previous year,
except for any decrease arising pursuant to Section 6.1(c) using the
methodology outlined in Schedule 6.1(n) attached hereto of this
Agreement, then

	 	 	 	Martek will pay any additional DSM Fixed Cost per Unit of ARA for the Current Year in
an amount equal to the lesser of (i) the additional Fixed Costs per Unit of ARA
substantiated by audit in Section 6.1(n)(x)(b) above, (ii) * of the cumulative
percentage increase in the PPI from January 1, 2004 to the beginning of the Current
Year as specified in Section 6.1(n)(x)(a) above multiplied by the DSM Fixed Cost per
Unit of ARA for the Current Year as otherwise calculated pursuant to this Section
6.1(n) less the depreciation component for such Fixed Costs per Unit of ARA, or (iii)
the percentage increase of Martek’s average price for ARA Products to its customers
in the previous calendar year multiplied by the DSM Fixed Cost per Unit of ARA for
the Current Year as otherwise calculated pursuant to this Section 6.1(n) less the
depreciation component for such Fixed Costs per Unit of ARA plus * of any decrease in
the DSM Variable Cost per Unit of ARA in the Current Year versus the previous
calendar year, except for any adjustment arising pursuant to Section 6.1(c) using the
methodology outlined in Schedule 6.1(n) attached hereto of this Agreement. Any
corresponding payment reconciliation shall be made in the first quarter of the
Succeeding Year.
	 
	 	(xi)	 	For purposes hereof, statements that Martek may or shall purchase a specified
quantity of Units of ARA for a specified calendar year shall mean that Martek may or
shall place a firm order for such Units of ARA during the course of such calendar year.

(o) The parties agree that for post 2010 production (and for post 2009 production if the 2010
Minimum Threshold is not met):

(i) Martek and DSM will use good faith efforts to negotiate the post 2010 (post 2009 if
the 2010 Minimum Threshold is not met) Fixed Cost infrastructure and allocation of
manufacturing based on Martek’s and DSM’s reasonable assessment of market demand and the
requirements of the provisions of this Agreement by June 30, 2009. If the parties do
not reach agreement by such date, either party may elect to initiate the arbitration
provisions of Section 10.5 of the Agreement to resolve any remaining differences.

(ii) The DSM Mark Up per Unit of ARA and DSM Variable Cost per Unit of ARA will be based
on the 2010 DSM Variable Cost per Unit of ARA calculated as provided above (or the 2009
DSM Variable Cost per Unit of ARA if the 2010 Minimum Threshold is not met).

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

9

 

     (p) All ARA prices determined as set forth above shall be paid only for Units of ARA actually
recovered by Martek in the post Extraction Crude Oil, and any corresponding payment reconciliations
shall be made in the subsequent quarter. In addition, any reconciliations needed to correct any
inflation adjustments made pursuant to Section 6.1(d)(i) once actual PPI data becomes available
shall be made annually as needed.

     (q) The Fixed Budget Price per Unit of ARA shall be adjusted downward to reflect the spread of
DSM Fixed Costs over any production of Units of ARA by DSM in the Current Year for sale within the
DSM ARA Field of Use or for sale within any additional licensed area granted to DSM pursuant to
Section 7.4(f) of the Agreement, and any corresponding payment reconciliations shall be made in the
first quarter of the Succeeding Year.

     (r) The parties agree that in the event DSM allows Martek to sell ARA Products in excess of
those volumes permitted under Sections 3.1 and 3.3 of the Agreement, Martek will pay to DSM the
then applicable DSM Mark Up per Unit of ARA for any such excess. Notwithstanding the above, for
any volumes Martek is allowed to sell above * Units of ARA which become permitted under Section 3.3
of the Agreement due to a Shortfall following a reduction in Practical Capacity that was requested
by Martek in writing after the Effective Date of the Second Amendment, agreed to by DSM in writing
and actually implemented, the exact terms and conditions regarding payment of the then applicable
DSM Mark Up per Unit of ARA for any such excess will be agreed upon by the parties at such time.

     (s) Notwithstanding Sections 6.14 and 6.16, the parties agree that there shall be transparency
on all DSM Costs related to the production of ARA for all years of this Agreement, and that each
party shall have audit and information rights as provided below with respect thereto. Martek shall
have the right to audit DSM’s calendar year books and records for purposes of confirming any and
all DSM Costs, other than Fixed Costs, related to the production of ARA for Martek and establishing
relevant Variable Costs and DSM Mark Up and, for years after 2010 (2009 if the 2010 Minimum
Threshold is not met), Fixed Costs. Martek will also have the right to audit DSM’s Fixed Costs
pursuant to Section 6.1(n)(ix) and 6.1(n)(x) of this Agreement. DSM shall have the right to audit
Martek’s calendar year books and records for purposes of establishing Extraction and RBD yields as
well as Martek’s sales of internally produced ARA Products pursuant to Section 3.1 of the
Agreement. As an additional means to achieve the above mentioned transparency, based on the
information requirements of both parties, the Committee will define a clear set of key performance
metrics that will be measured and reported regularly to ensure an adequate information flow between
the parties. Such set of metrics may be amended from time to time to reflect changes in the
information requirements of the parties, provided that these information requirements shall at all
times include at least data on fermentation productivities, Variable Costs per Unit of ARA, actual
rates and consumptions for Variable Cost components, downstream recoveries and production of Units
of ARA by DSM for sale within its ARA Fields of Use or for sale under any licenses granted to DSM
pursuant to Section 7.4(f) of the Agreement, which will be shared between the parties on a
quarterly basis.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

10

 

     (t) On or before December 31st of each year of this Agreement following the
Effective Date of the Second Amendment, DSM will provide to Martek an updated detailed depreciation
schedule. Such schedule shall include the depreciation method, depreciation period, and annual
depreciation expense forecasted through the end of the term of the Agreement, and shall separately
identify dedicated assets, meaning those assets used solely by DSM for the production of ARA, and
shared assets, meaning those assets used by DSM for the production of both ARA and other products.

     (u) DSM shall use commercially reasonable efforts to minimize Variable Costs, including
without limitation any costs subject to rate adjustments pursuant to Section 6.1(c) using the
methodology outlined in Schedule 6.1(n) attached hereto. DSM and Martek shall at all times use
commercially reasonable efforts to cooperate and agree upon methods to reduce Variable Costs as
quickly as possible, and use commercially reasonable efforts to cooperate and agree upon methods to
reduce Fixed Cost elements of the Fixed Budget Price per Unit of ARA in order to allow DSM to adapt
to lower Fixed Cost contributions (e.g., to eliminate work that is not adding real value, such as
undue analytics or reporting). Under no circumstances, will DSM reduce or eliminate its level of
reporting to Martek without prior written agreement of the parties.

     (v) All major production process changes relating to any cost reduction efforts shall be
approved by the Committee in accordance with Section 4.6 of the Agreement. In qualifying any
process change, Martek will use new process qualification guidelines for ARA similar to those used
for the internal production of DHA.

4. Amendments to Section 6.2 of the Agreement. Sections 6.2(a) and 6.2(b) of the Agreement
are hereby deleted in their entirety and replaced with the following:

     (a) Reserved.

     (b) Reserved.

5. Amendment to Section 6.9 of the Agreement. Section 6.9 of the Agreement is hereby
deleted in its entirety and replaced with the following:

     With respect to any ARA Product sold by DSM or any DSM Affiliate to a third party that
is not an Affiliate of either DSM or Martek in the DSM ARA Field of Use after the Effective
Date of the Second Amendment, DSM will pay Martek a royalty of * of the Fixed Budget Price
per Unit of ARA for such calendar year for each Unit of ARA sold by DSM in the DSM ARA Field
of Use (the “DSM ARA Field of Use Royalty”); provided, however, that the DSM ARA Field of
Use Royalty shall not exceed * of DSM’s Gross Profit on such sales. Notwithstanding the
foregoing, DSM shall pay Martek any DSM ARA Field of Use Royalties quarterly, within
forty-five (45) days following the end of the quarter. DSM shall not pay a royalty to
Martek for sales of ARA Products to ABN. In such cases where DSM reduces the price of the
products referred to in this Section 6.9 as an incentive for a DSM customer to purchase
other DSM products, DSM’s Gross Profit, for purposes of determining any cap on the DSM ARA
Field of Use Royalty, shall be based on the non-reduced price.

6.  Amendment to Section 6.12 of the Agreement. Section 6.12(a) of the Agreement is
hereby amended to include the following sentence at the end of such section:

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

11

 

     If the average Gross Profit per Unit of ARA in US Dollars received by Martek and its
Affiliates on sales of a Unit of ARA recovers to at least the level of the DSM Mark Up per
Unit of ARA in any subsequent calendar quarter, Martek shall give DSM prompt written notice
thereof, whereupon the parties agree that the full DSM Mark Up per Unit of ARA shall be
restored as of the day of such notification.

7. Amendment to Section 6.14 of the Agreement. Section 6.14(b) of the Agreement is hereby
amended

     ; provided that during the Interim Period DSM will only provide Martek an accounting of the
Variable Costs per Unit of ARA for such calendar quarter, unless Section 6.1(n)(ix) and/or Section
6.1(n)(x) are applicable.

8. Amendment to Section 6.15 of the Agreement. Section 6.15 of the Agreement is hereby
deleted in its entirety and replaced with the following:

     6.15. Adjustment For Changes in RBD Yields. The average RBD yield based on the
first six months of calendar year 2007, which shall be established by written agreement of
the Committee, will be used to calculate the Units of ARA as Finished Oil expected to be
obtained from each Unit of ARA as Crude Oil. For example, if the average RBD yield is *,
then one (1) kilogram of Crude Oil containing 400 mg/g ARA is expected to yield * grams of
Finished Oil containing 400 mg/g ARA. The expected quantity will be compared to the Units
of ARA as Finished Oil actually obtained on a quarterly basis. Any difference will be
converted into Units of ARA as Crude Oil by dividing any such difference in Finished Oil
quantities by the average RBD yield and DSM will invoice Martek with respect to any increase
in Crude Oil quantity or will credit Martek with respect to any decrease in Crude Oil
quantity as follows: for DSM Variable Cost per Unit of ARA, * and for DSM Mark Up per Unit
of ARA, *. Any corresponding payment reconciliations shall be made on a quarterly basis.

9. Amendments to Sections 6.16 of the Agreement.

	A.	 	Section 6.16(a) of the Agreement is hereby amended by inserting “yields,” in the first
sentence, between “accurate records of its” and
“production costs”.

	B.	 	The following text is hereby inserted as a new
Section 6.16(c) of the Agreement:

(c) Any aggregate overbilling of DSM Fixed Costs in the Interim Period discovered in the
course of any audit pursuant to this Section 6.16 which does not exceed the relevant amounts
calculated as provided in Section 6.1(n) shall not be reimbursed to Martek as provided in
Section 6.16(b) above.

10. Amendments to Section 7.1 of the Agreement.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

12

 

A. Section 7.1(a) of the Agreement is hereby amended to include the following sentence at the end
of such section:

     During the term of this Agreement, DSM shall be responsible for R&D on stirred
fermentation and related strain improvement and recovery up until the dried Biomass stage
and Martek shall be responsible for R&D on bubble-tank fermentation and related strain
improvement and recovery up until the dried Biomass stage, as well as R&D on extraction of
the Crude Oil from the Biomass and RBD of the Crude Oil. Notwithstanding the foregoing, DSM
hereby acknowledges Martek’s right to perform R&D on the manufacturing of ARA in bubble-tank
fermentors for the purpose of exercising its production rights under Sections 3.1 and 3.3 of
the Agreement.

B. Sections 7.1(c)(i) through (iv) of the Agreement are hereby deleted in their entirety and
replaced with the following:

(i) Unless the parties mutually decide to discontinue the R&D collaboration, or it
terminates as provided in Section 7.1(a) above, in the fourth quarter of each year of this
Agreement, the parties shall exchange their respective annual R&D Plans in the R&D
Committee, for the purpose of sharing information and ideas and to invite the other party to
make suggestions for improvements to such R&D Plans, relating to their areas of R&D
responsibility as provided above, provided that in no event shall incremental process
improvements or manufacturing improvements be included in any such annual R&D Plan. Both
parties shall provide quarterly reports on their R&D efforts to the R&D Committee; provided
that either Martek or DSM may perform and finance their own R&D relating to uses of ARA in
their respective ARA Fields of Use as well as ARA Applications for Adults licensed to DSM
pursuant to Section 7.4(f) without the requirement to notify the other party or make reports
as provided above.

(ii) The parties may, in addition, submit research projects to the R&D Committee for the
recommendation of possible joint funding, at each party’s sole discretion, with any such
project which is approved for joint funding (a “Jointly Funded ARA Research Project”) to be
described in a detailed project plan (including project management details). Such research
project proposals may include topics which are not related directly to the respective areas
of responsibility as described in Section 7.1(a) or to the ARA Fields of Use (or other
licensed areas). Upon unanimous R&D Committee recommendation for joint funding, each
proposed research project will be submitted to the Committee, in line with the yearly
budgeting process, for final written approval.

C. Section 7.1(d) of the Agreement is hereby deleted in its entirety and replaced with the
following:

     (d) R&D Costs. Each party shall be responsible for its own R&D costs. The parties acknowledge
that DSM shall not include any costs of DSM R&D in the DSM Cost per Unit of ARA billed to Martek
unless expressly agreed by Martek in advance in writing and Martek shall not include any costs of
Martek R&D in the Martek Cost per Unit of ARA billed to DSM unless expressly agreed by DSM in
advance in writing. The costs involved in an approved Jointly Funded ARA Research Project shall be
shared equally, unless otherwise agreed to by the Committee in writing and any corresponding
payment reconciliations shall be made on a yearly basis.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

13

 

D. Section 7.1(e) of the Agreement is hereby deleted in its entirety and replaced with the
following:

     (e) Outsourced R&D Activities. Any work to be performed at Martek for R&D activities for
which DSM is responsible as provided above will be based only on outsourcing by DSM and performed
only at DSM’s initiative. Any work to be performed at DSM for R&D activities for which
Martek is responsible as provided above will be based only on outsourcing by Martek and performed
only at Martek’s initiative.

E. Section 7.1(f) of the Agreement is hereby deleted in its entirety and replaced with the
following:

     (f) Reserved.

F. Section 7.1(g) of the Agreement is hereby amended by deleting the word “joint” in the third line
and replacing it with the words “Jointly Funded”.

11. Amendments to Section 7.2 of the Agreement. Section 7.2(c) of the Agreement is hereby
amended as follows:

A. The words “an approved Project Plan” in the fourth line thereof shall be replaced with the words
“a Jointly Funded ARA Research Project”.

B. The reference to Section 7.3(a)(iii) in the third line of subpart (i) shall be changed to refer
to Section 7.3(a)(ii).

C. The words “approved Project Plan” in the penultimate sentence of subpart (iii) shall be replaced
with the words “Jointly Funded ARA Research Project”.

D. The beginning of Section 7.2(c) of the Agreement is hereby amended and restated as follows:

“Subject to the licenses granted in Sections 7.4(a), 7.4(b) and 7.4(f) hereof, intellectual
property rights in any inventions,...”

12. Amendments to Section 7.3 of the Agreement.

A. Section 7.3(a)(i) of the Agreement is hereby amended by replacing the reference to Section
7.1(a)(iii) in such section with a reference to Section 7.1(a)(ii).

B. The end of the last sentence of Section 7.3(a)(iii) is hereby amended and restated as follows:

“and such party hereby grants the Declining Party a license to use such patents in accordance with
the parties’ respective rights in Sections 7.4(a), 7.4(b) and 7.4(f).”

13. Amendments to Section 7.4 of the Agreement.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

14

 

A. The beginning of Section 7.4(c) of the Agreement is hereby amended and restated as follows:

“The licensed rights in Sections 7.4(a) and 7.4(b) above and Section 7.4(f) below may be
sublicensed by a party to its Affiliates....”

B. Subsection (ii) of the proviso of Section 7.4(c) is hereby amended and restated as follows:

“(ii) in the event of a Martek Shortfall, DSM shall be entitled to sublicense the licensed rights
granted in Section 7.4(a) and Section 7.4(f) to one or more Third Party Toll Manufacturers in
accordance with the requirements of Section 3.4(c) for the sole purpose of responding, and only for
so long as necessary to respond, to such Martek Shortfall.”

C. The end of the second sentence of Section 7.4(d) is hereby amended and restated as follows:

“ ...a license to use such Improvements, in accordance with the parties’ respective rights in
Sections 7.4(a), 7.4(b) and 7.4(f) with respect to the underlying technology or invention.”

D. Section 7.4(d) of the Agreement is amended by (1) replacing the words “an approved Project Plan”
in the fourth line with the words “a Jointly Funded ARA Research Project”, and (2) replacing the
words “Proponent Party referred to in Section 7.3(a)(iii)” in the seventh line with “Patent
Proponent Party referred to in Section 7.3(a)(ii)”.

E. The following section is hereby inserted as new Section 7.4(f) of the Agreement:

     (f) Additional DSM License. In addition to the licenses granted to DSM in Section 7.4(a), and
subject to the provisions of this Section 7.4(f) and Section 9.3, Martek hereby grants to DSM an
exclusive (including as to Martek), worldwide, non-assignable, sublicensable (to the extent
permitted in Section 7.4(c)) license under the Martek Proprietary Technology, the Martek R&D
Patents, the Excluded Subject Matter, and any Martek Improvements to make (only with respect to
Biomass or as otherwise permitted in Section 3.4(a) or (b)), use, import, sell and offer for sale
ARA Products and ARA Products combined with other products for the following ARA Applications for
Adults:

	 	(i)	 	*
	 
	 	(ii)	 	*
	 
	 	(iii)	 	Other areas agreed to in writing between the parties. DSM shall
request any such additional areas in writing and Martek shall notify DSM in
writing within 3 months from delivery of DSM’s written request whether it agrees
to grant any such additional rights for ARA Applications for Adults to DSM. In the
event Martek fails to deliver written notice to DSM within such 3-month period
denying DSM the rights requested, Martek shall be deemed conclusively to have
approved such request. In case Martek denies in writing any such additional rights
for ARA Applications for Adults to DSM, Martek will provide reasons for such
denial in writing to DSM.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

15

 

The foregoing ARA Applications for Adults to which DSM is granted a license hereunder are
hereinafter referred to as the “DSM Adult ARA Applications,” each customer purchasing an ARA
Product (alone or in combination with another product) from DSM or one of its Affiliates for a DSM
Adult ARA Application is hereinafter referred to as a “DSM Adult Application Customer” and any ARA
Product sold by DSM or one of its Affiliates for use in a DSM Adult ARA Application is hereinafter
referred to as a “DSM Adult ARA Product.”

It is understood and agreed that (i) DSM shall not be required to deliver the notice specified in
Section 5.2 of this Agreement to any DSM Adult Application Customer that purchases only a DSM Adult
ARA Product and (ii) no DSM Adult Application Customer shall be deemed to be an Out of Scope
Customer for purposes of Section 5.2 solely because it purchases a DSM Adult ARA Product. In lieu
of the requirements set forth in Section 5.2, DSM shall notify each DSM Adult Application Customer
prior to any sale to such a customer of a DSM Adult ARA Product that (a) the DSM Adult ARA Products
sold to such DSM Adult Application Customer are subject to intellectual property licenses that
prohibit such customer from selling or using such DSM Adult ARA Products for any application other
than a DSM Adult ARA Application and (b) such DSM Adult Application Customer will not be able to
purchase DSM Adult ARA Products from DSM or any of its Affiliates if any sale or use by such DSM
Adult Application Customer of such DSM Adult ARA Products is outside the DSM Adult ARA Applications
and (c) such DSM Adult Application Customer must label all products which incorporate such DSM
Adult ARA Product as being for use only within the relevant DSM Adult ARA Application unless such
DSM Adult ARA Application is a * in which case this clause (c) shall not apply to consumer products
within such *.

For each such sale, DSM shall provide a detailed report to Martek within forty-five (45) days
following the end of each calendar quarter which shall at least include the product name, the DSM
Adult Application Customer’s name, the intended application and the total Units of ARA sold. The
parties shall cooperate in good faith to identify any DSM Adult Application Customer that uses or
sells DSM Adult ARA Products purchased from DSM in an application other than a DSM Adult ARA
Application and DSM shall promptly stop sale of DSM Adult ARA Products to any DSM Adult Application
Customer who violates the restrictions specified above.

DSM will pay Martek a royalty equal to * of the Fixed Budget Price per Unit of ARA in effect for
the calendar year in which such sale takes place for each Unit of ARA contained in any DSM Adult
ARA Product sold by DSM or its Affiliates. Notwithstanding the foregoing, for sales into the *
market of a DSM Adult ARA Product that is a DHA/ARA combination product, DSM agrees that it will
either (i) utilize DHA supplied by Martek for such DSM Adult ARA Product, subject to the payment of
the * royalty specified above, or (ii) not utilize DHA supplied by Martek for such DSM Adult ARA
Product and instead pay Martek a royalty equal to * of the Fixed Budget Price per Unit of ARA for
such calendar year for each Unit of ARA contained in such DSM Adult ARA Product. DSM shall pay
Martek any royalties due hereunder on a quarterly basis, within forty-five (45) days following the
end of each quarter. Martek shall have the right to audit DSM’s calendar year books and records in
accordance with Section 6.16 of this Agreement for purposes of confirming any and all sales of ARA
and DHA by DSM pursuant to the licensed rights granted in this Section 7.4(f) and any discrepancies
identified in the course of any such audit shall be remedied as provided in Section 6.16(b)
thereof.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

16

 

14. Ammendments to Section 3.4 of the Agreement.

A. The second sentence of Section 3.4(a) is hereby deleted in its entirety and replaced with the
following:

“Except as expressly set forth below, DSM agrees that in any calendar year neither it nor its
Affiliates shall sell, directly or indirectly, a combined aggregate quantity of ARA Products into
any DSM ARA Field of Use and/or any ARA Application for Adults licensed to DSM pursuant to Section
7.4(f) which contains more than the greater of (i) * Units of ARA or (ii) the Crude Oil
requirements for the DSM ARA Fields of Use (the “DSM Extraction Allocation”) as adjusted pursuant
to this Section 3.4(a), which are not derived from ARA Products that Martek performed Extraction
services on pursuant to this Agreement.”

B. The second sentence of Section 3.4(b) is hereby deleted in its entirety and replaced with the
following:

“Except as expressly set forth below, DSM agrees that in any calendar year neither it nor its
Affiliates shall sell, directly or indirectly, a combined aggregate quantity of ARA Products into
any DSM ARA Field of Use and/or any ARA Application for Adults licensed to DSM pursuant to Section
7.4(f) which contains more than the greater of (i) * Units of ARA or (ii) the Finished Oil
requirements for the DSM ARA Fields of Use (the “DSM RBD Services Allocation”) as adjusted pursuant
to this Section 3.4(b), which are not derived from ARA Products that Martek performed RBD services
on pursuant to this Agreement.”

15. Miscellaneous.

     (a) Except as expressly modified herein, all terms and conditions set forth in the Agreement
shall remain in full force and effect and the Agreement as so modified is hereby ratified and
confirmed in all respects.

     (b) The provisions of Section 10.5 (Disputes; Arbitration) of the Agreement are hereby
incorporated by reference into this Second Amendment, with the same force and effect as if set
forth in full herein.

     (c) This Second Amendment shall be governed by and construed in accordance with the internal
laws of the State of New York applicable to contracts to be performed fully within the State of New
York. The parties hereby expressly exclude the applicability of the Convention on Contracts for the
International Sale of Goods and that body of law known as conflicts of laws.

     (d) Neither this Second Amendment nor any terms hereof may be amended, waived, discharged or
terminated unless such amendment, waiver, discharge or termination is in writing signed by all
parties or, in the case of a waiver, by the party waiving compliance.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

17

 

     (e) The parties acknowledge that this Second Amendment sets forth the complete, exclusive and
integrated understanding of the parties and supersedes all proposals or prior agreements, oral or
written, and all other prior communications between the parties relating to the subject matter of
this Second Amendment and, except as provided in Section 15(d), no other documents shall act to
modify, amend or add to this Second Amendment.

     (f) This Second Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same document.

16. Integration.

     The parties will, upon signing of this Second Amendment prepare an amended and restated
version of the Agreement that integrates all changes made pursuant to the First Amendment and this
Second Amendment.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

18

 

     IN WITNESS WHEREOF, each of the parties has caused this Second Amendment to be duly executed
and delivered as of the day and year first above written.

	 	 	 	 	 
	MARTEK BIOSCIENCES 

CORPORATION

	 	 	DSM FOOD SPECIALTIES B.V.	 
	
/s/
Steve Dubin
	 	 	/s/ Xander Wessels	 
	 

By:     Steve Dubin

	 	 	 

By: Xander Wessels
	 
	Title: Chief Executive Officer

	 	 	Title: Managing Director	 
	 
	 	 	 	 
	 
	 	 	/s/ Geert Jan Nieboer	 
	 

	 	 	 	 
	 

	 	 	By: Geert Jan Nieboer	 
	 

	 	 	Title: Managing Director	 

Schedules:

Schedule 6.1(n)            Variable Cost Calculation

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

19

 

SCHEDULE 6.1(n)

VARIABLE COSTS CALCULATION

     1. Calculation of Variable Costs in 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capua	 	Units	 	Rate	 	Usage/Kg	 	Variable Cost/Kg
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	*	 	 	 	*	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Belvidere	 	Units	 	Rate	 	Usage/Kg	 	Variable Cost/Kg
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Volume (MT)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Capua	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	Belvidere	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Average Variable Cost/Kg	 	 	*	 

			
	      2.	 	Calculation of Variable Costs and DSM Mark Up in 2008, 2009 and 2010 (if the 2010
Minimum Threshold is met).

          (a) Confirmation that Variable Costs have not exceeded $* excluding rate adjustments. For
each Variable Cost line item for the Belvidere and Capua production facilities, the 2007 rate will
be multiplied by the new usage/ Kg as agreed to by the Committee to be used for such subsequent
year. The resulting cost/ Kg for all line items will be summed for each facility. For Capua, this
sum will be converted into USD at a rate of $*. A weighted average Variable Cost will be
calculated based on the anticipated production volume for each facility as specified in the DSM
Three Year Rolling Production Forecast due on December 1st of the current year. If the
result of this calculation is less than or equal to $* then the Variable Cost will be calculated in
accordance with section (b) below and the DSM Mark up will be calculated in accordance with section
(c) below. However, if the result is greater than

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

20

 

$* then the Variable Cost will be calculated in accordance with section (c) below and the DSM
Mark Up will be $* for such Subsequent Year.

     (b) Calculation of Variable Cost for Each Subsequent Year. For each Variable Cost line item
for the Belvidere and Capua production facilities, the new rates will be multiplied by the new
usage/ Kg, both as agreed to by the Committee to be used for such Subsequent Year. The resulting
cost/ Kg for all line items will then be summed for each facility. For Capua, this sum will be
converted into USD at a rate of $*. A weighted average Variable Cost will be calculated based on
the anticipated production volume for each facility as specified in the DSM Three Year Rolling
Production Forecast due on December 1st of the current year. If the result of the
calculation made in section (a) above is less than or equal to $* then this weighted average
Variable Cost as calculated in this section (b) shall be the new Variable Cost for such Subsequent
Year. If the result of the calculation made in section (a) above is greater than $* then the new
Variable Cost shall be as calculated according to section (c) below.

     (c) Calculation of the DSM Mark Up for Each Subsequent Year. For each Variable Cost line item
for the Belvidere and Capua production facilities, the new rates as agreed to by the Committee to
be used for such Subsequent Year will be multiplied by the 2007 usage/ Kg. The resulting cost/ Kg
for all line items will then be summed for each facility. For Capua, this sum will be converted
into USD at a rate of $*. A weighted average Variable Cost will be calculated based on the
anticipated production volume for each facility as specified in the DSM Three Year Rolling
Production Forecast due on December 1st of the current year. If the result of the
calculation made in section (a) above is greater than $* then the weighted average Variable Cost as
calculated in this section (c) shall be the new Variable Cost for such Subsequent Year and the DSM
Mark Up shall be $*. If the result of the calculation made in section (a) above is less than or
equal to $*, then the weighted average Variable Cost calculated in section (b) above will be
subtracted from the weighted average Variable Cost as calculated in this section (c) and half of
any difference shall be added to the DSM Mark Up of $* for such Subsequent Year.

Note: All figures listed in this Schedule 6.1(n) are shown on a 40% ARA basis.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

21

 

Example:

*

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

22

 

     3. List of items included in the “other” Variable Cost
lines:

Capua

*

Belvidere

*

Note: This list may be amended from time to time by agreement of the Committee.

* The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission.

23

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