Document:

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                                                                   Exhibit 10.14

                              TERMINATION AGREEMENT

         THIS TERMINATION AGREEMENT (the "Termination Agreement") is entered
into as of this 3rd day of February 2003, but effective as of the Effective Date
as set forth below, by and between INSMED PHARMACEUTICALS, INC., a corporation
organized under the laws of the Commonwealth of Virginia and having a business
address at 4851 Lake Brook Drive, Glen Allen, Virginia 23060 ("Insmed") and
TAISHO PHARMACEUTICAL CO., LTD., a corporation organized under the laws of Japan
and having a business address at 24-1, Takata 3-chome, Toshima-ku, Tokyo,
170-8633 ("Taisho").

         WHEREAS, effective July 10, 2000 Insmed and Taisho entered into a
License and Development Agreement ("License Agreement") for the development of
D-chiro-inositol; and

         WHEREAS, by Amendment dated September 5, 2002 ("the Amendment") Insmed
and Taisho agreed to amend the License Agreement to release Taisho from any
obligations relating to the use of D-chiro-inositol for the polycystic ovary
syndrome indication and agreed on payments due to Insmed; and

         WHEREAS, under the License Agreement as amended by the Amendment Taisho
had the right to terminate the License Agreement upon six months written notice
to Insmed or earlier with the approval of Insmed; and

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         WHEREAS, by letter dated September 30, 2002 Taisho notified Insmed of
its intent to terminate the License Agreement in accordance with the terms of
the Amendment; and

         WHEREAS Insmed has agreed to an earlier termination subject to the
fulfillment by Taisho of certain obligations which are expressly provided in
this Termination Agreement and are regarded as all and exclusive obligation of
Taisho;

         NOW, THEREFORE, in consideration of the foregoing recitals and the
covenants and undertakings set forth below and all other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties, Insmed and Taisho hereby agree as follows:

         1.    Effective upon the date of Insmed's receipt of the payment of
$52,500.00 from Taisho ("the Effective Date"), which represents outstanding
expenses incurred by Insmed for the prosecution and maintenance of relevant
patents in the Territory and was agreed to be paid pursuant to the terms of the
Amendment, the License Agreement will be terminated. The Effective Date shall be
notified in writing to Taisho upon receipt by Insmed of such payment for the
record.

         2.    Effective as of the Effective Date, Taisho releases, assigns and
transfers to Insmed all rights to the Technical Information, New Intellectual
Property, Licensed Patents, and other intellectual property which are owned by
Insmed and granted by Insmed to Taisho under the License Agreement. Taisho
confirms that there are no Technical Information, New Intellectual Property,
Licensed Patents, and other intellectual property which are obtained from
research

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and/or development under the License Agreement and owned or controlled by Taisho
except for data and materials which are listed in the affixed Attachment which
was prepared through agreement of the parties and which shall be delivered to
Insmed after the execution of this Termination Agreement in order for Insmed to
use them without any payment to Taisho in the world.

         3.    The provisions of Articles 5 and 10 of the License Agreement
survive the termination of the License Agreement

         4.    Effective as of the Effective Date, each party releases the other
from any and all obligations, monetary or otherwise, under the License
Agreement, except for the obligations and agreements which are expressly
provided in this Termination Agreement.

         IN WITNESS WHEREOF, the parties have caused this Termination Agreement
to be executed by their duly authorized officers as of this 3rd day of February
2003 but effective as of the Effective Date as set forth in this Agreement.

                                         INSMED PHARMACEUTICALS, INC.

                                         By: ___________________________________
                                               Geoffrey Allan, President and CEO
                                               Date: ________________

                                         TAISHO PHARMACEUTICAL CO., LTD.

                                         By: ___________________________________
                                               Akira Uehara, President
                                               Date: ___________________________

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                                                                   Exhibit 10.15

THIS AGREEMENT is made this 25th day of July 2002 between:

(1)  AVECIA LIMITED, acting through its Avecia Biotechnology business of Hexagon
     House, Blackley, Manchester, M9 8ZS, England ("Avecia"); and

(2)  INSMED INCORPORATED of 4851, Lake Brook Drive, Glen Allen, VA 23060, USA
     ("Insmed").

WHEREAS

A    Avecia has experience and knowledge with regard to process development and
     manufacture of recombinant proteins.

B    Insmed is carrying out research and development in relation to the Product
     (as defined below) with a view to conducting clinical trials and commercial
     launch of a new drug.

C    Insmed wishes Avecia to carry out a programme for the further development,
     scale up and manufacture of the End Product to support clinical trials and
     future commercial launch of new drugs.

D    The Feasibility Study (as defined below) was commenced under the Letter of
     Intent and it is intended that the Feasibility Study, the Development
     Programme and the GMP Stage (all as defined below) shall be carried out and
     completed under the terms of this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.   Definitions:

     Affiliate                      any corporation, association or other
                                    business entity which directly or indirectly
                                    controls, is controlled by or is under
                                    common control with Avecia or Insmed and
                                    "control" shall mean the legal power to
                                    direct or cause the direction of the general
                                    management and policies of such entity
                                    whether through the ownership of at least
                                    50% of voting securities or capital stock of
                                    such business entity or any other comparable
                                    equity or ownership interest with respect to
                                    a business entity other than a corporation.

     Avecia  Default                failure by Avecia to progress the
                                    Programme (including without limitation
                                    failure to use GMP) and any other failure to
                                    discharge its obligations hereunder, or
                                    negligence or wilful malfeasance by Avecia
                                    in carrying out the Programme, except that
                                    discovery of a factor which affects the
                                    Process or production of the End Product
                                    which was not known and could not reasonably
                                    have been known at the commencement of the
                                    Programme shall not be considered to be an
                                    Avecia Default.

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     Background                     any Intellectual Property owned by or in the
     Intellectual                   possession  of a party (and to
     Property                       which that party has the necessary
                                    rights) at the Commencement Date of this
                                    Agreement or Intellectual Property developed
                                    independently of the Programme by any
                                    employee of that party without reference to
                                    any of the Confidential Information
                                    disclosed by the other party.

     Cancellation Fee               a sum calculated in accordance with
                                    Schedule 7, payable on termination in
                                    respect of cancellation of the GMP Stage.

     Cell Banks                     the Master Cell Bank and the Working
                                    Cell Bank together.

     Commencement                   12th November 2001.
     Date

     Completion                     completion of the Programme as defined in
                                    Clause 2.2.

     Confidential                   any technical and commercial information
     Information                    relating Information to the Programme and
                                    any other information of a confidential
                                    nature disclosed (whether disclosed in
                                    writing, verbally, by way of sample or by
                                    any other means and whether directly or
                                    indirectly) by either party ("the Disclosing
                                    Party") to the other ("the Receiving
                                    Party"), including and without limitation
                                    any information relating to the Disclosing
                                    Party's business affairs.

     Confidentiality                the confidentiality agreement entered into
     Agreement                      between the parties dated 10th May 2001.

     Defective Product              a quantity of the End Product which
                                    does not comply with the appropriate
                                    Specification or which has not been
                                    manufactured in accordance with ISO9001 or
                                    GMP, as appropriate.

     Development                    the programme for development and scale up
     Programme                      of the  Process intended to be used
                                    during the GMP Stage as outlined in Schedule
                                    5 and as amended in accordance with the
                                    provisions of Clause 2.5.

     End Product                    SomatoKine(R), being a combination
                                    of insulin-like growth factor-I (IGF-1) and
                                    insulin-like growth factor binding protein-3
                                    (BP3) or BP3 individually, when produced to
                                    Insmed's Specification under Schedule 1 as a
                                    drug substance.

     Feasibility                    the study to ascertain the feasibility of
     Study                          developing the existing process to
                                    manufacture the End Product foruse in Phase
                                    II and Phase III clinical trials and
                                    commercial scale as outlined in Schedule 4
                                    and as amended in accordance with the
                                    provisions of Clause 2.5.

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     Force Majeure                  any cause beyond the reasonable control of
                                    the party in question which for the
                                    avoidance of doubt and without prejudice to
                                    the generality of the foregoing shall
                                    include governmental actions, war, riots,
                                    civil commotion, fire, flood, epidemic,
                                    labour disputes (excluding labour disputes
                                    involving the work force or any part thereof
                                    of the party in question), restraints or
                                    delays affecting shipping or carriers,
                                    currency restrictions and act of God.

     GMP                            current good manufacturing practice and
                                    standards as provided for (and as amended
                                    from time to time) in European Community
                                    Directive 91/356/EEC (Principles and
                                    guidelines of good manufacturing practice
                                    for medicinal products) and in the Current
                                    Good Manufacturing Practice Regulations to
                                    the US Code of Federal Regulations Title 21
                                    as referenced in Schedule 9 in relation to
                                    the production of pharmaceutical
                                    intermediates and active pharmaceutical
                                    ingredients, as interpreted by ICH
                                    Harmonised Tripartite Guideline, Good
                                    Manufacturing Practice Guide for Active
                                    Pharmaceutical Ingredients, Q7A and subject
                                    to any arrangements, additions or
                                    clarifications agreed from time to time
                                    between the parties in the QA Agreement.

     GMP Stage                      manufacture of the End Product at [REDACTED]
                                    litre scale in accordance with GMP in
                                    Avecia's Advanced Biologics Centre as
                                    outlined in Schedule 6 and as amended in
                                    accordance with the provisions of Clause
                                    2.5.

     Insmed                         Products, End Product, rhIGF-1 and rhIGFBP3
     Materials                      protein samples, cell banks and all other
                                    associated project materials.

     Intellectual                   all know-how, inventions, discoveries,
     Property                       devices, data, patents, designs, copyrights,
                                    or other industrial or intellectual property
                                    in all applications therefore.

     JPMC                           the joint programme management committee set
                                    up by Avecia and Insmed to oversee the
                                    conduct of the Programme, having the
                                    constitution referred to in Clause 2.6.

     Letter of Intent               the letter dated 12th November 2001
                                    confirming the terms on which the
                                    Feasibility Study was started by Avecia.

     Master Cell Bank               the master cell bank produced during the
                                    Development Programme, in accordance with
                                    ICH cell substrate guidelines.

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     Milestones                     the schedule of milestones intended to be
     Appendix                       achieved during the Programme and attached
                                    at Schedules 4, 5 & 6.

     New Intellectual               Intellectual Property arising during and as
     Property                       a direct result of the Programme.

     Nominated                      any manufacturer other than Avecia,
     Manufacturer                   nominated by or partnered with Insmed to
                                    carry out manufacture of the End Product.

     pPoP(TM) System                the system for expression of genes in
                                    micro-organisms claimed in patent
                                    application WO9905297 owned by AstraZeneca
                                    AB and licensed (with rights to sublicense)
                                    to Avecia under an agreement between Avecia
                                    and Zeneca Limited (assigned to AstraZeneca
                                    UK Limited) and dated 30th June 1999, and
                                    further developed by Avecia though ongoing
                                    project work.

     Process                        the process for manufacture of the End
                                    Product.

     Products                       Insmed's proprietary proteins, the
                                    derivatives thereof and the respective DNA
                                    coding sequences and constructs, including
                                    Dsb-3C protease, Dsb-3C-IGF-I,
                                    Ubiquitin-3C-IGF-I, rhIGF-I (hereafter
                                    IGF-I), rhIGFBP-3 (hereafter BP-3), and
                                    SomatoKine(R), being a combination of
                                    insulin-like growth factor-I and
                                    insulin-like growth factor binding
                                    protein-3.

     Programme                      the Feasibility Study, the Development
                                    Programme and the GMP Stage.

     Programme                      means a document in the form set out in
     Amendment Order                Schedule 3 detailing changes to the
                                    Programme or to the Specification agreed and
                                    signed by both parties.

     QA Agreement                   the document agreed by the parties setting
                                    out:

                                    (i)     the mutually agreed quality
                                            standards applicable for the
                                            manufacture of the End Product; and

                                    (ii)    the roles and responsibilities of
                                            each party's personnel in relation
                                            to quality assurance matters

                                    a copy of which is attached at Schedule 2.

     Specification                  the specification for the End Product to be
                                    manufactured during the Development
                                    Programme and GMP Stage and attached at
                                    Schedule 1, or such revised specification as
                                    may be agreed by the parties in a Programme
                                    Amendment Order and in accordance with the
                                    QA Agreement.

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     Technical Transfer             communication of Insmed's existing process
                                    for production of the Products to Avecia.

     Third Party                    any person other than the parties or their
                                    respective Affiliates.

     Working                        the working cell bank(s) produced during the
     Cell Bank(s)                   Development Programme or preparatory to
                                    clinical drug substance manufacture, in
                                    either case subject to GMP.

2.   Performance of the Programme

     2.1  QA Agreement. Avecia will carry out the work as detailed in the
          Programme under GMP and its ISO9001 compliant quality system. In order
          for Avecia to carry out the Programme, each party shall fulfil its
          responsibilities as set out in the QA Agreement.

     2.2  Programme Details. The Programme has three stages and shall be
          conducted as follows:

          (a)  Stage 1 - The Feasibility Study

               (i)  The Feasibility Study commenced on the Commencement Date.

               (ii) The Feasibility Study shall be deemed to be complete when
                    Avecia has notified Insmed that it has completed the
                    Feasibility Study and delivered to Insmed the material and
                    documentation set out in the Milestones Appendix in respect
                    of the Feasibility Study, and such performance is mutually
                    agreed by the JPMC.

          (b)  Stage 2 - The Development Programme.

               (i)  Following completion of the Feasibility Study, the parties
                    shall jointly determine whether the Feasibility Study has
                    been successful and indicates that there is scope for
                    further development of the Process.

               (ii) If the parties agree that the Feasibility Study has been
                    successful, Avecia shall commence the Development Programme,
                    including the production of the Cell Banks in accordance
                    with the requirements set out therefor in Schedule 8.

              (iii) Subject to Clause 2.2(b)(iv), the Development Programme
                    shall be complete when Avecia notifies Insmed that it has
                    completed manufacture of the Product in accordance with the
                    Specification at [REDACTED] litre scale, tested such
                    manufactured Product, and provided Insmed with (i)
                    analytical data in a form to be agreed and (ii) revised cost
                    models for manufacture of the

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                    Product at large scale, and such performance is mutually
                    agreed by the JPMC.

               (iv) The parties anticipate that further work will need to be
                    carried out during the Development Programme, the exact
                    nature of which is not certain at the date of this
                    Agreement. Such further work shall be carried out subject to
                    agreement under Clause 2.5.

          (c)  Stage 3 - GMP Stage

               (i)  Avecia shall commence the GMP Stage following completion of
                    the Development Programme.

               (ii) The GMP Stage shall be complete when Avecia notifies Insmed
                    that it has completed manufacture of the End Product in
                    accordance with the Specification in its Advanced Biologics
                    Centre at [REDACTED] litre scale, tested such manufactured
                    End Product, delivered the End Product so manufactured in
                    accordance with Clause 4 and provided Insmed with (i) a
                    certificate of analysis showing that the End Product
                    manufactured during the GMP Stage accords to the
                    Specification and (ii) a batch production record on such
                    activities, and such performance is mutually agreed by the
                    JPMC.

              (iii) The Programme shall be complete when the GMP Stage has been
                    completed, and the parties have agreed whether the Master
                    Cell Bank is to be shipped to Insmed or whether it is to be
                    stored by Avecia under Clause 4.2.

2.3  Conduct of the Programme. For the avoidance of doubt, it shall not be
     considered a breach of this Agreement by Avecia if an objective of the
     Programme is not achieved:

     (a)  so long as Avecia uses its best commercial endeavours to perform its
          obligations; or

     (b)  due to delay caused or contributed to by Insmed.

     The parties acknowledge that, having regard to the fact that the work to be
     performed hereunder is by its nature developmental, Avecia does not
     guarantee to Insmed the achievement of each individual milestone, or a
     successful outcome for the overall Programme.

2.4  Information Exchange. The parties shall conduct regular information
     exchanges in a manner to be agreed between the parties to enable ongoing
     review of the Programme and its continuation. Each party shall nominate a
     key point of contact for such information exchange. At the date of this
     Agreement, the points of contact are as follows:

     (a)  for Avecia - Dr I Hodgson, Project Manager; and

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     (b)  for Insmed - Dr. Andreas Sommer , Project Manager.

2.5  Programme Amendment Orders. The parties may agree to vary any element of
     the Programme, including the Specification or sums to be paid under Clause
     3, provided that such variation is made in writing in a Programme Amendment
     Order. The parties recognise that, in the event that Insmed requires Avecia
     to carry out additional or different development work to that specified in
     Schedules 4 & 5, the work carried out under the Programme may require
     changes which may cause a change in the payments set out in Schedules 4, 5
     or 6 appended hereto, as appropriate. The Specification shall be subject to
     review and possible revision in accordance with this Clause 2.5, in light
     of process experience or pursuant to a requirement of a regulatory
     authority.

2.6  Joint Programme Management Committee. Insmed and Avecia shall each appoint
     at least two (2) managers to the JPMC. The number of members appointed by
     each of Insmed and Avecia may be more than two, but shall always be an
     equal number appointed by each party. The committee shall regularly review
     progress towards agreed milestones and resolve any issues arising due to
     variance from agreed deliverables that cannot be resolved in the normal
     course of project team meetings. The JPMC shall make earnest, timely
     efforts to resolve issues to mutual satisfaction and agree upon such
     Programme Amendment Orders as are needed to advance the Programme.

     If the JPMC cannot reach mutually agreeable resolution on an issue(s)
     affecting critical deliverables or associated payments, the matter shall be
     referred by the JPMC to the CEO and VP of the respective parties under
     Clause 19.2 for final resolution. At the date of this Agreement, the JPMC
     members are as follows:

     (a)  for Avecia - Dr I Hodgson, Project Manager; Mr. Ryan Scanlon, Key
          Account Manager; and Mr. David Byrom, Project Manager.

     (b)  for Insmed - Robert Falconer, VP Technical Operations; Dr. Steven Ye,
          Director Biologics Programme; and Dr. Andreas Sommer, Principal
          Scientist.

2.7. Technical Assistance. During the Programme and following Completion, Avecia
     will offer reasonable assistance to Insmed in respect of Insmed's
     regulatory filing activities for the End Product and the Process both
     during and after Completion, subject to payment by Insmed of Avecia's
     reasonable expenses agreed to in advance and in writing between the
     parties.

2.8  Future Manufacture. At the date of this Agreement, it is the parties'
     intention that Avecia shall carry out manufacture of the End Product in
     Avecia's Multiplex facility on behalf of Insmed at a commercial scale
     following Completion for use in Phase III clinical trials and commercial
     launch of the End Product. The parties agree to continue negotiations in
     good faith with a view to agreeing the terms of an agreement to

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     govern manufacture by Avecia and supply to Insmed of Insmed's and any of
     Insmed's licensees' requirements for the End Product as soon as possible
     following signature of this Agreement.

3.   Payments

3.1  Total Payment Due. In consideration of Avecia carrying out the research,
     development, manufacturing and other activities pursuant [REDACTED] to the
     Programme, Insmed shall pay to Avecia the sum of [REDACTED] US Dollars
     (US$[REDACTED]).

     Such sum has been paid and shall be paid in the instalments set out in
     Schedules 4, 5 and 6 when Avecia notifies Insmed that the Programme
     milestones, with associated benchmarks set out in those Schedules have been
     achieved, and such achievement is mutually agreed by the JPMC.

3.2  Stage 1 - Feasibility Study, Major Milestones
     (Details and Payments in Schedule 4)
     (a)  Commencement Fee on Commencement Date. (Paid)

     (b)  Mutually agreed completion of the Technical Transfer to enable
          development work under the Feasibility Study to commence. (Paid)

     (c)  Completion of construct re-engineering for IGF-I, BP3 and associated
          process improvements - see Schedule 4 for details

3.3  Stage 2 - Development Programme, Major Milestones
     (Details and Payments in Schedule 5)
     (a)  Completion of four (4) replicate runs at [REDACTED]  litre scale.

     (b)  Completion of downstream purification process development.

     (c)  Completion of duplicate runs on downstream purification.

     (d)  Completion of new construct description on fermentation batch records.

     (e)  Completion of development and scale up of the Process by carrying out
          duplicate runs at [REDACTED] litre scale, with analytical data in a
          form to be agreed.

     (f)  Completion of refined cost sensitivity models and the final
          feasibility report.

3.4  Stage 3 - the GMP Stage, Major Milestones (Details and Payments in Schedule
     6)
     (a)  Preparation of Avecia's Advanced Biologics Centre and GMP
          documentation and transfer of the Process in order to carry out
          development work for production of the End Product in Avecia's
          Advanced Biologics Centre.

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          (b)  GMP manufacture of the End Product.

     3.5  Excluded Items. The sums set out in Schedules 4, 5, and 6, pursuant to
          Clauses 3.1 - 3.4 above do not include:

          (a)  any capital costs for new process specific equipment which may be
               required to operate the Process; or

          (b)  costs actually incurred by Avecia for major consumable items
               (including, without limitation, costs associated with
               chromatography resins, filtration membranes, and chemical raw
               material costs) involved in the manufacturing process.

          Avecia shall obtain Insmed's approval in writing prior to incurring
          such costs in Clauses 3.5 (a) and (b). If such approval is given, the
          provisions of Clause 3.6 will apply.

     3.6  Fees for Excluded Items. Avecia shall invoice Insmed for further sums
          for development work and consultancy to cover management,
          administration and quality control activities. These further sums
          shall equal the cost which Avecia incurs in respect of capital items
          and consumables under Clauses 3.5(a) and (b), plus, in the case of
          consumables intended to be used during the GMP Stage, a sum equivalent
          to [REDACTED]% of the cost of such consumables and in the case of
          capital items requiring validation and installation, a sum equivalent
          to [REDACTED]% of the cost of such capital items, subject to Insmed
          approval in advance of the associated installation and validation
          expenses for capital items.

     3.7  Issue of Invoices. Avecia shall issue invoices for the sums set out in
          Schedules 4, 5, and 6, pursuant to Clauses 3.1 to 3.4 and 3.6 above as
          such sums fall due and Insmed shall pay such sums within 30 days of
          the date of the relevant invoice.

     3.8  Bank Account Details. All amounts payable to Avecia under this
          Agreement shall be paid in US dollars and credited by bank transfer to
          Chase Manhattan Bank, New York, for Account Chase Manhattan Bank,
          London CHASGB2L), in favour of Avecia Limited trading as Avecia
          Biocides, Effects and Fine Chemicals. Account Number 23075411.

     3.9  Value Added Tax. All sums payable under this Agreement are stated
          exclusive of any VAT which may be payable and which shall be for the
          account of Insmed.

4.   Delivery of End Product and Cell Banks

     4.1  Delivery of Material. Subject to the provisions of Clauses 4.3 and 4.4
          in relation to storage, delivery of all material, including the End
          Product manufactured during the Programme and reserve samples of the
          Cell Banks, will be made EXW Avecia's Billingham facility (Incoterms
          2000).

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     4.2  Packing. If requested, Avecia shall arrange for packing of the
          material delivered under Clause 4.1 at Insmed's expense and shall
          comply with all reasonable requirements of Insmed, including GMP in
          packing the material. Risk and title in respect of all material
          supplied to Insmed under this Agreement shall pass on delivery at
          Avecia's Billingham facility.

     4.3  Storage of the End Product. Insmed shall have an option to request
          that Avecia store the End Product, subject to written agreement on the
          terms of such storage, including fees and liability for such storage
          provided that, in the event that Insmed exercises such option:

          (a)  storage shall be at Insmed's expense under conditions to be
               agreed in writing; and

          (b)  storage shall be at Avecia's risk, unless, despite storage in
               accordance with the conditions agreed under Clause 4.3(a), the
               End Product alters or deteriorates from its condition at the
               start of such storage; and

          (c)  risk of loss in the End Product shall pass in the event of
               delivery to Insmed under Clause 4.1 but title will pass on the
               later of (i) Avecia's notification that the End Product has
               passed the quality assurance release protocols set out in the QA
               Agreement or (ii) agreement between the parties that Avecia will
               store the End Product.

          In the absence of agreement on the terms of such storage, Avecia shall
          not be obliged to store the End Product and shall deliver it to Insmed
          subject to the provisions of Clauses 4.1 and 4.2.

     4.4  Storage of Cell Banks. On completion of the Programme, Insmed
          shall have an option to request that Avecia store the Cell
          Banks, subject to written agreement on the terms of such
          storage, including fees and liability for such storage
          provided that, in the event that Insmed exercises such option:

          (a)  storage shall be at Insmed's expense under conditions to
               be agreed in writing; and

          (b)  storage shall be at Avecia's risk, unless, despite
               storage in accordance with the conditions agreed under
               Clause 4.3(a), the Cell Banks alter or deteriorate from
               their condition at the start of such storage; and

          (c)  risk of loss in the Cell Banks shall pass in the event of
               delivery to Insmed under Clause 4.1 but title shall
               immediately vest in Insmed upon creation of the Cell
               Banks; and

          (d)  Avecia shall submit a reserve sample of both the Master
               Cell Bank and Working Cell Bank(s) to Insmed, in
               accordance with agreed written instructions as to
               quantities, shipment and storage conditions, within
               thirty (30) days of their creation, at Insmed's risk.

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          In the absence of agreement on the terms of such storage,
          Avecia shall not be obliged to store the Master Cell Bank
          or the Working Cell Bank and shall deliver them to Insmed
          subject to the provisions of Clauses 4.1 and 4.2.

5.   Intellectual Property

     5.1  Ownership of Background Intellectual Property. Nothing in this
          Agreement shall affect the ownership by either party of its Background
          Intellectual Property.

     5.2  Licence to Intellectual Property for the Programme. Insmed grants to
          Avecia a non-exclusive, royalty-free licence to use Insmed's
          Background Intellectual Property and its New Intellectual Property
          whilst this Agreement remains in force for the sole purpose of
          carrying out the Programme.

     5.3  New Intellectual Property - pPOP(TM) Technology. All New Intellectual
          Property which relates to the pPOP(TM) Technology, except where such
          New Intellectual Property relates solely to the Products or processes
          solely for the manufacture of the Products, shall be owned by Avecia.

     5.4  New Intellectual Property - Other. All New Intellectual Property not
          owned by Avecia under Clause 5.3 shall be owned by Insmed.

     5.5  New Intellectual Property - Not Clearly Within Scope of Clauses 5.3 or
          5.4. In respect of New Intellectual Property not clearly falling
          within the scope of either of Clauses 5.3 or 5.4, the parties shall
          negotiate in good faith to determine the ownership of such New
          Intellectual Property

     5.6  Further Assistance. Each party shall, and shall ensure that its
          employees shall, at the expense of the party owning the New
          Intellectual Property, perform all acts and execute all instruments
          necessary to vest in the owning party all rights, title and interest
          in the registrations together with all patents and patent applications
          or otherwise for such New Intellectual Property. All legal fees, costs
          and expenses connected with the filing, prosecution and maintenance of
          a patent or other protection shall be borne and paid by the party
          owning such Intellectual Property.

     5.7  Utilisation of Third Party Intellectual Property. In the event that
          Avecia considers it expedient for the Programme or the Process to
          utilise Intellectual Property belonging to a Third Party, Avecia shall
          first notify Insmed in writing and obtain Insmed's written consent for
          utilisation of such Third Party Intellectual Property in order that
          terms for access to such Third Party Intellectual Property may be
          agreed either between such Third Party and Avecia or between such
          Third Party and Insmed.

     5.8  Utilisation of pPOP(TM) Technology by Insmed or a Nominated
          Manufacturer. If it is agreed to use the pPoP(TM) Technology at the
          completion of the Development Programme, the specific details of the
          licence from Avecia to Insmed to enable Insmed to operate the Process
          using the pPoP(TM) Technology are to be finalised and the

                               - 11 - CONFIDENTIAL

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          following guidelines shall apply in respect of payment for access
          thereto: a royalty shall be payable at a rate to be negotiated by the
          parties relative to sales potential estimated at the completion of
          Insmed's Phase III clinical programme on the net sales value of sales
          of the Products manufactured using the Process by Insmed or a
          Nominated Manufacturer. Such licence shall include a licence under New
          Intellectual Property owned by Avecia under Clause 5.3.

     5.9  Utilisation of Avecia's Background Intellectual Property. In the event
          that Avecia decides that it considers it expedient for the Process to
          utilise part of Avecia's Background Intellectual Property to which
          Avecia would normally only grant access to a Third Party under a
          licence, Avecia shall within 30 days of such decision notify Insmed in
          writing and obtain Insmed's written consent for utilisation of such
          Background Intellectual Property in the Process. In the event that
          Insmed consents to use of such Background Intellectual Property, the
          provisions of Clause 5.10 shall apply. No royalty is payable for
          Insmed Product manufactured directly by Avecia.

     5.10 Provision of Technical Assistance and Access to Avecia's Intellectual
          Property. If:

          (a)  following Completion, or at any time while this Agreement is in
               effect Avecia is unable to carry out the Programme due to Force
               Majeure, or following termination of this Agreement for any
               reason, Insmed or a Nominated Manufacturer requires Avecia's
               technical assistance; and/or

          (b)  at any time while this Agreement is in effect Avecia is unable to
               carry out the Programme due to Force Majeure, and Insmed or
               Nominated Manufacturer requires a licence under Avecia's
               Background Intellectual Property following consent to the use of
               such Background Intellectual Property in the Process and under
               New Intellectual Property owned by Avecia under Clause 5.3, in
               order to complete or continue the Programme during the existence
               of such Force Majeure; and/or

          (c)  following Completion or following termination of this Agreement
               for any reason Insmed or a Nominated Manufacturer requires a
               licence under Avecia's Background Intellectual Property following
               consent to the use of such Background Intellectual Property in
               the Process and under New Intellectual Property owned by Avecia
               under Clause 5.3

          to operate the Process and/or manufacture the End Product, then such
          assistance and/or access shall be provided to Insmed or such Nominated
          Manufacturer by Avecia subject to agreement of reasonable commercial
          terms between Insmed and Avecia. Any such negotiations shall be
          carried out between the parties in good faith. The parties when
          agreeing the terms of the licence to Avecia's Background Intellectual
          Property shall take any benefit derived by Avecia from its use of the
          New Intellectual Property under the licence granted under Clause 5.11
          below into consideration.

                               - 12 - CONFIDENTIAL

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     5.11 Licence under Insmed New Intellectual Property. Insmed hereby grants
          to Avecia a royalty-free, irrevocable, non-exclusive, world-wide
          licence, with power to sub-license, under process related New
          Intellectual Property owned by Insmed under Clause 5.4 for use other
          than for production of the Products.

6.   Warranties, Liability and Indemnity

     6.1  General Warranty. Each party warrants to the other that:

          (a)  it has the necessary right and authority to enter into this
               Agreement and that to the best of its knowledge at the date of
               this Agreement it is the rightful owner or licensee of all of its
               Background Intellectual Property; and

          (b)  to the best of its knowledge at the date of this Agreement, the
               use of its Background Intellectual Property made available by it
               to the other party pursuant to this Agreement for the purposes
               set out in this Agreement will not infringe the Intellectual
               Property of a Third Party.

     6.2  Warranty and Indemnity in respect of pPOPTM Technology. Avecia
          warrants that it is a licensee under patent application WO9905297 and
          national applications derived therefrom. Avecia shall be liable for
          and indemnify Insmed against any liability, loss, claim, damage,
          proceedings and costs whatsoever arising out of any breach of the
          warranty under this Clause 6.2.

     6.3  Indemnity. Each party ("the First Party") shall be liable for and
          indemnify the other ("the Second Party") against any liability, loss,
          claim, damage, proceedings and costs whatsoever arising out of an IP
          Infringement (as defined below). In the event of an IP Infringement,
          the Second Party shall:

          (a)  give the First Party prompt written notice of any such claim or
               action;

          (b)  (i) give the First Party the sole conduct of the defence and
                   settlement to any claim or action in respect of the IP
                   Infringement, provided, however, that the First Party shall
                   not accept any settlement which imposes liability not covered
                   by this indemnification or restrictions on the Second Party
                   or which would otherwise result in expense to the Second
                   Party without the Second Party's prior written consent,
                   which consent shall not be unreasonably withheld or delayed;
                   and

              (ii) and shall not at any time admit liability or otherwise
                   settle or compromise or attempt to settle or compromise the
                   said claim or action except upon the express instructions of
                   the First Party; and

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          (c)  act in accordance with the reasonable instructions of the First
               Party and give the First Party such assistance as it shall
               reasonably require in respect of the conduct of such defence.

          For the purposes of this clause, the expression "IP Infringement"
          shall mean:

          (i)  where the First Party is Insmed, an allegation or claim by a
               Third Party that Avecia's use of Background Intellectual Property
               provided by Insmed in the performance of the Programme infringes
               such Third Party's Intellectual Property rights; and

          (ii) where the First Party is Avecia, an allegation or claim by a
               Third Party that Avecia's use on behalf of Insmed of Background
               Intellectual Property provided or otherwise used by Avecia in
               connection with the Programme infringes such Third Party's
               Intellectual Property rights.

     6.4  Liability for the End Product

          (a)  Avecia's liability to Insmed in respect of the End Product
               manufactured for Insmed shall be limited to ensuring that such
               End Product complies with the Specification and is manufactured
               in accordance with ISO 9001 and GMP (as appropriate).

          (b)  In the event that the End Product to be delivered to Insmed is a
               Defective Product, such Defective Product shall not be delivered
               to Insmed. The following provisions shall apply in the respect of
               Defective Product:

               (i)  In the event that the End Product to be delivered to Insmed
                    is a Defective Product as a result of an Avecia Default,
                    Avecia shall either rework the Defective Product if Insmed
                    consents to such rework, or manufacture a quantity of the
                    End Product to replace the Defective Product as soon as
                    reasonably practicable (and in no event more than 90 days
                    after Avecia realises that such End Product is Defective
                    Product) and at no further cost to Insmed.

               (ii) In the event that the End Product to be delivered to Insmed
                    is a Defective Product other than due to an Avecia Default,
                    the parties shall meet to discuss availability of Avecia's
                    Advanced Biologics Centre for rework of the Defective
                    Product if Insmed consents to such rework, or manufacture of
                    a quantity of the End Product to replace the Defective
                    Product and, subject to Clause 2.5, agree on a revised
                    period during which such rework or manufacture of
                    replacement End Product will take place and the amount
                    payable by Insmed to Avecia in respect of such rework or
                    manufacture.

                               - 14 - CONFIDENTIAL

<PAGE>

          (c)  Subject to Clauses 6.4(d) and (e), Avecia shall not have any
               liability whatsoever resulting from, and Insmed shall fully
               indemnify Avecia against all claims, suits, actions, demands,
               liabilities, expenses and/or losses (including reasonable legal
               fees) suffered by any Third Party and brought or made against
               Avecia, its directors, officers or employees, and against all
               costs incurred in connection therewith, arising out of or
               resulting from the use of the End Product following delivery.

          (d)  If:

               (i)  a Defective Product is delivered to Insmed by Avecia and
                    such Defective Product is a Defective Product as a result of
                    an Avecia Default; or

               (ii) a Third Party claim arises with respect to an End Product as
                    a result of Avecia's gross negligence or wilful malfeasance

               then Insmed shall not have any liability whatsoever
               resulting from use of such Defective or End Product, and
               Avecia shall fully indemnify Insmed against all claims,
               suits, actions, demands, liabilities, expenses and/or losses
               (including reasonable legal fees) suffered by any Third
               Party and brought or made against Insmed, its directors,
               officers or employees, and against all costs incurred in
               connection therewith, arising out of or resulting from the
               use of such Defective Product or End Product.

          (e)  Avecia's liability to indemnify Insmed under Clause 6.4(d) in
               respect of use of Defective Product or End Product shall cease in
               respect of continuing use by Insmed of the Defective Product or
               End Product in question following either:

               (i)  notification by Avecia to Insmed that the End Product
                    delivered to Insmed is a Defective Product; or

              (ii)  Insmed becoming aware that the End Product delivered to
                    Insmed is a Defective Product; or

             (iii)  Insmed receiving notification that the End Product is the
                    subject of a Third Party claim.

          (f)  Insmed shall not have any liability whatsoever, and Avecia shall
               be responsible for replacement at cost, of any raw materials,
               intermediates or End Product lost or stolen within Avecia's own
               premises prior to delivery of End Product ordered by Insmed,
               excluding normal in-process losses consistent with GMP
               manufacture and prior process history.

          (g)  Insmed shall not be liable whatsoever for raw materials or
               consumable items purchased by Avecia in excess of the needs of
               End Product ordered by Insmed, consistent with GMP, with the
               exception of specific cases requiring long lead times or

                               - 15 - CONFIDENTIAL

<PAGE>

               minimum quantity orders, which shall be approved in writing in
               advance by Insmed.

     6.5  Liability for the Process. Liability in respect of use or operation of
          the Process (or any part of the Process), by or on behalf of Insmed
          shall rest solely on Insmed, except to the extent that Avecia is
          required to indemnify Insmed in accordance with Section 6.2 or 6.3(e)
          above or except to the extent that such liability arises from a Third
          Party claim for property damage or personal injury arising from
          Avecia's failure to operate the Process in accordance with mutually
          agreed batch records and standard procedures or methods. Insmed shall
          indemnify Avecia against any liability, loss, damages, costs, legal
          costs, professional and other expenses whatsoever incurred or suffered
          by Avecia arising out of or in respect of use or operation of the
          Process (or any part of the Process) by or on behalf of Insmed (except
          to the extent that such loss, damages, costs, legal costs,
          professional and other expenses arise from a Third Party claim for
          property damage or personal injury arising from Avecia's failure to
          operate the Process in accordance with mutually agreed batch records),
          unless otherwise specifically provided for in any subsequent
          manufacturing agreement between the parties or Avecia is required to
          indemnify Insmed in accordance with Section 6.2 or 6.3(e) above.

     6.6  Limitation on Liability. Subject to the unlimited indemnity provisions
          under Clauses 6.1, 6.2, 6.3, 6.4, liability for consequential losses
          under Clause 6.7, and breaches of confidentiality under Section 7,
          Avecia's total liability (whether for breach of contract, negligence,
          breach of statutory duty and/or other tort, or otherwise) in
          connection with or as a result of the work carried out under this
          Agreement shall be limited to the aggregate amount received by Avecia
          from Insmed under this Agreement during the period of twelve months
          prior to such liability arising.

     6.7  No Liability for Indirect Losses. Neither party shall be liable to the
          other for any indirect, consequential or special loss, loss of profits
          or damage howsoever arising, excluding:

          (a)  all IP Infringement indemnifications;

          (b)  product liability claims arising from Avecia delivering Defective
               Product; or

          (c)  breaches of confidentiality.

7.   Confidentiality

     7.1  Maintenance of Confidentiality. In consideration of the Disclosing
          Party disclosing the Confidential Information to the Receiving Party,
          the Receiving Party hereby undertakes to maintain confidential all
          such Confidential Information and it will accordingly not directly or
          indirectly use any of the Confidential Information in whole or in part
          save for the purposes envisaged in this Agreement or disclose any of
          the Confidential Information to any Third Party other than under and
          in

                              - 16 - CONFIDENTIAL

<PAGE>

          accordance with the terms of Clauses 7.6, 7.7 or 7.8.

     7.2  Use of Insmed Materials. Insmed Materials and project documentation
          conveyed from Insmed to Avecia shall be used solely for the Programme
          and held in Avecia's custody, in accordance with the provisions of
          this Clause 7. Conveyance of any Insmed Materials or project
          documentation from Avecia to any party other than Insmed requires the
          express written approval of Insmed.

     7.3  Return or Destruction of Insmed Materials. Avecia agrees to either
          return or send all Insmed Materials and project documentation
          containing Insmed's Confidential Information to Insmed or, if Insmed
          agrees, certify that such Insmed Materials and project documentation
          have been destroyed within forty-five (45) days of Completion or after
          termination under Clause 8, subject to payment of any sums owed to
          Avecia under Clauses 3 or 8. Nothing in this Agreement is to be
          construed as permitting the granting of any contractual ownership
          rights, either of Insmed Materials, project documentation or
          Intellectual Property, to anyone without written authorisation from
          Insmed, except as expressly provided herein to Avecia.

     7.4  Exceptions. The foregoing restrictions on the Receiving Party shall
          not apply to any Confidential Information which:

          (a)  the Receiving Party can prove was already in its possession and
               at its free disposal before the disclosure hereunder to it;

          (b)  is hereafter disclosed to, purchased or otherwise legally
               acquired by the Receiving Party by or from a Third Party who has
               not derived it directly or indirectly from the Disclosing Party
               under an obligation of confidentiality;

          (c)  is or becomes available to the public whether in printed
               publications or otherwise through no act or default of the
               Receiving Party in violation of this Clause 7; or

          (d)  the Receiving Party can prove to the reasonable satisfaction of
               the Disclosing Party has been developed independently of the
               Programme by the Receiving Party without reference to any of the
               Confidential Information disclosed by the Disclosing Party.

     7.5  Exercise of Reasonable Precautions. In order to secure the obligations
          set out in this Clause 7 the Receiving Party agrees to exercise every
          reasonable precaution to prevent and restrain the unauthorised
          disclosure and use of information subject to confidentiality,
          including without limitation restricting access to such information to
          such of its employees as are bound to keep such information
          confidential and need to have such access for the purpose of this
          Agreement.

     7.6  Disclosure to Nominated Manufacturer. Insmed shall be entitled to
          reveal Confidential Information of Avecia to a Nominated Manufacturer,
          provided that Insmed either:

                              - 17 - CONFIDENTIAL

<PAGE>

          (a)  does so under confidentiality obligations no less onerous than
               those contained in this Clause 7; or

          (b)  Insmed procures the entry of such the Nominated Manufacturer into
               a confidentiality agreement with Avecia directly.

     7.7  Disclosure to Affiliates. Either party may disclose Confidential
          Information to its Affiliates or receive Confidential Information
          through its Affiliates, and each party confirms that its Affiliates
          have been made aware of the obligations contained in this Agreement
          and agree to be subject to confidentiality obligations no less onerous
          than those contained in this Agreement. Any breaches of the
          obligations of confidentiality contained in this agreement by such
          Affiliate shall be treated as a breach of such obligations by the
          party making the disclosure to or receiving through the Affiliate.

     7.8  Disclosure to Courts or by Law or Other Rules. Nothing in this Clause
          7 shall preclude disclosure of any Confidential Information required
          by any court entitled by law to disclosure of the same, or which is
          required by law to be disclosed, provided that the Receiving Party
          promptly notifies the Disclosing Party when such requirement to
          disclose has arisen, to enable the Disclosing Party to seek an
          appropriate protective order and to make known to the said court the
          proprietary nature of the Confidential Information and to make any
          applicable claim of confidentiality in respect thereof. The Receiving
          Party agrees to co-operate in any appropriate action which the
          Disclosing Party may decide to take. If the Receiving Party is advised
          to make a disclosure in accordance with this Clause 7.8 it shall only
          make a disclosure to the extent to which it is obliged.

     7.9  Survival of Obligations. The provisions of this Clause 7 shall survive
          termination or expiry of this Agreement and shall continue for a
          period of ten years from the date of that termination or expiry.

     7.10 Continuation of the Confidentiality Agreement. The parties shall
          remain bound by the obligations in the Confidentiality Agreement, but
          in the event of any conflict between the terms of the Confidentiality
          Agreement and the terms of this Agreement, the latter shall prevail.

8.   Duration and Termination

     8.1  Duration. This Agreement shall be deemed to have commenced on the
          Commencement Date and shall continue until Completion unless
          terminated in accordance with the provisions of Clause 8.2.

     8.2  Termination. Subject to Clause 9, this Agreement may be terminated in
          the following ways:

          (a)  by mutual agreement at any time prior to Completion in the event
               that both parties agree that the Programme is not technically
               feasible;

                               - 18 - CONFIDENTIAL

<PAGE>

          (b)  by Insmed at any time by giving written notice to Avecia;

          (c)  by either party forthwith if the other is in breach of this
               Agreement and does not rectify such breach within 30 days of
               receipt of written notice from the first party requiring
               rectification of the breach; or

          (d)  by either party forthwith upon written notice if the other has a
               liquidator, receiver, manager receiver or administrator
               appointed, or ceases to continue trading or is unable to pay
               debts as defined in Section 227 of the Insolvency Act 1986
               (England and Wales) or the equivalent occurs in any jurisdiction
               in which the other is resident or carried on business.

9.   Consequences of Termination

     9.1  Consequences. In the event of termination under Clause 8 above:

          (a)  Insmed shall pay to Avecia all sums payable up to the date of
               termination but not yet paid;

          (b)  if Avecia terminates for Insmed's unremedied breach or insolvency
               under Clauses 8.2(c) and (d), or if the Agreement is terminated
               by mutual agreement under Clause 8.2(a), or if Insmed terminates
               on notice under Clause 8.2(b), any moneys paid by Insmed to
               Avecia up to the date of termination shall be non-refundable;

          (c)  if Avecia terminates for Insmed's unremedied breach or insolvency
               under Clauses 8.2(c) and (d), or if the Agreement is terminated
               on mutual agreement under Clause 8.2(a), or if Insmed terminates
               on notice under Clause 8.2(b), Insmed shall pay to Avecia:

               (i)  all reasonable costs already incurred by Avecia in
                    accordance with the Agreement at the date of termination or
                    costs incurred by Avecia after termination which could not
                    reasonably be avoided; provided, however, that in no event
                    shall the sum of the amounts payable to Avecia under 9.1(a)
                    and (c) and the amounts previously paid to Avecia hereunder
                    exceed the total amount that would have been paid to Avecia
                    if the Agreement had not been terminated and Avecia had
                    performed this Agreement in full; and

               (ii) the Cancellation Fee (except if the Agreement is terminated
                    on mutual agreement under 8.2(a)).

          (d)  if Insmed terminates for Avecia's unremedied breach or insolvency
               under Clauses 8.2(c) or (d) above, Avecia shall refund to Insmed
               any monies paid to Avecia, less an agreed

                               - 19 - CONFIDENTIAL

<PAGE>

               sum in respect of work done by Avecia and not affected by the
               breach, taking into consideration the payments set out in Clause
               3 and in the absence of agreement upon such sum the provisions of
               Clause 19 shall apply.

     9.2  Acquired Rights. Termination or expiry of this Agreement, for whatever
          reason, shall not prejudice the acquired rights of either party,
          including the right to payment for the Programme pursuant to Clause 3
          (subject to Clause 9.1).

     9.3  Survival. The provisions of Clauses 3, 5, 6, 7 - 9, 11 - 17 and 19
          shall survive the termination or expiry of this Agreement.

10.  Independent Contractor

     Nothing in this Agreement shall create, or be deemed to create, a
     partnership or the relationship of principal and agent or employer and
     employee between the parties. Each party agrees to perform under this
     Agreement solely as an independent contractor.

11.  Entire Agreement

     This Agreement together with the Confidentiality Agreement contains the
     entire agreement between the parties and supersedes any previous agreements
     (including the Letter of Intent) relating to the Programme and any
     understandings between the parties with respect thereto.

12.  Announcements And Publicity

     Either of the parties may make an official press release, announcement or
     other formal publicity relating to the transactions which are the subject
     of this Agreement, or any ancillary matter, unless the other party
     reasonably objects to the making of such publication. The party wishing to
     make such release, announcement or publicity shall provide a copy of the
     text thereof to the other party prior to release and the other party shall
     raise any objections as soon as possible but not later than fourteen days
     following receipt.

13.  Assignment

     This Agreement shall be binding upon and inure to the benefit of the
     parties hereto and their respective legal successors but shall not
     otherwise be assignable by either party, without the prior written consent
     of the other party, which consent shall not be unreasonably withheld,
     provided that either party may assign this Agreement without consent by
     notice in writing to the other party, to its affiliates, or to a purchaser
     of the whole or part of the business to which this Agreement relates.

                               - 20 - CONFIDENTIAL

<PAGE>

14.  Variation

     No variation or amendment of this Agreement shall bind either party unless
     made in writing in the English language and agreed to in writing by duly
     authorised officers of both parties.

15.  Illegality

     If any provision of this Agreement is agreed by the parties to be illegal,
     void or unenforceable under any law that is applicable hereto or if any
     court of competent jurisdiction in a final decision so determines, this
     Agreement shall continue in force save that such provision shall be deemed
     to be excised herefrom with effect from the date of such agreement or
     decision or such earlier date as the parties may agree.

16.  Waiver

     A failure by either party hereto to exercise or enforce any rights
     conferred upon it by this Agreement shall not be deemed to be a waiver of
     any such rights or operate so as to bar the exercise or enforcement thereof
     at any subsequent time or times.

17.  Notices and Communications

     17.1 Formal Notices. Any formal notice required or permitted under this
          Agreement shall be in writing which may take the form of a letter or
          facsimile and shall be sent by prepaid post, facsimile, or hand
          delivery (including messenger service). The addresses for any such
          notice or other communication shall be those stated on the first page
          of this Agreement.

     17.2 Other Communications. In addition to the methods set out in Clause
          17.1, any other communications between the parties may be made by
          telephone or by email.

     17.3 Change of Address. Any party may, at any time by written notice to the
          other parties, change the address or the facsimile numbers to which
          notices or other communications shall be sent. All notices and other
          communications shall have been duly given or made (i) when delivered
          by hand (including by messenger service) upon delivery or (ii) when
          delivered by post upon delivery or (iii) when faxed upon receipt of a
          legible copy by recipient and production of a satisfactory
          transmission report by sender confirming transmission of the fax in
          full to the appropriate number by the fax machine which sent the fax.

18.  Force Majeure

     Neither party shall be liable to the other party in any manner whatsoever
     for any failure or delay in performing its obligations under this Agreement
     if and to the extent, and for the duration, that such is due to Force
     Majeure.
                               - 21 - CONFIDENTIAL

<PAGE>

     Without prejudice to Clause 8, any said failure or delay shall not give
     either party the right to terminate this Agreement except, and to the
     extent that such Force Majeure continues for a period exceeding three (3)
     months. Termination as a result of Force Majeure shall take effect as if
     the Agreement had been terminated by mutual agreement under Clause 8.2(a).
     Insmed shall not be entitled to relief under this Clause 18 for any delay
     or failure in performing any of its payment obligations under this
     Agreement, or in the event of failure of the End Product in clinical
     trials.

19.  Law and Jurisdiction

     19.1 Governing Law. This Agreement is governed by and shall be construed
          and interpreted in accordance with, and any arbitration or court
          action hereunder shall apply, the laws of the State of New York. Any
          proceedings between the parties shall be conducted in the English
          language.

     19.2 Reference to Parties' Senior Representatives. Prior to any dispute,
          difference or disagreement concerning this Agreement proceeding to
          litigation through the Court pursuant to Clause 19.1 the parties shall
          seek first to resolve the matter via the Joint Programme Management
          Committee (Clause 2.6) without delay. If resolution is not reached
          within fifteen days, the matter shall be referred to the
          Vice-President, Avecia Fine Chemicals and the CEO of Insmed.

     19.3 Arbitration. Any matter or dispute arising out of or in connection
          with this Agreement which is not able to be resolved pursuant to
          Clause 19.2 shall be finally settled by commercial arbitration to be
          held in the State of New York. In appointing arbitrators, the parties
          shall consider the appointment of arbitrators capable of making
          decisions on the technical aspects of the Programme.

     19.4 Interim Steps. Neither of the parties shall be deemed to be precluded
          from taking such interim formal steps as may be considered necessary
          to protect such party's position while the procedures referred to in
          Clauses 19.2 and 19.3 are pursued.

     19.5 Other Proceedings. Notwithstanding anything contained in this Clause
          19 to the contrary, each party shall have the right to institute
          judicial proceedings against the other party or anyone acting by,
          through or under such other party, in order to enforce the instituting
          party's rights hereunder through reformation of contract, specific
          performance, injunction or similar equitable relief.

                               - 22 - CONFIDENTIAL

<PAGE>

IN WITNESS WHEREOF, the authorised representatives of the parties have executed
this Agreement on the date written at the top of this Agreement.

For and on behalf of AVECIA LIMITED

Signature
          -------------------------
Name
          -------------------------
Position
          -------------------------

For and on behalf of INSMED INCORPORATED.

Signature
          -------------------------
Name
          -------------------------
Position
          -------------------------

                               - 23 - CONFIDENTIAL

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