Document:

exv10w21

 

[***Confidential Treatment Requested. Confidential portions of
this agreement have been redacted and have
been separately filed with the Commission]

Exhibit 10.21

CONFIDENTIAL

JOINT DEVELOPMENT AND JOINT MARKETING AGREEMENT BETWEEN

METAMORPHIX, INC.

AND

EXCEL CORPORATION

AND

CARGILL, INCORPORATED

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CONFIDENTIAL

JOINT DEVELOPMENT AND JOINT MARKETING AGREEMENT

This Joint Development and Joint Marketing Agreement (the “Agreement”) is entered into as of May
6, 2002 (the “Effective Date”) by and between METAMORPHIX, INC., a Delaware corporation, having a
place of business at 8510A Corridor Road, Savage, Maryland 20763 (“MMI”) and EXCEL CORPORATION, a
Delaware corporation and a subsidiary of Cargill, Incorporated, having a place of
business at 151 North Main Street, Wichita, Kansas 67202 (“Excel”), and — CARGILL, INCORPORATED, a
Delaware corporation, through its Caprock business unit, having a place of business at 15407
McGinty Road West, Wayzata, Minnesota 55391 (“Caprock”)(Excel and Caprock may be collectively
referred to herein as the “The Cargill Entities”), each hereinafter individually referred to as
the “Party” and collectively as the “Parties.”

Recitals

     WHEREAS, MMI has developed and licensed in resources and expertise in the areas of on-line
information, discovery sciences, discovery services, and agricultural products that are based on
MMI’s generation, integration, and analysis of biological information and that enable agricultural
research and discoveries by the members of the agriculture industry and research community; and

     WHEREAS, Excel is engaged in the business of processing cattle and other livestock into
various meat and animal-derived products, and the sale of such products; and

     WHEREAS, Caprock is engaged in the business of raising and feeding beef cattle; and

     WHEREAS, The Cargill Entities, subject to the terms and conditions of this Agreement, desire
to have MMI perform the discovery services as described in this Agreement for them, and MMI
desires to obtain certain information and data from The Cargill Entities as described in this
Agreement; and

     WHEREAS, The Cargill Entities and MMI intend to work together toward jointly developing and
jointly commercializing products through the utilization of the discovery services, information,
and data that are the subject of this Agreement; and

     WHEREAS, MMI, subject to the terms and conditions of this Agreement, is willing to perform
the discovery services as set forth in this Agreement for The Cargill Entities, and The Cargill
Entities, subject to the terms of this Agreement, are willing to provide MMI with the information
and data as set forth in this Agreement.

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CONFIDENTIAL

Agreement

     NOW, THEREFORE, the Parties agree, covenant, represent, and warrant as follows:

1 DEFINITIONS

For purposes of this Agreement, each capitalized term used shall have the meaning assigned to it
in Exhibit A or otherwise in this Agreement.

2 PERFORMANCE AND GOVERNANCE OF THE WORK PLAN

	2.1  	Primary Contacts and Steering Committee. The Parties shall form a six (6) person
steering committee (the “Steering Committee”) to monitor the research and development
activities under this Agreement and perform the functions as provided below. MMI and The
Cargill Entities each shall appoint three (3) representatives to serve on the Steering
Committee, and each shall designate one of its representatives to be the primary contact
between them and to serve as the co-chairs of the Steering Committee. These primary contacts
shall be responsible for day-to-day communication between the Parties and for preparing and
retaining summaries of all communications for at least three (3) years after the date of
Complete Delivery. Each Party may substitute any or all of its representatives to the
Steering Committee upon written notice to the other Party. Prior written notice (of at least
three (3) days and to all members) must be given of all meetings (whether held in person or
by telephone conference), at least four (4) members of the Steering Committee must be present
to constitute a quorum, and any decisions, recommendations, or other authorized actions of
the Steering Committee shall be made only by a majority vote of all six members of the
Committee (i.e., by at least four (4) members voting in the affirmative).

	 	2.1.1  	The Steering Committee shall:

	 	(a)  	Monitor issues relating to the Work Plan (which is attached to
this Agreement as Exhibit B and incorporated by reference herein) and to the
Joint IP.
	 
	 	(b)  	Monitor, discuss, and make recommendations on matters relating
to Joint IP (including, but not limited to, the advisability of filing a
patent upon any specific association or other item of Joint IP);
	 
	 	(c)  	Assess the research requirements, time frames, and work
prioritization of the Work Plan. The Steering Committee shall have the
authority to extend any deadlines or time frames under the Work Plan by no
more than sixty (60) days. Should either Party seek an extension beyond 60
days, it must be approved in writing

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CONFIDENTIAL

by the Chief Executive Officer of MMI (or his authorized designee) and the
designated Business Manager for The Cargill Entities.

	 	(d)  	Meet following the completion or purported completion of each
Part of the Work plan, within 30 days following delivery by MMI to The Cargill
Entities of the required Deliverable(s) applicable to such Part of the Work
Plan, to (1) discuss and assess the Deliverable(s), and (2) make a
recommendation as to whether or not the Parties should proceed to the next Part
of the Work Plan. In the event that the recommendation of the Steering
Committee is to proceed to the next Part of the Work Plan, the Parties shall so
proceed. In the event that the Steering Committee recommends that the Parties
not proceed to the next Part or in the event that the Steering Committee cannot
reach a majority vote on the issue, the Parties shall follow the procedure set
forth in Section 12.12.
	 
	 	(e)  	Following completion of the Work Plan, turn its attention and
efforts toward commercialization of the Joint IP and associated products and
services. In this regard, the Steering Committee shall, keeping in mind the
Core Commercialization Concepts (as defined in Section 8), meet on a regular
basis to discuss, evaluate alternatives, and make recommendations relating to
the commercialization of the Joint IP and the execution of a definitive Joint
Commercialization Agreement.

	 	2.1.2  	The Steering Committee shall NOT have any authority to:

	 	(a)  	amend the Work Plan, other than with respect to the extension
of deadlines as specifically described in Section 2.1.1(d) above;
	 
	 	(b)  	amend this Agreement; or
	 
	 	(c)  	bind any of the Parties to any obligation or commitment in
addition to or different from those contained in this Agreement.

	2.2  	Work Plan. The Parties shall use their commercially reasonable efforts to
complete the research and activities in the Work Plan in accordance with the schedule set
forth therein.
	 
	2.3  	Material, Data and/or Information Transfer.

	 	2.3.1  	The Cargill Entities shall provide MMI with the Samples in the amount and
of the quality set forth in the Work Plan for MMI to use for purposes set forth in
this Agreement and to complete the Work Plan. The Cargill Entities further shall
describe in writing each transfer of any Sample to MMI. In the event that The Cargill
Entities fail to deliver the Samples as required by the Work Plan, then MMI shall
provide written notice to The Cargill Entities’ co-chair of the Steering Committee and
the time for MMI

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CONFIDENTIAL

to provide each affected Deliverable and Complete Delivery to Excel shall be
extended by a number days equal to the number of days that passed from the due date
for such Samples until the date that The Cargill Entities delivered the required
Samples to MMI.

	 	2.3.2  	MMI shall (a) use The Cargill Entities’ Material solely to meet its
obligations under this Agreement, and (b) either (i) if requested by The Cargill
Entities in timely fashion, return all residual Samples to The Cargill Entities (or
another site designated by The Cargill Entities’) at the expense and risk of The
Cargill Entities within thirty (30) calendar days after the date of Complete Delivery
or termination of this Agreement or (ii) destroy all residual Samples within thirty
(30) calendar days after the date of Complete Delivery or termination of this
Agreement. MMI shall not distribute, release, sell, disclose, or otherwise transfer
the Samples to any Third Party, except as otherwise may be permitted under Section 4
(Confidentiality).
	 
	 	2.3.3  	The Cargill Entities reserve the right to use the Samples and, subject to the
terms of this Agreement, transfer them to any Third Party.

	2.4  	Data Accumulation. Immediately upon completion of each Part of the Work Plan, MMI
shall deliver to The Cargill Entities the applicable Deliverable(s) as set forth in the Work
Plan and Section 3.2. In addition, MMI shall record and store the data and information as it
is generated and accumulated under the Work Plan in one or more computer databases in
anticipation of the delivery of certain confidential data and information in furtherance of
Section 7.8.

3 PAYMENTS

	3.1  	Payments by The Carqill Entities to MMI. The Cargill Entities shall share in the
costs of the activities and services performed by MMI under the Work Plan by making payments
to MMI as set forth in Exhibit C. Except for the Initial Payment, it is the intent of the
Parties that The Cargill Entities shall be obligated to make a given payment to MMI only
following the full and successful completion of each Part of the Work Plan upon delivery by
MMI of the required Deliverable(s).

	3.2  	MMI Delivery of Deliverable(s). When MMI believes that it has completed a given
Part of the Work Plan, it shall deliver to The Cargill Entities the required Deliverable(s)
which shall be accompanied by (1) a written statement confirming that all of the required
actions and services under the Work Plan have been completed and that all of the required
Deliverable(s) have been delivered and (2) an invoice for the applicable payment amount as
set forth on Exhibit C.

	3.3  	Review of Deliverable(s) by The Carqill Entities. Upon receipt from MMI of all of
the Deliverable(s) and the written documentation described in Section 3.2, The Cargill
Entities shall have a period of thirty (30) days to examine the Deliverables

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and make a determination, in its reasonable judgment, as to whether MMI has completed
all of the required actions and services and delivered all of the required Deliverable(s).

	 	3.3.1  	In the event that The Cargill Entities determine that all required
Deliverable(s) have been successfully delivered, The Cargill Entities shall remit
payment to MMI within ten (10) days following the 30 day period evaluation period. If
such payment is not received on or before such tenth (10th) day, then MMI may
provide written notice to The Cargill Entities’ co-chair of the Steering Committee and
have the time for MMI to provide the Deliverable(s) for the next Part of the Work Plan
shall be extended by a number of days equal to the number of days that passed from the
due date for such payment until the date upon which MMI receives such payments.
	 
	 	3.3.2  	In the event that The Cargill Entities determine that all required
Deliverable(s) have not been delivered, (1) The Cargill Entities shall
advise MMI in writing of its determination within the 30 day evaluation period
specifying, in detail, the areas of deficiency and (2) The Cargill Entities’ obligation
to remit the applicable payment and MMI’s obligation to proceed with the next Part of
the Work Plan shall be suspended pending a resolution of the matter as described in
Section 3.3.3 below.
	 
	 	3.3.3  	In the event The Cargill Entities provide written notice to MMI of deficiencies as
described in Section 3.3.2 above, MMI shall either:

	 	(a)  	make an effort to address the deficiencies cited by The Cargill
Entities and make a corrective delivery of all of the required Deliverable(s)
within 30 days following receipt of The Cargill Entities’ notice, in which case
Cargill shall have a further 30 day period to evaluate the corrective
Deliverable(s). In the event that The Cargill Entities determine, in its
reasonable judgment, that all required Deliverable(s) have been delivered, The
Cargill Entities, shall remit payment to MMI within ten (10) days
following the earlier of the end of the 30-day period evaluation period or such
determination. In the event The Cargill Entities again determine that all
required Deliverable(s) have not been delivered, (1) The Cargill Entities shall
advise MMI in writing of its determination within the new 30-day evaluation
period specifying the areas of deficiency, thereby initiating one (1)
additional and final 30-day cure period or (2) if a reasonable determination
can be made that such Deliverable(s) are incapable of ever being delivered (due
to scientific impossibility, impracticability of the effort, or MMI’s
abandonment of the project), The Cargill Entities shall thereupon have the
right to declare MMI in breach and terminate this Agreement with immediate
effect by providing written notice to

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MMI, in which case ownership and rights in and to the Joint IP shall be
as set forth, as the case may be, in either Section 5.3.2 or Section 7.2.1.
The Cargill Entities shall have no further obligation to remit the
applicable payment, nor any further payments whatsoever, to MMI, subject to
MMI’s right to refer the matter to binding arbitration in accordance with
Section 12.12; or

	 	(b)  	advise The Cargill Entities in writing (i) that it disagrees
with The Cargill Entities notice, (ii) that it reasserts that its belief that
all of the required Deliverable(s) have been delivered, and (iii) while
reserving the right to delivery additional or different Deliverable(s), that
it is submitting the matter to binding arbitration in accordance Section
12.12.

	3.4  	Nonrefundable Nature. All payments made by The Cargill Entities hereunder are
nonrefundable, but the making of any payments by The Cargill Entities to MMI shall in no way
prevent or preclude The Cargill Entities from seeking, pursuing, and/or recovering any rights
and remedies available under this Agreement.

	3.5  	Taxes. All amounts payable under this Agreement are exclusive of all sales, use,
value-added, withholding, and other taxes and duties. The Cargill Entities shall pay all
sales and use taxes and duties assessed in connection with the sale of products to or
performance of services for The Cargill Entities under this Agreement and its performance by
any authority within or outside of the U.S. The Parties shall be solely responsible for the
payment of any and all taxes payable on their respective net income and the payment of any
and all employment related taxes attributable to their respective employees, agents, and
representatives.
	 
	3.6  	Failure by The Carqill Entities to Make Timely Payment.

	 	3.6.1  	Notice and Right to Terminate. In the event that MMI has not
received a payment from The Cargill Entities due hereunder within the prescribed time
period in violation of the terms of this Agreement, MMI shall notify The Cargill
Entities in writing of such non-payment. In the event that MMI has not received
payment within fifteen (15) days after receipt by The Cargill Entities of such notice
from MMI, MMI shall have the right to suspend further work under the Work Plan and/or
suspend The Cargill Entities’ rights to the Joint IP. In the event that such payment
is not made within thirty (30) days of The Cargill Entities’ receipt of such notice,
MMI also shall have the right to declare The Cargill Entities in default and terminate
this Agreement with immediate effect by providing written notice to The Cargill
Entities in accordance with Section 7.2, in which case ownership and rights in and to
the Joint IP and liability of The Cargill Entities shall be as set forth in Section
7.2.

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	 	3.6.2  	Late Payment Fee. Any payment due under this Agreement
that is not paid within the specified time period in violation of the terms of
this Agreement, shall bear interest to the extent permitted by applicable law, at two
percentage points (2%) over the prime rate of interest compounded on an annual basis
as reported by Bank of America NT&SA in San Francisco, California, from time to time,
calculated on the number of days such payment is delinquent.

4 CONFIDENTIALITY AND PUBLICATION

	4.1  	Confidentiality. The Parties acknowledge that the Confidentiality Agreements
shall control all disclosures from its effective date up to and until the Effective Date of
this Agreement. The Parties agree that each Confidentiality Agreement is hereby superseded as
of the Effective Date of this Agreement by the terms and conditions set forth in this Section
4 and the other applicable terms and conditions set forth in this Agreement.

	 	4.1.1  	The Parties acknowledge that during the course of this Agreement they may
each receive (and hence become a “Receiving Party”) from the other (the “Disclosing
Party") information electronically, in writing, or orally, that is
proprietary and/or confidential and of commercial value to the Disclosing Party. The
Parties agree that they shall take all reasonable measures to protect the secrecy of
and avoid disclosure and unauthorized use of the Confidential Information. Without
limiting the foregoing, the Parties shall take at least those measures that each takes
to protect its own confidential information of a similar nature, but in no event less
than a reasonable degree of care. Both Parties shall immediately notify the other in
the event either Party has knowledge of any unauthorized use or disclosure of the
Confidential Information.
	 
	 	4.1.2  	Except to the extent expressly authorized by this Agreement, the Parties
agree that the Receiving Party shall keep confidential and shall not publish or
otherwise disclose, and shall not use for any purpose, any Confidential Information
furnished to it by the Disclosing Party pursuant to this Agreement, regardless of the
medium on which it is provided, including know-how, except to the extent that it can
be established by the Receiving Party by competent proof that such information:

	 	(a)  	was already known to the Receiving Party, other than under an
obligation of confidentiality, at the time of disclosure by the Disclosing
Party;
	 
	 	(b)  	was generally known to the public or otherwise part of the public
domain at the time of its disclosure to the Receiving Party;
	 
	 	(c)  	became generally available to the public or otherwise part of the
public domain after its disclosure through no fault of the Receiving

Party;

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	 	(d)  	was subsequently lawfully disclosed to the Receiving Party by a Third Party
who did not require the Receiving Party to hold it in confidence or limit its
use, provided it was not obtained by such Third Party under an obligation of
confidentiality directly or indirectly from the Disclosing Party; or
	 
	 	(e)  	was independently discovered or developed by the Receiving Party
without the use of the Disclosing Party’s Confidential Information,
as can be documented by written records created at the time of
such independent discovery or development.

	4.2  	Permitted Disclosure.

	 	4.2.1  	Subject to Section 4.1, the Receiving Party may disclose the
Disclosing Party’s Confidential Information only to the extent such disclosure is
required for complying with applicable laws; regulations, and/or court or
administrative orders; provided however, that in each case described in this Section
4.2.1, the Receiving Party shall (i) give at least twenty-four (24)
hours advance notice to the Disclosing Party of such disclosure requirement; (ii)
provide a copy of the proposed disclosure; and (iii) use commercially reasonable
efforts in assisting the Disclosing Party to secure confidential treatment, including
a protective order, for such Confidential Information required to be disclosed.
	 
	 	4.2.2  	The Receiving Party may disclose the Disclosing Party’s Confidential
Information only to the Receiving Party’s employees, contractors, consultants, or
licensees who (a) have a need-to-know and (b) are under contract not to disclose or
use Confidential Information except as otherwise provided in this Agreement.

	4.3  	Copies. A Receiving Party shall not make any copies of the Disclosing Party’s
Confidential Information without the prior written approval of the Disclosing Party, except
that, subject to Section 7.2, (a) The Cargill Entities may make copies that are
reasonably necessary for the research and development of The Cargill Entities’ Products, (b)
MMI may make copies that are reasonably necessary for the conduct of the Work Plan, and (c)
copies may be made as a part of any effort by the Steering Committee or as a part of the
planning for joint commercialization. Notwithstanding the foregoing, the Receiving Party may
retain one (1) copy of the Disclosing Party’s Confidential Information solely for legal
archival purposes.

	4.4  	Publication. Any Publications shall not include any of the Disclosing Party’s
Confidential Information without the Disclosing Party’s prior written consent and shall
include appropriate recognition of the other Party’s contributions in accordance with the
standard practice for assigning scientific credit, either through authorship or
acknowledgement as may be appropriate.

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	 	4.4.1  	Joint Publication. In the event that the Parties agree to jointly
prepare a Publication of the results of the Work Plan in a mutually acceptable
scientific journal the Parties shall (a) jointly draft such Publication through the
research representatives; (b) prepare such Publication within a mutually agreed upon
time following completion of the Work Plan; and (c) have such joint Publication
reviewed and approved by the duly authorized officers of MMI and The Cargill Entities
prior to submission of the article to the agreed upon scientific journal. Except by
mutual consent, neither Party shall release or otherwise transfer any of the results
from the Work Plan to any Third Party or the public prior to the date on which such
joint Publication will be released.

	4.5  	Public Announcements.

	 	4.5.1  	Except as may otherwise be required by law or regulation, neither Party shall
make any public announcement, directly or indirectly, concerning the existence or
terms of this Agreement (or the subject matter hereof) without obtaining the prior
consent of the other Party under Section 4.5.2; it being envisioned, however, that
there shall be an initial public announcement of the existence of this Agreement.
	 
	 	4.5.2  	Unless otherwise agreed upon by the Parties, the reviewing Party shall have
(a) ten (10) calendar days to consent (or decline to consent) to an initial public
announcement concerning the existence or terms of this Agreement (or the subject
matter hereof), such consent not to be unreasonably withheld or delayed; or (b) thirty
(30) calendar days to consent to the publication of any announcement other than those
subject to. (a), such consent not to be unreasonably withheld. The
aforegoing “reasonable” standard of consent shall not apply to a proposed public
disclosure of Confidential Information, which may be prohibited by the Disclosing
Party in its sole and absolute discretion.
	 
	 	4.5.3  	If either Party shall be required by law or regulation to make a public
announcement concerning the existence or terms of this Agreement, such Party shall (a)
include only such information in the public announcement that is specifically
required, and (b) give at least forty-eight (48) hours prior advance notice to the
other Party and obtain the other Party’s comments.

	4.6  	Equitable Relief. MMI and The Cargill Entities in their role as Receiving Parties
under this Agreement hereby acknowledge and agree that with respect to the nature of the
Confidential Information, there may be no adequate remedy at law for any breach of their
obligations as Receiving Party under the confidentiality provisions of this Agreement, that
any such breach may result in irreparable harm to the Disclosing Party, and therefore,
notwithstanding Section 12.12, that upon any such breach the Disclosing Party shall be
entitled to seek equitable relief, in addition to whatever remedies it might have at law,
including injunctive

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relief, specific performance, or such other relief as the Disclosing Party may request
to enjoin or otherwise restrain any act prohibited hereby, as well as the recovery of all
reasonable costs and expenses, including attorneys’ fees incurred.

5 INTELLECTUAL PROPERTY

	5.1  	MMI Rights and Obligations. MMI shall own all right, title and interest in and to MMI
Technology. MMI shall assume all responsibility for all costs associated with the application,
prosecution, maintenance, defense, and enforcement of patent applications and patents claiming
all or a portion of MMI Technology.

	5.2  	The Cargill Entities Rights and Obligations. The Cargill Entities shall own all
right, title, and interest in and to The Cargill Entities Material, Samples, and The Cargill
Entities Technology. The Cargill Entities shall assume all responsibility for all costs
associated with the application, prosecution, maintenance, defense, and enforcement of patent
applications and patents claiming all or a portion of The Cargill Entities Material, Samples,
and/or The Cargill Entities Technology. Nothing in this Agreement shall prohibit The Cargill
Entities from continuing work under any agreements with Third Parties relating to animal
genomics research that (1) were signed by The Cargill Entities prior to the Effective Date and
(2) do not require SNP association analysis.

	5.3  	Joint Intellectual Property Rights. Except as otherwise provided in this
Agreement, during the term of this Agreement all Joint IP shall be owned jointly by MMI and
The Cargill Entities and the following shall apply:

	 	5.3.1  	During the term of this Agreement (except as may be provided in any Joint
Commercialization Agreement), neither Party may enter into any negotiations,
discussions, or agreements with any Third Party regarding any association studies
in any of the Targeted Traits in bovine animals in respect to meat production or
processing. During the Term of this Agreement and, subject to Section 7.2,
thereafter, the Parties may not make, use, sell, license, or convey any rights in
Joint IP for any purpose whatsoever (a) except upon joint agreement among the
Parties, (b) except as set forth in Sections 3.3.3, 5.3.2, 7.2.1, or 7.3, or (c)
except in furtherance of the Work Plan set forth in this Agreement. Neither Party
(without the prior written agreement of the other Part) may use the Joint IP for
comparative studies and other uses in other species and, excluding meat production
and processing-related uses, in dairy cattle.
	 
	 	5.3.2  	In the event that the Parties enter into a Joint Commercialization
Agreement prior to the expiration of the term of this Agreement, the Parties
respective rights and obligation with respect to the Joint IP thereafter shall be
as stated in such Agreement. In the event that

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the Parties do not enter into a Joint Commercialization Agreement prior to
the expiration of the Term of this Agreement, unless the provisions of Section
7.2 shall apply, the Joint IP shall continue to be owned jointly by MMI and The
Cargill Entities following the expiration of this Agreement with both Parties
having the right, subject to Section 8.5, to. make, use, sell, or
sublicense the Joint IP to detect the Targeted Traits in bovine animals in
respect to meat production or processing.

	 	5.3.3  	In no event shall the rights and restrictions established in this
Section 5.3 prevent either Party from performing its rights and obligations under
this Agreement.
	 
	 	5.3.4  	In order to ensure the highest trade secret protection of unpatented
Joint IP, in recognition of MMI’s research and development efforts among several
species, and in recognition of the confidential and restricted nature of the
databases licensed from Celera, subject to Section 7.8, MMI shall be entitled to
maintain complete confidentiality (on a “firewall” basis without any access by
The Cargill Entities) of the SNP primer pairs and SNP amplicon sequence and any
and all unpatented Joint IP relating to the SNP Sets. Notwithstanding anything in
this Section 5.3.4 to the contrary, The Cargill Entities, during the Term, upon
reasonable written notice of at least two weeks, and not more than six times each
year, may conduct an on-site review of the firewalled information. MMI, for cause
shown due to conflicting research efforts, may delay the on-site review for
longer than two weeks.

	5.4  	MMI Patents. All United States and foreign patent applications that pertain to any
invention that is the property of MMI shall be prepared, filed, prosecuted, and the sole
responsibility of MMI.

	5.5  	The Carqill Entities Patents. All United States and foreign patent applications which
pertain to any invention that is the property of The Cargill Entities shall be prepared,
filed, prosecuted, and the sole responsibility of The Cargill Entities.

	5.6  	Joint IP Patents. All United States and foreign patent applications that pertain to
any invention that is Joint IP shall be prepared, filed, and prosecuted by counsel to be
mutually agreed upon by the Parties at the time a decision is made to file such joint
application. The Parties presently envision a patent and trade secret strategy whereby
patents would be filed upon any associations of a trait to a specific gene, but that patents
would not be filed upon any associations of a trait to an SNP; the latter would be guarded as
a highly confidential trade secret. If the Parties cannot agree with respect to a particular
issue (e.g., whether to file, selection of counsel), such issue will be resolved pursuant to
Section 12.12 of this Agreement. With regard to Joint IP patents, subject to Section 7.2, the

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Parties will continue to consult in good faith after the termination of this
Agreement for so long as Joint IP patents are being prosecuted and maintained, or such
shorter time as mutually agreed to by the Parties in writing. The Parties shall be equally
responsible for all expenses for prosecution and maintenance of Joint IP patents (unless
mutually agreed to be otherwise by the Parties in writing).

	5.7  	Celera. Nothing in this Agreement is intended or shall be interpreted as granting to
The Cargill Entities or any Third Party any right or interest in any intellectual property,
whether licensed to MMI or not, (a) invented, discovered, developed, or otherwise created by
PE Corporation (NY), or its Affiliates, including the Celera Genomics Group, or (b) acquired
or licensed by PE Corporation (NY), or its Affiliates, including for the benefit of the
Celera Genomics Group.

	5.8  	Third-Party Infringement. If MMI believes that the license, transfer, or use of the
data and information in the Dataset (and, in turn, in any Deliverable or Joint IP), in whole
or part, infringes any patent, copyright, trademark, or other proprietary right, or if the
licensing, transfer, or use of the Dataset, or any part thereof, is, as a result, enjoined,
then MMI, in respect to data and information owned or licensed by MMI, in its sole discretion
and expense, may: (a) procure for The Cargill Entities and itself the right under such
proprietary right to the Dataset or such part thereof; or (b) replace the data or information
with other non-infringing data or information; or (c) remove the infringing data or
information, or part thereof, and make an equitable adjustment of the fees paid hereunder as
mutually agreed upon in writing; or (d) if such data and information was received from
Cetera, endeavor to cause Celera to address the situation. In respect to any such data and
information received from The Cargill Entities, The Cargill Entities shall replace the data
or information with other non-infringing data or information (and, to the extent appropriate,
agree to such extensions, additional payments, and the like so that the completion of the
Work Plan may proceed).

6 PERIOD OF EXCLUSIVITY FOR FEEDLOT TESTING

	6.1  	[***]

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7 TERM AND TERMINATION

	7.1  	Term. Unless terminated earlier as provided herein, this Agreement shall be in
full force and effect for the Term.

	7.2  	Default. If either Party commits a breach of a material term or provision of this
Agreement at any time, and has not cured such breach within thirty (30) calendar days after
written notice thereof, which notice must state the nature of the breach in reasonable
detail, from the non-breaching Party, then the non-breaching Party shall have the right to
declare the defaulting Party in breach and to terminate this Agreement effective upon written
notice thereof to the breaching Party. In the event that a claimed breach is of a nature that
cannot be cured within thirty (30) days, but may reasonably be cured within ninety (90) days,
the breaching Party (upon notice to the non-breaching Party) may extend the cure period up to
ninety (90) days, in total, provided that the breaching Party has promptly commenced (and
shall thereafter continue to pursue) efforts to effect such cure. (The payment of money or
the procurement of insurance shall never, by their respective natures, be a matter requiring
a cure of more than thirty (30) days.) Any notices under this Section 7.2 must be addressed
to the person(s) and/or office(s) identified in Section 12.9.

	 	7.2.1  	In the event this Agreement is terminated by either Party pursuant to this
Section 7.2, the defaulting Party shall automatically relinquish and forfeit all of its
rights, title and interest in and to the Joint IP, and upon such termination all of its
rights, title, and interest in and to the Joint IP shall immediately transfer to the
non-defaulting Party. Thereafter, the defaulting Party shall have no right to make,
sell, license or convey any rights in Joint IP or use the Joint IP for any purpose
whatsoever, and the non-defaulting Party shall have the sole and exclusive right to
make, use, sell or sublicense the Joint IP to detect the Targeted Traits in bovine
animals in respect to meat production or processing or for any other purpose
whatsoever, including, without limitation, the right to collaborate with other parties
to complete the activities contemplated by this Agreement.

7.2.2 In the event this Agreement is terminated by either Party pursuant to this
Section 7.2, the defaulting Party shall be liable to the non-defaulting party with
respect to all obligations arising on or prior to the default by the defaulting
Party, but shall not be liable to the non-defaulting for the non-

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performance of any obligations under this Agreement that were due after such
termination, except for a violation of Section 7.2.1. Specifically, for example:

	 	(a)  	in the event that The Cargill Entities fail to make a payment
that is due to MMI in accordance with the provisions of Section 3, MMI shall,
after providing notice and otherwise following the procedures set forth in this
Section 7.2, have the right to terminate this Agreement, in which case (i) MMI
shall become the sole owner of the Joint IP in accordance with Section 7.2.1,
and (ii) The Cargill Entities shall remain liable to MMI for the amount of the
missed payment, but shall have no further liability to MMI for any payments
that were to be made by The Cargill Entities to MMI following the date of such
termination; and
	 
	 	(b)  	in the event that MMI fails to deliver the required
Deliverable(s) to The Cargill Entities as required under the Work Plan, The
Cargill Entities shall, after providing notice and otherwise following the
procedures set forth in this Section 7.2, have the right to terminate this
Agreement, in which case (i) The Cargill Entities shall become the sole owner
of the Joint IP in accordance with Section 7.2.1, and (ii) MMI shall have no
further liability to The Cargill Entities arising from non-performance of the
remaining Parts of the Work Plan and non-delivery of the Deliverable(s) due
from MMI following the-date of such termination.

Notwithstanding anything in this Section 7.2 to the contrary, MMI’s failure to deliver any
Deliverable(s) due to either scientific impossibility or the impracticability of the effort
(e.g., the association study requiring substantially more than the “ten million
(10,000,000) genotypes” maximum set forth in the Work Plan) shall not constitute a breach
of this Agreement and the provisions of this Section 7.2 in regard to termination of this
Agreement and ownership of Joint IP shall not apply. Instead, either (1) Sections 3.3.3 and
5.3.2 or (2) Section 7.4.1 shall govern in such instance.

	7.3  	Right to Terminate Prior to Expiration of Term. Either Party shall have the right to
terminate this Agreement, with or without cause, and without further liability to the other
Party except as set forth in this Section 7.3, in accordance with the following procedures:

	 	7.3.1  	Each Party shall have the right to terminate this Agreement exercisable at
the following time by providing written notice to the other Party: following full
completion of Part 3 of the Work Plan (i.e. after delivery by MMI of the required
Deliverable(s) and after the required payment by The Cargill Entities) but before
commencement of work under Part 4 of the Work Plan. In addition, in the event only
that applicable Federal law hereafter

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prohibits The Cargill Entities from owning or controlling livestock for more
than fourteen days prior to slaughter (as, for example, set forth in Senate Bill 142
of the 107th Congress, 1st Session), The Cargill Entities may
also have the right to terminate this Agreement exercisable at either of the
following times by providing written notice to MMI: (a) following full completion of
Part 1 of the Work Plan (i.e., after delivery by MMI of the required Deliverable(s)
and after the required payment by The Cargill Entities, but before commencement of
work under Part 2 of the Work Plan) or (b) following the full completion of Part 2
of the Work Plan (i.e., after delivery by MMI of the required Deliverable(s) and
after the required payment by The Cargill Entities, but before commencement of work
under Part 3 of the Work Plan).

	 	7.3.2  	In the event that either Party terminates this Agreement pursuant to this
Section 7.3, the Party who elected to terminate this Agreement in accordance with such
Section shall automatically relinquish and forfeit all of its rights, title, and
interest in and to the Joint IP, and upon such termination all of its rights, title,
and interest in and to the Joint IP shall immediately transfer to the other Party.
Thereafter, the Party who elected to terminate shall have no right to make, sell,
license, or convey any rights in Joint IP for use the Joint IP for any purpose
whatsoever, and the other Party shall have the sole and exclusive right to make, use,
sell, or sublicense the Joint IP to detect the Targeted Traits in bovine animals in
respect to meat production or processing including the right to collaborate with other
parties to complete the activities contemplated by this Agreement.
	 
	 	7.3.3  	In the event this Agreement is terminated by either Party pursuant to this
Section 7.3, the Party who elected to terminate shall continue to be liable to the
other Party with respect to all obligations arising on or prior to the date of such
termination, but shall not be liable to the other Party for the non-performance of any
obligations under this Agreement that would otherwise have arisen after the date of
termination. Specifically, for example, in the event The Cargill Entities elect to
terminate this Agreement pursuant to this Section 7.3, (i) MMI shall become the sole
owner of the Joint IP and (ii) The Cargill Entities shall remain liable to MMI for the
amount of the missed payment, but shall have no further liability to MMI for any
payments that were to be made by The Cargill Entities to MMI following the date of
such termination by The Cargill Entities in accordance with this Section 7.3.

	7.4  	Termination Based on Recommendation of Steering Committee. If, pursuant to Section 2.1.1(d),
the Steering Committee makes a recommendation not to proceed to the next Part of the Work
Plan, the senior executives of the Parties shall meet to discuss the recommendation and the
following shall apply:

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	 	7.4.1  	In the event that both Parties agree with the recommendation of the Steering
Committee, the Parties shall execute a document indicating their decision not to
proceed with further work under the Work Plan and to jointly terminate this Agreement.
Upon a termination of this Agreement pursuant to this Section 7.4.1, neither Party
shall have any further liability to the other for future obligations under this
Agreement and the Joint IP shall continue to be jointly owned by MMI and The Cargill
Entities following such termination, with both Parties having the right to make, use,
sell or sublicense the Joint IP to detect the Targeted Traits in bovine animals in
respect to production or meat processing.
	 
	 	7.4.2  	In the event that both Parties disagree with the recommendation of the
Steering Committee, the Parties shall confirm their joint decision in writing and the
Parties shall proceed to the next Part of the Work Plan.

In the event one Party concurs with the recommendation of the Steering Committee and one does not,
the Party that concurs with the recommendation shall send written confirmation of its decision to
the other Party and such Party shall be deemed to have elected to terminate this Agreement
pursuant to Section 7.3 above, with the Parties having the rights and obligations as set forth in
Section 7.3 above.

	7.5  	Bankruptcy. Either Party may terminate this Agreement immediately upon the
occurrence of any of the following events: (a) if the other Party ceases to. do
business, or otherwise terminates its business operations; or (b) the other Party seeks
protection under any bankruptcy, receivership, trust deed, creditors arrangement,
composition, or comparable proceeding, or if any such proceeding is instituted against the
other Party. All rights granted under this Agreement are deemed to be, for purposes of §
365(n) of the United States Bankruptcy Code, rights to intellectual property as defined by §
101(56) of the United States Bankruptcy Code and the Parties will retain and may fully
exercise all of their rights under this Agreement.
	 
	7.6  	Consequences of Termination. Upon termination of this Agreement, in addition to any
provisions specifically addressed in any Section regarding terminations, the following
provisions shall survive: 4, 5, 7.6, 7.7, 10, 11, and 12. Expiration or termination of this
Agreement shall not affect any rights or obligations of either party accruing prior to such
expiration or termination.
	 
	7.7  	Remedies. The rights and remedies provided in this Section 7 shall not be exclusive
and shall be in addition to any other rights and remedies available at law or in equity.
	 
	7.8  	Escrow of Firewalled SNP Set Information. MMI shall provide a third-party escrow
agent (reasonably acceptable to The Cargill Entities and under written contract with the
Parties) with an SNP Set escrow deposit upon the completion of Part 1 and, on an ongoing
up-to-date basis upon the completion of each Part

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thereafter, such information as would be necessary for a qualified Third Party to continue
any research and development into the next part of the Work Plan and, as envisioned in
Section 8.1, to develop genomic DNA-based diagnostic products. (However, the Parties
recognize that MMI, in accordance with Section 5.7, shall not provide the escrow agent with
any confidential information owned by Cetera and not part of any MMI Technology, e.g.,
Celera’s bovine SNP maps, database, and technology to which MMI has access by virtue of its
license from Celera, but as to which MMI has no right to sublicense.) Such escrow agent (as
an agent for the Partners) shall hold such escrowed confidential information on a strict
confidentiality basis. Upon a termination of this Agreement under Sections 3.3.3, 5.3.2,
7.2.1 (in the event of an MMI breach and declaration of termination by The Cargill
Entities), 7.3 (in the event of MMI’s exercise of a right to terminate thereunder), or
7.4.1, the escrow agent (upon at least fifteen (15) days prior written notice by The
Cargill Entities to the escrow agent and to MMI) shall release such escrowed information to
The Cargill Entities. In such event, MMI may challenge by Section 12.12 any such release
(thereby delaying it). The Cargill Entities, upon receipt of any such information shall
treat it as highly confidential and maintain it as a closely guarded trade secret.

8 JOINT COMMERCIALIZATION OF PRODUCTS

	8.1  	[***]

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9 REPRESENTATIONS AND WARRANTIES AND GENERAL COVENANTS

	9.1  	Each Party represents and warrants to the other Party, upon on the date upon which this
Agreement is executed and upon the commencement of each Part of the Work Plan, that:

	 	(a)  	it is duly organized and validly existing and in good standing under the
laws of the state of its incorporation and it has the corporate power and authority
and the legal right to enter into this Agreement and to perform its obligations
hereunder;
	 
	 	(b)  	the execution and delivery of this Agreement and the performance of the
transactions contemplated hereby have been duly authorized by all necessary corporate
actions of such Party and the person executing this Agreement on behalf of each Party
has been duly authorized to do so by all requisite corporate actions;
	 
	 	(c)  	the execution and delivery of this Agreement and the performance by such Party
of any of its obligations under this Agreement do not (i) conflict with, or constitute
a breach or violation of, any other contractual obligation to which it is a Party, any
judgment of any court or governmental body applicable to such Party or its properties
or, to such Party’s knowledge, any statute, decree, order, rule or regulation of any
court or governmental agency or body applicable to such Party or its properties, and
(ii) with respect to the execution and delivery of this Agreement, require any consent
or approval of any Third Party;
	 
	 	(d)  	it is aware of no action, suit, inquiry, or investigation contemplated or
instituted by any Third Party that questions or threatens the validity of this
Agreement; and
	 
	 	(e)  	this Agreement is legally binding upon its execution and, subject to the
discretion of courts in awaiting equitable relief and to applicable bankruptcy,
reorganization, insolvency, moratorium, and similar laws, enforceable in accordance
with its terms.

	9.2  	The Cargill Entities represent and warrant that they are entitled to use and transfer to MMI
the Samples, data, and/or information for the purpose(s) set forth in this Agreement.
	 
	9.3  	Each Party shall (a) comply with all applicable laws, regulations, and guidelines in
connection with that Party’s performance of its obligations and exercise of its rights
pursuant to this Agreement, (b) maintain good standing under the laws of the jurisdiction of
is incorporation, and (c) not enter into any contractual obligation that would conflict with
or constitute a breach or violation of any material provision of this Agreement.

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10 DISCLAIMERS AND LIMITATION OF LIABILITY

	10.1  	NOTWITHSTANDING SECTION 5.8, NOTHING IN THIS AGREEMENT (EXCEPT TO THE LIMITED EXTENT SET
FORTH IN SECTION 9.2) SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY EITHER
PARTY OR ITS SUPPLIERS THAT THE USE OF ANY INFORMATION, DATA, OR OTHER MATERIALS PROVIDED
HEREUNDER WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OF ANY THIRD
PARTY. THE INFORMATION, DATA, OR OTHER MATERIALS PROVIDED BY EITHER PARTY HEREUNDER ARE
PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING THE
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NEITHER PARTY
MAKES ANY WARRANTY THAT THE DELIVERABLES DO NOT CONTAIN ERRORS OR, IF APPLICABLE, THAT ANY
ASSEMBLED ORGANISM DOES NOT CONTAIN GAPS.

	10.2  	IN NO EVENT SHALL EITHER PARTY OR THEIR AFFILIATES BE LIABLE FOR LOST PROFITS, LOSS OF USE,
LOSS OF BUSINESS, BUSINESS INTERRUPTION, LOSS OF DATA, COST OF COVER OR ANY INDIRECT,
SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES OF ANY NATURE WHATSOEVER, HOWEVER CAUSED AND
UNDER ANY THEORY OF LIABILITY WHETHER BASED IN CONTRACT, WARRANTY, TORT (INCLUDING WITHOUT
LIMITATION, NEGLIGENCE), STRICT LIABILITY, STATUTORY, OR OTHERWISE, ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

	10.3  	THE LIABILITY OF THE PARTIES, THEIR RESPECTIVE AGENTS, EMPLOYEES, SUBCONTRACTORS, AND
SUPPLIERS WITH RESPECT TO ANY AND ALL SUITS, ACTIONS, LEGAL PROCEEDINGS, CLAIMS, DEMANDS,
DAMAGES, COSTS, AND EXPENSES ARISING OUT OF THE PERFORMANCE OR NONPERFORMANCE OF ANY
OBLIGATIONS UNDER THIS AGREEMENT, WHETHER BASED ON CONTRACT, WARRANTY, TORT (INCLUDING,
WITHOUT LIMITATION, NEGLIGENCE), STRICT LIABILITY, STATUTORY, OR OTHERWISE, SHALL BE LIMITED
TO (a) DIRECT, ACTUAL DAMAGES INCURRED AS A RESULT OF ITS FAILURE TO PERFORM ITS OBLIGATIONS
AS REQUIRED BY THIS AGREEMENT, AND (b) EXCEPT IN RESPECT TO THE PAYMENTS SET FORTH IN EXHIBIT
C, SHALL NOT EXCEED IN THE AGGREGATE A SUM EQUAL TO TWO MILLION DOLLARS.

	10.4  	NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, THE PARTIES RECOGNIZE THAT ANY
JOINT TECHNOLOGY DISCOVERED, CREATED, OR DEVELOPED UNDER THIS AGREEMENT MAY BE SUBJECT TO A
THIRD PARTY’S PRIOR INTELLECTUAL PROPERTY RIGHTS.

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11 INDEMNITY

	11.1  	The Cargill Entities Indemnity. Subject to the limitations set forth in Section 10
above, The Cargill Entities shall indemnify, defend, and hold harmless MMI (including its
officers, directors, employees, and agents) from and against all personal or property losses,
liabilities, damages, and expenses (including reasonable attorneys’ fees and costs) arising
(a) out of the falsehood or inaccuracy in any material respect of any representation or
warranty or out of the breach or non-fulfillment of any material covenant or agreement of The
Cargill Entities contained herein or contemplated hereby; (b) out of the gross negligence or
intentional misconduct of The Cargill Entities in connection with the performance of The
Cargill Entities of its obligations under this Agreement; and/or (c) out of The Cargill
Entities’ use of The Cargill Entities Technology; except to the extent any such loss,
liability, damage, or expense arises from the action or inaction of MMI.

	11.2  	MMI Indemnity. Subject to the limitations set forth in Section 10 above, MMI shall
indemnify, defend, and hold harmless The Cargill Entities (including its officers, directors,
employees and agents) from and against all personal or property losses, liabilities, damages,
and expenses (including reasonable attorneys’ fees and costs) arising (a) out of the
falsehood or inaccuracy in any material respect of any representation or warranty or out of
the breach or nonfulfillment of any material covenant or agreement of MMI contained herein or
contemplated hereby or (b) out of the gross negligence or intentional misconduct of MMI in
connection with the performance of its obligations under this Agreement, and/or (c) out of
the MMI’s use of MMI Technology; except to the extent any such loss, liability, damage or
expense arises from the action or inaction of The Cargill Entities.

	11.3  	Procedure. The Indemnitee shall promptly notify the Indemnitor of any loss,
liability, damage, expense, claim, demand, action, or other proceeding in respect of which
the Indemnitee intends to claim such indemnification, and the Indemnitor shall have the right
to participate in, and, to the extent the Indemnitor so desires, jointly with any other
Indemnitor similarly noticed, to assume the defense thereof with counsel selected by the
Indemnitor and reasonably satisfactory to the Indemnitee; provided, however, that an
Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be
paid by the Indemnitee, if representation of such Indemnitee by the counsel retained by the
Indemnitor would be inappropriate due to actual or potential differing interests between such
Indemnitee and any other Party represented by such counsel in such proceedings. The indemnity
agreement in this Section 11 shall not apply to amounts paid in settlement of any loss,
liability, damage, expense, claim, demand, action, or other proceeding if such settlement
shall be effected without the consent of the Indemnitor, which consent shall not be
unreasonably withheld. The failure to deliver notice to the Indemnitor within a reasonable
time after the

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commencement of any such action, if prejudicial to its ability to defend such action,
shall relieve such Indemnitor of any liability to the Indemnitee under this Section 11 to
the extent Indemnitor is prejudiced by Indemnitee’s delay, but the omission of such notice
to the Indemnitor will not relieve it of any liability that it may have to the Indemnitee
otherwise than under this Section 11. The Indemnitor may not settle the action or otherwise
consent to an adverse judgment in such action or other proceeding that effects the rights
or interests of the Indemnitee without the express written consent of the Indemnitee. The
Indemnitee under this Section 11, and its employees and agents, shall cooperate fully with
the Indemnitor and its legal representatives in the investigation of any action, claim or
liability covered by this indemnification.

	11.4  	Insurance. Each Party shall maintain, through self-insurance or commercially placed
insurance, adequate coverage for the tort-related, non-contract-based indemnification
obligations set forth herein and shall provide competent proof of such insurance within three
(3) business days after receipt of a written request from the other Party.

12 GENERAL PROVISIONS

	12.1  	No Partnership. Nothing in this Agreement is intended or shall be deemed to
constitute partnership, agency, distributorship, employer-employee, or joint venture
relationship between The Cargill Entities and MMI. No Party shall incur any debts or make any
commitments for the other.

	12.2  	Assignments. Neither Party shall assign any of its rights or obligations hereunder
in whole or in part, except (notwithstanding anything in Section 5.3.1, Section 6.2, or
Section 8.2 to the contrary): (a) as incident to the merger, consolidation, reorganization,
or acquisition of stock or assets or a similar transaction affecting all or substantially all
of the assets or voting control of the assigning Party; or (b) to any directly or indirectly
wholly-owned subsidiary if the assigning Party remains liable and responsible for the
performance and observance of all of the subsidiary’s duties and obligations contained in
this Agreement; or (c) in any conveyance of assets that are material to the performance of
any obligation contained in this Agreement, or (d) with the consent of the other
Party, such consent not to be unreasonably withheld or delayed. Upon any such assignment, the
assigning Party, the other Party, and the permitted assignee shall enter into an appropriate
confirmatory agreement. Notwithstanding anything in this Section 12.2 to the contrary, The
Cargill Entities, if they are the assigning Party, shall give MMI reasonable advance notice
if the intended assignee has any operations in poultry, swine, or other non-bovine livestock,
whereupon appropriate “fire wall” confidentiality restrictions shall first be established
within the assignee entity. This Agreement shall be binding, upon the successors and
permitted assigns of the Parties, and the name of a Party appearing herein shall be deemed to
include the names of such Party’s successors and permitted assigns to the extent necessary to
carry out the intent

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of this Agreement. Any assignment not in accordance with the above shall be void.

	12.3  	Further Actions. The Parties agree to promptly execute, acknowledge, and deliver
such further instruments, and to do all such other acts, as may be necessary or appropriate
in order to carry out the purposes and intent of this Agreement.

	12.4  	No Trademark Rights. Except as otherwise provided herein or agreed to in advance in
writing, no right, express or implied, is granted by this Agreement to use in any manner the
trade names and trademarks “Cargill,” “Excel,” “Caprock,” “MetaMorphix,” “Celera,” “Celera
Genomics,” “PE Corporation (NY),” “Applera,” or any other trade name or trademark of a Party,
its Affiliates, or the names of any employees thereof, for any purpose other than the
Parties’ internal purposes and uses.

	12.5  	Entire Agreement of the Parties; Amendments. This Agreement, including its Exhibits,
constitutes and contains the entire understanding and agreement of the Parties and cancels
and supersedes any and all prior negotiations, correspondence, representations,
understandings, and agreements, whether verbal or written, between the Parties respecting the
subject matter hereof. In case of any discrepancies between the terms incorporated from the
Exhibits and the terms of the sections herein, the terms of the sections shall prevail. No
waiver, modification, or amendment of any provision of this Agreement (and/or the Exhibits)
shall be valid or effective unless made in writing and signed by a duly authorized
representative of each Party. The failure or delay of either Party in enforcing any of its
rights under this Agreement shall not be deemed a continuing waiver or a modification by such
Party of such right.

	12.6  	Severability. In the event any that one or more of the provisions of this Agreement
should for any reason be held by any court or authority having jurisdiction over this
Agreement. or either of the Parties to be invalid, illegal, or unenforceable, such
provision or provisions shall be validly reformed to as nearly as possible approximate the
intent of the Parties and, if unreformable, shall be divisible and deleted in such
jurisdiction; elsewhere, this Agreement shall not be affected so long as the Parties are
still able to realize the principal benefits bargained for in this Agreement.

	12.7  	Headings. The headings to this Agreement are for convenience only, and are to be of
no force or effect in construing or interpreting any of the provisions of this Agreement.

	12.8  	Governing Law., This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Delaware, without reference to the conflict of law
principles thereof and without regard to the United Nations Convention on the International
Sale of Goods.

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	12.9  	Notices and Deliveries. Any notice, request, delivery, approval, or consent
required or permitted to be given under this Agreement shall be in writing and shall be
delivered personally (against a signed receipt) or by a nationally recognized overnight
courier, costs prepaid, and shall be deemed to have been duly given when so delivered in
person, with receipt confirmed, or one (1) business day after the date of deposit with such
nationally recognized overnight courier. All such notices, requests, deliveries, approvals,
consents, or other communications shall be addressed to the respective Parties at the
addresses set forth below, or to such other address as a Party may designate to the other
Party in accordance herewith.

12.9.1 If to MMI, addressed to:

	 	 	 	 	 
	 

	 	 
	 	MetaMorphix, Inc.
	

	 	 	 	8510A Corridor Road
	

	 	 	 	Savage, Maryland 20763
	

	 	 	 	Attn: Edwin C. Quattlebaum, Ph.D., President and CEO

	 	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	

	 	 	 	Shapiro Sher & Guinot
	

	 	 	 	36 S. Charles Street, Suite 2000
	

	 	 	 	Baltimore, Maryland 21201 Attn:
	

	 	 	 	William E. Carlson, Esq.

12.9.2 If to The Cargill Entities, addressed to:

	 	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	

	 	 	 	Excel Corporation
	

	 	 	 	151 North Main Street
	

	 	 	 	Wichita, Kansas 67202 Attn:
	

	 	 	 	Ken Bull
	 
	 	 	 	 
	 	 	with a copy to:
	

	 	 	 	Cargill, Incorporated
	

	 	 	 	Law Department
	

	 	 	 	15407 McGinty Road West
	

	 	 	 	Wayzata, Minnesota 55391
	

	 	 	 	Attn: Paul B. Savereide, Ph.D., Esq.

Notices of meetings of the Steering Committee shall be given to its members at such
addresses and in such manner as may be, from time to time, requested by its members or
determined by the Committee.

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	12.10  	Counterparts. This Agreement 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 instrument.

	12.11  	Force Majeure. If the performance of any part of this Agreement by either Party, or
of any obligation under this Agreement, shall be prevented, restricted, interfered with, or
delayed by reason of any cause beyond the reasonable control of the Party liable to perform,
unless conclusive evidence to the contrary shall be provided, the Party so affected shall,
upon giving written notice to the other Party, be excused from such performance to the extent
of such prevention, restriction, interference, or delay, provided that the affected Party
shall use its commercially reasonable efforts to avoid or remove such causes of
non-performance and shall continue performance with the utmost dispatch whenever such causes
are removed. When such circumstances arise, the Parties shall discuss what, if any,
modification of the terms of this Agreement may be required in order to arrive at an
equitable solution.

	12.12  	Dispute Resolution. MMI and The Cargill Entities shall deal with each other in good
faith. In the event that a dispute arises between the Parties concerning, or in any way
relating to, this Agreement, the Parties shall undertake good faith efforts to amicably
resolve such dispute.

	 	12.12.1  	Executive Officers. In the event that the Parties are unable to resolve any
such dispute, the matter shall be referred for further review and resolution to MMI’s
Chief Executive Officer, or another designated representative of MMI, and to the
President of Excel Corporation, or another designated representative of The Cargill
Entities, who will attempt in good faith and reasonable diligence to resolve the
dispute.
	 
	 	12.12.2  	Mediation. If the dispute is not resolved within thirty (30) days after
referral under Section 12.12.1, or such other time as mutually agreed upon in writing
by the Parties, the Parties shall submit the matter to non-binding mediation to be
administered by the American Arbitration Association under its Commercial Mediation
Rules in effect at the time of mediation. The Party desiring such mediation shall
initiate it in accordance with the Commercial Mediation Rules. Upon delivery of the
mediation request, the Parties shall endeavor in good faith to select a neutral
mediator who is acceptable to each Party. If the Parties have not selected a mutually
acceptable neutral mediator within five (5) business days after delivery of the
mediation request, they shall notify the American Arbitration Association and request
the American Arbitration Association to appoint a mediator in accordance with the
Mediation Rules. Unless otherwise agreed upon by the Parties, all mediation sessions
shall be held in Chicago, Illinois as a neutral location or, if several sessions are
to be held, in alternative sessions in Denver, Colorado and in Baltimore, Maryland.
The Parties shall

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endeavor in good faith to resolve the dispute through the mediation process
contemplated by this Section and neither Party shall be entitled unilaterally to
terminate the mediation prior to thirty (30) days after the appointment of a
mediator.

	 	12.12.3  	Binding Arbitration. If the dispute is not resolved through mediation under
Section 12.12.2, the Parties shall submit the matter to binding arbitration to be
administered by the American Arbitration Association under its Commercial Rules in
effect at the time of arbitration. The Party desiring such arbitration shall initiate
it in accordance with the Commercial Arbitration Rules except as provided below. The
arbitration shall be heard and determined by a panel of three arbitrators (at least
one of which shall have considerable agribusiness experience, at least one of which
shall have considerable genomic experience, and at least one of whom shall be a
practicing lawyer or retired judge). The arbitrators shall be selected by the Parties
from a proposed list of possible arbitrators provided by the AAA in accordance with a
process determined by the AAA. The Parties shall be afforded reasonable opportunity
for discovery and the Federal Rules of Discovery shall apply. Unless otherwise agreed
upon by the Parties, all arbitration sessions shall be held in alternative sessions in
Denver, Colorado and Baltimore, Maryland. The decision of the arbitrators shall be
final and binding upon Parties. Notwithstanding anything in this Section 12.12.3 to
the contrary, such arbitration shall not proceed or be binding if there is either any
third-party claimant involved in the specific dispute proposed to be arbitrated or any
necessary third-party defendant or co-defendant.
	 
	 	12.12.4  	Injunction. Notwithstanding anything in this Section 12.12 to the contrary,
an aggrieved Party, to the extent that it may be otherwise be entitled under
applicable law governing injunctions and equitable relief, may seek and shall be
entitled to an injunction prohibiting any material breach (or other equitable relief)
in regard to Article 4 or Article 5. The Parties recognize the importance of the
confidentiality and publication provisions of Article 4 and intellectual property
provisions of Article 5 and acknowledge that an aggrieved Party could suffer
irreparable harm as a result of a material breach of such provisions.
	 
	 	12.12.5  	Confidentiality. The Parties hereby mutually agree that the existence,
terms, and content of any dispute resolution entered into pursuant to this Agreement,
as well as all information or documents relating thereto, shall be maintained in
confidence and not be given, shown, disclosed to, or discussed with any Third Party
except: (a) by prior written agreement of both Parties; (b) during any legal
proceeding to protect or secure a Party’s rights under such dispute resolution; (c)
counsel and accountants who shall agree to maintain its confidentiality;

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.

(d) to the extent required by applicable reporting requirements; and (e) upon compulsory legal
process.

IN WITNESS WHEREOF, the Parties have caused this Joint Development and Joint Marketing Agreement to
be executed by their respective duly authorized officers.

	 	 	 	 	 	 	 
	METAMORPHIX, INC.	 	CARGILL, INCORPORATED
	 
	 	 	 	 	 	 
	By:

	 	/s/ Edwin C. Quattlebaum
	 	By:
	 	/s/ B. Buckner
	 	 	 	 	 	 	 
	

	 	Quattlebaum, Ph.D.
	 	 	 	Name:
	

	 	President and CEO
	 	 	 	Title
	 
	 	 	 	 	 	 
	

	 	Date: May __, 2002
	 	 	 	Date: May 6, 2002
	 
	 	 	 	 	 	 
	 	 	 	 	EXCEL CORPORATION
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Kenneth Bull
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Date: May 6, 2002

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EXHIBIT A

DEFINITIONS

	1.  	“Affiliates” shall mean any corporation, firm, partnership, or other legal entity that,
directly or indirectly, controls, is controlled by, or is under common control with any of
the Parties. A corporation or other entity shall be regarded as in control of another
corporation or entity, if: (a) in the case of corporate entities it owns or directly or
indirectly controls more than fifty percent (50%) of the outstanding voting stock or other
ownership interest of the other corporation or entity, or if it possesses, directly or
indirectly, the power to manage, direct or cause the direction of the management and policies
of the corporation or other entity or the power to elect or appoint fifty percent (50%) or
more of the members of the governing body of the corporation or other entity; and (b) in the
case of non-corporate entities, direct or indirect ownership of at least fifty percent (50%)
interest with the power to direct the management and policies of such non-corporate entities.

	2.  	“Annotation Information” shall mean the information derived by analyzing the DNA Sequence
Information to identify features associated with the sequences, and the functional
information resulting from such analysis, including, but not limited to, homology
information, DNA sequence cluster and assembly identifiers, gene predictions, orthologs and
marker locations on chromosome maps
	 
	3.  	“Celera” shall mean PE Corporation (NY), through its Celera Genomics Group.

	4.  	“Complete Delivery” shall mean MMI’s delivery to The Cargill Entities of all of the
Deliverables set forth in the Work Plan.

	5.  	“Confidentiality Agreements” shall mean, collectively, the non-disclosure agreement executed
by The Cargill Entities and Celera and dated April 18, 2001 (and to which Celera has assigned
its rights to MMI) and the non-disclosure agreement executed by The Cargill Entities and MMI
and dated November 29, 2001.

	6.  	“Confidential Information” shall mean the existence and terms of this Agreement, the
Deliverables, Records, business information, and technical information relating to The
Cargill Entities Material, the Datasets, The Cargill Entities Technology, MMI Technology, or
other information belonging to the disclosing Party, including, where appropriate and without
limitation, any associated information, business, financial and scientific data, DNA sequence
information, annotation information, invention disclosures, patent disclosures, patent
applications, structures, models, techniques, processes, compositions, compounds, biological
samples, and the like, and bioinformatics methods, hardware configurations and software
(regardless of its stage of development), and the like.

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	7.  	“Dataset” shall mean a compilation of the information and data resulting from MMI’s
activities under the Work Plan.

	8.  	“Default” shall mean a breach or default of a material obligation of this Agreement and/or a
false representation or warranty made by either party under this Agreement.

	9.  	“Deliverable” shall mean any of the Datasets, information, reports, and other items in whole
or in part, required to be provided by MMI to The Cargill Entities under the Work Plan set
forth in Exhibit B of this Agreement.

	10.  	“DNA Sequence Information” shall mean the
respective consensus, non-redundant nucleotide
sequences for the Samples.

	11.  	“Genotype” shall mean the specific nucleic acid sequence of an individual found at a
specific location in the genome.

	12.  	“Genotyping” shall mean the analysis of nucleic acid sequence variation at a specific
location in the genome.

	13.  	“Indemnitee” shall mean the Party that intends to seek compensation or protection pursuant
to this Agreement.
	 
	14.  	“Indemnitor” shall mean the Party from whom the Indemnitee seeks compensation or protection.

	15.  	“Joint Commercialization Agreement” shall mean an agreement between the Parties regarding
the sale, exploitation, and commercialization of any products or
services relating to any trait-specific assay that, individually or in combination, detects
the Targeted Traits.

	16.  	“Joint Intellectual Property” or “Joint IP” shall mean any technology, data, information,
inventions, know-how, trade secrets, and the like, whether patentable or not, that are
conceived, identified, discovered, developed, or invented by the Parties or any of them
pursuant to any of the activities conducted pursuant to the Work Plan. Joint IP shall include
all the Deliverables described in the Work Plan, including but not limited to the Validated
SNP Set (as defined in the Work Plan), the Associated SNP Sets, the Diagnostic SNP Sets for
each of the Targeted Traits, all Datasets (subject to Section 7.8), all information contained
in any reports issued by MMI under the Work Plan, the results and data of the association
studies (subject to Section 7.8), and any trait-specific assay that individually or in
combination, detects the Targeted Traits.

	17.  	“MMI Technology” shall mean assay technology and all data, information, inventions,
know-how, technology, trade secrets and the like, whether patentable or not, that are (a)
conceived, identified, discovered, developed, or invented in

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whole or part-by or on behalf of MMI independent of The Cargill Entities and
independent of The Cargill Entities material and/or The Cargill Entities Technology,
including the Putative SNP Set and/or (b) acquired or licensed by MMI from Third
Parties.

	18.  	“Payment Schedule” shall mean the payment terms for this Agreement as set forth in
Exhibit C and all amendments thereto.

	19.  	“Publication” shall mean any information or data that The Cargill Entities seeks
to disclose electronically, in writing or verbally, or make publicly available through
any means, including, but not limited to, written document, abstract, poster, chart,
slide presentation, or article.

	20.  	“Putative SNP Set” shall mean a set of at least 100,000 putative SNPs that cover
the bovine genome. and have known, unique locations on Celera’s human genome (to which
MMI has access by a license agreement).

	21.  	“Samples” shall mean the blood samples from 3000 head of bovine animals used for
meat production or processing to be provided by The Cargill Entities under Part 2 of the
Work Plan, the blood samples from 500 head of bovine animals used for meat production or
processing to be provided by The Cargill Entities under Part 4 of the Work Plan, and
other biological material that The Cargill Entities supply to MMI. under the
Work Plan.

	22.  	“Targeted Traits” shall mean the traits of
[***].

	23.  	“Term” shall mean the period of time from the Effective Date through the later of
the date on which MMI provides Complete Delivery to The Cargill Entities-or The Cargill
Entities pays to MMI the final payment due under Section 3 (Payments) or the Agreement
is otherwise terminated as provided for in this Agreement.

	24.  	“The Cargill Entities Material” shall mean the Samples, phenotypic data, and other
information required to be or otherwise provided by The Cargill Entities to MMI under
the Work Plan.

	25.  	“The Cargill Entities Technology” shall mean all data, including bovine animals
used for meat production or processing phenotype data supplied by The Cargill Entities,
information, inventions, know-how, technology, trade secrets, and the like including the
Samples and The Cargill Entities Material, whether patentable or not, that are
conceived, identified, discovered, developed, or invented in whole or part by or on
behalf of The Cargill Entities independent of MMI.

	26.  	“Third Party” shall mean any individual, partnership, joint venture, corporation,
trust, estate, unincorporated organization, government or any department or

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agency thereof, or any other entity other than either of The Cargill Entities or
MMI or any Affiliates of the Parties.

	27.  	Work Plan” shall mean the description of the plan under which the Parties
will fulfill their obligations under this Agreement as set out in Exhibit B, and any
amendments thereto.

31exv10w22

 

Exhibit 10.22

CROSS-LICENSE AGREEMENT

     This Agreement (the “Agreement”) is entered into as of October 14, 2002 (the “Execution
Date”) by and between Wyeth (formerly, American Home Products Corporation) by and through Genetics
Institute, L.L.C. (formerly Genetics Institute, Inc.), a Delaware limited liability company with a
business address at 87 CambridgePark Drive, Cambridge, Massachusetts 02140 (“GI”) and MetaMorphix,
Inc., a Delaware corporation with a business address at 8510A Corridor Road, Savage, Maryland
20763 (“MetaMorphix”). GI and MetaMorphix may each be referred to herein individually as a “Party”
and collectively as the “Parties”.

     WHEREAS, as of December 1, 1994, GI, MetaMorphix and The Johns Hopkins University (“JHU”)
entered into that certain Collaboration Agreement (the “1994 Agreement”) relating to the
discovery, characterization, and development of factors in the TGF-b Superfamily (referred to by
GI as “BMPs” and by MetaMorphix and JHU as
“GDFs,” as such terms are more fully defined
in that Agreement);

     WHEREAS, as of January 26, 1999, the Parties and JHU entered into that certain Amended and
Restated Collaboration Agreement (as subsequently amended by the Sponsored Research Amendments (as
defined below), the “1999 Agreement”) relating to the discovery, characterization, and development
of factors in the TGF-b Superfamily (referred to by GI as “BMPs” and by MetaMorphix and JHU as
“GDFs,” as such terms are more fully defined in that Agreement), which agreement supercedes and
replaces the 1994 Agreement;

     WHEREAS, effective as of January 1, 2001, the Parties and JHU executed and delivered
that certain First Amendment to 1999 Amended and Restated Collaboration Agreement and, effective
as of June 30, 2002, the Parties and JHU executed and delivered that certain Second Amendment to
1999 Amended and Restated Collaboration Agreement (collectively, the “Sponsored Research
Amendments”) each relating to Additional Sponsored Research at JHU focused solely upon MetaMorphix
Factor GDF-8; and

     WHEREAS, the Parties desire to disclose and share freely with each other Confidential
Information regarding MetaMorphix Factor GDF-8 and to expand the present cross licenses (granted
under the 1999 Agreement) between the Parties in respect, only, to MetaMorphix Factor GDF-8 and
all internal and external research related to such Factor, including, but not limited to, the June
1, 1998 — December 31, 2000 Sponsored Research at JHU in accordance with Section 3.3 of the 1999
Agreement and the post January 1, 2001 Additional Sponsored Research in accordance with the
Sponsored Research Amendments.

     NOW THEREFORE, in consideration of the foregoing premises, the mutual covenants, agreements,
representations, and warranties set forth herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged

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by each of the Parties, the Parties hereby covenant, agree, represent, and warrant as
follows:

	1.  	DEFINITIONS.

	 	1.1  	Existing Definitions. Unless expressly defined herein, all capitalized terms
used in this Agreement shall have the meanings assigned to such terms in the 1999
Agreement and are incorporated herein by reference. For the sake of clarity, where a
capitalized term is defined in both this Agreement and in the 1999 Agreement, the
definition set forth in this Agreement shall control with respect to the use of such
term in this Agreement, and the definition set forth in the 1999 Agreement shall
control with respect to the use of such term in the 1999 Agreement.
	 
	 	1.2  	Additional Definitions. Solely for purposes of this Agreement (it being
understood and agreed that nothing in this Section 1.2 shall be deemed to be an
amendment of any provision in the 1999 Agreement), the following
capitalized terms shall have the respective meanings assigned thereto in
this Section 1.2:
	 
	 	1.2.1  	“Control” or “Controlled” shall mean with respect to any (i) item of
information, including, without limitation, any GDF-8 KnowHow, or (ii) intellectual
property right, the possession (whether by purchase, assignment or license) by a
Party of the ability to grant to the other Party access and/or a license as provided
herein under such item or right without violating the terms of any agreement or other
arrangements with any Third Party.
	 
	 	1.2.2  	“Effective Date” shall mean the next business day following the last to
occur of: (i) the delivery to each Party of fully executed counterparts of this
Agreement, (ii) a determination made by GI that a notification of this Agreement is
not required to be made under the HSR Act, and (iii) if notification of this
Agreement is required to be made under the HSR Act, the expiration or earlier
termination of any notice and waiting period under the HSR Act.
	 
	 	1.2.3  	“Excluded Product” shall mean any GI Excluded Product or any MetaMorphix
Excluded Product.
	 
	 	1.2.4  	“GDF-8” shall mean the TGF-(b Factor known as GDF-8 which Factor is
designated under the 1999 Agreement as a “MetaMorphix Factor”.
	 
	 	1.2.5  	“GDF-8 Derivative Product” shall mean any
pharmaceutical product which
primarily acts as

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	 	(i)  	an antagonist or agonist of GDF-8 or the GDF-8 receptor,
	 
	 	(ii)  	a vaccine against GDF-8,
	 
	 	(iii)  	a modifier of GDF-8 synthesis, or
	 
	 	(iv)  	a modulator of the GDF-8 signal transduction pathway,

only to the extent that such pharmaceutical product is both (a) developed or sold for the purposes
of modulating the effects of GDF-8, and (b) is covered by one or more Valid Claims included within
the applicable GDF-8 Patent Rights licensed under Section 2.1 or Section 2.2 hereof.

	 	1.2.6  	“GDF-8 Know-How” shall mean any unpatented information specifically relating to GDF-8
produced or otherwise Controlled by either Party which is reasonably useful, necessary or
required for the other Party and its Affiliates to manufacture, use and/or sell GDF-8
Licensed Products for use in the MetaMorphix Field or the GI Field, as applicable, under this
Agreement.
	 
	 	1.2.7  	“GDF-8 Licensed Product” shall mean any GDF-8 Product or GDF-8 Derivative Product, in each
case, other than (i) with respect to the rights granted to GI hereunder, any MetaMorphix
Excluded Product or (ii) with respect to the rights granted to MetaMorphix hereunder, any GI
Excluded Product.
	 
	 	1.2.8  	“GDF-8 Patent Rights” shall mean, with respect to GDF-8, any GDF-8 Product, or any GDF-8
Derivative Product (a) all Patents covering inventions (as such term is defined under United
States Patent Law) which (i) as of the Effective Date are Controlled by or during the term of
this Agreement come into the Control of either Party, either alone or jointly (including,
without limitation, jointly with JHU pursuant to the 1994 Agreement or the 1999 Agreement)
and (ii) are reasonably useful, necessary or required for the other Party and its Affiliates
to manufacture, use and/or sell GDF-8 Licensed Products for use in the MetaMorphix Field or
the GI Field, as applicable, and (b) all Patents coming into the Control of a Party during
the term of this Agreement, which, but for the inclusion of such acquired Patents under this
clause (b), would prevent the other Party and its Affiliates from practicing under one or
more of the Patents included under clause (a) above.

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	 	1.2.9  	“GDF-8 Product” shall mean GDF-8, including any and all

	 	(i)  	formulations, mixtures or compositions of GDF-8,
	 
	 	(ii)  	antibodies targeted against GDF-8,
	 
	 	(iii)  	receptors for which GDF-8 is a ligand,
	 
	 	(iv)  	antisense molecules or ribozymes that modulate the in vivo
production of GDF-8, and
	 
	 	(v)  	other products for research, diagnostic or therapeutic use containing GDF-8
or any of (i) through (iv) above,

which, or which the manufacture use or sale of which, is covered by one or more Valid
Claims included within the applicable GDF-8 Patent Rights licensed under Section 2.1 or
Section 2.2 hereof.

	 	1.2.10  	“GI Excluded Product” shall mean any GDF-8 Product or any GDF-8 Derivative Product which GI
selects pursuant to Section 3.3 hereof. A list of those GI Excluded Products that have been
selected by GI as of the Effective Date is attached hereto as Exhibit 1.2.10.
	 
	 	1.2.11  	“GI GDF-8 Know-How” shall mean that GDF-8 Know-How, other than the Joint GDF-8 Know-How,
which is Controlled by GI or its Affiliates as of the Effective Date or comes into the Control
of GI or its Affiliates during the term of this Agreement, in each case other than through the
grant of licenses by MetaMorphix under this Agreement or the 1999 Agreement.
	 
	 	1.2.12  	“GI GDF-8 Patent Rights” shall mean those GDF-8 Patent Rights, other than the Joint GDF-8
Patent Rights, which are Controlled by GI or its Affiliates as of the Effective Date or come
into the Control of GI or its Affiliates during the term of this Agreement, in each case other
than through the grant of licenses by MetaMorphix under this Agreement or the 1999 Agreement.
Without limitation of the foregoing, a list of those GI GDF-8 Patent Rights believed to be
existing as of the Effective Date is attached hereto as Exhibit 1.2.12, provided, however,
that inclusion of any particular Patent on Exhibit 1.2.12 shall not serve as an admission by
either Party or evidence that such Patent was not included in the rights licensed by GI to
MetaMorphix under the 1999 Agreement.

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	 	1.2.13  	“GI GDF-8 Technology” shall mean the GI GDF-8 Know-How, the GI GDF-8 Patent Rights
and GI’s interest in each of the Joint GDF-8 Know-How and the Joint GDF-8 Patent Rights.
	 
	 	1.2.14  	“HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
and the rules and regulations promulgated thereunder.
	 
	 	1.2.15  	“Joint GDF-8 Know-How” shall mean that GDF-8 Know-How, which (a) as of the Effective Date
is Controlled by both (i) GI or its Affiliates and (ii) MetaMorphix or its Affiliates or (b)
during the term of this Agreement, comes into the Control of both (i) GI or its Affiliates
and (ii) MetaMorphix or its Affiliates, in each case other than through the grant of
licenses by one Party to the other Party under this Agreement or the 1999 Agreement.
	 
	 	1.2.15  	“Joint GDF-8 Patent Rights” shall mean those GDF-8 Patent Rights, which (a) as of the
Effective Date is Controlled by both (i) GI or its Affiliates and (ii) MetaMorphix or its
Affiliates or (b) during the term of this Agreement, come into the Control of both (i) GI or
its Affiliates and (ii) MetaMorphix or its Affiliates, in each case other than through the
grant of licenses by one Party to the other Party under this Agreement or the 1999
Agreement. A list of those Joint GDF-8 Patent Rights existing as of the Effective Date is
attached hereto as Exhibit 1.2.15.
	 
	 	1.2.16  	“MetaMorphix Excluded. Product” shall mean any GDF-8 Product or any GDF-8 Derivative
Product which MetaMorphix selects pursuant to Section 3.3 hereof. A list of those
MetaMorphix Excluded Products that have been selected by MetaMorphix as of the Effective
Date is attached hereto as Exhibit 1.2.16
	 
	 	1.2.17  	“MetaMorphix GDF-8 Know-How” shall mean that GDF-8 Know-How, other than the Joint GDF-8
Know-How, which is Controlled by MetaMorphix or its Affiliates as of the Effective Date or
comes into the Control of MetaMorphix or its Affiliates during the term of this Agreement,
in each case other than through the grant of licenses by GI under this Agreement or the 1999
Agreement.
	 
	 	1.2.18  	“MetaMorphix GDF-8 Patent Rights” shall mean those GDF-8 Patent Rights, other than the Joint
GDF-8 Patent Rights, which are Controlled by MetaMorphix or its
Affiliates as of the Effective Date or come into the Control of MetaMorphix or its Affiliates during the term of this
Agreement, in each case other than through

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the grant of licenses by GI under this Agreement or the 1999 Agreement.
Without limitation of the foregoing, a list of those MetaMorphix GDF-8 Patent
Rights believed to be existing as of the Effective Date is attached hereto as
Exhibit 1.2.18, provided, however, that inclusion of any particular Patent on
Exhibit 1.2.18 shall not serve as an admission by either Party or evidence that
such Patent was not included in the rights licensed by MetaMorphix to GI under the
1999 Agreement.

	 	1.2.19  	“MetaMorphix GDF-8 Technology” shall mean the MetaMorphix GDF-8 Know-How, the
MetaMorphix GDF-8 Patent Rights and MetaMorphix’s interest in each of the Joint GDF-8
Know-How and the Joint GDF-8 Patent Rights.
	 
	 	1.2.20  	“Product Development” with respect to the activities conducted by or on behalf of a
Party, shall mean any and all activities performed, by or on behalf of such Party, in
connection with the development of any GDF-8 Product or GDF-8 Derivative Product from
the date on which such Party has formally determined (in such fashion as such
determinations are customarily made with in such Party’s organization) to undertake
those preclinical activities necessary to support the filing of an IND (in the case
of GI) or an INAD (in the case of MetaMorphix) until Regulatory Approval of such
GDF-8 Product or GDF-8 Derivative Product is obtained for the indication under study,
including, without limitation, animal toxicology studies, formulation research and
development, manufacturing research and development and clinical studies. When used
as a verb in such context, “Develop” shall mean to engage in Product Development.

	2.  	LICENSES AND OPTIONS.

	 	2.1  	Licenses Granted to GI. To the extent not granted to GI under the 1999
Agreement, and subject to (i) the terms and conditions of this Agreement, (ii) the
reservation of rights set forth in Section 6.6 of the 1999 Agreement and (iii) any
rights retained by the United States government in accordance with P.L. 96-517, as
amended by P.L. 98-620, MetaMorphix hereby grants to GI and its designated Affiliates
which agree in writing to comply with the terms and conditions of
this Agreement (with a copy of such written agreement being provided to
MetaMorphix) an exclusive, royalty-bearing license under the MetaMorphix GDF-8
Technology, including the right to grant sublicenses, (i) to make, have made, use,
import, market, offer for sale and sell GDF-8 Licensed Products in the Territory, in
each case only for use solely in the GI Field and (ii) to make, have made and use
GDF-8 Licensed Products and MetaMorphix Excluded Products for GI’s and/or its
designated

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Affiliates’ internal research and development purposes (provided, however, that no
MetaMorphix Excluded Product may be the subject of a GI animal or clinical study without
the express prior written consent of MetaMorphix, which may be withheld in its sole
discretion). The license granted pursuant to this Section 2.1 shall continue in effect
until the expiration of the last of the GDF-8 Patent Rights containing a Valid Claim
licensed to GI under this Section 2.1, provided, however, that thereafter, GI shall have a
fully-paid, royalty free, perpetual, irrevocable non-exclusive license to use the
MetaMorphix GDF-8 Know-How for any and all research, development and commercialization
purposes.

	 	2.2  	Licenses Granted to MetaMorphix. To the extent not granted to MetaMorphix under the 1999
Agreement, and subject to (i) the terms and conditions of this Agreement, (ii) the
reservation of rights set forth in Section 6.6 of the 1999 Agreement and (iii) any rights
retained by the United States government in accordance with P.L. 96-517, as amended by P.L.
98-620, GI hereby grants to MetaMorphix and its designated Affiliates which agree in writing
to comply with the terms and conditions of this Agreement (with a copy of such written
agreement being provided to GI) an exclusive (exclusive, even as to GI), royalty-bearing
license under the GI GDF-8 Technology, including the right to grant sublicenses, (i) to make,
have made, use, import, market, offer for sale and sell GDF-8 Licensed Products in the
Territory, in each case only for use solely in the MetaMorphix Field and (ii) to make, have
made and use GDF-8 Licensed Products and GI Excluded Products for MetaMorphix’s and/or its
designated Affiliates’ internal research and development purposes (provided, however, that no
GI Excluded Product may be the subject of a MetaMorphix animal or clinical study without the
express prior written consent of GI, which may be withheld in its sole discretion). The
license granted pursuant to this Section 2.2 shall continue in effect until the expiration of
the last of the GDF-8 Patent Rights containing a Valid Claim licensed to MetaMorphix under
this Section 2.1, provided, however, that thereafter, MetaMorphix shall have a fully-paid,
royalty free, perpetual, irrevocable non-exclusive license to use the GI GDF8 Know-How for
any and all research, development and commercialization purposes.
	 
	 	2.3  	Option for Certain Excluded Products. In the event that either GI or MetaMorphix develops or
otherwise acquires rights to any Excluded Product and such Party determines, in its sole
reasonable business judgment, that the inclusion by it of such Excluded Product within the
license granted under Section 2.1 or Section 2.2, as the case may be, would not interfere
with its product development and/or commercialization of such Excluded Product, such Party
(the “Offering Party”) agrees to extend to the other Party, by written notice, the
opportunity to negotiate a royalty-bearing license to such Excluded Product, which license
would (a) be restricted to the GI Field or the

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MetaMorphix Field, as applicable, (b) provide for such royalties, reports, and
records as are set forth in Section 4 herein (and otherwise incorporate the provisions of
Sections 9, 10, and 11), and (c) may provide for reasonable parameters for clinical
testing, regulatory approaches, and labeling requirements. Within thirty (30) days of
receiving such notice, such other Party may elect to negotiate such an agreement (which
shall become an amendment of this Agreement) by providing the Offering Party written
notice of such election, in which event the Parties would promptly commence good faith
negotiations of the license terms (as provided in this Section 2.3). If MetaMorphix and GI
are unable to agree on the terms and conditions of such a license within ninety (90) days
after the Offering Party receives such notice from the other Party, the Offering Party
shall thereafter not be free to grant such rights and licenses to any Third Party. This
Section 2.3 is intended to amend and replace Section 6.9 of the 1999 Agreement with
respect to the rights and obligations conferred upon GI and MetaMorphix thereunder and, as
such, this Section 2.3 shall govern and control with respect to both this Agreement and
the 1999 Agreement.

	 	2.4  	Rights Licensed from Third Parties. In the event that the license to MetaMorphix or GI
under Sections 2.1 or 2.2 includes rights acquired by the licensor Party from a Third Party
(other than from JHU pursuant to the 1999 Agreement) which involve the payment of royalties,
fees or other payments to such Third Party, the licensor Party shall notify the licensee
Party of the obligation to make such payment(s). The licensee Party promptly shall elect in
writing whether to exclude such Third Party rights from the licenses granted to it under this
Agreement, and if the licensee Party fails to exclude such rights, it shall be fully
responsible for the payment of any such royalties, fees and other payments to such Third
Party as a result of its practice of the licenses granted to it hereunder.

	 	2.5  	Noncompete.

	 	2.5.1  	By MetaMorphix. MetaMorphix and GI agree that, for so long as the
licenses granted to GI, under Section 2.1, with respect to the Product Development
and commercialization of GDF-8 Licensed Products, remain in effect, MetaMorphix will
not sell or otherwise distribute any GDF-8 Product or GDF-8 Derivative Product for
use in the GI Field. The preceding sentence shall not apply to any products that
MetaMorphix obtains, other than through the grant of rights under the 1999
Agreement, from a Third Party who has developed (or obtained from another Third
Party who has developed) such products without infringing issued patents of GI
included within the GI GDF-8 Patent Rights under this Agreement, which products were
fully developed by or on behalf of such Third Party without the use of any of the GI
GDF-8 Know-How or any Confidential Information of GI. GI’s right to enforce this
Section 2.5.1 shall not

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be assignable, except to its Affiliates. This Section 2.5.1 is not
intended as an amendment of Section 6.8.1 of the 1999 Agreement but, rather,
confers rights and obligations in addition to those set forth in Section 6.8.1 of
the 1999 Agreement.

	 	2.5.2  	By GI. GI and MetaMorphix agree that, for so long as the licenses granted
to MetaMorphix, under Section 2.2, with respect to the Product Development and
commercialization of GDF-8 Licensed Products, remain in effect, GI will not sell or
otherwise distribute any GDF-8 Product or GDF-8 Derivative Product for use in the
MetaMorphix Field. The preceding sentence shall not apply to any products that GI
obtains, other than through the grant of rights under the 1999 Agreement, from a
Third Party who has developed (or obtained from another Third Party who has
developed) such products without infringing issued patents included within the
MetaMorphix GDF-8 Patent Rights under this Agreement, which products were fully
developed by or on behalf of such Third Party without the use of any of the
MetaMorphix Know-How or any Confidential Information of MetaMorphix. MetaMorphix’s
right to enforce this Section 2.5.2 shall not be assignable, except to its
Affiliates. This Section 2.5.2 is not intended as an amendment of Section 6.8.2 of
the 1999 Agreement but, rather, confers rights and obligations in addition to those
set forth in Section 6.8.2 of the 1999 Agreement.

	 	2.6  	HSR Filing and Approvals.

	 	2.6.1  	HSR Filing. As soon as practicable (consistent with each Party’s
procedures for doing so, each of Wyeth and MetaMorphix shall determine, in its
respective reasonable judgment, whether any filings are required under the HSR Act
and shall notify the other Party of the determination so made. In the event either
Party determines that such filings should be made, each of MetaMorphix and GI shall
file, as soon as practicable thereafter, with the Federal Trade Commission (the
“FTC”) and the Antitrust Division of the United States Department of Justice (the
“Antitrust Division”) the notification and report form (the “Report”) required under
the HSR Act with respect to the transactions as contemplated hereby and shall
reasonably cooperate with the other Party to the extent necessary to assist the other
Party in the preparation of its Report and to proceed to obtain necessary approvals
under the HSR Act, including but not limited to the expiration or earlier termination
of any and all applicable waiting periods required by the HSR Act. The Parties shall
share equally in any fees required to be paid to any governmental agency in
connection with making such filings and each Party shall bear its own expenses,
including, without

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limitation, legal fees, incurred in connection with preparing such
filings.

	 	2.6.2  	MetaMorphix’ and GI’s Obligations. Each of MetaMorphix
and GI shall use its good faith efforts to eliminate any concern on the part
of any court or government authority regarding the legality of the proposed
transaction, including, if required by federal or state antitrust
authorities, promptly taking all steps to secure government antitrust
clearance, including, without limitation, cooperating in good faith with any
government investigation including the prompt production of documents and
information demanded by a second request for documents and of witnesses if
requested.
	 
	 	2.6.3  	Additional Approvals. MetaMorphix and GI will cooperate
and use respectively all reasonable efforts to make all other registrations,
filings and applications, to give all notices and to obtain as soon as
practicable all governmental or other consents, transfers, approvals, orders,
qualifications authorizations, permits and waivers, if any, and to do all
other things necessary or desirable for the consummation of the transactions
as contemplated hereby. Neither Party shall be required, however, to divest
products or assets or materially change its business if doing so is a
condition of obtaining approval under the HSR Act or other governmental
approvals of the transactions contemplated by this Agreement.

	3.  	INFORMATION DISCLOSURE; EXCLUDED PRODUCTS.

	 	3.1  	Research Management Committee. Within thirty (30) days of the Effective
Date, the Parties shall reestablish a Research Management Committee (“RMC”) consisting
of an equal number of between two (2) and four (4) representatives of each Party. The
sole functions of the RMC shall be to facilitate the exchange of ideas and information
by GI and MetaMorphix under this Agreement. The RMC shall have no right to amend any
provision of this Agreement. The RMC shall meet at least once during each calendar
half-year (or more or less often as a majority of the members of the RMC may agree)
during the term of this Agreement. Meetings of the RMC shall alternate between GI and
MetaMorphix locations, provided that such meetings may also be held telephonically or
by videoconference as determined by the members of the RMC.
	 
	 	3.2  	Information Disclosure. Each of GI and MetaMorphix shall use its
Commercially Reasonable Efforts to disclose, via exchange of information at

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meetings of the RMC and provision of reports (if and as available), to the other
Party, a summary of those GDF-8 Patent Rights and GDF-8 Know-How that has come into such
Party’s Control and has not been previously disclosed to the other Party. Upon important
discoveries or advances being made, such Party shall endeavor to disclose such new
information prior to the next meeting of the RMC. Notwithstanding the foregoing, it shall
not be a breach of this Agreement, if a Party has used its good faith Commercially
Reasonable Efforts to disclose such GDF-8 Know-How but has failed to disclose all such
GDF-8 Know-How to the other Party (provided that, upon request by the receiving Party or
awareness of the disclosing Party, such undisclosed information is then promptly
disclosed). From time to time, upon request, a disclosing Party shall endeavor, but not be
obligated to provide the receiving Party with sample quantities of proteins and other
materials to assist the receiving Party in its assessment of the disclosed Confidential
Information. Any GDF-8 Know-How disclosed or materials provided by a Party pursuant to
this Section 3.2 or otherwise to the other Party shall be treated as Confidential
Information of the disclosing Party in accordance with Article 7 hereof.

	 	3.3  	Excluded Products. From time to time, each Party may, in good faith and by written notice
to the other Party, designate certain GDF-8 Products and GDF-8 Derivative Products (other
than, (i) in the case of GI making a designation, GDF-8 Products or GDF-8 Derivative Products
consisting of compounds or compositions where such compounds or compositions are Controlled
by MetaMorphix and are initially provided to GI by MetaMorphix under this Agreement or the
1999 Agreement and (ii) in the case of MetaMorphix making a designation, GDF-8 Products or
GDF-8 Derivative Products consisting of compounds or compositions where such compounds or
compositions are Controlled by GI and are initially provided to MetaMorphix by GI under this
Agreement or the 1999 Agreement), as either GI Excluded Products or MetaMorphix Excluded
Products, as applicable. Such notice shall detail the rationale for such designation. A Party
may designate a GDF-8 Product or a GDF-8 Derivative Product as either a GI Excluded Product
or a MetaMorphix Excluded Product only if such Party (upon successful, in vivo, proof of
concept) has initiated Product Development of such GDF-8 Product or GDF-8 Derivative Product,
provided, however, that upon designating any GDF-8 Product or GDF-8 Derivative
Product as an Excluded Product, the designating Party may also designate as Excluded
Products, a reasonable number of other GDF-8 Products or GDF-8 Derivative Products (as the
case may be), which GDF-8 Products or GDF-8 Derivative Products not only are in the same
chemical class or biological class as the GDF-8 Product or GDF- Derivative Product primarily
selected as an Excluded Product, but also are intended be back-up candidates (to the extent
customary in the pharmaceutical industry) for the primarily selected Excluded Product. For
the sake of clarity, a Party may not designate a broad category of GDF-8 Products or GDF-8
Derivative

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Products (e.g., all antibodies, or all compounds of a particular chemical
class, or a biological class) as Excluded Products, merely because such Party has
initiated Product Development of a GDF-8 Product or a GDF-8 Derivative Product
within such category. A designated Excluded Product shall be only an active
ingredient or a single molecule. Except to the extent provided otherwise in
Section 2.4 above, during the term of this Agreement, MetaMorphix shall not
develop or commercialize any GI Excluded Product in the MetaMorphix Field and GI
shall not develop or commercialize any MetaMorphix Excluded Product in the GI
Field.

	4.  	ROYALTIES.

	 	4.1  	Payable by GI. GI shall pay to MetaMorphix, on a country by country basis,
a royalty in the amount of two percent (2%) of the Net Sales of each GDF-8 Licensed
Product sold in such country by or on behalf of GI, its Affiliates or sublicensees
(other than MetaMorphix) pursuant to the licenses granted by MetaMorphix to GI
hereunder. Such royalties shall be payable, on a country by country basis, for so
long as the manufacture, use or sale of such GDF-8 Licensed Product in such country
would, but for the licenses granted by MetaMorphix to GI hereunder, infringe a Valid
Claim of a patent included within the MetaMorphix GDF-8 Patent Rights or the Joint
GDF-8 Patent Rights licensed by MetaMorphix to GI hereunder and shall be incremental
to any royalty payable under the 1999 Agreement, provided, however, that the grant of
rights under this Agreement shall not serve to extend the period of time during which
royalties are payable under the 1999 Agreement.
	 
	 	4.2  	Payable by MetaMorphix. MetaMorphix shall pay to GI, on a country by country
basis, a royalty in the amount of two percent (2%) of the Net Sales of each GDF-8
Licensed Product sold in such country by or on behalf of MetaMorphix, its Affiliates
or sublicensees (other than GI) pursuant to the licenses granted by GI to MetaMorphix
hereunder. Such royalties shall be payable, on a country by country basis, for so
long as the manufacture, use or sale of such GDF-8 Licensed Product in such country
would, but for the licenses granted by GI to MetaMorphix hereunder, infringe a Valid
Claim of a patent included within the GI GDF-8 Patent Rights or the Joint GDF-8
Patent Rights licensed by GI to MetaMorphix hereunder and shall be incremental to any
royalty payable under the 1999 Agreement, provided, however, that the grant of rights
under this Agreement shall not serve to extend the period of time during which
royalties are payable under the 1999 Agreement.

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	 	4.3  	Royalty Calculations.

	 	4.3.1  	Country-by-Country Basis. For each GDF-8 Licensed Product, royalties shall
be payable by a Party on a country-by-country basis solely with respect to Net Sales
for any country where such GDF-8 Licensed Product is manufactured or sold in which
there is a Valid Claim under the applicable GDF-8 Patent Rights. However, for sales
of a GDF-8 Licensed Product which is manufactured in a country in which there is a
Valid Claim under the applicable GDF-8 Patent Rights, but sold in a country where
there is no existing Valid Claim under the applicable GDF-8 Patent Rights, the
royalties payable hereunder by the Parties for sales in that country shall be reduced
by fifty percent (50%) if products are being sold in that country which directly
compete with such GDF-8 Licensed Product.
	 
	 	4.3.2  	Advanced Products. For GDF-8 Licensed Products which are not finished
formulations, mixtures or compositions of GDF-8 (that is, for GDF-8 Licensed Products
which could not have been developed by a Party but for the application of substantial
advanced technologies developed by that Party (including, without limitation, GDF-8
Licensed Products which are antibodies, antisense molecules or ribozymes to, GDF-8),
the royalty payable hereunder by that developing Party on Net Sales of that GDF-8
Licensed Product shall be reduced to reflect the fair market value contribution of
that advanced technology to the GDF-8 Licensed Product, as determined by mutual
agreement of the Parties. In the event that the Parties are unable to calculate or
agree upon the fair market value contribution of the advanced technology to the GDF-8
Licensed Product, then the royalty payable by the developing Party on Net Sales of
that GDF-8 Licensed Product shall be reduced by fifty percent (50%).
	 
	 	4.3.3  	Third Party Royalties. If it becomes necessary, in order for a
Party or its Affiliates or sublicensees to make, use or sell any GDF-8 Licensed
Product, to pay royalties under a Third Party’s patent rights (including amounts, if
any, payable to Third Parties under Section 2.4, above; and with respect to
MetaMorphix, excluding amount payable by MetaMorphix to GI under this Agreement or to
JHU and/or GI under the 1999 Agreement; and with respect to GI, excluding amount
payable by GI to MetaMorphix under this Agreement or to MetaMorphix and/or JHU under
the 1999 Agreement), then the licensee Party shall have the right to deduct fifty
percent (50%) of the amounts so paid to Third Parties up to a total of fifty percent
(50%) of the amount due hereunder to the licensor Party on account of such particular
GDF-8 Licensed Product.

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	 	4.3.4  	Limitation on Royalty Deductions. Total royalty deductions under this Section
4.3 shall not exceed fifty percent (50%) of the amount due the licensor Party on
account of Net Sales of the GDF-8 Licensed Product, for which royalty payments are
owed.

	 	4.4  	Reports and Payment. Each Party shall deliver to the Party to which royalties are owed
hereunder, within sixty (60) days after the end of each calendar quarter, a written report
showing its computation of royalties due under this Agreement upon Net Sales by such Party,
its Affiliates and sublicensees during such calendar quarter. All Net Sales shall be
segmented in each such report according to sales by such Party, each Affiliate and each
sublicensee, as well as on a country-by-country basis, including the rates of exchange used
to convert such royalties to United States Dollars from the currency in which such sales were
made. Subject to the provisions of Sections 4.5 and 4.6 of this Agreement, simultaneously
with the delivery of each such report, the paying Party shall tender payment in United States
Dollars of all royalties shown to be due therein. Such reports may be combined with any
report to be submitted by such Party to the other Party pursuant to the 1999 Agreement,
provided, that such combined report separately states the amounts payable under the 1999
Agreement and the amounts payable under this Agreement. For purposes hereof, the rates of
exchange to be used for converting royalties hereunder to United States Dollars shall be the
closing price published for the purchase of United States Dollars in the East Coast Edition
of the Wall Street Journal for the last business day of the calendar quarter for which
payment is due.
	 
	 	4.5  	Foreign Royalties. Where royalties are due hereunder for sales of GDF-8 Licensed Products in
a country where, by reason of currency regulations or taxes of any kind, it is impossible or
illegal for such Party, any Affiliate or sublicensee to transfer royalty payments to the
licensor Party for Net Sales in that country, such royalties shall be deposited in whatever
currency is allowable by the person or entity not able to make the transfer for the benefit
or credit of the licensor Party in an accredited bank in that country that is reasonably
acceptable to the licensor Party.
	 
	 	4.6  	Taxes. Any and all income or similar taxes imposed or levied on account of the receipt of
royalties payable under this Agreement which are required to be withheld by a Party shall be
paid by such Party, its Affiliates or sublicensees on behalf of the licensor Party and shall
be paid to the proper taxing authority. Proof of payment shall be secured and sent to the
licensor Party by such Party, its Affiliates or sublicensees as evidence of such payment in
such form as required by the tax authorities having jurisdiction over such Party, its
Affiliates or sublicensees. Such taxes shall be deducted from the royalty that would otherwise
be remittable hereunder by the Party, its Affiliates or sublicensees.

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	 	4.7  	Records. Each Party shall keep, and shall require all Affiliates and
sublicensees to keep, for a period of at least two (2) years, full, true and accurate
books of accounts and other records containing all information and data which may be
necessary to ascertain and verify the royalties payable by such Party hereunder.
During the term of this Agreement and for a period of two (2) years following its
termination, each Party shall have the right from time to time (not to exceed once
during each calendar year) to inspect in confidence, or have an agent, accountant or
other representative inspect in confidence, such books, records and supporting data.

	5.  	PRODUCT DEVELOPMENT AND COMMERCIALIZATION.

	 	5.1  	Diligence Obligations. GI and MetaMorphix each shall have no diligence
obligations with respect to the Product Development or commercialization of any GDF-8
Licensed Product over and above those set forth in the 1999 Agreement.

	6.  	PATENT PROSECUTION AND INFRINGEMENT.

	 	6.1  	Responsibility for Patenting GDF-8 Patent Rights.
	 
	 	6.1.1  	GI GDF-8 Patent Rights and Certain Joint GDF-8 Patent
Rights. Subject to the rights and obligations of each of the Parties and JHU
under the 1999 Agreement, GI shall have the first right, but not the
obligation, to seek or continue to seek or maintain Patent protection on any
GI GDF-8 Patent Rights and any Joint GDF-8 Patent Rights, in any country. If
GI elects, in any country not to seek or continue to seek or maintain Patent
protection on any such GDF-8 Patent Rights, to the extent the manufacture use
or sale, by MetaMorphix, of a GDF-8 Licensed Product would infringe such GDF-8
Patent Rights in such country, MetaMorphix shall have the right, but not the
obligation, at its expense, to file, procure and maintain in such country(ies)
such GDF-8 Patent Rights.
	 
	 	6.1.2  	MetaMorphix GDF-8 Patent Rights. Subject to the rights and
obligations of the Parties and JHU under the 1999 Agreement, MetaMorphix shall
have the first right, but not the obligation, to seek or continue to
seek or maintain Patent protection on any MetaMorphix GDF-8 Patent Rights in any
country. If MetaMorphix elects not to seek or continue to seek or maintain
Patent protection on any MetaMorphix GDF-8 Patent Rights in any country, GI
shall have the right, but not the obligation, at its expense, to file, procure
and maintain in such country(ies) such MetaMorphix GDF-8 Patent Rights.

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	 	6.1.3  	Patent Cooperation. Each Party shall advise the other Party of all decisions
taken under this Section 6.1 in a timely manner in order to allow the other Party to
protect its rights under this Section 6.1. Each Party shall provide the other Party
with copies of all substantive communications from all patent offices regarding any
GDF-8 Patent Rights, promptly after the receipt thereof. Each Party shall provide the
other Party with copies of all proposed substantive communications to such patent
offices regarding the GDF-8 Patent Rights in sufficient time before the due date in
order to enable the other applicable Party an opportunity to comment on the content
thereof. Each Party shall make available to the other Party, or its authorized
attorneys, agents or representatives, such of its employees whom the other applicable
Party, in its reasonable judgment, deems necessary in order to assist it in obtaining
Patent protection for the applicable GDF-8 Patent Rights, in the event the Party with
first rights to seek or continue to seek or maintain Patent protection on any such
GDF-8 Patent Rights chooses not to do so. Each Party shall sign or use its best
efforts to have signed all legal documents necessary to file and prosecute Patents or
to obtain or maintain Patents at no cost to the other Party. Each Party shall bear
all costs incurred by it in exercising the foregoing rights.
	 
	 	6.1.4  	Interferences. The Parties shall each, in good faith, use its
respective Commercially Reasonable Efforts to resolve any patent
interferences between any of the Parties relating to Patents directed to GDF-8 or any
GDF-8 Licensed Product.

	 	6.2  	Infringement.

	 	6.2.1  	Notice. Each Party shall promptly report in writing to the other Party
during the term of this Agreement any (i) known infringement or suspected
infringement of any of the GDF-8 Patent Rights or (ii) unauthorized use or
misappropriation of the other Party’s Confidential Information by a Third Party of
which it becomes aware, and shall provide the other Parties with all available
evidence supporting said infringement, suspected infringement or unauthorized use or
misappropriation.
	 
	 	6.2.2  	First Right to Initiate Suits. Subject to the rights and obligations of
the Parties under the 1999 Agreement, MetaMorphix shall have the first right to
initiate an infringement or other appropriate suit against any Third Party who at any
time has infringed, or is suspected of infringing, any of the MetaMorphix GDF-8 Patent
Rights licensed to GI hereunder or of using without proper authorization all or any of
MetaMorphix’s Confidential Information, where such infringement,

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suspected infringement or unauthorized use is determined by MetaMorphix to have
an adverse affect on its ability to make, have made, use and/or sell GDF-8 Licensed
Products, provided, however, that GI shall have the first right to initiate
such infringement or other appropriate suit against any such Third Party, where the
actual or suspected infringement is occurring only in the GI Field. GI shall have the
first right to initiate an infringement or other appropriate suit against any Third
Party who at any time has infringed, or is suspected of infringing, any of the GI GDF-8
Patent Rights licensed to MetaMorphix hereunder or the Joint GDF-8 Patent Rights, or of
using without proper authorization all or any of GI’s Confidential Information, where
such infringement, suspected infringement or unauthorized use is determined by GI to
have an adverse affect on its ability to make, have made, use and/or sell GDF-8 Licensed
Products. GI and MetaMorphix agree to consult with each other prior to instituting any
such suit and to provide the other Party a reasonable opportunity to participate, at its
own expense, in any such suit to protect its respective interests.

	 	6.2.3  	Right to Participate in Suit. The Party initiating a suit pursuant to Section 6.2.2 above
(the “first Party”) shall give the other Party (the “second Party”) sufficient advance notice
of its intent to file said suit and the reasons therefor, and shall provide the second Party
with an opportunity to make suggestions and comments regarding such suit, including, without
limitation, the initiation thereof and the selection of counsel therefor. The first Party
shall keep the second Party promptly informed, and shall from time to time consult with the
second Party regarding the status of any such suit and shall provide the second Party with
copies of all documents filed in, and all written communications relating to, such suit.
Except as provided herein, the first Party shall have the sole and exclusive right to select
counsel for any suit and shall pay all expenses of the suit, including without limitation
attorneys’ fees and court costs. The second Party, in its sole discretion, may elect, within
sixty (60) days after the commencement of such litigation, to contribute a fixed percentage
of up to fifty percent (50%) of the costs incurred by the first Party in connection with such
litigation, including, without limitation, reimbursement of the first Party’s expenses
hereunder. If it so elects, any damages, royalties, settlement fees or other consideration
received by the first Party or any of its Affiliates for past infringement or
misappropriation as a result of such litigation shall be shared by the first and second
Parties pro-rata based on their respective sharing of the costs of such litigation, subject
to Section 6.2.5, below. In the event that the second Party elects not to contribute to the
costs of such litigation, the first Party and/or its Affiliates shall be entitled to retain
any damages, royalties, settlement

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fees or other consideration for past infringement or misappropriation resulting
therefrom, subject to Section 6.2.5, below. If necessary or desirable, the
second Party shall join as a party to the suit but shall be under no obligation to
participate except to the extent that such participation is required as the result of
being a named party to the suit. The second Party shall offer reasonable assistance to
the first Party in connection therewith at no charge to the first Party except for
reimbursement of reasonable out-of-pocket expenses. The second Party shall have the right
to participate and be represented in any such suit by its own counsel at its own expense.
The first Party shall not settle any such suit involving rights of the second Party
without obtaining the prior written consent of the second Party, which consent shall not
be unreasonably withheld or delayed.

	 	6.2.4  	Second Right to Initiate Suit. In the event that the first Party elects not to initiate an
infringement or other appropriate suit pursuant to Sections 6.2.2, above, as
applicable, the first Party shall promptly advise the second Party of its intent not to
initiate such suit, and the second Party shall have the right, at its expense, of initiating
an infringement or other appropriate suit against any Third Party who at any time has
infringed, or is suspected of infringing, any of the GDF-8 Patent Rights or of using without
proper authorization all or any portion of such Party’s Confidential Information. In
exercising its rights pursuant to this Section 6. 2. 4, the second Party shall have
the sole and exclusive right to select counsel and shall, except as provided below, pay all
expenses of the suit including without limitation attorneys’ fees and court costs. The first
Party, in its sole discretion, may elect, within sixty (60) days after the
commencement of such litigation, to contribute a fixed percentage of up to fifty percent
(50%) of the costs incurred by the second Party in connection with such litigation,
including, without limitation, reimbursement of the second Party’s expenses hereunder. If it
so elects, any damages, royalties, settlement fees or other consideration received by the
second Party or any of its Affiliates for past infringement or misappropriation as a result
of such litigation shall be shared by the second and first Parties pro-rata based on their
respective sharing of the costs of such litigation, subject to Section 6. 2. 5,
below. In the event that the first Party elects not to contribute to the costs of such
litigation, the second Party and/or its Affiliates shall be entitled to retain any damages,
royalties, settlement fees or other consideration for past infringement or misappropriation
resulting therefrom, subject to Section 6.2.5, below. If necessary or desirable,
the first Party shall join as a party to the suit but shall be under no obligation to
participate except to the extent that such participation is required as a result of being a
named party to the suit. At the second Party’s request, the first Party shall offer
reasonable assistance to the second

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Party in connection therewith at no charge to the second Party except for
reimbursement of reasonable out-of-pocket expenses. The first Party shall have
the right to participate and be represented in any such suit by its own counsel
at its own expense.

	 	6.2.5  	Royalty Deduction. Any damages, royalties, settlement fees or other
consideration for past infringement or misappropriation awarded to and/or collected
by a Party (or Parties) resulting from an infringement or other appropriate suit
against a Third Party or a settlement thereof shall, after deduction of all costs and
expenses associated with such suit or settlement, be deemed to reflect a loss of
commercial sales, and royalties shall be payable thereon to the Party (or Parties) to
which royalties would have been owed under Section 4.1 of this Agreement, provided
that such Party is not otherwise entitled to receive a portion of any recovery other
than reimbursement of its litigation expenses) obtained from such suit or settlement
pursuant to this Section 6.2.

	 	6.3  	Claimed Infringement.

	 	6.3.1  	Notice; Cooperation. In the event that a Third Party at any time provides
written notice of a claim to, or brings an action, suit or proceeding against, any
Party or any of their respective Affiliates or sub licensees, claiming infringement of
its patent rights or copyrights or unauthorized use or misappropriation of its
Confidential Information, based upon an assertion or claim arising out of the
manufacture, use and/or sale of any GDF-8 Product pursuant to the licenses granted
under this Agreement, such Party shall promptly notify the other Parties of the claim
or the commencement of such action, suit or proceeding, enclosing a copy of the claim
and/or all papers served. Each Party agrees to make available to the other Party its
advice and counsel regarding the technical merits of any such claim at no cost to the
other Party.
	 
	 	6.3.2  	LIMITATION OF LIABILITY. EXCEPT FOR BREACHES OF SECTIONS 8.1, 8.2 AND 8.3
OF THIS AGREEMENT, THE FOREGOING STATES THE ENTIRE RESPONSIBILITY OF THE PARTIES IN
THE CASE OF ANY CLAIMED INFRINGEMENT OR VIOLATION OF ANY THIRD PARTY’S PATENT RIGHTS
OR COPYRIGHTS OR UNAUTHORIZED USE OR MISAPPROPRIATION OF ANY THIRD PARTY’S KNOW-HOW.

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	7.  	CONFIDENTIAL INFORMATION.

	 	7.1  	Nondisclosure of Confidential Information. Neither Party may directly or
indirectly publish, disseminate or otherwise disclose, deliver or make available to
any person outside its organization any of the other Party’s Confidential Information
received hereunder. Each Party may disclose the other Party’s Confidential
Information to persons within its organization and to its Affiliates and sublicensees
who/which have a need to receive such Confidential Information in order to further
the purposes of this Agreement and who/which are bound to protect the confidentiality
of such Confidential Information, as set forth in Section 7.3 below. Each Party may
disclose the other Party’s Confidential Information to a governmental authority or by
order of a court of competent jurisdiction, provided that such disclosure is subject
to all applicable governmental or judicial protection available for like material and
reasonable advance notice is given to the other Party.
	 
	 	7.2  	Use of Confidential Information. Each Party shall use the other Party’s
Confidential Information solely for the purposes contemplated in this Agreement or for
such other purposes as may be agreed upon by the Parties in writing.
	 
	 	7.3  	Agreements with Personnel and Third Parties. The Parties have or shall
obtain agreements with all personnel and Third Parties who will have access to the
other Party’s Confidential Information which impose on such personnel and Third
Parties confidentiality and non-use obligations which are no less restrictive than
those that are set forth in this Agreement.
	 
	 	7.4  	Publications.

	 	7.4.1  	Right to Publish. Any Party may publish any manuscripts or
other scientific papers on work conducted exclusively by that Party without
the written consent of the other Parties. However, a Party may not publish
(or permit a Third Party to publish) any manuscript or other scientific paper
that discloses or uses any Confidential Information of another Party without
first obtaining that other Party’s written consent; and a Party may not
publish any manuscript or other scientific paper that would prejudice any
Patent rights of another Party (including, without limitation, prospective
Patent rights) without first complying with the provisions of this Section
7.4 and Section 6.1, above.
	 
	 	7.4.2  	Notice and Review. In order to balance the Parties’
interests in securing Patents covering the GDF-8 Patent Rights with each
Party’s right to publish any manuscripts or other scientific papers on work
relating directly and exclusively to GDF-8 or GDF-8 Products which work is
conducted solely by or on behalf of that Party, prior to the

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publication or other public disclosure of any manuscripts or other
form of disclosure describing the results of its work hereunder, the
publishing Party shall provide (a) the data to be disclosed in that
manuscript or other form of public disclosure to the other Party as soon as
practicable, but at least four (4) weeks prior to intended submission for
publication or other method of public disclosure, (b) a copy of the draft
manuscript to be published, or a detailed summary of any other public
disclosure to the other Parties as soon as practicable, but at least two
(2) weeks prior to intended submission for publication or other method of
public disclosure, (c) a copy of the completed manuscript or other form of
public disclosure at the time of submission and (d) a copy of any
reviewer’s comments on the manuscript or other form of public disclosure
with a revised copy thereof at least two (2) weeks prior to publication.

	 	7.4.3  	Deletion of Confidential Information; Patent Protection. A
Party may request that the publishing Party delete from its manuscripts or
other scientific papers or other forms of public disclosure reference to that
Party’s Confidential Information. In addition, if a Party notifies another
Party that it desires patent applications to be filed claiming inventions that
would be included within the GDF-8 Patent Rights once filed, which patent
application contains information to be disclosed by that other Party in a
public forum other than in manuscripts or other scientific papers, the
presenting Party will defer such presentation for a period, not to exceed
thirty (30) additional days, sufficient to permit the Party with rights to
file any desired patent applications to do so.

	8.  	REPRESENTATION AND WARRANTIES.

	 	8.1  	Representations and Warranties of GI and MetaMorphix. As of the Effective
Date, each of GI and MetaMorphix hereby represents, warrants and covenants to the
other Party hereto as follows:

	 	(a)  	it is a corporation or entity duly organized and validly
existing under the laws of the state or other jurisdiction of incorporation or
formation;
	 
	 	(b)  	the execution, delivery and performance of this Agreement by
such Party has been duly authorized by all requisite corporate action and do
not require any shareholder action or approval;
	 
	 	(c)  	it has the power and authority to execute and deliver this
Agreement and to perform its obligations hereunder;

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	 	(d)  	the execution, delivery and performance by such Party of this Agreement and
its compliance with the terms and provisions hereof does not and will not
conflict with or result in a breach of any of the terms and provisions of or
constitute a default under (i) a loan agreement, guaranty, financing
agreement, agreement affecting a product or other agreement or instrument
binding or affecting it or its property; (ii) the provisions of its charter or
operative documents or bylaws; or (iii) any order, writ, injunction or decree
of any court or governmental authority entered against it or by which any of
its property is bound; and
	 
	 	(e)  	it shall at all times comply with all applicable material laws
and regulations relating to its activities under this Agreement.

	 	8.2  	Additional Representations and Warranties of GI.

	 	8.2.1  	Patent Rights and Know-How. To the best of GI’s knowledge,
information and belief, GI represents and warrants that it owns or has
exclusive (except to the extent otherwise provided in the 1999 Agreement)
rights to the GI GDF-8 Patent Rights and GI GDF-8 Know-How in existence on the
Effective Date and/or has the right to grant the licenses under the GI GDF-8
Patent Rights and to the GI GDF-8 Know-How in existence on the Effective Date
subject to the terms of this Agreement. The foregoing representation and
warranty shall not be construed as a warranty as to the scope and/or validity
of any claims in the GI GDF-8 Patent Rights.
	 
	 	8.2.2  	No Conflicting Agreements. GI represents and warrants that
the execution of, and performance of the transactions contemplated by, this
Agreement will not conflict with or result in any breach of any of the teens,
conditions or provisions of, or constitute a default under, any agreement to
which GI is a party or by which GI is bound.

	 	8.3  	Additional Representations and Warranties of MetaMorphix.

	 	8.3.1  	Patent Rights and Know-How. To the best of MetaMorphix’
knowledge, information and belief, MetaMorphix represents and warrants that it
owns or has exclusive (except to the extent otherwise provided in the 1999
Agreement) rights to the MetaMorphix GDF-8 Patent Rights and MetaMorphix GDF-8
Know-How in existence on the Effective Date and/or has the right to grant the
licenses under the MetaMorphix GDF-8 Patent Rights and to the MetaMorphix
GDF-8 Know-How in existence on the Effective Date subject to the terms of this
Agreement. The foregoing representation and warranty shall not be construed as
a warranty as to the scope and/or validity of any claims in the MetaMorphix
GDF-8 Patent Rights.

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	 	8.3.2  	No Conflicting Agreements. MetaMorphix represents and warrants that
the execution of, and performance of the transactions contemplated by, this
Agreement will not conflict with or result in any breach of any of the terms,
conditions or provisions of, or constitute a default under, any agreement to
which MetaMorphix is a party or by which MetaMorphix is bound.

	 	8.4  	Representation by Legal Counsel. Each Party hereto represents that it
has been represented by legal counsel in connection with this Agreement and
acknowledges that it has participated in the drafting hereof. In interpreting and
applying the terms and provisions of this Agreement, the Parties agree that no
presumption shall exist or be implied against the Party which drafted such teens and
provisions.
	 
	 	8.5  	Materiality. EACH PARTY EXPRESSLY WAIVES ANY RIGHTS TO SEEK DAMAGES OR OTHER
RELIEF FOR BREACH OF THE REPRESENTATIONS AND WARRANTIES IN SECTIONS 8.1, 8.2
AND 8.3 UNLESS SUCH BREACH HAS A MATERIAL AND ADVERSE EFFECT ON SUCH PARTY.
	 
	 	8.6  	Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NO PARTY MAKES
ANY WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES
OR MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

	9.  	PRODUCT LIABILITY INDEMNIFICATION.

	 	9.1  	MetaMorphix Indemnification. MetaMorphix agrees to defend GI and ITS
respective Affiliates, sublicensees, agents, directors, officers, employees, students
and licensees of rights to a GDF-8 Licensed Product, as applicable (the
“indemnitees”) (other than in settlement of a claim of infringement), at MetaMorphix’
cost and expense, and will indemnify and hold harmless such indemnitees from and
against any and all liabilities, losses, costs, damages, fees, or expenses claimed by
or paid to a Third Party attributable to injury to persons or damage to property
(collectively, “Losses”) arising out of or in connection with the manufacture, use
and/or sale of any GDF-8 Licensed Product by MetaMorphix, its -Affiliates,
or sublicensees (other than GI); provided that such Losses do not arise out of the
gross negligence or willful misconduct of GI or any GI indemnitee. MetaMorphix’s
indemnification obligations under this Section 9.1 shall be applicable only to the
extent not covered by MetaMorphix’s indemnification obligations under the 1999
Agreement.

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	 	9.2  	GI Indemnification. GI agrees to defend MetaMorphix and its respective Affiliates,
permitted sublicensees, agents, directors, officers, employees, students and licensees of
rights to a GDF-8 Licensed Product, as applicable (the “indemnitees”) (other than in
settlement of a claim of infringement), at GI’s cost and expense, and will indemnify and hold
harmless such indemnitees from and against any and all Losses arising out of or in connection
with the manufacture, use and/or sale of any GDF-8 Licensed Product by GI, its Affiliates, or
sublicensees (other than MetaMorphix); provided that such Losses do not arise out of the
gross negligence or willful misconduct of MetaMorphix or any MetaMorphix indemnitee. GI’s
indemnification obligations under this Section 9.2 shall be applicable only to the extent not
covered by GI’s indemnification obligations under the 1999 Agreement.
	 
	 	9.3  	Notice; Cooperation. In the event of any such indemnifiable claim, the indemnified Party
shall promptly notify the indemnifying Party in writing of the claim and the indemnifying
Party shall manage and control, at its sole expense, the defense of the claim and its
settlement. The indemnified Party shall cooperate with the indemnifying Party and may, at its
option and expense, be represented in any such action or proceeding. The indemnifying Party
shall not be liable for any settlements, litigation costs, or expenses incurred by the
indemnified Party without the indemnifying Party’s written consent, such consent to be
promptly given and not unreasonably withheld.
	 
	 	9.4  	Liability Limitation. Neither GI nor MetaMorphix shall be liable for special, incidental
or consequential damages or for loss of profit or lost revenue, even another Party had been
advised of the possibility of such damages.
	 
	 	9.5  	Insurance. Prior to initial human testing or first commercial sale of any GDF-8 Product in
any particular country by a Party, such Party shall secure and maintain at its own expense
during the term of this Agreement either self insurance or an insurance policy or policies
with an insurer or insurers acceptable to the other Parties, in either case, protecting the
Parties against any and all risks typically insured against by businesses comparable to the
Party, including without limitation general and products liability, arising or occurring upon
or in connection with each Party’s business. Such policy or policies shall include general
and products liability coverage in an amount typically secured by businesses comparable to
the Party. Each Party shall furnish the other Party with certificates evidencing all such
insurance. Each Party shall name the other Party and JHU as additional insured in such policy
or policies.

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	10.  	TERM AND TERMINATION.

	 	10.1  	Term. This Agreement shall remain in effect until terminated in accordance
with the provisions of this Section 10 or until the last to expire of any of the
exclusive licenses granted pursuant to this Agreement.
	 
	 	10.2  	Termination for Breach. In the event that a Party shall be in default of any
of its material obligations to another Party hereunder, and shall fail to remedy any
such default within sixty (60) days after notice thereof by the non-breaching Party
to whom such obligations are owed, such non-breaching Party shall, by written notice
to the other Party, be entitled to terminate the rights it granted to the breaching
Party under this Agreement and its obligations to the breaching Party under this
Agreement. Any such notice shall specifically describe the alleged default and
expressly state that the non-breaching Party intends to terminate the rights it has
granted to the breaching Party under this Agreement in the event that the breaching
Party shall fail to remedy the default. Upon any termination of this Agreement
pursuant to this Section 10.2, the Parties shall not be relieved of any obligations
incurred prior to such termination. Notwithstanding the foregoing, a termination of
this Agreement under this Section 10.2 shall have no effect on the 1999 Agreement and
any termination of the 1999 Agreement under Section 14.2 thereof shall have no effect
on this Agreement.
	 
	 	10.3  	Survival of Obligations; Return of Confidential Information.
Notwithstanding any termination of this Agreement, the obligations of the Parties
under Sections 7, 9, 10.3, 11.1, 11.6 and 11.15 as well as under any other provisions
which by their nature are intended to survive any such termination, shall survive and
continue to be enforceable. Upon any termination of this Agreement pursuant to
Section 10.2 hereof, the breaching Party shall promptly return to the non-breaching
Party all written Confidential Information, and all copies thereof, of the
non-breaching Party, which is not covered by a license surviving such termination.

	11.  	MISCELLANEOUS.

	 	11.1  	Publicity. No Party, nor any of its Affiliates, shall originate any
publicity, news release or other public announcement, written or oral, relating to
this Agreement without the prior written approval of the other Parties, which
approval shall not be unreasonably withheld, except as otherwise required by law. It
is expressly understood that nothing in this Section 11.1 shall prevent a Party from
making a disclosure in connection with any required filings with the Securities and
Exchange Commission or in connection with the offering of securities or any
financing. In addition, neither GI nor MetaMorphix shall use the name of the other
Party in any advertising,

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promotional, sales literature or fundraising documents without the prior written
consent of such other Party.

	 	11.2  	Export Control. The Parties acknowledge that the export of technical data, materials, or
products is subject to the exporting Party receiving the necessary export licenses and that
the Parties cannot be responsible for any delays attributable to export controls that are
beyond the reasonable control of either Party. The Parties agree that regardless of any
disclosure made by the Party receiving an export of an ultimate destination of any technical
data, materials, or products, the receiving Party will not reexport either directly or
indirectly, any technical data, material, or products without first obtaining the applicable
validated or general license from the United States Department of Commerce, United States
Food and Drug Administration, and/or any other agency or department of the United States
Government, as required. The receiving Party shall provide the exporting Party with any
information, materials, certifications, or other documents which may be reasonably required
in connection with such exports under the Export Administration Act of 1979, as amended, its
rules and regulations, the Federal Food, Drug and Cosmetic Act, and other applicable export
laws.
	 
	 	11.3  	Conduct of Studies. All studies, research and testing done by or on behalf of each Party
under this Agreement shall be performed in strict compliance with any applicable federal,
state, or local laws, rules, and regulations governing the conduct of studies, research, and
testing at the site where such studies, research, and testing are being conducted.
	 
	 	11.4  	No Implied Licenses. Only the licenses granted pursuant to the express terms of this
Agreement shall be of any legal force and effect. No license rights shall be created by
implication or estoppel.
	 
	 	11.5  	No Agency. Nothing herein shall be deemed to constitute any Party as the agent or
representative of the other Parties, or the Parties as joint venturers or partners for any
purpose. Each Party shall be an independent contractor, not an employee or partner of the
other Parties, and the manner in which each Party renders its services under this Agreement
shall be within its sole discretion. No Party shall be responsible for the acts or omissions
of the other Parties, and no Party will have authority to speak for, represent or obligate
the other Parties in any way without prior written authority from the other Party or Parties.
	 
	 	11.6  	Notice. All notices required under this Agreement to be given by one Party to another
shall be in writing and shall be given by addressing the same to the other at the address or
facsimile number set forth below, or at such other addresses or facsimile numbers as the
Parties may specify in writing. All notices shall become effective when deposited in the
United States Mail with proper postage for first class registered or certified mail prepaid,
return

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receipt requested, or when delivered personally, or, if promptly confirmed by mail
as provided above, when dispatched by facsimile.

	 	 	 	 	 
	

	 	If to GI:	 	 
	

	 	 	 	Genetics Institute, Inc.

84 CambridgePark Drive 

Cambridge, Massachusetts 02140

Telecopier: (617) 876-5851

Attn: Legal Department
	 
	 	 	 	 
	 	 	If to MetaMorphix:
	

	 	 	 	MetaMorphix, Inc.

8510A Corridor Road

Savage, Maryland 20763

Telecopier: (301) 617-9075

Attn: President
	 
	 	 	 	 
	

	 	with copies to:	 	 
	

	 	 	 	Wyeth

5 Giralda Farms

Madison, New Jersey 07940.

Telecopier: (973) 660-7156

Attn: General Counsel
	 
	 	 	 	 
	

	 	 	 	and
	 
	 	 	 	 
	

	 	 	 	Shapiro Sher Guinot & Sandler

36 South Charles Street – Suite 2000

Baltimore, MD 21201-3147

Telecopier: (410) 539-7611

Attn: William E. Carlson, Esq.

	 	11.7  	Assignment. This Agreement, and the rights and obligations hereunder, may not be
assigned or transferred, in whole or in part, by any Party without the prior written consent
of the other Parties, except that (a) upon notice to the other Party, GI may assign this
Agreement to an Affiliate controlled by GI, and MetaMorphix may assign this Agreement to an
Affiliate which is majority controlled by MetaMorphix, provided that each such Party remains
primarily liable and/or responsible for the performance of such obligations and such
controlled Affiliate, and provided further that such controlled Affiliate agrees to be bound
to the terms and conditions of this Agreement and (b) upon notice to the other Party, GI may
assign this Agreement in connection with the merger, consolidation or sale of all or
substantially all of GI’s assets and MetaMorphix may assign this Agreement in connection with
the merger, consolidation or sale of all or substantially all of MetaMorphix’ assets.

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	 	11.8  	Entire Agreement. This Agreement and the exhibits and schedules attached hereto,
together, constitute the entire agreement of the Parties with regard to its subject matter,
and supersedes all previous written or oral representations, agreements and understandings
between the Parties. Notwithstanding the foregoing, the Parties hereby acknowledge and agree
that the 1999 Agreement shall remain in full force and effect in accordance with the terms
and conditions set forth therein except to the extent expressly amended hereby and that this
Agreement is in addition to and should be interpreted in light of the rights and obligations
of each of the Parties under the 1999 Agreement.
	 
	 	11.9  	No Modification. This Agreement may be changed only by a writing signed by the Parties.
	 
	 	11.10  	Headings. The headings contained in this Agreement are for convenience of reference only
and shall not be considered in construing this Agreement.
	 
	 	11.11  	Waiver. The waiver by any Party of a breach or a default of any provision of this Agreement
by another Party shall not be construed as a waiver of any succeeding breach of the same or
any other provision, nor shall any delay or omission on the part of any Party to exercise or
avail itself of any right, power or privilege that it has or may have hereunder operate as a
waiver of any right, power, or privilege by such Party.
	 
	 	11.12  	Severability. In the event that any one or more of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other
provisions of this Agreement, and all other provisions shall remain in full force and effect.
If any of the provisions of this Agreement is held to be excessively broad or invalid,
illegal or unenforceable in any jurisdiction, it shall be reformed and construed by limiting
and reducing it so as to be enforceable to the maximum extent permitted by law in conformance
with its original intent.
	 
	 	11.13  	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the Parties hereto and their successors and permitted assigns.
	 
	 	11.14  	Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same
instrument.

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	 	11.15  	Applicable Law. This Agreement shall in all events and for all purposes be
governed by, and construed in accordance with, the law of the State of Maryland
without regard to any choice of law principle that would dictate the application of
the law of another jurisdiction.

            IN WITNESS WHEREOF, duly-authorized representatives of the parties have signed this
Agreement as a document under seal as of the Effective Date.

    	 	 	 	 	 	 
	GENETICS INSTITUTE, LLC	 	METAMORPHIX,INC.	 
	 	 	 	 	 	 
	By:	 /s/ Ronald W. Alice	 	By:	/s/ Edwin C. Quattlebaum 	 
	 	
	 		
	
	 	Ronald W. Alice	 		Edwin C. Quattlebaum, Ph.D.	
	 	Vice President	 		President and Chief Executive Officer 	
	 	 	 			

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