Document:

Exhibit
10.3

CONFIDENTIAL

Confidential
Materials omitted and filed separately with the

Securities
and Exchange Commission. Asterisks denote omissions.

ASSET
PURCHASE AGREEMENT

dated
April 20, 2007

among

MOMENTA
PHARMACEUTICALS, INC.,

PARIVID,
LLC

and

S. RAGURAM

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  I

  	
   

  	
   

  
	
  THE ASSET PURCHASE

  	
   

  	
  1

  
	
  1.1

  	
   

  	
  Purchase and
  Sale of Assets

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Assumption of
  Liabilities

  	
   

  	
  1

  
	
  1.3

  	
   

  	
  Purchase
  Price

  	
   

  	
  1

  
	
  1.4

  	
   

  	
  Contingent
  Milestone Payments

  	
   

  	
  2

  
	
  1.5

  	
   

  	
  The
  Closing

  	
   

  	
  3

  
	
  1.6

  	
   

  	
  Allocation

  	
   

  	
  3

  
	
  1.7

  	
   

  	
  Further
  Assurances

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF THE SELLER AND THE PRIMARY MEMBER

  	
   

  	
  4

  
	
  2.1

  	
   

  	
  Organization,
  Qualification and Corporate Power

  	
   

  	
  4

  
	
  2.2

  	
   

  	
  Authorization
  of Transaction

  	
   

  	
  4

  
	
  2.3

  	
   

  	
  Noncontravention

  	
   

  	
  5

  
	
  2.4

  	
   

  	
  Subsidiaries

  	
   

  	
  5

  
	
  2.5

  	
   

  	
  Financial Statements

  	
   

  	
  5

  
	
  2.6

  	
   

  	
  Undisclosed
  Liabilities

  	
   

  	
  5

  
	
  2.7

  	
   

  	
  Tax
  Matters.

  	
   

  	
  5

  
	
  2.8

  	
   

  	
  Ownership
  and Condition of Assets

  	
   

  	
  6

  
	
  2.9

  	
   

  	
  Intellectual
  Property

  	
   

  	
  6

  
	
    2.10

  	
   

  	
  Contracts

  	
   

  	
  9

  
	
    2.11

  	
   

  	
  Litigation

  	
   

  	
  10

  
	
    2.12

  	
   

  	
  Employees
  and Employee Benefits

  	
   

  	
  10

  
	
    2.13

  	
   

  	
  Environmental
  Matters

  	
   

  	
  10

  
	
    2.14

  	
   

  	
  Legal Compliance

  	
   

  	
  10

  
	
    2.15

  	
   

  	
  Permits

  	
   

  	
  11

  
	
    2.16

  	
   

  	
  Certain
  Business Relationships With Affiliates

  	
   

  	
  11

  
	
    2.17

  	
   

  	
  Brokers’
  Fees

  	
   

  	
  11

  
	
    2.18

  	
   

  	
  Disclosure

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF THE BUYER

  	
   

  	
  11

  
	
  3.1

  	
   

  	
  Organization
  and Corporate Power

  	
   

  	
  11

  
	
  3.2

  	
   

  	
  Authorization
  of the Transaction

  	
   

  	
  11

  
	
  3.3

  	
   

  	
  Noncontravention

  	
   

  	
  11

  
	
  3.4

  	
   

  	
  Litigation

  	
   

  	
  12

  
	
  3.5

  	
   

  	
  Brokers’
  Fees

  	
   

  	
  12

  

 

 i
 

 

	
  ARTICLE IV

  	
   

  	
   

  
	
  CONDITIONS TO CLOSING

  	
   

  	
  12

  
	
  4.1

  	
   

  	
  Conditions
  to Obligations of the Buyer

  	
   

  	
  12

  
	
  4.2

  	
   

  	
  Conditions
  to Obligations of the Seller

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
   

  	
   

  
	
  POST-CLOSING COVENANTS

  	
   

  	
  13

  
	
  5.1

  	
   

  	
  Proprietary
  Information

  	
   

  	
  13

  
	
  5.2

  	
   

  	
  Non-Competition

  	
   

  	
  13

  
	
  5.3

  	
   

  	
  Tax
  Matters

  	
   

  	
  13

  
	
  5.4

  	
   

  	
  Sharing
  of Data

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
   

  	
   

  
	
  INDEMNIFICATION

  	
   

  	
  14

  
	
  6.1

  	
   

  	
  Indemnification
  by the Seller and the Primary Member

  	
   

  	
  14

  
	
  6.2

  	
   

  	
  Indemnification
  by the Buyer

  	
   

  	
  14

  
	
  6.3

  	
   

  	
  Indemnification
  Claims

  	
   

  	
  15

  
	
  6.4

  	
   

  	
  Survival of
  Representations and Warranties

  	
   

  	
  16

  
	
  6.5

  	
   

  	
  Limitations

  	
   

  	
  17

  
	
  6.6

  	
   

  	
  Treatment of
  Indemnity Payments

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  	
   

  
	
  REGISTRATION
  RIGHTS

  	
   

  	
  17

  
	
  7.1

  	
   

  	
  Registration of
  Shares

  	
   

  	
  17

  
	
  7.2

  	
   

  	
  Limitations
  on Registration Rights

  	
   

  	
  18

  
	
  7.3

  	
   

  	
  Registration
  Procedures

  	
   

  	
  18

  
	
  7.4

  	
   

  	
  Requirements of
  the Seller

  	
   

  	
  19

  
	
  7.5

  	
   

  	
  Indemnification

  	
   

  	
  19

  
	
  7.6

  	
   

  	
  Assignment of Rights

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
  29

  
	
  9.1

  	
   

  	
  Press
  Releases and Announcements

  	
   

  	
  29

  
	
  9.2

  	
   

  	
  No Third Party
  Beneficiaries

  	
   

  	
  29

  
	
  9.3

  	
   

  	
  Entire Agreement

  	
   

  	
  29

  
	
  9.4

  	
   

  	
  Succession and
  Assignment

  	
   

  	
  29

  
	
  9.5

  	
   

  	
  Counterparts
  and Facsimile Signature

  	
   

  	
  29

  
	
  9.6

  	
   

  	
  Headings

  	
   

  	
  29

  
	
  9.7

  	
   

  	
  Notices

  	
   

  	
  30

  
	
  9.8

  	
   

  	
  Governing
  Law

  	
   

  	
  30

  

 

 ii
 

 

	
  9.9

  	
   

  	
  Amendments and
  Waivers

  	
   

  	
  30

  
	
    9.10

  	
   

  	
  Severability

  	
   

  	
  31

  
	
    9.11

  	
   

  	
  Expenses

  	
   

  	
  31

  
	
    9.12

  	
   

  	
  Submission to
  Jurisdiction

  	
   

  	
  31

  
	
    9.13

  	
   

  	
  Specific Performance

  	
   

  	
  31

  
	
    9.14

  	
   

  	
  Construction

  	
   

  	
  31

  

 

Exhibits

	
  Exhibit
  A -

  	
  Bill of Sale

  
	
  Exhibit B -

  	
  Patent
  Assignment

  
	
  Exhibit C-

  	
  Instrument
  of Assumption

  

 

Schedules

Disclosure Schedule

 iii

CONFIDENTIAL

ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement (the “Agreement”) is
entered into as of April 20, 2007 by and among MOMENTA PHARMACEUTICALS, INC., a
Delaware corporation (the “Buyer”), PARIVID, LLC, a Massachusetts limited
liability company (the “Seller”) and S. RAGURAM, an individual residing at [**]
(“Primary Member”).

This Agreement contemplates a transaction in which the
Buyer will purchase certain of the assets and assume certain of the liabilities
of the Seller.

The Primary Member is the owner of substantially all
of the membership interests of the Seller.

Capitalized terms used in this Agreement shall have
the meanings ascribed to them in Article VIII.

In consideration of the representations, warranties
and covenants herein contained, the Parties agree as follows.

ARTICLE I

THE ASSET
PURCHASE

1.1                                 Purchase and Sale
of Assets.

(a)                                  Upon and subject to
the terms and conditions of this Agreement, the Buyer shall purchase from the
Seller, and the Seller shall sell, transfer, convey, assign and deliver to the
Buyer, at the Closing, for the consideration specified below in this Article I,
all right, title and interest in, to and under the Acquired Assets.

(b)                                 Notwithstanding the
provisions of Section 1.1(a) or any other provision of this Agreement to the
contrary, the Acquired Assets shall not include the Excluded Assets.

1.2                                 Assumption of
Liabilities.

(a)                                  Upon and subject to
the terms and conditions of this Agreement, the Buyer shall assume and become
responsible for, from and after the Closing, the Assumed Liabilities.

(b)                                 Notwithstanding the
terms of Section 1.2(a) or any other provision of this Agreement to the
contrary, the Buyer shall not assume or become responsible for, and the Seller
shall remain liable for, the Retained Liabilities.

1.3                                 Purchase Price.  The Purchase Price to be paid by the Buyer
for the Acquired Assets shall be as follows:

(a)                                  On the Closing Date,
the Buyer shall pay the Seller, by wire transfer of immediately available funds
to an account designated by the Seller, $2,500,000 (the “Closing Date Payment”).

(b)                                 The Seller shall also
be entitled to receive contingent milestone payments in the manner and on the
terms and conditions set forth in Section 1.4.

1.4                                 Contingent
Milestone Payments.  The Seller shall
be entitled to receive additional consideration from the Buyer if any of the
following conditions are satisfied:

(a)                                  The Buyer shall pay
the Seller, by wire transfer of immediately available funds to an account
designated by the Seller, $2,000,000 within 10 days following the completion
and satisfaction of the Capabilities Build Milestone.  Notwithstanding the foregoing, in the event
the entire Capabilities Build Milestone has not been satisfied on or before the
second (2nd)
anniversary of the Closing Date, the Buyer shall pay the Seller, by wire
transfer of immediately available funds to an account designated by the Seller
within 10 days following the second (2nd)
anniversary of the Closing Date, (i) $[**] in the event Submilestone A of the
Capabilities Build Milestone has been satisfied on or before such date or (ii)
$[**] if both Submilestone A and Submilestone B of the Capabilities Build
Milestone have been satisfied on or before such date; provided, however, that
no such payment shall be due under clauses (i) or (ii) in the event the Primary
Member’s employment with the Buyer has been terminated by the Buyer for Cause
or has been terminated by the Primary Member without Good Reason (as each
of  such terms is defined in the
Employment Agreement of even date herewith by and between the Buyer and the
Primary Member) on or before the second (2nd) anniversary of the Closing Date.

(b)                                 Provided that the
M-Enoxaparin Milestone is reached within 15 years after the date of this
Agreement, the Buyer shall issue to the Seller, within 90 days following the
completion and satisfaction of the M-Enoxaparin Milestone, that number of
shares of Buyer Common Stock (rounded to the nearest whole share) equal to
$[**] divided by the Closing Value (the “Preliminary M-Enoxaparin Shares”);
provided however that in the event the Issuance Value multiplied by the number
of such Preliminary M-Enoxaparin Shares shall exceed $[**], then the number of
shares of Buyer Common Stock to be issued to the Seller upon achievement of the
M-Enoxaparin Milestone shall be reduced to such number of shares of Buyer
Common Stock (rounded to the nearest whole share) equal to $[**] divided by the
Issuance Value.

(c)                                  Provided that the
Second Generic Product Milestone is reached within 15 years after the date of
this Agreement, the Buyer shall issue to the Seller, within 90 days following
the completion and satisfaction of the Second Generic Product Milestone, that
number of shares of Buyer Common Stock (rounded to the nearest whole share)
equal to $[**] divided by the Closing Value (the “Preliminary Second Generic
Shares”); provided however that in the event the Issuance Value multiplied by
the number of such Preliminary Second Generic Shares shall exceed $[**], then
the number of shares of Buyer Common Stock to be issued to the Seller upon
achievement of the Second Generic Product Milestone shall be reduced to such
number of shares of Buyer Common Stock (rounded to the nearest whole share)
equal to $[**] divided by the Issuance Value.

(d)                                 The Seller and the
Primary Member agree and acknowledge that the Buyer may make from time to time
such business decisions as it deems appropriate in the conduct of its business,
including actions that may have an impact on the achievement of any Milestone,
and the Seller and the Primary Member will have no right to claim any lost
milestone consideration or other damages as a result of such decisions so long
as the actions were not taken by the Buyer in bad faith or for the principal
purpose of frustrating the provisions of this Section.  For the avoidance of doubt, the termination
of the employment of the Primary Member with the Buyer for any reason (with or
without Cause) shall not affect the achievement of the M-Enoxaparin Milestone
or the Second Generic Product Milestone; viz., to the extent
either of the Milestones are achieved then the Seller will receive the
consideration set forth in this Section 1.4(b) and/or 1.4(c), respectively,
regardless of whether the Primary Member is an employee of the Buyer at the
time such Milestone is achieved.

 2
 

1.5                                 The Closing.

(a)                                  The Closing shall
take place at the offices of WilmerHale in Boston, Massachusetts commencing at
9:00 a.m. local time on the date of this Agreement (the “Closing Date”).  All transactions at the Closing shall be
deemed to take place simultaneously, and no transaction shall be deemed to have
been completed and no documents or certificates shall be deemed to have been
delivered until all other transactions are completed and all other documents
and certificates are delivered.

(b)                                 At the Closing:

(i)                                     the Seller shall
deliver to the Buyer the various certificates, instruments and documents
referred to in Section 4.1;

(ii)                                  the Buyer shall
deliver to the Seller the various certificates, instruments and documents
referred to in Section 4.2;

(iii)                               the Seller shall execute
and deliver to the Buyer a bill of sale in substantially the form attached
hereto as Exhibit A, one or more patent assignments in substantially the
form attached hereto as Exhibit B, and such other instruments of
conveyance as the Buyer may reasonably request in order to effect the sale,
transfer, conveyance and assignment to the Buyer of valid ownership of the
Acquired Assets;

(iv)                              the
Buyer shall execute and deliver to the Seller an instrument of assumption in
substantially the form attached hereto as Exhibit C and such other
instruments as the Seller may reasonably request in order to effect the
assumption by the Buyer of the Assumed Liabilities;

(v)                                 the
Buyer and the Seller shall execute and deliver a termination of the Collaboration
Agreements effective as of the Closing;

(vi)                              the Buyer and the Seller
shall execute a joint instruction mutually agreeable to the parties to Iron
Mountain Intellectual Property Management, Inc. to terminate the Preferred
Escrow Agreement dated as of April 20, 2004, as amended, by and among the
Seller, the Buyer and Iron Mountain Intellectual Property Management, Inc. and
directing the deposit materials held in escrow be delivered to the Buyer;

(vii)                           the Buyer shall pay to the
Seller the Closing Date Payment;

(viii)                        the Seller shall deliver to the
Buyer, or otherwise put the Buyer in possession and control of, all of the
Acquired Assets of a tangible nature; and

(ix)                                the Buyer and the
Seller shall execute and deliver to each other a cross-receipt evidencing the
transactions referred to above.

1.6                                 Allocation.  The Buyer shall prepare a
schedule with an allocation of the Purchase Price (and all other capitalizable
costs) among the Acquired Assets and the non-competition covenant set forth in
Section 5.2 (the “Allocation Schedule”) within ninety (90) days after
the Closing Date.  After preparation of
the Allocation Schedule, it shall be submitted to the Seller for review and
approval, which review shall be completed within thirty (30) days.  The Buyer and the Seller shall attempt in
good faith to resolve any differences between them as to the allocation.  If the Buyer and the Seller are unable to
resolve any differences as to allocation, the disputed parts of the Allocation
Schedule shall be submitted to a mutually-agreeable, neutral, nationally
recognized accounting firm 

 3
 

for resolution.  Any
determination by the accounting firm will be final and the Buyer and the Seller
shall be deemed to have approved of the Allocation Schedule as modified by any
such determination.  After approval, the
Allocation Schedule shall be conclusive and binding upon the parties hereto and
shall be used by them for all purposes, including financial accounting purposes
and in the preparation of all Tax Returns, unless otherwise required as a
result of an audit by a Taxing authority or a court order.

1.7                                 Further Assurances.  At any time and from time to time after the
Closing, at the request of the Buyer and without further consideration, the
Seller shall execute and deliver such other instruments of sale, transfer,
conveyance and assignment and take such actions as the Buyer may reasonably
request to more effectively transfer, convey and assign to the Buyer, and to
confirm the Buyer’s rights to, title in and ownership of, the Acquired Assets
and to place the Buyer in actual possession and operating control thereof.  Without limitation of the foregoing, in the
event of any breach of the representations and warranties of the Seller and the
Primary Member set forth in Section 2.8(b), the Seller shall convey to the
Buyer such additional assets of the Seller as shall be required to cure the
breach of such representations and warranties and such additional assets, when
so conveyed to the Buyer, shall constitute Acquired Assets for all purposes of
this Agreement.

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF THE 

SELLER
AND THE PRIMARY MEMBER

The Seller and the Primary Member jointly and
severally represent and warrant to the Buyer that, except as set forth in the
Disclosure Schedule, the statements contained in this Article II are true
and correct as of the date of this Agreement, except to the extent such
representations and warranties are specifically made as of a particular date
(in which case such representations and warranties are true and correct as of
such date).  The Disclosure Schedule
shall be arranged in sections and subsections corresponding to the numbered and
lettered sections and subsections contained in this Article II.  The disclosures in any section or subsection
of the Disclosure Schedule shall qualify other sections and subsections in this
Article II only to the extent it is clear from a reading of the disclosure that
such disclosure is applicable to such other sections and subsections.  For purposes of this Article II, the phrase “to
the knowledge of the Seller” or any phrase of similar import shall be deemed to
refer to the actual knowledge of the Primary Member, as well as any other
knowledge which the Primary Member would have possessed had he made reasonable
inquiry of appropriate employees and agents of the Seller with respect to the
matter in question.

2.1                                 Organization,
Qualification and Corporate Power.  The Seller is a limited liability company
duly organized, validly existing and in good standing under the laws of the
Commonwealth of Massachusetts.  The
Seller is duly qualified to conduct business and is in good standing under the
laws of each jurisdiction listed in Section 2.1 of the Disclosure Schedule,
which jurisdictions constitute the only jurisdictions in which the nature of
the Seller’s businesses or the ownership or leasing of its properties requires
such qualification.  The Seller has all
requisite limited liability company power and authority to carry on the
Acquired Business and to own and use the properties owned and used by it in
connection therewith (including the Acquired Assets).  The Seller has furnished to the Buyer
complete and accurate copies of its Certificate of Organization and its
Operating Agreement as presently in effect. 
The Seller is not in default under or in violation of any provision of
its Certificate of Organization or its Operating Agreement as presently in
effect.

2.2                                 Authorization
of Transaction.  The Seller has all requisite power and
authority to execute and deliver this Agreement and the Ancillary Agreements
and to perform its obligations hereunder and thereunder.  The execution and delivery by the Seller of
this Agreement and the performance by the Seller of this Agreement and the
Ancillary Agreements and the consummation by the Seller of the transactions
contemplated hereby and thereby 

 4
 

have been duly and validly authorized by all
necessary limited liability company action on the part of the Seller.  This Agreement has been duly and validly
executed and delivered by the Seller and constitutes, and each of the Ancillary
Agreements, upon its execution and delivery by the Seller, will constitute, a
valid and binding obligation of the Seller, enforceable against the Seller in
accordance with its terms.

2.3                                 Noncontravention. 
Neither the execution and delivery by the Seller of this Agreement or
the Ancillary Agreements, nor the consummation by the Seller of the
transactions contemplated hereby or thereby, will (a) conflict with or
violate any provision of the Certificate of Organization or the Operating
Agreement of the Seller, (b) require on the part of the Seller any notice
to or filing with, or any permit, authorization, consent or approval of, any
Governmental Entity, (c) conflict with, result in a breach of, constitute
(with or without due notice or lapse of time or both) a default under, result
in the acceleration of obligations under, create in any party the right to
terminate, modify or cancel, or require any notice, consent or waiver under,
any contract or instrument to which the Seller is a party or by which the
Seller is bound or to which any of its assets are subject, (d) result in
the imposition of any Security Interest upon any assets of the Seller or
(e) violate any order, writ, injunction, decree, statute, rule or regulation
applicable to the Seller or any of its properties or assets.

2.4                                 Subsidiaries.  The
Seller does not control directly or indirectly or have any direct or indirect
equity participation or similar interest in any corporation, partnership,
limited liability company, joint venture, trust or other business association
or entity.

2.5                                 Financial
Statements.  The Seller has provided to the Buyer the
Financial Statements.  The Financial
Statements fairly present the financial position of the Seller as of the dates
thereof, consistent with the books and records of the Seller.  Since the Most Recent Balance Sheet Date,
there has occurred no event or development which, individually or in the
aggregate, has had, or could reasonably be expected to have in the future, a
Seller Material Adverse Effect.

2.6                                 Undisclosed
Liabilities.  The Seller has no liability (whether known or
unknown, whether absolute or contingent, whether liquidated or unliquidated and
whether due or to become due), except for (a) liabilities shown on the
Most Recent Balance Sheet, (b) liabilities which have arisen since the
Most Recent Balance Sheet Date in the Ordinary Course of Business and
(c) contractual and other liabilities incurred in the Ordinary Course of
Business which are not required by GAAP to be reflected on a balance sheet.

2.7                                 Tax Matters.

(a)                                  The Seller has
properly filed on a timely basis all Tax Returns that it was required to file,
and all such Tax Returns were true, correct and complete.  The Seller has paid on a timely basis all
Taxes that were due and payable. The Seller has at all times since its
formation been treated as a partnership for income Tax purposes.  The Seller does not have any actual or
potential liability as a transferee or successor, pursuant to any contractual obligation,
or otherwise for any Taxes of any person other than the Seller. The Seller is
not a party to or bound by any Tax indemnity, Tax sharing, Tax allocation or
similar agreement.    All Taxes that the
Seller was required by law to withhold or collect have been duly withheld or
collected and, to the extent required, have been properly paid to the
appropriate Governmental Entity.

(b)                                 There are no liens or
other encumbrances with respect to Taxes upon any of the assets or properties
of the Seller, other than with respect to Taxes not yet due and payable.

 5
 

2.8                                 Ownership and
Condition of Assets.

(a)                                  The Seller is the
true and lawful owner, and has good title to, all of the Acquired Assets, free
and clear of all Security Interests, except as set forth in Section 2.8(a)(i)
of the Disclosure Schedule.  Upon
execution and delivery by the Seller to the Buyer of the instruments of
conveyance referred to in Section 1.5(b)(iii), the Buyer will become the true
and lawful owner of, and will receive good title to, the Acquired Assets, free
and clear of all Security Interests other than those set forth in Section
2.8(a)(ii) of the Disclosure Schedule.

(b)                                 The Acquired Assets
are sufficient for the conduct of the Acquired Business as presently conducted
and constitute all assets used by the Seller in such business.  Each tangible Acquired Asset is free from
material defects, has been maintained in accordance with normal industry
practice, is in good operating condition and repair (subject to normal wear and
tear) and is suitable for the purposes for which it presently is used.

2.9                                 Intellectual
Property.

(a)                                  Seller
Registrations.  Section 2.9(a)
of the Disclosure Schedule lists all Seller Registrations, in each case
enumerating specifically the applicable filing or registration number, title,
jurisdiction in which filing was made or from which registration issued, date
of filing or issuance, names of all current applicant(s) and registered
owners(s), as applicable.  All
assignments of Seller Registrations to the Seller have been properly executed
and recorded.  To the knowledge of the
Seller, all Seller Registrations are valid and enforceable and all issuance,
renewal, maintenance and other payments that are or have become due with respect
thereto have been timely paid by or on behalf of the Seller.

(b)                                 Prosecution
Matters.  There are no
inventorship challenges, opposition or nullity proceedings or interferences
declared, commenced or provoked, or to the knowledge of the Seller threatened,
with respect to any Patent Rights included in the Seller Registrations.   The Seller has complied with its duty of
candor and disclosure to the United States Patent and Trademark Office and any
relevant foreign patent office with respect to all patent and trademark
applications filed by or on behalf of the Seller and has made no material
misrepresentation in such applications.  
The Seller has no knowledge of any information that would preclude the
Seller from having clear title to the Seller Registrations or affecting the
patentability or enforceability of any Seller Registrations.

(c)                                  Ownership;
Sufficiency.  Each item of
Seller Intellectual Property will be owned or available for use by the Buyer
immediately following the Closing on substantially identical terms and
conditions as it was immediately prior to the Closing.  The Seller is the sole and exclusive owner of
all Seller Owned Intellectual Property, free and clear of any Security
Interests and all joint owners of the Seller Owned Intellectual Property are
listed in Section 2.9(c) of the Disclosure Schedule.  The Seller Intellectual Property constitutes
all Intellectual Property necessary (i) to Exploit the Acquired Assets in the
manner so done currently, (ii) to Exploit the Internal Systems as they are
currently used, and (iii) otherwise to conduct the Acquired Business in all
material respects in the manner currently conducted.

(d)                                 Protection Measures. 
The Seller has taken reasonable measures to protect the proprietary
nature of each item of Seller Owned Intellectual Property, and to maintain in
confidence all trade secrets and confidential information comprising a part
thereof.   The Seller has complied with
all applicable contractual and legal requirements pertaining to information
privacy and security as they relate to Seller Intellectual Property.  No complaint relating to an improper use or
disclosure of, or a breach in the security of, any Seller Intellectual Property
has been made or, to the knowledge of the Seller, threatened against the Seller.  To the knowledge of the Seller, there has
been no (i) unauthorized disclosure of any third party proprietary or
confidential information relating to 

 6
 

the Acquired Business or the Acquired Assets
in the possession, custody or control of the Seller or (ii) breach of the
Seller’s security procedures wherein confidential information has been
disclosed to a third person.

(e)                                  Infringement
by Seller.  To the knowledge
of the Seller, neither the Patent Rights included in the Acquired Assets nor
the Exploitation thereof by the Seller or by any reseller, distributor,
customer or user thereof, or any other activity of the Seller related thereto,
infringes or violates, or constitutes a misappropriation of, any Intellectual
Property rights of any third party.  Subject
to the foregoing sentence, none of the Acquired Assets, or the Exploitation
thereof by the Seller or by any reseller, distributor, customer or user
thereof, or any other activity of the Seller related thereto, infringes or
violates, or constitutes a misappropriation of, any Intellectual Property
rights of any third party.  Section
2.9(e) of the Disclosure Schedule lists any complaint, claim or notice, or
threat of any of the foregoing (including any notification that a license under
any patent is or may be required), received by the Seller alleging any such
infringement, violation or misappropriation and any request or demand for
indemnification or defense received by the Seller from any reseller,
distributor, customer, user or any other third party; and the Seller has
provided to the Buyer copies of all such complaints, claims, notices, requests,
demands or threats, as well as any legal opinions, studies, market surveys and
analyses relating to any alleged or potential infringement, violation or
misappropriation.

(f)                                    Infringement of Rights. To the knowledge of the Seller, no
person (including, without limitation, any current or former employee or
consultant of Seller) is infringing, violating or misappropriating any of the
Seller Owned Intellectual Property or any Seller Licensed Intellectual Property
which is exclusively licensed to the Seller. 
The Seller has provided to the Buyer copies of all correspondence,
analyses, legal opinions, complaints, claims, notices or threats concerning the
infringement, violation or misappropriation of any Seller Owned Intellectual
Property.

(g)                                 Outbound IP
Agreements.  Section 2.9(g) of
the Disclosure Schedule identifies each license, covenant or other agreement
pursuant to which the Seller has assigned, transferred, licensed, distributed
or otherwise granted any right or access to any person, or covenanted not to
assert any right, with respect to any past, existing or future Seller
Intellectual Property.  The Seller has
not agreed to indemnify any person other than the Buyer against any
infringement, violation or misappropriation of any Intellectual Property rights
with respect to any Acquired Assets or any third party Intellectual Property
rights.  The Seller is not a member of or
party to any patent pool, industry standards body, trade association or other
organization pursuant to the rules of which it is obligated to license any
existing or future Seller Intellectual Property to any person.

(h)                                 Inbound IP
Agreements.  Section 2.9(h) of
the Disclosure Schedule identifies (i) each item of Seller Licensed Intellectual
Property and the license or agreement pursuant to which the Seller Exploits it
(excluding currently-available, off the shelf software programs that are part
of the Internal Systems and are licensed by the Seller pursuant to “shrink wrap”
licenses, the total fees associated with which are less than $2,500) and (ii)
each agreement, contract, assignment or other instrument pursuant to which the
Seller has obtained any joint or sole ownership interest in or to each item of
Seller Owned Intellectual Property.  No
third party inventions, methods, services, materials, processes or Software are
included in or required to Exploit the Acquired Assets.  None of the Acquired Assets includes “shareware,”
“freeware” or other Software or other material that was obtained by the Seller
from third parties other than pursuant to the license agreements listed in
Section 2.9(h) of the Disclosure Schedule.

(i)                                     Source Code.  The
Seller has not licensed, distributed or disclosed, and knows of no distribution
or disclosure by others (including its employees and contractors) of, the
Seller Source Code to any person, other than Buyer, except pursuant to the
agreements listed in Section 2.9(i) of the Disclosure Schedule, and the Seller
has taken all reasonable physical and electronic security measures to prevent
disclosure of such Seller 

 7
 

Source Code. To the knowledge of the Seller,
no event has occurred, and no circumstance or condition exists, that (with or
without notice or lapse of time, or both) will, or would reasonably be expected
to, nor will the consummation of the transactions contemplated hereby, result
in the disclosure or release of such Seller Source Code by the Seller, its
escrow agent(s) or any other person to any third party.

(j)                                     Authorship.  All of
the Software and Documentation comprising, incorporated in or bundled with the
Acquired Assets or Internal Systems have been designed, authored, tested and
debugged by regular employees of the Seller within the scope of their
employment or by independent contractors of the Seller who have executed valid
and binding agreements expressly assigning all right, title and interest in
such copyrightable materials to the Seller, waiving their non-assignable rights
(including moral rights) in favor of the Seller and its permitted assigns and
licensees, and have no residual claim to such materials.

(k)                                  Open Source
Code.  Section 2.9(k) of the
Disclosure Schedule lists all Open Source Materials that the Seller has
utilized in any way in the Exploitation of the Software or Documentation
included in the Internal Systems and describes the manner in which such Open
Source Materials have been utilized, including, without limitation, whether and
how the Open Source Materials have been modified and/or distributed by the
Seller.  The Seller has not (i)
incorporated Open Source Materials into, or combined Open Source Materials
with, the Acquired Assets; (ii) distributed Open Source Materials in
conjunction with any other software developed or distributed by the Seller; or
(iii) used Open Source Materials that create, or purport to create, obligations
for the Seller with respect to the Acquired Assets or grant, or purport to
grant, to any third party, any rights or immunities under Intellectual Property
rights (including, but not limited to, using any Open Source Materials that
require, as a condition of Exploitation of such Open Source Materials, that
other Software incorporated into, derived from or distributed with such Open
Source Materials be (x) disclosed or distributed in source code form, (y)
licensed for the purpose of making derivative works, or (z) redistributable at
no charge or minimal charge).

(l)                                     Employee and Contractor Assignments.  Each employee of the Seller and each
independent contractor of the Seller who has created any portion of the
Acquired Assets has executed a valid and binding written agreement expressly
assigning to the Seller all right, title and interest in any inventions and
works of authorship, whether or not patentable, invented, created, developed,
conceived and/or reduced to practice during the term of such employee’s
employment or such independent contractor’s work for the Seller, and all
Intellectual Property rights therein, and has waived all moral rights therein
to the extent legally permissible.

(m)                               Quality.  The Acquired Assets are free from significant
defects (defined, in the case of the Software, as defects that would prevent
the Software substantially from fulfilling its fundamental purpose) in design,
workmanship and materials. The Acquired Assets and the Internal Systems do not
contain any disabling device, virus, worm, back door, Trojan horse or other
disruptive or malicious code that may or are intended to impair their intended
performance or otherwise permit unauthorized access to, hamper, delete or damage
any computer system, software, network or data.

(n)                                 Support and
Funding.  Except as set forth
in Section 2.9(n) of the Disclosure Schedule, the Seller has neither sought,
applied for nor received any support, funding, resources or assistance from any
federal, state, local or foreign governmental or quasi-governmental agency or
funding source in connection with the Exploitation of the Acquired Assets, the
Internal Systems or any facilities or equipment used in connection therewith.

 8
 

2.10                           Contracts.

(a)                                  Section 2.10 of
the Disclosure Schedule lists all contracts or agreements (written or oral) to
which the Seller is a party as of the date of this Agreement including, without
limitation:

(i)                                     any agreement (or
group of related agreements) for the lease of personal property;

(ii)                                  any agreement (A)
which calls for performance over a period of more than one year, (B) which
involves more than the sum of $10,000, or (C) in which the Seller has granted “most
favored nation” pricing provisions or marketing or distribution rights;

(iii)                               any agreement under
which the Seller has granted to a third party any license, assignment or other
transfer of rights or interests (including any covenants not to assert rights)
in or to Seller Intellectual Property;

(iv)                              any agreement for the
disposition of any significant portion of the assets or business of the Seller;

(v)                                 any agreement
concerning exclusivity or confidentiality;

(vi)                              any employment or
consulting agreement relating to individuals who have created any portion of
the Acquired Assets;

(vii)                           any agreement involving any
current or former officer, director or member of the Seller or an Affiliate
thereof;

(viii)                        any agreement under which the
consequences of a default or termination would reasonably be expected to have a
Seller Material Adverse Effect;

(ix)                                any agreement which
contains any provisions requiring the Seller to indemnify any other party
(excluding indemnities contained in agreements for the purchase, sale or
license of products entered into in the Ordinary Course of Business);

(x)                                   any agreement that
could reasonably be expected to have the effect of prohibiting or impairing the
conduct of the Acquired Business of the Seller or the Buyer or any of its
subsidiaries;

(xi)                                any agreement under
which the Seller or any of its Affiliates is restricted from selling, licensing
or otherwise distributing any of its technology or products, or providing
services to, customers or potential customers or any class of customers, in any
geographic area, during any period of time or any segment of the market or line
of business;

(xii)                             any agreement which would
entitle any third party to receive a license or any other right to intellectual
property of the Buyer or any of the Buyer’s Affiliates following the Closing;
and

(xiii)                          any other agreement of Seller
which is not otherwise described in subclauses (i) through (xii) above.

 9
 

(b)                                 The Seller has
delivered to the Buyer a complete and accurate copy of each agreement listed in
Section 2.9 or Section 2.10 of the Disclosure Schedule.  With respect to each agreement so listed,
(i) the agreement is legal, valid, binding and enforceable and in full
force and effect; (ii) the agreement is assignable by the Seller to the
Buyer without the consent or approval of any party (except as set forth in Section 2.3
of the Disclosure Schedule) and will continue to be legal, valid, binding and
enforceable and in full force and effect immediately following the Closing in
accordance with the terms thereof as in effect immediately prior to the
Closing; and (iii) neither the Seller nor, to the knowledge of the Seller,
any other party, is in breach or violation of, or default under, any such
agreement, and no event has occurred, is pending or, to the knowledge of the
Seller, is threatened, which, after the giving of notice, with lapse of time,
or otherwise, would constitute a breach or default by the Seller or, to the
knowledge of the Seller, any other party under such agreement.

2.11                           Litigation. 
There is no Legal Proceeding which is pending or has been threatened in
writing against the Seller that relates in any way to the Acquired Business,
the Acquired Assets or the transactions contemplated by this Agreement.  There are no judgments, orders or decrees
outstanding against the Seller.

2.12                           Employees and Employee
Benefits.

(a)                                  Section 2.12 of the
Disclosure Schedule contains a list of all employees of the Seller, along with
the position and the annual rate of compensation of each such person.  Section 2.12 of the Disclosure Schedule
contains a list of all employees of the Seller who are a party to a
non-competition agreement with the Seller; copies of such agreements have
previously been delivered to the Buyer. Section 2.12 of the Disclosure Schedule
contains a list of all employees of the Seller who are not citizens of the
United States.

 (b)                              The Seller has complied
with all federal, state and local laws relating to the hiring and
classification of employees and the employment of labor, including provisions
thereof relating to wages, hours, equal opportunity, collective bargaining and
the payment of social security and other Taxes. 
The Seller is not delinquent in payments to any of its employees for any
wages, salaries, commissions, bonuses or other direct compensation for any services
performed by them or amounts required to be reimbursed to such employees and
upon any termination of the employment of any such employees.

(c)                                  Except
as set forth in Section 2.12 of the Disclosure Schedule, the Seller does not
maintain or contribute to, or have any obligation to contribute to, any
Employee Benefit Plan or any other material perquisite or benefit to officers,
employees or consultants of the Seller.

2.13                           Environmental Matters. 
The Seller has complied with all applicable Environmental Laws.  There is no pending or, to the knowledge of
the Seller, threatened civil or criminal litigation, written notice of
violation, formal administrative proceeding, or investigation, inquiry or
information request by any Governmental Entity, relating to any Environmental
Law involving the Seller.  The Seller has
no liabilities or obligations arising from the release of any Materials of
Environmental Concern into the environment.

2.14                           Legal Compliance. 
The Seller is currently conducting, and has at all times since its
formation conducted, the Acquired Business in compliance with each applicable
law (including rules and regulations thereunder) of any federal, state, local
or foreign government, or any Governmental Entity.  The Seller has not received any notice or
communication from any Governmental Entity alleging noncompliance with any applicable law, rule or regulation
related to the Acquired Business or Acquired Assets.  The Seller has not received any proceeds
under the Small Business Technology Transfer grant listed in Section 2.10(xiii)
of the Disclosure Schedule (the “Grant”). Until the Seller draws funding under
the Grant, the Seller is not deemed to have accepted the Grant award and
therefore has no obligations under the Grant terms and conditions.

 10
 

2.15                           Permits.  Section
2.15 of the Disclosure Schedule sets forth a list of all Permits issued to or
held by the Seller relating to the Acquired Business or Acquired Assets.  Such listed Permits are the only Permits that
are required for the Seller to conduct the Acquired Business and Acquired Assets
as presently conducted.  Each such Permit
is in full force and effect; the Seller is in compliance with the terms of each
such Permit; and, to the knowledge of the Seller, no suspension or cancellation
of such Permit is threatened and there is no basis for believing that such
Permit will not be renewable upon expiration. 
Each such Permit is assignable by the Seller to the Buyer without the
consent or approval of any party (other than consents or approvals listed in
Section 2.15 of the Disclosure Schedule) and will continue in full force and
effect immediately following the Closing.

2.16                           Certain Business
Relationships With Affiliates.  Except as set forth in Section 2.16 of the
Disclosure Schedule, no Affiliate of the Seller (a) owns any property or right,
tangible or intangible, which is used in the Acquired Business or with the
Acquired Assets, (b) has any claim or cause of action against the Seller
with respect to the Acquired Business or Acquired Assets, or (c) owes any
money to, or is owed any money by, the Seller with respect to the Acquired
Business.  Section 2.16 of the Disclosure
Schedule describes any transactions or relationships between the Seller and any
Affiliate thereof which occurred or have existed since the beginning of the
time period covered by the Financial Statements.

2.17                           Brokers’ Fees.  The
Seller has no liability or obligation to pay any fees or commissions to any
broker, finder or agent with respect to the transactions contemplated by this
Agreement.

2.18                           Disclosure.  No
representation or warranty by the Seller and the Primary Member contained in
this Agreement, and no statement contained in the Disclosure Schedule or any
other document, certificate or other instrument delivered or to be delivered by
or on behalf of the Seller pursuant to this Agreement, contains or will contain
any untrue statement of a material fact or omits or will omit to state any
material fact necessary, in light of the circumstances under which it was or
will be made, in order to make the statements herein or therein not misleading.

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF THE BUYER

The Buyer represents and warrants to the Seller and
the Primary Member that the statements contained in this Article III are true
and correct as of the date of this Agreement.

3.1                                 Organization and
Corporate Power.  The Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of
Delaware.  The Buyer has all requisite
corporate power and authority to carry on the businesses in which it is engaged
and to own and use the properties owned and used by it.

3.2                                 Authorization of
the Transaction.  The Buyer has all requisite power and
authority to execute and deliver this Agreement and the Ancillary Agreements
and to perform its obligations hereunder and thereunder.  The execution and delivery by the Buyer of
this Agreement and the Ancillary Agreements and the consummation by the Buyer
of the transactions contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate action on the part of the Buyer.  This Agreement has been duly and validly
executed and delivered by the Buyer and constitutes a valid and binding
obligation of the Buyer, enforceable against it in accordance with its terms.

3.3                                 Noncontravention. 
Neither the execution and delivery by the Buyer of this Agreement or the
Ancillary Agreements, nor the consummation by the Buyer of the transactions
contemplated hereby or thereby, will (a) conflict with or violate any
provision of the Certificate of Incorporation or by-laws of the Buyer,
(b) require on 

 11
 

the part of the Buyer any filing with, or
permit, authorization, consent or approval of, any Governmental Entity, except
for such filings with the SEC as the Buyer may deem necessary and required,
(c) conflict with, result in breach of, constitute (with or without due
notice or lapse of time or both) a default under, result in the acceleration of
obligations under, create in any party any right to terminate, modify or
cancel, or require any notice, consent or waiver under, any contract or
instrument to which the Buyer is a party or by which it is bound or to which
any of its assets is subject, except for (i) any conflict, breach, default,
acceleration, termination, modification or cancellation which would not
adversely affect the consummation of the transactions contemplated hereby or
(ii) any notice, consent or waiver the absence of which would not adversely
affect the consummation of the transactions contemplated hereby, or
(d) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to the Buyer or any of its properties or assets.  

3.4                                 Litigation.  There
is no Legal Proceeding which is pending or has been threatened in writing
against the Buyer that relates in any way to the transactions contemplated by
this Agreement.

3.5                                 Brokers’ Fees.  The
Buyer has no liability or obligation to pay any fees or commissions to any
broker, finder or agent with respect to the transactions contemplated by this
Agreement.

ARTICLE IV

CONDITIONS
TO CLOSING

4.1                                 Conditions to
Obligations of the Buyer.  The obligation of the Buyer to consummate the
transactions contemplated by this Agreement to be consummated at the Closing is
subject to the satisfaction of the following additional conditions:

(a)                                  the Seller shall have
delivered to the Buyer documents evidencing the release or termination of all
Security Interests on the Acquired Assets, and copies of filed UCC termination
statements with respect to all UCC financing statements evidencing Security
Interests, other than Security Interests which are listed in Section 2.8(a)(ii)
of the Disclosure Schedule under the heading “Permitted Security Interests”;

(b)                                 the Buyer shall have
received such certificates and instruments (including certificates of good
standing of the Seller in its jurisdiction of organization and the various
foreign jurisdictions in which it is qualified, certified charter documents,
certificates as to the incumbency of officers and the adoption of authorizing
resolutions) as it shall reasonably request in connection with the Closing; and

(c)                                  the Primary Member
shall have executed an employment agreement (the “Employment Agreement”) with
the Buyer.

4.2                                 Conditions to
Obligations of the Seller.  The obligation of the Seller to consummate
the transactions contemplated by this Agreement to be consummated at the
Closing is subject to the Seller’s receipt of such certificates and instruments
(including certificates of good standing of the Buyer in its jurisdiction of
organization, certificates as to the incumbency of officers and the adoption of
authorizing resolutions) as it shall reasonably request in connection with the
Closing, as well as to the Buyer’s executing the Employment Agreement with the
Primary Member.

 12
 

ARTICLE V

POST-CLOSING
COVENANTS

5.1                                 Proprietary
Information.  Except in the course of bona fide employment
with the Buyer, from and after the Closing, the Seller and the Primary Member
shall not disclose or make use of (except to pursue their rights under this
Agreement or the Ancillary Agreements), and shall use their best efforts to
cause all of their respective Affiliates, employees and consultants not to
disclose or make use of, any knowledge, information or documents of a
confidential nature or not generally known to the public with respect to
Acquired Assets, the Acquired Business or the Buyer or its business, except to
the extent that such knowledge, information or documents shall have become
public knowledge other than through improper disclosure by the Seller, the
Primary Member or any of their respective Affiliates.  The Seller shall enforce, for the benefit of
the Buyer, and at Buyer’s request and expense, all confidentiality,
non-disclosure, invention assignments and similar agreements between the Seller
and any other party relating to the Acquired Assets or the Acquired Business of
the Seller, which are not Assigned Contracts.

5.2                                 Non-Competition.

(a)                                  During the
Non-Competition Period, neither the Seller nor the Primary Member shall, either
directly or indirectly as a stockholder, investor, partner, consultant or
otherwise, (A) design, develop, manufacture, market, sell or license any
product or provide any service anywhere in the world which is competitive with
any product designed, developed (or under development), manufactured, sold or
licensed or any service provided by the Seller prior to the Closing Date (other
than the Retained Business), or (B) engage anywhere in the world in any
business competitive with the business of the Seller prior to the Closing Date
(other than the Retained Business).  The
Seller shall enforce, for the benefit of the Buyer, all non-competition and
similar agreements between the Seller and any other party which are not
Assigned Contracts.

(b)                                 The Seller and the
Primary Member agree that the duration and geographic scope of the
non-competition provision set forth in this Section 5.2 are
reasonable.  In the event that any court
determines that the duration or the geographic scope, or both, are unreasonable
and that such provision is to that extent unenforceable, the Parties agree that
the provision shall remain in full force and effect for the greatest time
period and in the greatest area that would not render it unenforceable.  The Parties intend that this non-competition
provision shall be deemed to be a series of separate covenants, one for each
and every county of each and every state of the United States of America and
each and every political subdivision of each and every country outside the
United States of America where this provision is intended to be effective.

5.3                                 Tax Matters.

(a)                                  All transfer taxes
and similar charges related to the sale of the Acquired Assets contemplated by
this Agreement shall be paid by the Seller.

(b)                                 All Sales Taxes shall
be paid by the Buyer.

(c)                                  Notwithstanding
any other provision in this Agreement, the Buyer shall have the right to deduct
and withhold Taxes for which the Seller is responsible from any payments to be
made pursuant to this Agreement or any other agreement executed in connection
with this Agreement if such withholding is required by law, and to collect any
necessary Tax forms, including Forms W-8 or W-9, as applicable, or any similar
information, from Seller and any other recipients of payments under this
Agreement or any other agreement in connection with this Agreement.  Any payments so withheld will be paid by the
Buyer to the appropriate Governmental Entity as and when required by law.  To the extent that amounts are so withheld
and timely paid to 

 13
 

the appropriate Governmental Entity, such
withheld amounts shall be treated for all purposes of this Agreement or any
other agreements in connection with this Agreement as having been delivered and
paid to the Seller or any other recipient of payments in respect of which such
deduction and withholding were made.

5.4                                 Sharing of Data.

(a)                                  The Seller shall have
the right for a period of seven years following the Closing Date to have
reasonable access to such books, records and accounts that are transferred to
the Buyer pursuant to the terms of this Agreement for the limited purposes of
concluding its involvement in the Acquired Business.  The Buyer shall have the right for a period
of seven years following the Closing Date to have reasonable access to those
books, records and accounts that are retained by the Seller pursuant to the
terms of this Agreement to the extent that any of the foregoing is needed by
the Buyer for the purpose of conducting the Acquired Business after the
Closing.  Neither the Buyer nor the
Seller shall destroy any such books, records or accounts retained by it without
first providing the other Party with the opportunity to obtain or copy such
books, records, or accounts at such other Party’s expense.

(b)                                 Promptly upon request
by the Buyer made at any time following the Closing Date, the Seller shall
authorize the release to the Buyer of all files pertaining to the Acquired
Assets or the Acquired Business held by any federal, state, county or local
authorities, agencies or instrumentalities.

ARTICLE
VI

INDEMNIFICATION

6.1                                 Indemnification by
the Seller and the Primary Member.  The Seller and the Primary Member shall
jointly and severally indemnify the Buyer in respect of, and hold the Buyer
harmless against, Damages incurred or suffered by the Buyer or any Affiliate
thereof resulting from, relating to or constituting:

(a)                                  any breach of any
representation or warranty of the Seller or the Primary Member contained in
this Agreement, any Ancillary Agreement or any other agreement or instrument
furnished by the Seller or the Primary Member to the Buyer pursuant to this
Agreement;

(b)                                 any failure to perform
any covenant or agreement of the Seller or the Primary Member contained in this
Agreement, any Ancillary Agreement or any agreement or instrument furnished by
the Seller or the Primary Member to the Buyer pursuant to this Agreement; or

(c)                                  any Retained
Liabilities.

6.2                                 Indemnification by
the Buyer.  The Buyer shall indemnify the Seller and the
Primary Member in respect of, and hold them harmless against, any and all
Damages incurred or suffered by the Seller or the Primary Member resulting
from, relating to or constituting:

(a)                                  any breach of any
representation or warranty of the Buyer contained in this Agreement, any
Ancillary Agreement or any other agreement or instrument furnished by the Buyer
to the Seller or the Primary Member pursuant to this Agreement;

(b)                                 any failure to perform
any covenant or agreement of the Buyer contained in this Agreement, any
Ancillary Agreement or any other agreement or instrument furnished by the Buyer
to the Seller or the Primary Member pursuant to this Agreement;

 14
 

(c)                                  any Assumed
Liabilities; or

(d)                                 any Sales Taxes to
which Seller may be obligated as a result of Buyer’s failure to pay such Sales
Taxes pursuant to Section 5.3(b).

6.3                                 Indemnification
Claims.

(a)                                  An Indemnified Party
shall give written notification to the Indemnifying Party of the commencement
of any Third Party Action.  Such
notification shall be given within 20 days after receipt by the Indemnified
Party of notice of such Third Party Action, and shall describe in reasonable
detail (to the extent known by the Indemnified Party) the facts constituting
the basis for such Third Party Action and the amount of the claimed damages;
provided, however, that no delay or failure on the part of the Indemnified
Party in so notifying the Indemnifying Party shall relieve the Indemnifying
Party of any liability or obligation hereunder except to the extent of any
damage or liability caused by or arising out of such failure.  Within 20 days after delivery of such
notification, the Indemnifying Party may, upon written notice thereof to the
Indemnified Party, assume control of the defense of such Third Party Action
with counsel reasonably satisfactory to the Indemnified Party; provided that
(i) the Indemnifying Party may only assume control of such defense if it
acknowledges in writing to the Indemnified Party that any damages, fines, costs
or other liabilities that may be assessed against the Indemnified Party in
connection with such Third Party Action constitute Damages for which the
Indemnified Party shall be indemnified pursuant to this Article VI and
(ii) the Indemnifying Party may not assume control of the defense of Third
Party Action involving criminal liability or in which equitable relief is
sought against the Indemnified Party.  If
the Indemnifying Party does not, or is not permitted under the terms hereof to,
so assume control of the defense of a Third Party Action, the Indemnified Party
shall control such defense.  The
Non-controlling Party may participate in such defense at its own expense.  The Controlling Party shall keep the
Non-controlling Party advised of the status of such Third Party Action and the
defense thereof and shall consider in good faith recommendations made by the Non-controlling
Party with respect thereto.  The
Non-controlling Party shall furnish the Controlling Party with such information
as it may have with respect to such Third Party Action (including copies of any
summons, complaint or other pleading which may have been served on such party
and any written claim, demand, invoice, billing or other document evidencing or
asserting the same) and shall otherwise cooperate with and assist the
Controlling Party in the defense of such Third Party Action.  The fees and expenses of counsel to the
Indemnified Party with respect to a Third Party Action shall be considered
Damages for purposes of this Agreement if (i) the Indemnified Party controls
the defense of such Third Party Action pursuant to the terms of this Section
6.3(a) or (ii) the Indemnifying Party assumes control of such defense and the
Indemnified Party reasonably concludes that the Indemnifying Party and the
Indemnified Party have conflicting interests or different defenses available
with respect to such Third Party Action. 
The Indemnifying Party shall not agree to any settlement of, or the
entry of any judgment arising from, any Third Party Action without the prior
written consent of the Indemnified Party, which shall not be unreasonably
withheld, conditioned or delayed; provided that the consent of the Indemnified
Party shall not be required if the Indemnifying Party agrees in writing to pay
any amounts payable pursuant to such settlement or judgment and such settlement
or judgment includes a complete release of the Indemnified Party from further liability
and has no other adverse effect on the Indemnified Party.  The Indemnified Party shall not agree to any
settlement of, or the entry of any judgment arising from, any such Third Party
Action without the prior written consent of the Indemnifying Party, which shall
not be unreasonably withheld, conditioned or delayed.

(b)                                 In order to seek
indemnification under this Article VI, an Indemnified Party shall deliver a
Claim Notice to the Indemnifying Party.

 15

(c)                                  Within
20 days after delivery of a Claim Notice, the Indemnifying Party shall deliver
to the Indemnified Party a Response, in which the Indemnifying Party shall
(i) agree that the Indemnified Party is entitled to receive all of the
Claimed Amount (in which case the Response shall be accompanied by a payment by
the Indemnifying Party to the Indemnified Party of the Claimed Amount, by check
or by wire transfer), (ii) agree that the Indemnified Party is entitled to
receive the Agreed Amount (in which case the Response shall be accompanied by a
payment by the Indemnifying Party to the Indemnified Party of the Agreed
Amount, by check or by wire transfer) or (iii) dispute that the
Indemnified Party is entitled to receive any of the Claimed Amount.

(d)                                 During
the 30-day period following the delivery of a Response that reflects a Dispute,
the Indemnifying Party and the Indemnified Party shall use good faith efforts
to resolve the Dispute.  If the Dispute
is not resolved within such 30-day period, such Dispute shall be resolved in a
state or federal court sitting in the Commonwealth of Massachusetts, in
accordance with Section 9.12.

(e)                                  Notwithstanding
the other provisions of this Section 6.3, if a third party asserts (other
than by means of a lawsuit) that an Indemnified Party is liable to such third
party for a monetary or other obligation which may constitute or result in
Damages for which such Indemnified Party may be entitled to indemnification
pursuant to this Article VI, and such Indemnified Party reasonably determines
that it has a valid business reason to fulfill such obligation, then
(i) such Indemnified Party shall be entitled to satisfy such obligation,
with prior notice to and consent from the Indemnifying Party (provided that (A)
such notice and/or consent shall not be required where commercially
impracticable, (B) such consent shall not be unreasonably withheld, conditioned
or delayed and (C) if such consent is not granted, then any additional damages
incurred by Indemnified Party as a result of such failure to consent shall be
considered Damages for purposes of this Agreement), (ii) such Indemnified
Party may subsequently make a claim for indemnification in accordance with the
provisions of this Article VI, and (iii) such Indemnified Party shall
be reimbursed, in accordance with the provisions of this Article VI, for
any such Damages for which it is entitled to indemnification pursuant to this
Article VI (subject to the right of the Indemnifying Party to dispute the
Indemnified Party’s entitlement to indemnification, or the amount for which it
is entitled to indemnification, under the terms of this Article VI).

6.4                                 Survival of
Representations and Warranties.  All representations and warranties that are
covered by the indemnification agreements in Section 6.1(a) and Section 6.2(a)
shall (a) survive the Closing and (b) shall expire on the date 24
months following the Closing Date, except that (i) the representations and
warranties set forth in Sections 2.1, 2.2, 3.1 and 3.2 shall survive the
Closing without limitation and (ii) the representations and warranties set
forth in Section 2.7 shall survive until 30 days following expiration
of all statutes of limitation applicable to the matters referred to
therein.  If an Indemnified Party
delivers to an Indemnifying Party, before expiration of a representation or
warranty, either a Claim Notice based upon a breach of such representation or
warranty, or an Expected Claim Notice based upon a breach of such
representation or warranty, then the applicable representation or warranty
shall survive until, but only for purposes of, the resolution of the matter
covered by such notice.  If the legal
proceeding or written claim with respect to which an Expected Claim Notice has
been given is definitively withdrawn or resolved in favor of the Indemnified
Party, the Indemnified Party shall promptly so notify the Indemnifying
Party.  The rights to indemnification set
forth in this Article VI shall not be affected by any investigation conducted
by or on behalf of an Indemnified Party or any knowledge acquired (or capable
of being acquired) by an Indemnified Party, whether before or after the date of
this Agreement, with respect to the inaccuracy or noncompliance with any
representation, warranty, covenant or obligation which is the subject of
indemnification hereunder.

 16
 

6.5                                 Limitations.

(a)          Notwithstanding anything to the contrary
herein, the Seller and the Primary Member shall be liable for only (i) any
single claim or related group of claims that exceeds $10,000  and (ii) that portion
of the aggregate Damages under Section 6.1(a) for which they would otherwise be
liable which exceeds $100,000; provided that the limitation set forth in this
sentence shall not apply to a claim pursuant to Section 6.1(a) relating to
a breach of the representations and warranties set forth in Sections 2.1,
2.3 or 2.7.  For purposes solely of this
Article VI, all representations and warranties of the Seller in
Article II (other than Sections 2.5 and 2.18) shall be construed as
if the term “material” and any reference to “Seller Material Adverse Effect”
(and variations thereof) were omitted from such representations and warranties.

(b)         Notwithstanding anything to the contrary
herein, the Buyer shall be liable for only (i) any single claim or related
group of claims that exceeds $10,000 and (ii) that portion of the aggregate
Damages under Section 6.2(a) for which it would otherwise be liable which
exceeds $100,000; provided that the limitation set forth in this sentence shall
not apply to a claim pursuant to Section 6.2(a) relating to a breach of the
representations and warranties set forth in Sections 3.1 or 3.2. For
purposes solely of this Article VII, all representations and warranties of
the Buyer in Article III shall be construed as if the term “material” were
omitted from such representations and warranties.

(c)          The Buyer shall
have the right to offset any Damages for which it is entitled to
indemnification under this Agreement against any milestone consideration
otherwise payable to the Seller under Section 1.4 of this Agreement.  However, the rights of the Buyer to offset
such milestone consideration shall not be the exclusive means for the Buyer to
enforce such rights.

(d)         Except with respect to claims based on fraud,
after the Closing, the rights of the Indemnified Parties under this
Article VI shall be the exclusive remedy of the Indemnified Parties with
respect to claims resulting from or relating to any misrepresentation, breach
of warranty or failure to perform any covenant or agreement contained in this
Agreement by any Party hereto.

6.6                                 Treatment
of Indemnity Payments.  Any payments made to an Indemnified Party
pursuant to this Article VI shall be treated as an adjustment to the
Purchase Price for tax purposes.

ARTICLE VII

REGISTRATION
RIGHTS

7.1                                 Registration
of Shares.  The Buyer shall file a Registration Statement
with the SEC within 90 days following the completion and satisfaction of each
of the M-Enoxaparin Milestone and the Second Generic Milestone.  The Buyer shall use its best efforts to cause
each Registration Statement to be declared effective by the SEC as soon as
practicable.  The Buyer shall as
expeditiously as possible prepare and file with the SEC any amendments and
supplements to the Registration Statement and the prospectus included in the
Registration Statement as may be necessary to comply with the provisions of the
Securities Act (including the anti-fraud provisions thereof), and shall cause
each Registration Statement to remain effective until the date one (1) year
after the issuance of the Milestone Shares issued in connection with the
completion and satisfaction of the M-Enoxaparin Milestone and the Second
Generic Milestone, as the case may be, or such earlier time as all of the
applicable Milestone Shares covered by such Registration Statement have been
sold pursuant thereto; provided, that such one-year period shall be extended to
30 months in the event that at the termination thereof the Seller is not able
to sell such Milestone Shares pursuant to and in accordance with Rule 144 under
the Securities Act of 1933, as such Rule may then be in effect, or any similar
rule or regulation hereafter adopted by the SEC.

 17
 

7.2                                 Limitations
on Registration Rights.

(a)                                  The
Buyer may, by written notice to the Seller, (i) delay the filing or effectiveness
of any Registration Statement or (ii) suspend any Registration Statement after
effectiveness and require that the Seller immediately cease sales of shares
pursuant to the Registration Statement, in the event that (A) the Buyer files a
registration statement (other than a registration statement on Form S-8 or its
successor form) with the SEC for a public offering of its securities or (B) the
Buyer is engaged in any activity or transaction or preparations or negotiations
for any activity or transaction that the Buyer desires to keep confidential for
business reasons, if the Buyer determines in good faith that the public
disclosure requirements imposed on the Buyer under the Securities Act in
connection with such Registration Statement would require disclosure of such
activity, transaction, preparations or negotiations.  Notwithstanding anything to the contrary
herein, the Buyer shall not exercise its rights under this Section 7.2(a) to
suspend sales of Milestone Shares for a period in excess of 90 days
consecutively or 180 days in any 365-day period.

(b)                                 If
the Buyer delays or suspends any Registration Statement or requires the Seller
to cease sales of shares pursuant to paragraph (a) above, the Buyer shall, as
promptly as practicable following the termination of the circumstance which
entitled the Buyer to do so (or at the end of such 90-day period, whichever
first occurs), take such actions as may be necessary to file or reinstate the
effectiveness of such Registration Statement and/or give written notice to the
Seller authorizing it to resume sales pursuant to such Registration
Statement.  If as a result thereof the
prospectus included in such Registration Statement has been amended to comply
with the requirements of the Securities Act, the Buyer shall enclose such
revised prospectus with the notice to the Seller given pursuant to this
paragraph (b), and the Seller shall make no offers or sales of shares pursuant
to such Registration Statement other than by means of such revised prospectus.

7.3                                 Registration
Procedures.

(a)                                  In
connection with the filing by the Buyer of any Registration Statement, the
Buyer shall furnish to the Seller a copy of the prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act.

(b)                                 The
Buyer shall use its best efforts to register or qualify the applicable
Milestone Shares covered by such Registration Statement under the securities
laws of each state of the United States; provided, however, that the Buyer
shall not be required in connection with this paragraph (b) to qualify as a
foreign corporation or execute a general consent to service of process in any
jurisdiction.

(c)                                  The
Buyer shall, as expeditiously as possible, notify the Seller, promptly after it
shall receive notice thereof, of the time when such Registration Statement has
become effective or a supplement to any prospectus forming a part of such
Registration Statement has been filed.

(d)                                 The
Buyer shall, as expeditiously as possible, cause all such Milestone Shares to
be listed on each securities exchange or automated quotation system on which
similar securities issued by the Buyer are then listed.

(e)                                  The
Buyer shall promptly provide a transfer agent, registrar and CUSIP number for
all such Milestone Shares not later than the effective date of such
registration statement.

(f)                                    If
the Buyer has delivered preliminary or final prospectuses to the Seller and
after having done so the prospectus is amended or supplemented to comply with
the requirements of the Securities Act, the 

 18
 

Buyer shall promptly notify the Seller and, if requested by the Buyer,
the Seller shall immediately cease making offers or sales of shares under such
Registration Statement and return all prospectuses to the Buyer.  The Buyer shall promptly provide the Seller
with revised or supplemented prospectuses and, following receipt of the revised
or supplemented prospectuses, the Seller shall be free to resume making offers
and sales under such Registration Statement.

(g)                                 The
Buyer shall, as expeditiously as possible following the effectiveness of such
Registration Statement, notify the Seller of any request by the SEC for the
amending or supplementing of such Registration Statement or prospectus.

(h)                                 The
Buyer shall pay the expenses incurred by it in complying with its obligations
under this Article VII, including all registration and filing fees, exchange
listing fees, fees and expenses of counsel for the Buyer, and fees and expenses
of accountants for the Buyer, but excluding (i) any brokerage fees, selling commissions
or underwriting discounts incurred by the Seller in connection with sales under
any Registration Statement and (ii) the fees and expenses of any counsel
retained by the Seller.

7.4                                 Requirements
of the Seller.  The Buyer shall not be required to include
any Milestone Shares in any Registration Statement unless:

(a)                                  the
Seller furnishes to the Buyer in writing such information regarding the Seller
and the proposed sale of Milestone Shares by the Seller as the Buyer may
reasonably request in writing in connection with such Registration Statement or
as shall be required in connection therewith by the SEC or any state securities
law authorities;

(b)                                 the
Seller shall have provided to the Buyer its written agreement:

(i)                                     to indemnify the
Buyer and each of its directors and officers against, and hold the Buyer and
each of its directors and officers harmless from, any losses, claims, damages,
expenses or liabilities (including reasonable attorneys fees) to which the
Buyer or such directors and officers may become subject by reason of any
statement or omission in such Registration Statement made in reliance upon, or
in conformity with, a written statement by the Seller furnished pursuant to
this Section 7.4; and

(ii)                                  to report to the
Buyer sales made pursuant to such Registration Statement.

7.5                                 Indemnification. 
The Buyer agrees to indemnify and hold harmless the Seller against any
losses, claims, damages, expenses or liabilities to which the Seller may become
subject by reason of (i) any untrue statement of a material fact contained in
any Registration Statement, any preliminary prospectus or final prospectus
contained in the Registration Statement, or any amendment or supplement to such
Registration Statement, (ii) or any omission to state therein a fact required
to be stated therein or necessary to make the statements therein not
misleading, or (iii) any violation or alleged violation by the Buyer of the
Securities Act, the Exchange Act, any state securities law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any state
securities law in connection with the Registration Statement or the offering
contemplated thereby; except insofar as such losses, claims, damages, expenses
or liabilities arise out of or are based upon information furnished to the
Buyer by or on behalf of the Seller for use in such Registration
Statement.  The Buyer shall have the
right to assume the defense and settlement of any claim or suit for which the
Buyer may be responsible for indemnification under this Section 7.5.

 19
 

7.6                                 Assignment
of Rights.  The Seller may not assign any of its rights
under this Article VII except in connection with the transfer of some or all of
its Milestone Shares to its members pursuant to a pro rata distribution of the
Milestone Shares, provided each such transferee agrees in a written instrument
delivered to the Buyer to be bound by the provisions of this Article VII.

ARTICLE VIII

DEFINITIONS

For purposes of this Agreement, each of the following
terms shall have the meaning set forth below.

 “Acquired
Assets” shall mean the assets, properties and rights of the Seller existing
as of the Closing relating to the Acquired Business, including:

(a)                                  all
computers, hardware and other tangible property containing Seller Intellectual
Property;

(b)                                 all
Seller Intellectual Property, including the right to recover for past
infringement;

(c)                                  all
Internal Systems;

(d)                                 all
rights under Assigned Contracts;

(e)                                  to
the extent that they relate to the foregoing items (a) through (d), all claims,
prepayments, deposits, refunds, causes of action, choses in action, rights of
recovery, rights of setoff and rights of recoupment;

(f)                                    all Permits; and

(g)                                 to
the extent that they relate to the foregoing items (a) through (f), all books,
records, accounts, ledgers, files, documents, correspondence, lists (including
customer and prospect lists), employment records, procedural manuals,
Intellectual Property records, sales and promotional materials, studies,
reports and other printed or written materials.

 “Acquired Business”
shall mean all of the business of the Seller relating to the characterization,
analysis, description or mathematical integration of data related to complex
sugars, glycans, peptides, proteins or other complex mixtures, and all Software
developed or used to enable any of the foregoing.

“Additional M-Enoxaparin Shares” shall have the
meaning set forth in Section 1.4(b).

“Affiliate” shall mean any corporation,
company, partnership, joint venture and/or firm that controls, is controlled
by, or is under common control with a Person. 
For purposes of this definition, “control” shall mean (a) in the case of
corporate entities, direct or indirect ownership of at least fifty percent
(50%) of the stock or shares having the right to vote for the election of directors
and (b) in the case of non-corporate entities, direct or indirect ownership of
at least fifty percent (50%) of the equity interest with the power to direct
the management and policies of such non-corporate entities.  The Parties acknowledge that in the case of
certain entities organized under the laws of certain countries outside the
United States, the maximum percentage ownership permitted by law for a foreign
investor may be less than fifty percent (50%), and that in such case such lower
percentage shall be substituted in the preceding sentence, provided that such
foreign investor has the power to direct the management and policies of such
entity.

 20
 

“Agreed Amount” shall mean part, but not all,
of the Claimed Amount.

“Allocation Schedule” shall have the meaning
set forth in Section 1.6.

“Ancillary Agreements” shall mean the bill of
sale and other instruments of conveyance referred to in
Section 1.5(b)(iii) and the instrument of assumption and other instruments
referred to in Section 1.5(b)(iv).

“Assigned Contracts” shall mean the MIT
Agreement (as defined in the Disclosure Schedule).

“Assumed Liabilities” shall mean all
obligations of the Seller arising after the Closing under the Assigned
Contracts.

“Buyer” shall have the meaning set forth in the
first paragraph of this Agreement.

“Buyer Common Stock” shall mean shares of
common stock of the Buyer, $0.0001 par value per share.

“Capabilities Build Milestone” shall mean the
establishment within 24 months following the Closing Date of a group in Buyer’s
Cambridge location that, to Buyer’s reasonable satisfaction, can achieve all of
the following:

(a) [**] (referred to
herein as “Submilestone A”);

(b) [**] (referred to
herein as “Submilestone B”); and

(c) [**] (referred to
herein as “Submilestone C”).

“Claim Notice” shall mean written notification
which contains (i) a description of the Damages incurred or reasonably expected
to be incurred by the Indemnified Party and the Claimed Amount of such Damages,
to the extent then known, (ii) a statement that the Indemnified Party is
entitled to indemnification under Article VI for such Damages and a reasonable
explanation of the basis therefor, and (iii) a demand for payment in the amount
of such Damages.

“Claimed Amount” shall mean the amount of any
Damages incurred or reasonably expected to be incurred by the Indemnified
Party.

“Closing” shall mean the closing of the
transactions contemplated by this Agreement.

“Closing Date” shall have the meaning set forth
in Section 1.5(a) of this Agreement.

 “Closing
Date Payment” shall have the meaning set forth in Section 1.3(a) of this
Agreement.

“Closing Value” shall mean the average last
reported sale price per share of the Buyer Common Stock over the five
consecutive trading days ending two days prior to the Closing Date.  The Closing Value shall be subject to
equitable adjustment in the event of any stock split, stock dividend, reverse
stock split or similar event affecting the Buyer Common Stock between the
Closing Date and the date of the issuance of such Milestone Shares.

“Code” shall mean the Internal Revenue Code of
1986, as amended.

“Collaboration Agreements” shall mean (a) the
Collaboration Agreement dated as of March 24, 2004 and (b) the Collaboration
Agreement dated as of April 5, 2005, in each case by and between the Buyer and
the Seller.

 21
 

“Controlling Party” shall mean the party
controlling the defense of any Third Party Action.

“Damages” shall mean any and all debts,
obligations and other liabilities (whether absolute, accrued, contingent, fixed
or otherwise, or whether known or unknown, or due or to become due or
otherwise), diminution in value, monetary damages, fines, fees, penalties,
interest obligations, deficiencies, losses and expenses (including amounts paid
in settlement, interest, court costs, costs of investigators, fees and expenses
of attorneys, accountants, financial advisors and other experts, and other
expenses of litigation); provided however that Seller may not make any claims
for diminution in value to the extent Seller can remedy the breach of the
applicable representation or warranty in accordance with the provisions of
Section 1.7 of this Agreement.

“Disclosure Schedule” shall mean the disclosure
schedule provided by the Seller and the Primary Member to the Buyer and
attached hereto.

“Dispute” shall mean the dispute resulting if
the Indemnifying Party in a Response disputes its liability for all or part of
the Claimed Amount.

“Documentation” shall mean printed, visual or
electronic materials, reports, white papers, documentation, specifications,
designs, flow charts, code listings, instructions, user manuals, frequently
asked questions, release notes, recall notices, error logs, diagnostic reports,
marketing materials, packaging, labeling, service manuals and other information
describing the use, operation, installation, configuration, features,
functionality, pricing, marketing or correction of a product, whether or not
provided to end user.

 “Employee
Benefit Plan” shall mean any “employee pension benefit plan” (as defined in
Section 3(2) of ERISA), any “employee welfare benefit plan” (as defined in
Section 3(1) of ERISA), and any other written or oral plan, agreement or
arrangement involving direct or indirect compensation, including insurance
coverage, severance benefits, disability benefits, deferred compensation,
bonuses, stock options, stock purchase, phantom stock, stock appreciation or
other forms of incentive compensation or post-retirement compensation.

  “Environmental
Law” shall mean any federal, state or local law, statute, rule, order,
directive, judgment, Permit or regulation or the common law relating to the
environment, occupational health and safety, or exposure of persons or property
to Materials of Environmental Concern, including any statute, regulation,
administrative decision or order pertaining to:   (i) the presence of or the treatment,
storage, disposal, generation, transportation, handling, distribution,
manufacture, processing, use, import, export, labeling, recycling, registration,
investigation or remediation of Materials of Environmental Concern or
documentation related to the foregoing; (ii) air, water and noise
pollution; (iii) groundwater and soil contamination; (iv) the
release, threatened release, or accidental release into the environment, the
workplace or other areas of Materials of Environmental Concern, including
emissions, discharges, injections, spills, escapes or dumping of Materials of
Environmental Concern; (v) transfer of interests in or control of real property
which may be contaminated; (vi) community or worker right-to-know disclosures
with respect to Materials of Environmental Concern; (vii) the protection
of wild life, marine life and wetlands, and endangered and threatened species;
(viii) storage tanks, vessels, containers, abandoned or discarded barrels
and other closed receptacles; and (ix) health and safety of employees and
other persons.  As used above, the term “release”
shall have the meaning set forth in the federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (“CERCLA”).

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended.

“Excluded Assets” shall mean all assets of the
Seller not included in the Acquired Assets, including the following assets of
the Seller:

 22
 

(a)                                  the
limited liability company charter, qualifications to conduct business as a
foreign entity, arrangements with registered agents relating to foreign
qualifications, taxpayer and other identification numbers, seals, minute books,
membership transfer books and other documents relating to the organization and
existence of the Seller as a limited liability company;

(b)                                 all
rights relating to refunds, recovery or recoupment of Taxes;

(c)                                  all
rights to any contracts, agreements or instruments to which the Seller is a party
other than the Assigned Contracts; and

(d)                                 any
of the rights of the Seller under this Agreement or under the Ancillary
Agreements.

“Expected Claim Notice” shall mean a notice
that, as a result of a legal proceeding instituted by or written claim made by
a third party, an Indemnified Party reasonably expects to incur Damages for
which it is entitled to indemnification under Article VI.

“Exploit” shall mean develop, design, test,
modify, make, use, sell, have made, used and sold, import, reproduce, market,
distribute, commercialize, support, maintain, correct and create derivative
works of.

“FDA” shall mean the United States Food and
Drug Administration, or any successor agency thereto.

 “Financial
Statements” shall mean the Seller’s federal and state income tax returns
for the tax years 2003 through 2006, inclusive.

“GAAP” shall mean United States generally
accepted accounting principles.

“Governmental Entity” shall mean any court,
arbitrational tribunal, administrative agency or commission or other governmental
or regulatory authority or agency.

“Grant” shall have the meaning set forth in
Section 2.14 of this Agreement

“Indemnified Party” shall mean a party
entitled, or seeking to assert rights, to indemnification under Article VI
of this Agreement.

“Indemnifying Party” shall mean the party from
whom indemnification is sought by the Indemnified Party.

“Intellectual Property” shall mean the
following subsisting throughout the world:

(a)                                  Patent
Rights, including the right to recover for past infringement;

(b)                                 Trademarks
and all goodwill in the Trademarks;

(c)                                  copyrights,
designs, data and database rights and registrations and applications for
registration thereof, including moral rights of authors;

(d)                                 mask
works and registrations and applications for registration thereof and any other
rights in semiconductor topologies under the laws of any jurisdiction;

 23
 

(e)                                  inventions,
invention disclosures, statutory invention registrations,  trade secrets and confidential business
information, know-how, manufacturing and product processes and techniques,
research and development information, financial, marketing and business data,
pricing and cost information, business and marketing plans and customer and
supplier lists and information, whether patentable or nonpatentable, whether
copyrightable or noncopyrightable and whether or not reduced to practice; and

(f)                                    other
proprietary rights relating to any of the foregoing (including remedies against
infringement thereof and rights of protection of interest therein under the
laws of all jurisdictions).

“Intellectual Property Registrations” means
Patent Rights, registered Trademarks, registered copyrights and designs, mask
work registrations and applications for each of the foregoing.

“Internal Systems” shall mean the Software and
Documentation and the computer, communications and network systems (both
desktop and enterprise-wide), used by the Seller in the Acquired Business to
develop, manufacture, fabricate, assemble, provide, distribute, support,
maintain or test the Acquired Assets, whether located on the premises of the
Seller or hosted at a third party site. 
All Internal Systems that are material to the business of the Seller are
listed and described in Section 2.9(c) of the Disclosure Schedule.

“Issuance Value” shall mean the average last
reported sale price per share of the Buyer Common Stock over the five
consecutive trading days ending two days prior to the date the achievement of
the Milestone resulting in the issuance of the applicable Milestone Shares.  The Issuance Value shall be subject to
equitable adjustment in the event of any stock split, stock dividend, reverse
stock split or similar event affecting the Buyer Common Stock during such five
consecutive trading day period.

 “Legal
Proceeding” shall mean any action, suit, proceeding, claim, arbitration or
investigation before any Governmental Entity or before any arbitrator.

“Materials of Environmental Concern” shall mean
any:  pollutants, contaminants or
hazardous substances (as such terms are defined under CERCLA), pesticides (as
such term is defined under the Federal Insecticide, Fungicide and Rodenticide
Act), solid wastes and hazardous wastes (as such terms are defined under the
Resource Conservation and Recovery Act), chemicals, other hazardous,
radioactive or toxic materials, oil, petroleum and petroleum products (and
fractions thereof), or any other material (or article containing such material)
listed or subject to regulation under any law, statute, rule, regulation,
order, Permit, or directive due to its potential, directly or indirectly, to
harm the environment or the health of humans or other living beings.

“M-Enoxaparin” shall mean a generic version of
enoxaparin, as developed by the Buyer.

“M-Enoxaparin Milestone” shall mean the first
[**] period during which (a) M-Enoxaparin has been sold commercially in the
United States by the Buyer or its Affiliates or licensees, and (b) no Person
has sold a generic version of enoxaparin (other than M-Enoxaparin) in the
United States.

“Milestone Shares” shall mean the shares of
Buyer Common Stock issuable upon the satisfaction of each of the M-Enoxaparin
Milestone and the Second Generic Milestone.

“Milestones” shall mean the Capabilities Build
Milestone, the M-Enoxaparin Milestone and the Second Generic Milestone.

 24
 

“Most Recent Balance Sheet” shall mean the
balance sheet of the Seller contained in the Seller’s 2006 federal income tax
return.

“Non-Competition Period” shall mean the period
ending on the earlier to occur of (a) [**] years after the Closing Date or (b)
[**] years after the date of the achievement of the Second Generic Product
Milestone; provided, however, that:

(i)                                     if
the Primary Member’s employment with the Buyer has been terminated by the Buyer
without Cause or by the Primary Member for Good Reason (as such terms are
defined in the Employment Agreement of even date between the Buyer and the
Primary Member) prior to the earlier to occur of (x) the [**] anniversary of
the Closing Date or (y) the achievement of the entire Capabilities Build
Milestone, then the Non-Competition Period shall expire on such termination
date, unless the Buyer pays the then unpaid components of the Capabilities
Build Milestone on the date of such termination; and

(ii)                                  if
the Buyer, the Buyer’s Affiliates or licensees or the Affiliates, distributors
or sublicensees of any of the Buyer’s licensees have not filed an application
with the FDA seeking marketing approval for a Second Generic Product on or
before the [**] anniversary of the Closing Date and as of such [**] anniversary
of the Closing Date the Primary Member’s employment with the Buyer has been
terminated by the Buyer without Cause or by the Primary Member for Good Reason,
then the Non-Competition Period shall expire on the [**] anniversary of the
Closing Date unless the Buyer pays the Seller $[**] on or before the [**]
anniversary of the Closing Date.

“Non-controlling Party” shall mean the party
not controlling the defense of any Third Party Action.

“Open Source Materials” means any Software or
any other work of authorship or other material that (a) is, or is a derivative
work of, any Software that is distributed as “open source software” or “free
software” (including Linux) or licensed or distributed under any of the
following licensing or distribution models, or any similar model:  the GNU General Public License (GPL), GNU
Lesser General Public License or GNU Library General Public License (LGPL),
Mozilla Public License (MPL), BSD licenses, the Artistic License, the Netscape
Public License, the Sun Community Source License (SCSL), the Sun Industry
Standards License (SISL), the Apache License, the Berkeley Open Infrastructure
for Network Computing License (BOINCL), the Berkeley Software Distribution
License (BSDL), the Microsoft Shared Source License, the Common Public License,
the Apache License, the Redhat License or any license listed at
www.opensource.org; (b) creates, or purports to create, obligations for the
Seller to grant, or purport to grant, to any person, any rights or immunities
under the Intellectual Property owned or licensed by the Seller; or (c)
requires, as a condition of use, modification and/or distribution of such
Software, work of authorship or other material, that such Software, work of
authorship or other material, or other Software, work of authorship or other material
incorporated into, derived from or distributed with such Software, work of
authorship or other material, be (A) disclosed or distributed in source code
form, (B) licensed for the purpose of making derivative works or (C)
redistributable or otherwise made available at no charge or minimal charge.

“Ordinary Course of Business” shall mean the
ordinary course of business consistent with past custom and practice (including
with respect to frequency and amount).

“Parties” shall mean the Buyer, the Seller and
the Primary Member.

“Patent Rights” shall mean all patents, patent
applications, utility models, design registrations and certificates of
invention and other governmental grants for the protection of inventions or
industrial designs worldwide (including all related continuations,
continuations-in-part, divisionals, reissues and reexaminations).

 25
 

“Permits” shall mean all permits, licenses,
registrations, certificates, orders, approvals, franchises, variances and
similar rights issued by or obtained from any Governmental Entity relating to
the Acquired Business or Acquired Assets (including those issued or required
under Environmental Laws and those relating to the occupancy or use of owned or
leased real property).

“Person” shall mean any natural person, corporation,
firm, business trust, joint venture, association, organization, company,
partnership or other business entity, or any government, or any agency or
political subdivisions thereof.

“Preliminary M-Enoxaparin Shares” shall have
the meaning set forth in Section 1.4(b).

“Preliminary Second Generic Shares” shall have
the meaning set forth in Section 1.4(c).

 “Primary
Member” shall have the meaning set forth in the first paragraph of this
Agreement.

 “Purchase
Price” shall mean the purchase price to be paid by the Buyer for the
Acquired Business and the Acquired Assets as set forth in Section 1.3.

“Reasonable Best Efforts” shall mean best
efforts, to the extent commercially reasonable.

“Registration Statement” shall mean a
registration statement on Form S-3 or, if the Buyer is not eligible to use form
S-3, Form S-1 (or such other form as the Buyer shall deem appropriate) covering
the resale to the public by the Seller of the Milestone Shares.

“Response” shall mean a written response
containing the information provided for in Section 6.3(c).

“Retained Business” shall mean all businesses
of the Seller other than the Acquired Business.

“Retained Liabilities” shall mean any and all
liabilities or obligations (whether known or unknown, absolute or contingent,
liquidated or unliquidated, due or to become due and accrued or unaccrued, and
whether claims with respect thereto are asserted before or after the Closing)
of the Seller which are not Assumed Liabilities.  The Retained Liabilities shall include,
without limitation, all liabilities and obligations of the Seller:

(a)                                  relating
to the Retained Business or the Excluded Assets;

(b)                                 for
all Taxes (other than Sales Taxes)  arising in
connection with the consummation of the transactions contemplated by this
Agreement (including any income Taxes arising as a result of the transfer by
the Seller to the Buyer of the Acquired Assets);

(b)                                 for
costs and expenses incurred in connection with this Agreement or the
consummation of the transactions contemplated by this Agreement;

(c)                                  under
this Agreement or the Ancillary Agreements;

(d)                                 for
any Taxes, including, without limitation, deferred taxes or taxes measured by
income of the Seller earned prior to the Closing, any liabilities for federal
or state income tax and FICA taxes of employees of the Seller which the Seller
is legally obligated to withhold, any liabilities of the Seller for employer
FICA and 

 26
 

unemployment taxes incurred, but excluding any liabilities for Sales
Taxes, which are expressly the responsibility of the Buyer;

(e)                                  under
any agreements, contracts, leases or licenses which are listed on Schedule
1.1(b);

(f)                                    arising
prior to the Closing under the Assigned Contracts, and all liabilities for any
breach, act or omission by the Seller prior to the Closing under any Assigned
Contract;

(g)                                 arising
out of events, conduct or conditions existing or occurring prior to the Closing
that constitute a violation of or non-compliance with any law, rule or
regulation (including Environmental Laws), any judgment, decree or order of any
Governmental Entity, or any Permit or that give rise to liabilities or
obligations with respect to Materials of Environmental Concern;

(h)                                 to
pay severance benefits to any employee of the Seller whose employment is
terminated (or treated as terminated) in connection with the consummation of
the transactions contemplated by this Agreement, and all liabilities resulting
from the termination of employment of employees of the Seller prior to the
Closing that arose under any federal or state law or under any Employee Benefit
Plan established or maintained by the Seller;

(i)                                     to
any consultant or independent contractor of the Seller;

(j)                                     to
indemnify any person or entity by reason of the fact that such person or entity
was a director, officer, employee, or agent of the Seller or was serving at the
request of the Seller as a partner, trustee, director, officer, employee, or
agent of another entity (whether such indemnification is for judgments,
damages, penalties, fines, costs, amounts paid in settlement, losses, expenses,
or otherwise and whether such indemnification is pursuant to any statute,
charter document, bylaw, agreement, or otherwise);

(k)                                  injury
to or death of persons or damage to or destruction of property occurring prior
to the Closing (including any workers compensation claim); and

(l)                                     for
medical, dental and disability (both long-term and short-term benefits),
whether insured or self-insured, owed to employees or former employees of the
Seller based upon (A) exposure to conditions in existence prior to the Closing
or (B) disabilities existing prior to the Closing (including any such
disabilities which may have been aggravated following the Closing).

“Sales Taxes” means any federal, state, or
local sales, use, excise, value-added, or other similar taxes, fees, duties, or
governmental charges imposed upon or made payable and arising out of the
consummation of the transactions contemplated by this Agreement.

“SEC” shall mean the Securities and Exchange
Commission.

“Second Generic Product” means a pharmaceutical
product (other than M-Enoxaparin) developed by the Buyer that is a generic or
follow-on version of a reference listed drug (a “Branded Product”) and
for which all or a material portion of the data set generated by or created
with the Seller’s technology acquired by Buyer in this transaction is included
in the application for regulatory approval filed with the FDA by the Buyer, the
Buyer’s Affiliates or licensees or the Affiliates, distributors or sublicensees
of any of the Buyer’s licensees.

 27
 

 “Second
Generic Product Milestone” shall mean the first [**] period during which
(a) a Second Generic Product has been sold commercially sold in the United
States by the Buyer or its Affiliates or licensees and (b) no third party has
sold a generic or follow-on version of the relevant Branded Product (other than
such Second Generic Product) in the United States.  For the avoidance of doubt, this “Second Generic Product Milestone” may
be achieved if any Second Generic Product satisfies the requirements of clauses
(a) and (b) above, regardless of the number of Second Generic Products and
regardless of the order in which any one or more of such products are filed,
approved or sold.

“Securities Act” shall mean the Securities Act
of 1933, as amended.

“Security Interest” shall mean any mortgage,
pledge, security interest, encumbrance, charge or other lien (whether arising
by contract or by operation of law), other than (i) mechanic’s,
materialmen’s, and similar liens, (ii) liens arising under worker’s
compensation, unemployment insurance, social security, retirement, and similar
legislation and (iii) liens on goods in transit incurred pursuant to
documentary letters of credit, in each case arising in the Ordinary Course of
Business of the Seller and not material to the Seller.

“Seller” shall have the meaning set forth in
the first paragraph of this Agreement.

“Seller Intellectual Property” shall mean shall
the Seller Owned Intellectual Property and the Seller Licensed Intellectual
Property.

“Seller Licensed Intellectual Property” shall
mean all Intellectual Property related to the Acquired Business or Acquired
Assets that is licensed to the Seller by any third party.

 “Seller
Material Adverse Effect” shall mean any material adverse change, event,
circumstance or development with respect to, or material adverse effect on, (i)
the business, assets, liabilities, capitalization, prospects, condition
(financial or other), or results of operations of the Seller, or (ii) the
ability of the Buyer to operate the Acquired Business immediately after the
Closing. For the avoidance of doubt, the parties agree that the terms “material”,
“materially” or “materiality” as used in this Agreement with an initial lower
case “m” shall have their respective customary and ordinary meanings, without
regard to the meaning ascribed to Seller Material Adverse Effect.

“Seller Owned Intellectual Property” shall mean
all Intellectual Property related to the Acquired Business, Acquired Assets
(including Software developed by Seller relating to the Acquired Business), or
the Assigned Contracts, which is owned or purported to be owned by the Seller,
in whole or in part.

“Seller Registrations” shall mean Intellectual
Property registrations that are registered or filed in the name of the Seller,
alone or jointly with others, that relate to the Acquired Business or Acquired
Assets.

“Seller Source Code” shall mean the source code
for any Software included in the Acquired Assets or Internal Systems.

“Software” shall mean computer software code,
applications, utilities, development tools, diagnostics, databases and embedded
systems, whether in source code, interpreted code or object code form.

 “Taxes”
shall mean any and all taxes, charges, fees, duties, contributions, levies or
other similar assessments or liabilities in the nature of a tax, including,
without limitation, income, gross receipts, corporation, ad valorem, premium,
value-added, net worth, capital stock, capital gains, documentary, recapture,
alternative or add-

 28
 

on minimum, disability,
estimated, registration, recording, excise, real property, personal property,
sales, use, license, lease, service, service use, transfer, withholding,
employment, unemployment, insurance, social security, national insurance,
business license, business organization, environmental, workers compensation,
payroll, profits, severance, stamp, occupation, windfall profits, customs
duties, franchise and other taxes of any kind whatsoever imposed by the United
States of America or any state, local or foreign government, or any agency or
political subdivision thereof, and any interest, fines, penalties, assessments
or additions to tax imposed with respect to such items or any contest or
dispute thereof.

“Tax Returns” shall mean any and all reports,
returns, declarations, or statements relating to Taxes, including any schedule
or attachment thereto and any related or supporting work papers or information
with respect to any of the foregoing, including any amendment thereof.

 “Third Party
Action” shall mean any suit or proceeding by a person or entity other than
a Party for which indemnification may be sought by a Party under Article VI.

“Trademarks” shall mean all registered
trademarks and service marks, logos, Internet domain names, corporate names and
doing business designations and all registrations and applications for
registration of the foregoing, common law trademarks and service marks and
trade dress.

ARTICLE IX

MISCELLANEOUS

9.1                                 Press
Releases and Announcements.  No Party shall issue any press release or
public announcement relating to the subject matter of this Agreement without
the prior written approval of the other Parties; provided, however,
that any Party may make any public disclosure it believes in good faith is
required by applicable law, regulation or stock market rule (in which case the
disclosing Party shall use reasonable efforts to advise the other Parties and
provide them with a copy of the proposed disclosure prior to making the
disclosure).

9.2                                 No
Third Party Beneficiaries.  This Agreement shall not confer any rights or
remedies upon any person other than the Parties and their respective successors
and permitted assigns.

9.3                                 Entire
Agreement.  This Agreement (including the documents
referred to herein) constitutes the entire agreement between the Parties and
supersedes any prior understandings, agreements, or representations by or
between the Parties, written or oral, with respect to the subject matter
hereof.

9.4                                 Succession
and Assignment.  This Agreement shall be binding
upon and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior
written approval of the other Parties; provided that the Buyer may assign some
or all of its rights, interests and/or obligations hereunder to one or more
Affiliates of the Buyer. Any attempted assignment in contravention of this
provision shall be void.

9.5                                 Counterparts
and Facsimile Signature.  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.  This Agreement may be executed by facsimile
signature.

9.6                                 Headings.  The
section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

 29

9.7                              Notices.  All
notices, requests, demands, claims, and other communications hereunder shall be
in writing.  Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly delivered four
business days after it is sent by registered or certified mail, return receipt
requested, postage prepaid, or one business day after it is sent for next
business day delivery via a reputable nationwide overnight courier service, in
each case to the intended recipient as set forth below:

	
  If to the Seller or
  the Primary Member:

  	
   

  	
  Copy to:

  
	
   

  	
   

  	
   

  
	
  Parivid, LLC

  3 Clyde Road,
  Suite 201

  Somerset, NH
  08873

  Facsimile No.: [               ]

  Attention: S.
  Raguram

  	
   

  	
  B. David Sandberg, Esq.

  166 Chestnut Street

  Cambridge, MA 02139

  Facsimile No.: (617)-492-4944

   

  
	
   

  	
   

  	
   

  
	
  If to the Buyer:

  	
   

  	
  Copy to:

  
	
   

  	
   

  	
   

  
	
  Momenta
  Pharmaceuticals, Inc.

  675 West Kendall
  Street

  Cambridge, MA
  02142

  Facsimile No.:
  (617) 621-3097

  Attention:
  President and Chief Executive Officer

  	
   

  	
  Momenta Pharmaceuticals, Inc.

  675 West Kendall Street

  Cambridge, MA 02142

  Facsimile No.: (617) 621-3014

  Attention: Vice President, Legal Affairs

   

  and to:

   

  Wilmer Cutler Pickering Hale and Dorr LLP

  60 State Street

  Boston, MA 02109

  Facsimile No.: (617) 526-5000

  Attention: Steven D. Singer, Esq.

  

 

Any Party may give any notice, request, demand, claim,
or other communication hereunder using any other means (including personal
delivery, expedited courier, messenger service, telecopy, telex, ordinary mail,
or electronic mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it
actually is received by the party for whom it is intended.  Any Party may change the address to which
notices, requests, demands, claims, and other communications hereunder are to
be delivered by giving the other Parties notice in the manner herein set forth.

9.8                              Governing Law. 
This Agreement shall be governed by and construed in accordance with the
internal laws of the Commonwealth of Massachusetts, without giving effect to
any choice or conflict of law provision or rule (whether of the Commonwealth of
Massachusetts or any other jurisdiction) that would  cause the application of laws of any
jurisdictions other than those of the Commonwealth of Massachusetts.

9.9                              Amendments and Waivers. 
The Parties may mutually amend any provision of this Agreement at any
time.  No amendment of any provision of
this Agreement shall be valid unless the same shall be in writing and signed by
each of the Parties.  No waiver by any
Party of any right or remedy hereunder shall be valid unless the same shall be
in writing and signed by the Party giving such waiver.  No waiver by any Party with respect to any default,
misrepresentation, or breach of warranty or covenant hereunder shall be deemed
to extend to any prior or 

 30
 

subsequent default, misrepresentation, or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any prior
or subsequent such occurrence.

9.10                        Severability. 
Any term or provision of this Agreement that is invalid or unenforceable
in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or
enforceability of the offending term or provision in any other situation or in
any other jurisdiction.  If the final
judgment of a court of competent jurisdiction declares that any term or provision
hereof is invalid or unenforceable, the Parties agree that the court making the
determination of invalidity or unenforceability shall have the power to limit
the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified.

9.11                        Expenses.  Except
as set forth in Article VI, each Party shall bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement
and the transactions contemplated hereby.

9.12                        Submission to Jurisdiction.  Each Party (a) submits to the
jurisdiction of any state or federal court sitting in the Commonwealth of
Massachusetts in any action or proceeding arising out of or relating to this
Agreement or the Ancillary Agreements (including any action or proceeding for
the enforcement of any arbitral award made in connection with any arbitration
of a Dispute hereunder), (b) agrees that all claims in respect of such
action or proceeding may be heard and determined in any such court,
(c) waives any claim of inconvenient forum or other challenge to venue in
such court, (d) agrees not to bring any action or proceeding arising out of or
relating to this Agreement or the Ancillary Agreements in any other court and
(e) waives any right it may have to a trial by jury with respect to any action
or proceeding arising out of or relating to this Agreement or the Ancillary
Agreements.  Each party agrees to accept
service of any summons, complaint or other initial pleading made in the manner
provided for the giving of notices in Section 9.7, provided that nothing
in this Section 9.12 shall affect the right of any Party to serve such
summons, complaint or other initial pleading in any other manner permitted by
law.

9.13                        Specific Performance. 
Each Party acknowledges and agrees that the other Party would be damaged
irreparably in the event any of the provisions of Article V of this Agreement
are not performed in accordance with their specific terms or otherwise are
breached.  Accordingly, each Party agrees
that the other Party shall be entitled to an injunction or other equitable
relief to prevent breaches of the provisions of Article V of this Agreement and
to enforce specifically Article V of this Agreement and the terms and
provisions thereof in any action instituted in any court of the United States
or any state thereof having jurisdiction over the Parties and the matter, in
addition to any other remedy to which it may be entitled, at law or in equity.

9.14                        Construction.

(a)                                  The
language used in this Agreement shall be deemed to be the language chosen by
the Parties to express their mutual intent, and no rule of strict construction
shall be applied against either Party.

(b)                                 Any
reference to any federal, state, local, or foreign statute or law shall be
deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise.

(c)                                  Any
reference herein to “including” shall be interpreted as “including without
limitation”.

 31
 

(d)                                 Any
reference to any Article, Section or paragraph shall be deemed to refer to an
Article, Section or paragraph of this Agreement, unless the context clearly
indicates otherwise.

 32
 

IN WITNESS WHEREOF, the Parties have executed this
Agreement as of the date first above written.

	
  

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig A.
  Wheeler

  	
   

  
	
   

  	
   

  	
  Name: Craig A. Wheeler

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  PARIVID, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. Raguram

  	
   

  
	
   

  	
   

  	
  Name:  S.
  Raguram

  
	
   

  	
   

  	
  Title: 
  Managing Member/CTO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  PRIMARY MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ S. Raguram

  	
   

  
	
   

  	
  S. Raguram

  

 

[Signature Page to
Asset Purchase Agreement]

 33

EXHIBIT A

Bill of Sale

Exhibit A

BILL OF
SALE

This Bill of Sale dated April 20, 2007 is executed and
delivered by PARIVID, LLC, a Massachusetts limited liability company (the “Seller”),
to MOMENTA PHARMACEUTICALS, INC., a Delaware corporation (the “Buyer”).  All capitalized words and terms used in this
Bill of Sale and not defined herein shall have the respective meanings ascribed
to them in the Asset Purchase Agreement dated April 20, 2007 by and among the
Seller, the Buyer and S. Raguram (the “Agreement”).

WHEREAS, pursuant to the Agreement, the Seller has
agreed to sell, transfer, convey, assign and deliver to the Buyer certain of
the assets of the Seller, and the Buyer has agreed to assume certain of the
liabilities of the Seller;

NOW, THEREFORE, in consideration of the mutual
promises set forth in the Agreement and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Seller hereby
agrees as follows:

1.                                       The
Seller hereby sells, transfers, conveys, assigns and delivers to the Buyer, its
successors and assigns, to have and to hold forever, all right, title and
interest in, to and under all of the Acquired Assets.

2.                                       The
Seller hereby covenants and agrees that it will, at the request of the Buyer
and without further consideration, execute and deliver, and will cause its
employees to execute and deliver, such other instruments of sale, transfer,
conveyance and assignment, and take such other action, as may reasonably be
necessary to more effectively sell, transfer, convey, assign and deliver to,
and vest in, the Buyer, its successors and assigns, good, clear, record and
marketable title to the Acquired Assets hereby sold, transferred, conveyed,
assigned and delivered, or intended so to be, and to put the Buyer in actual
possession and operating control thereof, to assist the Buyer in exercising all
rights with respect thereto.

3.                                       The
Seller does hereby irrevocably constitute and appoint the Buyer, its successors
and assigns, its true and lawful attorney, with full power of substitution, in
its name or otherwise, and on behalf of the Seller, or for its own use, to
claim, demand, collect and receive at any time and from time to time any and
all of the Acquired Assets, and to prosecute the same at law or in equity and,
upon discharge thereof, to complete, execute and deliver any and all necessary
instruments of satisfaction and release.

4.                                       The
Seller, by its execution of this Bill of Sale, and the Buyer, by its acceptance
of this Bill of Sale, each hereby acknowledges and agrees that neither the
representations and warranties nor the rights, remedies or obligations of any
party under the Agreement shall be deemed to be enlarged, modified or altered
in any way by this instrument.

IN WITNESS WHEREOF, the Seller and the Buyer have
caused this instrument to be duly executed under seal as of and on the date
first above written.

	
  

  	
   

  	
  PARIVID, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ S. Raguram

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  S. Raguram 

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Member/CTO

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MOMENTA
  PHARMACEUTICALS, INC. 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Craig A. Wheeler

  	
   

  	
   

  	
   

  
	
    Name:

  	
  Craig A. Wheeler
  

  	
   

  	
   

  	
   

  
	
    Title:

  	
  President and
  Chief Executive Officer

  	
   

  	
   

  	
   

  
												

 

[Signature Page to
Bill of Sale]

 2

EXHIBIT B

Patent Assignment

ASSIGNMENT

For valuable
consideration, Parivid, LLC, a company created and existing under the
laws of the Commonwealth of Massachusetts, United States of America, (hereinafter
called “the Assignor”) having a place of business at:

3 Clyde Road, Suite 201

Somerset, NH 08873

hereby assigns to: Momenta
Pharmaceuticals, Inc., a corporation created and existing under the laws of
the State of Delaware, United States of America, having a place of business at:

675 West Kendall Street

Cambridge, MA  02142

and its successors and
assigns (collectively hereinafter called “the Assignee”), its entire right,
title and interest throughout the world in the inventions and improvements
which are subject of

·          an
application for United States Patent entitled Methods and Apparatus for
Characterizing Polymeric Mixtures, filed September 1, 2004, and assigned
U.S. Serial Number 10/931,939;

·          an
application for United States Patent entitled Methods and Products
Related to the Improved Analysis of Carbohydrates, filed April 15, 2005, and
assigned U.S. Serial Number 11/107,982;

·          an
application for United States Patent entitled Methods and Products
Related to the Improved Analysis of Carbohydrates, filed October 6, 2005, and
assigned U.S. Serial Number 11/244,826;

this assignment, including
said applications, and any and all continuing applications, including continuations,
continuations-in-part, and divisional applications, and any and all United
States and foreign patents (including reissues, reexaminations, extensions),
utility models, and design registrations granted for any of said inventions or
improvements, and the right to claim priority based on the filing date of said
application under the International Convention for the Protection of Industrial
Property, the Patent Cooperation Treaty, the European Patent Convention, and
all other treaties of like purposes; and Assignor authorizes the Assignee to
apply in all countries in 

 1
 

Assignor’s name or in
Assignee’s name for patents, utility models, design registrations and like
rights of exclusion and for inventor’s certificates for said inventions and
improvements; and Assignor agrees for itself, its legal representatives and
assigns, without further compensation to perform such lawful acts and to sign
such further applications, assignments, Preliminary Statements and other lawful
documents as the Assignee may reasonably request to effectuate fully this
assignment, the effectiveness of this assignment including as of the filing
date of the above-identified application and any applications from which the
above-identified application claims benefit of.

Assignor has the
right to make this assignment by virtue of inventors’ assignments recorded at
the U.S. Patent and Trademark Office at Reel 016042/Frame 0479; Reel
016042/Frame 0512; and Reel 017137/Frame 0347.

In witness whereof,
Assignor has caused this Assignment to be signed in its corporate name by its
duly authorized officers.

	
  

  	
  Parivid, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  Sign:

  	
    /s/ S. Raguram

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name:

  	
   S. Raguram

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing
  Member/CTO

  	
   

  
							

 

 2
 

STATE OF NEW
JERSEY)

                                            )  SS.

COUNTY OF SOMERSET)

On April 19, 2007, before
me, the undersigned, a notary public for the State of New Jersey, there personally appeared S. Raguram personally known to me (or proved to me on the
basis of satisfactory evidence) to be the person whose name is subscribed to
this Assignment, who acknowledged having executed the same in his authorized capacity and that by his signature on this Assignment, the person or the
entity upon behalf of which he acted,
executed this Assignment.

WITNESS my hand and official
seal.

	
  

  	
  /s/ Kerry
  Capriccio

  	
   

  
	
   

  	
  Kerry Capriccio

  Notary Public

  State of New Jersey

  My Commission Expires February 13, 2009

  

 

 3

EXHIBIT C

Instrument of Assumption

Exhibit C

INSTRUMENT OF ASSUMPTION OF LIABILITIES

This Instrument of Assumption of Liabilities dated April
20, 2007, is made by, MOMENTA PHARMACEUTICALS, INC., a Delaware corporation
(the “Buyer”), in favor of, PARIVID, LLC, a Massachusetts limited liability
company (the “Seller”).  All capitalized
words and terms used in this Instrument of Assumption of Liabilities and not
defined herein shall have the respective meanings ascribed to them in the Asset
Purchase Agreement dated April 20, 2007 by and among the Seller, the Buyer and
S. Raguram (the “Agreement”).

WHEREAS, pursuant to the Agreement, the Seller has
agreed to sell, transfer, convey, assign and deliver to the Buyer certain
assets of the Seller; and

WHEREAS, in partial consideration therefor, the Agreement
requires the Buyer to assume certain of the liabilities of the Seller;

NOW, THEREFORE, in consideration of the mutual
promises set forth in the Agreement and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Buyer hereby
agrees as follows:

1.             The Buyer hereby assumes and agrees to perform, pay and
discharge the Assumed Liabilities.

2.             The Buyer does not hereby assume or agree to perform,
pay or discharge, and the Seller shall remain unconditionally liable for, any
and all liabilities or obligations (whether known or unknown, whether absolute
or contingent, whether liquidated or unliquidated, whether due or to become
due, and whether claims with respect thereto are asserted before or after the
Closing) of the Seller which are not Assumed Liabilities.

3.             Nothing contained herein shall require the Buyer to
perform, pay or discharge any liability, obligation or commitment expressly
assumed by the Buyer herein so long as the Buyer in good faith contests or
causes to be contested the amount or validity thereof.

4.             Nothing herein shall be deemed to deprive the Buyer of
any defenses, set-offs or counterclaims which the Seller may have had or which
the Buyer shall have with respect to any of the Assumed Liabilities (the “Defenses
and Claims”).  The Seller hereby
transfers, conveys and assigns to the Buyer all Defenses and Claims and agrees
to cooperate with the Buyer to maintain, secure, perfect and enforce such
Defenses and Claims, including the signing of any documents, the giving of any
testimony or the taking of any such other action as is reasonably requested by
the Buyer in connection with such Defenses and Claims.

5.             The Buyer, by its execution of this Instrument of
Assumption of Liabilities, and the Seller, by its acceptance of this Instrument
of Assumption of Liabilities, each hereby acknowledges and agrees that neither
the representations and warranties nor the rights, remedies 

or obligations of either party under the Agreement
shall be deemed to be enlarged, modified or altered in any way by this
instrument.

IN WITNESS WHEREOF, the Buyer and the Seller have
caused this instrument to be duly executed under seal as of and on the date
first above written.

	
  

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig A.
  Wheeler

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Craig A. Wheeler 

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
  /s/ Lynette Herscha

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARIVID, LLC 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
        /s/
  S. Raguram

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  S. Raguram 

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
    Managing
  Member/CTO

  	
   

  	
   

  	
   

  
												

 

[Signature Page to Instrument of Assumption]

 2Exhibit
10.16

	
  Scott Pintoff Employment Agreement

  	
   

  

 

EMPLOYMENT
AGREEMENT

This EMPLOYMENT
AGREEMENT (“Agreement”) is entered into as of March 26, 2007 (the “Effective
Date”), by and between GFI Group Inc.
(the “Company” or “GFI”), a Delaware Corporation and Scott Pintoff, an
individual (“Executive”).

WHEREAS, Executive is currently employed as the
General Counsel and Corporate Secretary of the Company; and

WHEREAS, the Company and Executive desire to enter
into this Agreement to set out the terms and conditions for the continued
employment relationship of Executive with the Company.

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged,
the parties hereto agree as follows:

1.                                      Nature
of Employment.

(a)                                  The
Company hereby agrees to continue to employ Executive as a full-time employee
in the position of  the General
Counsel and Corporate Secretary and
Executive accepts such continued employment, on the terms and conditions set
forth in this Agreement, for the Term of this Agreement (as defined in Section
2 below).  Throughout the Term, Executive
will report directly to the Chief Executive Officer of the Company (the “CEO”)
and will perform and discharge well and faithfully such duties and functions
consistent with his position as the General Counsel and Corporate Secretary as
may be assigned to him from time to time by the CEO in his discretion in
connection with the conduct of the Company’s business, including with respect
to any business conducted by any affiliate of the Company (including any
subsidiaries, parents, or other enterprises under common ownership or control
with the Company) (each a “Related Entity”). 
If Executive is elected or appointed an officer or director of the
Company, or any other Related Entity, during the period of Executive’s
employment with the Company, Executive will serve in such capacity without
additional compensation.

(b)                                 During
the period of Executive’s employment with the Company, Executive:  (i) will devote 100% of his employment
energies, interests, abilities and time to the performance of his duties and
shall not, without the written consent of the CEO, render to others any service
of any kind for compensation; (ii) will not render services to any business
activity that is directly or indirectly competitive with any business conducted
by the Company or any Related Entity; (iii) will observe and carry out such
reasonable rules, regulations, policies, directions and restrictions as may be
established from time to time by the Board or the board of directors of any
Related Entity, including but not limited to the published standard policies,
practices and procedures of the Company as in effect from time to time, as
applied to other senior executives of the Company; and (iv) do such reasonable
traveling as may be required in connection with the performance of such duties
and responsibilities consistent with such traveling requirements prior to the
execution of this Agreement.

(c)                                  Executive
may serve on corporate, civic and/or charitable boards with the consent of the
Company, provided that the  Company
may require Executive to resign any or all such 

board seats in their sole discretion if they
believe such board participation conflicts with Executive’s role with the
Company or is otherwise too time-consuming or distracting to Executive.

(d)                                 Executive
acknowledges that this Agreement contains non-competition and non-disclosure of
proprietary information provisions, and Executive agrees to comply with these
provisions.  Executive understands that
entering into and complying with these provisions is a condition to Executive’s
continued employment and that failure to comply with the terms and conditions
of these provisions may result in termination “for cause” under this Agreement
and in other damages to the Company.

2.                                      Term
of Employment.

Subject to earlier termination in accordance with the
terms hereof, the term of this Agreement shall commence on the Effective Date
and shall continue through February 28, 2010; provided, however,
that Executive’s employment by the Company will automatically be extended by
twelve (12) additional months on March 1, 2010 and on each subsequent March 1,
unless either party provides written notice to the other party no less than
sixty (60) days prior to such March 1 of its intention not to extend the term
of Executive’s employment.  The period
from the Effective Date until the later of February 28, 2010 or the end of any
subsequent extension of Executive’s employment pursuant to this Section 2,
unless earlier terminated as provided herein, shall be referred to as the “Term”.
If the Company provides a Notice of Non-Renewal, the provisions of Section 5(b)
shall continue to apply in accordance with its terms after the expiration of
the Term unless and until the parties provide otherwise in a written agreement
executed by both parties.

3.                                      Compensation
and Benefits.

For the full and faithful performance of the services
to be rendered by Executive and in consideration of Executive’s obligations
under this Agreement, provided Executive is not in breach of this Agreement,
the Company shall pay to Executive and Executive shall be entitled to receive:

(a)                                  Base Compensation.  As compensation for his services to be
rendered hereunder, the Company shall pay to Executive a base salary at the
rate of $265,000 per annum until March 1, 2007 and thereafter at the rate of
$300,000 per annum (as applicable, the “Base Salary”), which shall be payable
in periodic installments in accordance with the standard payroll practices of
the Company in effect from time to time. During the Term, Executive’s Base
Salary shall be reviewed at least annually by the Company and may be increased
(but not decreased) from time to time as shall be determined by the Company.

(b)                                 Discretionary Bonus.  The Company may pay Executive a discretionary
bonus, in such an amount, on such terms and at such time as may be determined
by the Company its sole and absolute discretion (“Discretionary Bonus”), it
being specifically understood that the Discretionary Bonus may be paid in any
combination of cash, restricted stock units (“RSUs”) and/or other forms of
equity or other compensation approved by the Compensation Committee of the
Board (the “Committee”).

 2
 

(c)                                  Fringe Benefits.  During the Term, the Company shall also make
available to Executive such benefits and perquisites as are generally provided
by the Company to its executives at Executive’s level of responsibility, provided,
however, that nothing herein contained shall be deemed to require the
Company to adopt, maintain or continue in effect any particular plan or
policy.  Executive shall further be
entitled to paid vacation, holidays, personal days and sick days in accordance
with the Company’s standard policies and procedures in effect from time to
time; provided,  however, Executive shall be entitled to not less
than four weeks of vacation per year.

(d)                                 Expenses. 
During the Term, the
Company shall reimburse Executive in accordance with applicable Company policy
in effect from time to time, for normal, reasonable and approved out-of-pocket
business expenses incurred by Executive in connection with the performance of his
duties and responsibilities hereunder; provided that Executive submits
documentation reasonably required by Company expense reimbursement policies and
procedures in effect and as amended from time to time.  The Company shall also reimburse Executive
for such annual expenses and membership costs, consistent with past practice,
incurred by Executive for the purpose of attending continuing legal education
programs and otherwise maintaining good standing in the New York State bar.

(e)                                  Withholding.  All amounts of compensation payable to
Executive hereunder shall be subject to, and paid after reduction for, any and
all required deductions or withholdings for federal, state, local and foreign
income tax withholding, Social Security, Medicare, unemployment or other
similar government benefit or insurance contributions, and any other deductions
or withholdings required by law or authorized by Executive.

(f)                                    Stay Bonus.  Within 10 days after the occurrence of a
Change in Control, the Company will pay Executive a lump sum cash payment of
$1,000,000 (the “Stay Bonus”).  If
Executive voluntarily terminates his employment during the six (6) month
transition period following the Change in Control for any reason other than due
to the assignment of duties materially inconsistent with Executive’s duties and
responsibilities with the Company immediately prior to the Change in Control (“Inconsistent
Duties”), Executive shall be required to repay the Stay Bonus.  It is understood and agreed that requesting
Executive to transition matters for which he is responsible prior to the Change
in Control shall not be considered to be Inconsistent Duties hereunder.

4.                                      Special
Covenants.

(a)                                  Nondisclosure of Confidential and Proprietary
Information.

(i)                                    Executive
acknowledges that before and during the Term, Executive has had and will have
access to and possession of trade secrets, confidential information and/or
proprietary information (collectively, and as defined more extensively below, “Confidential
Information”) of the Company and its Related Entities and their respective
clients.  Executive recognizes and
acknowledges that this Confidential Information is valuable, special and unique
to the business of the Company and each Related Entity, and that access to and
knowledge thereof are essential to the performance of 

 3
 

Executive’s duties to the Company and to each Related Entity, if
applicable.  During the time that
Executive is an employee of the Company and at all times thereafter, Executive
will keep secret and will not use or disclose any Confidential Information to
any person or entity, in any fashion or for any purpose whatsoever, except at
the request of the Company or as may be required by applicable law.

(ii)                                 The term “Confidential
Information”, includes, but is not limited to, information written, in digital
form, in graphic form, electronically stored, orally transmitted or memorized
concerning or relating to the Company or
any of its Related Entities,
including all financial data relating to the business of GFI and/or any of its Related
Entities, lines of credit or debt obligations, customer pricing information,
personal and contract information about or relating to GFI employees, or
traders and other dealer representatives, profit and loss statements, broker,
desk or company productivity data, financial models, computer software
programs, source and other codes, information about direct communication lines,
electronic and voice trading systems and screen systems, all information about
the Company’s or any of its Related Entities’ business prospects and
opportunities, and all other information about or gained from any customer to
the Company or to any Related Entity providing services during Executive’s
employment with the Company and all information reasonably determined by the
Company to be proprietary or confidential. 
Notwithstanding the foregoing, this clause shall not apply (i) to any
disclosure of Confidential Information required by law or by any court,
arbitrator, mediator or administrative or legislative body (including any
committee thereof) with actual or apparent jurisdiction to order Executive to
disclose or make accessible, (ii) to the extent required in connection with any
other litigation, arbitration or mediation involving this Agreement, including,
but not limited to, the enforcement of this Agreement, (iii) as to Confidential
Information that is or becomes generally known to the public or within the
relevant trade or industry other than due to Executive’s violation of Section
4(a)(i), or (iv) information disclosed to Executive in good faith by a third
person who, to the best of Executive’s knowledge, was legally entitled to
disclose such information.

(iii)                              Executive further
recognizes that GFI and certain Related Entities have received and in the
future will receive from third parties confidential or proprietary information
(“Third  Party Information”) subject to a duty
on their part to maintain the confidentiality of such information and to use it
only for certain limited purposes. 
Executive will hold Third Party Information in the strictest confidence
and will not disclose to anyone (other than Company personnel who need to know
such information in connection with their work for GFI) or use, except in
connection with work for GFI, Third Party Information unless expressly
authorized by GFI in writing.

 4
 

(iv)                             All Confidential
Information, proprietary and/or confidential files and records are and at all
times shall remain the exclusive property of the Company.  Executive agrees to store and maintain all
Confidential Information in a secure place. 
Executive agrees to make no use of any Confidential Information on his
own behalf or on behalf of any other person or entity other than the Company.
Executive further agrees that any property situated on the Company’s premises
and owned by the Company, including computer disks and other digital, analog or
hard copy storage media, filing cabinets, lockers, desks or other work areas,
is subject to inspection by Company personnel at any time with or without
notice.  When Executive leaves the employ
of the Company, Executive will deliver to the Company (and will not keep in his
possession, recreate or deliver to anyone else) any and all devices, records,
recordings, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, materials, computer materials,
equipment, other documents or property, together with all copies thereof (in
whatever medium recorded), belonging to the Company, any Related Entity or
their successors or assigns.

(b)                                 Assignment of Inventions and Intellectual Property.

(i)                                    The term “Proprietary
Rights” means all trade secrets, trademarks, service marks, patents,
copyrights, mask works and other intellectual property rights throughout the
world.  The term “Inventions” means all
Proprietary Rights, inventions, ideas, processes, formulas, source and object
codes, data, programs, technology, writings, software programs, other works of
authorship, know-how, discoveries, developments, designs, schematics, manuals,
drawings, techniques, employee suggestions, development tools, computer
printouts, or any claim of rights (or any related improvements or modifications
to the foregoing).

(ii)                                 Subject to Sections
4(b)(iii) and 4(b)(iv), Executive hereby assigns and agrees to assign in the future
(when any such Invention or Proprietary Right is first reduced to practice or
first fixed in a tangible medium, as applicable) to the Company all right,
title and interest in and to any and all Inventions (and all Proprietary Rights
with respect thereto) whether or not patentable or registrable under copyright
or similar statutes, made or conceived or reduced to practice or learned by
Executive, either alone or jointly with others, during or at any time after the
period of employment with the Company, which (a) relate to methods, designs,
brokerage or other products, trading systems and screens or any other processes
which relate to or pertain to the actual or anticipated business, functions,
operations, research or development of the Company, (b) arise (wholly or
partly) from Executive’s efforts during any time that Executive is employed by
the Company or utilizing any physical or intellectual property owned by the
Company, or any Related Entity, or (c) is based on any information or knowledge
gained by Executive through his 

 5
 

employment with the Company. 
Inventions assigned to the Company, or to a third party as directed by
the Company pursuant to this Section, are hereinafter referred to as “Company
Inventions.”

(iii)                              During Executive’s period
of employment, and for twelve (12) months thereafter, Executive will promptly
disclose to the Company, fully and in writing, all Inventions authored,
conceived or reduced to practice by Executive, either alone or jointly with
others.  In addition, Executive will
promptly disclose to the Company all patent applications filed by Executive or
on his behalf within  twelve (12)
months  after termination of
employment.

(iv)                             Executive also agrees to
assign all right, title and interest in and to any particular Company Invention
to a third party as directed by the Company.

(v)                                Executive acknowledges
that all original works of authorship which are made by Executive (solely or
jointly with others) within the scope of employment and which may be protected
by copyright are “works made for hire”, pursuant to United States Copyright Act
(17 U.S.C. Section 101) and are the property of the Company or any Related
Entity, as applicable, without limitation which shall own all rights of
copyright therein including the sole and exclusive right to reproduce such
works in multiple copies of distribution or sale to the public and to create
and exploit derivative works based thereon.

(vi)                             Executive will execute,
verify and deliver assignments of such Proprietary Rights to the Company or its
designee.  Executive’s obligation to
assist the Company with respect to Proprietary Rights relating to such Company
Inventions in any and all countries will continue beyond the termination of
employment and the Company will provide compensation at a reasonable rate after
termination for the time actually spent by Executive at the Company’s request
on such assistance.

(c)                                  No Inducement or Employment of Other Employees.

During the Term and the
twelve (12) month period immediately following termination of Executive’s
employment for any reason (the “Period of Restriction”), Executive will not, directly or indirectly employ, assist any person,
entity or enterprise to employ, solicit the employment of, or attempt to
affiliate for profit in any manner with (as applicable, a “Prohibited Action”),
any employee of, or any independent contractor performing services for, the
Company or any of its Related Entities, or any person who was an employee or
independent contractor with the Company or any of its Related Entities at any
time during the six (6) month period immediately preceding the Prohibited
Action, and Executive will not induce or otherwise encourage any such employee
or independent contractor to leave the employ of, or to cease rendering
services to the Company or any of
its Related Entities.

 6
 

(d)                                  Non-Solicitation, Non-Competition.

(i)                                    During the Period of Restriction, Executive agrees to refrain, directly or
indirectly, from accepting business from, doing business with, inducing or
soliciting any Customer or vendor of the Company to do business with any business or entity in competition with
any business in which the Company or any entity related to the Company  is engaged, except on behalf of the
Company or as authorized in writing by the Company. For the purposes of this Section 4(d), the term (i) “Customers” shall
include any person who is or was a customer or a Prospective Customer of the
Company or any of its Related Entities at any time during the last twelve (12)
months of Executive’s employment under this Agreement and (ii) “Prospective
Customer” shall include any person or entity contacted or solicited by
Executive at any time during his period of employment by the Company or its
Related Entities for the purpose of becoming a customer of the Company or
any  Related Entity.

(ii)                                 During the Period of
Restriction, Executive may not engage anywhere in the world in activities,
render services to or affiliate himself, in any capacity (including as a
director, officer, employee, consultant, independent contractor, partner,
member or investor) (except save by way of portfolio investment in shares
quoted on a recognized stock exchange whereby Executive owns less than 1% of
the outstanding stock of such entity), with any entity that provides services
that are competitive with those rendered by the Company or any Related
Entity.  Notwithstanding the foregoing,
during the Period of Restriction, (i) Executive may affiliate himself with a
law firm that provides legal services to a competitor of the Company provided
Executive does not directly provide advice to such competitor during the Period
of Restriction and (ii) with the Company’s prior written consent (as determined
by the CEO in his sole discretion), Executive may render services to any entity
whose primary business purpose is not competitive with any services rendered by
the Company or any related entity.

(e)                                  Covenants Reasonable; Additional Remedies; Due
Consideration.

(i)                                    Executive
acknowledges that he will occupy a position of responsibility and trust, in
which Executive will have access to Confidential Information and will be privy
to the confidential business plans and prospects of the Company and its Related
Entities, that Executive’s relationships with employees of the Company and/or
its Related Entities may be critical to the continued success of the Company
and/or its Related Entities, that the business of the Company and its Related
Entities are conducted on a worldwide basis, and that Executive’s services
under this Agreement are important, valuable and unique.  Executive (i) further acknowledges that the
restrictive covenants of this Section 4 are reasonably necessary to protect
valuable business interests of the Company and its Related Entities and that it
is Executive’s intention and the intention of the Company that such
restrictions and remedies shall be enforceable to the fullest extent 

 7
 

permissible by law and (ii) agrees that he will not challenge the
reasonability or enforceability of any of the restrictive covenants of this
Section 4; provided that Executive may challenge the enforceability of Section
4 based upon a breach of this Agreement by the Company that occurs prior to any
violation of Section 4 by Executive that is not cured within 30 days of receipt
of written notice from Executive that is given without 30 days of the
occurrence of such purported breach.  If
it shall be found by a court of competent jurisdiction that any such
restriction or remedy is unenforceable but would be enforceable if some part
thereof were deleted or the period or area of application reduced, then such
restriction or remedy shall apply with such modification as shall be necessary
to make it enforceable.

(ii)                                 The parties hereto
acknowledge and agree that in the event of a violation of any of the provisions
of this Section 4 (including Section 4(e)(i)), the Company and/or its Related
Entities would suffer irreparable harm, the damages suffered by the Company
and/or its Related Entities may be difficult to ascertain, and the Company
and/or its Related Entities may not have an adequate remedy at law.  Accordingly, the parties agree that in the
event of such a breach by Executive, if the Company so elects, the Company
and/or its Related Entities shall be entitled, in addition to all other remedies
available to it, to enforce this Section 4 by seeking an injunction,
restraining order, specific performance or other injunctive relief, without
bond.  Notwithstanding the provisions of
Section 13(e) below, an action by the Company and/or its Related Entities
seeking to impose any of such remedies may be brought in a court of law.  Such remedies shall not be deemed to be
exclusive of any other remedies available to the Company and/or its Related
Entities, by judicial or arbitral proceedings or otherwise.

(iii)                              Executive acknowledges
that the Company’s agreement to provide the benefits payable to Executive upon
termination of employment pursuant to Section 5 are additional consideration
for Executive’s agreement to abide by the restrictive covenants contained in
this Section 4 including, without limitation, the non-solicitation and
non-competition provisions of Section 4(d) and the Company shall be released
from any obligation to provide such benefits in the event of Executive’s
violation of any of these covenants.

5.                                      Termination
of Employment.

(a)                                  The
Term and Executive’s employment by the Company and its Related Entities (i) may
be terminated (A) by the Company at any time with Cause in accordance with
Section 5(f)(i) or without Cause or due to Executive’s Disability, (B) by
Executive at any time outside the Protection Period (as defined below) for any
or no reason upon not less than 90 days written notice or (C) during the
Protection Period (I) by Executive for Good Reason in accordance with Section
5(f)(iii) and (II) by Executive without Good Reason upon not less than 90 days
written

 8
 

notice and (ii) shall automatically terminate
upon Executive’s death.  Upon any
termination of Executive’s employment, Executive agrees to automatically
resign, and is deemed to have automatically resigned from, all positions with
the Company and its Related Entities, including as a member of the Board or the
board of any subsidiary.  In the event
Executive provides notice of his intent to terminate his employment without
Good Reason, the Company may place Executive on garden leave during all or a
portion of the 90-day notice period, which may entail, without limitation,
relieving Executive of his positions and/or duties with the Company and its
Related Entities or preventing Executive from performing his services at a
Company location and any such actions shall not be a breach of this Agreement,
be considered to be a termination of Executive without Cause or constitute an
event of “Good Reason”. The Company shall continue to comply with its
obligations under Section 3 during any period of garden leave.

(b)                                 In
the event the Term and Executive’s employment is terminated by the Company for
any reason other than Cause or Disability or voluntarily by Executive for Good
Reason, in each case, outside the Protection Period, Executive shall be
entitled to receive  (i) the amount of
Executive’s Base Salary and expenses accrued with respect to the period prior
to the date of termination of Executive’s employment, to the extent not
previously paid; (ii) a lump sum cash payment in an amount equal to the greater
of (A) the sum of Executive’s annual Base Salary as of the day immediately
preceding the date of such termination, and the average annual bonus (including
the cash and equity component of such annual bonus) earned by Executive during
the two most recently completed fiscal years of the Company (“Average Bonus”)
and (B) the sum of the amount of Base Salary otherwise payable to Executive
through the end of the Term and a pro rated portion of Executive’s Average
Bonus based on the number of days that have elapsed as of Executive’s date of
termination during the relevant calendar year; and (iii) continued medical
coverage at active employee rates for the longer of the remainder of the Term
and one year from Executive’s date of termination or, if earlier, until
Executive receives other employer-provided coverage.  In addition, any and all outstanding RSUs
previously granted to Executive as part of any annual bonus shall immediately
vest.  Any amount payable or benefit
provided to Executive pursuant to this Section 5(b) (other than clause (i))
shall be paid or provided to Executive only in the event that he executes and
does not revoke a release of claims agreement substantially in the form
attached hereto as Exhibit A.

(c)                                  In
the event the Term and Executive’s employment is terminated (i) by the Company
for Cause or (ii) voluntarily by Executive other than for Good Reason, (I) the
Company shall pay Executive the amount of Executive’s Base Salary and expenses
accrued with respect to the period prior to the date of termination of
Executive’s employment, to the extent not previously paid, (II) all outstanding
unexercised options, whether vested or unvested at the time of the termination,
and all unvested RSUs will terminate immediately upon termination, and (III)
the Company shall have no other or further obligation to Executive hereunder,
including without limitation any obligation to make severance payments or
payments in respect of Discretionary Bonus.

(d)                                 In
the event that Executive’s employment is terminated by reason of Executive’s
death or Disability, the Company shall pay Executive (or his personal
representative as the case may be): (i) the amount of Executive’s Base Salary
and expenses accrued with respect to the period prior to the date of
termination of Executive’s employment, to the extent not previously paid; (ii)
bonus for the prior year, if any, that the Company has declared that Executive
has 

 9
 

earned but which has not yet paid;  (iii) a lump sum cash payment equal to Executive’s
annual bonus (including the cash and equity component of such annual bonus)
from the prior year based on the number of days of the current year Executive
has been employed by the Company and the denominator of which is 365;  (iv) continued medical coverage at
active-employee rates for one year; and (v) the amount of any benefits as are
payable to Executive (or his personal representative) by reason of such death
or disability under the terms of any employee plan or insurance program
maintained by the Company and in which Executive was a participant. In
addition, any and all outstanding RSUs previously granted to Executive as part
of any annual bonus shall immediately vest. 
Any amount payable to Executive pursuant to clause (iii) and (iv) of this Section 5(d) shall be
paid to Executive only in the event that he (or his personal representative as
the case may be) executes a release of liability in favor of the Company in a
form satisfactory to the Company.

(e)                                  In
the event the Term and Executive’s employment is terminated (x) by the Company
for any reason other than Cause or (y) by Executive for Good Reason, in each
case, within the one year period immediately following a Change in Control (the
“Protection Period”), Executive shall be entitled to receive: the Stay Bonus,
to the extent unpaid, and the benefits provided in Section 5(b); provided that
in lieu of, and not in addition to, the severance benefits specified Section
5(b)(ii), Executive shall be entitled to receive a cash lump sum payment equal to
the sum of (A) two multiplied by the amount of Executive’s annual Base Salary
as of the day immediately preceding the date of such termination and (B) a pro
rated portion of Executive’s Average Bonus based on the number of days that
have elapsed as of Executive’s date of termination during the relevant calendar
year.  Any amount payable or benefit
provided to Executive pursuant to this Section 5(d) (other than clause (i))
shall be paid or provided to Executive only in the event that he executes and
does not revoke a release of claims agreement substantially in the form
attached hereto as Exhibit A.

(f)                                    For
purposes of this Agreement:

(i)                                    The CEO, in the
exercise of good faith and reasonable judgment, may terminate the Term and
Executive’s employment for “Cause” if, after giving Executive notice and an
opportunity to be heard by the CEO, the CEO determines that any of the
following has occurred:  (i) Executive’s
willful and continued failure to substantially perform his material duties for
the Company (other than due to disability) following written notice specifying
such failure and the manner in which Executive may rectify such failure in the
future, if rectifiable (it being understood that the manner in which Executive
may rectify such failure must be reasonable); (ii) Executive’s breach of any
material term of this Agreement that is not cured within 30 days of written
notice from the Company; (iii) Executive’s engaging in willful, intentional
misconduct (it being understood that good faith business judgments made by
Executive are not willful, intentional misconduct) that has resulted in damage
to the Company’s business or reputation; (iv) Executive having been indicted or
convicted of, or pleaded guilty or nolo
contendere to, a felony or other crime of moral turpitude; (v)
Executive having engaged in fraud against the Company or having intentionally
misappropriated Company property; 

 10
 

(vi) Executive’s breach of any fiduciary duty owed to the Company that
has a detrimental effect on the Company’s reputation or business that is not
cured within 30 days after written notice specifying such breach of duty and
the manner in which Executive may rectify such breach of duty in the future, if
rectifiable (fraud or misappropriation not being rectifiable), and Executive
fails to rectify such breach of duty within 30 days of written notice from the
Company; (vii) a failure by Executive to comply with the Company’s material
employment policies and rules that is not cured within 30 days of written
notice from the Company, (viii) Executive’s obstructing or impeding or failing
to cooperate with any investigation authorized by the Board or any governmental
or self-regulatory entity, (ix) Executive being found liable in any Securities
and Exchange Commission or other civil or criminal securities law action or
becoming subject to any cease and desist order with respect to such action
(regardless of whether Executive admits or denies liability), or (x) Executive’s
failure to maintain any and all licenses necessary to the performance of the
duties described in Section 1(a) above.

(ii)                                 The Company may
terminate the term and Executive’s employment due to “Disability” in the event
any physical or mental illness, disability or impairment that, after reasonable
accommodation, prevents or may reasonably be expected to prevent Executive from
continuing the performance of Executive’s normal duties and responsibilities
hereunder for a period in excess of 180 consecutive days  or
of 270 non-consecutive days within any 18 month period.

(iii)                              Executive may terminate
the term and Executive’s employment for “Good Reason” in the event that without
Executive’s express prior written consent, the occurrence of any one or more of
the following occurs: (i) a material diminution of Executive’s positions, titles,
duties, or responsibilities from, or the assignment to Executive of duties
materially inconsistent with, those in effect on the date of the Agreement (for
the avoidance of doubt, it is agreed that Executive ceasing to be the sole
General Counsel and Corporate Secretary of a legal entity whose securities are
registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended, shall be a material diminution of Executive’s responsibilities); (ii)
the Company’s requiring Executive to be based at a location in excess of
thirty-five (35) miles from the location of Executive’s principal job location
or office as of the effective date of the Agreement, except for required travel
on the Company’s business to an extent substantially consistent with Executive’s
present business obligations; (iii) a reduction by the Company of Executive’s
Base Salary, (iv) the Company’s breach of any material terms of the Agreement;
or (v) the failure of the Company to require assumption of the Agreement by a
successor, except if such assumption would occur by operation of law.  Notwithstanding anything to the contrary
contained herein, “Good Reason” shall not be deemed to exist, and Executive may
not terminate his 

 11
 

employment for Good Reason, unless (i) Executive has provided written
notice to the Company of the existence of Good Reason within 90 days of the
occurrence of the event purporting to constitute Good Reason, (ii) the Company
fails to cure such event within 30 days of receipt of such notice (it being understood
that Executive ceasing to be the sole General Counsel and Corporate Secretary
of a legal entity whose securities are registered pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended, is a circumstance which is not
curable by the Company) and (iii) Executive terminates his employment within 5
days after the later of the Company’s failure to cure such event or, if such
termination occurs after a Change in Control, the expiration of the six-month
period specified in Section 3(f).

(iv)                             The term  “Change in Control” shall mean:

(A)                              any “person” (as such
term is used in Sections 3(a)(9) and 13(d) of the Exchange Act) or “group” (as
such term is used in Section 14(d)(2) of the Exchange Act) is or becomes a “beneficial
owner” (as such term is used in Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of the Voting Stock of the Company other than pursuant to a
Corporate Transaction (as defined below) that does not constitute a Change in
Control under clause (E), below; provided that this clause (A) shall not apply
with respect to a stockholder of the Company who beneficially owns more than
25% of the Voting Stock of the Company on the effective date of the Agreement;

(B)                                all or substantially
all of the assets or business of the Company are disposed of pursuant to a
merger, consolidation or other transaction unless the stockholders of the
Company immediately prior to such merger, consolidation or other transaction
beneficially own, directly or indirectly, in substantially the same proportion
as they owned the Voting Stock of the Company, substantially all of the voting
stock or other ownership interests of the entity or entities, if any, that
succeed to the business of the Company;

(C)                                a majority of the Board
consists of individuals other than Incumbent Directors, which term means the
members of the Board on the effective date of the Agreement or, if any such
individual is no longer a member of the Board, any successor to any such
individual (or to any successor to any such individual) if the election or
nomination for election of such individual or successor was supported by a
majority of the directors who then comprised the Incumbent Directors;

(D)                               the Company adopts any
plan of liquidation providing for the distribution of all or substantially all
of its assets if such plan of 

 12
 

liquidation will result in the winding-up of the business of the
Company; or

(E)                                 the consummation of
any merger, consolidation or other similar corporate transaction (a “Corporate
Transaction”) unless, immediately after such transaction, the stockholders of
the Company immediately prior to the transaction own, directly or indirectly,
in substantially the same proportion as they owned the Voting Stock of the
Company prior to such transaction, more than 50% of the Voting Stock of the
company surviving such transaction or its ultimate parent company if such
surviving company is a subsidiary of another entity (there being excluded from
the number of shares held by such stockholders, but not from the Voting Stock of
the combined company, any shares received by affiliates of such other company
in exchange for stock of such other company).

For purposes of this Change in Control definition, “the
Company” shall include any entity that succeeds to all or substantially all of
the business of the Company and “Voting Stock” shall mean securities of any
class or classes having general voting power under ordinary circumstances, in
the absence of contingencies, to elect the directors of a corporation.

(g)                                 To
the extent required by Section 409A of the Code, any payment required to be
made to Executive under this Section 5 shall be deferred until the first day of
first month commencing after the six month anniversary of Executive’s
termination of employment.  The Company
shall make a lump sum payment to Executive on or about such date in an amount
equal to the aggregate payments that would have otherwise been paid to
Executive during such deferral period.

(h)                                 Amounts
payable to Executive pursuant to this Section 5 shall be in full and complete
satisfaction of Executive’s rights under this Agreement and any other claims he
may have in respect of employment by the Company and its related Entities.

6.                                      Parachute
Payments.

In the event any payments to Executive constitute “parachute
payments” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), and will be subject to an excise tax imposed
pursuant to Section 4999 of the Code, Executive’s severance benefits will be
provided either in full or to such lesser extent which would result in no
portion of such benefits being subject to such excise tax, whichever results in
Executive receiving the greatest amount of severance benefits on an after-tax
basis (notwithstanding that all or some portion of such benefits may be subject
to such excise tax).  In the event
Executive’s severance benefits are required to be reduced, Executive may select
which portion(s) of his “excess parachute payments” benefits will be reduced or
eliminated.

 13
 

7.                                      No
Conflicting Obligations; No Conflicting Agreements.

Executive represents and warrants to the Company that
(i) Executive is not a party to or subject to any other binding covenants,
contracts, agreements, arrangements, employee manuals or other writings
regarding his employment with any third party, (ii) Executive has the ability
and the authority to enter into this Agreement, (iii) entering into and
performing under this Agreement will not violate any agreement between
Executive and any third party, and (iv) there exist no obligations to any third
party that will restrict Executive’s performance of his duties to the Company
under this Agreement.

8.                                      Notification
of New Employer.

Prior to accepting any other employment during the
Period of Restriction, Executive shall notify his potential new employer of
those of his obligations which are continuing under this Agreement after the
termination thereof.

9.                                      Notices.

Any notice, request or other communication permitted
or required by this Agreement shall be in writing and shall be deemed to have
been given (i) immediately when personally delivered to the recipient (provided
a written acknowledgment of receipt is obtained), (ii) five (5) days after
mailing by certified or registered mail, postage prepaid, return receipt
requested or (iii) two (2) days after being sent by a nationally recognized
overnight courier (provided that a written acknowledgment of receipt is
obtained by the overnight courier), to the party concerned at the address
indicated below (or such other address as the recipient shall have specified by
ten (10) days’ advance written notice given in accordance with this Section 9).

	
  

  	
  If to the
  Company:

  	
  GFI Group Inc.

  
	
   

  	
  100 Wall Street

  
	
   

  	
  New York, NY
  10005

  
	
   

  	
  Attn: Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  If to Executive:

  	
  at the address on file with the Company.

  

 

10.                               Opportunity
for Review.

EXECUTIVE ACKNOWLEDGES THAT HE HAS REVIEWED THIS
AGREEMENT CAREFULLY AND HAS HAD AMPLE OPPORTUNITY TO OBTAIN ADVICE AS TO THE
MEANING OF THE TERMS, COVENANTS AND AGREEMENTS CONTAINED HEREIN FROM SUCH
PROFESSIONAL ADVISORS AS EXECUTIVE HAS DEEMED APPROPRIATE OR NECESSARY.

11.                               Indemnification.

(a)                                  During
the Term and thereafter, the Company shall provide Executive with coverage
under its current directors’ and officers’ liability policy to the same extent
that it provides such coverage to its other senior executives.  Subject to limitations imposed by law, the
Company’s by-laws and the Company’s directors’ and officers’ liability policy,
the Company shall indemnify and hold harmless Executive to the fullest extent
permitted by law from and 

 14
 

against any and all claims, damages, expenses
(including attorneys’ fees), judgments, penalties, fines, settlements, and all
other liabilities incurred or paid by him in connection with the investigation,
defense, prosecution, settlement or appeal of any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative and to which Executive was or is a party or is threatened to
be made a party by reason of the fact that Executive is or was an officer,
employee or agent of the Company or any of its affiliates, or by reason of
anything done or not done by Executive in any such capacity or capacities,
provided that Executive acted in good faith, in a manner that was not grossly
negligent and did not constitute willful misconduct and, with respect to any
criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful.  The Company also shall pay
any and all expenses (including attorneys’ fees) incurred by Executive as a
result of Executive being called as a witness in connection with any matter
involving the Company and/or any of its officers or directors.

(b)                                 The
Company shall pay any expenses (including attorneys’ fees), judgments,
penalties, fines, settlements,
and other liabilities incurred by Executive in investigating, defending,
settling or appealing any action, suit or proceedings described in this Section
11 in advance of the final disposition of such action, suit or proceeding.  The Company shall promptly pay the amount of
such expenses to Executive, but in no event later than ten (10) days following
Executive’s delivery to the Company of a written request for an advance
pursuant to this Section 11, together with a reasonable accounting of such
expenses.

(c)                                  Executive
hereby undertakes and agrees to repay to the Company any advances made pursuant
to this Section 11 if and to the extent that it shall ultimately be found in
the final judicial decision that Executive is not entitled to be indemnified by
the Company for such amounts.  In
connection with any advancement of expenses, Executive further agrees to
execute and deliver the Company’s customary form of undertaking to repay such
advances if and to the extent that it shall ultimately be found in the final
judicial decision that Executive is not entitled to be indemnified by the
Company for such amounts.

(d)                                 The
Company shall make the advances contemplated by this Section 11 regardless of
Executive’s financial ability to make repayment, and regardless of whether
indemnification of the indemnitee
by the Company will ultimately be required. 
Any advances and undertakings to repay pursuant to this Section 11 shall
be unsecured and interest free.

(e)                                  The
provisions of this Section 11 shall survive the termination of the  Term or expiration of the term of this Agreement.

(f)                                    If
Executive has any knowledge of any actual or threatened action, suit or
proceeding, whether civil, criminal, administrative or investigative, as to
which Executive may request indemnity under this Section 11, Executive will
give the Company prompt written notice thereof; provided, that the
failure to give such notice shall not affect Executive’s right to
indemnification.

 15
 

12.                               General.

(a)                                  To
the extent Executive would be subject to the additional 20% tax imposed on
certain deferred compensation arrangements pursuant to Section 409A of the
Code as a result of any provision of this Agreement, the Company agrees to
cooperate with Executive to execute any amendment to the provisions hereof
reasonably necessary to implement this Section 13(a) but only (i) to the
minimum extent necessary to avoid application of such tax and (ii) to the
extent that the Company would not, as a result, suffer any adverse
consequences.  Notwithstanding the
foregoing, the Company shall not be responsible for any additional 20% tax
imposed pursuant to Code Section 409A, nor will the Company indemnify or
otherwise reimburse Executive for any liability incurred as a result of Code
Section 409A.

(b)                                 No
waiver by the Company of any breach of this Agreement will be a waiver of any
preceding or subsequent breach. No waiver by the Company of any right under
this Agreement will be construed as a waiver of any other right. The Company
will not be required to give notice to enforce strict adherence to all terms of
this Agreement.

(c)                                  The
captions and paragraph headings used in this Agreement are for convenience of
reference only, and will not affect the construction or interpretation of this
Agreement or any of the provisions hereof.

(d)                                 This
Agreement shall be governed by, and construed and enforced in accordance with,
the internal laws of the State of New York without regard to their conflicts of
law provisions.  Each of the parties
hereto acknowledges that service of process in any proceeding before a court of
law arising out of or in connection with this Agreement may be made by delivery
of a copy thereof in accordance with the notice provisions of Section 10 of
this Agreement.

(e)                                  Except
for an action described in Section 4(d) or as required by the rules and
regulations of the National Association of Securities Dealers, the parties
hereby agree that all claims, disputes or controversies arising under this
Agreement or otherwise concerning in any way Executive’s employment (“Claims”),
including, without limitation, Claims for wages or salary, severance or other
compensation; Claims for breach of any contract or covenant (express or
implied); tort Claims; Claims for any type of discrimination including, without
limitation, race, sex, religion, national origin, age, marital status or
disability; Claims for benefits (except where any applicable employee benefit
or pension plan specifies a different procedure for resolving such Claims) and
Claims for violation of any federal, state or other governmental law, statute,
regulation, rule or ordinance (but excluding Claims for worker’s compensation
or unemployment benefits), shall be resolved only in the courts of the State of
New York sitting in the County of New York or the United States District Court
for the Southern District of New York and the appellate courts having
jurisdiction of appeals in such courts. 
In that context, and without limiting the generality of the foregoing (but
subject to Section 4(d) and the rules and regulations promulgated by the
National Association of Securities Dealers), each of the parties hereto
irrevocably and unconditionally (a) submits for himself or itself in any Claim,
or for the recognition and enforcement of any judgment in respect thereof (a “Proceeding”),
to the exclusive jurisdiction of the courts of the State of New York sitting in
the Count of New York, the court of the United States of America for the
Southern District of New York, and appellate courts having jurisdiction of
appeals from any of the foregoing, and agrees that all claims in respect of any
such Claim shall be heard and determined in such New York State court or, to
the 

 16
 

extent permitted by law, in such federal
court; (b) consents that any such Claim may and shall be brought in such courts
and waives any objection that he or it may now or thereafter have to the venue
or jurisdiction of any such Claim in any such court or that such Claim was
brought in an inconvenient court and agrees not to plead or claim the same; (c)
waives all right to trial by jury in any Claim (whether based on contract, tort
or otherwise) arising out of or relating to this Agreement or Executive’s
employment by the Company or any Related Entity, or his or its performance
under or the enforcement of this Agreement; (d) agrees that service of process
in any such Claim may be effected by mailing a copy of such process by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such party at his or its address as provided in Section 9;
and (e) agrees that nothing in this Agreement shall affect the right to effect
service of process in any other manner permitted by the laws of the State of
New York.

(f)                                    Executive agrees that, during the Term, for
(1) year thereafter and, if longer, during the pendancy of any litigation or
other proceeding or other proceeding, (i) Executive shall not communicate with
anyone (other than Executive’s attorneys and tax and/or financial advisors and
except to the extent Executive determines in good faith is necessary in the
performance of Executive’s duties hereunder) with respect to the facts or
subject matter of any pending or potential litigation, or regulatory or
administrative proceeding involving the Company or any of its affiliates, other
than any litigation or other proceeding in which Executive is a
party-in-opposition, without giving prior notice to the Company or the Company’s
counsel, and (ii) in the event that any other party attempts to obtain
information or documents from Executive (other than in connection with any
litigation or other proceeding in which Executive is a party-in-opposition)
with respect to matters Executive believes in good faith are related to such
litigation or other proceeding, Executive shall promptly so notify the Company’s
counsel.  Executive agrees to cooperate,
in a reasonable and appropriate manner, with the Company and its attorneys,
both during and after the termination of Executive’s employment, in connection
with any litigation or other proceeding arising out of or relating to matters
in which Executive was involved prior to the termination of Executive’s
employment to the extent the Company pays all expenses Executive incurs in
connection with such cooperation and to the extent such cooperation does not
unduly interfere (as determined by Executive reasonably and in good faith) with
Executive’s personal or professional schedule.

(g)                                 This
Agreement may be assigned by the Company without Executive’s consent to an affiliated
entity of the Company, including any survivor entity or other successor in
interest, but no such assignment shall relieve the Company of its full
responsibilities hereunder, or to a successor in interest to the assets and
business of the Company.  Executive may
not assign his rights or obligations under this Agreement without the written
consent of the Company.  This Agreement
will be binding upon and will inure to the benefit of the parties hereto and
their respective heirs, executors, administrators, personal representatives,
successors and permitted assigns.

(h)                                 This
Agreement may be executed in counterparts, each of which will be deemed to be
an original hereof, but all of which together will constitute one and the same
instrument.

(i)                                     This
Agreement constitutes the sole and entire agreement and understanding between
the parties hereto as to the subject matter hereof, and supersedes all prior
discussions, agreements and understandings of every kind and nature between
them as to such subject matter; 

 17
 

provided that, for the sake of clarity, this
Agreement (other than the provisions of this Agreement providing for the
acceleration of vesting of RSUs) shall not supersede any agreement entered into
with respect to any outstanding RSUs granted to Executive prior to the date
hereof.

(j)                                     This
Agreement is intended for the sole and exclusive benefit of the parties hereto
and their respective heirs, executors, administrators, personal
representatives, successors and permitted assigns, and no other person or
entity will have any right to rely on this Agreement or to claim or derive any
benefit herefrom absent the express written consent of the party to be charged
with such reliance or benefit.

(k)                                  If
any provision of this Agreement is held invalid or unenforceable, either in its
entirety or by virtue of its scope or application to given circumstances, such
provision will thereupon be deemed modified only to the extent necessary to
render same valid, or not applicable to given circumstances, or excised from this
Agreement, as the situation may require; and this Agreement will be construed
and enforced as if such provision had been included herein as so modified in
scope or application, or had not been included herein, as the case may be.

(l)                                     The
provisions of Section 4, 5, 9, 11 and 12 of this Agreement will survive the
termination of Executive’s employment in accordance with their terms.  The provisions of Sections 4 and 11 of this
Agreement will survive expiration of this Agreement as a result of the giving
of a Notice of Non Renewal by either party and will continue to apply in
accordance with their terms unless and until the parties provide otherwise in a
written agreement executed by both parties.

 18
 

IN WITNESS THEREOF, the parties have executed and
delivered this Agreement as of the date first written above.

	
  

  	
  GFI
  Group Inc.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Executive

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Scott
  Pintoff

  
						

 

 19

EXHIBIT
A

Form of
Release

THIS RELEASE (this “Release”)
is made as of this    th   day
of            , 200 ,
by and between [Name] (the “Company”), and [Name]  (“Executive”).

PRELIMINARY
RECITALS

A.                                   Executive’s
employment with the Company has terminated.

B.                                     [Executive
and the Company are parties to an Employment Agreement, dated as of                 (the “Agreement”)].

AGREEMENT

In consideration of the
payments due Executive under the Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

1.                                       Executive,
intending to be legally bound, does hereby, on behalf of himself and his
agents, representatives, attorneys, assigns, heirs, executors and
administrators (collectively, the “Executive Parties”) REMISE, RELEASE
AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries, parents, joint
ventures, and its and their officers, directors, shareholders, members, and
managers, and its and their respective successors and assigns, heirs,
executors, and administrators (collectively, the “Company Parties”) from
all causes of action, suits, debts, claims and demands whatsoever in law or in
equity, which Executive or any of the Executive Parties ever had, now has, or
hereafter may have, by reason of any matter, cause or thing whatsoever, from
the beginning of Executive’s initial dealings with the Company to the date of
this Release, and particularly, but without limitation of the foregoing general
terms, any claims arising from or relating in any way to Executive’s employment
relationship with Company, the terms and conditions of that employment
relationship, and the termination of that employment relationship, including,
but not limited to, any claims arising under the Age Discrimination in
Employment Act, as amended, 29 U.S.C. § 621 et seq. (“ADEA”), Title VII of The
Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil
Rights Act of 1966, 42 U.S.C. §1981, the Civil Rights Act of 1991, Pub. L. No.
102-166, the Americans with Disabilities Act, 

 20
 

42 U.S.C. §12101 et seq., the Age Discrimination in
Employment Act, as amended, 29 U.S.C. §621 et seq., the Fair Labor Standards
Act, 29 U.S.C. §201 et seq., the National Labor Relations Act, 29 U.S.C. §151
et seq., and any other claims under any federal, state or local common law,
statutory, or regulatory provision, now or hereafter recognized, but not
including such claims to payments and other rights provided Executive under the
Agreement.  This Release is effective
without regard to the legal nature of the claims raised and without regard to
whether any such claims are based upon tort, equity, implied or express
contract or discrimination of any sort. 
Except as specifically provided herein, it is expressly understood and
agreed that this Release shall operate as a clear and unequivocal waiver by
Executive of any claim for accrued or unpaid wages, benefits or any other type
of payment.

2.                                       Executive
expressly waives all rights afforded by any statute which limits the effect of
a release with respect to unknown claims. 
Executive understands the significance of his release of unknown claims
and his waiver of statutory protection against a release of unknown claims.

3.                                       Executive
agrees that he will not be entitled to or accept any benefit from any claim or
proceeding within the scope of this Release that is filed or instigated by him
or on his behalf with any agency, court or other government entity.

4.                                       The
parties agree and acknowledge that the Agreement, and the settlement and
termination of any asserted or unasserted claims against the Company and the
Company Parties pursuant to this Release, are not and shall not be construed to
be an admission of any violation of any federal, state or local statute or
regulation, or of any duty owed by the Company or any of the Company Parties to
Executive.

5.                                       Executive
certifies and acknowledges as follows:

(a)                                  That
he has read the terms of this Release, and that he understands its terms and
effects, including the fact that he has agreed to RELEASE AND FOREVER DISCHARGE
the Company and all Company Parties from any legal action or other liability of
any type related in any way to the matters released pursuant to this Release
other than as provided in the Agreement and in this Release;

(b)                                 That
he has signed this Release voluntarily and knowingly in exchange for the
consideration described herein, which he acknowledges is adequate and
satisfactory to him and which he acknowledges is in addition to any other
benefits to which he is otherwise entitled;

(c)                                  That
he has been and is hereby advised in writing to consult with an attorney prior
to signing this Release;

(d)                                 That
he does not waive rights or claims that may arise after the date this Release
is executed or those claims arising under the Agreement with respect to
payments and other rights due Executive on the date of, or during the period
following, the termination of his Employment;

 21
 

(e)                                  That
the Company has provided him with adequate opportunity, including a period of
twenty-one (21) days from the initial receipt of this Release and all other
time periods required by applicable law, within which to consider this Release
(it being understood by Executive that Executive may execute this Release less
than 21 days from its receipt from the Company, but agrees that such execution
will represent his knowing waiver of such 21-day consideration period), and he
has been advised by the Company to consult with counsel in respect thereof;

(f)                                    That
he has seven (7) calendar days after signing this Release within which to
rescind, in a writing delivered to the Company, the portion of this Release
related to claims arising under ADEA or any other claim arising under any other
federal, state or local that requires extension of this revocation right as a
condition to the valid release and waiver of such claim; and

(g)                                 That
at no time prior to or contemporaneous with his execution of this Release has
he filed or caused or knowingly permitted the filing or maintenance, in any
state, federal or foreign court, or before any local, state, federal or foreign
administrative agency or other tribunal, any charge, claim or action of any
kind, nature and character whatsoever (“Claim”), known or unknown,
suspected or unsuspected, which he may now have or has ever had against the
Company Parties which is based in whole or in part on any matter referred to in
Section 1 above; and, subject to the Company’s performance under this Release,
to the maximum extent permitted by law, Executive is prohibited from filing or
maintaining, or causing or knowingly permitting the filing or maintaining, of
any such Claim in any such forum. 
Executive hereby grants the Company his perpetual and irrevocable power
of attorney with full right, power and authority to take all actions necessary
to dismiss or discharge any such Claim. 
Executive further covenants and agrees that he will not encourage any
person or entity, including but not limited to any current or former employee,
officer, director or stockholder of the Company, to institute any Claim against
the Company Parties or any of them, and that except as expressly permitted by
law or administrative policy or as required by legally enforceable order he
will not aid or assist any such person or entity in prosecuting such Claim.

6.                                       The
Company (meaning, solely for this purpose, the Company’s directors and
executive officers and other individuals authorized to make official
communications on the Company’s behalf) will not disparage Executive or
Executive’s performance or otherwise take any action which could reasonably be
expected to adversely affect Executive’s personal or professional
reputation.  Similarly, Executive will
not disparage any Company Party or otherwise take any action which could
reasonably be expected to adversely affect the personal or professional
reputation of any Company Party.

7.                                       Miscellaneous

(a)                                  This
Release and the Agreement, and any other documents expressly referenced
therein, constitute the complete and entire agreement and understanding of
Executive and the Company with respect to the subject matter hereof, and
supersedes in its entirety any and all prior understandings, commitments,
obligations and/or agreements, whether written or oral, with respect thereto;
it being understood and agreed that this Release 

 22
 

and including the mutual
covenants, agreements, acknowledgments and affirmations contained herein, is
intended to constitute a complete settlement and resolution of all matters set
forth in Section 1 hereof.

(b)                                 The
Company Parties are intended third-party beneficiaries of this Release, and
this Release may be enforced by each of them in accordance with the terms
hereof in respect of the rights granted to such Company Parties hereunder.  Except and to the extent set forth in the
preceding two sentences, this Release is not intended for the benefit of any
Person other than the parties hereto, and no such other person or entity shall
be deemed to be a third party beneficiary hereof.  Without limiting the generality of the foregoing,
it is not the intention of the Company to establish any policy, procedure,
course of dealing or plan of general application for the benefit of or
otherwise in respect of any other employee, officer, director or stockholder,
irrespective of any similarity between any contract, agreement, commitment or
understanding between the Company and such other employee, officer, director or
stockholder, on the one hand, and any contract, agreement, commitment or
understanding between the Company and Executive, on the other hand, and
irrespective of any similarity in facts or circumstances involving such other
employee, officer, director or stockholder, on the one hand, and Executive, on
the other hand.

(c)                                  The
invalidity or unenforceability of any provision of this Release shall not
affect the validity or enforceability of any other provision of this Release,
which shall otherwise remain in full force and effect.

(d)                                 This
Release may be executed in separate counterparts, each of which shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

(e)                                  The
obligations of each of the Company and Executive hereunder shall be binding
upon their respective successors and assigns. 
The rights of each of the Company and Executive and the rights of the
Company Parties shall inure to the benefit of, and be enforceable by, any of
the Company’s, Executive’s and the Company Parties’ respective successors and
assigns.  The Company may assign all
rights and obligations of this Release to any successor in interest to the
assets of the Company.

(f)                                    No
amendment to or waiver of this Release or any of its terms shall be binding
upon any party hereto unless consented to in writing by such party.

(g)                                 ALL ISSUES
AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY
CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF
DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW
OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

*   *  
*   *   *

 23
 

Intending to be
legally bound hereby, Executive and the Company have executed this Release as
of the date first written above.

	
   

  	
  [NAME]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

READ
CAREFULLY BEFORE SIGNING

I have read this Release
and have been given adequate opportunity,  including
21 days from my initial receipt of this Release, to review this Release and to consult
legal counsel prior to my signing of this Release.  I understand that by executing this Release I
will relinquish certain rights or demands I may have against the Company
Parties or any of them.

	
  

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name]

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness:

  	
   

  

 

 24

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