Document:

exv10w4

 

Exhibit 10.4

FOURTH AMENDMENT TO CONSULTING AGREEMENT

     This Fourth Amendment to Consulting Agreement (the “Amendment”) is made and entered into as
of April 1, 2000 (the “Effective Date of this Agreement”), on this 6 day of June, 2000, by and
between Se-Jin Lee, M.D., Ph.D. (the “Consultant”) and MetaMorphix, Inc., a Delaware Company (the
“Company”).

Explanatory Statement

          WHEREAS, the Consultant is the scientific founder of the Company; and

          WHEREAS, the Company and the Consultant have entered into a Consulting Agreement (the
“Consulting Agreement”) and a Non-Disclosure Agreement (the “Non-Disclosure Agreement”), each
dated December 1, 1994; a Non-Competition Agreement (the “Non-Competition Agreement”) dated April
18, 1995; an Amendment to Consulting Agreement dated as of January 1, 1997; a Second Amendment to
Consulting Agreement dated October 10, 1997; and a Third Amendment to Consulting Agreement dated
January 26, 1999 (collectively, the “Agreements”) which consulting relationship has continued
through the Effective Date of this Agreement; and

          WHEREAS, these Agreements have been reviewed by the Consultant’s Department Director and the
Committee on Conflict of Interest of the School of Medicine of The Johns Hopkins University; and

          WHEREAS, the Company and the Consultant wish to amend the Agreements to provide that the
Company will pay a consulting fee to the Consultant at the rate of $75,000 per annum for the
Consultant’s services; and

          WHEREAS, the Consultant desires to confirm his agreement to comply with the 1999
Collaboration Agreement and that nothing in this Amendment is meant to diminish the time and
effort devoted by the Consultant to The Johns Hopkins University and School of Medicine (“JHU”)
and his professional and academic efforts at that institution; and

          WHEREAS, the Consultant is not presently engaged to provide consulting services relating to
growth factors in the TGF-B super family to any other commercial entity.

 

 

Agreement

     NOW, THEREFORE, in consideration of the Explanatory Statement, which is deemed a substantive
part of this Amendment, the mutual covenants, agreements, representations, and warranties
contained herein, and for other good and valuable consideration, both the receipt and legal
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Scope of Work

     As set forth in the Consulting Agreement, as amended, the Consultant shall advise the Company
on the research and development of agricultural and animal health-based and other products
utilizing the Company’s growth factors in the TGF-l3 superfamily and such other consulting
services relating to the Company’s business as may be reasonably requested from time to time by
the Company (the “Services”), which Services shall not relate to the Discovery of any TGF-B
Factor, to any GI Factors, or to any Additional Factors, as these terms are defined in the 1999
Collaboration Agreement and, to the extent the Services pertain to Collaborative Research as
defined in the 1999 Collaboration Agreement, such services shall be performed in accordance with
Section 3.10 of the 1999 Collaboration Agreement. The Consultant’s efforts, in total, shall not
exceed twenty-six (26) days per year.

2. Compensation

     As compensation for the consulting services to be rendered by the Consultant, effective April
1, 2000, the Company shall pay to the Consultant, on a quarterly basis, a consulting fee at the
rate of $75,000 per annum.

3. Term

     The Company hereby engages the Consultant to perform the consulting services for a term of
one (1) year from the date of this Amendment, which term shall automatically renew unless either
the Company or the Consultant gives the other at least thirty (30) days prior written notice of a
desire to terminate the consulting relationship upon such anniversary.

4. Consulting, Non-Disclosure and Non-Compete Agreements

     The terms of the Agreements are incorporated herein by reference, except to
the extent specifically modified by the terms of this Amendment.

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     Relationship with JHU

     5.1 The parties hereto acknowledge that JHU is not a party to this Amendment, which is a
private contract between the Consultant and the Company.

     5.2 The Company and the Consultant recognize that the Consultant’s primary duty as a
full-time JHU faculty member is to JHU. The Company and the Consultant agree that JHU’s policies
and the Consultant’s obligation to JHU shall govern and be afforded primacy in the event a
conflict arises with this Amendment.

     5.3 With the limited exception of citing the Consultant’s faculty title, the Company and its
affiliates will not use the names, likenesses, or logos of The Johns Hopkins University, any of
its Schools or Divisions, or The Johns Hopkins Hospital and Health System in any of their
fundraising or investment documents, general publications, advertisements, or marketing and
promotional materials without the prior written permissions of The Johns Hopkins University. A
request for such permission must be submitted by the Consultant to The Johns Hopkins University
School of Medicine’s Office of Public Affairs and the School of Medicine’s Conflict of Interest
Review Coordinator.

     5.4 The Company recognizes that the Consultant, as an employee of JHU, is bound by certain
policies of JHU with respect to JHU’s property.

     5.5 The Company recognizes that the Consultant, as an employee of JHU, is subject to the
Invention Policy of JHU, a copy of which has been provided to the Company.

     IN WITNESS WHEREOF, the Company and the Consultant have executed this Fourth Amendment to
Consulting Agreement as of the date first written above.

	 	 	 	 	 
	METAMORPHIX, INC.	 	THE CONSULTANT
	 
	 	/s/ Edwin Quattlebaum	 	/s/ Se-Jin Lee
	

	 	By: Edwin Quattlebaum, Ph.D.
	 	Se-Jin Lee, M.D., Ph.D.
	 
	 	 	 	 
	

	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 
	

	 	 	 	 

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 Exhibit 10.5

METAMORPHIX, INC.

Amended and Restated

1996 Employees Incentive Stock Option Plan

(March 29, 2005)

1. Purpose.

     The purpose of this plan (the “Plan”) is to secure for MetaMorphix, Inc., a Delaware
corporation (the “Company”), and its shareholders, the benefits arising from capital stock
ownership by employees of the Company and any subsidiary corporations who are expected to
contribute to the Company’s future growth and success. Except where the context otherwise
requires, the term “Company” shall include all future subsidiaries of the Company as defined in
Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced from time
to time (the “Code”). Those provisions of the Plan which make express reference to Section 422
shall apply only to Incentive Stock Options (as that term is defined in the Plan).

2. Type of Options and Administration.

     2.1. Types of Options. Options granted pursuant to the Plan shall be incentive stock
options (“Incentive Stock Options”) meeting the requirements of Section 422 of the Code. The
Company, pursuant to its 1995 Non-Qualified Stock Option Plan (adopted by the Board of Directors on
December 12, 1995), may also grant Non-Statutory Options which are not intended to meet the
requirements of Section 422 of the Code (“Non-Statutory Options”).

     2.2. Administration.

          2.2.1. The Plan will be administered by the Board of Directors of the Company, whose
construction and interpretation of the terms and provisions of the Plan shall be final and
conclusive. The Board of Directors may in its sole discretion grant options to purchase shares of
the Company’s Common Stock (“Common Stock”) and issue shares upon exercise of such options as
provided in the Plan. The Board shall have authority, subject to the express provisions of the
Plan, to construe the respective option agreements and the Plan, to prescribe, amend, and rescind
rules and regulations relating to the Plan, to determine the terms and provisions of the respective
option agreements, which need not be identical, and to make all other determinations which are, in
the judgment of the Board of Directors, necessary or desirable for the administration of the Plan.
The Board of Directors may correct any defect, supply any omission or reconcile any inconsistency
in the Plan or in any option agreement in the manner and to the extent that it shall deem expedient
to carry the Plan into effect and it shall be the sole and final judge of such expediency. No
director or person acting

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pursuant to authority delegated by the Board of Directors shall be liable for any action or
determination under the Plan made in good faith.

          2.2.2. The Board of Directors may, to the full extent permitted by or consistent with
applicable laws or regulations and Section 3.1. of this Plan delegate any or all of its powers
under the Plan to a committee (the “Committee”) appointed by the Board of Directors, and if the
Committee is so appointed all references to the Board of Directors in the Plan shall mean and
relate to such Committee.

3. Eligibility.

     Options under this Plan may be granted only to persons who are, at the time of grant,
employees of the Company. A person who has been granted an option may, if he or she is otherwise
eligible, be granted additional options if the Board of Directors shall so determine.

4. Stock Subject to Plan.

     Subject to adjustment as provided in Section 14 and Section 15 below, the maximum number of
shares of Common Stock which may be issued and sold under this Plan is Five Million Seven Hundred
Fifty Thousand (5,750,000) shares of Common Stock. If an option granted under the Plan shall expire
or terminate for any reason without having been exercised in full, the unpurchased shares subject
to such option shall again be available for subsequent option grants under the Plan.

5. Forms of Option Agreements.

     As a condition to the grant of an option under the Plan, each recipient of an option shall
execute an option agreement in such form not inconsistent with the Plan as may be approved by the
Board of Directors. Such option agreements may differ among recipients.

6. Purchase Price.

     6.1. General. Subject to Section 2.2., the purchase price per share of stock
deliverable upon the exercise of an option shall be determined by the Board of Directors,
provided, however, that the exercise price shall not be less than 100% of the fair
market value of such stock, as determined by the Board of Directors, at the time of grant of such
option, or less than 110% of such fair market value in the case of options described in Section
11(b).

     6.2. Payment of Purchase Price.

          6.2.1. Options granted under the Plan may provide for the payment of the exercise price by
delivery of (a) cash or a check to the order of the Company in an amount equal to the exercise
price of such options, (b) shares of Common Stock of the Company already owned by the optionee
having a Fair Market Value equal in amount to the exercise price of the options being exercised, or
(c) any combination of the

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aforementioned methods or by any other means deemed acceptable by the Board of Directors.

          6.2.2. For purposes of this Section 6.2, the term “Fair Market Value” shall mean (1) if the
Common Stock is then traded on any national securities exchange or the Nasdaq National market, the
average closing price for the Company’s Common Stock for the last ten (10) trading days prior to
the Exercise Date, or (2) if not so traded, the good faith determination of the Board of Directors
of the Company.

7. Option Period.

     Each option and all rights thereunder shall expire on such date as shall be set forth in the
applicable option agreement, except that, in the case of an Incentive Stock Option, such date shall
not be later than ten years after the date on which the option is granted and, in all cases,
options shall be subject to earlier termination as provided in the Plan.

8. Exercise of Options.

     Each option granted under the Plan shall be exercisable either in full or in installments at
such time or times and during such period as shall be set forth in the agreement evidencing such
option, subject to the provisions of the Plan. No fractional shares of Common Stock shall be
issued upon exercise of this Option, nor shall the Company be required to pay cash in lieu of
fractional shares. All fractional shares shall be eliminated and all issuances of Common Stock
shall be rounded to the nearest whole share.

9. Nontransferability of Options.

     Options shall not be assignable or transferable by the person to whom they are granted, either
voluntarily or by operation of law, except by will or the laws of descent and distribution, and,
during the life of the optionee, shall be exercisable only by the optionee.

10. Effect of Termination of Employment or Other Relationship.

     Except as provided in Section 11(d), and subject to the provisions of the Plan, the Board of
Directors shall determine the period of time during which an optionee may exercise an option
following (a) the termination of the optionee’s employment or other relationship with the Company
or (b) the death or disability of the optionee. Such periods shall be set forth in the agreement
evidencing such option.

11. Incentive Stock Options.

     Options granted under the Plan are intended to be Incentive Stock Options and, accordingly,
shall be subject to the following additional terms and conditions:

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     (a) Express Designation. All Incentive Stock Options granted under the Plan shall, at
the time of grant, be specifically designated as such in the option agreement covering such
Incentive Stock Options.

     (b) 10% Shareholder. If any employee to whom an Incentive Stock Option is to be
granted under the Plan is, at the time of the grant of such option, the owner of stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company (after
taking into account the attribution of stock ownership rules of Section 424(d) of the Code), then
the following special provision shall be applicable to the Incentive Stock Option granted to such
individual:

	 	(i)  	The purchase price per share of the Common Stock subject to
such Incentive Stock Option shall not be less than 110% of the fair market
value of one share of Common of Common Stock at the time of grant; and

	 	(ii)  	The option exercise period shall not exceed five years from the
date of grant.

     (c) Dollar Limitation. For so long as the Code shall so provide, options granted to
any employee under the Plan (and any other incentive stock option plans of the Company) that are
intended to constitute Incentive Stock Options shall not constitute Incentive Stock Options to the
extent that such options, in the aggregate, become exercisable for the first time in any one
calendar year for shares of Common Stock with an aggregate fair market value (determined as of the
respective date or dates of grant) of more than $100,000.

     (d) Termination of Employment, Death or Disability. No Incentive Stock Option may be
exercised unless, at the time of such exercise, the optionee is, and has been continuously since
the date of grant of his or her option, employed by the Company, except that:

	 	(i)  	an Incentive Stock Option may be exercised within the period of
three months after the date the optionee ceases to be an employee of the
Company (or within such lesser period as may be specified in the applicable
option agreement); provided, however, that the agreement with
respect to such option may designate a longer exercise period, provided further
that the exercise after such three-month period shall be treated as the
exercise of a non-statutory option under the Plan;
	 
	 	(ii)  	if the optionee dies while in the employ of the Company, or
within three months after the optionee ceases to be such an employee, the
Incentive Stock Option may be exercised by the person to whom it is transferred
by will or the laws of descent and distribution within the period of one year
after the date of death (or within such lesser period as may be specified in
the applicable option agreement); and

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	 	(iii)  	if the optionee becomes disabled (within the meaning of
Section 22(e) of the Code or any successor provision thereto) while in the
employ of the Company, the Incentive Stock Option may be exercised within the
period of one year after the date the optionee ceases to be such an employee
because of such disability (or within such lesser period as may be specified in
the applicable option agreement).

For all purposes of the Plan and any option granted hereunder, “employment” shall be defined in
accordance with the provisions of Section 1.421-7(h) of the Income Tax Regulations (or any
successor regulations). Notwithstanding the foregoing provisions, no Incentive Stock Option may be
exercised after its expiration date.

12. Additional Provisions.

     12.1. Investment Representations. The Company may require any person to whom an
option is granted, as a condition of exercising such option, to give written assurances in
substance and form satisfactory to the Company to the effect that such person is acquiring the
Common Stock subject to the option for his or her own account for investment and not with any
present intention of selling or otherwise distributing the same, and to such other effects as the
Company deems necessary or appropriate in order to comply with federal and applicable state
securities laws, or with covenants or representations made by the Company in connection with any
public offering of its Common Stock.

     12.2. Compliance With Securities Laws. Each option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that the listing,
registration, or qualification of the shares subject to such option upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental or regulatory body,
or that the disclosure of non-public information or the satisfaction of any other condition is
necessary as a condition of, or in connection with, the issuance or purchase of shares thereunder,
such option may not be exercised, in whole or in part, unless such listing, registration,
qualification, consent, or approval, or satisfaction of such condition shall have been effected or
obtained upon conditions acceptable to the Board of Directors. Nothing herein shall be deemed to
require the Company to apply for or to obtain such listing, registration, or qualification, or to
satisfy such condition.

     12.3. Violations of Law. The Company shall not be required to sell or issue any
shares of stock under any Option if the sale or issuance of such shares would constitute a
violation by the individual exercising the Option or the Company of any provision of any law or
regulation of any governmental authority, including without limitation any federal or state
securities laws or regulations. Specifically in connection with the Securities Act of 1933 (as now
in effect) with respect to the shares of any Option, unless a registration statement under such Act
is in effect with respect to the shares of Stock covered by such Option, the Company shall not be
required to sell or issue such shares unless the Company has received evidence satisfactory to it
that the holder of such Option may acquire such

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shares pursuant to an exemption from registration under such Act, and the shares of Stock to be
issued upon the exercise of all or any portion of any Option granted under the Plan shall be issued
on the exercise of al or any portion of any Option granted under the Plan shall be issued on the
condition that the optionee represents that the purchase of Stock upon such exercise shall be for
investment purposes and not with a view to resale, distribution, offering, transferring,
mortgaging, pledging, hypothecating or otherwise disposing of any such Stock under the
circumstances which would constitute a public offering or distribution under the Securities Act of
1993 or the securities laws of any state. No shares of Stock shall be issued upon the exercise of
any Option unless the Company shall have received from the optionee a written statement
satisfactory to legal counsel for the Company containing the above representations, stating that
certificates representing such shares may bear a legend restricting their transfer and stating that
certificates representing such shares may bear a legend restricting their transfer and stating that
the Company’s transfer agent or agents may be given instructions to stop transfer of any
certificate bearing such legend. Such representation and restrictions provided for herein shall
not be required if (i) an effective registration statement for such shares under the Securities Act
of 1933 and any applicable state laws has been filed with the Securities and Exchange Commission
and with the appropriate agency or commission of any state whose laws apply to the transaction, or
(ii) an opinion of counsel satisfactory to the Company has been delivered to the Company to the
effect that registration is not required under the Securities Act of 1933 or under the applicable
securities laws of any state. Any determination by the Committee regarding the foregoing shall be
final, binding, and conclusive. The Company shall not be obligated to take any affirmative action
in order to cause the exercise of an Option or the issuance of shares pursuant thereto to comply
with any law or regulation or any governmental authority.

     12.4. Restriction on Transfer of Stock. The certificate or certificates for Stock
issued upon the exercise of an Option shall bear the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY PROVINCIAL
OR STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNTIL EITHER (1) A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE PROVINCIAL OR STATE
SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (2) AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR APPLICABLE
PROVINCIAL OR STATE SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH
OFFER, SALE OR TRANSFER.

13. Rights as a Shareholder.

     The holder of an option shall have no rights as a shareholder with respect to any shares
covered by the option (including, without limitation, any rights to receive dividends or non-cash
distributions with respect to such shares) or to inspect books and records until the date of issue
of a stock certificate to him or her for such shares. No adjustment shall be made for dividends or
other rights for which the record date is prior

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to the date such stock certificate is issued.

14. Adjustment Provisions for Recapitalizations and Related Transactions.

     14.1. General. If, through or as a result of any reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split, or other similar transaction,
(a) the outstanding shares of Common Stock are increased, decreased, or exchanged for a different
number or kind of shares or other securities of the Company or (b) additional shares or new or
different shares or other securities of the Company or other non-cash assets are distributed with
respect to such shares of Common Stock or other securities, an appropriate and proportionate
adjustment may be made in (i) the maximum number and kinds of shares reserved for issuance under
the Plan, (ii) the number and kind of shares or other securities subject to any then outstanding
options under the Plan, and (iii) the price for each share subject to any then outstanding options
under the Plan, without changing the aggregate purchase price as to which such options remain
exercisable. Notwithstanding the foregoing, no adjustment shall be made pursuant to this Section
14 if such adjustment would cause the Plan to fail to comply with Section 422 of the Code.

     14.2. Board Authority to Make Adjustments. Any adjustments under this Section 14 will
be made by the Board of Directors, whose determination as to what adjustments, if any, will be made
and the extent thereof will be final, binding and conclusive. No fractional shares will be issued
under the Plan on account of any such adjustments.

15. Merger, Consolidation, Asset Sale, Liquidation, etc.

     In the event of (a) a “Change of Control” of the Company as a result of a merger,
consolidation, or any other event or series of events or (b) a sale or other disposition by the
Company of all or substantially all of the assets of the Company, each option under the Plan shall
terminate simultaneously with the happening of such event; provided, however, the
Company will issue a “Notice of Termination” to the optionee with respect to the options granted
hereunder. Such notice shall give the optionee the right, for a period of thirty (30) days after
the date of the Notice, to exercise all of the Option Shares granted to the optionee pursuant to
the Plan; provided, however, that the vesting of any and all options previously
granted to the optionees shall be automatically accelerated as of the date immediately prior to the
date of sending of the Notice of Termination. For purposes of this Section 15, the term “Change of
Control” shall mean a transaction, after which, any one or more persons acting together
collectively own an interest of greater than 50% of the Company’s voting power which such person(s)
did not own prior to such transaction.

16. No Special Employment Right.

     Nothing contained in the Plan or in any option shall confer upon any optionee any right with
respect to the continuation of his or her employment by the Company or interfere in any way with
the right of the Company at any time to terminate such employment “at will” or to increase or
decrease the compensation of the optionee.

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17. Other Employee Benefits.

     Except as to plans which by their terms include such amounts as compensation, the amount of
any compensation deemed to be received by an employee as a result of the exercise of an option or
the sale of shares received upon such exercise will not constitute compensation with respect to
which any other employee benefits of such employee are determined, including, without limitation,
benefits under any bonus, pension, profit-sharing, life insurance, or salary continuation plan,
except as otherwise specifically determined by the Board of Directors.

18. Amendment of the Plan.

     18.1. Process to Amend Plan. The Board of Directors may at any time, and from time to
time, modify or amend the Plan in any respect, except that if at any time the approval of the
shareholders of the Company is required under Section 422 of the Code or any successor provision
with respect to Incentive Stock Options, or under Rule 16b-3, the Board of Directors may not effect
such modification or amendment without such approval.

     18.2. Effect of Amendment and Consent of Optionees. The termination or any
modification or amendment of the Plan shall not, without the consent of an optionee, affect his or
her rights under an option previously granted to him or her. With the consent of the optionee
affected, the Board of Directors may amend outstanding option agreements in a manner not
inconsistent with the Plan. The Board of Directors shall have the right to amend or modify the
terms and provisions of the Plan and of any outstanding Incentive Stock Options granted under the
Plan to the extent necessary to qualify any or all such options for such favorable federal income
tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock
options under Section 422 of the Code.

19. Withholding.

     The Company shall have the right to deduct from payments of any kind otherwise due to the
optionee any federal, state, or local taxes of any kind required by law to be withheld with respect
to any shares issued upon exercise of options under the Plan. Subject to the prior approval of the
Company, which may be withheld by the Company in its sole discretion, the optionee may elect to
satisfy such obligations, in whole or in part, (a) by causing the Company to withhold shares of
Common Stock otherwise issuable pursuant to the exercise of an option or (b) by delivering to the
Company shares of Common Stock already owned by the optionee. The shares so delivered or withheld
shall have a fair market value equal to such withholding obligation. The fair market value of the
shares used to satisfy such withholding obligation shall be determined by the Company as of the
date that the amount of tax to be withheld is to be determined. An optionee who has made an
election pursuant to this Section 19 may only satisfy his or her withholding obligation with shares
of Common Stock which are not subject to any repurchase, forfeiture, unfulfilled vesting or other
similar requirements.

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20. Cancellation and New Grant of Options, Etc.

     The Board of Directors shall have the authority to effect, at any time and from time to time,
with the consent of any affected optionees, (a) the cancellation of any or all outstanding options
under the Plan and the grant in substitution therefore of new options under the Plan covering the
same or different numbers of shares of Common Stock and having an option exercise price per share
which may be lower or higher than the exercise price per share of the canceled options or (b) the
amendment of the terms of any and all outstanding options under the Plan to provide an option
exercise price per share which is higher or lower than the then-current exercise price per share of
such outstanding options.

21. Effective Date and Duration of the Plan.

     21.1. Effective Date. The Plan, upon the approval by the Company’s shareholders on
October 23, 1997, became effective when originally adopted by the Board of Directors on November
15, 1996. The Plan, which was amended and restated as directed and approved by the Board of
Directors on December 1, 2000, was further amended by the Board of Directors as of May 11, 2001,
and July 27, 2004, and was further amended by the Board of Directors on or as of other dates in
respect to increases on the reserve of shares for the Plan. Amendments to the Plan not requiring
shareholder approval shall become effective when adopted by the Board of Directors. Amendments
requiring shareholder approval (as provided in Section 18) shall become effective when adopted by
the Board of Directors, but no option granted after the date of such amendment shall become
exercisable (to the extent that such amendment to the Plan was required to enable the Company to
grant such option to a particular person) unless and until such amendment shall have been approved
by the Company’s shareholders. If such shareholder approval is not obtained within twelve months
of the Board’s adoption of such amendment, any options granted on or after the date of such
amendment shall terminate to the extent that such amendment was required to enable the Company to
grant such option to a particular optionee. Subject to this limitation, options may be granted
under the Plan at any time after the effective date and before the date fixed for termination of
the Plan.

     21.2. Termination. Unless sooner terminated in accordance with Section 16, the Plan
shall terminate upon the close of business on the day next preceding the tenth (10th)
anniversary of the date of its adoption by the Board of Directors, i.e., on November 15, 2006.
Options outstanding on such date shall continue to have force and effect in accordance with the
provisions of the instruments evidencing such options.

22. Provision for Foreign Participants.

     The Board of Directors may, without amending the Plan, modify awards or options granted to
participants who are foreign nations or employed outside the United States to recognize differences
in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax,
securities, currency, employee benefit, or other matters.

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	 	Adopted by the Board of Directors of
MetaMorphix, Inc. on November 15, 1996.
	 
	 	 
	

	 	Amended by the Board of Directors (as to number of
shares reserved) on or as of January 27, 1998,
March 24, 1999, January 14, 2000,
February 17, 2000 and July 31, 2000
	 
	 	 
	

	 	Amended and Restated as directed by the Board of
Directors on December 1, 2000
	 
	 	 
	

	 	Amended by the Board of Directors as of May 11, 2001
	 
	 	 
	

	 	Amended by the Board of Directors of
(as to number of shares reserved) on or as of
September 5, 2001, September 5, 2002, and September
8, 2003
	 
	 	 
	

	 	Amended by the Board of Directors of
on July 27, 2004
	 
	 	 
	

	 	Amended by the Board of Directors (as to number of
shares reserved) on March 29, 2005
	 
	 	 
	

	 	Restated as of March 29, 2005
	 
	 	 
	

	 	All of which Amendments, to the extent and as
required by Internal Revenue Code and this Plan, have
been approved by the Stockholders.

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