Document:

EX-10.34

CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been
omitted pursuant to a request for confidential treatment and, where applicable,
have been marked with an asterisk ("[****]") to denote where omissions have been
made. The confidential material has been filed separately with the Securities
and Exchange Commission.

                 LETTER OF INTENT AND LIMITED LICENSE AGREEMENT

               THIS LETTER OF INTENT AND LIMITED LICENSE AGREEMENT

    ("LOI/Limited License") is entered into this 28 day of July, 2000 by and
between MetaMorphix, Inc., a Delaware corporation with a business address at
1450 South Rolling Road, Baltimore, Maryland 21227 ("MMI") and Tyson Poultry,
Inc., a Delaware corporation with its principal place of business at 2210 West
Oaklawn Drive, Springdale, Arkansas 72762-6999 ("Tyson"). ("Tyson" and "MMI" may
each be referred to as a "Party" and may be collectively
referred to as the "Parties").

        WHEREAS, MMI is in the business of producing biotechnology-based
products focused on improving poultry production, livestock production and
animal health;

        WHEREAS, MMI has developed Myostatin(TM) Blockers, biotechnology-based
products that are administered by injection into chicken eggs to INHIBIT the
biological function of the Myostatin(TM) protein thereby causing an increase in
muscle mass and carcass weight, accelerated weight gain, improved feeding
efficiency, standardization and uniformity of growth of males and females and/or
improved nutritional profile of the meat ("Myostatin(TM) Blockers");

        WHEREAS, MMI represents that it either owns or holds valid exclusive
licenses to patent applications, patents and know-how (hereinafter collectively
referred to as "Myostatin Blocker Technology") related to the Myostatin Blockers
for non-human applications that (x) either disrupt or eliminate Myostatin
protein synthesis, bind to Myostatin" receptors or
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interfere with Myostatin(TM) signal transduction; and (y) result in an increase
or modification of muscle growth in chickens (the "MBT Applications");

        WHEREAS, Tyson is in the business of producing, processing and marketing
poultry products in the United States;

        WHEREAS, MMI desires that Tyson enter into a long term, non-exclusive,
nondivisible, personal license agreement with respect to the Myostatin(TM)
Blocker Technology for use in poultry production in the United States;

        WHEREAS, Tyson desires to conduct its own internal research and
evaluation of the Myostatin(TM) Blocker Technology under commercial broiler
production conditions prior to entering into a long term, non-exclusive,
non-divisible, personal license agreement (hereinafter "Long Term License
Agreement");

        WHEREAS, Tyson desires to enter into a Long Term License Agreement with
MMI provided that Tyson's internal research and evaluation of the Myostatin(TM)
Blocker Technology verifies that the Myostatin(TM) Blockers causes a material
increase in muscle mass and carcass weight, accelerated weight gain, improved
feeding efficiency, standardization and uniformity of growth of males and
females and/or improved nutritional profile of the meat ("Tyson Trials"); and

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        WHEREAS, MMI and Tyson desire to enter into this LOI/Limited License to
facilitate the Tyson Trials, to facilitate negotiations of agreements which will
govern the terms of the proposed Long Term License Agreement between MMI and
Tyson and to affirm Tyson's intention to participate in the Poultry Scientific
Advisory Committee, as defined in Paragraph 1(a) below.

        NOW, THEREFORE, in consideration of the mutual promises and benefits
acknowledged by each of the above Parties, the Parties agree to:

1.      RELATIONSHIP MANAGEMENT Each Party will employ the necessary resources
        to:

        (a)     formulate a committee comprised of all poultry companies that
                enter into license agreements with MMI, for the purpose of
                selecting an independent THIRD party to conduct commercial scale
                trials on the Myostatin(TM) Blocker Technology under commercial
                broiler production conditions ("Poultry Scientific Advisory
                Committee");

        (b)     develop and establish a general process for implementing an
                evaluation of the Myostatin Blocker Technology under commercial
                broiler production conditions and for the commencement of such
                commercial scale trials (the "Commercial Scale Trials") to be
                agreed upon according to the provisions of Paragraph 2 (c),
                INFRA;

        (c)     conduct the Commercial Scale Trials and the Tyson Trials in an
                effort to obtain the information necessary to support U.S.
                regulatory approval of products based upon the Myostatin(TM)
                Blocker Technology;

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        (d)     ensure that Tyson will provide MMI with monthly reports
                detailing the conduct and progress of the Tyson Trials;

        (e)     participate in regularly scheduled quarterly meetings in an
                effort to identify any further requisite scope of work and to
                analyze the year-to-date performance of the Tyson Trials and the
                Commercial Scale Trials; and

        (f)     designate relationship managers as a primary contact for the
                other Party.

        MMI RESPONSIBILITIES.
        ---------------------

        (a)     GRANT OF LIMITED LICENSE.

                (1)     Subject to the terms and conditions of this LOI/Limited
                        License, MMI hereby grants to Tyson a LIMITED
                        non-exclusive, non-divisible, personal license to use
                        the Myostatin Blocker Technology (the "Limited License")
                        for research conducted in the Tyson Trials solely
                        related to the MBT Applications and the products
                        developed using the Myostatin(TM) Blockers. This Limited
                        License is LIMITED to the use of the inventions and
                        know-how comprising the Myostatin(TM) Blocker Technology
                        for the evaluation of the use of Myostatin(TM) Blockers
                        by injection into chicken eggs under commercial broiler.
                        production.

                (ii)    The Limited License shall expire thirty (30) days
                        following the completion of the Commercial Scale Trials,
                        but may be extended by a written agreement between the
                        Parties.

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        (b)     POULTRY SCIENTIFIC ADVISORY COMMITTEE.

                (i)     MMI: shall form a Poultry Scientific Advisory Committee
                        for selecting an independent third party to conduct the
                        Commercial Scale Trials on the Myostatin(TM) Blocker
                        Technology.

                (ii)    MMI shall have the right to appoint the Chairman of the
                        Poultry Scientific Advisory Committee.

                (iii)   MMI agrees that Tyson, and every other poultry company
                        under contractual arrangements with MMI relating to the
                        Myostatin(TM) Blocker Technology, shall have the right
                        to appoint one (1) person to serve on the Poultry
                        Scientific Advisory Committee and that each committee
                        member, including the Chairman, shall have one (1) vote.

        (c)     COMMERCIAL SCALE TRIALS.

                (i)     MMI shall initiate the Commercial Scale Trials at its
                        own expense, but not to exceed One Hundred Thousand
                        Dollars ($100,000).

                (ii)    The Commercial Scale Trials are to be conducted by an
                        independent third party expert who will be approved by a
                        simple majority vote of the members of the Poultry
                        Scientific Advisory Committee.

                (iii)   MMI agrees that protocols for the Commercial Scale
                        Trials shall also be approved by a simple majority vote
                        of the members of the Poultry Scientific Advisory
                        Committee.

                (iv)    MMI shall be responsible for conducting, at its own
                        expense, all studies required for U.S. regulatory
                        approval of the use of the Myostatin(TM) Blocker
                        Technology in poultry production.

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                (v)     MMI shall be responsible for manufacturing and supplying
                        the Myostatin(TM) Blockers.

                (vi)    MMI agees that, conditioned upon the execution of this
                        LOI/Limited License, a Non-disclosure/Confidentiality
                        Agreement and a Material Transfer Agreement, it will
                        make the quantity of the Myostatin(TM) Blocker product
                        necessary to perform the Tyson Trials available for use
                        in the Tyson Trials on a cost plus ten percent (10%)
                        basis and to provide such technical assistance deemed
                        reasonably necessary by MMI for the successful
                        completion of the Tyson Trials.

        TYSON'S RESPONSIBILITIES.
        -------------------------

        (a)     Tyson will pay MMI a non-refundable fee of Two Hundred Fifty
                Thousand Dollars ($250,000) upon execution of this LOI/Limited
                License.

        (b)     POULTRY SCIENTIFIC ADVISORY COMMITTEE AND COMMERCIAL SCALE
                TRIALS.

                (i)     Tyson will appoint one (1) individual to serve on the
                        Poultry Scientific Advisory Committee.

                (ii)    Tyson agrees to a similar representation on the Poultry
                        Scientific Advisory Committee by all other poultry
                        companies under contractual arrangements with MMI
                        relating to the Myostatin(TM) Blocker Technology who
                        have agreed to participate in the Commercial Scale
                        Trials, that each committee member will have one (1)
                        vote and that MMI will appoint the Chairman, who shall
                        also have one (1) vote.

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<PAGE>

                (iii)   Tyson will accept the quantity of the Myostatin(TM)
                        Blocker product necessary to perform the Tyson Trials
                        made available by MMI to Tyson on a cost plus ten
                        percent (10%) basis for the purpose of conducting the
                        Tyson Trials.

                (iv)    Tyson shall be responsible for paying for all aspects of
                        the Tyson Trials and shall make any and all data and
                        results of the Tyson Trials available to MMI on a
                        monthly basis.

                (v)     During the term of this LOI/Limited License and until
                        the execution of a Long Term License Agreement by Tyson
                        and MMI, as set forth in Paragraph 4, INFRA, any
                        inventions, improvements thereof or know-how arising
                        from the Tyson Trials on the Myostatin(TM) Blocker
                        Technology or any patent application thereon: (a) will
                        be disclosed to MMI immediately; and (b) MMI will be
                        granted a royalty-free, exclusive, worldwide license to
                        the patent applications, patents or improvements
                        thereof, patent rights and know-how with additional
                        rights to sublicense them to third parties.

        (c)     Tyson agrees that, in its internal research and evaluation of
                the Myostatin(TM) Blocker Technology, it will comply with all
                federal and state regulatory laws and restrictions.

4.      LONG TERM LICENSE AGREEMENT.

        (a)     Upon successful completion of the Commercial Scale Trials, Tyson
                agrees to enter into good faith negotiations with MMI to enter
                into a Long Term License

                Agreement for the use of the Myostatin(TM) Blocker Technology
                (the "Long Term

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                License") limited to improving chicken meat production economics
                by inhibiting the biological function of the Myostatin(TM)
                protein by injecting Myostatin(TM) Blocker into chicken eggs,
                thereby creating benefits, including, but not limited to, an
                increase in muscle mass and carcass weight, accelerated weight
                gain, benefits, including, but not limited to, improved feeding
                efficiency, standardization and uniformity of growth of males
                and females and/or improved nutritional profile of the meat.
                Unless otherwise agreed to by the parties in-writing, a Long
                Term License Agreement shall be executed within ninety (90) days
                after the completion of the Commercial Scale Trials. It is also
                anticipated that MMI may enter into similar Long Term License
                Agreements with up to three additional poultry producers, to be
                selected within the discretion of MMI.

        (b)     It is anticipated that the Long Term License Agreement will be
                limited to the territory of the United States, without any
                rights of export ("Territory").

        (c)     It is anticipated that the Long Term License Agreement will have
                an initial term of five (5) years to begin upon U.S. regulatory
                approval for products produced using the Myostatin(TM) Blocker
                Technology and chickens produced from the Myostatin(TM) Blockers
                products, with a right to renew the license for similar five (5)
                year terms until the expiration date of the licensed patents,
                provided, HOWEVER, that renewal of the Long Term License
                Agreement will be conditioned upon Tyson's production exceeding
                certain minimum sales volumes which will be mutually agreed upon
                by Tyson and MMI. These renewals will be subject to the
                applicable patent term.

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<PAGE>

        (d)     It is anticipated that the license fee under the Long Term
                License, and any other license agreements entered into for the
                use of Myostatin(TM) Blockers with other poultry companies,
                shall have two components: (i) an up-front license fee and (ii)
                a royalty fee based on the value added per chicken by using the
                Myostatin(TM) Blockers (the "Value Added").

        (e)     It is anticipated that the aggregate of all up-front license
                fees under the Long Term License, and any other long term
                license agreement .MMI enters into with other poultry companies,
                shall total [****] Dollars ($[****]). Under any long term
                license agreement; it will be stipulated that Tyson will pay
                their PRO RATA share of the $[****] total up-front license fee
                based upon Tyson's production level of chickens in
                pounds-per-year as it relates to the total annual chicken
                production levels of all of MMI's licensees under the referenced
                agreements. For the purpose of the PRO RATA division of these
                up-front license fees, the calendar year 1999 will be used as
                the base year.

        (f)     It is anticipated that Tyson will pay its share of the up-front
                license fees on the following schedule: (i) one-quarter (1/4) of
                the total up-front license fee will be due upon the execution of
                the Long Term License Agreement; and (ii) one-quarter (1/4) of
                the total up-front license fee will be due upon the first,
                second and third anniversaries of the execution of the Long Term
                License Agreement.

        (g)     It is anticipated that the Value Added royalty of the license
                fee will equate to thirty percent (30%) of the value added to
                the licensees' chicken production from using the Myostatin(TM)
                Blacker Technology. This Value Added royalty will be calculated
                on a quarterly basis. Tyson, as a member of the Poultry Advisory

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<PAGE>

                Committee, shall participate in further negotiations with MMI
                and the other members of the Poultry Scientific Advisory
                Committee, to determine the Value Added royalty to be paid to
                MMI that will be based upon the average economic benefit
                provided by the Myostatin(TM) Blocker Technology on a
                cents-per-chicken basis. If the Poultry Scientific Advisory
                Committee cannot mutually agree on a Value Added amount to be
                included in the Long Term License, the Poultry Scientific
                Advisory Committee will agree to the appointment of a panel.of
                three (3) independent arbitrators to initiate non-binding
                arbitration to make this determination. It is anticipated that
                if the determination of the arbitrators is unsatisfactory to
                MMI, MMI reserves the right to terminate the negotiations with
                any dissenting member of the Poultry Scientific Advisory
                Committee.

        (h)     If the Parties enter into the Long Term License, it is
                anticipated that Tyson will provide sales and royalty reports
                within thirty (30) days of the end of each quarter.

        (i)     If the Parties enter into the Long Term License, MMI will credit
                the up-front license fee advanced by Tyson against any Value
                Added royalty to be paid under the Long Term License. However,
                MMI's obligation to credit Tyson's up-front license fee payments
                against any Value Added royalty payments will be LIMITED to no
                more than eighty percent (80%) of the total Value Added royalty
                due in any one year and shall continue from year to year until
                the up-front license fee has been fully credited. Upon
                completion of repayment to Tyson of its up-front license fees,
                Tyson will pay MMI the full ageed upon Value Added royalty for
                the duration of the term of the Long Term License.

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                It is anticipated that the Long Term License will contain
                representations, warranties and indemnities by the Parties
                customary for transactions and relationships of this nature for
                failure to perform covenants and for breach of representation
                and warranties.

                It is anticipated that the Long Term License Ageement shall
                CONTAIN provisions that:

                (i)     Tyson may terminate the Long Term License.Agreement at
                        any time upon thirty (30) days written notice;

                (ii)    If Tyson terminates, Tyson's rights to use the
                        Myostatin(TM) Blocker Technology will be revoked; and

                        MMI shall have the right to terminate the Long Term
                        License Ageement in the event of a breach of any of the
                        terms or conditions of the Long Term License Agreement.

        (l)     It is anticipated that the Long Term License Agreement will not
                be assignable, transferable or saleable without MMI's consent,
                which may be granted in MMI's sole discretion.

        (m)     It is anticipated that the Long Term License Agreement shall
                contain a provision that any new patent applications, patents'
                or improvements thereof, patent rights and know-how arising from
                Tyson's use or internal research of the Myostatin(TM) Blocker
                Technology shall be: (a) disclosed immediately; and (b) promptly
                granted to MMI through a royalty-free, non-exclusive, worldwide
                license with additional rights to sublicense them to third
                parties.

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        (n)     INDEMNIFICATION. Tyson and any other poultry company receiving a
                long term license from MMI to use the Myostatin Technology will
                agree to indemnify, defend and hold harmless MMI and its
                directors, officers, employees and agents from and against any
                and all claims threatened or initiated against MMI that arise
                under any federal or state antitrust or unfair competition law,
                and challenge any conduct under Paragraph 9 hereof or its
                implementing provision in the Long Term Licensing Agreement This
                agreement to indemnify, defend and hold harmless , shall cover
                any and all losses, expenses, damages, liabilities, and costs,
                including without limitation, interest, penalties, double or
                treble damages, reasonable attorneys' fees, court or litigation
                costs, costs associated with responding to any investigative
                demand or discovery request, judgments, and amounts paid in
                settlement by MMI (upon consultation with Tyson) arising from
                such claims or any claims supplemental to them. The agreement to
                indemnify, defend and hold harmless shall be effective
                throughout the term of the Long Term Licensing Agreement, and
                shall extend to any claim initiated or threatened after the
                termination of the Long Term Licensing Agreement, if such claim
                arises out of conduct that occurred during the term of the
                agreement.

5.      TERM AND TERMINATION OF LOI/LIMITED LICENSE.

        (a)     The term of the LOI/Limited License shall commence upon
                execution of this LOI/Limited License and shall terminate upon
                the completion of the Commercial Scale Trials (the "Term").

        (b)     Tyson shall have the right to terminate this L01/Limited License
                at any time, but agrees, that upon termination, MMI, due to the
                non-exclusive nature of this

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                LOI/Limited License, shall have the right to license the
                Myostatin(TM) Blocker Technology to a replacement poultry
                company to participate in the Poultry Scientific Advisory
                Committee and for the same uses in the field and Territory.

        (c)     Tyson agrees that termination of the agreement by Tyson will not
                provide Tyson with any residual rights to the Myostatin(TM)
                Blocker Technology.

        (d)     In the event of termination, the fee of Two Hundred Fifty
                Thousand Dollars ($250,000) will be retained by MMI.

        (e)     MMI shall have the right to terminate the LOI/Limited License in
                the event of a breach by Tyson of this LOI/Limited License.

        COSTS AND EXPENSES. Each Party will bear its own costs and expenses in
        connection with the transactions contemplated herein, except for the
        payment by Tyson on a cost plus ten percent (10%) basis to MMI for use
        of the Myostatin(TM) Blocker product in the Tyson Trials.

7.      CONFIDENTIALITY. The Parties agree to enter into a Non-Disclosure/
        Confidentiality Agreement and-agree that the terms of this LOI/Limited
        License and any of the agreements contemplated herein shall be subject
        to the provisions of the Non-Disclosure/Confidentiality agreement, the
        terms and conditions of which shall survive any termination or
        expiration of this LOI/Limited License or any subsequent agreement
        entered into between the Parties.

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8.      PUBLICITY. It is the Parties' intention to issue press releases
        concerning this LOI/Limited License. Such releases shall be mutually
        agreed upon and, prior to making such releases, neither Party shall:

                make any announcement, public or private;
                discuss the terms and conditions of the LOI/Limited License, the
                Poultry Scientific Advisory Committee, the Commercial Scale
                Trials or the Tyson Trials; or

        (c)     discuss any of the proposed transactions with any third party
                other than either Party's attorneys, without the prior consent
                of the other Party.

        After any such press release, all future communications or press
        releases will be limited to the contents of the initial press release.
        Thereafter, MMI, in its sole discretion, shall control and approve all
        other publicity regarding the Myostatin Blocker Technology.

        NON-EXCLUSIVE REIATIONSHIP Subject to the limitations set forth in
        Paragraph 4(a) above, nothing in this LOI/Limited License shall be
        construed as preventing or prohibiting MMI from entering into additional
        agreements with third parties for similar activities and/or services.

10.     ENTIRE AGREEMENT. All previous negotiations and understandings between
        MMI and Tyson, or their respective agents and employees, with respect to
        the transaction set forth herein, are merged into this LOI/Limited
        License, except for the Non-Disclosure/ Confidentiality Agreement and
        the Material Transfer Agreement, which alone fully and completely
        expresses the Parties' rights, duties and obligations with respect to
        its subject

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        matter and which may be amended only by a subsequent written agreement
        between the Parties.

11.     NO MERGER. The warranties, representations and covenants expressly made
        herein shall survive the termination of this LOI/Limited License and
        shall not be merged therein.

12.     GOVERNING LAW. This LOI/Limited License shall be governed by, and
        construed in accordance with, the laws of the State of Maryland, without
        giving effect to the conflict of laws principles thereof.

13.     CHOICE OF FORUM. Any action arising in any way out of this LOI/Limited
        License must be brought in the United States District Court, Northern
        District of Maryland, Baltimore Division or other court of competent
        jurisdiction sitting in Baltimore County, Maryland. MMI and Tyson hereby
        submit to the jurisdiction and venue of said courts for these purposes.

14.     SEVERABILITY. If any provision of this LOI/Limited License is found by a
        court of competent jurisdiction to be illegal, invalid, or
        unenforceable, the remainder of this LOI/Limited License will not be
        affected, and in lieu of each provision that is found to be illegal,
        invalid, or unenforceable, a provision will be added as a part of this
        LOI/Limited License that is as similar to the illegal, invalid, or
        unenforceable provision as may be possible and will be legal, valid and
        enforceable.

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15.     CONSTRUCTION. The rule of strict construction shall not apply to this
        LOI/Limited License. This LOI/Limited License has been prepared by MMI
        and its professional advisors and reviewed by Tyson. and its
        professional advisors. MMI, Tyson and their separate advisors believe
        that this LOI/Limited License is the product of all of their efforts,
        that it expresses their agreement, and that it should not be interpreted
        in favor of or against either MMI or Tyson merely because of their
        efforts in preparing it.

16.     CAUTIONS, GENDER, NUMBER, AND LANGUAGE OF INCLUSION. The captions are
        inserted in this LOI/Limited License only for convenience of reference
        and do not define, limit, or describe the scope or intent of any
        provisions of this LOI/Limited License. Unless the context clearly
        requires otherwise, the singular includes the plural, and vice versa,
        and the masculine, feminine, and neuter adjectives include one another.
        As used in this LOI/Limited License, the word "including" shall mean
        "including, but not limited to."

17.     BINDING EFFECT. This LOI/Limited License, shall be binding upon and
        inure to the benefit of the Parties hereto and their respective
        successors, permitted assigns, heirs and personal representatives.

18.     MERGER, ACQUISITION OR SIMILAR TRANSACTIONS.

        (a)     The Parties acknowledge that the Limited License granted
                hereunder has been negotiated with reference to the current
                operations of the Tyson. Accordingly, the Parties have agreed to
                the following terms governing merger, acquisition or similar
                transactions:

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                (i)     Any majority controlled subsidiary of Tyson, or of a
                        Tyson affiliate, that is created in the ordinary course
                        of business after the execution of this agreement shall
                        not affect the Lnrnited License herein;

                (ii)    Any Party that becomes a majority owned or controlled
                        subsidiary of Tyson, or of a then-existing licensed
                        Tyson affiliate, after the execution of the LOI/Limited
                        License shall, subject to the discretion and approval of
                        MMI, be made a Party to this LOI/Limited License;

                (iii)   Any licensed Tyson affiliate or business unit of Tyson
                        that is acquired by a third-party shall no longer be
                        entitled to the benefit of this Limited License; and

                (iv)    In the event a majority of the stock or assets of Tyson
                        are acquired or merged or consolidated with a third
                        person, the Limited License granted herein may be
                        rescinded at the sole discretion of MMI.

19.     ASSIGNMENT. Subject to the provisions of Paragraph 16 hereof, this
        LOI/Limited License may not be assigned by Tyson without the prior
        consent of MMI, which may be withheld for any reason.

20.     TIME. Time is of the essence of this LOI/Limited License and each and
        every provision hereof.

21.     NOTICE. Except as otherwise specified herein, all notices and other
        communications under this LOI Limited. License shall be in writing and
        shall be deemed to have been given if personally delivered or if sent by
        registered or certified United States mail, return receipt requested,
        postage prepaid, addressed to the proposed recipient at the last known

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        address of the recipient. Any Party may designate any other address to
        which notices shall be sent by giving notice of the address to the other
        Parties in the same manner as provided herein.

        WAIVER AND MODIFICATIONS. No provision of this LOI/Limited License shall
        be waived, unless in writing signed by the Party effecting such waiver.
        No waiver of the breach of any of the terms or provisions of this
        LOI/Limited License shall be a waiver of any preceding or succeeding
        breach of this LOI/LimitedLicense or any other provisions of it.

        No waiver of any default, express or implied, made by any Party hereto
        shall be binding upon the Party making such waiver the event of a
        subsequent default. This LOI/Limited License may only be modified or
        amended by a written agreement executed by each of the Parties.

23.     FURTHER PROVISIONS.

        (a)     LEGAL REPRESENTATION. The Parties hereto each acknowledge that,
                in entering into this LOI/Limited License, they have not relied
                upon any statements, representations, warranties,
                correspondence, negotiations, conditions, understandings,
                promises or agreements, oral or written, not specifically set
                forth in this LOI/Limited License, except those in the
                Non-Disclosure/Confidentiality Agreement and Material Transfer
                Agreement. All of the Parties to this LOI/Limited License
                represent that they are represented by legal counsel and have
                been fully advised as to the meaning and consequence of all of
                the terms and provisions of this LOI/Limited License.

        (b)     POST CONFORMING DOCUMENTS. The Parties hereto shall execute and
                deliver any and all additional papers, documents, and other
                assurances, and shall do any and

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                all acts and things reasonably necessary in connection with the
                performance of their obligations hereunder and to carry out the
                intent of the Parties hereto.

        (c)     AUTHORITY TO SIGN. All of the Parties hereto and their
                authorized representatives signing this LOI/Limited License
                represent and warrant that they have authority to execute and
                enter into this LOI/Limited License.

24.     CERTAIN PROHIBITIONS. Tyson, or any of Tyson's affiliates, agree not to,
        either directly or indirectly, through its subsidiaries and other
        affiliates or otherwise, provide financial or other support for, provide
        documentation to or provide testimony on behalf of, except as may be
        required by law, any third person in the prosecution or submission of
        any claim, suit, petition, application, request, against MMI or any of
        its subsidiaries, affiliates, agents, strategic partners or customers
        relating to the Myostatin(TM) Blocker Technology ("Claims").
        Furthermore, Tyson and Tyson's Affiliates will promptly give notice to
        MMI of all Claims of which they become aware and of all activities
        undertaken by third parties in preparation for assertion of all Claims,
        including without limitation attempts by third parties to solicit or
        organize financial or other support for the submission or assertion of
        any MMI.

25.     EFFECT OF LOI/LIMITED LICENSE PROVISIONS. The Parties shall negotiate in
        good faith toward the execution of the Long Term License Agreement
        described herein. The provisions of Paragraph represent the Parties'
        good faith intention to negotiate toward execution of a definitive long
        term agreement. Unless otherwise agreed to by the parties in writing, a
        Long Term License Agreement shall be executed within ninety (90) days

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        after the completion of the Commercial Scale Trials. Only the provisions
        of Paragaph 4 of this LOI/Limited License are not binding between the
        Parties and neither Party shall have any liability to the other if they
        fail to execute a definitive ageement for any reason.

                If you agree that the foregoing correctly expresses your present
        intent, please sign below in the space provided. The Parties shall
        thereafter negotiate in a positive and constructive manner with the
        objective of reaching a mutually satisfactory and definitive Long Term
        License.

        IN WITNESS WHEREOF, the Parties have agreed to and executed this
LOI/Limited License as of the date first above written.

METAMORPHIX, INC.                       TYSON POULTRY, INC.

By: /s/ Edwin C. Quattlebaum            By: /s/ Mike Baker
    -------------------------------         ----------------------------------

Name: EDWIN C. QUATTLEBAUM              Name: MIKE BAKER

Title: CHAIRMAN, PRESIDENT & CEO        Title:PRESIDENT OF PRODUCTION SERVICES

Date of Execution: 7/28/00              Date of Execution: July 28, 2000

                                       20EX-10.35

CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been
omitted pursuant to a request for confidential treatment and, where applicable,
have been marked with an asterisk ("[****]") to denote where omissions have been
made. The confidential material has been filed separately with the Securities
and Exchange Commission.

             LETTER OF INTENT, LIMITED LICENSE AND OPTION AGREEMENT

           THIS LETTER OF INTENT, LIMITED LICENSE AND OPTION AGREEMENT

("LOI/Limited License/Option Agreement") is entered into this 10th day of
November, 2000, by and between MetaMorphix, Inc., a Delaware corporation with a
business address at 1450 South Rolling Road, Baltimore, Maryland 21227 ("MMI")
and Pilgrim's Pride Corporation, a Delaware corporation with its principal place
of business at 110 S. Texas Street, Pittsburg, TX 75686 ("Pilgrim's Pride").
(Pilgrim's Pride and MMI may each be referred to as a "Party" and may be
collectively referred to as the "Parties").

        WHEREAS, MMI is in the business of producing biotechnology-based
products focused on improving poultry production, livestock production and
animal health;

        WHEREAS, MMI has developed Myostatin(TM) Blockers, biotechnology-based
products that are administered by injection into chicken eggs to inhibit the
biological function of the. Myostatin(TM) protein thereby causing an increase in
muscle mass and carcass weight, accelerated weight gain, improved feeding
efficiency, standardization and uniformity of growth of males and females and/or
improved nutritional profile of the meat ("Myostatin(TM) Blockers");

        WHEREAS, MMI represents that it either owns or holds valid exclusive
licenses to patent applications, patents and know-how (hereinafter collectively
referred to as "Myostatin(TM) Blocker Technology") related to the Myostatin(TM)
Blockers for non-human applications that (x) either disrupt or eliminate
Myostatin(TM) protein synthesis, bind to Myostatin(TM) receptors or interfere
with Myostatin(TM) signal transduction; and (y) result in an increase or
modification of muscle growth in chickens (the "MBT Applications");
<PAGE>

        WHEREAS, Pilgrim's Pride is in the business of producing, processing and
marketing poultry products in the. United States;

        WHEREAS, MMI desires that Pilgrim's Pride enter into a long term,
non-exclusive, non-divisible, personal license agreement with respect to the
Myostatin(TM) Blocker Technology for use in poultry production in the United
States;

        WHEREAS, Pilgrim's Pride desires to conduct its own internal research
and evaluation of the Myostatin(TM) Blocker Technology under commercial broiler
production conditions prior to entering into a long term, non-exclusive,
non-divisible, personal license agreement (hereinafter "Long Term License
Agreement");

        WHEREAS, Pilgrim's Pride desires to enter into a Long Term License
Agreement with MMI so that Pilgrim's Pride may conduct, at their option,
internal research and evaluation of the Myostatin(TM) Blocker Technology to
further verify that the Myostatin(TM) Blocker causes a material increase in
muscle mass and carcass weight, accelerated weight gain, improved feeding
efficiency, standardization and uniformity of growth of males and females and/or
improved nutritional profile of the meat ("Pilgrim's Trials"). Any further
references to such Pilgrims Trials made herein are made under the assumption
that Pilgrim's Pride will undertake the Pilgrim's Trials. If Pilgrim's Pride
does not conduct the Pilgrim's Trials, MMI will not consider this a breach of
this LOl/Limited License/Option Agreement; and

        WHEREAS, MMI and Pilgrim's Pride desire to enter into this LOI/Limited
License/Option Agreement to facilitate the Pilgrim's Pride commercial scale
trials, to facilitate negotiations of agreements which will govern the terms of
the proposed Long Term License Agreement between MMI and Pilgrim's Pride and to
affirm Pilgrim's Pride's intention to participate in the Poultry Scientific
Advisory Committee, as defined in Paragraph 1(a) below.

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<PAGE>

        NOW, THEREFORE, in consideration of the mutual promises and benefits
acknowledged by each of the above Parties, the Parties agree to:

1.      RELATIONSHIP MANAGEMENT. Each Party will employ reasonable efforts to
        provide the necessary resources to:

        (a)     form a committee comprised of all poultry companies that enter
                into license agreements with MMI, for the purpose of selecting
                an independent third party to conduct commercial scale trials on
                the Myostatin(TM) Blocker Technology under commercial broiler
                production conditions ("Poultry Scientific Advisory Committee");

        (b)     develop and establish a general process for implementing an
                evaluation of the Myostatin(TM) Blocker Technology under
                commercial broiler production conditions and for the
                commencement of such commercial scale trials (the "Commercial
                Scale Trials") to be agreed upon according to the provisions of
                Paragraph 2(b), INFRA;

        (c)     conduct the Commercial Scale Trials and the Pilgrim's Trials in
                an effort to obtain the information necessary to support U.S.
                regulatory approval of products based upon the Myostatin(TM)
                Blocker Technology;

        (d)     ensure that Pilgrim's Pride will provide Will with monthly
                reports detailing the conduct and progress of the Pilgrim's
                Trials;

        (e)     participate in regularly scheduled quarterly meetings in an
                effort to identify any further requisite scope of work and to
                analyze the year-to-date performance of the Pilgrim's Trials and
                the Commercial Scale Trials; and

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<PAGE>

        (f)     designate relationship managers as a primary contact for the
                other Party.

2.      GRANT OF LIMITED LICENSE.

        (a)     Subject to the terms and conditions of this LOI/Limited
                License/Option Agreement, MMI hereby grants to Pilgrim's Pride a
                limited non-exclusive, nondivisible, personal license to use the
                Myostatin(TM) Blocker Technology (the "Limited License") for
                research conducted in the Pilgrim's Trials solely related to the
                MBT Applications and the products developed using the
                Myostatin(TM) Blockers. This Limited License is limited to the
                use of the inventions and knowhow comprising the Myostatin(TM)
                Blocker Technology for the evaluation of the use of
                Myostatin(TM) Blockers by injection into chicken eggs under
                commercial broiler production.

        (b)     The Limited License shall expire thirty (30) days following the
                completion of the Commercial Scale Trials, but maybe extended by
                a written agreement between the Parties.

3.      MMI'S RESPONSIBILITIES.

        (a)     POULTRY SCIENTIFIC ADVISORY COMMITTEE.

                (i)     MNII shall form a Poultry Scientific Advisory Committee
                        for selecting an independent third party to conduct the
                        Commercial Scale Trials on the Myostatin(TM) Blocker
                        Technology.

                (ii)    MMI shall appoint the Chairman of the Poultry Scientific
                        Advisory Committee.

                (iii)   MMI agrees that Pilgrim's Pride, and every other poultry
                        company under contractual arrangements with MMI relating
                        to the Myostatin(TM) Blocker

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<PAGE>

                        Technology, shall have the right to appoint one (1)
                        person to serve on the Poultry Scientific Advisory
                        Committee and that each committee member, including the
                        Chairman, shall have one (1) vote.

        (b)     COMMERCIAL SCALE TRIALS.

                (i)     MNII shall initiate the Commercial Scale Trials at its
                        own expense, but not to exceed One Hundred Thousand
                        Dollars ($100,000). MMI further agrees that in the event
                        costs associated with the Commercial Scale Trials exceed
                        $100,000 that MNII will not request any monetary
                        contribution from Pilgrim's Pride to offset these cost
                        overruns.

                (ii)    The Commercial Scale Trials are to be conducted by an
                        independent third party expert who will be approved by a
                        simple majority vote of the members of the Poultry
                        Scientific Advisory Committee.

                        MMI agrees that protocols for the Commercial Scale
                        Trials shall also be approved by a simple majority vote
                        of the members of the Poultry Scientific Advisory
                        Committee.

                (iv)    MMI shall be responsible for conducting, at its own
                        expense, all studies required for U.S. regulatory
                        approval of the use of the Myostatin(TM) Blocker
                        Technology in poultry production.

                (v)     MMI shall be responsible for manufacturing and supplying
                        the Myostatin(TM) Blockers for the Commercial Scale
                        Trials.

        (c)     MMI agrees that, conditioned upon the execution of this
                LOI/Limited License, a Non-disclosure/Confidentiality Agreement
                (a copy of which is attached hereto as EXHIBIT A and
                incorporated herein by this reference), a Material Transfer

                                       5
<PAGE>

                Agreement (a copy of which is attached hereto as EXHIBIT B and
                incorporated herein by this reference) upon determination by
                MMI, in its sole discretion, that sufficient quantities of the
                Myostatin(TM) Blocker product exists to provide Pilgrim's Pride,
                it will make the quantity of the Myostatin(TM) Blocker product
                necessary to perform the Pilgrim's Trials available for use in
                the Pilgrim's Trials on a cost plus ten percent (10%) basis and
                to provide such technical assistance deemed reasonably necessary
                by MMI for the successful completion of the Pilgrim's Trials.

        PILGRIM'S PRIDE'S RESPONSIBILITIES.

        (a)     Pilgrim's Pride will pay MMI a non-refundable fee of Two Hundred
                Fifty Thousand Dollars ($250,000) upon execution of this
                LOI/Limited License.

        (b)     POULTRY SCIENTIFIC ADVISORY COMMITTEE. PILGRIM'S TRIALS AND
                COMMERCIAL SCALE TRIALS.

                (i)     Pilgrim's Pride will appoint one (1) individual to serve
                        on the Poultry Scientific Advisory Committee.

                (ii)    Pilgrim's Pride agrees to a similar. representation on
                        the Poultry Scientific Advisory Committee by all other
                        poultry companies under contractual arrangements with
                        MMI relating to the Myostatin(TM) Blocker Technology who
                        have agreed to participate in the Commercial Scale
                        Trials, that each committee member will have one (1)
                        vote and that MMI will appoint the Chairman, who shall
                        also have one (1) vote.

                (iii)   Pilgrim's Pride will accept the quantity of the
                        Myostatin(TM) Blocker product necessary to perform the
                        Pilgrim's Trials made available by MMI

                                       6
<PAGE>

                        to Pilgrim's Pride on a cost plus ten percent (10%)
                        basis for the purpose of conducting the Pilgrim's
                        Trials.

                (iv)    Pilgrim's Pride shall be responsible for paying for all
                        aspects of the Pilgrim's Trials and shall make any and
                        all data and results of the Pilgrim's Trials available
                        to MMI on a monthly basis.

                (v)     During the term of this LOI/Limited License/Option
                        Agreement and until the execution of a Long Term License
                        Agreement by Pilgrim's Pride and MMI, as set forth in
                        Paragraph 4, INFRA, any inventions, improvements thereof
                        or know-how arising from Pilgrim's Trials or the
                        Commercial Scale Trials on the Myostatin(TM) Blocker
                        Technology or any patent application thereon: (a) will
                        be disclosed to MMI immediately; and (b) MMI will be
                        granted a royalty-free, exclusive, worldwide license to
                        the patent applications, patents or improvements
                        thereof, patent rights and know-how with additional
                        rights to sublicense them to third parties.

        (c)     Pilgrim's Pride agrees that, in its internal research and
                evaluation of the Myostatin(TM) Blocker Technology, it will
                comply with all federal and state regulatory laws and
                restrictions.

        (d)     Pilgrim's Pride will participate in regularly scheduled
                quarterly meetings in an effort to identify any further
                requisite scope of work and to analyze the year-todate
                performance of the Commercial Scale Trials.

        (e)     Pilgrim's Pride will designate relationship managers as a
                primary contact for the other Party.

                                       7
<PAGE>

        LONG TERM LICENSE AGREEMENT.

        (a)     Upon successful completion of the Commercial Scale Trials,
                Pilgrim's Pride agrees to enter into good faith negotiations
                with MMI to enter into a Long Term License Agreement for the use
                of the Myostatin(TM) Blocker Technology (the "Long Term
                License") limited to improving chicken meat production economics
                by inhibiting the biological function of the Myostatin(TM)
                protein by injecting Myostatin(TM) Blocker into chicken eggs,
                thereby creating benefits, including, but not limited to, an
                increase in muscle mass and carcass weight, accelerated weight
                gain benefits, including, but not limited to, improved feeding
                efficiency, standardization and uniformity of growth of males
                and females and/or improved nutritional profile of the meat
                Unless otherwise agreed to by the parties in writing, a Long
                Term License Agreement shall be executed within ninety (90) days
                after the completion of the Commercial Scale Trials. It is also
                anticipated that MMI may enter into similar Long Term License
                Agreements with up to three additional poultry producers, to be
                selected within the discretion of MMI.

        (b)     It is anticipated that the Long Term License Agreement will be
                limited to the territory of the United States, without any
                rights of export ("Territory").

        (c)     It is anticipated that the Long Term License Agreement will have
                an initial term of five (5) years to begin upon U.S. regulatory
                approval for products produced using the Myostatin(TM) Blocker
                Technology and chickens produced from the Myostatin(TM) Blockers
                products, with a right to renew the license for similar five (5)
                year terms until the expiration date of the licensed patents,
                provided,

                HOWEVER, that renewal of the Long Term License Agreement will be
                conditioned

                                       8
<PAGE>

                upon Pilgrim's Pride's production exceeding certain minimum
                sales volumes which will be mutually agreed upon by Pilgrim's
                Pride and MMI. These renewals will be subject to the applicable
                patent term.

        (d)     It is anticipated that the license fee under the Long Term
                License, and any other license agreements entered into for the
                use of Myostatin(TM) Blockers with other poultry companies,
                shall have two components: (i) an up-front license fee and (ii)
                a royalty fee based on the value added per chicken by using the
                Myostatin(TM) Blockers (the "Value Added").

        (e)     It is anticipated that the aggregate of all up-front license
                fees under the Long Term License, and any other long term
                license agreement MMI enters into with other poultry companies,
                shall total [****] Dollars ($[****]). Under any long term
                license agreement, it will be stipulated that Pilgrim's Pride
                will pay their PRO RATA share of the $[****] total up-front
                license fee based upon Pilgrim's Pride's production level of
                chickens in pounds-per-year as it relates to the total annual
                chicken production levels of all of MMI's licensees under the
                referenced agreements. For the purpose of the PRO RATA division
                of these up-front license fees, the calendar year 1999 will be
                used as the base year.

        (f)     It is anticipated that Pilgrim's Pride will pay its share of the
                up-front license fees on the following schedule: (i) one-quarter
                (1/4) of the total up-front license fee will be due upon the
                execution of the Long Term License Agreement; and (ii)
                one-quarter (1/4) of the total up-front license fee will be due
                upon the first, second and third anniversaries of the execution
                of the Long Term License Agreement; provided however, that such
                share of the up-front license fee will be limited to a

                                       9
<PAGE>

                payment of no more than [****] per annum.

        (g)     Although it is anticipated that the Value Added royalty
                component of the license fee will equate to thirty percent (30%)
                of the value added to the licensees' chicken production from
                using the Myostatin(TM) Blocker Technology, a definitive Value
                Added royalty component will be negotiated and agreed upon by
                the Parties prior to execution of the Long Term License
                Agreement This Value Added royalty will be calculated and paid
                on a quarterly basis. Pilgrim's Pride, as a member of the
                Poultry Advisory Committee, shall participate in further
                negotiations with MMI and the other members of the Poultry
                Scientific Advisory Committee, to determine the Value Added
                royalty to be paid to MMI that will be based upon the average
                economic benefit provided by the Myostatin(TM) Blocker
                Technology on a cents-per-chicken basis. If the Poultry
                Scientific Advisory Committee cannot mutually agree on a Value
                Added amount to be included in the Long Term License, the
                Poultry Scientific Advisory Committee will agree to the
                appointment of a panel of three (3) independent arbitrators to
                initiate non-binding arbitration to make this determination. It
                is anticipated that if the determination of the arbitrators is
                unsatisfactory to MMI, MMI reserves the right to terminate the
                negotiations with any dissenting member of the Poultry
                Scientific Advisory Committee.

        (h)     If the Parties enter into the Long Term License, it is
                anticipated that Pilgrim's Pride will provide sales and royalty
                reports within thirty (30) days of the end of each quarter.

                                       10
<PAGE>

        (1)     If the Parties enter into the Long Term License, MMI will credit
                the up-front license fee advanced by Pilgrim's Pride against any
                Value Added royalty to be paid under the Long Term License.
                However, MMI's obligation to credit Pilgrim's Pride's up-front
                license fee payments against any Value Added royalty payments
                will be limited to no more than fifty percent (50%) of the total
                Value Added royalty due in any one year and shall continue from
                year to year until the up-front license fee has been fully
                credited. Upon completion of repayment to Pilgrim's Pride of its
                up-front license fees, Pilgrim's Pride will pay MMI the full
                agreed upon Value Added royalty for the duration of the term of
                the Long Term License.

        (j)     It is anticipated that the Long Term License will contain
                representations, warranties and indemnities by the Parties
                customary for transactions and relationships of this nature for
                failure to perform covenants and for breach of representation
                and warranties.

        (k)     It is anticipated that the Long Term License Agreement shall
                contain provisions that:

                (i)     Pilgrim's Pride may terminate the Long Term License
                        Agreement at any time upon thirty (30) days written
                        notice;

                (ii)    If Pilgrim's Pride terminates the Long Term License
                        Agreement, Pilgrim's Pride's rights to use the
                        Myostatin(TM) Blocker Technology will be revoked and
                        Pilgrim's Pride's obligation to pay MMI any future
                        up-front license fees will terminate; and

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<PAGE>

                (iii)   MMI shall have the right to terminate the Long Term
                        License Agreement in the event of a breach of any of the
                        terms or conditions of the Long Term License Agreement
                        and such breach has not been cured within forty-five
                        (45) days of receipt by Pilgrim's Pride of the notice of
                        such breach.

        (1)     It is anticipated that the Long Term License Agreement will not
                be assignable, transferable or saleable without MMI's consent,
                which may be granted in MMI's sole discretion.

        (m)     It is anticipated that the Long Term License Agreement shall
                contain a provision that any new patent applications, patents or
                improvements thereof, patent rights and know-how arising from
                Pilgrim's Pride's use or internal research of the Myostatin(TM)
                Blocker Technology shall be: (a) disclosed immediately; and (b)
                licensed promptly to MMI. This license will be royalty-free,
                non-exclusive, and worldwide with additional rights to
                sublicense them to third parties.

        (n)     INDEMNIFICATION.

                (i)     Pilgrim' s Pride, its directors; officers, employees,
                        agents and assigns will agree to indemnify, defend and
                        hold harmless MMI and its directors, officers, employees
                        and agents from and against any and all claims
                        threatened or initiated against MMI that arise under any
                        federal or state antitrust or unfair competition law,
                        and which challenge any conduct under Paragraph 10
                        hereof or its implementing provision in the Long Term
                        Licensing Agreement. This agreement to indemnify, defend
                        and hold harmless shall cover any and all losses,
                        expenses, damages, liabilities, and costs, including
                        without limitation, interest, penalties,

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<PAGE>

                        double or treble damages, reasonable attorneys' fees,
                        court or litigation costs, costs associated with
                        responding to any investigative demand or discovery
                        request, judgments, and amounts paid in settlement by
                        MMI (upon consultation with Pilgrim's Pride) arising
                        from such claims or any claims supplemental to them.
                        This is conditional, however, upon a finding and or
                        judgment of a court of competent jurisdiction that the
                        provisions of Paragraph 10 hereof, or its implementing
                        provision in the Long Term Licensing Agreement, are
                        unlawful, or if MMI, after consultation with PP, enters
                        into an agreement settling-any such actual or threatened
                        claims.

                (ii)    Each Party hereto and its directors, officers,
                        employees, agents and assigns agrees to indemnify,
                        defend and hold harmless the other Party hereto and its
                        directors, officers, employees and agents from and
                        against all claims, losses, damages, costs, expenses
                        (including, but not limited to, reasonable attorney's
                        fees and costs of litigation actually incurred) or
                        liability incurred or suffered due to either of such
                        Parties, or such Parties authorized agents or
                        contractors, negligence or willful misconduct.

                (iii)   MMI, its directors, officers, employees, agents and
                        assigns will agree to indemnify, defend and hold
                        harmless Pilgrim's Pride and its directors, officers,
                        employees and agents from and against any and all claims
                        related to Patent infringements by MMI under or related
                        to the Long Term License Agreement,

                (iv)    The foregoing agreements to indemnify, defend and hold
                        harmless shall be effective throughout the term of the
                        Long Term Licensing Agreement, and

                                       13
<PAGE>

                        shall extend to any claim initiated or threatened after
                        the termination of the Long Term Licensing Agreement, if
                        such claim arises out of conduct that occurred during
                        the term of the agreement.

6.      TERM AND TERMINATION OF LOI/LIMITED LICENSE/OPTION AGREEMENT.

        (a)     The term of the LOI/Limited License/Option Agreement shall
                commence upon execution of this LOI/Limited License/Option
                Agreement and shall terminate upon the completion of the
                Commercial Scale Trials (the "Term").

        (b)     Pilgrim's Pride shall have the right to terminate this
                LOI/Limited License/Option Agreement at any time, but agrees,
                that upon termination, MMI, due to the nonexclusive nature of
                this LOI/Limited License/Option Agreement, shall have the right
                to license the Myostatin(TM) Blocker Technology to a replacement
                poultry company to participate in the Poultry Scientific
                Advisory Committee and for the same uses in the field and
                Territory.

        (c)     Pilgrim's Pride agrees that termination of the agreement by
                Pilgrim's Pride will not provide Pilgrim's Pride-with any
                residual rights to the Myostatin(TM) Blocker Technology.

        (d)     In the event of termination, the fee of Two Hundred Fifty
                Thousand Dollars ($250,000) will be retained by MMl.

        (e)     MMI shall have the right to terminate the LOI/Limited
                License/Option Agreement in the event of a breach by Pilgrim's
                Pride of this L0I/Limited License/Option Agreement and such
                breach has not been cured within forty-five (45) days of receipt
                by Pilgrim's Pride of the notice of such breach.

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<PAGE>

7.      COSTS AND EXPENSES. Each Party will bear its own costs and expenses in
        connection with the transactions contemplated herein, except for the
        payment by Pilgrim's Pride on a cost plus ten percent (10%) basis to MMI
        for use of the Myostatin(TM) Blocker product in the Pilgrim's Trials.

8.      CONFIDENTIALITY. The Parties agree to enter into a
        Non-Disclosure/Confidentiality Agreement and agree that the terms of
        this LOI/Limited License/Option Agreement and any of the agreements
        contemplated herein shall be subject to the provisions of the
        NonDisclosure/ Confidentiality agreement, the terms and conditions of
        which shall survive any termination or expiration of this LOI/Limited
        License/Option Agreement or any subsequent agreement entered into
        between the Parties.

9.      PUBLICITY. It is the Parties' intention to issue press releases
        concerning this LOI/ Limited License/Option Agreement. Such releases
        shall be mutually agreed upon and, prior to making such releases,
        neither Party shall:

        (a)     make any announcement, public or private;

        (b)     discuss the terms and conditions of the
                LOI/LimitedLicense/Option Agreement, the Poultry Scientific
                Advisory Committee, the Commercial Scale Trials or the Pilgrim's
                Trials; or

        (c)     discuss any of the proposed transactions with any third party
                other than either Party's attorneys, without the prior consent
                of the other Party.

        After any such press release, all future communications or press
        releases will be limited to the contents of the initial press release.
        Thereafter, MMI, in its sole discretion, shall control and approve all
        other publicity regarding the Myostatin(TM) Blocker Technology.

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<PAGE>

10.     NON-EXCLUSIVE RELATIONSHIP. Subject to the limitations set forth in
        Paragraph 4(a) above, nothing in this LOI/Limited License/Option
        Agreement shall be construed as preventing or prohibiting MMI from
        entering into additional agreements with third parties for similar
        activities and/or services. However, MMI will limit the negotiation of
        the rights to a long-term license agreement to the initial four
        companies that participate in the Poultry Advisory Committee and the
        Commercial Scale Trials as set forth in paragraphs 3 and 4. SUPRA.
        Moreover, if, in the event any of the initial four companies fail to
        execute a long-term license agreement or in the event of governmental
        intervention, MMI reserves the exclusive right to negotiate with a
        replacement company of MMI's exclusive choosing.

11.     ENTIRE AGREEMENT. All previous negotiations and understandings between
        MMI and Pilgrim's Pride, or their respective agents and employees, with
        respect to the transaction set forth herein, are merged into this
        LOI/Limited License/Option Agreement, except for the Non-Disclosure)
        Confidentiality Agreement and the Material Transfer Agreement, which
        alone fully and completely expresses the Parties' rights, duties and
        obligations with respect to its subject matter and which may be amended
        only by a subsequent written agreement between the Parties.

12.     NO MERGER. The warranties, representations and covenants expressly made
        herein shall survive the termination of this LOI/Limited License/Option
        Agreement and shall not be merged therein.

13.     GOVERNING LAW. This LOI/Limited License/Option Agreement shall be
        governed by, and construed in accordance with, the laws of the State of
        Delaware, without giving effect to the conflict of laws principles
        thereof.

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<PAGE>

14.     CHOICE OF FORUM. Any action or proceeding arising in any way out of this
        LOI/Limited License/Option Agreement must be brought as follows: (x) if
        by MMI, in the United States District Court, District of Maryland; (y)
        if by Pilgrim's Pride, in the United States District Court, District of
        North Texas; and (z) any such action or proceeding will be governed by
        the laws of the State of Delaware.

15.     SEVERABILITY. If any provision of this LOI/Limited License/Option
        Agreement is found by a court of competent jurisdiction to be illegal,
        invalid, or unenforceable, the remainder of this LOT/Limited
        License/Option Agreement will not be affected, and in lieu of each
        provision that is found to be illegal, invalid, or unenforceable, a
        provision will be added as a part of this LOI/Limited License/Option
        Agreement that is as similar to the illegal, invalid, or unenforceable
        provision as may be possible and will be legal, valid and enforceable.

16.     CONSTRUCTION. The rule of strict construction shall not apply to this
        LOI/Limited License/Option Agreement. This LOI/Limited License/Option
        Agreement has been prepared by MMI and its professional advisors and
        reviewed by Pilgrim's Pride and its professional advisors. MMI,
        Pilgrim's Pride and their separate advisors believe that this
        LOI/Limited License/Option Agreement is the product of all of their
        efforts, that it expresses their agreement, and that it should not be
        interpreted in favor of or against either MMI or Pilgrim's Pride merely
        because of their efforts in preparing it.

17.     CAPTIONS GENDER NUMBER AND LANGUAGE OF INCLUSION. The captions are
        inserted in this LOI/Limited License/Option Agreement only for
        convenience of reference and do not define, limit, or describe the scope
        or intent of any provisions of this LOI/Limited License/Option
        Agreement. Unless the context clearly requires otherwise, the singular

                                       17
<PAGE>

        includes the plural, and vice versa, and the masculine, feminine, and
        neuter adjectives include one another. As used in this LOI/Limited
        License/Option Agreement, the word "including" shall mean "including,
        but not limited to."

18.     BINDING EFFECT. This LOI/Limited License/Option Agreement, shall be
        binding upon and inure to the benefit of the Parties hereto and their
        respective successors, permitted assigns, heirs and personal
        representatives.

19.     MERGER, ACQUISITION OR SIMILAR TRANSACTIONS.

        (a)     The Parties acknowledge that the Limited License granted
                hereunder has been negotiated with reference to the current
                operations of the Pilgrim's Pride. Accordingly, the Parties have
                agreed to the following terms governing merger, acquisition or
                similar transactions:

                (i)     Any majority controlled subsidiary of Pilgrim's Pride,
                        or of a Pilgrim'sPride affiliate, that is created in the
                        ordinary course of business after the execution of this
                        agreement shall not affect the Limited License herein;

                (ii)    Any Party that becomes a majority owned or controlled
                        subsidiary of Pilgrim's Pride, or of a then-existing
                        licensed Pilgrim's Pride affiliate, after the execution
                        of the LOI/Limited License/Option Agreement shall be
                        made a Party to this LOl/Limited License/Option
                        Agreement;

                (iii)   Any licensed Pilgrim's Pride affiliate or business unit
                        of Pilgrim's Pride that is acquired by a third-party
                        shall no longer be entitled to the benefit of this
                        Limited License; and

                                       18
<PAGE>

                (iv)    In the event a majority of the stock or assets of
                        Pilgrim's Pride are acquired or merged or consolidated
                        with a third person, the Limited License granted herein
                        may be rescinded at the sole discretion of MMI.

20.     ASSIGNMENT. Subject to the provisions of Paragraph 19 hereof, this
        LOl/Limited License/Option Agreement may not be assigned by Pilgrim's
        Pride without the prior consent of MNII, which may be withheld for any
        reason.

21.     TIME. Time is of the essence of this LOI/Limited License/Option
        Agreement and each and every provision hereof.

22.     NOTICE. All notices, consents, waivers, and other communications that
        are required under this Agreement must be in writing and will be deemed
        to have been duly given when (a) delivered by hand (with written
        confirmation of receipt), (b) sent by telecopier (with written
        confirmation of receipt), provided that a copy is mailed by registered
        mail, return receipt requested, or (c) when received by the addressee,
        if sent by a nationally recognized overnight delivery service (receipt
        requested). All other business correspondence, including, but not
        limited to, billing invoices, shipping information or order entries,
        shall be in writing and shall be deemed to have been given when posted
        with a reputable mail carrier. In either case, all of these
        communications must be to the appropriate addresses and telecopier
        numbers set forth below (or to such other addresses and telecopier
        numbers as a Party may designate by notice to the other Parties):

                                       19
<PAGE>

If to MMI:

                Edwin C. Quattlebaum
                MetaMorphix, Inc.
                1450 South Rolling Road Baltimore,
                MD 21227
                Telephone: (410) 455-5820 Facsimile:
                (410) 455-5885

If to Pilgrim's Pride:

                Mark Lawrence
                Pilgrim's Pride Corporation 110 South
                Texas Street
                Pittsburgh, TX 75686
                Telephone: (903) 855-4165 Facsimile:
                (903) 855-4945

Also provide a copy to:

                Powell, Goldstein, Frazer & Murphy LLP.
                Sixteenth Floor
                191 Peachtree Street, NE
                Atlanta, GA 30303
                Attention: Joel C. Williams, Jr., Esq.
                Telephone: (404) 572-6836
                Facsimile: (404) 572-6999

23.     WAIVER AND MODIFICATIONS. No provision of this LOI/Limited
        License/Option Agreement shall be waived, unless in writing signed by
        the Party effecting such waiver. No waiver of the breach of any of the
        terms or provisions of this LOI/Limited License/Option Agreement shall
        be a waiver of any preceding or succeeding breach of this LOI/Limited
        License/Option Agreement or any other provisions of it. No waiver of any
        default, express or implied, made by any Party hereto shall be binding
        upon the Party making such waiver in the event of a subsequent default.
        This LOI/Limited License/Option Agreement may only be modified or
        amended by a written agreement executed by each of the Parties.

                                       20
<PAGE>

24.     WAIVER AND MODIFICATIONS. No provision of this LOI/Limited
        License/Option Agreement shall be waived, unless in writing signed by
        the Party effecting such waiver. No waiver of the breach of any of the
        terms or provisions of this LOI/Limited License/Option Agreement shall
        be a waiver of any preceding or succeeding breach of this LOI/Limited
        License/Option Agreement or any other provisions of it. No waiver of any
        default, express or implied, made by any Party hereto shall be binding
        upon the Party making such waiver in the event of a subsequent default.
        This LOI/Limited License/Option Agreement may only be modified or
        amended by a written agreement executed by each of the Parties.

25.     FURTHER PROVISIONS.

        (a)     LEGAL REPRESENTATION. The Parties hereto each acknowledge that,
                in entering into this LOI/Limited License/Option Agreement, they
                have not relied upon any statements, representations,
                warranties, correspondence, negotiations, conditions,
                understandings, promises or agreements, oral or written, not
                specifically set forth in this LOI/Limited License/Option
                Agreement, except those in the NonDisclosure/Confidentiality
                Agreement and Material Transfer Agreement. All of the Parties to
                this LOI/Limited License/Option Agreement represent that they
                are represented by legal counsel and have been fully advised as
                to the meaning and consequence of all of the terms and
                provisions of this LOI/Limited License/Option Agreement.

        (b)     POST CONFORMING DOCUMENTS. The Parties hereto shall execute and
                deliver any and all additional papers, documents, and other
                assurances, and shall do any and

                                       21
<PAGE>

                all acts and things reasonably necessary in connection with the
                performance of their obligations hereunder and to carry out the
                intent of the Parties hereto.

        (c)     AUTHORITY TO SIGN. All of the Parties hereto and their
                authorized representatives signing this LOI/Limited
                License/Option Agreement/Option Agreement represent and warrant
                that they have authority to execute and enter into this
                LOI/Limited License/Option Agreement.

25.     CERTAIN PROHIBITIONS. Pilgrim's Pride, or any of Pilgrim's Pride's
        affiliates, agree not to, either directly or indirectly, through its
        subsidiaries and other affiliates or otherwise, provide financial or
        other support for, provide documentation to or provide testimony on
        behalf of, except as may be required by law, any third person in the
        prosecution or submission of any claim, suit, petition, application,
        request, against MMI or any of its subsidiaries, affiliates, agents,
        strategic partners or customers relating to the Myostatin(TM) Blocker
        Technology ("Claims"). Furthermore, Pilgrim's Pride and Pilgrim's
        Pride's Affiliates will promptly give notice to MMI of all Claims of
        which they become aware and of all activities undertaken by third
        parties in preparation for assertion of any Claims, including without
        limitation attempts by third parties to solicit or organize financial or
        other support for the submission or assertion of any Claims.

26.     EFFECT OF LOI/LIMITED LICENSE/OPTION AGREEMENT PROVISIONS. The Parties
        shall negotiate in good faith toward the execution of the Long Term
        License Agreement described herein. The provisions of Paragraph 4
        represent the Parties' good faith intention to negotiate toward
        execution of a definitive long term agreement. Unless otherwise agreed
        to by the parties in writing, a Long Term License Agreement shall be
        executed within ninety (90) days after the completion of the Commercial
        Scale Trials.

                                       22
<PAGE>

        Only the provisions of Paragraph 4 of this LOI/Limited License/Option
        Agreement are not binding between the Parties and neither Party shall
        have any liability to the other if they fail to execute a definitive
        agreement for any reason.

               If you agree that the foregoing correctly expresses your present
        intent, please sign below in the space provided. The Parties shall
        thereafter negotiate in a positive and constructive manner with the
        objective of reaching a mutually satisfactory and definitive Long Term
        License.

        IN WITNESS WHEREOF, the Parties have agreed to and executed this
LOI/Limited License/Option Agreement as of the date first above written.

MMI                                     PILGRIM'S PRIDE
METAMORPHIX, INC.                       PILGRIM'S PRIDE CORPORATION

By: /s/ Edwin C. Quattlebaum            By:  /s/ David Van Hoose
    ------------------------                 ------------------------
                                        Name :   David Van Hoose
Name : Edwin C. Quattlebaum             Title :  President-CEO-COO
Chairman, President, & CEO              Date of Execution : 11/10/00

                                       23
<PAGE>

                                    EXHIBIT A
                  CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT

        THIS  CONFIDENTIALITY  AND NON-DISCLOSURE  AGREEMENT (this "Agreement"),
together  with the  Letter of  Intent,  Limited  License  and  Option  Agreement
("LOI/Limited  License/Option  Agreement),  which have been executed on November
10, 2000 and  incorporated  herein by this  reference,  is made and entered into
this 10th day of November,  2000, by and between  MetaMorphix,  Inc., a Delaware
corporation  ("MMI") and Pilgrim's  Pride  Corporation,  a Delaware  corporation
("Pilgrim's Pride").

        WHEREAS,  MMI and Pilgrim's  Pride have entered into a Letter of Intent,
Limited  License  Agreement  and Option  Agreement  (LOI/Limited  License/Option
Agreement"),  dated  November  10, 2000,  between the parties and,  accordingly,
desire to exchange certain highly confidential information with each other.

        WHEREAS,  each party (the  "Disclosing  Party") may furnish to the other
party  (the  "Reviewing  Party"),  from time to time,  confidential  information
concerning   certain   inventions,   know  how,  patent  strategies  and  patent
applications,    research   and   development   strategies,    business   plans,
relationships,   trade  secrets,   test  data  and  other  highly   confidential
information  and  documentation   that  is  confidential,   non-public,   and/or
proprietary in nature (the "Confidential Information").

        WHEREAS, each party seeks to protect fully the Confidential  Information
provided by it.

        NOW THEREFORE, the parties mutually agree as follows:

        SECTION 1. MAINTENANCE OF CONFIDENTIALITY.  The Confidential Information
will be kept absolutely  confidential and shall not, under any  circumstances be
disclosed by the Reviewing  Party holding such  Confidential  Information in any
manner   whatsoever,   in  whole  or  in  part.  Within  the  Reviewing  Party's
organization,  the disclosed  confidential  Information may be known only by its
directors,  officers,  other  employees with a "need to know" such  information,
consultants who have signed Confidentiality agreements with the Reviewing Party,
and the Reviewing Party's  attorneys.  All such persons shall be provided with a
copy of this Agreement.

        SECTION 2. PURPOSE OF DISCLOSURE.  The sole purpose of disclosure of the
Confidential  Information is to assist the Reviewing Party in its performance of
its obligations under the LOI/Limited  License/Option  Agreement or other future
business  arrangement,  including all anticipated  Long Term License  Agreements
between  MMI  and  Pilgrim's  Pride.  The  Reviewing  Party  is not  to use  the
Confidential  Information  for any other  purpose  (e.g.,  to  compete  with the
Disclosing  Party).  Nothing in this Agreement gives either  Reviewing Party any
rights in any Confidential  Information of the Disclosing Party. If either party
requests  the  return  of such  Confidential  Information  for any  reason,  the
Reviewing Party must immediately  return the  Confidential  Information (and any
and all copies thereof) to the Disclosing Party.
<PAGE>

        SECTION 3.  DISCLOSURE  TO THIRD  PARTIES.  Without  the  express  prior
written consent of the Disclosing  Party,  the Reviewing Party will not disclose
Confidential  Information to third parties  (except to consultants and attorneys
in accordance with Section 1 of this Agreement). In addition, neither party will
disclose to any person or entity the fact that the Confidential  Information has
been made available,  that  discussions or negotiations are taking place or have
taken place between MMI and Pilgrim's  Pride  concerning a possible  transaction
involving them or any of the terms,  conditions,  or other facts with respect to
any such possible transaction, including the status thereof.

        SECTION 4. LIMITATIONS ON CONFIDENTIAL INFORMATION.  The confidentiality
restrictions  shall not apply to such  portion of the  Confidential  Information
that: (a) are or become generally available to the public; (b) appears in issued
patents;  or (c) is  already  known  to  the  Reviewing  Party  at the  time  of
disclosure by the  Disclosing  Party or becomes known to the Reviewing  Party by
disclosure by a third party (which is not bound by a  confidentiality  agreement
with the Disclosing  Party). If any dispute between the parties arises, it shall
be Reviewing  Party's burden to prove that any Information that it has disclosed
or used (other than as provided for in Section 2 of this Agreement) falls within
this exception.

        SECTION 5. COMPELLED DISCLOSURE.  If the Reviewing Party is requested or
becomes  compelled  pursuant to a civil  lawsuit or any criminal  investigation,
indictment,  or proceeding  (by oral  questions,  interrogatories,  requests for
information  or documents,  subpoena,  civil  investigative  demand,  or similar
process) to disclose any of the  Confidential  Information,  the Reviewing Party
will provide the other party with prompt written notice prior to such request or
demand for  disclosure  so that the other party may seek a  protective  order or
other  appropriate  remedy.  In the event  that such  protective  order or other
remedy is not obtained,  the  Reviewing  Party will furnish only that portion of
the Confidential  Information that is legally required,  and the Reviewing Party
will exercise its best efforts to obtain  reliable  assurance that  confidential
treatment will be accorded the Confidential Information.

        SECTION 6. INJUNCTIVE RELIEF.  Each party acknowledges and agrees that a
breach or attempted  breach of any material  provision  of this  Agreement  will
cause the other party  substantial and irreparable harm. Each party consents and
agrees, therefore, in such event, in addition to any other remedies available to
the other party at law or equity, to a temporary restraining order,  preliminary
injunction,  and  permanent  injunction  restraining  and  enjoining a breaching
Reviewing  Party  from  disclosing,   publishing,   or  using  the  Confidential
Information,  or otherwise  breaching or violating  this  Agreement.  Each party
agrees that, in connection with any remedy sought pursuant to this Section 6, it
shall not be necessary to post a bond or provide other security.

        SECTION 7. INDEMNIFICATION.  The Reviewing Party agrees to indemnify the
other  party and to hold it  harmless  against  any loss,  cost,  liability,  or
expense,  including  reasonable  attorney's fees, incurred by the other party by
reason of the  Reviewing  Party's  breach and  non-fulfillment  of any provision
contained in this Agreement.

                                       2
<PAGE>

        SECTION  8.  CONSTRUCTION  OF  AGREEMENT;  CHOICE OF LAW,  SEVERABILITY,
NUMBER  AND  TERMINATION.  The  validity,  legality,  and  construction  of this
Agreement or any of its  provisions  shall be  determined  under the laws of the
State of  Delaware.  If any  provision  contained  in this  Agreement  cannot be
enforced to its fullest  extent,  then such  provision  shall be enforced to the
maximum extent  permissible by law, and the parties  consent and agree that such
provision may be judicially modified  accordingly,  in any proceeding brought to
enforce such provision. The invalidity,  illegality,  or unenforceability of any
provision  of this  Agreement  shall  not  affect  or  limit  the  validity  and
enforceability  of any other provision hereof.  Where the context requires,  the
plural  shall  include the  singular  and vice  versa.  The  provisions  of this
Agreement  shall  apply to all  Confidential  Information  exchanged  under this
Agreement as long as it is in the  possession of the other party,  regardless of
whether the LOI/Limited License/Option Agreement or other agreements between the
parties lapse or terminate.

        SECTION 9. NOTICES. All notices and communications hereunder shall be in
writing and shall be deemed  given when sent postage  prepaid by certified  mail
(return receipt  requested) by hand delivery  (against a signed receipt),  or by
nationally recognized overnight delivery service.

MetaMorphix, Inc.

MMI                                     1450 South Rolling Road
                                        Baltimore, Maryland 21227

PILGRIM'S PRIDE                         Pilgrim's Pride Corporation
                                        110 S. Texas Street
                                        Pittsburgh, Texas 75686
                                        Attention: Mark A. Lawrence

If a party  furnishes the other with notice of a change of address,  as provided
in this  Section,  then  all  notices  and  communications  thereafter  shall be
addressed as provided in such notice.

        SECTION  10.  ENTIRE   AGREEMENT.   This   Agreement,   the  LOI/Limited
License/Option   Agreement  and  the  Material   Transfer   Agreement   executed
concurrently  herewith by the Parties contain the entire  agreement  between the
parties with respect to the matters contained herein and supersedes all existing
agreements  and all other oral,  written,  or other  communications  between the
parties  concerning the subject matter of this Agreement.  This Agreement may be
modified or waived only by a separate writing signed by the parties expressly so
modifying or waiving this Agreement.

                                       3
<PAGE>

        IN WITNESS WHEREOF,  the parties have executed this  Confidentiality and
NonDisclosure Agreement as of the day and year first above written.

WITNESS/ATTEST:                      METAMORPHIX, INC.

                                     By: /s/ Edwin C. Quattlebaum (SEAL)
---------------------------------        -------------------------
                                         Edwin C. Quattlebaum, Ph.D., /President
                                     Date:
---------------------------------         --------------------------------------

                                     PILGRIM'S PRIDE CORPORATION

                                     By: /s/ David Van Hoose (SEAL)
                                     Name: David Van Hoose
---------------------------------          -------------------------------------

                                     Title: PRESIDENT, CEO AND COO
---------------------------------

                                       4
<PAGE>

                                    EXHIBIT B

                                METAMORPHIX, INC.

                           MATERIAL TRANSFER AGREEMENT

        THIS MATERIAL TRANSFER AGREEMENT (this  "Agreement"),  together with the
Letter  of  Intent,   Limited   License  and  Option   Agreement   ("LOI/Limited
License/Option  Agreement/"),  which have been executed on November 10, 2000 and
incorporated herein by this reference, is made and entered into this 10th day of
November, 2000, by and between MetaMorphix, Inc., a Delaware corporation ("MMI")
and Pilgrim's Pride Corporation, a Delaware corporation ("Pilgrim's Pride").

1.      BACKGROUND.   Pilgrim's   Pride   desires  to  obtain   samples  of  the
        Myostatin(TM)   Blocker   Technology  and  defined  in  the  LOI/Limited
        License/Option    Agreement   (together   with   all   derivatives   and
        improvements,  the "Material")  from MMI for use in performing  separate
        and  independent  commercial  scale  trials  "Pilgrim's  Trials"  and in
        evaluating the potential  license under the terms and conditions of this
        Agreement.

2.      THE MATERIAL AND THE PILGRIM'S TRIALS. Pilgrim's Pride acknowledges that
        MMI owns the Material.  Pilgrim's  Pride will use the Material solely in
        its Pilgrim's Trials and for no other purpose. The Pilgrim's Trials will
        be conducted solely by Pilgrim's Pride at its research facilities.  None
        of the  Material  will be  transferred  to,  sold  to,  or used by third
        parties.  Pilgrim's  Pride will not use the  Material  for testing in or
        treatment  of human  subjects.  Pilgrim's  Pride  acknowledges  that the
        Material is  experimental  and will comply with all laws and regulations
        applicable  to  its  handling  and  use.  Any  Material  remaining  upon
        completion of the Pilgrim's Trials will be returned  immediately to MMI,
        at Pilgrim's Pride's cost.

3.      IN VIVO STUDIES.  If Pilgrim's Pride is using the Material for non-human
        IN VIVO studies,  it will (a) consider  alternative IN VITRO approaches,
        (b)  comply  with all  applicable  federal,  state  and  local  laws and
        regulations  and (c) provide MMI with copies of the  applicable  IN VIVO
        protocols.

4.      TECHNOLOGY DISCLOSURE AND ASSIGNMENT.

4.1.    DISCLOSURE.  During the term of the LOI/Limited License/Option Agreement
        and until the  execution of a Long Term  License  Agreement by Pilgrim's
        Pride and MMI, as set forth in the LOI/Limited License/Option Agreement,
        any  inventions,  improvements  thereof  or  know-how  arising  from the
        Pilgrim's Trials on the Myostatin(TM) Blocker Technology,  as defined in
        the  LOI/Limited  License/Option  Agreement,  or any patent  application
        thereon:  (a) will be disclosed to MMI immediately;  and (b) MMI will be
        granted a  royalty-free,  exclusive,  worldwide  license  to the  patent
        applications,   patents  or  improvements  thereof,  patent  rights  and
        know-how with additional rights to sublicense, them to third parties.

4.2.    REPORTS.  Pilgrim's Pride will advise and update MMI on the progress and
        results of the Pilgrim's  Trials and will provide a written  report upon
        the conclusion of the Pilgrim's Trials,  upon any inventions being made,
        and at other times as MMI may reasonably request.
<PAGE>

5.      CONFIDENTIALITY.  Except as provided in  Paragraph 6 of this  Agreement,
        Pilgrim's  Pride will not publish or disclose any of MMI's  confidential
        or proprietary information to third parties. The terms and conditions of
        the Confidentiality and Non-Disclosure Agreement executed by the parties
        concurrently  with  this  Agreement  are  incorporated  herein  by  this
        reference.

6.      PUBLICATION.   Pursuant  to  the   provisions  of  Paragraph  9  of  the
        LOI/Limited License/Option Agreement, MMI, in its sole discretion, shall
        control and approve all publications regarding the Myostatin(TM) Blocker
        Technology.

7.      NO WARRANTY.  THE  MATERIAL IS PROVIDED TO  RECIPIENT  AS-IS AND WITHOUT
        WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
        TITLE OR FITNESS FOR A PARTICULAR PURPOSE.

8.      INDEMNIFICATION.  To the extent  permitted  under the law governing this
        Agreement,  each party will  indemnify  and hold each  harmless from any
        claims  or  liability  resulting  from  Pilgrim's  Pride's  use  of  the
        Material,  except  insofar as such claims or  liability  result from the
        claims or liability  results from the party  causing the  negligence  or
        wrongdoing.

9.      TERMINATION.  This  Agreement  will  terminate  simultaneously  with the
        termination of the LOI/Limited  License/Option Agreement pursuant to the
        provisions of Paragraph 6 of said LOI/Limited License/Option Agreement.

10.     MISCELLANEOUS.  This Agreement (a) may not be assigned or transferred by
        any party without the prior written  consent of the other party,  except
        that MMI may  assign  this  Agreement  to an  affiliated  company  or in
        connection   with  the   merger,   consolidation   or  sale  of  all  or
        substantially  all of its  assets  and  (b)  shall  be  governed  by and
        construed  in  accordance  with  the  substantive  law of the  State  of
        Delaware.

MMI                                     PILGRIM'S PRIDE
METAMORPHIX, INC.                       PILGRIM'S PRIDE CORPORATION

Name:   /s/  Edwin C. Quattlebaum       Name:  /s/ David Van Hoose
        ---------------------------            ---------------------------
Title:  Chairman, President and CEO     Title: President, CEO and COO
        ---------------------------            ---------------------------
        duly authorized and attested           duly authorized and attested

Date of Execution: 11/15/00             Date of Execution:
                   --------

MetaMorphix, Inc.                       Pilgrim's Pride Corporation
1450 South Rolling Road                 110 S. Texas Street
Baltimore, Maryland 21227 U.S.A.        Pittsburg, Texas 75686 U.S.A.
Telephone  (410) 455-5880               Telephone  (903) 855-1000
           --------------                          --------------
Telecopier (410) 455-5885               Telecopier (903) 855-4160
           --------------                          --------------

                                       2

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