Document:

Exhibit 10.17

 

PARTICIPATION
AGREEMENT

 

This
Participation Agreement (this “Agreement”) is entered into as of the 24th day
of November, 2006 (the “Effective Date”) by and between BG Medicine, Inc., a
corporation having offices at 610 N. Lincoln Street, Waltham, Massachusetts
02451 (“BGM”) and AstraZeneca AB., having offices in Södertälje SE-151 85,
Sweden (“Participant”; each of Participant and BGM are sometimes referred to
individually as a “Party” and collectively 
as the “Parties”).

 

WHEREAS,
BGM and Philips Medical Systems Nederland B.V., a company having offices at
Veenpluis 4-6 Best, the Netherlands  (“Philips”)
intend to collectively design and conduct a number of activities (the “HRP
Initiative”) in order to advance the understanding, recognition and management
of High Risk Plaque for the benefit of all stakeholders in the healthcare
system as described in the form of Program Outline to be attached hereto as Exhibit
A-1 (the “HRP Program, as further defined below”); and

 

WHEREAS,
BGM will administer, coordinate and implement the HRP Program; and

 

WHEREAS,
Participant desires to sponsor the HRP Initiative and to obtain access to the
data generated in the performance of the HRP Initiative, and a non-exclusive
license under certain intellectual property rights, as set forth herein.

 

NOW,
THEREFORE, in consideration of the foregoing, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, hereby agree as follows.

 

1.                                      Definitions. Capitalized terms used herein shall have the
definition provided in the introductory paragraph or recitals above, or the
definition provided below, as applicable.

 

“Affiliate” means any corporation, firm, partnership or
other entity which directly or indirectly controls or is controlled by or is
under common control with a Party. For purposes of this definition, “control”
means ownership, directly or through one or more Affiliates, of  (a) fifty percent (50%) or more of the shares
of stock entitled to vote for the election of directors, in the case of a
corporation, (b) fifty percent (50%) or more of the equity interests in the
case of any other type of legal entity, status as a general partner in any
partnership, or (c) any other arrangement whereby a Party controls or has the
right to control the Board of Directors or equivalent governing body of a
corporation or other entity.

 

“Confidential Information” means confidential scientific,
business, or financial information provided by one Party or other sponsor of
the HRP Initiative (a “disclosing Party”) to any other Party or other sponsor
of the HRP Initiative (a “receiving Party”) pursuant to this Agreement;
provided, that, Confidential Information does not include:

 

(a)                                  information that is or becomes publicly known
or that is or becomes available from public sources;

 

(b)                                 information that is already known by the
receiving Party, or information that is independently created or compiled by
the receiving Party without reference to or use of the provided information; or

 

(c)                                  information that relates to potential hazards
or cautionary warnings associated with the production, handling, or use of the
subject matter of the HRP Program; or

 

(d)                                 information that is provided to the receiving
Party by a third party who is not bound by obligations of confidentiality to
the disclosing Party.

 

“Data” means
all data first produced in the performance of the HRP Initiative as described
in the HRP Program.

 

“Participant Proprietary Product” means any drug compound or medical device
controlled by Participant. For purposes of this definition, “control” means the
possession by Participant of (a) a 50% or more ownership interest in a drug
compound or medical device or (b) a licensing interest that permits Participant
to exclusively develop, manufacture and sell such drug compound or medical
device in some or all indications, uses and countries.

 

“Project Invention” shall have the definition provided in Section 5.2.

 

“Reports”
shall have the definition provided in Section 4.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

 

“HRP Program”
means a written plan describing the activities to be carried out in support of
the HRP Initiative, as such written plan may be amended, modified or updated. Each
HRP Program shall include the resource requirements of, and budget applicable
to, the conduct of each HRP Program. The initial HRP Program shall be developed
by the SPB and approved by the JSC within sixty (60) days of the Effective Date
and attached hereto as Exhibit A-1 and each additional HRP Program shall
be developed by the SPB and approved by the JSC prior to the initiation of any
Program Activities with respect to each such HRP Program and attached hereto as
addendums to Exhibit A.

 

“Program Activity” means the activities to be conducted as part of the HRP Initiative as
described in the applicable HRP Program.

 

“Scientific Program Board” or “SPB” means the scientific advisory board
comprised of academic experts in applicable fields, representatives of BGM,
Participant, and other sponsors of the HRP Initiative that are approved by the
JSC, as further described in Section 3.2.

 

“Joint Steering Committee” or the “JSC” means the joint steering committee comprised
of those representatives of BGM, Participant, and other sponsors of the HRP
Initiative, as further described in Section 3.1.

 

“Third Party Contractor” means any third party contract research organization, research
laboratory or similar entity engaged by Participant to perform development
services with respect to any Participant Proprietary Product.

 

2.                                      HRP Initiative.

 

2.1                                 Performance of HRP Initiative. BGM shall coordinate, administer and
execute the HRP Initiative as provided in the HRP Program. The HRP Initiative
shall be implemented through the conduct by BGM of Program Activities, each of
which will be described in the HRP Program and/or in amendments thereto.

 

2.2                                 HRP Program; Amendments. Within sixty (60) days of the Effective
Date the initial HRP Program shall be prepared by the SPB, approved by the JSC
and attached hereto as Exhibit A-1. Any changes to the HRP Program shall
be prepared by the SPB and approved by the JSC in accordance with Section 3.1
below.

 

2.3                                 Additional Participants. Excluding BGM, the HRP Initiative shall
have no less than two (2) sponsors (including Participant). BGM will actively
recruit additional participants (“Subsequent Participants”) until a total of
five (5) Participants have executed participation agreements. To join the HRP
Initiative, Subsequent Participants shall execute participation agreements
including the same terms set forth in this Agreement. Subsequent Participants
must execute participation agreements joining the HRP Initiative prior to
12/31/2007; Thereafter, Subsequent Participants shall only be permitted to join
the HRP Initiative with the consent of at least two-thirds of the JSC. Any
terms of  a Subsequent Participant’s
agreement materially different from this Agreement shall be approved in writing
by the JSC, in addition to any approval process by which BGM is obligated, such
approval not to be unreasonably withheld.

 

2.4                                 Open Technology. In order to promote widespread availability
and adoption of imaging technology inventions arising from the HRP Initiative
that are specific to imaging technology equipment, and their applications to
various types of imaging equipment, these imaging technology equipment inventions
and applications resulting from Philips’ use of the Project Inventions shall be
made available, and BGM shall procure Philips to make available, under
customary multi-vendor terms and polices to GE, Siemens and any other
established manufacturer of proprietary imaging equipment who possesses the
appropriate level of know-how and experience to implement new technology
arising from the HRP Initiative.

 

3.                                       Governance

 

3.1.                              Joint Steering Committee.

 

(a)
Formation; Responsibilities. As soon as practicable after the Effective
Date, the Joint Steering Committee shall be formed to (i) oversee the overall
conduct and progress of the HRP Initiative; (ii) establish such additional
committees as may be necessary to achieve the objectives of the HRP Initiative
and, to the extent so established, approve the governing

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the Securities
Act.

 

2

 

procedures
applicable thereto; (iii) finalize and approve each Program Activity (including
all budgets and work plans included therein) and/or each amendment to any HRP
Program proposed by the SPB; (iv) make all decisions with respect to the
initiation and performance of any Program Activity and the application of funds
to such Program Activity; (v) approve all press releases related to the HRP
Initiative; (vi) review and approve all patent filings to be made covering any
Project Inventions; (vii) provide a forum for the resolution of disputes
among the Parties with respect to the HRP Initiative; (viii) negotiate, and if
desirable, grant commercialization rights to the Data and Project Inventions;
(ix) if necessary, dissolve the SPB; and (x) approve, and if necessary, replace
or discharge the Co-Chairs of the SPB.

 

(b)
Designation of Representatives. BGM and each Participant shall have the
right to designate one (1) member to serve on the JSC. Participant shall
provide written notice to BGM of the name of such member promptly after the
Effective Date. Unless otherwise agreed by the Parties, (i) the Co-chairs of
the SPB shall be non-voting members of the JSC; (ii) the representatives of BGM
and Philips on the JSC shall be the Co-Chairs of the JSC and (iii) the
representative of  BGM on the JSC shall serve as
Secretary to the JSC. Each Party shall have the right at any time to substitute
individuals, on a permanent or temporary basis, for any of its previously
designated representatives to the JSC by giving written notice to the other
Party.

 

(c)
Meetings. The JSC shall establish a schedule of times for regular
meetings, taking into account, without limitation, the planning needs of the
HRP Initiative and the responsibilities of the JSC. The Secretary shall have
the responsibility for preparing and circulating to each JSC member an agenda
for each JSC meeting not later than one (1) week prior to such meeting. The JSC
shall meet not less than once per calendar quarter or at such other intervals
as it deems appropriate. The Secretary shall give all members of the JSC proper
and timely notice of any meeting to be held. Meetings of the JSC may be held in
person or by teleconference or videoconference. Upon prior request by any
member of the JSC, any JSC meeting may be conducted excluding the Co-chairs of
the SPB.

 

(d)
Quorum. At each JSC meeting, (i) the presence of at least a majority of
the JSC members shall constitute a quorum and (ii) each member who is present
shall have one vote on all matters before the JSC at such meeting. All
decisions of the JSC shall be made by vote or written consent of the majority
of all members. In the event that the JSC is unable to resolve any matter
before it for consideration, such matter shall be resolved in accordance with
Section 3.1(f).

 

(e)
Minutes; Updates. The JSC shall keep minutes of its meetings that record
all decisions and all actions recommended or taken in reasonable detail. Drafts
of the minutes of each meeting, as well as an update on the status of all
Program Activities, shall be prepared and circulated to the members of the JSC
by the Secretary within a reasonable time, not to exceed ten (10) business
days, after the meeting. Each member of the JSC shall have the opportunity to
provide comments on the draft minutes. Draft minutes shall be approved or
disapproved (and,  in case of the latter,
revised) as soon as practicable. Upon approval, final minutes of each meeting
shall be circulated to the members of the JSC by the Secretary.

 

(f)
Dispute Resolution. The JSC members shall use reasonable efforts to
reach agreement on any and all matters presented to it. In the event that,
despite such reasonable efforts, the agreement on a particular matter cannot be
reached by the JSC in accordance with Section 3.1(d) within ten (10) days after
the JSC first meets to consider such matter (each such matter, a “Disputed
Matter”), then the JSC shall abandon consideration of the Disputed Matter and
the subject matter of the Disputed Matter shall not be implemented.

 

3.2                                 Scientific Program Board.

 

(a)
Formation; Responsibilities. As soon as practicable after the Effective
Date, the Scientific Program Board shall be formed to (i) provide advice on the
direction and performance of the Program Activities that make up the HRP
Initiative; (ii) propose and design Program Activities for submission to and
the approval of the JSC; (iii) propose such additional scientific subcommittees
as may be necessary to achieve the objectives of any Program Activity for
submission to and the approval of the JSC; (iv) identify any public disclosure
needs related to the HRP Initiative and develop scientific disclosure and
publication materials for approval

 

Portions of this Exhibit were omitted and have
been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

3

 

by
the JSC; and (v) review and present to the JSC all Project Inventions. The SPB
shall use reasonable efforts to reach agreement on any and all matters;
provided, that, in the event that the SPB is unable to resolve any matter
before it, such matter shall be referred to the JSC for resolution. BGM shall
give good faith consideration to the advice of the SPB with respect to the
conduct of all Program Activities; provided, that BGM shall at all times adhere
to the requirements of the HRP Program in the performance of the HRP
Initiative.

 

(b)
Designation of Representatives. The JSC shall appoint the Co-Chairs and
Secretary of the SPB, which shall consist of scientific and academic leaders in
the field of High Risk Plaque, scientists from Participant companies and/or
individuals with expertise in other selected fields indirectly related to the
High Risk Plaque Field such as patient advocacy, medical specialty, payors or
the federal government. Additional members of the SPB may be nominated by the
SPB or by members of the JSC. The SPB shall approve new members or remove its
members by a majority vote. In addition, after approval by the SPB, new members
of the SPB employed by for-profit corporations which are not sponsors of the
HRP Initiative must be approved by the JSC. The JSC shall decide the maximum
number of SPB members. The JSC may remove the Co-Chairs of the SPB or dissolve
the entire SPB at any time by majority vote with or without cause.

 

(c)
Meetings. The SPB shall establish a schedule of times for regular
meetings, taking into account, without limitation, the planning needs of the
HRP Initiative and the responsibilities of the SPB. The Secretary shall have
the responsibility for preparing and circulating to each SPB member an agenda
for each SPB meeting not later than one (1) week prior to such meeting. The SPB
shall meet not less than once per calendar quarter or at such other intervals
as it deems appropriate. The SPB shall give all members of the SPB proper and
timely notice of any meeting to be held. Meetings of the SPB may be held in
person or by teleconference or videoconference.

 

(d)
Quorum. At each SPB meeting, (i) the presence of a majority of the SPB
members shall constitute a quorum and (ii) each member who is present shall
have one vote on all matters before the SPB at such meeting. All decisions of
the SPB shall be made by vote or written consent by the majority of all
members.

 

(e)
Minutes; Updates. The SPB shall keep minutes of its meetings that record
all decisions and all actions recommended or taken in reasonable detail. Drafts
of the minutes of each meeting, as well as an update on the status of all
Program Activities, shall be prepared and circulated to the members of the SPB
and JSC by the Secretary within a reasonable time, not to exceed ten (10)
business days, after the meeting. Each member of the SPB shall have the
opportunity to provide comments on the draft minutes. Draft minutes shall be
approved or disapproved (and, in the case of the latter, revised) as soon as
practicable. Upon approval, final minutes of each meeting shall be circulated
to the members of the SPB by the Secretary.

 

3.3                                 Initiative Manager.

 

(a)           Designation. As soon as
practicable after the Effective Date, BGM shall recruit and supervise a person
who shall oversee the day-to-day conduct of the Program Activities (the “Initiative
Manager”). If requested by the SPB or JSC Co-chairs, the Initiative Manager may
attend all meetings of the JSC and the SPB, as the case may be, as a non-voting
participant.

 

(b)                                 Responsibilities. The Initiative Manager shall be responsible
for (i) planning, coordinating and managing the conduct of the Program
Activities; (ii) performing such tasks in support of the HRP Initiative as may
be requested by the JSC.

 

4.                                      Reports; Access to Data and
Material; Confidentiality; Publication.

 

4.1                                 Reports; Data. BGM shall provide the SPB with copies of
all written reports (collectively, the “Reports”) that are prepared by it in
connection with the conduct of any Program Activity within four (4) months
following the completion of a Program Activity or termination of the HRP
Initiative. BGM shall also provide each Participant with copies of electronic
files containing the Data as soon as practicable following analysis and
reporting of a Program Activity.

 

4.2                                 Material. When possible, studies will be designed to provide extra materials
for distribution to Participant and, if requested by

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

4

 

such
party, the other sponsors. BGM shall provide Participant with aliquots of such
materials collected and/or created during the HRP Initiative (“HRP Materials”).
Participant may use the HRP Materials for research, drug discovery and
development purposes without further obligation to BGM or any other sponsor of
the HRP Initiative.

 

4.3                                 Confidentiality. Participant, BGM and the other sponsors shall
not disclose any Confidential Information received in connection with this
Agreement, or the contents of any Reports (including without limitation, any
Data) to any third party except for  its
Affiliates and its collaborators or advisors that are bound by terms of
confidentiality no less strict than those set forth herein, during the term of
this Agreement and for a period of ten 
(10) years after the date of expiration or termination of this Agreement
without the prior written consent of, during the term of this Agreement, the
JSC, and after the term of this Agreement, a majority of BGM, Participant and
the other sponsors of the HRP Initiative.

 

This Agreement shall not restrict Participant, BGM or any other
sponsor from complying with a lawfully issued governmental order or
legal requirement, including the obligation to report adverse drug experiences
to competent regulatory authorities, to produce or disclose Confidential
Information; provided, however, that Participant, BGM or any other sponsor, as applicable, shall
promptly notify the party having disclosed Confidential Information to enable
such party to oppose the order or obtain a protective order and Participant, BGM or any other sponsor,
as applicable, shall cooperate fully with the disclosing party in any such
proceeding.

 

4.4                                 Publication. All publications or public presentations of the Data shall be
prepared or approved by the SPB, subjected to peer review in accord with
prevailing scientific custom. The SPB shall provide the JSC with copies of any
such publication or public presentation thirty (30) days prior to publication
or public release.

 

5.                                      IP Ownership; License Grants.

 

5.1                                 Ownership; Patent Filings. Subject to the rights granted to
Participant and the other sponsors hereunder, all Project Inventions and Data
shall be owned by BGM. Philips, as an agent for BGM shall be responsible for
the preparation, filing, prosecution and maintenance of all patents and patent
applications covering Project Inventions. BGM shall (a) provide the JSC with copies
of all patent applications to be filed hereunder for Project Inventions in
sufficient time to allow for review and comment by the JSC; (b) consult with
the JSC regarding the filing and contents of any such application; and (c) take
into consideration in good faith the advice and suggestions of the JSC in
connection with such filing. Following expiration of the term of this Agreement
what is stated regarding the JSC in this Section 5.1 shall instead apply to
Participant and other sponsors of the HRP Initiative. In the event Participant
terminates this Agreement prior to its expiration, what is stated regarding the
JSC in this Section 5.1 shall for the purpose of this Section 5.1 include
Participant as well.

 

5.2                                 License Grant. BGM hereby grants to Participant a
non-exclusive, perpetual, royalty-free, worldwide license under all
intellectual property rights that claim any Data and all inventions or
discoveries made by BGM, whether alone or jointly with any third party (a) in
the performance of HRP Initiative in accordance with the HRP Program or (b) on
and after the termination or expiration of this Agreement as a direct result of
BGM’s use of the Data (collectively, “Project Inventions”), for use by
Participant and its Affiliates for any and all purposes in their regular course
of business; provided that  neither
Participant, BGM or any other sponsor may sell or, except as provided in
Section 5.3, sublicense the Data and Project Inventions.

 

The
JSC may negotiate and, if desirable, direct BGM to, and BGM shall, as directed
by the JSC, grant licenses to sell or sublicense the Data and Project
Inventions. All proceeds of any such license shall be used in furtherance of
the HRP Initiative or, after the term of this Agreement, be distributed evenly
between BGM, Participant and the other sponsors. BGM shall not grant any
licenses or other intellectual property rights in or to the Project Inventions
and/or Data except as explicitly set forth in this Section 5.2.

 

5.3                                 Use of Data. For avoidance of doubt, Participant and its Affiliates shall be
permitted to further analyze the Data, to combine the Data with its own data,
and to use the Data for its internal purposes; provided, that, Participant and
its Affiliates shall not publish any Data.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

5

 

Participant
and its Affiliates may use the Data in, and in support of, patent applications
being submitted by or on behalf of Participant or its Affiliates. Participant
shall have the right to sublicense to its Affiliates and Third Party
Contractors the rights and licenses granted to it under this Section 5.3 solely
for the purpose of having any such Affiliate and/or Third Party Contractor
perform services with respect to one or more Participant Proprietary Products;
provided, that, it shall be a condition of any such sublicense that such
Affiliate and Third Party Contractor agrees to be bound by all of the
applicable terms and conditions of this Agreement (including without limitation
Section 4). If Participant
grants any such sublicense to its Affiliates and/or Third Party Contractors,
Participant shall be deemed to have guaranteed that such Affiliate or Third
Party Contractor will fulfill all of Participant’s obligations under this
Agreement. No other rights or licenses are granted hereunder, by implication or
otherwise. Participant shall own all results, data and intellectual property
developed or discovered through its use of the Data and Project Inventions
without further obligation to BGM or the other sponsors of the HRP Initiative.

 

6.                                      Participation Payment.

 

6.1                                 Payment. Participant shall pay BGM one million seven hundred-thousand dollars
(US$1,700,000) within thirty (30) days after the Effective Date (such amount,
the “First Participation Payment”). Participant shall pay BGM [***] dollars
(US$[***]) in [***] (such amount, the “Second Participation Payment”). Participant
shall pay BGM a final payment of [***] dollars (US$[***]) in [***] (such
amount, the “Final Participation Payment”) (the First Participation Payment,
Second Participation Payment and Final Participation Payment together the “Participation
Payments”). Payments shall be made in accordance with wire transfer
instructions to be provided by BGM. All payments made pursuant to this Section
6.1 shall be maintained by BGM in a dedicated account, which shall be kept
separate from, and not commingled with, any other funds.

 

6.2                                 Use of Funds. The Participation Payments shall be used
solely to perform the HRP Initiative. In the event that the Participation
Payments, when aggregated with payments received from other sponsors, are
insufficient to fund the HRP Initiative as set forth in the budget included as
part of a HRP Program (including as the same may be amended in accordance with
this Agreement), then the JSC shall promptly meet to devise alternative plans,
such as scaling back the HRP Initiative and/or identifying one or more
alternative sources of funds; provided, that, if Participant does not consent
to an alternative plan or the obtaining of such alternative funds, then this
Agreement shall be subject to termination by Participant on thirty (30) days
notice to BGM from the date the proposal concerned was being presented to
Participant and the Participation Payments made by such Participant shall be
refunded to Participant to the extent and as provided in Section 7.

 

7.                                      Term; Termination.

 

7.1                                 Term. This Agreement shall commence on the Effective Date and expire on the
first to occur of: (i) the completion of the HRP Initiative and (ii) the fifth
anniversary of the Effective Date.

 

7.2                                 Termination. This Agreement is subject to early termination by Participant (i) as
provided in Section 6.2; or (ii) at its discretion at any time following twelve
(12) months of the Effective Date by giving thirty (30) days written notice. The
JSC may terminate this Agreement and the HRP Initiative by majority vote for
any or no reason. Termination by the JSC will become effective immediately
after approval by the committee.

 

7.3                                 Effect of
Termination; Survival. Upon any termination of this Agreement, any
portion of the Participation Payments made by a Participant which has not been
spent in performance of the HRP Initiative, after deducting amounts committed
for non-cancelable commitments, shall be promptly refunded by BGM to
Participant. The rights and obligations of the Parties set forth in Sections 1,
4, 5, 7 and 8 shall survive the termination or expiration of this Agreement;
provided, however, that notwithstanding Section 5.2, in case Participant
terminates the Agreement in accordance with Section 7.2 (ii) the survival under
Section 5 will be regarding such rights and obligations as they were on the
effective date of such termination.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

6

 

8.                                      Miscellaneous.

 

8.1.                              NO WARRANTIES. EXCEPT AS SPECIFICALLY STATED HEREIN, THE
PARTIES MAKE NO EXPRESS OR IMPLIED WARRANTY AS TO ANY MATTER WHATSOEVER,
INCLUDING THE CONDITIONS OF THE RESEARCH OR ANY INVENTION, MATERIAL, OR DATA,
WHETHER TANGIBLE OR INTANGIBLE, MADE OR DEVELOPED UNDER OR OUTSIDE THE SCOPE OF
THIS AGREEMENT OR THE OWNERSHIP, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE
OF ANY INVENTION, DATA OR MATERIAL, OR THAT A TECHNOLOGY UTILIZED BY A PARTY IN
THE PERFORMANCE OF THE HRP PROGRAM DOES NOT INFRINGE ANY THIRD-PARTY PATENT
RIGHTS.

 

8.2.                              Indemnification and Liability. Participant agrees to hold BGM and Philips
(each an “Indemnitee”), and each of their respective officers, directors,
employees and agents, harmless and to indemnify each Indemnitee for all
liabilities, demands, damages, expenses and losses (“Losses”) arising out of
the use by Participant of the Data and/or the Project Inventions, for any
purpose; provided, however, that such indemnification shall not be provided to
an Indemnitee for a Losses to the extent such Losses arises out of: (i) a
breach of this Agreement by such Indemnitee, (ii) a deviation from the HRP
Program by such Indemnitee, or (iii) the negligence or willful misconduct of
such Indemnitee.

 

At its option, Participant may assume the defence of any claim by a
third party for which indemnity is sought by an Indmenitee hereunder, by giving
written notice to the Indemnified Party.

 

No
Indemnitee shall admit any liability with respect to, or settle,
compromise or discharge, any claim by a third party for which indemnity is
sought by an Indmenitee hereunder without the prior written consent of Participant.

 

8.3.                              Governing Law. The construction, validity, performance and
effect of this Agreement will be governed by the laws of the State of New York
without regard to provisions relating to conflicts of laws. Any dispute arising
out of or relating to this Agreement shall be addressed amicably in accordance
with Section 3.1(f). In the event a resolution to the dispute cannot be
obtained, the dispute shall be  resolved
through arbitration before three (3) arbitrators.  Such arbitration shall
take place in New York City, NY and shall proceed in accordance with the
commercial arbitration rules of the American Arbitration Association (“AAA”)
and the laws of the state of New York without regard to the provisions thereof
concerning conflict of laws.

 

8.4.                              Waivers. None of the provisions of this Agreement will be considered waived by
any Party unless a waiver is given in writing to the other Party. The failure
of a Party to insist upon strict performance of any of the terms and conditions
hereof, or failure or delay to exercise any rights provided herein or by law,
will not be deemed a waiver of any rights of any Party.

 

8.5.                              Amendments. This Agreement shall only be amended by a written amendment signed by
BGM and Participant.

 

8.6.                              Assignment. Neither this Agreement nor any rights or obligations of any Party
hereunder will be assigned or otherwise transferred by either Party without the
prior written consent of the other Party.

 

8.7.                              Notices. All notices pertaining to or required by this Agreement will be in
writing, signed by an authorized representative of the notifying Party, and
delivered by first class, registered, or certified mail, or by an
express/overnight commercial delivery service, prepaid and properly addressed
to the other party at the address set forth above, or to any other address
designated in writing by the other Party. Notices to BGM shall be directed to “President;”
notices to Philips shall be delivered to Vice President Strategy; Philips
Medical Systems; notices to Participant shall be directed to John Pears, Head
of Atherosclerotic Cardiovascular Disease Strategy Team. Notices will be
considered timely if received on or before the established deadline date or
sent on or before the deadline date as verifiable by U.S. Postal Service
postmark or dated receipt from a commercial carrier. Any Party may change its
address by notice given to the other Party in the manner set forth above.

 

8.8.                              Use of Name; Press Releases. Participant shall not issue any press
releases, or make other public statements, that include reference or rely upon
the Data or the HRP

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

7

 

Program
without the prior written consent of the JSC. The JSC shall approve and issue
all press releases related to the HRP Initiative. Notwithstanding the
foregoing, BGM, Philips and Participant shall each have the right to publicize
Participant’s support of the HRP Initiative.

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the
Effective Date.

 

 

	
  BG
  Medicine, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Pieter Muntendam

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Pieter Muntendam

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  President and CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AstraZeneca,
  AB (publ)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Jan M. Lundberg

  	
   

  
	
   

  	
   

  
	
  Name:
  

  	
  Jan M. Lundberg

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  EVP Global Discovery

  	
   

  
				

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

8

 

Exhibit A-1

 

HRP Program – Version 0.4

 

Background

 

The
HRP Program is a pre-competitive multi-year program that encompasses original
research and other activities to support the development of a novel clinical
paradigm for high-risk plaque.

 

The
program is governed by a Joint Steering Committee (JSC) and Scientific Program
Board as outlined in the Participation Agreement.

 

The
JSC is responsible for the development of the initial HRP Program and its
subsequent expansions and modifications.

 

The
following studies are in various stages of design and planning as authorized by
the JSC. None of the studies and the corresponding study budgets have been
approved by JSC and all activities listed here are subject to SPB review and
JSC review and approval.

 

Current
Program Outline

 

	
  Title:

  	
  Biomarker
  Discovery of High-Risk Patient

  
	
  Partner:

  	
  Duke
  University Medical School, NC, USA

  
	
  Objective:

  	
  Identification
  of biomarkers that correspond to an increased risk for coronary events

  
	
  Design:

  	
  Case-control
  study using specimen from CATHGEN biobank

  
	
  Start:

  	
  Jan
  2007

  
	
   

  	
   

  
	
  Title:

  	
  Systems
  Biology of Human Carotid Plaque

  
	
  Partner:

  	
  CARIM
  – Univ. of Maastricht, The Netherlands

  
	
  Objective:

  	
  Identification
  of plaque biomarkers of human plaque

  
	
  Design:

  	
  Comparative
  systems analysis involving two high-risk plaque types

  
	
  Start:

  	
  Oct
  2006 (method development); May 2007 (full study)

  
	
   

  	
   

  
	
  Title:

  	
  BioImage
  Study

  
	
  Partner:

  	
  Humana,
  Univ. of Miami

  
	
  Objective:

  	
  Identification
  of plasma and imaging biomarkers with superior characteristics than
  Framingham Risk Score

  
	
  Design:

  	
  Prospective
  outcomes study in at-risk volunteers recruited from health insurance plan
  with monitoring of three-year event-rates

  
	
  Start:

  	
  May
  2007

  
	
   

  	
   

  
	
  Title:

  	
  BioIvus
  Study

  
	
  Partner:

  	
  EMC,
  Rotterdam, The Netherlands

  
	
  Objective:

  	
  Comparison
  of non-invasive BioImage imaging methods with IVUS (including palpograpgy and
  virtual histology)

  
	
  Design:

  	
  Prospective
  non-comparative study in patients involving

  
	
  Start:

  	
  March
  2007

  
	
   

  	
   

  
	
  Title:

  	
  Translational
  Study on Gottingen Mini-Pig

  
	
  Partner:

  	
  Aarhus
  University, Denmark

  

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

A-1

 

	
  Objective:

  	
  Translational
  study on coronary plaque of 3 year-old mini-pig fed a high-cholesterol diet
  to determine suitability for human imaging method development or pre-clinical
  testing of interventions

  
	
  Design:

  	
  Post-mortem
  study on existing herd of mini-pigs that were fed a high-cholesterol diet for
  three years.

  
	
  Start:

  	
  April
  2007

  
	
   

  	
   

  
	
  Title:

  	
  Regulatory
  Framework

  
	
  Partner:

  	
  Covington
  & Burling, DC, USA

  
	
  Objective:

  	
  Define
  a regulatory framework for diagnostic and therapeutic products for high-risk
  plaque

  
	
  Design:

  	
  n.a.

  
	
  Start:

  	
  October
  2006

  

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

A-2

 

AMENDMENT

 

This amendment (“Amendment”) is made to the agreement entered into on
the 24th day of November, 2006 (the “Original Agreement”) by and between BG
Medicine, Inc.. a corporation having offices at 610 N. Lincoln Street, Waltham,
Massachusetts 02451 (“BGM”) and AstraZeneca AB., having offices in Sodertalje
SE-151 85, Sweden (“Participant”); each of Participant and BGM are sometimes
referred to individually as a “Party” and collectively as the “Parties”), and
is entered into as of the date of last signature below. It is mutually
understood and agreed by and between the Parties to amend that previously
executed agreement as follows:

 

1.               The
Parties hereby amend the Agreement as follows:

 

A.           The following shall be added to the end of Section
4.1 and shall be the third sentence of Section 4.1:

 

Notwithstanding anything herein to the contrary, the parties agree that
in no case will BGM share information with any Participant, with
the JSC and the SPB or any other third party if such disclosure would be
prohibited due to mandatory provisions and requirements of the Health Insurance
Portability and Accountability Act (HIPAA) and regulations promulgated
thereunder.

 

2.               Capitalized
terms used and not otherwise defined herein shall have the respective meanings
set forth in the Original Agreement.

 

3.               All
other terms and conditions of the Original Agreement not modified by this
Amendment shall remain in full force and effect.

 

4.               The
Original Agreement, as modified by this Amendment, contains the entire
understanding of the parties with respect to their subject matter.

 

5.               This
Amendment may be executed in two counterparts, each of which will be deemed an
original, but both of which together shall constitute but one and the same
instrument.

 

 

 

Signature page
overleaf

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

A-3

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their duly authorized representatives.

 

ASTRAZENECA AB.

 

	
  By:

  	
  /s/ Bjorn Wallmark

  	
   

  
	
  Name:

  	
  Bjorn Wallmark

  	
   

  
	
  Title:

  	
  Global Vice President Research Area CVGI

  	
   

  
	
  Date:

  	
  August 8, 2007

  	
   

  
	
   

  	
   

  	
   

  

 

 

BG MEDICINE, INC.

 

	
  By:

  	
  /s/ Pieter Muntendam

  	
   

  
	
  Name: 

  	
  Pieter Muntendam

  	
   

  
	
  Title:

  	
  President and CEO

  	
   

  
	
  Date:

  	
  August 20, 2007

  	
   

  

 

A-4Exhibit 10.18

PARTICIPATION AGREEMENT

This
Participation Agreement (this “Agreement”) is entered into as of the 28th day
of July, 2006 (the “Effective Date”) by and between BG Medicine, Inc., a corporation having offices at 610 N. Lincoln Street, Waltham, Massachusetts
02451 (“BGM”) and Merck & Co., Inc., having offices at One Merck Drive,
Whitehouse Station, NJ 08889 (“Participant” ; each of Participant and BGM are
sometimes referred to individually as a “Party” and collectively as the “Parties”).

WHEREAS,
BGM and Philips Medical Systems Nederland B.V., a company having offices at
Veenpluis 4-6 Best, the Netherlands (“Philips”) intend to collectively design
and conduct a number of activities (the “HRP Initiative”) in order to advance
the understanding, recognition and management of High Risk Plaque for the
benefit of all stakeholders in the healthcare system as described in the form
of Program Outline to be attached hereto as Exhibit A-1 (the “HRP Program”);
and

WHEREAS,
BGM will administer, coordinate and implement the HRP Program; and

WHEREAS,
Participant desires to sponsor the HRP Initiative and to obtain access to the
data generated in the performance of the HRP Initiative, and a non-exclusive
license under certain intellectual property rights, as set forth herein.

NOW,
THEREFORE, in consideration of the foregoing, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, hereby agree as follows.

1.   Definitions. Capitalized terms
used herein shall have the definition provided in the introductory paragraph or
recitals above, or the definition provided below, as applicable.

“Affiliate” means any
corporation, firm, partnership or other entity which directly or indirectly
controls or is controlled by or is under common control with a Party. For
purposes of this definition, “control” means ownership, directly or through one
or more Affiliates, of (a) fifty percent (50%) or more of the shares of stock entitled to vote for the election of directors, in
the case of a corporation, (b) fifty percent (50%) or more of the equity
interests in the case of any other type of legal entity, status as a general
partner in any partnership, or (c) any other arrangement whereby a Party controls
or has the right to control the Board of Directors or equivalent governing body
of a corporation or other entity.

“Confidential
Information” means  confidential scientific, business, or financial
information provided by one Party (a “disclosing Party”) to any other Party (a “receiving
Party”) pursuant to this Agreement; provided that, Confidential Information
does not include:

(a)          information that is
or becomes publicly known or that is or becomes available from public sources;

(b)         information that is already known
by the receiving Party, or information that is independently created or
compiled by the receiving Party without reference to or use of the provided
information;

(c)          information that
relates to potential hazards or cautionary warnings associated with the
production, handling, or use of the subject matter of the HRP Program; or

(d)         information that is provided to
the receiving Party by a third party who is not bound by obligations of
confidentiality to the disclosing Party.

“Data” means all data first
produced in the performance of the HRP Initiative as described in the HRP
Program.

“Participant
Proprietary Product” means any drug compound or medical device
controlled by Participant. For purposes of this definition, “control” means the
possession by Participant of (a) a 50% or more ownership interest in a drug
compound or medical device or (b) a licensing interest that permits Participant
to exclusively develop, manufacture and sell such drug compound or medical
device.

“Project
Invention” shall have the definition provided in Section 5.2.

“Reports”
shall have the definition provided in Section 4.

“HRP Program”
means a written plan describing the activities to be carried out in

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

support of the HRP Initiative, as
such written plan may be amended, modified or updated. Each HRP Program shall
include the resource requirements of, and budget applicable to, the conduct of
each HRP Program. The initial HRP Program shall be developed by the SPB and
approved by the JSC within sixty (60) days of the Effective Date and attached hereto as  Exhibit A-1 and each additional HAP
Program shall be developed by the SPB and approved by the JSC prior to the
initiation of any Program Activities with respect to each such HRP Program and
attached hereto as addendums to Exhibit A.

“Program
Activity” means the activities to be conducted as part of the HRP
Initiative as described in the applicable HRP Program.

“Scientific
Program Board” or “SPB” means
the scientific advisory board comprised of academic experts in applicable
fields, representatives of BGM Participant, and other sponsors of the HRP
Initiative that are approved by the JSC, as further described in Section 3.2.

“Joint
Steering Committee” or the “JSC” means
the joint steering committee comprised of those representatives of BGM,
Participant, and other sponsors of the HRP Initiative, as further described in
Section 3.1.

“Third Party
Contractor” means any third party contract research organization,
research laboratory or similar entity engaged by Participant to perform development services with respect to any Participant Proprietary Product.

2.  HRP Initiative.

2.1     Performance of HRP Initiative. BGM shall coordinate,
administer and execute the HRP Initiative as provided in the HRP Program. The
HRP Initiative shall be implemented through the conduct by BGM of Program
Activities, each of which will be described in the HRP Program and/or in
amendments thereto.

2.2     HRP Program; Amendments. Within sixty (60) days of the
Effective Date the initial HRP Program shall be prepared by the SPB, approved
by the JSC and attached hereto as Exhibit A-1. Any changes to the HRP
Program shall be prepared by the SPB and approved by the JSC in accordance with
Section 3.1 below.

2.3     Limits on Participation. Excluding BGM, the HRP
initiative shall have no less than two (2) and no more than five
(5) sponsors (including Participant). Philips must be a sponsor of the HRP
Initiative. All sponsors joining the HRP Initiative after Participant (“Subsequent
Participants”), including Philips, shall pay BGM the same amount for the HRP
Initiative as paid by Participant. To join the HRP Initiative, Subsequent
Participants shall execute participation agreements including the same terms
set forth in this Agreement. Subsequent Participants must execute participation
agreements joining the HRP Initiative within six (6) months of the Effective
Date; thereafter, Subsequent Participants shall only be permitted to join the
HRP Initiative with the unanimous consent of the JSC. Any changes
or amendments to the terms of this Agreement included in a Subsequent Participants’
participation agreement must be approved in writing by Participant, such
approval not to be unreasonably withheld.

2.4     Open Technology. In order to promote widespread
availability and adoption of imaging technology inventions arising from the HRP
Initiative that are specific to imaging technology equipment, and their
applications to various types of imaging equipment, these imaging technology
equipment inventions and applications will be made available to third parties,
such as GE, Siemens and other imaging equipment manufacturers with a market
share of 10% or more in an imaging segment under customary multi-vendor terms and
polices.

3.     Governance

3.1.    Joint Steering Committee.

(a) Formation:
Responsibilities. As soon as practicable after the Effective Date, the
Joint Steering Committee shall be formed to (i) oversee the overall conduct and
progress of the HRP Initiative; (ii) establish such additional committees as
may be necessary to achieve the objectives of the HRP Initiative and, to the extent
so established, approve the governing procedures applicable thereto; (iii)
finalize and approve each Program Activity (including all budgets and work plans included therein)
and/or  each amendment to any HRP
Program proposed by the SPB; (iv) make all
decisions with respect to the initiation and performance of any Program

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

2

 

Activity and the application of funds to such
Program Activity; (v) approve all press releases related to the HRP Initiative;
(vi) review and approve all patent filings to be made covering any Project
Inventions; (vii) provide a forum for the resolution of disputes among the
Parties with respect to the HRP Initiative; (viii) negotiate, and if desirable,
grant commercialization rights to the Data and Project Inventions; (ix) if
necessary, dissolve the SPB; and (x) approve, and if necessary, replace or
discharge the Co-Chairs of the SPB.

(b)     Designation of Representatives. BGM
and each Participant shall have the right to designate one (l) member to serve
on the JSC. Participant shall provide written notice to BGM of the name of such
member promptly after the Effective Date. Unless otherwise agreed by the
Parties, (i) the Co-chairs of the SPB shall be non-voting members of the JSC;
(ii) the representatives of BGM and Philips on the JSC shall be the Co-Chairs
of the JSC and (iii) the representative of BGM on the JSC shall serve as
Secretary to the JSC. Each Party shall have the right at any time to substitute
individuals, on a permanent or temporary basis, for any of its previously
designated representatives to the JSC by giving written notice to the other Party.

(c)     Meetings. The JSC shall establish a
schedule of times for regular meetings, taking into account, without
limitation, the planning needs of the HRP Initiative and the responsibilities
of the JSC. The Secretary shall have the responsibility for preparing and
circulating to each JSC member an agenda for each JSC meeting not later than
one (1) week prior to such meeting. The JSC shall meet not less than once per
calendar quarter or at such other intervals as it deems appropriate. Meetings
of the JSC may be held in person or by teleconference or videoconference. Upon
prior request by any member of the JSC, any JSC meeting may be conducted
excluding the Co-chairs of the SPB.

(d)     Quorum. At each JSC meeting, (i) the
presence of at least a majority of the JSC members shall constitute a quorum
and (ii) each member
who is present shall have one vote on all
matters before the JSC at such meeting. All decisions of the JSC shall be made
by vote or written consent of the majority of all members. In the event that
the JSC is unable to resolve any matter before it for consideration, such
matter shall be resolved in accordance with Section 3.1(f).

(e)     Minutes: Updates. The JSC shall keep
minutes of its meetings that record all decisions and all actions recommended
or taken in reasonable detail. Drafts of the minutes of each meeting, as well
as an update on the status of all Program Activities, shall be prepared and
circulated to the members of the JSC by the Secretary within a reasonable time,
not to exceed ten (10) business days, after the meeting. Each member of the JSC
shall have the opportunity to provide comments on the draft minutes. Draft
minutes shall be approved, disapproved and revised as soon as practicable. Upon
approval, final minutes of each meeting shall be circulated to the members of
the JSC by the Secretary.

(f)      Dispute Resolution. The JSC members
shall use reasonable efforts to reach agreement on any and all matters presented
to it. In the event that, despite such reasonable efforts, the agreement on a
particular matter cannot be reached by the JSC in accordance with Section
3.1(d) within ten (10) days after the JSC first meets to consider such matter
(each such matter, a “Disputed Matter”), then the JSC shall abandon
consideration of the Disputed Matter and the subject matter of the Disputed
Matter shall not be implemented.

3.2   Scientific
Program Board.

(a) Formation:
Responsibilities. As soon as practicable after the Effective Date, the
Scientific Program Board shall be formed to (i) provide advice on the direction
and performance of the Program Activities that make up the HRP Initiative; (ii)
propose and design Program Activities for submission to and the approval of the
JSC; (iii) propose such additional scientific subcommittees as may be necessary
to achieve the objectives of any Program Activity for submission to and the
approval of the JSC; (iv) identify any public disclosure needs related to the
HRP Initiative and develop scientific disclosure and publication materials for
approval by the JSC; and (v) review and present to the JSC all Project
Inventions. The SPB shall use reasonable efforts to reach agreement on any and
all matters; provided, that, in the event that the SPB is unable to resolve any
matter before it, such matter shall be referred to the JSC for resolution. BGM
shall give good faith consideration to the advice of the SPB with

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

3

respect to the conduct of all Program Activities;
provided, that BGM shall at all times adhere to the requirements of the HRP
Program in the performance of the HRP Initiative.

(b)      Designation of Representatives. The
JSC shall appoint the Co-Chairs and Secretary of the SPB, which shall consist
of scientific and academic leaders in the field of High Risk Plaque, scientists
from Participant companies and/or individuals with expertise in other selected
fields indirectly related to the High Risk Plaque Field such as patient
advocacy, medical specialty, payors or the federal government. Additional
members of the SPB may be nominated by the SPB or by members of the JSC. The
SPB shall approve new members or remove its members by a majority vote. In
addition, after approval by the SPB, new members of the SPB employed by
for-profit corporations which are not sponsors of the HRP Initiative must be
approved by the JSC. The SPB shall have no more than thirteen (13) members, not
counting ad-hoc and SPB sub committee members. The JSC may remove the Co-Chairs
of the SPB or dissolve the entire SPB at any time by majority vote with or
without cause.

(c)       Meetings. The SPB shall establish
a schedule of times for regular meetings, taking into account, without
limitation, the planning needs of the HRP Initiative and the responsibilities
of the SPB. The Secretary shall have the responsibility for preparing and
circulating to each SPB member an agenda for each SPB meeting not later than
one (1) week prior to such meeting. The SPB shall meet not less than once per
calendar quarter or at such other intervals as it deems appropriate. Meetings
of the SPB may be held in person or by teleconference or videoconference.

(d)      Quorum. At each SPB meeting, (i)
the presence of a majority of the SPB members shall constitute a quorum and
(ii) each member who is present shall have one vote on all matters before the
SPB at such meeting. All decisions of the SPB shall be made by vote or written
consent by the majority of all members.

(e)       Minutes: Updates. The SPB shall
keep minutes of its meetings that record all decisions and all actions
recommended or taken in reasonable detail. Drafts of the minutes of each
meeting, as well as an update on the status of all Program Activities, shall be
prepared and circulated
to the members of the SPB and JSC by the
Secretary within a reasonable time, not to exceed ten (10) business days, after
the meeting. Each member of the SPB shall have the opportunity to provide
comments on the draft minutes. Draft minutes shall be approved, disapproved and
revised as soon as practicable. Upon approval, final minutes of each meeting
shall be circulated to the members of the SPB by the Secretary.

3.3     Alliance
Manager.

(a)  Designation.
As soon as practicable after the Effective Date, BGM shall recruit and
supervise a person who shall oversee the day-to-day conduct of the Program
Activities (the “Alliance Manager”). If requested by the SPB or JSC Co-chairs,
the Alliance Manager may attend all meetings of the JSC and the SPB, as the
case may be, as a non-voting participant.

(b) Responsibilities.
The Alliance Manager shall be responsible for (i) planning, coordinating and
managing the conduct of the Program Activities; (ii) performing such tasks in
support of the HRP Initiative as may be requested by the JSC.

4.  Reports; Access to Data
and Material; Confidentiality; Publication.

4.1     Reports: Data. BGM shall provide the
SPB with copies of all written reports (collectively, the “Reports”) that are
prepared by it in
connection with the conduct of any Program
Activity within four (4) months following the completion of a Program Activity
or termination of the HRP Initiative. BGM shall also provide each Participant
with copies of electronic files containing the Data as soon as practicable
following analysis and reporting of a Program Activity.

4.2     Material. When possible, studies
will be designed to provide extra materials for distribution to Participant
and, if requested by such party, the other sponsors. BGM shall provide
Participant with aliquots of such materials collected andlor created during the
HRP Initiative (“HRP Materials”). Participant may use the HRP Materials for
research, drug discovery and development purposes without further obligation to
BGM or any other sponsor of the HRP Initiative.

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

4

 

4.3   Confidentiality. Participant, BGM and the other sponsors
shall not disclose any Confidential Information received in connection with
this Agreement, or the contents of any Reports (including without limitation,
any Data) to any third party except for its Affiliates and its collaborators or
advisors that are bound terms of confidentiality no less strict than those set forth herein,
during the term of this Agreement and for a
period of ten (10) years after the date of expiration or termination of
this Agreement, without the prior written consent of, during the term of
this Agreement, the JSC, and after the term of this Agreement, a
majority of BGM, Participant and the other sponsors of
the HRP Initiative.

4.4   Publication. All publications or public presentations of
the Data shall be prepared or approved by the SPB, subjected to peer review in
accord with prevailing scientific custom. The SPB shall provide the JSC with
copies of any such publication or public presentation thirty (30) days prior to
publication or public release.

5.    IP Ownership;
License Grants.

5.1   Ownership; Patent Filings. Subject to the rights granted to
Participant and the other sponsors hereunder, all Project Inventions and Data
shall be owned by BGM. Philips, as an agent for BGM shall be responsible for
the preparation, filing, prosecution and maintenance of all patents and patent
applications covering Project Inventions. BGM shall (a) provide the JSC with
copies of all patent applications to be filed hereunder for Project Inventions
in sufficient time to allow for review and comment by the JSC; {b) consult with
the JSC regarding the filing and contents of any such application; and (c) take
into consideration in good faith the advice and suggestions of the JSC in
connection with such filing.

5.2   License Grant. BGM hereby grants to
Participant a non-exclusive, perpetual, royalty-free, worldwide license under
all intellectual properly rights that claim any Data and all inventions or
discoveries made by BGM, whether alone or jointly with any third party (a) in
the performance of HRP Initiative in accordance with the HRP Program or (b) on
and after the termination or expiration of this Agreement as a direct result of
BGM’s use of the Data (collectively, “Project Inventions”), for use by
Participant and its Affiliates for any and all purposes in their regular course
of business; provided that neither Participant, BGM or any other sponsor may
sell or, except as provided in Section 5.3, sublicense the Data and Project Inventions. The JSC may negotiate and, if desirable,
direct BGM to, and BGM shall, as directed by the JSC, grant licenses to sell or
sublicense the Data and Project Inventions themselves. All proceeds of any such
license shall be used in furtherance of the HRP Initiative or, after the term
of this Agreement, be distributed evenly between BGM, Participant and the other
sponsors. BGM shall not grant any licenses or other intellectual property
rights in or to the Project Inventions and/or Data except as explicitly set
forth in this Section 5.2.

5.3   Use of Data. For avoidance of doubt,
Participant and its Affiliates shall be permitted to further analyze the Data,
to combine the Data with its own data, and to use the Data for its internal
purposes; provided, that, Participant and its Affiliates shall not publish any
Data. Participant and its Affiliates may use the Data in, and in support of
patent applicants being submitted by or on behalf of Participant or its
Affiliates. Participant shall have the right to sublicense to its Affiliates
and Third Party Contractors the rights and licenses granted to it under this
Section 5.3 solely for the purpose of having any such Affiliate and/or Third
Party Contractor perform services with respect to one or more Participant
Proprietary Products; provided, that, it shall be a condition of any such
sublicense that such Affiliate and Third Party Contractor agrees to be bound by
all of the applicable terms and conditions of this Agreement (including without
limitation Section 4). If Participant grants any such sublicense to its
Affiliates and/or Third Party Contractors; Participant shall be
deemed to have guaranteed that such Affiliate or Third Party Contractor will
fulfill all of Participant’s obligations under this Agreement. No other rights
or licenses are granted hereunder, by implication or otherwise. Participant
shall own all results, data and intellectual property developed or discovered
through its use of the Data and Project Inventions without further obligation to BGM or the other sponsors of the HRP Initiative.

6.  Participation
Payment.

6.1   Payment. Provided that BGM has a
binding written agreement with at least one (1)

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

5

other sponsor for the HRP Initiative (excluding BGM),
Participant shall pay BGM one million seven hundred-thousand dollars (US$1,700,000)
within thirty (30) days after the Effective Date (such amount, the “First
Participation Payment”). Participant shall pay BGM [***] [***] dollars (US$[***])
in [***] (such amount, the “Second Participation Payment”). Participant shall
pay BGM a final payment of [***] dollars (US$[***]) in [***] (such amount, the “Final
Participation Payment”) (the First Participation Payment, Second Participation
Payment and Final Participation Payment together the “Participation Payments”).
Payments shall be made in accordance with wire transfer instructions to be
provided by BGM. All payments made pursuant to this Section 6.1 shall be
maintained by BGM in a dedicated account, which shall be kept separate from,
and not commingled with, any other funds.

6.2   Use of Funds. The Participation
Payments shall be used solely to perform the HRP Initiative. In the event that
the Participation Payments, when aggregated with payments received from other
sponsors, are insufficient to fund the HRP Initiative as set forth in the
budget included as part of a HRP Program (including as the same may be amended
in accordance with this Agreement), then the JSC shall promptly meet to devise
alternative plans, such as scaling back the HRP Initiative and/or identifying
one or more alternative sources of funds; provided, that, if Participant does
not consent to an alternative plan or the obtaining of such alternative funds,
then this Agreement shall be subject to termination by Participant on thirty
(30) days notice to BGM and the Participation Payments made by such Participant
shall be refunded to Participant to the extent and as provided in Section 7.

7.    Term; Termination.

7.1   Term.
This Agreement shall commence on the Effective Date and expire on the first to
occur of: (i) the completion of the HRP Initiative and (ii) the fifth anniversary
of the Effective Date.

7.2   Termination.
This Agreement is subject to early termination by Participant as provided in
Section 6.2 above and if Philips has not executed a participation agreement
with BGM to join the HRP Initiative within six (6) months of the Effective
Date. The JSC may terminate this Agreement and the HRP Initiative by majority
vote for any or no reason. Termination by the JSC will become effective
immediately after approval by the committee.

7.3   Effect
of Termination; Survival. Upon any termination of this Agreement, any
portion of the Participation Payments made by a Participant which has not been
spent in performance of the HRP Initiative, after deducting amounts committed
for non-cancelable commitments, shall be promptly refunded by BGM to
Participant. The rights  and obligations of the Parties set
forth in Sections 4, 5, 7 and 8 shall survive the termination or expiration of
this Agreement.

8.   Miscellaneous.

8.1.  NO
WARRANTIES. EXCEPT AS SPECIFICALLY STATED HEREIN, THE PARTIES MAKE NO EXPRESS OR IMPLIED WARRANTY
AS TO ANY MATTER WHATSOEVER, INCLUDING THE CONDITIONS OF THE RESEARCH OR ANY
INVENTION, MATERIAL, OR DATA, WHETHER TANGIBLE OR INTANGIBLE, MADE OR DEVELOPED
UNDER OR OUTSIDE THE SCOPE OF THIS AGREEMENT OR THE OWNERSHIP, MERCHANTABILITY,
OR FITNESS FOR A PARTICULAR PURPOSE OF ANY INVENTION, DATA OR MATERIAL, OR THAT
A TECHNOLOGY UTILIZED BY A PARTY IN THE PERFORMANCE OF THE HRP PROGRAM DOES NOT INFRINGE ANY
THIRD-PARTY PATENT RIGHTS.

8.2.  Indemnification  and Liability. Participant
agrees to hold BGM and Philips (each an “Indemnitee”), and each of their
respective officers, directors, employees and agents, harmless and to indemnify
each Indemnitee for all liabilities, demands, damages, expenses and losses (“Losses”)
arising out of the use by Participant of the Data and/or the Project
Inventions, for any purpose; provided, however,  that such indemnification shall
not be provided to an Indemnitee for a Losses to the extent such Losses arises
out of: (i) a breach of this Agreement by such Indemnitee, (ii) a deviation
from the HRP Program by such Indemnitee, or (iii) the negligence or willful
misconduct of such Indemnitee.

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

6

8.3.  Governing Law. The construction, validity, performance and
effect of this Agreement will be governed by the laws of the State of New York
without regard to provisions relating to conflicts of laws.

8.4.  Waivers. None of the provisions of this Agreement will be
considered waived by any Party unless a waiver is given in writing to the other
Party. The failure of a Party to insist upon strict performance of any of the
terns and conditions hereof, or failure or delay to exercise any rights
provided herein or by law, will not be deemed a waiver of any rights of any Party.

8.5.  Amendments. This Agreement shall only be amended by a
written amendment signed by BGM and Participant.

8.6.  Assignment. Neither this Agreement nor any rights or
obligations of any Party hereunder will be assigned or otherwise transferred by
either Party without the prior written consent of the other Party.

8.7.  Notices. All notices pertaining to or required by this
Agreement will be in writing, signed by an authorized representative of the
notifying Party, and delivered by first class, registered, or certified mail,
or by an express/overnight commercial delivery service, prepaid and properly addressed to the
other party at the address set forth above,
or to any other address designated in writing by the other Party. Notices to
BGM shall be directed to “President;” notices to Philips shall be delivered to “Vice
President Strategy and Business Development, Philips Medical Systems; notices
to Participant shall be directed to W. Karl Fuchs, Merck & Co., Inc.,
Sumneytown Pike, P.O. Box 4, WP 42-300, West Point, PA 19486, USA. Notices will
be considered timely if received on or before the established deadline date or
sent on or before the deadline date as verifiable by U.S. Postal Service
postmark or dated receipt from a commercial carrier. Any Party may change its
address by notice given to the other Party in the manner set forth above.

8.8.  Use of Name; Press Releases. Participant shall not issue any
press releases, or make other public statements, that include reference or rely
upon the Data or the HRP Program without the prior written consent of the JSC.
The JSC shall approve and issue all press releases related to the HRP
Initiative. Notwithstanding the foregoing, BGM, Philips and Participant shall
each have the right to publicize Participant’s support of the HRP Initiative.

IN WITNESS WHEREOF, the
undersigned have executed this Agreement as of the Effective Date.

 

 

 

	
  BG Medicine, Inc.

  

 

 

	
  By:

  	
   

  	
  /s/ Pieter Muntendam

  	
   

  
	
  Name:

  	
   

  	
  Pieter Muntendam

  	
   

  
	
  Title:

  	
   

  	
  President

  	
   

  
					

 

	
  Merck & Co., Inc.

  

 

	
  By:

  	
   

  	
  /s/ Richard Hargreaves

  	
   

  
	
  Name:

  	
   

  	
  Richard Hargreaves, Ph.D.

  	
   

  
	
  Title:

  	
   

  	
  Vice President, Research

  	
   

  

 

	
  By:

  	
   

  	
  /s/ Kathleen Metters, Ph.D.

  	
   

  
	
  Name:

  	
   

  	
  Kathleen Metters, Ph.D.

  	
   

  
	
  Title:

  	
   

  	
  Sr. Vice President, Basic Research

  	
   

  
					

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

7

 

Exhibit A-1

HRP Program

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

A-1

 

AMENDMENT TO THE PARTICIPATION AGREEMENT

This
AMENDMENT TO THE PARTICIPATION AGREEMENT (this “Amendment”) is entered into as
of October 10, 2006 (the “Amendment Effective Date”), by and between Merck
& Co., Inc. (“MERCK”) and BG Medicine, Inc., (“BGM”) and amends that
certain PARTICIPATION AGREEMENT between MERCK and BGM, dated as of July 28,
2006 (the “Agreement”; capitalized terms used herein without definition herein
shall have the meaning given such terms in the Agreement).

Whereas,
MERCK and BGM desire to modify the PARTICIPATION AGREEMENT to clarify the use
of Personal Data.

Now,
therefore, MERCK and BGM, for good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, and intending to be
legally bound hereby, agree as follows:

1.               The definition of
Personal Data shall be included within the Agreement as follows:

“Personal Data” means any information that
identifies or that could be used to identify an individual natural person.

2.               The title of
Subsection 2.3, Limits on Participation shall be changed to Additional Participants.
The fifth sentence in this subsection, “Thereafter, Subsequent Participants
shall only be permitted to join the HRP Initiative by unanimous decision of the
JSC.” shall be amended by deleting it in its entirety and replacing it with the
following:

Thereafter, Subsequent Participants shall only be
permitted to join the HRP Initiative with the consent of at least two-thirds of
the JSC.

3.           In Subsection
3.2(b), the fifth sentence, “The SPB shall have no more than thirteen (13)
members, not counting ad hoc and SPB sub committee members.” shall be amended
by deleting it in its entirety and replacing it with the following:

The JSC shall decide the maximum number of SPB
members.

4.               In Subsection 3.3,
the name of the ‘Alliance Manager’ has been changed to the ‘Initiative
Manager’. All references within the Agreement to the Alliance Manager shall be
amended to mean Initiative Manager.

5.               Section 4- Reports;
Access to Data and Material; Confidentiality; Publication shall be amended by
adding Subsection 4.5 as follows:

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

4.5  Privacy and Data Protection.

(a)     Notwithstanding
anything to the contrary in Section 4.3, BGM shall hold in confidence any
Personal Data collected or produced in connection with the HRP Initiative except in good faith performance of its
obligations under this Agreement, to the extent necessary to be
disclosed to regulatory agencies as part of the review process, or to the
extent required by law.

(b)     BGM
represents and warrants that it has complied, or shall comply, with all
applicable laws, rules and regulations relating to the collection or use of HRP
Materials and Personal Data, and that it has obtained, or shall obtain, all
necessary authorizations, approvals and informed consents, in writing, for the
collection, use and disclosure to Participant of the HRP Materials and Personal
Data. BGM shall provide documentation of such authorizations, approvals and
consents upon Participant’s request. Further, BGM represents and warrants that
any HRP Materials and Personal Data provided to Participant do not violate the
rights of any third party.

(c)     BGM
agrees to ensure that all appropriate administrative, physical and technical
safeguards are taken to protect Personal Data from loss, misuse, and
unauthorized access, disclosure, alteration or destruction, including without
limitation, implementation and enforcement of security policies and procedures
applicable to Personal Data.

6.     The first sentence of Subsection 5.3 the Agreement is hereby
amended by deleting it in its entirety and replacing it with the following:

5.3  Use of Data. For
avoidance of doubt, Participant and its Affiliates shall be permitted to
further analyze the Data, including, without limitation, dates, ages, towns,
cities, states and zip codes related to individuals, to combine the Data with
its own data, and to use the Data for its internal purposes; provided, that,
Participant and its Affiliates shall not publish any Data.

7.               Subsection 5.3-Governing Law shall be amended by
deleting it in its entirety and replacing it with the following:

8.3.  Governing
Law. The construction, validity, performance and effect of this Agreement
will be governed by the laws of the State of New York without regard to
provisions relating to conflicts of laws. Any dispute arising out of or
relating to this Agreement shall be addressed amicably in accordance with
Section 3.1(f). In the event a resolution to the dispute cannot be obtained,
the dispute shall be resolved through arbitration before three (3) arbitrators.
Such arbitration shall take place in New York City, NY and shall proceed in accordance
with the commercial arbitration rules of the American Arbitration Association
(“AAA”) and the laws of the state of New York without regard to the provisions
thereof concerning conflict of laws.

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

2

8. This Amendment shall become effective as of the
Amendment Effective Date. Except as amended hereby, the terms and conditions of
the Agreement shall remain in full force and effect in all other respects,
unless further amended by written agreement. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be attached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. This Amendment shall be governed
by and construed in accordance with the laws of the State of New York, without
reference to its conflict of laws principles.

IN
WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
duly executed in the name of and on its behalf, to be effective as of the
Amendment Effective Date.

 

	
   

  	
  BG Medicine, Inc.

  

 

	
   

  	
  By:

  	
   

  	
  /s/ Pieter Muntendam

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Pieter Muntendam

  	
   

  
	
   

  	
  Title:

  	
   

  	
  President

  	
   

  
	
   

  	
  Date:

  	
   

  	
  Nov 1, 2006

  	
   

  

 

	
   

  	
  Merck & Co., Inc.

  

 

	
   

  	
  By:

  	
   

  	
  /s/ Richard Hargreaves

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Richard Hargreaves, Ph.D.

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President, Research

  	
   

  
	
   

  	
  Date:

  	
   

  	
  Nov 2, 2006

  	
   

  

 

	
   

  	
  By:

  	
   

  	
  /s/ Kathleen Metters, Ph.D.

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Kathleen Metters, Ph.D.

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Sr. Vice President, Basic Research

  	
   

  
	
   

  	
  Date:

  	
   

  	
  Nov 8, 2006

  	
   

  

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 406 of the Securities Act.

 

3

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