Document:

EXHIBIT
10.2

 

EXECUTION
VERSION

 

ASSIGNMENT
OF NON-COMPETE

 

THIS
ASSIGNMENT OF NON-COMPETE (this “Assignment”), dated
as of January 26, 2009, is made and entered into by and among Neose
Technologies, Inc., a Delaware corporation (“Seller”), Novo Nordisk
A/S, a limited liability company organized under the laws of Denmark (“Buyer”)
and George J. Vergis (“Employee”).

 

All capitalized terms not
otherwise defined herein shall have the meanings set forth in the Novo Asset
Purchase Agreement (defined below).

 

WHEREAS,
Seller has agreed to sell to Buyer the Purchased Assets pursuant to an asset
purchase agreement, dated as of September 17, 2008 (the “Novo Asset
Purchase Agreement”), such sale transaction expected to occur on or about January 27,
2009 (the “Closing Date”);

 

WHEREAS,
simultaneously with the sale of the Purchased Assets, Seller has agreed to sell
substantially all of its remaining assets to BioGeneriX AG (“BGX”)
pursuant to an asset purchase agreement, dated as of September 17, 2008
(the “BGX Asset Purchase Agreement”);

 

WHEREAS,
after the closing of the sale transactions contemplated by the Novo Asset
Purchase Agreement and the BGX Asset Purchase Agreement, Seller intends to
dissolve and distribute its remaining assets to its stockholders (the “Dissolution”);

 

WHEREAS,
Employee and Seller are currently party to the Amended and Restated Employment
Agreement, dated as of April 30, 2007 (the “Employment Agreement”),
attached hereto as Exhibit A, which provides, in Sections 5.1.1,
5.1.2, 5.1.3, 5.1.4 and 5.4.1, for covenants by Employee not to compete with
the business of Seller during the term of Employee’s employment and for one
year thereafter, as extended to a period of eighteen months thereafter pursuant
to Sections 6.1.1 and 6.2, and in Section 5.6 for specific remedies to
enforce those covenants (Sections 5.1.1, 5.1.2, 5.1.3, 5.1.4, 5.4.1, 5.6, 6.1.1
and 6.2 of the Employment Agreement are collectively referred to herein as the “Non-Compete”);

 

WHEREAS,
in connection with the sale of its assets, Seller desires to assign to Buyer
and Buyer desires to assume the Non-Compete to the extent that it relates to
the Purchased Assets within the Novo Field of Use (the “Novo Restricted
Business”);

 

WHEREAS,
under Section 9.3 of the Employment Agreement, Seller may assign the
Employment Agreement to any successor to all or substantially all of its assets
and business by means of liquidation, dissolution, merger, consolidation,
transfer of assets, or otherwise; and

 

WHEREAS,
as consideration for the payments to be made to Employee pursuant to Section 6
of the Employment Agreement payable upon the Dissolution and for other good and
valuable consideration, Employee has agreed to the assignment of the
Non-Compete to the extent that it relates to the Novo Restricted Business.

 

 

NOW,
THEREFORE, in consideration of the mutual covenants of the
parties set forth in this Assignment, the Novo Asset Purchase Agreement and the
Employment Agreement and other good and valuable consideration the receipt of
which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Effective as of the
Closing Date, Seller does hereby assign to Buyer, and Buyer does hereby assume,
the Non-Compete to the extent that it relates to the Novo Restricted
Business.  As a result, as of the Closing
Date, among others as provided for in the Non-Compete, Employee agrees with
Buyer:

 

(a)           not to engage or
participate in any business competitive with the Novo Restricted Business;

 

(b)           not to become
interested in (as owner, stockholder, lender, partner, co-venturer, director,
officer, employee, agent or consultant) any person, firm, corporation,
association or other entity engaged in any business competitive with the Novo
Restricted Business.  Notwithstanding the
foregoing, Employee may hold up to 4.9% of the outstanding securities of any
class of publicly-traded securities of any company;

 

(c)           not to engage in any
business, or solicit or call on any customer, supplier, licensor, licensee,
contractor, agent, representative, advisor, strategic partner, distributor or
other person with whom Seller shall have dealt or any prospective customer,
supplier, licensor, licensee, contractor, agent, representative, advisor,
strategic partner, distributor or other person that Seller shall have
identified and solicited at any time during Employee’s employment by Seller for
a purpose competitive with the Novo Restricted Business; or

 

(d)           not to influence or
attempt to influence any employee, consultant, customer, supplier, licensor,
licensee, contractor, agent, representative, advisor, strategic partner,
distributor of Seller or other person to terminate or modify any written or
oral agreement, arrangement or course of dealing with Buyer in its capacity as
successor to Seller with respect to any such agreement, arrangement or course
of dealing.

 

For the avoidance of doubt, Seller retains all rights
in the Non-Compete relating to any remaining assets of Seller in the Retained
Neose Field of Use.  “Retained Neose
Field of Use” means the exploitation of non-GlycoPEGylated glycolipids or
oligosaccharides, in each case not attached to a peptide or protein.

 

2.             Employee acknowledges
that the assignment of the Non-Compete to the extent that it relates to the
Novo Restricted Business is made in accordance with Section 9.3 of the
Employment Agreement which allows for an assignment of the Employment Agreement
to any successor to all or substantially all of its assets and business by
means of liquidation, dissolution, merger, consolidation, transfer of assets,
or otherwise.  Employee further
acknowledges that the assignment is necessary and reasonable in connection with
the sale transaction contemplated by the Novo Asset Purchase Agreement and to
facilitate the ability of Seller to effect the Dissolution and to make payments
to Employee pursuant to Section 6.1.2 of the Employment Agreement.

 

2

 

3.             Buyer may assign its
rights hereunder to any successor to that portion of its business that includes
all or substantially all the Purchased Assets, without regard to whether such
succession occurs by means of liquidation, dissolution, merger, consolidation,
transfer of assets, or otherwise.

 

4.             Each of the parties
hereto agrees that it will, from time to time after the date hereof, without further
consideration, execute, acknowledge and deliver all such further acts,
assignments, transfers, conveyances, evidences of title, assumptions and
assurances as may be required to carry out the intent of this Assignment.

 

5.             Each of the parties
hereto acknowledges and agrees that no part of the Employment Agreement nor
obligations (including payment obligations of any kind) thereunder, other than
the Non-Compete to the extent that it relates to the Novo Restricted Business,
is assigned to, or assumed by, Buyer.

 

6.             This Assignment may
be executed in multiple counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  This Assignment may be
executed by facsimile signatures, which signatures shall have the same force
and effect as original signatures.

 

7.             This Assignment shall
be governed by the laws of the Commonwealth of Pennsylvania without regard to
the principles of conflicts of laws.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

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IN
WITNESS WHEREOF, the parties hereto have executed this
Assignment as of the date first above written.

 

 

	
   

  	
  NEOSE TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ A. Brian Davis

  
	
   

  	
  Name:  A. Brian Davis

  
	
   

  	
  Title:  Sr. Vice President and CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOVO NORDISK A/S

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jesper Brandgaard

  
	
   

  	
  Name: Jesper Brandgaard

  
	
   

  	
  Title: Chief Financial
  Officer

  

 

SIGNATURE PAGE TO
ASSIGNMENT OF NON-COMPETE (NOVO/VERGIS)

 

 

	
   

  	
  GEORGE J. VERGIS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
       /s/ George J. Vergis

  

 

SIGNATURE PAGE TO
ASSIGNMENT OF NON-COMPETE (NOVO/VERGIS)

 

 

EXHIBIT A

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (the “Agreement”), is dated as of April 30,
2007 (the “Amendment Date”), by and between NEOSE TECHNOLOGIES, INC. (the “Company”)
and GEORGE J. VERGIS, PH.D. (the “Executive”).

 

Background

 

                The
Executive and the Company are parties to an Employment Agreement dated as of May 4,
2006 (“Original Agreement”).  The
Executive and the Company desire to amend and restate the Original Agreement
setting forth the terms and conditions of his employment as the President and
Chief Executive of the Company, as set forth herein.

 

Terms

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and promises contained
herein, and intending to be bound hereby, the parties agree as follows:

 

1.     Employment.

 

1.1.    Term.  The Company agrees
to employ the Executive in accordance with the terms of this Agreement and the
Executive agrees to accept such continued employment, effective on the
Effective Date and continuing until terminated pursuant to Section 4
hereof (the “Term”).

 

1.2.    Positions.  During the Term, the Executive will serve as
President and Chief Executive Officer of the Company, reporting directly to the
Board.  The Board agrees to nominate the
Executive for reelection to the Board at each annual meeting of the Company’s
stockholders occurring during the Term and at which the Executive’s term as a
director is scheduled to expire.

 

1.3.    Duties.  The Executive will
perform such duties and functions as are customarily performed by the president
and chief executive officer of an enterprise the size and nature of the
Company, including the duties and functions from time to time assigned to him
by the Board.  Without limiting the
generality of the foregoing, the Executive will be responsible for all aspects
of the Company’s performance, including strategy, research and development,
business development, sales and marketing, operations, manufacturing,
technology development and licensing, corporate development, information
management, finance, legal, patent, regulatory, human resources, investor
relations and corporate communications.

 

1.4.    Place of Performance.  The Executive shall perform his services
hereunder at the principal executive offices of the Company, which are
currently located in Horsham, Pennsylvania; provided, however, that the
Executive will be required to travel from time to time for business purposes.

 

 

1.5.    Time Devoted to Employment.  The Executive will devote his best efforts
and substantially all of his business time and services to the performance of
his duties under this Agreement. 
Notwithstanding the foregoing, the Executive may engage in charitable,
community service and industry association activities, and, with the approval
of the Board (which approval will not be unreasonably withheld), may serve as a
member of boards of directors of other companies or organizations, which, in
the judgment of the Board, will not present any conflict of interest with the
Company, so long as those activities do not interfere with the performance of
his duties under this Agreement.

 

2.     Compensation,
Benefits and Expense Reimbursements.

 

2.1.    Base Salary. The Executive shall receive
an initial annual salary of $350,000 (the “Base Salary”), paid
semi-monthly or otherwise in accordance with the Company’s customary payroll
practices, as in effect from time to time. 
Future salary reviews will be undertaken by the Board of Directors
annually.

 

2.2.    Bonus.  The Executive will
be eligible to receive an annual bonus (the “Annual Bonus”) for each
completed calendar year during the Term. 
The target amount of the Annual Bonus is 75% of the Base Salary for the
applicable calendar year.  The specific
goals and objectives that must be met to receive the target bonus will be
established by mutual agreement by the Board and the Executive within 90 days
following the commencement of each calendar year during the Term, and within 30
days following the Effective Date for the initial, partial calendar year of the
Term.  The Company will endeavor to pay
the Annual Bonus, if any, within two and one-half months following the end of
the calendar year to which the Annual Bonus relates.

 

2.3.    Equity Incentive.  The Board has authorized the grant to the
Executive, effective February 15, 2006 (“Grant Date”), of options to
purchase 300,000 shares of the Company’s common stock (the “Stock Option”)
with a per share exercise price equal to the fair market value of a share of
common stock on the Grant Date.  The
Stock Option will vest in four equal, annual installments commencing on February 15,
2007, the first anniversary of the Grant Date, be reflected in a stock option
agreement identical in all material respects to the Company’s Form Stock
Option Agreement and be non-qualified stock options.  The Stock Option will be subject in all
respects to the terms of the Company’s 2004 Equity Incentive Plan.

 

2.4.    Expenses.  The Executive will
be entitled to reimbursement by the Company for all expenses reasonably
incurred by him in connection with the performance of his duties, including,
without limitation, travel and entertainment expenses reasonably related to the
business of the Company, in accordance with the policies and procedures
established from time to time by the Company.

 

2.5.    Other Benefits.  The Executive will be entitled to participate
in any benefit plans, policies or arrangements sponsored or maintained by the
Company from time to time for its senior executive officers (which benefits, as
of this date, include the right to participate in the Company’s 401(k),
employee stock purchase, medical, and dental plans, and coverage under the
Company’s group life and disability insurance policies).  

 

4

 

Notwithstanding the foregoing,
the Executive’s eligibility for and participation in any of the Company’s
employee benefit plans, policies or arrangements will be subject to the terms
and conditions of such plans, policies or arrangements.  Moreover, subject to the terms and conditions
of such plans, policies or arrangements, the Company may amend, modify or
terminate such plans, policies or arrangements at any time for any reason.  In addition, the cost of the Executive’s
annual physical examination shall be borne by the Company, to the extent not
covered by the Company’s medical plan.

 

2.6.    Vacations.  In addition to holidays observed by the
Company, the Executive shall be entitled to four (4) weeks paid vacation
time during each year of employment consistent with Company policies, as in
effect from time to time.

 

3.     [Reserved]

 

4.     Termination.

 

4.1.    In General.  The Company may terminate the Executive’s
employment at any time. The Executive may terminate his employment at any time,
provided that, before the Executive may voluntarily terminate his employment
with the Company other than for Good Reason, he must provide 90 days prior
written notice (or such shorter notice as is acceptable to the Company) to the
Company.  Upon any termination of the
Executive’s employment with the Company for any reason: (i) the Executive
(unless otherwise requested by the Board) concurrently will resign all officer
or director positions he holds with the Company, its subsidiaries or
affiliates, and (ii) the Company will pay to the Executive all accrued but
unpaid compensation (including without limitation salary and bonus) through the
date of termination, and (iii) except as explicitly provided in Sections
4, 6 or 7, or otherwise pursuant to COBRA, all compensation and benefits will
cease and the Company will have no further liability or obligation to the
Executive.  The foregoing will not be
construed to limit the Executive’s right to payment or reimbursement for claims
incurred prior to the date of such termination under any insurance contract
funding an employee benefit plan, policy or arrangement of the Company in
accordance with the terms of such insurance contract.

 

4.2.    Termination without Cause or for Good Reason.

 

4.2.1.  If the Executive’s employment by the Company ceases due to a
termination by the Company without Cause or a resignation by the Executive for
Good Reason, then, in addition to the payments and benefits provided for in Section 4.1
above and subject to Section 8 below: (a) the Company will pay to the
Executive a cash amount equal to pro-rata portion of the target Annual Bonus for the calendar year in which the
termination occurs, determined by multiplying the target Annual Bonus by a
fraction, the numerator of which is the number of days during the year that
transpired before the date of the Executive’s termination of employment and the
denominator of which is 365, (b) the Company will pay to the Executive on
a cash amount equal to the sum of (i) one year of the Executive’s Base
Salary as in effect on such date, and (ii) the target Annual Bonus amount
applicable for the calendar year in which the termination occurs, (c) to
the extent not previously paid, the 

 

5

 

Company will pay to the Executive any Annual
Bonus payable with respect to a calendar year that ended prior to such
termination, (d) all outstanding stock options then held by the Executive
(including the Stock Option) will immediately become vested and exercisable
with respect to that number of additional shares of the Company’s common stock
with respect to which such stock options would have become vested and
exercisable had the Executive remained continuously employed by the Company for
an additional 12 months following his cessation of employment and will remain
exercisable for the shorter of (i) the 12-month period immediately
following the Executive’s cessation of employment, or (ii) the period
remaining until the scheduled expiration of the option (determined without
regard to the executive’s cessation of employment), and (d) the Company
will pay to the Executive the additional amount, if any, payable pursuant to Section 7
below; provided that if the Company’s obligation to make the payments provided
for in this Section 4.2.1 arises due to a cessation of the Executive’s
employment due to his death or Disability (as defined below), the cash payments
described in clauses (a), (b) and (c) of this Section 4.2.1 will
be offset by the amount of benefits paid to the Executive (or his
representative(s), heirs, estate or beneficiaries) pursuant to the life
insurance or long-term disability plans, policies or arrangements of the
Company by virtue of his death or that Disability (including, for this purpose,
only that portion of such life insurance or disability benefits funded by the
Company or by premium payments made by the Company).

 

4.2.2.  For purposes of this Agreement, the Executive’s employment will be
deemed to have been terminated without “Cause” if his employment is
terminated as a result of his death or Disability or is terminated by the
Company other than as a result of fraud, embezzlement, or any other illegal act
committed intentionally by the Executive in connection with his employment or
the performance of his duties as an officer or director of the Company.  For purposes of this Agreement, “Disability”
means the Executive’s inability, by reason of any physical or mental
impairment, to substantially perform his regular duties as contemplated by this
Agreement, as determined by the Board in its sole discretion (after affording
the Executive the opportunity to present his case), which inability is
reasonably contemplated to continue for at least one year from its commencement
and at least 90 days from the date of such determination.

 

4.2.3.  For purposes of this Agreement, “Good Reason” means, without the
Executive’s prior written consent, any of the following:

 

a)     a change in the Executive’s title (not including the election of the
Executive as Chairman of the Board);

 

b)    a reduction in the Executive’s authority, duties or responsibilities,
or the assignment to the Executive of duties that are inconsistent, in a
material respect, with Executive’s position;

 

c)     the relocation of the Company’s headquarters more than 15 miles from
Horsham, Pennsylvania, unless such move reduces Executive’s commuting time;

 

6

 

d)    a reduction in the Base Salary or in the target amount, expressed as a
percentage of Base Salary, of the Annual Bonus; or

 

e)     the Company’s failure to pay or make available any material payment or benefit
due under this Agreement or any other material breach by the Company of this
Agreement.

 

However, the foregoing events or conditions will
constitute Good Reason only if the Executive provides the Company with written
objection to the event or condition within 60 days following the Executive’s
knowledge of the occurrence thereof, the Company does not reverse or otherwise
cure the event or condition within 30 days of receiving that written objection
and the Executive resigns his employment within 90 days following the
expiration of that cure period.

 

5.     Restrictive
Covenants.  As consideration
for all of the payments to be made to the Executive pursuant to Sections 2, 4
and 6 of this Agreement, as well as for any equity incentive awards that the
Executive may receive from the Company, the Executive agrees to be bound by the
provisions of this Section 5 (the “Restrictive Covenants”). These
Restrictive Covenants will apply without regard to whether any termination of
the Executive’s employment is initiated by the Company or the Executive, and
without regard to the reason for that termination.

 

5.1.    Covenant Not To Compete.  The Executive covenants that, during the
period beginning on the Effective Date and ending on the first anniversary of
the termination of the Executive’s employment with the Company for any reason
(the “Restricted Period”), he will not (except in his capacity as an
employee or director of the Company) do any of the following, directly or
indirectly, anywhere in the world:

 

5.1.1.  engage or participate in any business competitive with the Business (as
defined below);

 

5.1.2.  become interested in (as owner, stockholder, lender, partner,
co-venturer, director, officer, employee, agent or consultant) any person,
firm, corporation, association or other entity engaged in any business
competitive with the Business. 
Notwithstanding the foregoing, the Executive may hold up to 4.9% of the
outstanding securities of any class of any publicly-traded securities of any
company;

 

5.1.3.  engage in any business, or solicit or call on any customer, supplier,
licensor, licensee, contractor, agent, representative, advisor, strategic
partner, distributor or other person with whom the Company shall have dealt or
any prospective customer, supplier, licensor, licensee, contractor, agent,
representative, advisor, strategic partner, distributor or other person that
the Company shall have identified and solicited at any time during the
Executive’s employment by the Company for a purpose competitive with the
Business;

 

5.1.4.  influence or attempt to influence any employee, consultant, customer,
supplier, licensor, licensee, contractor, agent, representative, advisor,
strategic partner, distributor or other person to terminate or modify any
written or oral agreement, arrangement or course of dealing with the Company;
or

 

7

 

5.1.5.  solicit for employment or employ or retain (or arrange to have any
other person or entity employ or retain) any person who has been employed or retained
by the Company within the 12 months preceding the termination of the Executive’s
employment with the Company for any reason.

 

5.2.    Confidentiality.  The Executive recognizes and acknowledges
that the Proprietary Information (as defined below) is a valuable, special and
unique asset of the business of the Company. 
As a result, both during the Term and thereafter, the Executive will
not, without the prior written consent of the Company, for any reason either
directly or indirectly divulge to any third-party or use for his own benefit,
or for any purpose other than the exclusive benefit of the Company, any
Proprietary Information; provided, however, that the Executive may during the
Term disclose Proprietary Information to third parties as may be necessary or
appropriate to the effective and efficient discharge of his duties as an
employee hereunder (provided that the third party recipient has signed the
Company’s then-approved confidentiality or similar agreement) or as such
disclosures may be required by law.  If
the Executive or any of his representatives becomes legally compelled to
disclose any of the Proprietary Information, the Executive will provide the
Company with prompt written notice so that the Company may seek a protective
order or other appropriate remedy.  The
non-disclosure and non-use obligations with respect to Proprietary Information
set forth in this Section 5.2 shall not apply to any information that is
in or becomes part of the public domain through no improper act on the part of
the Executive.

 

5.3.    Property of the Company.

 

5.3.1.  Proprietary Information.
All right, title and interest in and to Proprietary Information will be and
remain the sole and exclusive property of the Company.  The Executive will not remove from the
Company’s offices or premises any documents, records, notebooks, files,
correspondence, reports, memoranda or similar materials of or containing
Proprietary Information, or other materials or property of any kind belonging
to the Company unless necessary or appropriate in the performance of his duties
to the Company.  If the Executive removes
such materials or property in the performance of his duties, the Executive will
return such materials or property to their proper files or places of
safekeeping as promptly as possible after the removal has served its specific
purpose.  The Executive will not make,
retain, remove and/or distribute any copies of any such materials or property,
or divulge to any third person the nature of and/or contents of such materials
or property or any other oral or written information to which he may have
access or become familiar in the course of his employment, except to the extent
necessary in the performance of his duties. 
Upon termination of the Executive’s employment with the Company, he will
leave with the Company or promptly return to the Company all originals and
copies of such materials or property then in his possession.

 

5.3.2.  Intellectual Property.  The Executive agrees that all the
Intellectual Property (as defined below) will be considered “works made for
hire” as that term is defined in Section 101 of the Copyright Act (17
U.S.C. § 101) and that all right, title and 

 

8

 

interest in such Intellectual Property will
be the sole and exclusive property of the Company.  To the extent that any of the Intellectual
Property may not by law be considered a work made for hire, or to the extent
that, notwithstanding the foregoing, the Executive retains any interest in the
Intellectual Property, the Executive hereby irrevocably assigns and transfers
to the Company any and all right, title, or interest that the Executive may now
or in the future have in the Intellectual Property under patent, copyright,
trade secret, trademark or other law, in perpetuity or for the longest period
otherwise permitted by law, without the necessity of further
consideration.  The Company will be
entitled to obtain and hold in its own name all copyrights, patents, trade
secrets, trademarks and other similar registrations with respect to such
Intellectual Property.  The Executive
further agrees to execute any and all documents and provide any further
cooperation or assistance reasonably required by the Company, at the Company’s
sole cost and expense, to perfect, maintain or otherwise protect its rights in
the Intellectual Property.  If the
Company is unable after reasonable efforts to secure the Executive’s signature,
cooperation or assistance in accordance with the preceding sentence, whether
because of the Executive’s incapacity or any other reason whatsoever, the
Executive hereby designates and appoints the Company or its designee as the
Executive’s agent and attorney-in-fact, to act on his behalf, to execute and
file documents and to do all other lawfully permitted acts necessary or
desirable to perfect, maintain or otherwise protect the Company’s rights in the
Intellectual Property.  The Executive
acknowledges and agrees that such appointment is coupled with an interest and
is therefore irrevocable.

 

5.4.    Definitions.  For purposes of this Agreement, the following
terms have the meanings defined below:

 

5.4.1.  “Business” means research, development, manufacture, supply,
marketing, licensing, use and sale of biologic, pharmaceutical and therapeutic
materials and products and related process technology including, without
limitation, research, development, manufacture, supply, marketing, licensing,
use and sale of products and technology directed to (a) the enzymatic
synthesis of complex carbohydrates for use in food, cosmetic, therapeutic,
consumer and industrial applications, (b) enzymatic synthesis or
modification of the carbohydrate portion of proteins or lipids, (c) carbohydrate-based
therapeutics and (d) the development of protein therapeutics using
siallylation, fucosylation, glycosylation, GlycoPEGylationTM, or
GlycoConjugationTM .

 

5.4.2.  “Intellectual Property” means (a) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents and patent applications claiming such
inventions, (b) all trademarks, service marks, trade dress, logos, trade
names, fictitious names, brand names, brand marks and corporate names, together
with all translations, adaptations, derivations, and combinations thereof and including
all goodwill associated therewith, and all applications, registrations, and
renewals in connection therewith, (c) all copyrightable works, all
copyrights, and all applications, registrations, and renewals in connection
therewith, (d) all mask works and all applications, registrations, and 

 

9

 

renewals in connection therewith, (e) all
trade secrets (including research and development, know-how, formulas,
compositions, manufacturing and production processes and techniques,
methodologies, technical data, designs, drawings and specifications), (f) all
computer software (including data, source and object codes and related
documentation), (g) all other proprietary rights, (h) all copies and
tangible embodiments thereof (in whatever form or medium), or similar
intangible personal property which have been or are developed or created in
whole or in part by the Executive (i) at any time and at any place while
the Executive is employed by Company and which, in the case of any or all of
the foregoing, are related to and used in connection with the business of the
Company, or (ii) as a result of tasks assigned to the Executive by the
Company.

 

5.4.3.  “Proprietary Information” means any and all information of the
Company or of any subsidiary or affiliate of the Company.   Such Proprietary Information shall include,
but shall not be limited to, the following items and information relating to
the following items: (a) all intellectual property and proprietary rights
of the Company (including without limitation Intellectual Property) (b) computer
codes or instructions (including source and object code listings, program logic
algorithms, subroutines, modules or other subparts of computer programs and
related documentation, including program notation), computer processing systems
and techniques, all computer inputs and outputs (regardless of the media on
which stored or located), hardware and software configurations, designs,
architecture and interfaces, (c) business research, studies, procedures
and costs, (d) financial data, (e) distribution methods, (f) marketing
data, methods, plans and efforts, (g) the identities of actual and
prospective customers, contractors and suppliers, (h) the terms of
contracts and agreements with customers, contractors and suppliers, (i) the
needs and requirements of, and the Company’s course of dealing with, actual or
prospective customers, contractors and suppliers, (j) personnel
information, (k) customer and vendor credit information, and (l) any
information received from third parties subject to obligations of
non-disclosure or non-use.  Failure by
the Company to mark any of the Proprietary Information as confidential or
proprietary shall not affect its status as Proprietary Information under the
terms of this Agreement.

 

5.5.    Acknowledgements.  The Executive acknowledges that the
Restrictive Covenants are reasonable and necessary to protect the legitimate
interests of the Company and its affiliates and that the duration and
geographic scope of the Restrictive Covenants are reasonable given the nature
of this Agreement and the position the Executive will hold within the
Company.  The Executive further
acknowledges that the Restrictive Covenants are included herein in order to
induce the Company to promote the Executive and that the Company would not have
entered into this Agreement or otherwise promoted the Executive in the absence
of the Restrictive Covenants.

 

5.6.    Remedies and Enforcement Upon Breach.

 

5.6.1.  Specific Enforcement.
The Executive acknowledges that any breach by him, willfully or otherwise, of
the Restrictive Covenants will cause continuing and irreparable injury to the
Company for which monetary damages would not be an

 

10

 

adequate remedy.  The Executive
shall not, in any action or proceeding to enforce any of the provisions of this
Agreement, assert the claim or defense that such an adequate remedy at law
exists.  In the event of any such breach
by the Executive, the Company shall have the right to enforce the Restrictive
Covenants by seeking injunctive or other relief in any court, without any
requirement that a bond or other security be posted, and this Agreement shall
not in any way limit remedies of law or in equity otherwise available to the
Company.

 

5.6.2.  Judicial Modification.  If any court determines that any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, such court shall have the
power to modify such provision and, in its modified form, such provision shall
then be enforceable.

 

5.6.3.  Accounting.  If the Executive breaches any of the
Restrictive Covenants, the Company will have the right and remedy to require
the Executive to account for and pay over to the Company all compensation,
profits, monies, accruals, increments or other benefits derived or received by
the Executive as the result of such breach. 
This right and remedy will be in addition to, and not in lieu of, any
other rights and remedies available to the Company under law or in equity.

 

5.6.4.  Enforceability.  If any court holds the Restrictive Covenants
unenforceable by reason of their breadth or scope or otherwise, it is the
intention of the parties hereto that such determination not bar or in any way
affect the right of the Company to the relief provided above in the courts of
any other jurisdiction within the geographic scope of such Restrictive
Covenants.

 

5.6.5.  Disclosure of Restrictive Covenants.  The Executive agrees to
disclose the existence and terms of the Restrictive Covenants to any employer
that the Executive may work for during the Restricted Period.

 

5.6.6.  Extension of Restricted Period.  If the Executive breaches Section 5.1
in any respect, the restrictions contained in that section will be extended for
a period equal to the period that the Executive was in breach.

 

6.     Change
in Control.

 

6.1.    Certain Terminations Following a Change in Control.  If the Executive’s employment with the
Company ceases within eighteen months following a Change in Control (as defined
below) as a result of a termination by the Company without Cause (not
including, solely for purposes of this Section 6, a termination as a
result of the Executive’s death or Disability) or a resignation by the
Executive for Good Reason, then:

 

6.1.1.  the Restricted Period will be extended by eighteen months;

 

6.1.2.  subject to Section 8 and in lieu of the payments and benefits
provided for in Section 4.2, (a) the Company will pay to the
Executive a cash amount equal to pro-

 

11

 

rata portion of the target Annual Bonus for the calendar year in which the termination occurs, determined
by multiplying the target Annual Bonus by a fraction, the numerator of which is
the number of days during the year that transpired before the date of the
Executive’s termination of employment and the denominator of which is 365, (b) the
Company will pay to the Executive a cash amount equal to the sum of (i) 2.5
times the Executive’s Base Salary as in effect on such date, and (ii) 2.5
times the target Annual Bonus amount applicable for the calendar year in which
the termination occurs, (c) to the extent not previously paid, the Company
will pay to the Executive any Annual Bonus payable with respect to a calendar
year that ended prior to that termination, (d) all outstanding stock
options then held by Executive (including the Stock Option) will then become
fully vested and immediately exercisable and will remain exercisable for the
shorter of (i) the 30-month period immediately following the Executive’s
cessation of employment, or (ii) the period remaining until the scheduled
expiration of the option (determined without regard to the Executive’s
cessation of employment), and (d) the Company will pay to the Executive
the additional amount, if any, payable pursuant to Section 7 below.

 

6.2.    Definitions.  For purposes of this Agreement, the term “Change
in Control” means a change in ownership or control of the Company effected
through any of the following transactions:

 

6.2.1.  the direct or indirect acquisition by any person or related group of
persons (other than the Company or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Company) of
beneficial ownership (within the meaning of Rule 13d-3 of the Securities
Exchange Act of 1934, as amended) of securities possessing more than 50% of the
total combined voting power of the Company’s outstanding securities;

 

6.2.2.  a change in the composition of the Board over a period of 36 months or
less such that a majority of the Board members ceases, by reason of one or more
contested elections for Board membership, to be comprised of individuals who
either (a) have been board members continuously since the beginning of
such period, or (b) have been elected or nominated for election as Board
members during such period by at least a majority of the Board members
described in clause (a) who were still in office at the time such election
or nomination was approved by the Board;

 

6.2.3.  the consummation of any consolidation, share exchange or merger of the
Company (a) in which the stockholders of the Company immediately prior to
such transaction do not own at least a majority of the voting power of the
entity which survives/results from that transaction, or (b) in which a
stockholder of the Company who does not own a majority of the voting stock of
the Company immediately prior to such transaction, owns a majority of the
Company’s voting stock immediately after such transaction; or

 

6.2.4.  the liquidation or dissolution of the Company or any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially 

 

12

 

all the assets of the Company, including
stock held in subsidiary corporations or interests held in subsidiary ventures.

 

7.     Parachute
Payments.

 

7.1.    Generally.  All amounts payable to the Executive under
this Agreement will be made without regard to whether the deductibility of such
payments (considered together with any other entitlements or payments otherwise
paid or due to the Executive) would be limited or precluded by Section 280G
of the Code and without regard to whether such payments would subject the
Executive to the excise tax levied on certain “excess parachute payments” under
Section 4999 of the Code (the “Parachute Excise Tax”).

 

7.2.    Gross-Up.  If all or any
portion of the payments or other benefits provided under any section of this
Agreement, either alone or together with any other payments and benefits which
the Executive receives or is entitled to receive from the Company or its
affiliates (whether paid or payable or distributed or distributable) pursuant
to the terms of this Agreement or otherwise pursuant to or by reason of any
other agreement, policy, plan, program or arrangement, including without
limitation any stock option, stock appreciation right or similar right, or the
lapse or termination of any restriction on or the vesting or exercisability of
any of the foregoing (the “Payment”) would result in the imposition of a
Parachute Excise Tax, the Executive will be entitled to an additional payment
(the “Gross-up Payment”) in an amount such that the net amount of the Payment
and the Gross-up Payment retained by the Executive after the calculation and
deduction of all excise taxes (including any interest or penalties imposed with
respect to such taxes) on the Payment and all federal, state and local income
tax, employment tax and excise tax (including any interest or penalties imposed
with respect to such taxes) on the Gross-up Payment provided for in this Section 7.2,
and taking into account any lost or reduced tax deductions on account of the
Gross-up Payment, shall be equal to the Payment.

 

7.3.    Measurements and Adjustments.  The determination of the amount of the
payments and benefits paid and payable to the Executive and whether and to what
extent payments under Section 7.2 are required to be made will be made at
the Company’s expense by an independent auditor selected by mutual agreement of
the Company and the Executive, which auditor shall provide Executive and the
Company with detailed supporting calculations with respect to its determination
within fifteen (15) business days of the receipt of notice from the Executive
or the Company that the Executive has received or will receive a payment that
is potentially subject to the Parachute Excise Tax.  For the purposes of determining whether any
payments will be subject to the Parachute Excise Tax and the amount of such
Parachute Excise Tax, such payments will be treated as “parachute payments”
within the meaning of section 280G of the Code, and all “parachute payments” in
excess of the “base amount” (as defined under section 280G(b)(3) of the
Code) shall be treated as subject to the Parachute Excise tax, unless and
except to the extent that in the opinion of the accountants such payments (in
whole or in part) either do not constitute “parachute payments” or represent
reasonable compensation for services actually rendered (within the meaning of
section 280G(b)(4) of the Code) in excess of the “base amount,” or such “parachute
payments” are 

 

13

 

otherwise not subject to such
Parachute Excise Tax.  For purposes of
determining the amount of the Gross-up Payment, if any, the Executive shall be
deemed to pay federal income taxes at the highest applicable marginal rate of
federal income taxation for the calendar year in which the gross-up payment is
to be made and to pay any applicable state and local income taxes at the
highest applicable marginal rate of taxation for the calendar year in which the
gross-up payment is to be made, net of the maximum reduction in federal income
taxes which could be obtained from the deduction of such state or local taxes
if paid in such year (determined without regard to limitations on deductions
based upon the amount of the Executive’s adjusted gross income); and to have
otherwise allowable deductions for federal, state and local income tax purposes
at least equal to those disallowed because of the inclusion of the Gross-up
Payment in the Executive’s adjusted gross income.  Any Gross-up Payment shall be paid by the
Company at the time the Executive is entitled to receive the Payment.  Any determination by the auditor shall be
binding upon the Company and the Executive.

 

7.4.    In the event of any underpayment or overpayment to the
Executive (determined after the application of Section 7.2), the amount of
such underpayment or overpayment will be, as promptly as practicable, paid by
the Company to the Executive or refunded by the Executive to the Company, as
the case may be, with interest at the applicable federal rate specified in Section 7872(f)(2) of
the Code.

 

8.     Timing
of Payments Following Termination.

 

8.1.    Notwithstanding any provision of this Agreement, the
payments and benefits described in Sections 4.2, 6 and 7 are conditioned on the
Executive’s execution and delivery to the Company, within 60 days following his
cessation of employment, of a release substantially identical to that attached
hereto as Exhibit I in a manner consistent with the requirements of
the Older Workers Benefit Protection Act (the “Mutual Release”).  The amounts described in Sections 4.2.1 and
6.1.2 will be paid in a lump sum, on the eighth day following the Executive’s
execution and delivery of the Mutual Release (provided that the Mutual Release
has not been revoked by the Executive). 
The Company covenants that if the Executive executes the Mutual Release,
the Company will also execute the Mutual Release.

 

8.2.    IRC Section 409A. To the extent compliance with
the requirements of Treas. Reg. §1.409A-3(i)(2) or any successor
provision  is necessary to avoid the
application of an additional tax under Section 409A of the Code on
payments due to the Executive upon or following his separation from service,
then, notwithstanding any other provision of this Agreement (or any otherwise
applicable plan, policy, agreement or arrangement), any such payments that are
otherwise due within six months following the Executive’s separation from
service will be deferred (without interest) and paid to the Executive in a lump
sum immediately following that six month period.

 

9.     Miscellaneous.

 

9.1.    No Liability of Officers and Directors for Severance Upon
Insolvency.  Notwithstanding any
other provision of the Agreement and intending to be bound by this provision,
the 

 

14

 

Executive hereby (a) waives
any right to claim payment of amounts owed to him, now or in the future,
pursuant to this Agreement from directors or officers of the Company if the
Company becomes insolvent, and (b) fully and forever releases and
discharges the Company’s officers and directors from any and all claims,
demands, liens, actions, suits, causes of action or judgments arising out of
any present or future claim for such amounts.

 

9.2.    Other Agreements.  The Executive represents and warrants to the
Company that there are no restrictions, agreements or understandings whatsoever
to which he is a party that would prevent or make unlawful his execution of
this Agreement, that would be inconsistent or in conflict with this Agreement
or Executive’s obligations hereunder, or that would otherwise prevent, limit or
impair the performance by Executive of his duties under this Agreement.

 

9.3.    Successors and Assigns. The Company may assign this
Agreement to any successor to all or substantially all of its assets and
business by means of liquidation, dissolution, merger, consolidation, transfer
of assets, or otherwise.  The duties of
the Executive hereunder are personal to the Executive and may not be assigned
by him.

 

9.4.    Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania
without regard to the principles of conflicts of laws.

 

9.5.    Enforcement.  Any legal proceeding arising out of or
relating to this Agreement will be instituted in the United States District
Court for the Eastern District of Pennsylvania, or if that court does not have
or will not accept jurisdiction, in any court of general jurisdiction in the
Commonwealth of Pennsylvania, and the Executive and the Company hereby consent
to the personal and exclusive jurisdiction of such court(s) and hereby
waive any objection(s) that they may have to personal jurisdiction, the
laying of venue of any such proceeding and any claim or defense of inconvenient
forum.

 

9.6.    Waivers; Separability.  The waiver by either party hereto of any
right hereunder or any failure to perform or breach by the other party hereto
shall not be deemed a waiver of any other right hereunder or any other failure
or breach by the other party hereto, whether of the same or a similar nature or
otherwise.  No waiver shall be deemed to
have occurred unless set forth in a writing executed by or on behalf of the
waiving party.  No such written waiver
shall be deemed a continuing waiver unless specifically stated therein, and
each such waiver shall operate only as to the specific term or condition waived
and shall not constitute a waiver of such term or condition for the future or
as to any act other than that specifically waived.  If any provision of this Agreement shall be
declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which
shall remain in full force and effect.

 

9.7.    Notices.  All notices and
communications that are required or permitted to be given hereunder shall be in
writing and shall be deemed to have been duly given when hand-delivered or sent
by first-class, registered or certified mail, nationally recognized 

 

15

 

overnight delivery service, or
by facsimile with a machine-generated confirmation (and with a confirmation
copy sent by one of the other methods listed above) to the other party at the
address set forth below:

 

If to the Company, to:

 

Neose Technologies, Inc.

102 Rock Road

Horsham PA 19044

Attn: General Counsel

Fax: 215-315-9200

 

With a copy to:

 

Pepper Hamilton LLP

3000 Two Logan Square

18th & Arch Streets

Philadelphia, PA 19103

Attn: Barry M. Abelson, Esquire

Fax: 215-981-4750

 

If
to Executive, to:

 

George
J. Vergis, Ph.D.

204 Weeks Pond Road

New
Hope, PA  18938

 

With
a copy to:

Edmonds & Co., P.C.

420
Fifth Avenue, 25th Floor

New
York, New York  10018

Attn: Robert C. Edmonds, Esq.

Fax:
212-703-5440

 

or to such other address as may be specified in a
notice given by one party to the other party hereunder.

 

9.8.    Entire Agreement; Amendments.  As of the Effective Date, this Agreement and
the attached exhibits contain the entire agreement and understanding of the
parties hereto relating to the subject matter hereof, and merges and supersedes
all prior and contemporaneous discussions, agreements and understandings of
every nature relating to the subject matter (including, without limitation,
that certain letter agreement between the Executive and the Company dated July 2,
2001 and that certain Change in Control Agreement between the Executive and the
Company dated October 11, 2002). 
This Agreement may not be changed or modified, except by an Agreement in
writing signed by each of the parties hereto.

 

16

 

9.9.    Withholding.  The Company will withhold from any payments
due to Executive, all taxes, FICA or other amounts required to be withheld
pursuant to any applicable law.

 

9.10.  Headings Descriptive.  The headings of sections and paragraphs of
this Agreement are inserted for convenience only and shall not in any way
affect the meaning or construction of any provision of this Agreement.

 

9.11.  Counterparts.  This Agreement may be executed in multiple
counterparts, each of which will be deemed to be an original, but all of which
together will constitute but one and the same instrument.

 

[This space left blank intentionally;
signature page follows.]

 

17

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the date and year first above
written.

 

	
   

  	
  NEOSE
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ A. Brian Davis

  
	
   

  	
   

  	
  A.  Brian
  Davis

  
	
   

  	
   

  	
  Senior Vice President & CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
      /s/
  George J. Vergis

  
	
   

  	
  GEORGE J. VERGIS, PH.D.

  

 

18

 

Exhibit I

 

Mutual Release and Non-Disparagement Agreement

 

THIS MUTUAL RELEASE AND
NON-DISPARAGEMENT AGREEMENT (this “Mutual Release”) is made as of the
       day of
              ,
           by and between
GEORGE J. VERGIS, Ph.D. (“Executive”) and NEOSE TECHNOLOGIES, INC. (the “Company”).

 

WHEREAS, Executive’s
employment with the Company has ceased; and

 

WHEREAS, Executive has
resigned as an officer and/or director of the Company and each of its
subsidiaries and affiliates; and

 

WHEREAS, pursuant to
Section[s] 4[[,] [and] 6 [and 7]] of the Amended and Restated Employment
Agreement by and between the Company and Executive dated April 30, 2007
(the “Employment Agreement”), the Company has agreed to pay Executive
certain amounts and to provide him with certain rights and benefits, subject to
the execution of this Mutual Release.

 

NOW THEREFORE, in
consideration of these premises and the mutual promises contained herein, and
intending to be legally bound hereby, the parties agree as follows:

 

SECTION 1.           Consideration. 
Executive acknowledges that: (i) the payments, rights and benefits
set forth in Section[s] 4[[,] [and] 6 [and 7]] of the Employment Agreement
constitute full settlement of all his rights under the Employment Agreement, (ii) he
has no entitlement under any other severance or similar arrangement maintained
by the Company, and (iii) except as otherwise provided specifically in
this Mutual Release, the Company does not and will not have any other liability
or obligation to Executive.  Executive
further acknowledges that, in the absence of his execution of this Mutual
Release, the benefits and payments specified in Section[s] 4[[,] [and] 6 [and
7]] of the Employment Agreement would not otherwise be due to Executive.

 

SECTION 2.           Mutual Release and Covenant Not to Sue.

 

2.1.          The Company (including for purposes of this Section 2.1, its
parents, affiliates and subsidiaries) hereby fully and forever releases and
discharges Executive (and his heirs, executors and administrators), and
Executive hereby fully and forever releases and discharges Company (including
all predecessors and successors, assigns, officers, directors, trustees,
employees, agents and attorneys, past and present) from any and all claims,
demands, liens, agreements, contracts, covenants, actions, suits, causes of
action, obligations, controversies, debts, costs, expenses, damages, judgments,
orders and liabilities, of whatever kind or nature, direct or indirect, in law,
equity or otherwise, whether known or unknown, arising through the date of this
Mutual Release, out of Executive’s employment by the Company or the termination
thereof, including, but not limited to, any claims for relief or causes of
action under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.,
or any other federal, state or local statute, ordinance or regulation regarding
discrimination in employment and any claims, demands or actions based upon
alleged wrongful or retaliatory discharge or breach of contract under any state
or federal law.

 

2.2.          Executive expressly represents that he has not filed a lawsuit or
initiated any other administrative proceeding against the Company (including
for purposes of this Section 2.2, its parents, affiliates and
subsidiaries) and that he has not assigned any claim against the Company or any
affiliate to any other person or entity. 
The Company expressly represents that it has not 

 

 

filed a lawsuit or initiated
any other administrative proceeding against Executive and that it has not
assigned any claim against Executive to any other person or entity.  Both Executive and the Company further
promise not to initiate a lawsuit or to bring any other claim against the other
arising out of or in any way related to Executive’s employment by the Company
or the termination of that employment. 
This Mutual Release will not prevent Executive from filing a charge with
the Equal Employment Opportunity Commission (or similar state agency) or
participating in any investigation conducted by the Equal Employment
Opportunity Commission (or similar state agency); provided, however, that any
claims by Executive for personal relief in connection with such a charge or
investigation (such as reinstatement or monetary damages) would be barred.

 

2.3.          The foregoing will not be deemed to release the Executive or the
Company from (a) claims solely to enforce this Mutual Release, (b) claims
solely to enforce Sections 4, 5, [6], [7] or 9 of the Employment Agreement, or (c) claims
solely to enforce the terms of any equity incentive award agreement between
Executive and the Company, or (d) claims for indemnification under the
Company’s By-Laws, under any indemnification agreement between the Company and
Executive or under any similar agreement.

 

SECTION 3.           Restrictive Covenants. 
Executive acknowledges that restrictive covenants contained in Section 5
of the Employment Agreement will survive the termination of his
employment.  Executive affirms that those
restrictive covenants are reasonable and necessary to protect the legitimate
interests of the Company, that he received adequate consideration in exchange
for agreeing to those restrictions and that he will abide by those
restrictions.

 

SECTION 4.           Non-Disparagement.  The
Company (meaning, solely for this purpose, the Company’s directors and
executive officers and other individuals authorized to make official
communications on the Company’s behalf) will not disparage Executive or
Executive’s performance or otherwise take any action which could reasonably be
expected to adversely affect Executive’s personal or professional
reputation.  Similarly, Executive will
not disparage the Company or any of its directors, officers, agents or
employees or otherwise take any action which could reasonably be expected to
adversely affect the reputation of the Company or the personal or professional
reputation of any of the Company’s directors, officers, agents or employees.

 

SECTION 5.           Cooperation.  Executive further agrees that,
subject to reimbursement of his reasonable expenses, he or she will cooperate
fully with the Company and its counsel with respect to any matter (including
litigation, investigations, or governmental proceedings) which relates to
matters with which Executive was involved during his employment with the
Company.  Executive shall render such
cooperation in a timely manner on reasonable notice from the Company.

 

SECTION 6.           Rescission Right.  Executive expressly acknowledges and recites
that (a) he has read and understands the terms of this Mutual Release in
its entirety, (b) he has entered into this Mutual Release knowingly and
voluntarily, without any duress or coercion; (c) he has been advised
orally and is hereby advised in writing to consult with an attorney with
respect to this Mutual Release before signing it; (d) he was provided
twenty-one (21) calendar days after receipt of the Mutual Release to consider
its terms before signing it; and (e) he or she is provided seven (7) calendar
days from the date of signing to terminate and revoke this Mutual Release, in
which case this Mutual Release shall be unenforceable, null and void.  Executive may revoke 

 

 

this Mutual Release during
those seven (7) days by hand delivering written notice of revocation to
the Company at the address specified in Section 9.7 of the Employment
Agreement.

 

SECTION 7.           Challenge.  If Executive violates or
challenges the enforceability of any provisions of the Restrictive Covenants or
this Mutual Release, no further payments, rights or benefits under Section[s]
[4.2[[,] [and] 6 [and 7]] of the Employment Agreement will be due to Executive.

 

SECTION 8.           Miscellaneous.

 

8.1           No Admission of Liability.  This
Mutual Release is not to be construed as an admission of any violation of any
federal, state or local statute, ordinance or regulation or of any duty owed by
the Company to Executive.  There have
been no such violations, and the Company specifically denies any such
violations.

 

8.2           No Reinstatement. 
Executive agrees that he or she will not apply for reinstatement with
the Company or seek in any way to be reinstated, re-employed or hired by the
Company in the future.

 

8.3           Successors and Assigns.  This
Mutual Release shall inure to the benefit of and be binding upon the Company
and Executive and their respective successors, executors, administrators and
heirs.  Executive not may make any
assignment of this Mutual Release or any interest herein, by operation of law
or otherwise.  The Company may assign
this Mutual Release to any successor to all or substantially all of its assets
and business by means of liquidation, dissolution, merger, consolidation,
transfer of assets, or otherwise.

 

8.4           Severability. 
Whenever possible, each provision of this Mutual Release will be
interpreted in such manner as to be effective and valid under applicable
law.  However, if any provision of this
Mutual Release is held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability will not affect any other
provision, and this Mutual Release will be reformed, construed and enforced as
though the invalid, illegal or unenforceable provision had never been herein
contained.

 

8.5           Entire Agreement; Amendments. 
Except as otherwise provided herein, this Mutual Release contains the
entire agreement and understanding of the parties hereto relating to the
subject matter hereof, and merges and supersedes all prior and contemporaneous
discussions, agreements and understandings of every nature relating subject
matter hereof.  This Mutual Release may
not be changed or modified, except by an Agreement in writing signed by each of
the parties hereto.

 

8.6           Governing Law.  This
Mutual Release shall be governed by, and enforced in accordance with, the laws
of the Commonwealth of Pennsylvania without regard to the application of the
principles of conflicts of laws.

 

8.7           Counterparts and Facsimiles.  This
Mutual Release may be executed, including execution by facsimile signature, in
multiple counterparts, each of which shall be deemed an original, and all of
which together shall be deemed to be one and the same instrument.

 

[This space left blank intentionally; signature page follows.]

 

 

IN WITNESS WHEREOF, the
Company has caused this Mutual Release to be executed by its duly authorized
officer, and Executive has executed this Mutual Release, in each case as of the
date first above written.

 

	
   

  	
  NEOSE TECHNOLOGIES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  A. Brian Davis

  
	
   

  	
   

  	
  Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  GEORGE VERGISExhibit 10.1

 

COLLABORATION, LICENSE and PURCHASE AGREEMENT

 

BETWEEN

 

GENZYME CORPORATION

 

AND

 

EXACT SCIENCES CORPORATION

 

 

Dated as of January 27, 2009

 

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article 1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Article 2

  	
  Sale and Purchase

  	
  9

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Purchased Assets

  	
  9

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Consideration

  	
  10

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Assumed and Retained
  Liabilities

  	
  10

  
	
   

  	
   

  	
   

  
	
  Article 3

  	
  Licenses and Other Rights

  	
  11

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  License to Genzyme
  under Retained Patent Rights

  	
  11

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  License to Genzyme
  under EXACT Licensed Improvements and Joint Collaboration Technology

  	
  11

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Option to License
  Additional EXACT Technology

  	
  12

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  License to EXACT under
  Transferred Technology, Genzyme Licensed Improvements and Joint Collaboration
  Technology

  	
  13

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Sublicensing

  	
  13

  
	
   

  	
   

  	
   

  
	
  3.6

  	
  Use of Technology

  	
  14

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  Termination of License
  Rights

  	
  14

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  Rights in Bankruptcy

  	
  14

  
	
   

  	
   

  	
   

  
	
  Article 4

  	
  Collaboration

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Joint Advisory
  Committee

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Committee Meetings and
  Activities

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Termination of the
  Collaboration Period

  	
  16

  
	
   

  	
   

  	
   

  
	
  Article 5

  	
  Closing

  	
  16

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Closing

  	
  16

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Deliverables

  	
  16

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Post-Closing

  	
  17

  
	
   

  	
   

  	
   

  
	
  Article 6

  	
  Representations and Warranties of EXACT

  	
  17

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Organization

  	
  17

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Power and Authorization

  	
  17

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Authorization of
  Governmental Authorities

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Noncontravention

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.5

  	
  Absence of Liabilities

  	
  18

  

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

i

 

	
  6.6

  	
  Absence
  of Certain Developments

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.7

  	
  Assets

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.8

  	
  Intellectual Property
  Rights

  	
  19

  
	
   

  	
   

  	
   

  
	
  6.9

  	
  Government
  Authorizations and Registrations

  	
  21

  
	
   

  	
   

  	
   

  
	
  6.10

  	
  Legal Compliance

  	
  21

  
	
   

  	
   

  	
   

  
	
  6.11

  	
  Contracts

  	
  21

  
	
   

  	
   

  	
   

  
	
  6.12

  	
  Litigation;
  Governmental Orders

  	
  22

  
	
   

  	
   

  	
   

  
	
  6.13

  	
  Insurance

  	
  22

  
	
   

  	
   

  	
   

  
	
  6.14

  	
  No Brokers

  	
  22

  
	
   

  	
   

  	
   

  
	
  6.15

  	
  Solvency

  	
  22

  
	
   

  	
   

  	
   

  
	
  6.16

  	
  Disclosure

  	
  23

  
	
   

  	
   

  	
   

  
	
  Article 7

  	
  Representations and Warranties of Genzyme

  	
  23

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Organization

  	
  23

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Power and Authorization

  	
  23

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Authorization of
  Governmental Authorities

  	
  23

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Noncontravention

  	
  24

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  No Brokers

  	
  24

  
	
   

  	
   

  	
   

  
	
  Article 8

  	
  Covenants and Agreements

  	
  24

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Expenses

  	
  24

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Payment of Liabilities

  	
  24

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Restrictions on EXACT
  Dissolution and Distributions

  	
  24

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Further Assurances

  	
  24

  
	
   

  	
   

  	
   

  
	
  Article 9

  	
  Conditions Precedent to the Obligations of Genzyme
  to Consummate the Sale

  	
  26

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Representations and
  Warranties

  	
  26

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Corporate Certificates

  	
  27

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  Secretary’s Certificate

  	
  27

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  Concurrent Transactions

  	
  27

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  Consents

  	
  27

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Opinion of Counsel to
  EXACT

  	
  27

  
	
   

  	
   

  	
   

  
	
  Article 10

  	
  Condition Precedent to the Obligation of EXACT to
  Consummate the Sale

  	
  27

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Representations and
  Warranties

  	
  27

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Secretary’s Certificate

  	
  27

  

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

ii

 

	
  10.3

  	
  Concurrent Transactions

  	
  28

  
	
   

  	
   

  	
   

  
	
  Article 11

  	
  Payment

  	
  28

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Royalty for Licenses
  under Transferred Technology and Retained Patent Rights Outside Genzyme Core
  Field

  	
  28

  
	
   

  	
   

  	
   

  
	
  11.2

  	
  Payment for Optioned
  Technology In-Licensed From a Third Party

  	
  29

  
	
   

  	
   

  	
   

  
	
  11.3

  	
  Payment Provisions
  Generally

  	
  29

  
	
   

  	
   

  	
   

  
	
  11.4

  	
  Maintenance of Records;
  Audit

  	
  30

  
	
   

  	
   

  	
   

  
	
  Article 12

  	
  Intellectual Property Matters

  	
  30

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Ownership

  	
  30

  
	
   

  	
   

  	
   

  
	
  12.2

  	
  Filing, Prosecution and
  Maintenance of Patent Rights

  	
  31

  
	
   

  	
   

  	
   

  
	
  12.3

  	
  Enforcement

  	
  34

  
	
   

  	
   

  	
   

  
	
  12.4

  	
  Claimed Infringement of
  Third Party Intellectual Property Rights

  	
  37

  
	
   

  	
   

  	
   

  
	
  12.5

  	
  Prosecution and
  Enforcement of Other Intellectual Property Rights

  	
  38

  
	
   

  	
   

  	
   

  
	
  12.6

  	
  Cross License Agreement

  	
  38

  
	
   

  	
   

  	
   

  
	
  12.7

  	
  Termination of Rights
  and Obligations Under Article 12

  	
  38

  
	
   

  	
   

  	
   

  
	
  Article 13

  	
  Confidentiality

  	
  38

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Confidentiality

  	
  38

  
	
   

  	
   

  	
   

  
	
  13.2

  	
  Permitted Disclosure

  	
  39

  
	
   

  	
   

  	
   

  
	
  13.3

  	
  Required Disclosure

  	
  39

  
	
   

  	
   

  	
   

  
	
  13.4

  	
  Public Statements

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.5

  	
  Mutual Non-Disclosure
  Agreement

  	
  40

  
	
   

  	
   

  	
   

  
	
  Article 14

  	
  Indemnification

  	
  40

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Indemnification by
  EXACT

  	
  40

  
	
   

  	
   

  	
   

  
	
  14.2

  	
  Indemnification by
  Genzyme

  	
  41

  
	
   

  	
   

  	
   

  
	
  14.3

  	
  Time for Claims

  	
  42

  
	
   

  	
   

  	
   

  
	
  14.4

  	
  Procedure for Third
  Party Claims

  	
  42

  
	
   

  	
   

  	
   

  
	
  14.5

  	
  Consent to Jurisdiction
  Regarding Third Party Claims

  	
  44

  
	
   

  	
   

  	
   

  
	
  14.6

  	
  Exclusive Remedy

  	
  44

  
	
   

  	
   

  	
   

  
	
  Article 15

  	
  Potential Liabilities Holdback

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.1

  	
  Use of Holdback Amount

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.2

  	
  12 Month Release

  	
  45

  
	
   

  	
   

  	
   

  
	
  15.3

  	
  18 Month Release

  	
  45

  

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

iii

 

	
  15.4

  	
  Outstanding
  Claims

  	
  45

  
	
   

  	
   

  	
   

  
	
  Article 16

  	
  Miscellaneous

  	
  45

  
	
   

  	
   

  	
   

  
	
  16.1

  	
  Notices

  	
  45

  
	
   

  	
   

  	
   

  
	
  16.2

  	
  Entire
  Agreement

  	
  46

  
	
   

  	
   

  	
   

  
	
  16.3

  	
  Binding
  Effect; No Assignment; No Third-Party Beneficiaries

  	
  46

  
	
   

  	
   

  	
   

  
	
  16.4

  	
  Amendment

  	
  47

  
	
   

  	
   

  	
   

  
	
  16.5

  	
  Waiver

  	
  47

  
	
   

  	
   

  	
   

  
	
  16.6

  	
  Disclaimer

  	
  47

  
	
   

  	
   

  	
   

  
	
  16.7

  	
  Section Headings,
  Construction

  	
  47

  
	
   

  	
   

  	
   

  
	
  16.8

  	
  Counterparts

  	
  47

  
	
   

  	
   

  	
   

  
	
  16.9

  	
  Severability

  	
  48

  
	
   

  	
   

  	
   

  
	
  16.10

  	
  Withholding

  	
  48

  
	
   

  	
   

  	
   

  
	
  16.11

  	
  Governing
  Law

  	
  48

  
	
   

  	
   

  	
   

  
	
  16.12

  	
  Dispute
  Resolution

  	
  48

  
	
   

  	
   

  	
   

  
	
  16.13

  	
  Submission
  to Jurisdiction; Waiver

  	
  48

  
	
   

  	
   

  	
   

  
	
  16.14

  	
  Enforcement

  	
  49

  
	
   

  	
   

  	
   

  
	
  16.15

  	
  Rules of
  Construction

  	
  49

  
	
   

  	
   

  	
   

  
	
  16.16

  	
  Waiver
  of Jury Trial

  	
  49

  

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

iv

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  Form of
  APC/p53 License Amendment

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of
  JHU-EXACT License Amendment

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Form of
  Bill of Sale

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Form of
  Assignment and Assumption Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Form of
  Assignment of Patent Rights

  

 

SCHEDULES

 

	
  Schedule
  A

  	
   

  	
  Primary
  Patent Rights

  
	
   

  	
   

  	
   

  
	
  Schedule
  B

  	
   

  	
  Secondary
  Patent Rights

  
	
   

  	
   

  	
   

  
	
  Schedule
  2.1(a)(ii)

  	
   

  	
  Assigned
  Contracts

  
	
   

  	
   

  	
   

  
	
  Schedule
  2.1(b)(vii)

  	
   

  	
  Retained
  Patent Rights

  
	
   

  	
   

  	
   

  
	
  Schedule
  3.1(b)

  	
   

  	
  Rights
  of Third Parties

  
	
   

  	
   

  	
   

  
	
  Schedule
  3.2(b)

  	
   

  	
  EXACT
  Licensed Improvements

  
	
   

  	
   

  	
   

  
	
  Schedule
  3.3(b)

  	
   

  	
  Optioned
  Technology

  
	
   

  	
   

  	
   

  
	
  Schedule
  3.4(c)

  	
   

  	
  Genzyme
  Licensed Improvements

  
	
   

  	
   

  	
   

  
	
  Schedule
  6.4

  	
   

  	
  Noncontravention
  (EXACT)

  
	
   

  	
   

  	
   

  
	
  Schedule
  6.7

  	
   

  	
  Assets

  
	
   

  	
   

  	
   

  
	
  Schedule
  6.8

  	
   

  	
  Intellectual
  Property

  
	
   

  	
   

  	
   

  
	
  Schedule
  6.11

  	
   

  	
  Contracts

  
	
   

  	
   

  	
   

  
	
  Schedule
  6.12

  	
   

  	
  Litigation;
  Governmental Orders

  

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

v

 

AGREEMENT

 

THIS COLLABORATION, LICENSE and PURCHASE AGREEMENT
(this “Agreement”), dated as of January 27, 2009 (the “Effective
Date”), is by and between Genzyme Corporation, a Massachusetts corporation
(“Genzyme”) and EXACT Sciences Corporation, a Delaware corporation (“EXACT”).

 

RECITALS

 

A.      EXACT is
engaged in the development of proprietary DNA-based technologies, which have
applicability in multiple fields. 
Genzyme desires to purchase all of EXACT’s right, title and interest in
and to certain assets, including certain intellectual property rights, and to
license from EXACT certain other intellectual property rights for use outside
of the EXACT Field (defined below).

 

B.       EXACT
desires to obtain from Genzyme, and Genzyme desires to grant to EXACT, an exclusive
license back under the intellectual property being transferred under this
Agreement for use in the EXACT Field.

 

C.       Genzyme
desires to obtain from EXACT, and EXACT desires to grant to Genzyme, an
exclusive option to obtain from EXACT an exclusive license under certain
additional EXACT technology in the Genzyme Core Field (defined below).

 

D.      Concurrently
with the execution of this Agreement, Genzyme and EXACT are entering into a
Common Stock Subscription Agreement, dated as of the Effective Date (the “Common
Stock Subscription Agreement”), pursuant to which, among other things,
Genzyme agrees to buy and EXACT agrees to sell up to 3,000,000 shares of EXACT’s
common stock, par value $0.01 per share.

 

In consideration of the mutual representations, warranties
and covenants contained in this Agreement, the parties hereto agree as follows:

 

Article
1      Definitions.  Capitalized terms used in this Agreement have
the meanings set forth in this Agreement. 
In addition, for purposes of this Agreement, the following terms, when
used in this Agreement, have the meanings assigned to them in this Article 1.

 

“Action”
means any claim, action, cause of action, chose in action or suit (whether in
contract or tort or otherwise), litigation (whether at law or in equity, whether
civil or criminal), controversy, assessment, arbitration, examination, audit,
investigation, hearing, charge, complaint, demand, notice or proceeding to,
from, by or before any Governmental Authority or arbitrator.

 

“Additional
EXACT Technology” means all Intellectual Property Rights (other than
Transferred Technology, EXACT Licensed Improvements or Joint Collaboration
Technology) that are Controlled by EXACT or its Affiliates [********] with applicability in the Genzyme Core
Field; provided, however,  that

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

 

“Additional EXACT
Technology” excludes Intellectual Property Rights owned or Controlled as a
result of or subsequent to a Change of Control of EXACT.

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or
indirectly, through one or more intermediaries controls, is controlled by, or
is under common control with, such Person. 
For purposes of this definition, “control” means the possession, direct
or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities or
general partnership or managing member interests, by contract or
otherwise.  Without limiting the
generality of the foregoing, a Person will be deemed to control any other
Person in which it owns, directly or indirectly, a majority of the ownership
interests.

 

“Ancillary
Agreements” has the meaning set forth in Section 5.2(a).

 

“APC/p53
License” means the License Agreement, dated as of March 25, 1999, by
and between EXACT and Genzyme.

 

“APC/p53 License
Amendment” means the waiver by Genzyme and amendment and restatement of the
APC/p53 License, effective as of the Closing Date, to be executed and delivered
by EXACT and Genzyme at the Closing, substantially in the form attached hereto
as Exhibit A.

 

“Assigned
Contracts” has the meaning set forth in Section 2.1(a)(ii).

 

“Assignment and
Assumption Agreement” has the meaning set forth in Section 5.2(a)(ii).

 

“Assumed
Liabilities” has the meaning set forth in Section 2.3(a).

 

“Bankruptcy
Code” has the meaning set forth in Section 3.8.

 

[********]

 

“Change of
Control” means, with respect to a party, (a) a sale of all or
substantially all of such party’s assets, voting stock, securities, or
business; (b) a merger, reorganization, or consolidation involving such
party in which the stockholders of such party immediately prior to such
transaction cease to own collectively (either directly or through one or more
intermediate entities) a majority of the voting equity securities of a
successor entity; or (c) the acquisition by a Person or group of Persons
acting in concert of 50% or more of the voting equity securities of such party.

 

“Closing”
has the meaning set forth in Section 5.1.

 

“Closing Date”
has the meaning set forth in Section 5.1.

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

2

 

“Closing
Payment” means $18,500,000, payable, subject to the Holdback set forth in Article 15,
at the Closing.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

“Collaboration
Period” means the period of time beginning on the Closing Date and ending,
if at all, on the effective date of termination of such period by a party
pursuant to Section 4.3.

 

“Committee”
has the meaning set forth in Section 4.1.

 

“Common Stock
Subscription Agreement” has the meaning set forth in Recital D.

 

“Confidential
Information” of a party means all Know-How or other information, including
proprietary information and materials (whether or not patentable), regarding
such party’s or its Affiliate’s technology, products, business information, or
objectives, that is communicated in any way or form by the Disclosing Party to
the Receiving Party, and whether or not designated as confidential by the
Disclosing Party at the time any such Know-How or other information is
disclosed by the Disclosing Party to the Receiving Party.

 

“Consideration”
has the meaning set forth in Section 2.2.

 

“Control or
Controlled” means, with respect to any item or right, the possession
(whether by ownership or license, other than pursuant to this Agreement) by a
party of the ability to grant to the other party access or a license as
provided in this Agreement under such item or right without violating the terms
of any agreement or other arrangements with any Third Party.

 

“Cross License
Agreement” means the Cross License and Collaboration Agreement, dated as of
April 1, 2003, by and between EXACT and Genzyme.

 

[********]

 

“Disclosed
Contract” has the meaning set forth in Section 6.11(b).

 

“Disclosing
Party” has the meaning set forth in Section 13.1.

 

“Dispute”
has the meaning set forth in Section 16.12(a).

 

“EXACT Field”
means (a) stool-based detection of any disease or condition (including
pre-cancers, staging and monitoring of the foregoing, and therapeutic response)
for research and development, Clinical Laboratory Improvement Amendments (CLIA)
testing services (and their foreign equivalents), and FDA Kits; and (b) a
screening assay (regardless of other uses to which such assay is put) for
colorectal cancer in any type of patient samples, excluding tests solely for
staging and/or monitoring of colorectal cancer which do not obsolete or
adversely impact such screening assay. 
For

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

3

 

the avoidance of
doubt, without limitation, the EXACT Field includes (i) the rights
pertaining to stool-based colorectal cancer screening tests for which EXACT has
granted a nonexclusive license to [********], (ii) the rights pertaining
to colorectal cancer screening tests and test kits for which EXACT has granted
a nonexclusive license to [********], and (iii) all applications for which
EXACT has granted to [********] a license as of the Effective Date pursuant to
the [********].

 

“EXACT
Indemnitee” has the meaning set forth in Section 14.2(a).

 

“EXACT Licensed
Improvements” means all improvements or enhancements to, or derivatives of,
the Transferred Technology discovered, conceived, created, made or invented (as
applicable) by or on behalf of EXACT [********] that the parties agree have applicability in the
Genzyme Field after consultation as provided in Section 3.2(b); provided,
however,  that “EXACT
Licensed Improvements” excludes (a) Joint Collaboration Technology, (b) Intellectual
Property Rights acquired or in-licensed from a Third Party after the Closing
Date and (c) Intellectual Property Rights owned or Controlled as a result
of or subsequent to Change of Control of EXACT. 
For clarity, a Patent Right that is first filed after a Change of
Control but claims priority (direct or indirect, in whole or in part) to a
Patent Right that was subject to the license granted by EXACT to Genzyme under Section 3.2(a) prior
to a Change of Control will be an “EXACT Licensed Improvement” hereunder.

 

“FDA Kits”
means a collection of one or more reagents, packaged in the form of a kit that
has received approval from the U.S. Food and Drug Administration (FDA) or any
equivalent foreign regulatory agency or body.

 

“Genzyme Core
Field” means reproductive and prenatal health [********]

 

“Genzyme Field”
means all applications other than the EXACT Field.

 

“Genzyme
Indemnitee” has the meaning set forth in Section 14.1(a).

 

“Genzyme
Licensed Improvements” means all improvements or enhancements to, or
derivatives of, the Transferred Technology discovered, conceived, created, made
or invented (as applicable) by or on behalf of Genzyme [********] that the parties agree have
applicability in the EXACT Field after consultation as provided in Section 3.4(c);
provided, however,  that
“Genzyme Licensed Improvements” excludes (a) Joint Collaboration
Technology, (b) Intellectual Property Rights acquired or in-licensed from
a Third Party after the Closing Date and (c) Intellectual Property Rights
owned or Controlled as a result of or subsequent to Change of Control of
Genzyme.  For clarity, a Patent Right
that is first filed after a Change of Control but claims priority (direct or
indirect, in whole or in part) to a Patent Right that 

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

4

 

was subject to the
license granted by Genzyme to EXACT pursuant to Section 3.4(b) prior
to a Change of Control will be a “Genzyme Licensed Improvement” hereunder.

 

“Genzyme Third
Party Payment” has the meaning set forth in Section 11.2(a).

 

“Governmental
Authority” means any government or any agency, bureau, board, commission,
court, department, political subdivision, tribunal or other instrumentality of
any government (including any regulatory or administrative agency), whether
federal, state or local, domestic or foreign.

 

“Holdback
Indemnity Cap” has the meaning set forth in Section 14.1(b).

 

“Indemnifying
Party” means, with respect to any claim for indemnification pursuant to Article 14,
the party against whom such claim is asserted under Section 14.1 or 14.2,
as the case may be.

 

“Indemnitee”
means, with respect to any claim for indemnification pursuant to Article 14,
the Genzyme Indemnitee or the EXACT Indemnitee asserting such claim under Section 14.1
or 14.2, as the case may be.

 

“Indemnity
Basket” has the meaning set forth in Section 14.1(b).

 

“Infringement
Claim” has the meaning set forth in Section 12.4(a).

 

“Intellectual
Property Rights” means all intangible proprietary rights of any kind or
nature throughout the world, including the following (and all statutory and/or
common law rights in, arising out of, or associated therewith): (i) all
Patent Rights; (ii) all works of authorship, copyrights, mask works,
copyright and mask work registrations and applications, copyrightable subject
matter whether or not registration for any such copyright exists or is pending,
and all other copyright interests accruing by reason of international copyright
conventions pertaining thereto (“Copyrights”); (iii) all Know-How;
and (iv) all databases and data collections.

 

“JHU” means
The Johns Hopkins University, a Maryland corporation.

 

“JHU-EXACT
License Amendment” means the Assignment, Sublicense, Consent and Eighth
Amendment to License Agreement among EXACT, JHU and Genzyme, dated as of the
Closing Date, to be executed and delivered by EXACT, JHU and Genzyme prior to
the Closing, substantially in the form attached hereto as Exhibit B.

 

“Joint
Collaboration Technology” means all Know-How, Patent Rights and Copyrights
that are discovered, conceived, created, made or invented (as applicable) [********] jointly by (a) employees or agents
of EXACT and (b) employees or agents of Genzyme or any of its Affiliates.

 

“Joint Patent
Rights” means all Patent Rights included within the Joint Collaboration
Technology.

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

5

 

“Know-How”
means all inventions, discoveries, data, information, processes, methods,
correspondence, techniques, trade secrets, materials, technology, concepts,
ideas, algorithms, standards, methods, compositions, formulae, procedures,
results and other know-how, whether or not patentable or copyrightable.

 

[********]

 

[********] means
all Technology licensed by EXACT to [********] pursuant to the [********].  The parties understand and agree that the
Patent Rights that are included in both the Transferred Technology and the
[********] as of the Effective Date are only those Patent Rights set forth on Schedule
6.8(a)(i).

 

“Losses”
has the meaning set forth in Section 14.1(a).

 

“Material
Adverse Effect” means any material adverse effect on the Purchased Assets,
on the parties’ ability to consummate the transactions contemplated by this
Agreement or on the parties’ ability to perform their obligations under this
Agreement.

 

“Maximum
Indemnity Cap” has the meaning set forth in Section 14.1(b).

 

“Need-to-Know”
has the meaning set forth in Section 13.2.

 

“Option”
has the meaning set forth in Section 3.3(a).

 

“Option
Exercise Notice” has the meaning set forth in Section 3.3(b).

 

“Optioned
Technology” means Additional EXACT Technology for which Genzyme has
exercised the Option pursuant to Section 3.3.

 

“Patent Rights”
means all (i) issued patents; (ii) pending patent applications and rights
to file applications, including all provisional applications, substitutions,
continuations, continuations-in-part, divisions, re-examinations, national
phase PCT applications, PCT international applications and all foreign
counterparts; (iii) patents-of-addition, reissues, renewals, revivals,
reexamination certificates and extensions and restorations by existing or
future extension or restoration mechanisms, including supplementary protection
certificates and the equivalent thereof; (iv) inventor’s certificates; and
(v) forms of government-issued rights substantially similar to any of the
foregoing, in each case throughout the world.

 

“Person”
means any individual or legal entity.

 

“Potential
Liabilities Holdback Amount” means an amount equal to the Holdback
Indemnity Cap, payable by Genzyme to EXACT as set forth in Article 15.

 

“Primary Goals”
has the meaning set forth in Section 4.1.

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

6

 

“Primary
Intellectual Property Rights” means the Primary Patent Rights and other Transferred
Technology chiefly related to the Primary Patent Rights, but not any Secondary
Patent Rights.

 

“Primary Patent
Rights” means (a) those Patent Rights within the Transferred
Technology listed on Schedule A, and (b) all Patent Rights
first filed after the Effective Date that claim priority (direct or indirect,
in whole or in part) to any Patent Right identified in clause (a) above.

 

“Purchased
Assets” has the meaning set forth in Section 2.1(a).

 

“Receiving
Party” has the meaning set forth in Section 13.1.

 

“Representatives”
has the meaning set forth in Section 13.2.

 

“Requesting
Party” has the meaning set forth in Section 12.2(d).

 

“Retained Assets” has the meaning set forth in Section 2.1(b).

 

“Retained
Liabilities” has the meaning set forth in Section 2.3(b).

 

“Retained
Patent Rights” means any Patent Right owned by EXACT as of the Closing Date
that is included in the Retained Assets. 
The parties understand and agree that if EXACT jointly owns any such
Patent Right, such Patent Right is included only with respect to EXACT’s joint
ownership interest therein.  For clarity,
(i) the Retained Patent Rights include all Patent Rights first filed after
the Effective Date that claim priority (direct or indirect, in whole or in
part) to any Patent Right included within the Retained Assets as of the
Effective Date and (ii) the Retained Patent Rights include those Patent
Rights listed on Schedule 2.1(b)(vii).

 

“Royalty”
has the meaning set forth in Section 11.1(a).

 

“Sale” has
the meaning set forth in Section 2.1(a).

 

“Secondary Patent Rights” means (a) those
Patent Rights within the Transferred Technology listed on Schedule B,
and (b) all Patent Rights first filed after the Effective Date that claim
priority (direct or indirect, in whole or in part) to any Patent Right
identified in clause (a) above.

 

“Supporting
Materials” means (i) all research and development reports and records,
pre-clinical studies, clinical protocols, clinical studies, pre-clinical and
clinical data, results and analyses used in or resulting from any pre-clinical
study or clinical trial relating to use of the Transferred Technology in the
Genzyme Field; (ii) all files, correspondence, records and other
documentation relating to the Transferred Technology, including all invention
disclosures and assignments of inventions related to the Transferred
Technology; (iii) all records and other documents relating to the use of
the Transferred Technology in the Genzyme Field.

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

7

 

“Technology”
means the Transferred Technology, the Genzyme Licensed Improvements, the EXACT
Licensed Improvements, the Joint Collaboration Technology, the Optioned
Technology and the Retained Patent Rights.

 

“Third Party”
means any Person other than Genzyme, EXACT, or their respective Affiliates.

 

“Third Party
Claim” has the meaning set forth in Section 14.4(a).

 

“Transactions”
means: (i) the Sale, (ii) the licenses and other rights granted
pursuant to Article 3 and the related research and development
collaboration in Article 4, (iii) the APC/p53 License Amendment and (iv) the
JHU-EXACT License Amendment.

 

“Transferred
In-License Agreement” means the Amended and Restated License Agreement,
having a final signature date of March 25, 2003, as further amended
pursuant to a Second Amendment dated as of November 9, 2004, a Third
Amendment dated as of May 11, 2006, a Fourth Amendment dated as of March 19,
2007, a Fifth Amendment dated as of October 17, 2008, a Sixth Amendment
dated as of October 30, 2008 and a Seventh Amendment dated as of December 15,
2008, by and between JHU and EXACT.  The
term “Transferred In-License Agreement” also includes, when effective, the
JHU-EXACT License Amendment.

 

“Transferred
In-Licensed Technology” means the Intellectual Property Rights licensed to
EXACT by JHU under the Transferred In-License Agreement.  The Patent Rights included in the Transferred
In-Licensed Technology as of the Effective Date are set forth on Schedule
6.8(a)(iii).

 

“Transferred Technology” means (a) all
Intellectual Property Rights with applicability in the Genzyme Core Field owned
by EXACT as of the Closing Date and (b) the Transferred In-Licensed
Technology.  The parties understand and
agree that the Patent Rights included in the Transferred Technology are only
those set forth on Schedule 6.8(a)(i) and Schedule 6.8(a)(ii) (including
those included by way of clause (ii) below), and any Retained Patent
Rights of EXACT that are later determined to have applicability in the Genzyme
Core Field after the Closing Date will not become Transferred Technology hereunder
but instead will remain “Retained Patent Rights” hereunder.  For clarity, (i) Transferred Technology
may have applicability in fields other than the Genzyme Core Field, but each
item of Transferred Technology has some applicability in the Genzyme Core
Field; (ii) the Transferred Technology includes all Patent Rights first
filed after the Effective Date that claim priority (direct or indirect, in
whole or in part) to any Patent Right included within the Transferred
Technology as of the Effective Date and (iii) no Patent Rights set forth
on Schedule 2.1(b)(vii) or identified in Section 2.1(b)(vii) are
included within the definition of Transferred Technology.

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

8

 

Article 2   Sale and Purchase.

 

2.1                Purchased
Assets.

 

(a)      At
the Closing, subject to the conditions of this Agreement, EXACT will sell,
convey, assign, transfer and deliver to Genzyme, and Genzyme will purchase from
EXACT, all of EXACT’s rights, title and interests in and to the following
assets (collectively, the “Purchased Assets”):

 

(i)       the
Transferred Technology, including all Actions and rights to sue at law or in
equity for any past or future infringement or other impairment of any of the
Transferred Technology and the right to receive all proceeds and damages
therefrom;

 

(ii)      all
of EXACT’s rights under the Transferred In-License Agreement and all contracts
and licenses listed on Schedule 2.1(a)(ii) (the “Assigned
Contracts”);

 

(iii)     all
Supporting Materials;

 

(iv)     all
of EXACT’s rights under any confidentiality agreement relating to any of the
Purchased Assets; and

 

(v)      all
claims of EXACT against Third Parties relating to any Purchased Assets, whether
choate or inchoate, known or unknown, contingent or otherwise.

 

Notwithstanding any other
provision of this Agreement, the transfer of the Purchased Assets pursuant to
this Agreement (the “Sale”) will not include the assumption of any
liabilities except those Genzyme expressly assumes pursuant to Section 2.3.

 

(b)      All
assets of EXACT other than the Purchased Assets (collectively, the “Retained
Assets”) are not part of the Sale, and are not being transferred to Genzyme
pursuant to this Agreement.  For the
avoidance of doubt, the Retained Assets include, but are not limited to:

 

(i)       all
of EXACT’s cash, cash equivalents and short-term investments;

 

(ii)      all
minute books, stock records and corporate seals of EXACT;

 

(iii)     all
real property assets, including leasehold rights, of EXACT;

 

(iv)     all
of EXACT’s plant and equipment;

 

(v)      all
of EXACT’s rights under contracts other than the Assigned Contracts;

 

(vi)     all
of EXACT’s personnel records; and

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

9

 

(vii)    all
Intellectual Property Rights owned or in-licensed by EXACT that are not
included in the Transferred Technology, including the Patent Rights listed on Schedule
2.1(b)(vii) (plus all Patent Rights first filed after the Effective
Date that claim priority (direct or indirect, in whole or in part) to any such
Patent Rights).

 

2.2                Consideration.  The consideration for the Purchased Assets
(the “Consideration”) will be (i) the Closing Payment, (ii) the
assumption of the Assumed Liabilities, (iii) the waiver pursuant to the
APC/p53 License Amendment and (iv) the obligation to pay the Royalty
during the Royalty Period.

 

2.3                Assumed
and Retained Liabilities.

 

(a)      Assumed
Liabilities.  On the Closing Date,
Genzyme will assume and agree to discharge all liabilities arising after the
Closing under the Assigned Contracts (other than any liability arising out of
or relating to a breach that occurred prior to or upon the Closing) (the “Assumed
Liabilities”).

 

(b)      Retained
Liabilities.  All other liabilities
of EXACT (the “Retained Liabilities”) will remain the sole
responsibility of and will be retained, paid, performed and discharged solely
by EXACT.  Retained Liabilities will
include:

 

(i)       any
liability under any Assigned Contract that arises after the Closing but that
arises out of or relates to a breach that occurred prior to or upon the
Closing;

 

(ii)      any
liability for taxes, including (A) any taxes arising as a result of EXACT’s
operation of its business or EXACT’s ownership of the Purchased Assets or
otherwise arising from or with respect to the Purchased Assets, in each case
for any taxable period or portion thereof ending on or prior to the Closing
Date, (B) any taxes that will arise as a result of the sale of the
Purchased Assets pursuant to this Agreement, and (C) any deferred taxes of
any nature;

 

(iii)     any
liability under any contract, agreement or understanding not included in the
Assigned Contracts, including any amounts owed to any law firm, attorney,
consultant or financial advisor;

 

(iv)     any
liability relating to the operation of EXACT’s business (other than liabilities
arising after the Closing under any of the Assigned Contracts that do not arise
out of or relate to a breach that occurred prior to or upon the Closing) or
EXACT’s leasing, ownership or operation of real property;

 

(v)      any
liability to any current or former employee, director or agent of EXACT or any
of its Affiliates, including under any employee benefit plan or relating to
payroll, vacation, sick leave, workers’ compensation, unemployment benefits,
pension benefits, employee stock option or profit-sharing plans, health care
plans or benefits or any other employee plans or benefits of any kind for EXACT’s
employees or former employees or both;

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

10

 

(vi)     any
liability of EXACT arising out of or resulting from EXACT’s compliance or
non-compliance with any legal requirement or order of any governmental entity;
and

 

(vii)    any
liability of EXACT with respect to this Agreement or any other document
executed in connection with the Transactions.

 

Article 3   Licenses and Other Rights.

 

3.1                License
to Genzyme under Retained Patent Rights.

 

(a)      Effective
at the time of, and contingent upon the occurrence of, the Closing, EXACT
hereby grants to Genzyme an (i) irrevocable, perpetual, exclusive (even as
to EXACT), worldwide, fully-paid, royalty-free license, with the right to
sublicense through multiple tiers (subject to Section 3.5) under the
Retained Patent Rights to make, have made, use, sell, offer for sale, import
and export products, to offer for sale and perform services and to otherwise practice
and exploit the Retained Patent Rights, in each case solely in the Genzyme Core
Field, and (ii) irrevocable, perpetual, nonexclusive, worldwide,
fully-paid, royalty-free license, with the right to sublicense through multiple
tiers (subject to Section 3.5) under the Retained Patent Rights to make,
have made, use, sell, offer for sale, import and export products, to offer for
sale and perform services and to otherwise practice and exploit the Retained
Patent Rights, in each case solely in the Genzyme Field other than the Genzyme
Core Field; provided that any sublicense of the license set forth in
this clause (ii) will only be made [********].

 

(b)      Genzyme
understands and agrees that Genzyme’s license and other rights hereunder to the
Retained Patent Rights (including under Article 12) are subject to the
rights of Third Parties under the agreements listed on Schedule 3.1(b).

 

3.2                License
to Genzyme under EXACT Licensed Improvements and Joint Collaboration Technology.

 

(a)      Subject
to the terms and conditions of this Agreement, effective at the time of, and
contingent upon the occurrence of, the Closing, EXACT hereby grants to Genzyme
a perpetual (subject to Section 3.7(b)), exclusive (even as to EXACT),
worldwide, fully-paid, royalty-free license, with the right to sublicense
through multiple tiers (subject to Section 3.5), under the EXACT Licensed
Improvements and the Joint Collaboration Technology to make, have made, use,
sell, offer for sale, import and export products, to offer for sale and perform
services and to otherwise practice and exploit the EXACT Licensed Improvements
and Joint Collaboration Technology, in each case solely in the Genzyme Field.

 

(b)      EXACT
will disclose to Genzyme any potential EXACT Licensed Improvement in writing in
reasonable detail promptly after such improvement has been discovered,

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

11

 

conceived,
created, made or invented that EXACT reasonably believes would have potential
application in the Genzyme Field.  If the
parties agree that such improvement has applicability in the Genzyme Field and
therefore constitutes an EXACT Licensed Improvement, the parties will add a
general description of such improvement to Schedule 3.2(b) and such
improvement will be become an EXACT Licensed Improvement for the purposes of
this Agreement.

 

3.3                Option
to License Additional EXACT Technology.

 

(a)      Effective
at the time of, and contingent upon the occurrence of, the Closing, EXACT
hereby grants Genzyme an exclusive option (the “Option”) to obtain an
exclusive license to Additional EXACT Technology in the Genzyme Core Field,
subject to the terms and conditions of this Section 3.3.

 

(b)      EXACT
will disclose to Genzyme any Additional EXACT Technology in writing in
reasonable detail promptly after such technology has been discovered,
conceived, created, made, invented or acquired. 
If the Additional EXACT Technology is in-licensed by EXACT from a Third
Party, then, if applicable, such disclosure will include any license fee or royalty
payment that EXACT would be required to pay such Third Party as a result of
EXACT’s granting to Genzyme a sublicense under such Additional EXACT Technology
in the Genzyme Core Field and a copy of the license agreement between EXACT and
such Third Party.  If Genzyme wishes to
exercise the Option with respect to such disclosed Additional EXACT Technology,
Genzyme will provide EXACT with written notice (the “Option Exercise Notice”)
within [********] of receipt of EXACT’s disclosure.  Upon delivery of the Option Exercise Notice,
Genzyme will add a general description of such Additional EXACT Technology to Schedule
3.3(b), and such technology will be become Optioned Technology ([********]
to Genzyme, other than pursuant to Section 11.2) for the purposes of this
Agreement.  If Genzyme does not deliver
an Option Exercise Notice within such [********] period, then Genzyme’s Option
will automatically expire with respect to the disclosed item of Additional
EXACT Technology and EXACT may sell, assign, license or otherwise transfer such
item of Additional EXACT Technology in the Genzyme Core Field to any Third
Party without any further obligation or liability to Genzyme.  If Genzyme takes a sublicense to Optioned
Technology in-licensed by EXACT, then Genzyme’s sublicense to that Optioned
Technology will be subject to Genzyme’s timely payment of the Genzyme Third
Party Payment as provided in Section 11.2 and Genzyme’s compliance with
the terms of the in-license agreement applicable to Genzyme as a sublicensee
thereunder.

 

(c)      Subject
to the terms and conditions of this Agreement, effective at the time of, and
contingent upon the occurrence of, the Closing, EXACT hereby grants to Genzyme
a perpetual (subject to Section 3.7(b)), exclusive (even as to EXACT),
worldwide, fully-paid, royalty-free (except as provided in Section 11.2(a))
license or sublicense (as the case may be), with the right to sublicense
through multiple tiers (subject to Section 3.5), under the Optioned
Technology to make, have made, use, sell, offer for sale, import and export
products, to offer for sale and perform services and to

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

12

 

otherwise practice
and exploit the Optioned Technology, in each case solely in the Genzyme Core
Field.

 

3.4                License
to EXACT under Transferred Technology, Genzyme Licensed Improvements and Joint
Collaboration Technology.

 

(a)      Effective
at the time of, and contingent upon the occurrence of, the Closing, Genzyme
hereby grants to EXACT an irrevocable, perpetual, exclusive (even as to
Genzyme), worldwide, fully-paid, royalty-free license, with the right to
sublicense through multiple tiers (subject to Section 3.5), under the
Transferred Technology other than the Transferred In-Licensed Technology to
make, have made, use, sell, offer for sale, import and export products, to
offer for sale and perform services and otherwise to practice and exploit the
Transferred Technology other than the Transferred In-Licensed Technology, in
each case solely in the EXACT Field.

 

(b)      Subject
to the terms and conditions of this Agreement, effective at the time of, and
contingent upon the occurrence of, the Closing, Genzyme hereby grants to EXACT
a perpetual (subject to Section 3.7(a)), exclusive (even as to Genzyme),
worldwide, fully-paid, royalty-free license, with the right to sublicense
through multiple tiers (subject to Section 3.5), under the Genzyme
Licensed Improvements and the Joint Collaboration Technology to make, have
made, use, sell, offer for sale, import and export products, to offer for sale
and perform services and to otherwise practice and exploit the Genzyme Licensed
Improvements and Joint Collaboration Technology, in each case solely in the
EXACT Field.

 

(c)      Genzyme
will disclose to EXACT any potential Genzyme Licensed Improvement in writing in
reasonable detail promptly after such improvement has been discovered,
conceived, created, made or invented that Genzyme reasonably believes would
have potential application in the EXACT Field. 
If the parties agree that such improvement has applicability in the
EXACT Field and therefore constitutes a Genzyme Licensed Improvement, the
parties will add a general description of such improvement to Schedule 3.4(c) and
such improvement will be become a Genzyme Licensed improvement for the purposes
of this Agreement.

 

(d)      For
the avoidance of doubt, the licenses granted to EXACT pursuant to Section 3.4
do not include a sublicense to any rights under the Transferred In-License
Agreement.  Such rights are covered by,
and subject to, the JHU-EXACT License Amendment.

 

3.5                Sublicensing.  Each party may grant sublicenses (including
multiple tier sublicenses) under the licenses granted pursuant to Sections
3.1(a), 3.2(a), 3.3(c), 3.4(a) or 3.4(b) [********] (subject to the
provisions of any agreement pursuant to which EXACT licenses an item of
Optioned Technology from a Third Party); provided  that the party
granting such sublicense will be fully responsible for the performance of its
sublicenses.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

13

 

3.6                Use
of Technology.  Neither party will
practice or grant any rights under Technology owned or Controlled by the other
party except as expressly licensed under this Agreement.

 

3.7                Termination
of License Rights.

 

(a)      Termination
by Genzyme.  Genzyme may terminate
the license granted to EXACT pursuant to Section 3.4(b) at any time
by giving written notice to EXACT in the event that EXACT commits a material
breach of its obligations under this Agreement and such breach remains uncured
for 90 days, measured from the date written notice of such breach is given to
EXACT.  If there is a bona fide good
faith dispute between the parties as to whether a material breach has occurred,
whether such breach has been cured or the amount to be indemnified, the 90 day
cure period will be tolled pending resolution of such dispute.  Notwithstanding the foregoing, if all
monetary damages of Genzyme arising from any such uncured, material breach by
EXACT are satisfied by the indemnity provisions of Article 14 and Genzyme
does not have any material non-monetary damages related thereto, then Genzyme
will not have the right to terminate the license under Section 3.4(b) on
the basis of such breach.

 

(b)      Termination
by EXACT.  EXACT may terminate the
licenses and Option granted to Genzyme pursuant to Section 3.2(a) or Section 3.3
at any time by giving written notice to Genzyme in the event that Genzyme
commits a material breach of its obligations under this Agreement and such
breach remains uncured for 90 days, measured from the date written notice of
such breach is given to Genzyme.  If
there is a bona fide good faith dispute between the parties as to whether a
material breach has occurred, whether such breach has been cured or the amount
to be indemnified, the 90 day cure period will be tolled pending resolution of
such dispute.  Notwithstanding the
foregoing, if all monetary damages of EXACT arising from any such uncured,
material breach by Genzyme are satisfied by the indemnity provisions of Article 14
and EXACT does not have any material non-monetary damages related thereto, then
EXACT will not have the right to terminate any such licenses or Option on the
basis of such breach.

 

(c)      Survival
of Sublicenses.  If either party
terminates a license granted under this Agreement pursuant to Section 3.7,
and, on the effective date of such termination, (i) a sublicense under
such terminated license as permitted by Section 3.5 is in effect and (ii) the
applicable sublicensee is in good standing under the sublicense agreement
between such sublicensee and the non-terminating party; then the terminating
party will grant to such sublicensee a direct license on substantially the same
terms as such sublicensee had as a sublicensee of the non-terminating party, so
that the sublicensee will be put in the same position as it was prior to the
termination of such license grant, provided, however, that the
terminating party will not have any increased obligations as a result of such
direct license to such sublicensee.

 

3.8                Rights
in Bankruptcy.  All rights and
licenses now or hereafter granted under or pursuant to Sections 3.1, 3.2, 3.3 and
3.4 of this Agreement are rights to “intellectual

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

14

 

property” (as defined in Section 101(35A)
of Title 11 of the United States Code (the “Bankruptcy Code”)).  Each party hereby grants to other party and
all Affiliates of such other party a right of access and to obtain possession
of, and to benefit from copies of, (a) research data and results and (b) tangible
Technology, all of which ((a) and (b)) constitute “embodiments” of
intellectual property pursuant to Section 365(n) of the Bankruptcy
Code, and (c) all other embodiments of such intellectual property, in each
case, solely in connection with the other party’s rights under this Agreement,
whether any of the foregoing are in the granting party’s possession or control
or in the possession and control of Third Parties.  Each party agrees not to interfere with the
other party’s and the other party’s Affiliates’ exercise of rights and licenses
to intellectual property licensed hereunder and embodiments thereof in accordance
with this Agreement and agrees to use reasonable efforts to assist such other
party and its Affiliates to obtain such intellectual property and embodiments
thereof in the possession or control of Third Parties as reasonably necessary
or desirable for such other party and Affiliates to exercise such rights and
licenses in accordance with this Agreement. 
The parties acknowledge and agree that all payments payable under this
Agreement, other than (i) the Royalty payable by Genzyme in connection
with the sublicensing of Retained Patent Rights or (ii) any Genzyme Third
Party Payment payable by Genzyme, do not constitute “royalties” within
the meaning of Bankruptcy Code Section 365(n) or relate to licenses
of intellectual property hereunder.

 

Article 4   Collaboration.

 

4.1                Joint
Advisory Committee.  Promptly after
the Closing Date, Genzyme and EXACT will establish a joint advisory committee
(the “Committee”) to assist both parties in the achievement of product
development and regulatory goals within their relevant fields (collectively,
the “Primary Goals”).  The Primary
Goals include (i) [********], (ii) [********] and (iii) [********].  Through the Committee, the parties will share
expertise, guidance, plans, clinical plans, protocols and/or strategies.  By way of example only, [********].  The Committee will exist until the
termination of the Collaboration Period unless the parties otherwise agree in
writing.

 

4.2                Committee
Meetings and Activities.  Each party
will designate a Committee contact person, who will facilitate and make
available 2 or more representatives of such party for participation in
Committee meetings or other activities from time to time, which representatives
will be scientific, technical development and/or FDA regulatory advisors or
employees of such party with expertise suitable to the particular Committee
activity.  During the Collaboration
Period, the Committee will meet at least bi-monthly, in person or via
teleconference.  Each party will be
solely responsible for compensation of such party’s employees, advisors and
Committee representatives who participate in Committee meetings or activities,
and each party will be solely responsible for expenses incurred by its
employees, advisors and Committee representatives in attending or otherwise
participating in Committee meetings and activities.  The Committee will not have any authority to
bind either party to any action or to amend or modify this Agreement.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

15

 

4.3                Termination
of the Collaboration Period.

 

(a)      Either
party may terminate the Collaboration Period immediately upon [********] by
providing written notice to the other party within [********] following [********].

 

(b)      Any
time after the 5th anniversary of the Closing Date, either party may terminate
the Collaboration Period [********] upon [********] advance written notice to
the other party.

 

Article 5   Closing.

 

5.1                Closing.  The consummation of the Transactions (the “Closing”)
will take place at the offices of Genzyme’s counsel at Ropes & Gray
LLP, One International Place, Boston, Massachusetts, commencing at 10:00 a.m.
(Boston time) on the business day on which the last of the conditions required
to be satisfied or waived pursuant to Article 9 and Article 10 of
this Agreement is either satisfied or waived (other than conditions which by
their nature are to be satisfied or waived at the Closing and are expected to
be satisfied at the Closing) (the “Closing Date”), or at such other
place or time as the parties may mutually agree.

 

5.2                Deliverables.  In addition to any other documents to be
delivered under other provisions of this Agreement, at the Closing:

 

(a)      EXACT
will deliver to Genzyme the following documents (collectively referred to in
this Agreement as the “Ancillary Agreements”):

 

(i)       a
bill of sale for all of the Purchased Assets that are tangible personal
property, executed by EXACT, substantially in the form attached hereto as Exhibit C;

 

(ii)      an
assignment of all of the Purchased Assets that are intangible personal
property, which assignment will also contain Genzyme’s undertaking and
assumption of the Assumed Liabilities (the “Assignment and Assumption
Agreement”) executed by EXACT, substantially in the form attached hereto as
Exhibit D;

 

(iii)     an
assignment of all Patent Rights included in the Transferred Technology,
executed by EXACT, substantially in the form attached hereto as Exhibit E;

 

(iv)     the
APC/p53 License Amendment executed by EXACT;

 

(v)      the
JHU-EXACT License Amendment executed by EXACT and JHU;

 

(vi)     the
Common Stock Subscription Agreement executed by EXACT; and

 

(vii)    such
other deeds, bills of sale, assignments, certificates of title, agreements,
documents and other instruments of transfer and conveyance as may reasonably

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

16

 

be requested by Genzyme
as set forth in Section 8.4, each in form and substance satisfactory to
Genzyme and its legal counsel and executed by EXACT.

 

(b)      Genzyme
will deliver to EXACT, together with the Closing Payment, less the Potential
Liabilities Holdback Amount, by wire transfer of immediately available funds,
the following Ancillary Agreements:

 

(i)       the
Assignment and Assumption Agreement executed by Genzyme;

 

(ii)      the
APC/p53 License Amendment executed by Genzyme;

 

(iii)     the
JHU-EXACT License Amendment executed by Genzyme; and

 

(iv)     the
Common Stock Subscription Agreement executed by Genzyme.

 

5.3                Post-Closing.  Within 15 days of the Closing Date, EXACT
will notify all of its agents that hold files or other tangible material
included in the Purchased Assets, including any law firms holding files with
respect to Transferred Technology, that effective as of the Closing, Genzyme
will own such Purchased Assets, and EXACT will be responsible for any fees or
expenses associated with such notification or related actions in connection
with reflecting the transfer of ownership.

 

Article 6   Representations and Warranties of
EXACT.

 

In order to induce Genzyme to enter into and perform
this Agreement and to consummate the Transactions, EXACT hereby represents and
warrants to Genzyme as follows:

 

6.1                Organization.  EXACT is (a) duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization and (b) except where the failure to be so qualified or in
good standing would not be reasonably likely to have a Material Adverse Effect,
duly qualified to do business and in good standing in each jurisdiction in
which it owns or leases real property or is otherwise required to be so
qualified or in good standing.

 

6.2                Power
and Authorization.

 

(a)      The
execution, delivery and performance by EXACT of this Agreement and each
Ancillary Agreement and the consummation of each Transaction are within the
power and authority of EXACT and have been duly authorized by all necessary
action on the part of EXACT.  This
Agreement and each Ancillary Agreement (i) has been (or, in the case of
Ancillary Agreements to be entered into at or prior to the Closing, will be)
duly executed and delivered by EXACT and (ii) is (or, in the case of
Ancillary Agreements to be entered into at or prior to the Closing, will be) a
legal, valid and binding obligation of EXACT, enforceable against EXACT in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally and subject to general

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

17

 

principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

 

(b)      EXACT
has the full power and authority necessary to own and use its assets and carry
on its business.

 

6.3                Authorization
of Governmental Authorities.  No
action by (including any authorization, consent or approval), or in respect of,
or filing or declaration with, any Governmental Authority is required for, or
in connection with, the valid and lawful (i) authorization, execution,
delivery and performance by EXACT of this Agreement and each Ancillary
Agreement or (ii) consummation of each Transaction.

 

6.4                Noncontravention.  Neither the execution, delivery and
performance by EXACT of this Agreement or any Ancillary Agreement nor the
consummation of any Transaction will:

 

(a)      violate
any legal requirement applicable to EXACT;

 

(b)      result
in a breach or violation of, or default under, any obligation under any
contract, agreement or understanding;

 

(c)      except
as disclosed on Schedule 6.4(c), require any action by (including any
authorization, consent or approval) or in respect of (including notice to), any
party under any contract, agreement or understanding, including any consents
required to assign rights under the Assigned Contracts, to assign the
Transferred Technology or to grant the licenses set forth in Article 3;

 

(d)      result
in the creation or imposition of an encumbrance upon, or the forfeiture of, any
Purchased Assets; or

 

(e)      result
in a breach or violation of, or default under, EXACT’s certificate of
incorporation, by-laws or other organizational documents.

 

6.5                Absence
of Liabilities.  There are no
liabilities of EXACT or, to EXACT’s knowledge, any Third Party that may be
imposed on Genzyme due to consummation of the Transactions except for the
Assumed Liabilities.

 

6.6                Absence
of Certain Developments.  Since December 31,
2007, no event or circumstance has occurred which has had, or is reasonably
likely to have, a Material Adverse Effect.

 

6.7                Assets.

 

(a)      Except
as disclosed on Schedule 6.7(a), EXACT has sole and exclusive, good and
marketable title to, or, a sole and exclusive, enforceable right to use, all of
the Purchased Assets.  There are no liens
or encumbrances on any of the Purchased Assets. 
EXACT does not own any real property.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

18

 

 

(b)      Except as disclosed on Schedule
6.7(b), the Purchased Assets comprise all of the intangible assets, related
Supporting Materials and rights of every type and description (including all
Intellectual Property Rights) with applicability in the Genzyme Core Field that
are (i) owned by EXACT, (ii) licensed to EXACT with rights extending in
the Genzyme Core Field, or (iii) used by EXACT.

 

6.8                Intellectual
Property Rights.

 

(a)      Schedule 6.8(a)(i) identifies
all Patent Rights included in the Transferred Technology that are licensed by
EXACT to [********] under the [********], and EXACT has provided to Genzyme
true, correct and complete copies of all amendments to the [********] as of the
Effective Date.  Schedule 6.8(a)(ii) identifies
all Patent Rights included in the Transferred Technology that are not licensed
by EXACT to [********] pursuant to the [********].  For each Patent Right, Schedule 6.8(a)(i) and
Schedule 6.8(a)(ii) identifies the country, title, patent number
(if issued), application number, filing date, issue date, inventors and any
continuity relationship with respect to any other Patent Right (such as
continuation, continuation-in-part, divisional), and identification of those
Patent Rights included in the Transferred In-Licensed Technology.  Schedule 6.8(a)(iii) identifies
the Transferred In-License Agreement, including the identification and
description of the applicable Transferred Technology that is the subject of
such Transferred In-License Agreement, and any other contracts, agreements or
understandings that EXACT has entered into with Third Parties that grant such
Third Party rights with respect to, or that otherwise affect EXACT’s rights in,
the Transferred Technology.  True,
accurate and complete copies of all such registrations, applications,
contracts, agreements or understandings (a written summary if oral), in each
case, as amended, or otherwise modified and in effect, have been made available
to Genzyme as well as true, accurate and complete copies of all other written
documentation evidencing ownership and prosecution (if applicable) of such
item.

 

(b)      Except as disclosed on Schedule
6.8(b)(i), EXACT is the sole owner of all rights, title and interests in
and to the Transferred Technology. Except as disclosed on Schedule
6.8(b)(ii), none of the Transferred Technology is subject to any license to
any Third Party.

 

(c)      Neither EXACT nor any of its
Affiliates has granted to any Third Party any rights with respect to the
Transferred Technology in the Genzyme Field. 
Each of the Transferred In-License Agreement and the other contracts
with Third Parties required to be disclosed on Schedule 6.8(a) represents
the complete agreement and understanding between EXACT or its Affiliates and
the other respective party or parties thereto relating to the Transferred
Technology that is the subject of such contract.

 

(d)      Neither EXACT nor any of its
Affiliates has received any written (or to EXACT’s knowledge, oral) charge,
complaint, claim, demand or notice alleging any interference, infringement,
misappropriation or conflict with any Intellectual Property Rights of Third
Parties (including any written (or to EXACT’s knowledge, oral) claim that 

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

19

 

EXACT or any of
its Affiliates must license or refrain from using any Intellectual Property
Right).  Except as disclosed on Schedule
6.8(d), neither EXACT nor its Affiliates are obligated to indemnify any
Person against a charge of infringement of Intellectual Property Rights with
respect to use of the Transferred Technology.

 

(e)      Except as disclosed on Schedule
6.8(e)(i), all registered or issued Transferred Technology (as identified
on Schedule 6.8(a)) is subsisting and enforceable (or, in the case of
applications, is pending).  Except as
disclosed on Schedule 6.8(e)(ii), EXACT has taken all steps necessary to
maintain such registrations and diligently pursue the registration of such
applications, including the payment when due of all maintenance fees,
application and prosecution fees and annuities, the filing of all necessary
renewals, statements and certifications and the timely response to all office
actions, requests and other correspondence from Governmental Authorities in
connection therewith.  To EXACT’s
knowledge, EXACT and all individuals to whom the duty of candor and good faith
applies with respect to the Transferred Technology have complied with such
duty, including the duty to disclose to the United States Patent and Trademark
Office all information believed to be material to the patentability of the
Patent Rights included in the Transferred Technology.  Except as disclosed on Schedule 6.8(e)(ii),
EXACT is not aware of any colorable grounds for invalidating any issued Patent
Right within the Transferred Technology.

 

(f)       Except as disclosed on Schedule
6.8(f), there are no royalties or other payments payable by EXACT or its
Affiliates for the use of any Transferred Technology, including pursuant to the
Transferred In-License Agreement.  For
each royalty disclosed on Schedule 6.8(f), such schedule sets forth the
date on which such royalty will cease to be payable.

 

(g)      Except as disclosed on Schedule
6.8(g), all current and former employees, agents and consultants of EXACT
or its Affiliates who have contributed to the development of the Transferred
Technology in any way or who have had access to EXACT’s confidential and
proprietary information with respect to the Transferred Technology prior to the
Closing have entered into binding written agreements with EXACT whereby
(i) EXACT is entitled to all ownership rights in any Transferred
Technology prior to the Closing that the employee, agent or consultant may have
invented, discovered, originated, made or conceived while working for EXACT or
its Affiliates, and all such ownership rights are duly assigned to EXACT, and
(ii) the employee, agent or consultant agrees to hold and maintain in
confidence all confidential and proprietary information of EXACT.

 

(h)      Except as disclosed on Schedule
6.8(h), to EXACT’s knowledge, neither government funding nor government,
academic or non-profit research facilities were used in the development of any
Transferred Technology.  To the extent
that any of the Transferred Technology arose from work funded in whole or in
part by U.S. federal funding, to EXACT’s knowledge, all requirements necessary
to (i) vest the entire right, title and interest in EXACT or in the
licensor of such Transferred Technology and (ii) 

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

20

 

assign (and, as
applicable, license) such Transferred Technology to Genzyme pursuant to the
terms of this Agreement, have been satisfied.

 

6.9                Government
Authorizations and Registrations. 
EXACT has been duly granted all governmental authorizations and duly
filed all governmental registrations under all legal requirements for the
possession of the Purchased Assets and the use of those Purchased Assets as
used by EXACT.  Such authorizations and
registrations are valid, in good standing and in full force and effect, and
there are no proceedings pending or, to the knowledge of EXACT, threatened that
seek the revocation, cancellation, suspension or adverse modification to such
authorizations or registrations.  EXACT
is not in default or non-compliance under any such authorization or
registration.

 

6.10              Legal
Compliance.  EXACT is not in breach
or violation of, or default under:

 

(a)      its articles of
incorporation, by-laws and other organizational documents nor, to EXACT’s
knowledge, is there a basis which could constitute such a breach, violation or
default; or

 

(b)      any legal requirement that,
if breached or violated, would be reasonably likely to have a Material Adverse
Effect.

 

6.11              Contracts.

 

(a)      Except as disclosed on Schedule
6.11(a), EXACT is not bound by or a party to any contract, agreement or
understanding relating to or affecting the Purchased Assets.

 

(b)      To EXACT’s knowledge, each
Assigned Contract and each other contract, agreement or understanding required
to be disclosed on Schedule 6.8(a)(iii) or Schedule 6.11(a) (each,
a “Disclosed Contract”) is enforceable against each party to such
contract, and is in full force and effect, and, subject to obtaining any
necessary consents disclosed on Schedule 6.4(c), will continue to be so
enforceable and in full force and effect on identical terms following the
consummation of the Transactions. 
Complete and correct copies of the Disclosed Contracts (including all
amendments, supplements and waivers thereto) have been delivered to Genzyme.

 

(c)      EXACT has performed all of
its obligations under each Disclosed Contract and neither EXACT nor, to EXACT’s
knowledge, any other party to any Disclosed Contract, is (with or without the
lapse of time or the giving of notice, or both) in breach or violation of, or
default under, or has repudiated any provision of, any Disclosed Contract.  None of the other parties to the Disclosed
Contracts has given any notice to or made a claim against EXACT or its
Affiliates with respect to any breach or default under the Disclosed Contracts.

 

(d)      No officer, director,
employee or consultant of EXACT, or any Affiliate of EXACT, is a party to any
Disclosed Contract.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

21

 

6.12              Litigation;
Governmental Orders.

 

(a)      Except as disclosed on Schedule
6.12(a), there is no Action to which EXACT is a party (either as plaintiff
or defendant), or to which the Purchased Assets are subject, pending, or to
EXACT’s knowledge, threatened, that (i) challenges the legality, validity
or enforceability of the Transferred Technology or (ii) may affect EXACT’s
ownership of, or interest in, any of the Purchased Assets or the use or
exercise by EXACT or Genzyme of any of the Purchased Assets.  There is no Action to which EXACT is a party
(either as plaintiff or defendant), or to which the Purchased Assets are
subject, pending, or to EXACT’s knowledge, threatened, that in any manner challenges
or seeks the rescission of, or seeks to prevent, enjoin, alter or materially
delay the consummation of, or otherwise relates to, this Agreement or any of
the Transactions.  There is no Action
that EXACT presently intends to initiate.

 

(b)      No outstanding order, writ,
judgment, injunction, decree, stipulation, ruling, determination or award
entered by or with any Governmental Authority or arbitrator is currently in
effect or pending that is applicable to, or otherwise affects, EXACT or the
Purchased Assets (including any order that restricts EXACT from transferring
the Transferred Technology to Genzyme).

 

6.13              Insurance.  EXACT is insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
are prudent and customary for the business in which it engaged.  EXACT has no reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that would not be reasonably likely to have
a Material Adverse Effect.

 

6.14              No Brokers.  EXACT has no liability of any kind to, or is
subject to any claim of, any broker, finder or agent in connection with any of
the Transactions other than those that will be borne by EXACT, all of which
have been fully disclosed to Genzyme prior to the Effective Date.  For the avoidance of doubt, any payments due
to any investment bank retained by EXACT in connection with this Agreement or
any of the Transactions will be the sole responsibility of EXACT.

 

6.15              Solvency.

 

(a)      EXACT is not now insolvent
and will not be rendered insolvent by the Sale. 
As used in this Section 6.15, “insolvent” means that the sum of the
debts and other probable liabilities of EXACT exceeds the present fair saleable
value of EXACT’s assets, including the Purchased Assets.

 

(b)      Immediately after giving
effect to the consummation of the Sale: (i) EXACT will be able to pay its
liabilities as they become due in the usual course of its business;
(ii) EXACT will have assets (calculated at fair market value) that exceed
its liabilities; (iii) EXACT will not have unreasonably small capital with
which to conduct its present or proposed business; and (iv) taking into account
all pending and threatened litigation, 

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

22

 

final judgments
against EXACT in Actions for money damages are not reasonably anticipated to be
rendered at a time when, or in amounts such that, EXACT will be unable to satisfy
any such judgments promptly in accordance with their terms (taking into account
the maximum probable amount of such judgments in any such Actions and the
earliest reasonable time at which such judgments might be rendered) as well as
all other obligations of EXACT.  The cash
available to EXACT, after taking into account all other anticipated uses of the
cash, will be sufficient to pay all such debts and judgments promptly in
accordance with their terms.

 

6.16              Disclosure.  The representations and warranties contained
in this Agreement and in the documents, instruments, agreements and
certificates and all diligence material and information, furnished by EXACT and
EXACT’s representatives to Genzyme, do not contain and will not contain any
untrue statement of fact or omit to state any material fact necessary in order
to make the statements and information contained therein not misleading.

 

Article 7   Representations
and Warranties of Genzyme.

 

In order to induce EXACT to enter into and perform this Agreement and
to consummate the Transactions, Genzyme hereby represents and warrants to EXACT
as follows: 

 

7.1                Organization.  Genzyme is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization.

 

7.2                Power and Authorization.  The execution, delivery and performance by
Genzyme of this Agreement and each Ancillary Agreement and the consummation of
each Transaction are within the power and authority of Genzyme and have been
duly authorized by all necessary action on the part of Genzyme.  This Agreement and each Ancillary Agreement
(a) has been (or, in the case of Ancillary Agreements to be entered into
at or prior to the Closing, will be) duly executed and delivered by Genzyme and
(b) is (or, in the case of Ancillary Agreements to be entered into at or
prior to the Closing, will be) a legal, valid and binding obligation of
Genzyme, enforceable against Genzyme in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

7.3                Authorization
of Governmental Authorities.  Except
for actions and filings contemplated to be made by EXACT (in which Genzyme may
participate), no action by (including any authorization, consent or approval),
or in respect of, or filing or declaration with, any Governmental Authority is
required for, or in connection with, the valid and lawful
(a) authorization, execution, delivery and performance by Genzyme of this
Agreement and each Ancillary Agreement or (b) consummation of each
Transaction by Genzyme.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

23

 

7.4                Noncontravention.  Neither the execution, delivery and
performance by Genzyme of this Agreement or any Ancillary Agreement nor the
consummation of any Transaction will:

 

(a)      assuming the taking of any
action by (including any authorization, consent or approval) or in respect of,
or any filing with, any Governmental Authority, in each case, as contemplated
hereunder, violate any legal requirement applicable to Genzyme; or

 

(b)      result in a breach or
violation of, or default under, Genzyme’s articles of incorporation, by-laws or
other organizational documents.

 

7.5                No Brokers.  Genzyme has no liability of any kind to, or
is subject to any claim of, any broker, finder or agent in connection with any
of the Transactions for which EXACT will be liable.

 

Article 8   Covenants
and Agreements.

 

8.1                Expenses.  Except to the extent otherwise expressly set
forth in this Agreement, EXACT and Genzyme will bear their respective expenses
incurred in connection with the preparation, execution and performance of this
Agreement and the Transactions, including all fees and expenses of agents,
representatives, counsel and accountants.

 

8.2                Payment of
Liabilities.  Until [********] after
the Closing Date, EXACT will pay or otherwise satisfy in the ordinary course of
business all of its liabilities and obligations (other than those which may be
disputed in good faith and for which adequate reserves have been established).

 

8.3                Restrictions
on EXACT Dissolution and Distributions. 
Until [********] after the Closing Date, EXACT will not dissolve, or
make any distribution of the Closing Payment, until after the later to occur
of:

 

(a)      EXACT’s payment, or adequate
provision for the payment, in full of all taxes resulting from or payable in
connection with the rights and obligations under the Transactions; and

 

(b)      EXACT’s payment, or adequate
provision for the payment, in full of all of the current Retained Liabilities
and other current liabilities of EXACT under this Agreement.

 

8.4                Further
Assurances.

 

(a)      EXACT and Genzyme will
execute such deeds, bills of sale, assignments, certificates of title,
agreements, documents and other instruments of transfer and conveyance and take
such further actions as may be reasonably required or desirable to carry out
the provisions hereof and the Transactions.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

24

 

(b)      Without limiting the
generality of Section 8.4(a), EXACT agrees to use commercially reasonable
efforts to provide all further cooperation that Genzyme reasonably determines
is necessary to accomplish the complete transfer of the Transferred Technology
and Supporting Materials to Genzyme and to support Genzyme’s efforts to
establish, perfect, defend or enforce Genzyme’s rights in or to the Transferred
Technology, including (i) executing and delivering further assignments,
consents and releases and other commercially reasonable documentation,
(ii) providing good faith testimony by affidavit, declaration, deposition,
in-person or other means and (iii) assisting Genzyme with filing and
prosecution of patents and patent applications, interferences, oppositions,
other regulatory proceedings and litigation. 
EXACT will use commercially reasonable efforts to obtain the cooperation
of the individual inventors of any inventions disclosed in the Patent Rights
included in the Transferred Technology, including (A) obtaining signatures
of such inventors on any patent applications or other documentation reasonably
necessary to obtain patent protection for such inventions and
(B) procuring (at Genzyme’s expense) such inventors’ good faith testimony
by affidavit, declaration, deposition in-person or other means in support of
Genzyme’s efforts in establishing, perfecting, defending or enforcing Patent
Rights included in the Transferred Technology. 
To the extent EXACT cannot transfer and assign the Transferred
Technology, or any portion thereof, as of the Closing Date, then EXACT will
transfer and assign such Transferred Technology to Genzyme at its first
opportunity to do so and pending such transfer and assignment such Transferred
Technology will be deemed to be licensed to Genzyme to the same extent as EXACT
Licensed Improvements are licensed to Genzyme pursuant to Section 3.2(a), provided,
however that such license will be irrevocable.  To the extent Genzyme believes further documentation
of the transfer or assignment of the Patent Rights listed on Schedule
6.8(a)(i) and Schedule 6.8(a)(ii) is required and EXACT
has not, within 15 business days of being requested to do so in a writing sent
to the address for notices set forth in Section 16.1 (or such other
address provided in accordance with Section 16.1), executed and returned
to Genzyme the form of assignment reasonably requested by Genzyme, then EXACT
hereby irrevocably appoints Genzyme as its attorney in fact with the right, authority
and ability to execute and enter into such assignment on behalf of EXACT.  EXACT stipulates and agrees that such
appointment is a right coupled with an interest and will survive the
unavailability of EXACT at any future time. 
To the extent Genzyme believes further documentation of the transfer or
assignment of any Transferred Technology other than the Patent Rights listed on
Schedule 6.8(a)(i) and Schedule 6.8(a)(ii) is required,
Genzyme will send to the address for notices set forth in Section 16.1 (or
such other address provided in accordance with Section 16.1), a request
setting forth in reasonable detail the basis for Genzyme’s belief and a
description of such technology.  EXACT
will, within 10 business days of receipt of such request, either execute and
return to Genzyme the form of assignment reasonably requested by Genzyme or
respond to Genzyme in writing indicating that EXACT does not, in good faith,
believe that such form of assignment is consistent with this Agreement.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

25

 

(c)      EXACT will use commercially
reasonable efforts, both before and, to the extent applicable, after the
Closing, to obtain the consents identified in Schedule 6.4(c).  Nothing in this Agreement will require
Genzyme to sell, hold separate, license or otherwise dispose of or conduct its
business in a specified manner, or agree to sell, hold separate, license or
otherwise dispose of or conduct its business in a specified manner, or permit
the sale, holding separate, licensing or other disposition of, any assets of
Genzyme, whether as a condition to obtaining any approval from a Governmental
Authority or any other Person or for any other reason.  EXACT will further use commercially
reasonable efforts to notify each Person subject to a confidentiality agreement
that is included in the Purchased Assets that Genzyme has become the
beneficiary of such agreement as of the Closing.

 

(d)      Without limiting the
generality of Section 8.4(a), EXACT will use commercially reasonable
efforts to take all actions reasonably requested by Genzyme to transfer all the
Know-How included in the Transferred Technology to Genzyme on or as promptly as
possible following the Closing Date and, in any event, within 90 days of the
Closing Date.  Among other things, EXACT
will deliver to Genzyme copies of Know-How embodied in documentation or other
tangible medium, and, on a reasonable number of occasions during the 12 months
following the Closing Date, technically qualified personnel employed or engaged
by EXACT will meet or participate in telephone conference calls with
representatives of Genzyme to transfer knowledge necessary to fully transfer to
Genzyme all the Know-How included in the Transferred Technology that is not
embodied in a tangible medium.

 

(e)      Effective at the time of,
and contingent upon the occurrence of, the Closing, EXACT hereby releases,
discharges and covenants not to assert against Genzyme or Genzyme’s Affiliates,
current licensees or representatives, all claims, causes and rights of action,
whether now existing or hereinafter arising and whether known or unknown,
arising from any use or exploitation of the Retained Patent Rights (but not
with respect to licensees) or the Transferred Technology in the Genzyme Field
prior to the Closing Date; provided, however, that EXACT does not release or covenant
not to assert any claim, cause or right of action arising under this Agreement,
the APC/p53 License, the Transferred In-License Agreement or any other
Ancillary Agreement.  The foregoing
release is subject to EXACT’s obligations under [********].

 

Article 9   Conditions
Precedent to the Obligations of Genzyme to Consummate the Sale.

 

The obligations of Genzyme to consummate the Transactions are subject
to the fulfillment of the following conditions, any one or more of which may be
waived by Genzyme:

 

9.1                Representations
and Warranties.  The representations
and warranties made by EXACT in this Agreement will have been accurate as of
the Effective Date and will be accurate as of the Closing Date as if made on
and as of the Closing Date.  EXACT will
have delivered to Genzyme a certificate signed by an authorized officer of
EXACT, dated as of the Closing Date, to the foregoing effect.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

26

 

9.2                Corporate
Certificates.  EXACT will have delivered
a copy of (a) the certificate of incorporation of EXACT, as in effect on
the Closing Date, certified by the Delaware Secretary of State and (b) a
certificate, as of the most recent practicable date, of the Delaware Secretary
of State as to EXACT’s corporate good standing.

 

9.3                Secretary’s
Certificate.  EXACT will have
delivered a certificate of the Secretary of EXACT, dated as of the Closing
Date, certifying as to (a) the incumbency of officers of EXACT executing
documents executed and delivered in connection herewith, (b) a copy of the
by-laws of EXACT, as in effect on the Closing Date, and (c) a copy of the
resolutions of the Board of Directors of EXACT authorizing and approving the
Transactions.

 

9.4                Concurrent
Transactions.  The transactions
contemplated by the Common Stock Subscription Agreement, the APC/p53 License
Amendment, and the JHU-EXACT License Amendment will have been consummated on or
before the Closing Date.

 

9.5                Consents.  EXACT will have obtained the waivers or
consents, which will remain in full force and effect, required to be disclosed
on Schedule 6.4(c), such that the terms of any applicable agreements or
arrangements are unchanged by this Agreement and the Sale.

 

9.6                Opinion of
Counsel to EXACT.  Genzyme will have
received the favorable opinion, dated as of the Closing Date, of special
Delaware counsel to EXACT that: (a) no vote of the stockholders of EXACT
is required under Section 271 of the Delaware General Corporation Law to
approve the Transactions, and (b) this Agreement has been duly authorized,
executed and delivered by EXACT, and EXACT has the corporate power to execute
and deliver this Agreement and perform its obligations under this Agreement.

 

Article 10  Condition
Precedent to the Obligation of EXACT to Consummate the Sale.

 

The obligations of EXACT to consummate the Transactions are subject to
the fulfillment of the following conditions, any one or more of which may be
waived by EXACT:

 

10.1              Representations
and Warranties.  The representations
and warranties made by Genzyme in this Agreement will have been accurate as of
the Effective Date and will be accurate as of the Closing Date as if made on
and as of the Closing Date.  Genzyme will
have delivered to EXACT a certificate signed by an authorized officer of
Genzyme, dated as of the Closing Date, to the foregoing effect.

 

10.2              Secretary’s
Certificate.  Genzyme will have
delivered a certificate of the Secretary or Assistant Secretary of Genzyme,
dated as of the Closing Date, certifying as to (a) the incumbency of
officers of Genzyme executing documents executed and delivered in connection
herewith, (b) a copy of the by-laws of Genzyme, as in effect on the
Closing Date, and (c) a copy of the resolutions of the Board of Directors
of Genzyme authorizing and approving the Transactions.

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

27

 

10.3              Concurrent Transactions.  The transactions contemplated by the Common
Stock Subscription Agreement, the APC/p53 License Amendment, and the JHU-EXACT
License Amendment will have been consummated on or before the Closing Date.

 

Article 11   Payment.

 

11.1              Royalty for Licenses under
Transferred Technology and Retained Patent Rights Outside Genzyme Core Field.

 

(a)      From the Closing Date until the date of
expiration of the last to expire Patent Rights included within the Transferred
Technology (the “Royalty Period”), Genzyme will pay to EXACT, on a
calendar quarterly basis, [********] of any cash Genzyme receives by way of
licensee fee or other upfront consideration, milestone payments or royalty
payments, after deducting any payments by Genzyme to a Third Party with respect
thereto, from a Third Party in consideration for granting such Third Party a
license or sublicense under the Transferred Technology or Retained Patent
Rights (including, for clarity, the Transferred In-Licensed Technology) in any
field other than the EXACT Field or Genzyme Core Field (the “Royalty”).

 

(b)      During the Royalty Period, Genzyme will
use commercially reasonably efforts, consistent with its current business
practices regarding out-licensing of Intellectual Property Rights, to seek to
grant a license to one or more Third Parties with respect to the Transferred
Technology outside of the Genzyme Core Field and EXACT Field.  GENZYME MAKES NO REPRESENTATION OR WARRANTY,
EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY LICENSE ANY OF
THE TRANSFERRED TECHNOLOGY OR RETAINED PATENT RIGHTS TO THIRD PARTIES OUTSIDE
OF THE GENZYME CORE FIELD AND EXACT FIELD OR THAT ANY SUCH LICENSE TO A THIRD
PARTY WILL RESULT IN ANY PARTICULAR AMOUNT OF INCOME.

 

(c)      Other than the Consideration (which
includes the obligation to pay the Royalty during the Royalty Period), Genzyme
has no obligation to make any royalty or other payment to EXACT with respect to
Genzyme’s acquisition or licensing of any of the Transferred Technology or
Retained Patent Rights.  For the
avoidance of doubt, no royalty payment is payable by Genzyme under this Section 11.1
with respect to (i) licensing or sublicensing of Transferred Technology or
Retained Patent Rights by Genzyme in the Genzyme Core Field, or (ii) sublicensing
of EXACT Licensed Improvements or Optioned Technology by Genzyme in the Genzyme
Field.

 

(d)      Within 60 days after the end of each
calendar quarter (March 31st, June 30th, September 30th and December 31st)
during the Royalty Period, Genzyme will deliver to EXACT a report setting forth
for such quarter in reasonable detail the net income Genzyme received from
Third Parties with respect to licenses or sublicenses to the Transferred
Technology or Retained Patent Rights in any field other than the EXACT Field or
Genzyme Core Field, and the resulting Royalty due to EXACT pursuant to 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

28

 

Section 11.1(a).  Genzyme will remit to EXACT the total Royalty
due for such calendar quarter at the time such report is made.

 

11.2              Payment for Optioned Technology
In-Licensed From a Third Party.

 

(a)      If any Optioned Technology is in-licensed
by EXACT from a Third Party, during such time as the license from EXACT to
Genzyme pursuant to Section 3.3(c) is in effect and such Third Party
license to EXACT is in effect, Genzyme will [********] EXACT’s granting to
Genzyme a sublicense under such Optioned Technology in the Genzyme Core Field
pursuant to Section 3.3(c) (the “Genzyme Third Party Payment”);
provided, however, that  Genzyme
will pay no more than [********].  For
clarity, EXACT and not Genzyme will be solely responsible for [********].

 

(b)      Other than the Genzyme Third Party
Payment, Genzyme has no obligation to make any royalty or other payment to
EXACT with respect to the license provided to Genzyme pursuant to Section 3.3(c).

 

(c)      If a Genzyme Third Party Payment is
payable by Genzyme pursuant to Section 11.2(a), then within [********]
after Genzyme’s delivery of the applicable Option Exercise Notice, the parties
will agree in good faith in writing to commercially reasonable reporting
obligations and payment schedules with respect to such Genzyme Third Party
Payment and Genzyme will agree to comply with the terms of the particular
in-license agreement applicable to Genzyme as a sublicensee thereunder (with
the understanding that the parties will agree on the timing of the Genzyme
Third Party Payment so that EXACT will receive the Genzyme Third Party Payment
from Genzyme before EXACT is required to pay the applicable Third Party).

 

11.3              Payment Provisions Generally.  All amounts payable and calculations under
this Article 11 or Article 12 will be in United States dollars,
payable by wire transfer to the bank account designated below or such other
bank account designated in writing by the party to whom such payment is
due.  If a party fails to make any
payment due under this Article 11 or Article 12 within 30 days after
the relevant due date, interest will accrue at the annual rate of the sum of
[********], the interest being compounded on the last day of each calendar
quarter, provided, however, that in no event will the annual
interest rate exceed the maximum legal interest rate for corporations.

 

	
  (a)

  	
   

  	
  Wire Instructions for
  Genzyme Corporation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [********]

  

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

29

 

	
  (b)

  	
   

  	
  Wire Instructions for
  EXACT Sciences Corporation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [********]

  	
   

  

 

11.4              Maintenance of Records; Audit.  Each party will keep books and accounts of
record in connection with payments due pursuant to this Article 11 or Article 12
in sufficient detail to permit accurate determination of all figures necessary
for verification of such payments.  Each
party will maintain such records for a period of at least 3 years after the end
of the calendar year in which they were generated.  No more frequently than 2 times during any
calendar year, each party will have the right, upon 10 days’ advance notice, to
conduct or have its agent conduct an audit of such records of the other party,
during the other party’s normal business hours and in a manner as not to
unreasonably interfere with the other party’s normal business activities.  If such audit is conducted by a party’s
agent, such agent will execute and deliver to the party subject to the audit a
confidentiality agreement reasonably acceptable to such party.  During any such audit, the audited party will
(a) supply the auditing party or its agent with all the relevant records
in the audited party’s possession or under its control that the auditing party
or its agent may reasonably request and (b) instruct its employees to
cooperate with the review and answer fully all relevant inquiries from the
auditing party or its agent.  The
auditing party will bear the fees and expenses of such audit, provided
that if the audit reveals underpayment by the audited party by at least 5%,
such costs will be borne by the audited party. 
Any payment discrepancy identified as a result of an audit under this Section 11.4
will promptly be corrected by a payment or refund, as appropriate.

 

Article 12   Intellectual Property Matters.

 

12.1              Ownership.

 

(a)      Subject to the rights granted to EXACT
pursuant to this Agreement, as between Genzyme and EXACT, Genzyme will retain
ownership of all rights, title and interests in and to all Transferred
Technology and Genzyme Licensed Improvements.

 

(b)      Subject to the rights granted to Genzyme
pursuant to this Agreement, as between EXACT and Genzyme, EXACT will retain
ownership of all rights, title and interests in and to all EXACT Licensed
Improvements, Additional EXACT Technology (including Optioned Technology) and
Retained Patent Rights.

 

(c)      Inventorship and authorship for all
Know-How, Patent Rights and Copyrights that are discovered, conceived, created,
made or invented will be determined in accordance 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

30

 

with the
applicable United States rules, guidelines and laws of inventorship and
authorship.  With respect to Know-How and
Copyrights discovered, conceived, created, made or invented (as applicable)
jointly by the parties [********], each party hereby assigns to the other party
a joint interest in such joint Know-How and Copyrights.

 

(d)      All Joint Collaboration Technology will be
jointly owned by Genzyme and EXACT. 
Subject to the terms and conditions of this Agreement (including the
licenses granted herein), each party will have the right to practice and
license the Joint Collaboration Technology in its respective field (i.e., the
EXACT Field or Genzyme Field, as applicable) without the consent of the other
party (where consent is required by law, such consent is deemed hereby granted)
and without a duty of accounting to the other party, and each party will
confirm the foregoing in writing at the other party’s reasonable request.

 

12.2              Filing, Prosecution and
Maintenance of Patent Rights.

 

(a)      Primary Patent Rights.  The rights and obligations under this Section 12.2(a) will
be subject to the rights of JHU under the Transferred In-License Agreement, for
Patent Rights included within the Transferred In-Licensed Technology.  From and after Closing, Genzyme, through
counsel of its choosing and [********], will be responsible for and have
control over obtaining, prosecuting (including any interferences, reissue
proceedings, re-examinations and oppositions), and maintaining the Primary
Patent Rights, and EXACT will cooperate with Genzyme in regard thereto.  Genzyme will keep EXACT informed regarding
the prosecution and maintenance of the Primary Patent Rights as applicable to
the EXACT Field and give EXACT a reasonable opportunity to provide timely
comments for Genzyme’s consideration on draft filings and correspondence
relating to such prosecution or maintenance; provided that Genzyme will
make all final prosecution strategy decisions in its sole discretion after
taking into account in good faith EXACT’s comments thereon with respect to the
EXACT Field.  If Genzyme decides to
discontinue the preparation, filing, prosecution or maintenance of any Primary
Patent Right with applicability in the EXACT Field, Genzyme will notify EXACT
at least 60 days prior to any deadline that, if missed, would materially
prejudice the applicable Primary Patent Right. 
Upon receipt of such notice, EXACT will have the right to prepare, file,
prosecute and maintain such Primary Patent Right [********], and Genzyme will
cooperate with EXACT with respect thereto. 
In such event Genzyme will assign such Primary Patent Right to EXACT; provided
that Genzyme may regain its rights under such Primary Patent Right in the
Genzyme Field if Genzyme provides notice to EXACT of its desire to regain such rights,
EXACT has not granted conflicting rights to any Third Party and Genzyme
reimburses EXACT for [********] of EXACT’s out-of-pocket costs and expenses in
connection with the preparation, filing, prosecution and maintenance of such
Primary Patent Right (including reasonable attorneys’ fees).

 

(b)      Joint Patent Rights and Secondary
Patent Rights.  Genzyme will have
primary responsibility for the preparation, filing, prosecution and maintenance
of the Joint 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

31

 

Patent Rights (in
both Genzyme’s and EXACT’s name) and Secondary Patent Rights (in Genzyme’s
name), using patent counsel mutually agreed by the parties.  EXACT will use commercially reasonable
efforts to assist Genzyme in the preparation, filing, prosecution, and maintenance
of such Joint Patent Rights and Secondary Patent Rights.  Genzyme will consult with and keep EXACT
informed of important issues relating to the preparation, filing, prosecution
and maintenance of the Joint Patent Rights and Secondary Patent Rights and will
furnish EXACT with copies of documents relevant to such preparation, filing,
prosecution or maintenance in sufficient time prior to filing such document or
making any payment due thereunder to allow for review and comment by EXACT and,
to the extent possible in the reasonable exercise of its discretion after
taking into account in good faith EXACT’s comments with respect to the EXACT
Field, Genzyme will incorporate all such comments.  EXACT will reimburse Genzyme for [********]
of Genzyme’s costs and expenses in connection with the preparation, filing,
prosecution and maintenance of Joint Patent Rights (including reasonable
attorneys’ fees).  [********] will be
[********] responsible for the costs and expenses in connection with the
preparation, filing, prosecution and maintenance of Secondary Patent
Rights.  Neither party will make any
statements or omissions or take any other action during prosecution or
enforcement of any Joint Patent Right or Secondary Patent Right that admits or
concedes that any of the Joint Patent Rights or Secondary Patent Rights is
invalid or unenforceable, that adversely affects or limits the scope of any
claims in any such Joint Patent Right or Secondary Patent Right, or that
adversely affects the other party’s rights in Joint Patent Rights or Secondary
Patent Rights under this Agreement in any way, without the prior written
consent of the other party.  If Genzyme
decides to discontinue the preparation, filing, prosecution or maintenance of
any Joint Patent Right or Secondary Patent Right, Genzyme will notify EXACT at
least 60 days prior to any deadline that, if missed, would materially prejudice
the applicable Joint Patent Right or Secondary Patent Right.  Upon receipt of such notice, EXACT will have
the right to assume primary responsibility for preparing, filing, prosecuting
and maintaining such Joint Patent Right or Secondary Patent Right, as
applicable, [********], and Genzyme will cooperate with EXACT with respect
thereto.  In such event Genzyme will
assign such Joint Patent Right or Secondary Patent Right to EXACT; provided
that Genzyme may regain its rights under such Joint Patent Right and such
Secondary Patent Right in the Genzyme Field if Genzyme provides notice to EXACT
of its desire to regain such rights, EXACT has not granted conflicting rights
to any Third Party and Genzyme reimburses EXACT for, as applicable, (i) [********]
of EXACT’s out-of-pocket costs and expenses in connection with the preparation,
filing, prosecution and maintenance of such Joint Patent Right (including
reasonable attorneys’ fees) or (ii) [********] of EXACT’s out-of-pocket
costs and expenses in connection with the preparation, filing, prosecution and
maintenance of such Secondary Patent Right (including reasonable attorneys’
fees).  If (A) EXACT, upon 30 days’
prior written notice to Genzyme, elects not to pay its [********] share for any
Joint Patent Right or (B) EXACT otherwise fails to pay its [********]
share for any Joint Patent Right and Genzyme delivers 30 days’ prior written
notice to EXACT, EXACT will assign such Joint Patent Right to Genzyme; provided
that EXACT will remain responsible for its [********] share of 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

32

 

costs and expenses
incurred by Genzyme prior to the expiration of the 30 day notice period as
provided in part (A) or (B) above, as applicable; and provided
further that EXACT may regain its rights under such Joint Patent
Right in the EXACT Field if EXACT provides notice to Genzyme of its desire to
regain such rights, Genzyme has not granted conflicting rights to any Third
Party and EXACT reimburses Genzyme for [********] of Genzyme’s out-of-pocket
costs and expenses in connection with the preparation, filing, prosecution and
maintenance of such Joint Patent Right (including reasonable attorneys’ fees).

 

(c)      Other Technology.  Each party, through counsel of its choosing
and [********], will be responsible for and have control over obtaining,
prosecuting (including any interferences, reissue proceedings, re-examinations
and oppositions) and maintaining its respective Patent Rights that are included
within the Genzyme Licensed Improvements (in the case of Genzyme) or the EXACT
Licensed Improvements, Retained Patent Rights and Optioned Technology (in the
case of EXACT), and the other party will cooperate with the responsible party
in regard thereto.  Each party will keep
the other party informed regarding the prosecution and maintenance of such
Patent Rights as applicable to the other party’s exclusive field under this
Agreement and give the other party a reasonable opportunity to provide timely
comments for such party’s consideration on draft filings and correspondence
relating to such prosecution or maintenance; provided that the
responsible party will make all prosecution strategy decisions in its sole
discretion after taking into account in good faith the comments of the other
party with respect to such other party’s exclusive field under this Agreement.

 

(d)      Certain Additional Patent Rights.  With respect to any Patent Right exclusively
licensed to EXACT in the EXACT Field or to Genzyme in the Genzyme Field or
Genzyme Core Field (as applicable) hereunder, with a specification that could
support a claim with applicability in such field, the following will apply: to
the extent practicable, upon a licensee party’s request (the “Requesting
Party”), the party controlling the prosecution of such Patent Right
pursuant to Section 12.2(a), 12.2(b) or 12.2(c) will file a
continuation of such patent application with applicability solely in the
exclusive license field of the Requesting Party [********], at which point the
provisions of Section 12.2(c) will apply as if such continuation
were, in the case of Genzyme as the Requesting Party, a Genzyme Licensed
Improvement (e.g., Genzyme will have the right to control the prosecution and
maintenance of such continuation and EXACT will cooperate with regard thereto)
or, in the case of EXACT as the Requesting Party, an EXACT Licensed Improvement
(e.g., EXACT will have the right to control the prosecution and maintenance of
such continuation and Genzyme will cooperate with regard thereto), as
applicable; provided that the Requesting Party in prosecuting such
continuation will do so in the other party’s name.

 

(e)      Cooperation.  Each party hereby agrees:  (i) to make its employees, agents and
consultants reasonably available to the other party (or to the other party’s
authorized attorneys, agents or representatives) to the extent reasonably
necessary to enable such party to undertake prosecution of Patent Rights as contemplated
by this Agreement; (ii) 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

33

 

to cooperate, if
necessary and appropriate, with the other party in gaining patent term
extensions wherever applicable to Patent Rights that are subject to this
Agreement; and (iii) to use its commercially reasonable and diligent
efforts to minimize or avoid interference with the prosecution and maintenance
of the other party’s Patent Rights that are subject to this Agreement.  As part of the prosecution of any Primary
Patent Right or Secondary Patent Right, if a priority claim is made after the
Effective Date that would make such Patent Right a member of the other group
(i.e., a Primary Patent Right would also be a Secondary Patent Right, or
vice-versa), the treatment of such Patent Right as a Primary Patent Right or
Secondary Patent Right hereunder will not change from its original designation.

 

(f)       Expense Reports.  From time to time, [********] will deliver to
[********] a report setting forth in reasonable detail and providing reasonable
documentation of the costs and expenses in connection with the preparation,
filing, prosecution and maintenance of [********] and the reimbursement amount
due from [********] pursuant to this Section 12.2.  [********] will remit to [********] the total
reimbursement amount that is not the subject of a good faith dispute within 45
days after receipt of an invoice from [********].

 

12.3              Enforcement.

 

(a)      Notification.  EXACT will promptly report in writing to
Genzyme any known or suspected Third Party infringement, unauthorized use or
misappropriation of any Technology in any field and will provide Genzyme with
any available evidence in its possession supporting such infringement,
unauthorized use or misappropriation. 
During the [********] (as defined in the [********]), Genzyme will
promptly report in writing to EXACT any known or suspected Third Party
infringement, unauthorized use or misappropriation of any Technology in the
EXACT Field (or, with respect to the Optioned Technology or Retained Patent Rights,
in any field other than the Genzyme Core Field) and will provide EXACT with any
available evidence in its possession supporting such infringement, unauthorized
use or misappropriation.  From and after
the termination of the [********], Genzyme will promptly report in writing to
EXACT any known or suspected Third Party infringement, unauthorized use or
misappropriation of any Technology in any field and will provide EXACT with any
available evidence in its possession supporting such infringement, unauthorized
use or misappropriation. EXACT will notify Genzyme prior to delivering to
[********] any notice of alleged infringement or misappropriation of any
[********].

 

(b)      Enforcement of Technology.

 

(i)       Genzyme will have the [********], to take
any reasonable measures Genzyme deems appropriate to stop activities infringing
the Primary Intellectual Property Rights or Genzyme Licensed Improvements or
the use without proper authorization of any Primary Intellectual Property
Rights or Genzyme Licensed Improvements. 
Except as provided in Section 12.3(b)(ii) (with respect to
enforcement in the 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

34

 

EXACT Field), EXACT will
have no right to take any measures to stop any infringement or
unauthorized use of the Primary Intellectual Property Rights or Genzyme
Licensed Improvements (including initiating any Actions or delivering any form
of notification or warning to Third Parties).

 

(ii)      Promptly after either party’s becoming
aware of alleged infringement or misappropriation of the Primary Intellectual
Property Rights or Genzyme Licensed Improvements in the EXACT Field, the
parties will meet in good faith to discuss enforcement strategies.  After such consultation with EXACT, Genzyme
will determine, in its commercially reasonable discretion, how to proceed with
respect to such alleged infringement or misappropriation at such time; provided
that (I) Genzyme is under no obligation to terminate such infringement or
misappropriation and (II) Genzyme’s actions will be subject to the rights of
JHU under the Transferred In-License Agreement. 
If Genzyme does not commence actions reasonably designed to abate the
infringement or misappropriation within [********] of either party notifying
the other of such infringement or misappropriation, then, subject to the rights
of JHU under the Transferred In-License Agreement, EXACT may assume sole
responsibility, [********], to take any reasonable measures EXACT deems
appropriate to stop the alleged infringement or misappropriation in the EXACT
Field, provided, however, that EXACT will coordinate and consult
with Genzyme regarding such measures and, if requested by Genzyme, will not
take any measures that will materially adversely affect Genzyme’s rights in the
Primary Intellectual Property Rights or Genzyme Licensed Improvements in each
case in the Genzyme Field if such measures are not reasonably required to
protect EXACT’s business in the EXACT Field, with the understanding that
assertions of invalidity or unenforceability will not be sufficient reasons to
prevent EXACT from enforcing. 
Notwithstanding the foregoing in Sections 12.3(b)(i) and
12.3(b)(ii), if EXACT is required to enforce any [********].  In such event, EXACT will keep Genzyme fully
informed at all times with respect to all aspects of the enforcement of the
[********] and will take all actions in connection with such enforcement [********],
consistent with EXACT’s obligations under [********].  If EXACT does not so enforce, [********] may
have the right to enforce certain [********] during the [********] to the
extent permitted by [********].  In any
event, [********] will not [********] with respect to [********].

 

(iii)     As between the parties, each party will
have the sole and exclusive right (but not the obligation) to assume sole
responsibility, [********], to take any reasonable measures such party deems
appropriate to stop activities infringing any Secondary Patent Rights and other
Transferred Technology not including the Primary Intellectual Property Rights,
EXACT Licensed Improvements, Optioned Technology, Joint Collaboration
Technology or Retained Patent Rights or the use without proper authorization of
any Secondary Patent Rights and other 

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

35

 

Transferred Technology
not including the Primary Intellectual Property Rights, EXACT Licensed
Improvements, Optioned Technology, Joint Collaboration Technology or Retained
Patent Rights, in each case in such party’s exclusive field applicable to the
Intellectual Property Rights at issue (e.g., for Genzyme and Secondary Patent
Rights and other Transferred Technology not including the Primary Intellectual
Property Rights, in the Genzyme Field, and for EXACT and Secondary Patent
Rights and other Transferred Technology not including the Primary Intellectual
Property Rights, in the EXACT Field; or for Genzyme and Optioned Technology, in
the Genzyme Core Field, and for EXACT and Optioned Technology, in all other
fields; or for Genzyme and EXACT Licensed Improvements, in the Genzyme Field,
and for EXACT and EXACT Licensed Improvements, in the EXACT Field; or for
Genzyme and Retained Patent Rights, in the Genzyme Core Field, and for EXACT
and Retained Patent Rights in all other fields).  Neither party will have any right to
take any measures to stop any infringement or unauthorized use of any Secondary
Patent Rights and other Transferred Technology not including the Primary
Intellectual Property Rights, EXACT Licensed Improvements, Optioned Technology,
Joint Collaboration Technology or Retained Patent Rights outside its exclusive
field (by ownership or license) (including initiating any Actions or delivering
any form of notification or warning to Third Parties) without the prior written
consent of the other party.

 

(iv)     If either party desires to initiate any
Action as contemplated by Section 12.3(b)(iii), the parties will meet in
good faith to discuss enforcement strategies. 
After such consultation, the enforcing party will determine, in its
commercially reasonable discretion, how to proceed with respect to such alleged
infringement or misappropriation at such time; provided that (A) such
enforcing party is under no obligation to terminate such infringement or
misappropriation, and (B) such enforcing party will keep the other party
reasonably informed and will coordinate and consult with the other party
regarding such measures.

 

(c)      Cooperation.  In the event either party brings an
enforcement Action pursuant to Section 12.3(b), the other party will
cooperate reasonably at [********], including being joined as a party-plaintiff,
providing good faith testimony and executing all documents necessary for a
party to initiate an Action and to prosecute and maintain such Action.  The non-litigating party will have the right,
[********], to retain its own counsel to monitor such litigation.

 

(d)      Recoveries.  If a party obtains from a Third Party
infringer, in connection with an Action brought pursuant to Section 12.3(b),
any damages, license fees, royalties or other compensation (including any
amount received in settlement of such Action), then any amounts recovered will
first be applied to the reimbursement of both parties’ reasonable out-of-pocket
costs, expenses and legal fees, including amounts one party has reimbursed to
the other.  The remaining balance will be
allocated [********].

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

36

 

12.4              Claimed Infringement of Third
Party Intellectual Property Rights.

 

(a)      Notice.  In the event that a Third Party at any time
provides written notice of a claim to, or brings an Action against, either
party or any of such party’s respective Affiliates or licensees, claiming
infringement of its Patent Rights or unauthorized use or misappropriation of
its Know-How, based upon use of Technology (“Infringement Claim”), such
party will promptly notify the other party of the Infringement Claim or the
commencement of such Action, enclosing a copy of the Infringement Claim and all
papers served.  Each party agrees to make
reasonably available to the other party its advice and counsel regarding the
technical merits of any such claim and to offer reasonable assistance to the
other party.

 

(b)      Defense of Infringement Claims.

 

(i)       As between Genzyme and EXACT, Genzyme
will have the sole and exclusive right, but not the obligation, to control the
defense of any Infringement Claim brought against Genzyme or any of its
Affiliates or licensees arising out of (A) the use of Optioned Technology
in the Genzyme Core Field or (B) the use of all Technology other than the
Optioned Technology in the Genzyme Field. 
As between Genzyme and EXACT, EXACT will have the sole and exclusive
right, but not the obligation, to control the defense of any Infringement Claim
brought against EXACT or any of its licensees arising out of the use of
Technology in the EXACT Field or the use of Optioned Technology in any field
other than the Genzyme Core Field. 
Neither party will settle any such Action in a manner that (I) admits
the invalidity or unenforceability of any Technology or that any use of the
Technology in the other party’s field of exclusivity infringes or
misappropriates a Third Party’s Intellectual Property Rights or (II) agrees
to any injunction or other equitable remedy binding the other party without
obtaining the prior written consent of the other party, which consent will not
be unreasonably withheld or delayed.  In
addition, if applicable, prior to the initiation of an Infringement Claim,
either party has the right, but not the obligation, to bring a declaratory
judgment action relating to any Patent Right that a Third Party has alleged is
infringed by use of the Technology in such party’s exclusive field; provided,
however, no party will bring such declaratory judgment action without
first consulting with the other party.

 

(ii)      The party controlling the defense of an
Infringement Claim or bringing such declaratory judgment action will have the
sole and exclusive right to select counsel for any Infringement Claim.  The party controlling the defense of an
Infringement Claim or bringing such declaratory judgment action will keep the
other party informed, and will from time to time consult with the other party
regarding the status of any such Action and will upon request provide the other
party with copies of all documents filed in, and all written communications
relating to, any suit brought in connection with such Action.  The other party will also have the right to
participate and be represented in any such Action, [********].

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

37

 

(c)      Other
Infringement Resolutions; Declaratory Judgment Actions.  In the event of a dispute or potential
dispute that has not ripened into a demand or Action of the types described in Section
12.3 and Section 12.4 (e.g., actions seeking declaratory judgments and
revocation proceedings), the same principles governing control of the
resolution of the dispute, consent to settlements of the dispute and
implementation of the settlement of the dispute will apply.  Each party will immediately notify the other
party of any declaratory judgment action filed by a Third Party claiming that a
Patent Right included within the Technology is invalid or that infringement of
such Patent Right will not arise from the development, manufacture, use or sale
of any product by a Third Party.  The
provisions of Section 12.3 will thereafter apply as if such Third Party were an
infringer or suspected infringer.

 

12.5              Prosecution and
Enforcement of Other Intellectual Property Rights.  Other than as provided in this Article 12,
each party will be solely responsible for prosecuting, maintaining and
enforcing its Patent Rights and other Intellectual Property Rights, at its sole
discretion [********].

 

12.6              Cross License
Agreement.  Notwithstanding anything
to the contrary in the Cross License Agreement, the parties agree that after
the Closing Date, (a) Sections 5.4 and 5.7 of the Cross License Agreement will
not apply to any EXACT Patent Rights (as defined in the Cross License
Agreement) that are included in the Technology, and this Article 12 will govern
the rights and obligations of EXACT and Genzyme with respect to the prosecution
and enforcement of such EXACT Patent Rights and (b) to the extent that EXACT is
obligated to license EXACT Patent Rights included in the Transferred Technology
to Genzyme under the Cross License Agreement outside of the EXACT Field, such
field scope is no longer licensed by EXACT to Genzyme thereunder but rather
retained by Genzyme as the owner of such EXACT Patent Rights.

 

12.7              Termination of
Rights and Obligations Under Article 12. 
If either party terminates a license granted under this Agreement
pursuant to Section 3.7, then the terminating party will cease to have any
obligations under this Article 12, and the other party will cease to have any
rights under this Article 12, with respect to the Intellectual Property Rights
that were the subject of such terminated license.

 

Article 13   Confidentiality.

 

13.1              Confidentiality.  Except to the extent expressly authorized by
this Agreement or otherwise agreed by Genzyme and EXACT in writing, each party
(the “Receiving Party”) receiving any Confidential Information of the
other party (the “Disclosing Party”) will keep such Confidential
Information confidential and will not publish or otherwise disclose or use such
Confidential Information for any purpose other than as provided for in this
Agreement (including pursuant to licenses granted under Article 3).  The information included within the Purchased
Assets and Transferred Technology will be considered after the Closing Date the
Confidential Information of Genzyme for the purposes of this Agreement and
Genzyme will be considered the Disclosing Party with respect thereto.  Notwithstanding the

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

38

 

foregoing,
the Receiving Party will not have any obligation under this Section 13.1 with
respect to Confidential Information that the Receiving Party can establish:

 

(a)      was
already known by the Receiving Party (other than under an obligation of
confidentiality) at the time of disclosure by the Disclosing Party, and such
Receiving Party has contemporaneous documentary evidence to that effect
(provided that this exception will not relieve EXACT of its confidentiality
obligations with respect to the Purchased Assets and Transferred Technology);

 

(b)      was
available to the public or otherwise part of the public domain at the time of
its disclosure to the Receiving Party;

 

(c)      became
available to the public or otherwise part of the public domain after its
disclosure or development, as the case may be, and other than through any act
or omission of the Receiving Party in breach of a confidentiality obligation to
the Disclosing Party;

 

(d)      was
disclosed to the Receiving Party, other than under an obligation of
confidentiality, by a Third Party who had no obligation to the Disclosing Party
not to disclose such information to others; or

 

(e)      was
independently discovered or developed by or on behalf of the Receiving Party
without the use of the Confidential Information belonging to the other party,
and the Receiving Party has contemporaneous documentary evidence to that
effect.

 

13.2              Permitted
Disclosure.  The Receiving Party may
disclose the Disclosing Party’s Confidential Information only to (a) those of
its and its Affiliates’ directors, officers, employees, agents, consultants and
advisors (collectively, “Representatives”) who have a need to know such
Confidential Information for purposes of performing the Receiving Party’s
obligations or exercising the Receiving Party’s rights under this Agreement (a “Need-to-Know”)
and (b) those of its potential and actual licensees, sublicensees, acquirers,
lenders and investors who have a Need-to-Know or other legitimate business
purpose, provided, however, that each Person to whom the
Disclosing Party’s Confidential Information is disclosed is under restrictions
at least as stringent with respect to the use and disclosure of such
Confidential Information as set forth in this Agreement (or, if such
confidentiality obligations were in place prior to the Effective Date, on the
terms of such obligations).  Each party
will be liable for the breach of this Agreement by any of its Representatives
or its licensees or sublicensees.

 

13.3              Required
Disclosure.  Notwithstanding any
provision of this Article 13 to the contrary, in the event that disclosure of
the Disclosing Party’s Confidential Information is reasonably necessary to
prosecute or defend any Action or to make filings or submissions to, or
correspond with, any Governmental Authority or to comply with applicable law (including
the rules of and regulation of the Securities and Exchange Commission), the
Receiving Party may make such disclosure. 
In such event however, (a) the Receiving Party will (i) give reasonable
advance notice of such disclosure to the Disclosing Party,

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

39

 

(ii)
provide reasonable assistance to the Disclosing Party in seeking a protective
order or other similar order preventing or limiting the proposed disclosure, (iii)
take all reasonable measures to ensure confidential treatment of such
Confidential Information and (iv) consult with the Disclosing Party with regard
to the disclosure (including consultation with regard to the creation of a
redacted version of such Confidential Information) and (b) the Receiving Party
will disclose such Confidential Information only to the extent required by the
protective order or other similar order, if such an order is obtained, and, if
no such order is obtained, the Receiving Party will disclose only the minimum
amount of such Confidential Information required to be disclosed in order to
comply with applicable law.  Any
Confidential Information so disclosed will continue to be Confidential
Information for all purposes under this Agreement.

 

13.4              Public Statements.  The existence and terms of this Agreement
will be considered the Confidential Information of both parties.  Neither party will make public statements
regarding the existence, terms, or content of this Agreement without the prior
written consent of the other party, other than as required by law or the
applicable rules of a stock exchange. 
After the Effective Date, the parties may release a mutual announcement
regarding the signing of this Agreement in a form approved by both parties in
advance in writing, such approval not to be unreasonably withheld or delayed.

 

13.5              Mutual
Non-Disclosure Agreement.  All
information disclosed pursuant to the Mutual Non-Disclosure Agreement between
the parties dated as of April 9, 2008 will remain Confidential Information
under this Agreement; provided that each party may use such information
to the extent permitted by this Agreement.

 

Article 14   Indemnification.

 

14.1              Indemnification
by EXACT.

 

(a)      Indemnification.  Subject to the limitations set forth in this Article
14, EXACT will indemnify, hold harmless and defend Genzyme and its Affiliates,
and the Representatives and Affiliates of each of the foregoing Persons (each,
a “Genzyme Indemnitee”) from and against any and all Actions, losses,
liabilities, damages, costs, fees and expenses (including reasonable attorneys’
fees, disbursements and charges) (collectively, “Losses”) arising out of
or resulting from:

 

(i)       any breach of, or
inaccuracy in, any representation or warranty made by EXACT in this Agreement
or in any Ancillary Agreement referred to in clauses (i), (ii) or (iii) of Section
5.2(a);

 

(ii)      any breach or violation of
any covenant or agreement of EXACT (including under this Article 14) in or
pursuant to this or any Ancillary Agreement;

 

(iii)     any Third-Party claim
relating to a breach by EXACT of the Transferred In-License Agreement;

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

40

 

(iv)     any Retained Liability; or

 

(v)      any fraud or intentional
misrepresentation of EXACT.

 

(b)      Monetary
Limitations.  EXACT will have no
obligation to indemnify the Genzyme Indemnitees in respect of Losses arising
pursuant to Section 14.1(a)(i) unless the aggregate amount of all such Losses
incurred or suffered by the Genzyme Indemnitees exceeds $100,000 (at which
point EXACT will indemnify the Genzyme Indemnitees for all such Losses) (the “Indemnity
Basket”).  EXACT’s aggregate
liability in respect of claims for indemnification pursuant to this Article 14
in respect of Losses arising pursuant to Section 14.1(a)(i) will not exceed
$1,850,000 (the “Holdback Indemnity Cap”); provided, however,
that claims for indemnification pursuant to Section 14.1(a)(i) in respect of
breaches of, or inaccuracies in, any representation or warranty set forth in
the following Sections of this Agreement will not exceed the Closing Payment (the
“Maximum Indemnity Cap”): 6.7(a) or 6.8(b), each with respect to Patent
Rights within the Purchased Assets (and no other Purchased Assets); provided,
further, however, that claims for indemnification pursuant to Section
14.1(a)(i) in respect of breaches of, or inaccuracies in, any representation or
warranty set forth in Section 6.14 are not subject to either the Holdback
Indemnity Cap or the Maximum Indemnity Cap. 
In addition, EXACT’s aggregate liability in respect of claims for
indemnification pursuant to Section 14.1(a)(ii) with respect to breaches or
violations of any covenant or agreement set forth in Section 8.2 or 8.3 will
not exceed the Maximum Indemnity Cap. 
Claims for indemnification pursuant to any other provision of Section 14.1(a)
are not subject to the monetary limitations set forth in this Section 14.1(b).

 

14.2              Indemnification
by Genzyme.

 

(a)      Indemnification.  Subject to the limitations set forth in this Article
14, Genzyme will indemnify, hold harmless and defend EXACT and its Affiliates,
and the Representatives and Affiliates of each of the foregoing Persons (each,
an “EXACT Indemnitee”) from and against any and all Losses arising out
of or resulting from:

 

(i)       any breach of, or
inaccuracy in, any representation or warranty made by Genzyme in this Agreement
or in any Ancillary Agreement referred to in clauses (i), (ii) or (iii) of Section
5.2(a);

 

(ii)      any Third-Party claim
relating to a breach by Genzyme of the Transferred In-License Agreement after
the Closing Date;

 

(iii)     any breach or violation of
any covenant or agreement of Genzyme (including under this Article 14) in or
pursuant to this or any Ancillary Agreement;

 

(iv)     any Assumed Liability; or

 

(v)      any fraud or intentional
misrepresentation of Genzyme.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

41

 

(b)      Monetary
Limitations.  Genzyme will have no
obligation to indemnify the EXACT Indemnitees in respect of Losses arising
pursuant to Section 14.2(a)(i) unless the aggregate amount of all such Losses
incurred or suffered by the EXACT Indemnitees exceeds the Indemnity
Basket.  Genzyme’s aggregate liability in
respect of claims for indemnification pursuant to this Article 14 in respect of
Losses arising pursuant to Section 14.2(a)(i) will not exceed the Holdback
Indemnity Cap; provided, however, that claims for indemnification
pursuant to Section 14.2(a)(i) in respect of breaches of, or inaccuracies in,
any representation or warranty set forth in Section 7.5 are not subject to the
Holdback Indemnity Cap.  Claims for
indemnification pursuant to any other provision of Section 14.2(a) are not
subject to the monetary limitations set forth in this Section 14.2(b).

 

14.3              Time for Claims.  All representations and warranties set forth
in this Agreement will survive the Closing for the time period set forth below;
provided, however, that no claim may be made or suit instituted
seeking indemnification pursuant to Section 14.1(a)(i) or 14.2(a)(i) of this
Agreement for any breach of, or inaccuracy in, any representation or warranty
unless the claiming party provides notice as specified in Section 16.1 within
the following time periods:

 

(a)      at
any time prior to the conclusion of the applicable statute of limitations, in
the case of any breach of, or inaccuracy in, the representations and warranties
set forth in the following Sections: 6.2(a), 6.7(a), 6.8(b), 6.14, 6.15(a), 7.2
or 7.5;

 

(b)      at
any time prior to the conclusion of the day that is 18 months after the Closing
Date, in the case of any breach of, or inaccuracy in, any other representation
and warranty in this Agreement; and

 

(c)      at
any time, in the case of any claim or suit based upon fraud or intentional
misrepresentation.

 

Claims
for indemnification not specified with a time limitation in this Section 14.3
are not subject to the limitations set forth in this Section 14.3 and will be
governed by the applicable statute of limitations.  For avoidance of doubt, claims will be deemed
to have been made within the survival period if a reasonably complete
description of the claim based upon the facts available at the time is
presented by the party seeking indemnification to the Indemnifying Party within
the specified time period in this Agreement.

 

14.4              Procedure for
Third Party Claims.

 

(a)      Notice
of Claim.  If any Third Party
notifies an Indemnitee with respect to any matter (a “Third Party Claim”)
which is expected to give rise to a claim for indemnification against an
Indemnifying Party under this Article 14, then the Indemnitee will promptly
give written notice to the Indemnifying Party; provided, however,
that no delay on the part of the Indemnitee in notifying the Indemnifying Party
will relieve the Indemnifying Party from any obligation under this Article 14,
except to the extent such delay actually prejudices the Indemnifying Party.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

42

 

(b)      Assumption
of Defense, etc.  The Indemnifying
Party will be entitled to participate in the defense of any Third Party Claim
that is the subject of a notice given by the Indemnitee pursuant to Section 14.4(a).  In addition, the Indemnifying Party will have
the right to assume the defense of the Indemnitee against the Third Party Claim
with counsel of its choice reasonably satisfactory to the Indemnitee so long
as: (i) the Indemnifying Party gives written notice to the Indemnitee within 15
days after the Indemnitee has given notice of the Third Party Claim that the
Indemnifying Party will indemnify the Indemnitee from and against the entirety
of any and all Losses the Indemnitee may suffer resulting from, arising out of,
relating to, in the nature of, or caused by the Third Party Claim, (ii) the
Indemnifying Party provides the Indemnitee with evidence reasonably acceptable
to the Indemnitee that the Indemnifying Party will have adequate financial
resources to defend against the Third Party Claim and (subject to the
limitations of Sections 14.1(b) and 14.2(b)) fulfill its indemnification
obligations hereunder, (iii) the Third Party Claim involves only money damages
and does not seek an injunction or other equitable relief against the
Indemnitee, (iv) the Indemnitee has not been advised by counsel that an actual
or potential conflict exists between the Indemnitee and the Indemnifying Party
in connection with the defense of the Third Party Claim, (v) the Third Party
Claim does not relate to or otherwise arise in connection with any criminal or
regulatory enforcement Action and (vi) the Indemnifying Party conducts the
defense of the Third Party Claim actively and diligently.  The Indemnitee may retain separate co-counsel
at its sole cost and expense and participate in the defense of the Third Party
Claim; provided, however, that the Indemnifying Party will pay
the reasonable fees and expenses of separate co-counsel retained by the
Indemnitee that are incurred prior to Indemnifying Party’s assumption of control
of the defense of the Third Party Claim, except as provided in Section 14.4(d).  In connection with any Third Party Claim, the
Indemnitee will make available to the Indemnifying Party and counsel selected
by the Indemnifying Party personnel, witnesses, books, and records relevant to
such Third Party Claim.

 

(c)      Limitations
on Indemnifying Party.  The
Indemnifying Party will not consent to the entry of any judgment or enter into
any compromise or settlement with respect to the Third Party Claim without the
prior written consent of the Indemnitee (which consent will not be unreasonably
withheld or delayed) unless such judgment, compromise or settlement (i) provides
for the payment by the Indemnifying Party of money as sole relief for the
claimant (ii) results in the full and general release of the Genzyme Indemnitee
or EXACT Indemnitee, as applicable, from all liabilities arising or relating
to, or in connection with, the Third Party Claim, (iii) involves no finding or
admission of any violation in connection with any criminal or regulatory
enforcement Action, or the rights of any Person, and no effect on any other
claims that may be made against the Indemnitee and (iv) involves no issue with
respect to taxes.

 

(d)      Indemnitee’s
Control.  If the Indemnifying Party
does not deliver the notice contemplated by clause (i) of Section 14.4(b) within
15 days after the Indemnitee has given notice of the Third Party Claim, or
otherwise at any time fails to conduct the defense of the Third Party Claim
actively and diligently, the Indemnitee may assume

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

43

 

the defense of such claim and the Indemnifying Party
will be responsible for the reasonable attorneys’ fees and expenses of a single
counsel (in addition to one local counsel in each jurisdiction) for the
Indemnitees.  The Indemnitee will not
consent to the entry of any judgment or enter into any compromise or settlement
that does not exceed the Maximum Indemnity Cap with respect to the Third Party
Claim without the prior written consent of the Indemnifying Party (which
consent will not be unreasonably withheld or delayed).  In the event that the Indemnitee conducts the
defense of the Third Party Claim pursuant to this Section 14.4(d), the
Indemnifying Party will (a) advance the Indemnitee promptly and periodically
for the reasonable costs of defending against the Third Party Claim (including
reasonable attorneys’ fees and expenses) and (b) remain responsible for any and
all other Losses that the Indemnitee may incur or suffer resulting from,
arising out of, relating to, in the nature of or caused by the Third Party
Claim to the fullest extent provided in this Article 14.

 

14.5              Consent to
Jurisdiction Regarding Third Party Claims. 
Genzyme and EXACT, each in its capacity as an Indemnifying Party, hereby
consents to the non-exclusive jurisdiction of any court in which any Third
Party Claim may brought against any Indemnitee for purposes of any claim which
such Indemnitee may have against such Indemnifying Party pursuant to this
Agreement in connection with such Third Party Claim, and in furtherance
thereof, the provisions of Section 16.12 are incorporated herein by reference, mutatis mutandis.

 

14.6              Exclusive Remedy.  Except as set forth in Section 3.7 or in the
case of fraud or intentional misrepresentation, from and after the Closing, the
indemnification provided pursuant to this Article 14 will be the sole and
exclusive remedy hereto for any Loss resulting from, with respect to or arising
out of any breach or claim in connection with this Agreement, any Exhibit or
Schedule hereto or any certificate or writing delivered in connection with this
Agreement, regardless of the cause of action. 
Notwithstanding the foregoing, (a) nothing contained in this Agreement
will limit a party’s right to pursue equitable remedies, including, without
limitation, injunctive relief and specific performance; and (b) in the event
that a court of competent jurisdiction rescinds all or part of the Sale for any
reason following consummation, nothing contained in this Agreement will limit
Genzyme’s right to receive from EXACT (and EXACT’s obligation to transfer to
Genzyme) such portion of the Closing Payment allocable to the Purchased Assets
subject to such rescission; provided, however, if such court
rescinds only part of the Sale, Genzyme, at its sole option to be exercised
within 30 days of such rescission, may elect to receive the entire Closing
Payment from EXACT and transfer all of the Purchased Assets to EXACT.

 

Article 15   Potential Liabilities Holdback.  At the Closing, the Potential Liabilities
Holdback Amount will be retained by Genzyme to be released in accordance with
the following:

 

15.1              Use of Holdback
Amount.  The Potential Liabilities
Holdback Amount will accrue interest at the rate of [********] from the Closing
Date until released to EXACT.  Following
Closing, if any of the Genzyme Indemnitees becomes entitled to indemnification
pursuant to this Agreement, Genzyme will apply that portion of the Potential
Liabilities Holdback Amount as will be equal to the amount of such
indemnification.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

44

 

15.2              12 Month Release.  Upon the expiration of 12 months after the
Closing Date, 50% of the Potential Liabilities Holdback Amount (plus any and
all interest accrued thereon) will be released to EXACT; provided that
if any claim for indemnification on the part of any of the Genzyme Indemnitees
is outstanding on such date, then the amount of such claim will be retained
from the portion to be released to EXACT.

 

15.3              18 Month Release.  Upon the expiration of 18 months after the
Closing Date, the remaining Potential Liabilities Holdback Amount (plus any and
all interest accrued thereon) will be released to EXACT; provided that
if any claim for indemnification on the part of any of the Genzyme Indemnitees
is outstanding on such date, then the amount of such claim will be retained
from the portion to be released to EXACT.

 

15.4              Outstanding
Claims.  If any claim for
indemnification on the part of Genzyme remains outstanding upon the expiration
of the 12 month and 18 month periods in Section 15.2 and Section 15.3,
respectively, then, unless otherwise agreed by the parties, Genzyme will
release to EXACT an amount equal to the entire Potential Liabilities Holdback
Amount then remaining minus the amount
attributable to such outstanding claim. 
The remaining Potential Liabilities Holdback Amount following such
release will continue to be held by Genzyme and, upon resolution of the
outstanding claims and payment of any indemnification owing to the applicable
Genzyme Indemnitees, any portion of the Potential Liabilities Holdback Amount
then remaining (plus any and all interest accrued thereon) will be released to
EXACT.

 

Article 16   Miscellaneous.

 

16.1              Notices.  Any notice or other communication required or
permitted hereunder will be in writing and will be deemed given when so
delivered in person, by reputable overnight courier, by facsimile transmission
(with receipt confirmed by automatic transmission report) or two business days
after being sent by registered or certified mail (postage prepaid, return
receipt requested), as follows:

 

(a)      if
to Genzyme, to:

 

Genzyme
Genetics

1700
West Park Drive

Westborough,
Massachusetts 01581

	
  Attn:

  	
  Sr. Vice
  President & General Manager

  
	
  Fax:

  	
  (508) 870-7504

  
	
  Phone:

  	
  (508) 870-5232

  

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

45

 

with a
copy to:

 

Genzyme
Corporation

500
Kendall Street

Cambridge,
Massachusetts 02142

	
  Attn:

  	
  General Counsel

  
	
  Fax:

  	
  (617) 252-7553

  
	
  Phone:

  	
  (617) 252-7500

  

 

(b)      if
to EXACT, to:

 

EXACT
Sciences Corporation

100 Campus Drive

Marlborough, Massachusetts 01752

	
  Attn:

  	
  Chief Executive
  Officer

  
	
  Fax:

  	
  (508) 683-1201

  
	
  Phone:

  	
  (508) 683-1200

  

 

with a
copy to:

 

Goodwin|Procter
LLP

53
State Street

Boston,
Massachusetts 02109

	
  Attn:

  	
  Edward A. King,
  Esq. & Kingsley L. Taft, Esq.

  
	
  Fax:

  	
  (617) 523-1231

  
	
  Phone:

  	
  (617) 570-1000

  

 

 

Either
party may, by notice given in accordance with this Section 16.1 to the other
parties, designate another address or person for receipt of notices hereunder.

 

16.2              Entire Agreement.  This Agreement, the Ancillary Agreements and
the Mutual Non-Disclosure Agreement dated as of April 9, 2008 contain the
entire agreement between the parties with respect to the Transactions and
supersede all prior agreements, written or oral, between the parties with
respect thereto.  Notwithstanding any
investigation made by any party to this Agreement, all covenants, agreements,
representations and warranties made by EXACT and Genzyme in this Agreement will
survive the execution of this Agreement.

 

16.3              Binding Effect;
No Assignment; No Third-Party Beneficiaries.

 

(a)      Neither
this Agreement nor any interest or obligation hereunder is assignable by EXACT
without the prior written consent of Genzyme (such consent not to be
unreasonably withheld or delayed), provided, however, that any
merger, reorganization, or transfer of all or substantially all assets of EXACT
with or to a Third Party, or Change of Control of EXACT, will not be considered
an assignment for the purposes of this Agreement, and then only if: (i) EXACT
provides Genzyme notice of

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

46

 

such transaction as specified in Section 16.1 upon
consummation of such transaction (or, if notice of such transaction is provided
sooner to EXACT’s stockholders, at the time such notice is provided to EXACT’s
stockholders) and (ii) the applicable surviving entity or Third Party agrees to
be bound by the terms and conditions of this Agreement.  Genzyme may freely assign this Agreement or
any interest hereunder.  This Agreement
is binding upon the successors and permitted assigns of the parties hereto, and
the name of a party appearing in this Agreement is deemed to include the names
of such party’s successors and permitted assigns to the extent necessary to
carry out the intent of this Agreement. 
Any assignment not in accordance with this Section 16.3 will be void.

 

(b)      Nothing
in this Agreement, express or implied, is intended to or will confer upon any
Person other than Genzyme and EXACT and their respective successors and
permitted assigns any right, benefit or remedy of any nature whatsoever under
or by reason of this Agreement.

 

16.4              Amendment.  This Agreement may not be amended except by
an instrument signed by each of the parties hereto.

 

16.5              Waiver.  At any time prior to the Closing, either party
hereto may (a) extend the time for the performance of any of the obligations or
other acts of the other party hereto or (b) waive compliance with any of the
agreements of the other party or any conditions to its own obligations, in each
case only to the extent such obligations, agreements and conditions are
intended for its benefit; provided  that, any such extension or waiver will be binding upon a party
only if such extension or waiver is set forth in a writing executed by such
party.

 

16.6              Disclaimer.  EACH PARTY MAKES NO REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, OTHER THAN THOSE EXPRESSLY MADE IN THIS
AGREEMENT.  ALL OTHER WARRANTIES, EXPRESS
OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED.

 

16.7              Section Headings,
Construction.  The headings of
Sections in this Agreement are provided for convenience only and will not
affect its construction or interpretation. 
All references to “Section” or “Sections” refer to the corresponding Section
or Sections of this Agreement.  All words
used in this Agreement will be construed to be of such gender or number as the
circumstances require.  Unless otherwise
expressly provided, the word “including” does not limit the preceding words or
terms.

 

16.8              Counterparts.  This Agreement may be executed in two
counterparts, each of which will be deemed an original, and both of which
together will constitute one and the same instrument.

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

47

 

16.9              Severability.  If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect.  Any provision of this Agreement held invalid
or unenforceable only in part or degree will remain in full force and effect to
the extent not held invalid or unenforceable. 
The parties further agree to replace such invalid or unenforceable
provision of this Agreement with a valid and enforceable provision that will
achieve, to the extent possible, the economic, business and other purposes of
such invalid or unenforceable provision.

 

16.10            Withholding.  The payor of any amount hereunder will be
entitled to deduct and withhold from any consideration otherwise payable
pursuant to this Agreement such amounts as may be required to be deducted and
withheld with respect to the making of such payment under the Code, or any
other legal requirement.  To the extent
that amounts are so deducted or withheld, such deducted or withheld amounts
will be treated for all purposes of this Agreement as having been paid.

 

16.11            Governing Law.  This Agreement will be governed by and
construed in accordance with the internal laws of The Commonwealth of
Massachusetts, without regard to conflict of law principles thereof.

 

16.12            Dispute Resolution.

 

(a)      Management Discussions.
If a dispute, controversy or claim (“Dispute”) arises between the
parties relating to the interpretation or performance of this Agreement but
excluding disputes relating to patent validity or enforceability, appropriate
senior executives (e.g., V.P. level or above) of each party who have the
authority to resolve the matter will meet at least once in person within 15
business days of either party’s written request for such meeting to attempt in
good faith to negotiate a resolution of the Dispute prior to pursuing other
available remedies.  The parties agree
that all negotiations pursuant to this Section 16.12(a) are
confidential and will be treated as compromise and settlement negotiations for
purposes of the Federal Rules of Evidence and state rules of
evidence.  If the parties fail to reach
an amicable agreement pursuant to the process set forth in this Section 16.12(a) within
60 days of the request for such meeting, then either party may pursue a legal
remedy in accordance with Section 16.13.

 

(b)      Court Action.  Notwithstanding any other provision of this
Agreement, any Dispute regarding the following is not required to be negotiated
prior to seeking relief from a court of competent jurisdiction: breach of any
obligation of confidentiality, or infringement, misappropriation, or misuse of
any Intellectual Property Rights of either party hereto where interim
injunctive or other similar relief from the court is sought to prevent serious
and irreparable injury to one of the parties or to others.

 

16.13            Submission to
Jurisdiction; Waiver.  The parties
irrevocably and unconditionally submit to the jurisdiction of the Massachusetts
Superior Court in Suffolk County and waive any objection to transferring any
action, suit or proceeding arising out of this Agreement to

 

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 24b-2 of the
Exchange Act; [*] denotes omissions.

 

48

 

the Business Litigation
Session of the Massachusetts Superior Court. Each of EXACT and Genzyme hereby
irrevocably waives, and agrees not to assert, by way of motion, as a defense,
counterclaim or otherwise, in any Action or proceeding with respect to this
Agreement, (a) any claim that it is not personally subject to the
jurisdiction of the above-named courts for any reason other than the failure to
lawfully serve process, (b) that it or its property is exempt or immune
from jurisdiction of any such court or from any legal process commenced in such
courts (whether through service of notice, attachment prior to judgment, attachment
in aid of execution of judgment, execution of judgment or otherwise), and (c) to
the fullest extent permitted by applicable law, that (i) the suit, Action
or proceeding in any such court is brought in an inconvenient forum, (ii) the
venue of such suit, Action or proceeding is improper, and (iii) this
Agreement, or the subject matter hereof, may not be enforced in or by such
courts.

 

16.14            Enforcement.  The parties recognize and agree that if for
any reason any of the provisions of this Agreement are not performed in
accordance with their specific terms or are otherwise breached, immediate and
irreparable harm or injury would be caused for which money damages would not be
an adequate remedy.  Accordingly, each party
agrees that in addition to other remedies the other party will be entitled to
seek an injunction restraining any violation or threatened violation of the
provisions of this Agreement.  In the
event that any Action will be brought in equity to enforce the provisions of
the Agreement, neither party will allege, and each party hereby waives the
defense, that there is an adequate remedy at law.

 

16.15            Rules of
Construction.  The parties hereto
agree that they have been represented by counsel during the negotiation and
execution of this Agreement and, therefore, waive the application of any law,
regulation, holding or ruling of construction providing that ambiguities in an
agreement or other document will be construed against the party drafting such
agreement or document.

 

16.16            Waiver of Jury Trial.  EACH OF GENZYME AND EXACT HEREBY IRREVOCABLY
WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALINGS, STATEMENT OR ACTION RELATED HERETO OR THERETO.

 

[Remainder of Page Intentionally
Left Blank]

 

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 24b-2
of the Exchange Act; [*] denotes omissions.

 

49

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first stated above.

 

 

	
   

  	
  GENZYME CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Earl M. Collier,
  Jr.

  
	
   

  	
  Name:

  	
  Earl M. Collier, Jr.

  
	
   

  	
  Title:

  	
  Executive Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXACT SCIENCES
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jeffrey R. Luber

  
	
   

  	
  Name:

  	
  Jeffrey R. Luber

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  

 

[Signature Page to
Collaboration, License and Purchase Agreement]

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

 

DISCLOSURE
SCHEDULE

 

TO THE
COLLABORATION, LICENSE AND PURCHASE AGREEMENT

 

These Schedules are being furnished by EXACT
Sciences Corporation (“EXACT”), in connection with the execution and delivery
of that certain Collaboration, License and Purchase Agreement (the “Agreement”),
dated as of January 27, 2009, by and between EXACT and Genzyme Corporation
(“Genzyme”).  Except as otherwise
provided herein or in the Agreement, all disclosures contained in these
Schedules are made as of the date of the Agreement.  Capitalized terms used but not otherwise
defined herein will have the meanings ascribed to them in the Agreement.

 

Any matter disclosed in one section of these
Schedules will be deemed disclosed in all other applicable sections of these
Schedules to the extent that such section is reasonably cross-referenced or the
relevance to such other section is readily apparent on the face of the
disclosure that the matter is responsive to another representation.  Disclosure of a matter in a section of these
Schedules will not affect (directly or indirectly) the interpretation of the
Agreement or the scope of the disclosure obligation of EXACT under the
Agreement.  These Schedules may include
items or information which EXACT is not required to disclose under the Agreement.  The fact that any fact, circumstance, matter
or event is disclosed in a section of these Schedules does not necessarily mean
that it is “material” to EXACT, whether considered individually or in
combination with other facts, circumstances, matters, or events disclosed
herein, and such inclusion will not be deemed an acknowledgement that such
fact, item, circumstance, matter, transaction or event is required to be so
disclosed pursuant to the Agreement.  All
agreements listed in these Schedules will be deemed to include all appendices,
exhibits, schedules, modifications, amendments to, and all orders, purchase
orders, implementation contracts, statements of work, program descriptions and
other documents issued under, such agreements, and all associated
documentation.  No disclosure in these
Schedules relating to any possible breach or violation of or default under any
contract or law will be construed as an admission or indication that any such
breach, violation or default exists or has actually occurred.

 

The information in these Schedules is
disclosed confidentially, and the recipients agree by their receipt of these
Schedules that such information will be held subject to the obligations of Article 13
of the Agreement.  In disclosing the
information set forth herein, EXACT expressly does not waive any
attorney-client privilege associated with any such information or any
protection afforded by the “work product doctrine” with respect to any of the
matters disclosed herein.

 

The headings and descriptions of the
representations and warranties used herein are for convenience of reference
only and are not intended to and do not alter the meaning of any provision of
the Agreement.

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

1

 

Schedule A

 

Primary Patent Rights

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

2

 

Schedule B

 

Secondary Patent Rights

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

3

 

Schedule 2.1(a)(ii)

 

Assigned Contracts

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

4

 

Schedule 2.1(b)(vii)

 

Retained Patent Rights

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

5

 

Schedule 3.1(b)

 

Rights to Retained Patent
Rights

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

6

 

Schedule 3.2(b)

 

EXACT Licensed
Improvements

 

To be added.

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

7

 

Schedule 3.3(b)

 

Optioned Technology

 

To be added.

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

8

 

Schedule 3.4(c)

 

Genzyme Licensed
Improvements

 

To be added.

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

9

 

Schedule 6.4(c)

 

Noncontravention

 

Consent of JHU needed for transfer of the Transferred
In-License Agreement, which is satisfied by the JHU-EXACT License Amendment.

 

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 24b-2 of the Exchange Act; [*] denotes omissions.

 

10

 

Schedule 6.7(a)

 

Assets

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

11

 

Schedule 6.7(b)

 

Assets

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

12

 

Schedule 6.8(a)

 

Transferred Technology

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

13

 

Schedule 6.8(b)

 

Rights to Transferred
Technology

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

14

 

Schedule 6.8(d)

 

Indemnification
Obligations

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

15

 

Schedule 6.8(e)

 

Maintenance of
Intellectual Property

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

16

 

Schedule 6.8(f)

 

Royalties

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

17

 

Schedule 6.8(g)

 

Employees

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

18

 

Schedule 6.8(h)

 

Government Funding

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

19

 

Schedule 6.11(a)

 

Contracts

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

20

 

Schedule 6.12(a)

 

Litigation

 

[********]

 

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 24b-2 of the Exchange Act; [*] denotes
omissions.

 

21

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