Document:

Purchaser Order

 Exhibit 10.38 
  

					
	

	 	 NUMBER:
	 	  
 05-2009

	 	 Show this number on all shipping and billing documents
  

	 	 DATE OF ORDER:
	 	  
 February 25, 2005

  

			
	PURCHASE ORDER	 	PAGE 1 OF 4    

  

					
	 VENDOR:
 Attn: Serge Drobatschewsky
 Maxwell Technologies
 9244 Balboa Avenue
 San Diego, California 92123
 USA
  
 Tel: 858-503-3409
 Fax: 858-503-3301
  
 (Seller) will sell and deliver the supplies and services specified herein in accordance with the terms and conditions
hereof.
	  	 PROJECT:   DE-FC36-95EE50425
  
 DELIVERY:  February 20, 2005
  
 PAYMENT:   Net 30th
Prox
  
 DELIVERY:
 Type & Place:
 FOB Seller’s Plant
 Payment for Transportation:
 Collect
 Routing:
 Buyer’s Traffic
	  	 SHIP TO:
  
 Cyrus N. Ashtiani
 DaimlerChrysler
 CIMS 483-00-08
 800 Chrysler Drive
 Auburn Hills,
 Ml 48326-2757
 USA
  
 Tel: 248-512-9409

  

									
	 QTY

	  	 DESCRIPTION OF SUPPLIES OR SERVICES

	  	UNIT PRICE

	  	TOTAL PRICE

	 1
	  	Develop the technology to deliver low cost high performance 42V ultracapacitor cells and modules for energy storage, power delivery needs, and system goals defined in the FreedomCAR
program.	  	$	6,800,000.00	  	$	6,800,000.00
	 n/a
	  	Notes:	  	 	n/a	  	 	n/a
	 	  	A) The Head-Start letter dated August 13, 2004, copy attached, stated, among other terms, that Maxwell has agreed on the Purchase Order (P.O.) Terms and Conditions (T&C’s), and
accordingly, the PO T&C’s are applicable to this project. The USABC does agree to clarify the T&C’ as set forth below:	  	 	 	  	 	 
				
	 	  	 1. Paragraph 19: The parties agree that the Intellectual Property provisions of the incorporated Appendix E take precedence over the USABC P.O
T&C’s.
	  	 	 	  	 	 
	 	  	 2.Paragraph 20: Maxwell will be reimbursed 45% of the allowable costs for performing the work under the P.O. and that the remaining 55% of the allowable cost shall
constitute Maxwell’s share. B. The DOE Contracting Officer, by letter dated January 24, 2005, has granted approval of the subject project.
	  	 	 	  	 	 
	 	  	B. The DOE Contracting Officer, by letter dated January 24, 2005 has granted approval of the subject project.	  	 	 	  	 	 
	 	  	continued...	  	 	 	  	 	 
				
	 	  	The USABC terms and conditions contained in this purchase order are the only terms and conditions applicable to this order. Any additional or different terms and conditions of seller
referenced in any attachments to this purchase order, or any other documentation, are rejected by USABC and are deleted in their entirety.	  	 	 	  	 	 

  

					
	 REQUESTOR:
  
 Cyrus N. Ashtiani
 DaimlerChrysler
 CIMS 483-00-08
 800 Chrysler Drive
 Auburn Hills,
 Ml 48326-2757
 USA
  
 Tel: 248-512-9409
	 	 INVOICE TO:
  
 United States Advanced Battery Consortium
 c/o Bucciero and Associates
 1050 Wilshire Ste. 115
 Troy, Ml 48084
	  	 APPROVED:
  
 February 25, 2005

	 	  
	 	  
	 	  
	 	  
	 	  
	 	  
	 	  

					
	

	 	 NUMBER:
	 	  
 05-2009

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	PURCHASE ORDER Continued	 	PAGE 2 OF 4    

  

									
	 QTY

	  	 DESCRIPTION Of SUPPLIES OR SERVICES

	  	UNIT PRICE

	  	TOTAL PRICE

	 
	 	  	...continued	  	 	  	 	 	 
	 n/a
	  	 	  	 	  	 	 	 
	 	  	 	  	 	  	
	
	

	 	  	Gross purchase order:	  	 	  	$	6,800,000.00	 
	 	  	Less supplier cost share @55%:	  	 	  	$	(3,740,000.00	)
	 	  	 	  	 	  	
	
	

	 	  	Net purchase not to exceed:	  	 	  	$	3,060,000.00	 
	 	  	 	  	 	  	
	
	

					
	

	 	 NUMBER:
	 	  
 05-2009

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	PURCHASE ORDER Terms and Conditions	 	PAGE 3 OF 4    

  
 1. OFFER, ACCEPTANCE AND MODIFICATION
- This order is an offer to Seller by Buyer to enter into the agreement it describes and it shall be the complete and exclusive statement of such agreement. Seller shall accept the offer in writing or by beginning work hereunder. Modifications
proposed by Seller are not part of the agreement in the absence of Buyer’s written acceptance. 
  
 2. CHANGES - Buyer at any time by written order may change the work of this order, including the specifications, statement of work, number and design of prototypes and delivery dates. If any such change affects cost
or timing, Buyer shall adjust price and delivery schedules equitably. Seller shall not make any change in the work of this order without the written approval of Buyer. 
  
 3. SUBCONTRACTING - Seller shall not subcontract any of its substantive obligations under this order without the prior consent of Buyer. In
each subcontract of work hereunder, Seller shall obtain from the subcontractor the same obligations and rights and licenses for Buyer and Buyer’s Partners and Partner Associated Companies as are provided by Seller under Section 9. A Partner
Associated Company is any entry or division of a Partner, present or future (except those that manufacture batteries), in which one of Buyer’s Partner’s owns fifty percent or more of its voting stock or equity. 
  
 4. TITLE AND BAILED PROPERTY - (a) The documents and articles produced or acquired by
Seller under this order shall become the property of Buyer immediately upon production or acquisition. 
  
 (b) Unless otherwise specified, Seller bears all responsibility for loss and damage to all documents and articles owned by Buyer and possessed by Seller, including responsibility for loss and damage which occur
despite Seller’s exercise of reasonable care, but excluding normal wear and tear. Seller shall (1) properly house and maintain such documents and articles on Seller’s premises, (2) mark them “Property of USABC”, (3) refrain from
commingling them with the property of Seller or with that of a third party, and (4) maintain them as personal property. Buyer shall have the right to enter Seller’s premises at reasonable time to inspect the documents and articles and pertinent
records. Upon completion of the work of this order, Seller shall advise Buyer of those documents and articles produced or acquired hereunder which remain in Seller’s possession. 
  
 (c) At Buyer’s request, Seller immediately shall deliver the documents and articles to Buyer or a carrier selected by Buyer, at
Buyer’s option F.O.B. carrier Seller’s facility or F.O.B. Buyer’s facility freight collect, properly packed and marked in accordance with the requirements of the carrier and Buyer. In the event that Buyer requests scrapping of the
documents or articles, Seller shall destroy the specified documents and articles or mutilate them to the point of usefulness only as raw materials. Seller may sell the materials resulting from such mutilation only to another who agrees to use them
only as raw materials. Seller may delegate to a responsible third party its duties regarding the destruction or mutilation of such documents and articles, but delegation does not relieve Seller from responsibility for such duties and Seller must
monitor the performance of the third party. 
  
 5. BLANKET ORDER RELEASES - If
this purchase order specifies that the services to be performed shall be designated by release, Seller shall perform services only as authorized in releases issued to Seller by Buyer. Any specific requirements concerning scheduled milestones,
delivery dates or progress reporting must be met by Seller prior to payment by Buyer, including progress payments. 
  
 6. INVOICES AND PAYMENT - (a) If applicable to Seller, each invoice shall contain the following assurance: “Seller represents that it has complied with the Fair
Labor Standards Act of 1938, as amended, in producing the supplies or performing the services covered by this invoice.” 
  
 (b) If this order specifies prices on an other-than-fixed price basis, Buyer’s payment obligation shall be calculated only from the direct labor and direct materials
expended by Seller on the work hereof at rates specified in this order. Such rates shall be deemed to include adequate allowances for all other costs and charges. Work shall be at straight-time rates unless Buyer approves higher rates in writing in
advance. For these purposes, direct labor consists of actual hours spent pursuant to this order by qualified persons whose classifications are listed in this order and who are not otherwise compensated for such hours, and direct materials are those
items that become part of the supplies delivered to Buyer. 
  
 (c) Each invoice of
an other-than-fixed price order shall specify the amount of direct labor for each rate, the amount of direct materials, and other appropriate data requested by Buyer. 
  
 (d) Seller shall establish an accounting system that enables ready identification of the foregoing data. Buyer may audit Seller’s
records at any time prior to two years after final payment under an other-than-fixed price order to verify Buyer’s payment obligation to Seller. Seller shall provide written notice to Buyer when work performed reaches eighty percent of the
maximum price, if any, specified in this purchase order. 
  
 (e) Before payment of
final invoice by Buyer, Seller, unless otherwise directed by Buyer, shall provide the items necessary for contract closeout, including, but not limited to a final technical report, Property Certification, Patent Certification, Summary Settlement
Statement, and Subcontractor’s Final Release and Assignment and Certification Respecting Refunds, Rebates, Credits and Other Amounts. 
  
 7. WARRANTY - Seller expressly warrants that all goods or services covered by this order will conform to the specifications furnished to or by Buyer, and will be
merchantable, of good material and workmanship and free from defect. In addition, Seller acknowledges that Seller knows of Buyer’s intended use and expressly warrants that all goods covered by this order which have been selected, designed,
manufactured, or assembled by Seller, based upon Buyer’s stated use, will be fit and sufficient for the particular purposes intended by Buyer. 
  
 8. INFRINGEMENT - Seller at its expense shall investigate and defend or otherwise handle, or at Buyer’s option provide all reasonable assistance to Buyer in
Buyer’s investigation, defense or handling of, every claim that may be brought against Buyer, its Partners and Partner Associated Companies, or others that use the documents and articles on behalf of any of them, for any alleged infringement of
any present or future patent, copyright, industrial design right or other proprietary right based on Seller’s work hereunder or the sale or use of the documents or articles (1) alone, (2) in combination by reason of their content, design or
structure, or (3) in combination in accordance with Seller’s recommendations. Seller’s obligations shall apply even though Buyer furnishes all or any portion of the design and specifies all or any portion of the processing. Seller shall
pay all expenses and damages that Buyer, its Partners or Partner Associated Companies and others using the documents or articles on behalf of Buyer may sustain by reason of each such claim. 
  
 9. INFORMATION AND DATA - 
  
 (a) Seller shall furnish to Buyer or another party designated by Buyer, without restrictions of use or disclosure, all information and data
developed in the performance of work and required to be delivered hereunder. 
  
 (b) All designs, inventions, and improvements which Seller makes in the course of Seller’s activities hereunder and any patents and/or copyrights received by Seller thereon shall be the property of Seller provided that Seller agrees to
contribute at least fifty percent (50%) of the total cost of the work hereunder; otherwise all such designs, inventions and improvements which Seller makes, solely or jointly with Buyer, in the course of Seller’s activities hereunder and any
patents or copyrights received by Seller, solely or jointly, thereon shall be the property of Buyer and, in such case, Seller shall execute or have executed any papers and provide assistance as may be necessary to perfect ownership thereof in Buyer.
In addition, if Seller fails to contribute at least fifty percent (50%) of the total cost of the work hereunder, (1) at Buyer’s request Seller shall furnish to Buyer, on reasonable terms and conditions, all other information and data of Seller
which Buyer deems necessary to understand and apply the information and data of the above Section 9(a), and (2) Seller hereby grants to Buyer, its Partners and Partner Associated Companies designated by Buyer, a nonexclusive, paid- up, worldwide,
irrevocable license to make, have made, use, have used, sell, offer to sell and import under, and to copy, modify, use, distribute, and prepare derivative works under, any intellectual property rights owned or controlled by Seller which cover any
application of the technology embodied in the information or data Seller acquires or develops in the course of Seller’s activities hereunder. 
  
 (c) In the event that Seller is unwilling or unable to manufacture the product substantially developed in the course of Seller’s activities hereunder, at
Buyer’s request, Seller shall negotiate in good faith with manufactures that are designated by the Buyer in collaboration with the Seller for the issuance of one or more royalty-bearing licenses under Seller’s intellectual property rights
for the purposed of commercialization in all automotive applications of such product. Such license shall be granted by the Seller upon terms that are reasonable under the circumstances. 
  
 (d) For a period of five (5) years from the date hereof, Seller shall use reasonable care to prevent disclosing to others and shall not use
on behalf of others (1) the technical information and data furnished by Buyer or developed by Seller in the performance of work hereunder, and (2) information relating to any portion of Buyer’s business that Seller may acquire in the course of
Seller’s activities hereunder. This obligation shall not apply to information that is or becomes publicly known through not fault of Seller. 
  
 (e) Seller agrees not to assert any claim other than a claim (subject to any applicable license under Sections (b) and/or 9(c) above) for patent infringement against
Buyer, its Partners and Partner Associated Companies with respect to any technical information which Seller shall have disclosed to or may hereafter disclose to Buyer in connection with the goods or services covered by this purchase order.

  
 10. ENGINEERING DRAWINGS - Any engineering drawings Seller is required to
prepare and furnish to Buyer shall conform with standards to be provided by Buyer. 
  
 11. INDEMNITY- Seller shall hold harmless Buyer, its Partners and Partner Associated Companies, and the directors and employees of all of them, from all claims, liabilities, losses, damages or other expenses, including legal fees, which
arise from Seller’s performance of work in connection with this order or use of Buyer’s property on or off Buyer’s premises and which are for actual or alleged (a) injury to any person, (b) damage to any property, (c) economic loss,
or (d) violation of any law, ordinance, or regulation, except when such (c) economic loss, or (d) violation of any law, ordinance, or regulation, except when such expenses are attributable to the sole negligence or sole and willful misconduct of
Buyer, its Partners and Partner Associated Companies, or the directors and employees of any of them. 
  
 12. TERMINATION AT OPTION OF BUYER - 
  
 (a)
Buyer may terminate its purchase obligations hereunder, in whole or in part, at any time, by a written notice of termination to Seller. Buyer shall have such right of termination notwithstanding the existence of an excusable delay of Section 14.

  
 (b) Upon receipt of the notice of termination, Seller unless otherwise
directed by Buyer shall (1) terminate promptly all work under this order, (2) transfer title and deliver to Buyer the finished work, the work in process and the parts and materials which Seller produced or acquired in accordance with this purchase
order and which Seller cannot use in producing goods for itself or for others, (3) settle all claims by subcontractors (if any) for actual costs that are rendered unrecoverable by such termination, and (4) take actions reasonably necessary to
protect property in Seller’s possession in which Buyer has an interest. 
  
 (c) Upon termination by Buyer under this Section, Buyer’s obligation to Seller shall be: (1)the purchase order price for all finished work and completed services which conform to the requirements of the order, (2) Seller’s
reasonable actual cost of the work in process and parts and materials transferred to Buyer in accordance with subsection (b)(2) hereof, (3) Seller’s reasonable actual cost of settling the claims by subcontractors of subsection (b)(3) hereof but
not in excess of the obligation Seller would have had to the subcontractor in the absence of termination, and (4) Seller’s reasonable actual cost of carrying out its obligations of subsection (b)(4) hereof. Buyer’s obligations upon
termination under this Section shall not exceed the obligation Buyer would have had to Seller in the absence of termination. 
  
 (d) Within two months after the date of termination, Seller shall furnish to Buyer its termination claim which shall consist exclusively of the items of Buyer’s
obligation to Seller that are listed in subsection (c) hereof. Buyer may audit Seller’s records, before or after payment, to verify amounts requested in Seller’s termination claim. 
  
 (e) Buyer shall have no obligation to Seller if Buyer terminates its purchase obligations of
this purchase order because of default by Seller. 

					
	

	 	 NUMBER:
	 	  
 05-2009

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	PURCHASE ORDER Terms and Conditions (cont)	 	PAGE 4 OF 4    

  
 13. COMPLIANCE WITH LAW - Seller shall
comply with federal, state and local laws, rules, regulations, ordinances and executive orders applicable to Seller’s performance of its obligations under this order. Contract clauses required by the Government in such circumstances are
incorporated herein by reference. 
  
 14. EXCUSABLE DELAYS - Neither Buyer nor
Seller shall be liable for a failure to perform that arises from causes or events beyond its reasonable control and without its fault or negligence, including labor disputes of any kind. Seller’s delivery obligations of Section 4 are not
impaired by an excusable delay of this Section. 
  
 15. APPLICABLE LAW - This
order shall be governed by the laws of the State of Michigan, and litigation on contractual causes arising from the order shall be brought only in a federal District Court located in Michigan or in a court of the State of Michigan. 
  
 16. MOST FAVORED CUSTOMER: If Seller and Buyer complete the work ordered hereunder and if
Buyer, or its Partners or Partner Associated Companies designated by Buyer, elect to purchase from the Seller any item substantially developed hereunder, Seller shall sell such item to Buyer, or its Partners or Partner Associated Companies at prices
that are no less favorable to the purchaser than those then currently given to any other customer for essentially a similar product in similar quantities and under essentially similar terms and conditions. If Seller later reduces the price to other
customers for essentially the similar product in similar quantities and under essentially similar terms and conditions, Seller will reduce correspondingly the price to Buyer, its Partners and Partner Associated Companies. 
  
 17. OTHER TERMS-This purchase order is issued subject to Department of Energy Cooperative
Agreement number DE-FC26-95EE50425 (“Cooperative Agreement”). In the event of a conflict between the terms of this purchase order and the Cooperative Agreement, the Cooperative Agreement controls. The Office of Management and Budget
(“OMB”) Circular A-110 applies to Seller. If Seller is a non-profit organization (other than an educational institution), OMB Circular A-122 applies to Seller. If Seller is an educational institution, OMB Circular A-21 applies to Seller.
If the amount of this purchase order exceeds $25,000, then Seller must comply with Department of Energy regulations located at 10 CFR Part 1036. If the amount of this purchase order exceeds $100,000, this purchase order and Seller are subject to
Department of Energy regulations located at 10 CFR Part 601, regarding restrictions on lobbying. Seller must submit to buyer a completed “Disclosure of Lobbying Activities” form, Appendix B to 10 CFR Part 601, within 15 days following the
end of any calendar quarter in which an event occurs that must be disclosed. Seller will require any calendar quarter in which an event occurs that must be disclosed. Seller will require any subcontractor under this purchase order to comply with
this provision. Seller must provide copies to Buyer of any disclosures received from Sellers subcontractors. 
  
 Seller must allow Buyer or anyone with rights through Buyer to audit Seller’s records with respect to this purchase order. Seller must retain those records for 3 years following final payment under this purchase
order. 
  
 18: The Seller shall perform the tasks and provide deliverables on the
schedule specified in the SOW contained in Appendix A and agrees to use its best efforts to meet and attempt to exceed the technical goals of the program. 
  
 19: This purchase order is governed in declining order of precedence by: 1) the terms listed on the front page of the Purchase Order and on any continuation page thereof,
2) the Intellectual Property terms of Appendix E, 3) the terms on the back page of the Purchase Order, and 4) the Statement of Work in Appendix A. 
  
 20: This is a cost sharing Purchase Order. USABC shall reimburse seller for fifty (50%) percent of the allowable costs for performing the work under this Purchase Order.
The remaining fifty (50%) percent of the allowable costs shall constitute the sellers share, for which it will not be reimbursed by USABC. Each month the seller shall submit to USABC an invoice reflecting the total allowable costs incurred by the
seller during the previous month, less the seller’s cost share of such costs. USABC shall pay the seller within (60) days of receipt of each invoice, subject to seller providing a report outlining the work accomplished in sufficient detail to
justify the funds seller expended during the month. Along with the monthly invoice, seller shall supply USABC with an estimate of the next month’s cost. Seller shall advise USABC immediately when the percent of work accomplished is inconsistent
with the agreed upon funding expenditure schedule such that insufficient funds remain to complete the program as planned within the total costs outlined herein. This Purchase Order will enter into effect only after review and approval by DOE of
Seller’s financial submissions. Paragraph 6(b) on the back page of the Purchase Order is deleted. This Purchase Order is issued on an allowable cost basis, without fee or profit. Allowable costs shall be identified in accordance with Generally
Accepted Accounting Principles, and are defined in the Federal Acquisition Regulation (FAR Part 31.2; 48 CFR 31.2) and 10 CFR 600.127. Invoices will be submitted on Standard Form 270, Request for Advance or Reimbursement, with content acceptable to
DOE. A Final Cost report will be submitted within 90 days of completion of the work, in the same format as the approved budget for the program, comparing the amounts allocated in the award budget to the amounts expended for each budget element, and
identifying any unobligated balance which should be refunded to USABC and DOE. Paragraph 6(d) on the back page of the Purchase Order is modified to extend USABC audit rights to any period during which the US Government may audit the USABC
expenditures on this Purchase Order (ref. 10 CFR 600.25 and 600.126(d)). Seller is expected to bring the work to conclusion within the funding limits of the approved financial submissions. There is no commitment by DOE or USABC to provide additional
funds and Seller is not authorized to incur costs under this Purchase Order beyond the amounts on the face hereof. 
  
 Failure of the DOE to provide funding for this Purchase Order, or cancellation by DOE of such funding, may result in termination at the option of the USABC under the
provisions of paragraph 12. 
  
 21. Publication by Seller of information developed
under this Purchase Order will be governed by Appendix E provisions relating to patents and Protected Battery Information. Any publication which is approved under those conditions will contain the following acknowledgment statement: 
  
 ‘This (material) was prepared with the support of the US Department of Energy,
Cooperative Purchase Order number DE-FC02-95EE50425 with the United States Advanced Battery Consortium. However, any opinions, findings, conclusions, or recommendations expressed herein are those of the author(s) and do not necessarily reflect the
views of the DOE or the USABC.’ 
  
 22: During the term of this Purchase
Order, Seller agrees to secure pre-publication approval from USABC of proposed publications and USABC agrees to give Seller a copy of proposed publications at least thirty (30) days prior to publication. 
  
 Any news release, public announcement, advertisement, or publicity released by either party
concerning this Purchase Order and work done pursuant to this Purchase Order will give full consideration and credit to the roles and contributions of both parties and DOE and further shall be subject to (a) all restrictions regarding publicity
imposed by DOE and (b) prior mutual approval by both parties hereto. Any public statements, press releases, RFP, or other documents describing this program funded in part with Federal money must clearly state (1) the percentage of the total cost of
the program funded by the US Government, (2) the dollar amount of Federal contribution being described, and (3) the percentage and dollar amount of the total costs of the program that will be funded by non-Federal sources. The Federal contribution
for this program is expected to be 50%. 
  
 Seller shall not, for a period of
sixty (60) days from the effective date of this Purchase Order, without first obtaining the written consent of USABC, in any manner advertise or publish the fact that the parties have entered into this Purchase Order or that Seller has contracted to
perform research and development work for USABC as described in the Statement of Work. Furthermore, Seller shall not use any trademarks or trade names of USABC in Seller’s advertising or promotional materials except as required by federal,
state and local laws, executive orders, rules, regulations, ordinances, governmental authorities and agencies. 
  
 23: Seller is advised that the conditions under which the DOE has agreed to fund this USABC program include substantial involvement by the DOE, to include technical direction for the program and program elements.
Seller agrees that USABC and DOE may make visits at reasonable times and frequencies to review program accomplishments and management control systems, and provide technical assistance. 
  
 24: Paragraph 13 is amended to refer specifically to DOE regulations regarding Nondiscrimination in Federally Assisted Programs (ref. 10 CFR
1040). Seller is hereby notified of the following provision of Public Law 103-316. The Energy and Water Development Appropriations Act, FY 1995): 
  
 25: Title to nonexpendable personal property acquired shall vest in Seller subject to USABC approval and subject to DOE rights to transfer title in accordance with the
requirements of OMB Circular A-110, or to abandon such property in place. None of the funds contributed by the parties pursuant to this Purchase Order may be expended for buying real estate. 
  
 ‘It is the sense of Congress that to the greatest extent practicable, all equipment and
products purchased with funds made available by PL 103-316 which are provided under this award should be American-made.’Form of Non-Qualified Stock Option Agreement for 1998 Stock Option Plan

 Exhibit 10.1 
  
 GLYCOGENESYS, INC. 
  
 OPTION TO PURCHASE SHARES OF COMMON STOCK 
  

			
	________________________	 	___________________
	NUMBER OF SHARES	 	DATE

  
 GlycoGenesys, Inc.
(the “Company”) hereby grants
to                                        
(the “Optionee”) an Option to purchase, prior to a date ten years from the date hereof (the “Expiration Date”) all or any part of              shares of
Common Stock, $0.01 par value (the “Common Stock”), of the Company (the “Option Shares”), at a price of $         per share (the “Option Price”), subject to the terms and
conditions set forth herein. This Option is issued pursuant to the SafeScience, Inc. 1998 Stock Option Plan (the “Plan”) as “Non-Qualified Stock Options” and are subject to all the terms and conditions of the Plan. 
  
 1. Vesting. 
  
 (a) This Option shall become vested and exercisable
                                        

  
 (b) Upon the occurrence of a Merger, as defined in Paragraph 6
below, the Committee may determine, in its sole discretion, that all or a portion of the Option shall become vested and exercisable, either upon the Merger or at such other time or times as the Committee determines. 
  
 2. Exercise Requirements. If fewer than the number of Option Shares then available for
purchase pursuant to this Option are purchased at any time under this Option, the Optionee may purchase the remaining Option Shares up until the Expiration Date. The Option shall not be exercisable for fractional shares. 
  
 3. Termination of Employment, Disability or Death. 
  
 (a) Except as provided below, this Option may only be exercised while the
Optionee is employed by, or providing service to, the Company, as an employee, member of the Board or advisor or consultant. In the event that the Optionee ceases to be employed by, or provide service to, the Company for any reason other than
Disability (as defined in Paragraph (e) below), death or termination for Cause (as defined in Paragraph (e) below), the portion of this Option which is otherwise exercisable shall terminate unless exercised within 90 days after the date on which the
Optionee ceases to be employed by, or provide service to, the Company, but in any event no later than the Expiration Date. Except as otherwise provided by the Committee, the portion of this Option which is not otherwise exercisable as of the date on
which the Optionee ceases to be employed by, or provide service to, the Company shall terminate as of such date. 
  
 (b) In the event the Optionee ceases to be employed by, or provide service to, the Company on account of a termination for Cause by the Company, this
Option shall terminate as of the date the Optionee ceases to be employed by, or provide service to, the Company. In addition, notwithstanding any other provisions of this Section 3, if the Committee determines 

 that the Optionee has engaged in conduct that constitutes Cause at any time while the Participant is employed by, or
providing service to, the Company, or after the Participant’s termination of employment or service, this Option shall immediately terminate. In the event the Committee determines that the Optionee has engaged in conduct that constitutes Cause,
in addition to the immediate termination of this Option, the Optionee shall automatically forfeit all Option Shares underlying any exercised portion of this Option for which the Company has not yet delivered the share certificates, upon refund by
the Company of the Option Price paid by the Optionee for such shares (subject to any right of setoff by the Company). 
  
 (c) In the event the Optionee ceases to be employed by, or provide service to, the Company because the Optionee is Disabled, the portion of this Option
which is otherwise exercisable by the Optionee shall terminate unless exercised within one year after the date on which the Optionee ceases to be employed by, or provide service to, the Company, but in any event no later than the Expiration Date.

  
 (d) If the Participant dies while employed by, or providing
service to, the Company, the portion of the Option which is otherwise exercisable by the Optionee shall terminate unless exercised within one year after the date on which the Optionee ceases to be employed by, or provide service to, the Company, but
in any event no later than the Expiration Date. 
  
 (e) For
purposes of this Section 6(e): 
  
 (i) The term
“Company” shall mean the Company and its subsidiary corporations. 
  
 (ii) “Disability” or “Disabled” shall mean the Optionee becoming disabled within the meaning of Section 22(e)(3) of the Code. 
  
 (iii) “Cause” shall mean, except to the extent specified otherwise by the Committee, a finding by the Committee
that the Optionee has breached any provision of his or her terms of employment or service contract with the Company, including without limitation covenants against competition, or has engaged in disloyalty to the Company, including, without
limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his or her employment or service, or has disclosed trade secrets or confidential information of the Company to persons not entitled to receive such
information. 
  

 -2- 

 4. Manner of Exercise. 
  

(a) To the extent this Option is exercisable, it may be exercised in the following manner: From time to time prior to the Expiration Date, the Optionee
may give written notice to the Company of the Optionee’s election to purchase some or all of the Option Shares then vested hereunder. Said notice shall specify the number of shares to be purchased and shall be accompanied by payment therefor in
cash or in shares of Common Stock, valued at their fair market value on the date of exercise determined in good faith by the Board of Directors or a committee thereof. If Common Stock is publicly traded, the Committee, in its discretion, may also
permit you to pay the Option Price in cash by delivering to the Company a copy of irrevocable instructions to a broker to deliver promptly to the Company an amount of sale or loan proceeds. No certificates for the shares so purchased shall be issued
to the Optionee until the Company has completed all steps required by law or under the Articles of Incorporation of the Company to be taken in connection with the issuance and sale of the shares, including without limitation, if said shares have not
been registered under the Securities Act of 1933, as amended, receipt of a representation from the Optionee upon each exercise of this Option that he is purchasing the shares for his own account and not with a view to any resale or distribution
thereof, legending of any certificate representing said shares, and the imposition of a stop transfer order with respect thereto to prevent a resale or distribution in violation of Federal or State securities law. If requested upon the exercise of
this Option, certificates may be issued in the name of the Optionee jointly with another person with rights of survivorship or in the name of the executor or administrator of his estate, and the foregoing representations shall be modified
accordingly. 
  
 (b) It shall be a condition to the Company’s
obligation to deliver Common Stock upon exercise of any portion of this Option that the Optionee pay, or make provisions satisfactory to the Company, for the payment of any taxes which the Company or any subsidiary is obligated to withhold or
collect with respect to such exercise or otherwise with respect to the Option. 
  
 5. Transferability. 
  
 Except as provided in
Section 6, this Option is personal to the Optionee, is not transferable by the Optionee in any manner, whether by operation of law or otherwise, and is exercisable, during the Optionee’s lifetime, only by the Optionee. 
  
 6. Effect of Certain Transactions. 
  
 If the Company is merged into or consolidated with another corporation under
circumstances where the Company is not the surviving corporation, or if the Company is liquidated or sells or otherwise disposes of all or substantially all its assets to another corporation (any such transaction is referred to in this Paragraph 6
as a “Merger”) while this Option remains outstanding, then (i) after the effective date of such Merger, the holder of this Option shall be entitled, upon exercise of such Option, to receive in lieu of shares of Common Stock, shares of such
stock or other securities as the holders of shares of Common Stock received pursuant to the 
  

 -3- 

 terms of the Merger; and (ii) this Option may be cancelled by the Board as of the effective date of any such Merger
provided that notice of such cancellation shall be given to the Optionee not less than thirty days prior to the effective date of such Merger. 
  
 7. Miscellaneous. 
  
 (a) Any notices given hereunder shall be hand delivered or mailed by first class mail, postage prepaid, to the Company at its principal place of business
at 31 St. James Avenue, Boston, MA 02116, or to the Optionee at his address set forth in the records of the Company, or in either case to such address as either party may subsequently furnish to the other in writing. 
  
 (b) The exercise of this Option and the delivery of Option Shares hereunder
will be subject to the completion of any registration or qualification of the Options or the Option Shares under state or federal securities laws, the requirements of any stock exchange or similar organization, or under any ruling or regulation of
any governmental body or national securities exchange that the Company determines to be applicable. 
  
 (c) This Agreement is made pursuant to the Plan and is subject to all the terms and provisions of the Plan as if the same were fully set forth herein.
Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Plan. 
  
 (d) The Optionee shall not be, nor have any of the rights or privileges of, a holder of Common Stock in respect of any Option Shares purchasable upon the
exercise of this Option, including any rights regarding voting or payment of dividends, unless and until a certificate representing such Option Shares has been delivered to the Optionee. 
  
 (e) This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

  
 (f) The parties agree to execute such additional documents or
instruments and to take such further actions as may be reasonably necessary to effectuate the intent of this Agreement. 
  
 (g) This Agreement may be executed in one or more counterparts each of which shall be deemed an original and all of which together shall constitute a
single instrument. 
  
 (h) In the event that any term of this
Agreement is held invalid, illegal or unenforceable in whole or in part, the remainder of this Agreement and of such term shall be unaffected thereby. 
  
 (i) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors, heirs and assigns. 
  

 -4- 

 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals as of the date first above
written. 
  
 GLYCOGENESYS, INC. 
  

					
	By	 	  

	 	

	 	 	 	 	Optionee

  

 -5-

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