Document:

The Company's 2006 Management Annual Incentive Plan

 Exhibit 10.2 
  
 PROVISIONS OF THE 
 TIDEWATER INC. 
 MANAGEMENT ANNUAL INCENTIVE PLAN 
 (MAIP) 
 FOR 
 FISCAL 2006 
  

	I.	PLAN OBJECTIVE 

  
 The primary objective of the Management Annual Incentive Plan (“MAIP” or the “Plan”) is to assist in achieving specific business and
financial goals conducive to the organization’s success, which the Company believes can best be accomplished by providing cash incentives to key Tidewater employees. 
  
 The MAIP helps prioritize and focus efforts on the accomplishment of financial goals and other corporate objectives
established each year through the annual planning and budgeting process. This is achieved by linking a significant element of annual compensation to the accomplishments of selected goals. At target performance levels, the MAIP provides incentive
compensation opportunities which, in conjunction with base salary, will yield competitive total compensation levels. 
  

	II.	BASIC PLAN CONCEPT 

  
 The plan concept focuses primarily on the performance of Tidewater overall. The MAIP is comprised of three divisions which will enable the Company to
better measure performance results of eligible participants by specific areas of responsibility. The three divisions are as follows: 
  

	 	•	 	Administrative 

  

	 	•	 	Marine 

  

	 	•	 	Special Test Group 

  
 Overall corporate performance is considered each year along with certain divisional and individual performance measures specific to operations and
functions. Regardless of corporate performance, however, the Compensation Committee of the Board of Directors may at its discretion establish a funding pool of up to 50% of the target awards for all participants in order to allow awards for
outstanding individual contributions even if the Company does not achieve threshold performance on plan performance measures within a year. 
  

	III.	ELIGIBILITY CRITERIA 

  
 Eligibility for participation in the MAIP will be limited to officers and certain key employees who directly impact the Company’s financial
performance and who do not participate in another Company bonus plan. The specific positions eligible to participate in the plan will be reviewed and determined annually by Tidewater’s Chief Executive Officer and the Compensation Committee of
the Board of Directors. 
  

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	IV.	AWARD OPPORTUNITIES 

  
 Prior to the beginning of each fiscal year, Tidewater will specify target incentive awards for each eligible position. Prior to the beginning of each
fiscal year, Tidewater will determine the total pool target, threshold and maximum incentive award amounts. These amounts are determined from each eligible participant’s base salary times the target percent associated with the
participant’s position within the Company. The actual target percent is determined based upon the employee’s relevant position within the Company and the measurable amount of direct influence on the Company’s financial performance.
Base target percents by position are as follows: 
  

				
	 	  	Base
Target %

	 
	 A. Administrative
	  	 	 
		
	 Executive Vice President
	  	95	%
	 Executive Vice President and General Counsel
	  	95	%
	 Executive Vice President, CFO & Treasurer
	  	95	%
	 Senior Vice President & Principal Accounting Officer
	  	80	%
	 Controller
	  	50	%
	 Director – Corporate Taxation
	  	40	%
	 Assistant to CEO
	  	35	%
		
	 B. Marine
	  	 	 
		
	 Senior Vice President
	  	80	%
	 Vice President – Operational Areas
	  	70	%
	 Area Manager (A)
	  	55	%
	 Area Manager (B)
	  	45	%
	 Regional Director – Finance (FA)
	  	40	%
	 Area Manager (C)
	  	35	%
	 Regional Director – Finance (FB)
	  	30	%
		
	 C. Special Test Group
	  	 	 
		
	 Vice President – Technical Services and Engineering
	  	70	%
	  
	 Director – Health, Safety, and Environmental Management
	  	55	%
	  
	 Vice President – International Sales
	  	55	%
	 President/General Manager – Quality
	  	45	%
	 Vice President – Domestic Sales
	  	45	%
	 Manager – Special Vessel Services
	  	35	%
	 Manager – Domestic Sales
	  	27.5	%

  
 Base Target % will be
adjusted as a result of changes in positions or initial hiring during fiscal 2006. 
  

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	V.	PERFORMANCE MEASURES AND STANDARDS 

  
 Prior to the start of each fiscal year, specific corporate and divisional measures and standards will be established. In addition, the appropriate
weighing of each measurement will also be established. 
  

	 	A.	Performance Measures that Generate the Funding Pool 

  

	 	1.	Except as provided in Section II of this MAIP, before any individual incentive amount can be awarded, the Company must first achieve minimum (threshold) performance in at least one
of three Company performance measures. For fiscal year 2006, Company performance measures are: 

  

	 	a.	Adjusted Net Income vs. Budget – Under this test, net income as compared with budgeted net income, adjusted for selected charges/credits of an unusual nature which would not be
subject to normal budgeting procedures, is used. The net income test is a measurement test comparing actual results against budgeted results for the year. 

  
 Note: The Company’s adjusted net income must be at least 50% of the budgeted net income, in order for the
minimum (threshold) award to be paid. 
  
 For fiscal year
2006, this performance measurement will carry a weight of 34%. 
  
 In order to have the incentive pay program not inhibit good management/business decisions, certain adjustments to net income should be made in determining if the net income test has been met. Such adjustments should
be objectively determinable to avoid the appearance of impropriety. Accordingly, the following items as reported in the corporation’s consolidated statement of earnings should be added to or subtracted from net income as reported in order to
determine net income for purposes of the incentive pay plan: 
  
 Cumulative effect of accounting changes; 
 Extraordinary items; 
 Discontinued operations; and 
 Unusual or
infrequently occurring items (less the amount of related income taxes) as that term is used in Accounting Principles Board Opinion No. 30. 
  
 NOTE: For purposes of calculating achievement of this performance measure, budgeted net income shall be divided by the average number of common
shares outstanding for the year as contemplated by the budget. Likewise, the amount of Adjusted Net Income shall be divided by the average number of common shares outstanding during the year. For purposes of making both 

  

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of these Earnings Per Share calculations, common stock equivalents shall not be considered in determining the average number of common shares outstanding.

  

	 	b.	Return on Total Capital (ROTC) Relative to Peer Companies (“Relative ROTC”) — Under this performance measurement, the Company must attain at least the 40th percentile when compared to the Peer Group (see Exhibit 1) on Return of Total Capital (ROTC). ROTC is defined as:

  

			
	 	 	Earnings Before Interest Expenses, Taxes,
	 	 	 Depreciation and Amortization (EBITDA)

	 	 	Average Shareholders Equity + Average Long-Term Debt
	 	 	(including current maturities of Long-Term Debt)

  
 NOTE: Average
shareholders’ equity and average long-term debt shall be determined by summing the respective totals as of the end of each interim quarterly reporting period during the fiscal year as shown on the Company’s consolidated balance sheet and
dividing such sums by the number of interim reporting periods. 
  
 The standard for the ROTC performance measure will be established by considering Tidewater’s performance against the Peer Group of companies (see Exhibit 2). When determining peer group performance ranking, pro-rating is not permitted
below the 40th percentile. 
  

For fiscal year 2006, this performance measurement will carry a weight of 33%. 
  

	 	c.	Return on Total Capital Percentage – ROTC is Tidewater’s ROTC percentage for the fiscal year, determined as provided in Section V.A.1.b. above. 

 
 For fiscal 2006, this performance measurement will carry a weight
of 33%. 
  
 Exhibit 2 illustrates the threshold and
maximum payouts for each component of the Plan. For fiscal 2006, each participant has an opportunity to earn up to 150% of a portion of the pool generated by the performance measures described above (the “Pool Funding Amount”) and this
additional amount will be based upon safety for some participants and on ROTC for others. 
  

	 	B.	Standards for Each Division and Group 

  
 Although overall Company performance determines the maximum funding of the pool, each participant, within each division, will have specific standards
established for the accomplishment of certain Company and individual performance measures. These criteria will be established annually, prior to the beginning of each fiscal year, and will be used to determine the amount of the 

  

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incentive award that each participant will be eligible to receive. The amount of bonus actually awarded to the participant depends upon his (her)
achievement of the Company and individual performance criteria. For Fiscal Year 2006, the performance measures for each division and for the Special test group are as follows: 
  

	 	1.	Administrative 

  

	 	a.	Return on Total Capital – As defined above, this measurement will carry a weight of 25% of the individual’s total award. 

  

	 	b.	Adjusted Net Income – As defined above, this measurement will carry a weight of 25% of the individual’s total award. 

  

	 	c.	Individual Performance – This measurement is determined on a subjective basis and will carry a weight of 25% of the individual’s total award.

  

	 	d.	Safety Performance – This measurement is determined by achievement of the Company’s overall established safety performance goals for the fiscal year. The safety
performance measurement will carry a weight of 25% of the individual’s total award, but may increase to up to 150% of this 25% portion for exceptional safety performance. 

  

	 	2.	Marine 

  

	 	a.	Safety Measurement – This measurement will be considered in four parts. 

  

	 	   1.	First, each area will be given a specific goal to achieve during the fiscal year with respect to safety performance as it relates to Total Recordable Incident Rates. Each area will
be graded on how well it performs toward achieving the assigned goals. Total Recordable Incident Rate will be defined as follows: 

  

			
	Loss Time Accidents
		
	Plus	  	Recordable incidents
		
	Multiplied by	  	200,000 (man hours)
		
	Divided by	  	Total man hour exposure
		
	Equals	  	Total Recordable Incident Rate per 200,000 man hours of exposure

  
 Attached as Exhibit
3, are the Safety Total Recordable Incident Rate goals for Fiscal 2006. 
  

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	 	2.	The second component of this measurement is related to property damage. For fiscal 2006, property damage performance will be measured by applying a subjective review of overall
property damage results for the fiscal year. Only property damage above the $100,000 per occurrence deductible will be included for measurement purposes. Property damage claims will be adjusted to include only Hull (excluding machinery), Marine
Liability and Pollution claims. In other words, preventable property damage claims. This type of information will form the basic parameters that will be reviewed and considered for fiscal 2006 results. 

  

	 	3.	The third component of this measurement is related to pollution incidents. For fiscal 2006, any pollution incident must be reported to the Insurance and Claims Department. The
number and severity of pollution incidents will be measured by applying a subjective review of overall pollution incidents for the fiscal year. The Safety Director will provide quarterly updates on the reported incidents. 

 

	 	4.	Fourth, each area is evaluated on its own overall safety performance, taking into consideration such things as number of deaths and/or disabilities within an area, Lost Time
Accidents, incident ratios, nature of accidents, preventable accidents etc. Non-job related deaths will not count as an LTA. 

  
 Note: Within this weighing (1, 2, 3 & 4 above), personnel safety will comprise 60%, property damage 10%, pollution incidents 5%, and overall safety
performance 25%. 
  
 Notwithstanding the above, no allocation
under this measurement is provided unless the Company achieves its overall established safety performance goals for the fiscal year. The safety measurement will carry a weight of 25% of the individual’s total award. 
  
 (Note: How well each area demonstrates its commitment to
Tidewater’s safety program overall will be part of the individual performance measurement.) 
  

	 	b.	 Pre-tax Earnings Test – Under this test, pre-tax earnings, as defined, as compared with a budgeted pre-tax earnings goal, will be used to determine a component
of the individual’s incentive pay. The pre-tax earnings test will be an operating area specific test, adjusted for an allocation of corporate and marine overhead (as defined), and carry a weight of 12.5% of the individual’s total
award. This test will not be considered achieved if the operating area does not provide a positive actual pre-tax earnings amount, 

  

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even though the area may meet its budgeted pre-tax earnings goal. Pre-tax earnings for this purpose will be defined as follows: 
  
 Area Revenues from all operating activities as reported in the
corporation’s consolidated income statement. 
  

			
	Minus	 	Area Operating Costs and Expenses, as reported in the corporation’s consolidated income statement.
		
	Minus	 	Area General and Administrative Expenses as reported in the corporation’s consolidated income statement.
		
	Plus/Minus	 	Area Other Income/Expenses, including gains/losses on asset sales, other income, equity in joint venture earnings, minority interests in less than 100% owned consolidated subsidiaries,
interest income, depreciation and amortization expense and foreign exchange gains/losses as reported in the corporations consolidated income statement.
		
	Minus	 	Area Capitalized Repair and Maintenance Costs.
		
	Minus	 	An allocation, based upon the insured value of vessels in the Area versus the total insured value of the company’s marine fleet, of corporate overhead expenses (G&A costs,
depreciation expense and other expenses), marine overhead costs (G&A costs, depreciation expense, inventory adjustment and other expenses), costs of vessels withdrawn from service and held for sale, net cost of Pental Insurance and interest and
debt cost as these items are reported in the corporation’s consolidated income statement.
		
	Equals	 	Pre-tax earnings, as defined.

  
 In order to have the
incentive pay program not inhibit good management/business decisions, certain adjustments to pre-tax earnings should be made in determining if the net income test has been met. Such adjustments should be objectively determinable to avoid the
appearance of impropriety. Accordingly, the following items as reported in the corporation’s consolidated statement of earnings should be added to or subtracted from net income as reported in order to determine net income for purposes of the
incentive pay plan: 
  
 Cumulative effect of accounting changes;

 Extraordinary items; 
  

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 Discounted operations; and 
 Unusual or infrequently occurring items (less the amount of related income taxes) as that term is used in Accounting Principles Board Opinion No. 30.

  

	 	c.	Return on Total Capital Percentage – Under this test, Tidewater’s ROTC% above a certain threshold will be used to determine a portion of the individual’s incentive
pay. This measurement will carry a weight of 37.5%, but may increase to up to 150% of this 37.5% portion for achievement of exceptional ROTC performance. See Exhibit 3. 

  

	 	d.	Individual Performance – Individual performance is determined annually and is based upon a subjective evaluation by the participant’s manager(s) and encompasses the
overall performance of the individual for the fiscal year. 

  
 Individual performance will also include an evaluation of each area’s commitment to Tidewater’s safety program overall. This measurement will carry a weight of 25% of the individual’s total
award. 
  
 Included as part of the individual performance
measure may be an area specific test. This test may be optional by area and would consist of zero to two specific criteria relevant to a given area. Each participant will be advised of any specific test for that fiscal year. Some examples would be
the percent improvement in receivables over a period of time, delinquent receivables collected, revenue enhancement achieved over a period of time, utilization, or other such criteria as deemed appropriate. When an area specific test is utilized,
the particular measurement will be weighted as part of the individual performance weight. 
  

	 	3.	Special Test Group. 

  

	 	a.	Special Purpose Goals – Participants in this group will be assigned special purpose goals for fiscal 2006 by the participant’s manager. See Exhibit 4. These goals will
have a weight of 25%. 

  

	 	b.	Individual Performance – Individual performance is determined annually and is based upon a subjective evaluation by the participant’s manager(s) and encompasses the
overall performance of the individual for the fiscal year. 

  
 Individual performance will also include an evaluation of each area’s commitment to Tidewater’s safety program overall. This measurement will carry a weight of 25% of the individual’s total
award. 
  
 Included as part of the individual performance
measure may be an area specific test. This test may be optional by area and would 

  

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consist of zero to two specific criteria relevant to a given area. Each participant will be advised of any specific test for that fiscal year. Some examples
would be the percent improvement in receivables over a period of time, delinquent receivables collected, revenue enhancement achieved over a period of time, utilization, or other such criteria as deemed appropriate. When an area specific test is
utilized, the particular measurement will be weighted as part of the individual performance weight. 
  

	 	c.	Return on Total Capital Percentage – Under this test, Tidewater’s ROTC% above a certain threshold will be used to determine a portion of the individual’s incentive
pay. This measure is weighted 25%, but certain members of this group will have the opportunity to earn up to 150% of this 25% for exceptional ROTC achievement. See Exhibit 4. 

  

	 	d.	Safety – This measurement is determined by achievement of Tidewater’s overall established safety performance goals for the fiscal year or the safety goals of a specific
area. The safety performance measurement will carry a weight of 25%, but certain members of this group will have the opportunity to earn up to 150% of this 25% for exceptional safety performance. See Exhibit 4. 

  

	VI.	AWARD CALCULATIONS 

  

	 	A.	Development of Incentive Funding Pool 

  
 The actual amount of the incentive pool to be awarded depends upon the attainment of specified corporate performance measures as set forth in Section V-A.
Each corporate measurement will operate independently of one another in creating the funding pool for annual incentive awards. Thus, the Company could achieve above threshold on one performance measure and below threshold on another performance
measure and still have funds available in the annual incentive pool. 
  
 Exhibit 2, attached, provides a matrix example of how the size of the incentive funding pool would be calculated at different levels of corporate performance. 
  
 The Matrix also shows: 
  

	 	•	 	The percentage of aggregate target incentives paid for all plan participants; and 

  

	 	•	 	The total amount of money allocated to the incentive funding pool for fiscal 2006. 

  

	 	•	 	The greater emphasis for fiscal year 2006 is placed upon ROTC performance measures. As such, the payouts under those measurements are almost twice that of the adjusted net income
component. 

  

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	 	B.	Individual Awards. 

  
 The incentive funding pool is allocated to individual plan participants by the performance measures set forth in Section V-B. 
  
 Each Division will also be looked at independently of one another;
therefore, it is possible for one Division to receive individual awards for meeting performance criteria and not the other if it does not reach its performance criteria. However, the overall corporate performance measures must be positive before
consideration of any incentive awards. 
  
 The size of each
divisional incentive pool is based upon the number of eligible participants in each division. For example, if the Company meets target goals, each participant’s annual base salary is multiplied by the participant’s target percent amount.
All target amounts are then added together to produce the total pool for that division. Each divisional pool would be adjusted based upon the actual results of the overall corporate performance measurements. 
  

	VII.	   AWARD PAYMENTS 

  
 Awards will be payable in cash, as soon as administratively possible following the time that the Company’s earnings for the fiscal year are released
to the public, but no later than June 15 of the following fiscal year. 
  

	VIII.	   TRANSFERS 

  
 In the event that a participant transfers from one position to another during the course of the year, his/her award for the year will be calculated on a
pro-rata basis according to the proportion of time spent in each position during the year. 
  

	IX.	   RETIREMENTS AND TERMINATIONS 

  
 To receive an award under the MAIP, the participant must be actively employed on the last day of the performance cycle. At the discretion of the Chief
Executive Officer and with the approval of the Compensation Committee of the Board of Directors, a participant who separates from service prior to the end of the performance cycle may be granted an award. The amount of the award, if any, will be
based in part upon the length of time employed during the performance cycle. 
  

	X.	   PLAN ADMINISTRATION 

  
 The MAIP will be administered by Tidewater’s Chief Executive Officer, who may delegate certain elements of program administration to the Chief
Financial Officer and the Director of Employee Benefits. Actual performance goals, standards, and award determinations will be approved by the Compensation Committee of the Board of Directors. 
  

	XI.	  MISCELLANEOUS 

  

	 	  A.	Nothing in this Plan shall confer upon a participant any right to continue in the employment of the Company, or to interfere in any way with the right of the Company to terminate
the participant’s employment relationship with the Company at any time. 

  

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	 	B.	The Plan shall be governed by and construed in accordance with the laws of the State of Louisiana. 

  

	 	C.	If any term or provision of the Plan, shall at any time or to any extent be invalid, illegal or unenforceable in any respect as written, the participant and the Company intend for
any court construing the Plan to modify or limit such provision so as to render it valid and enforceable to the fullest extent allowed by law. Any such provision that is not susceptible of such reformation shall be ignored so as to not affect any
other term or provision hereof, and the remainder of the Plan, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid, illegal or unenforceable, shall not be affected thereby and each
term and provision of the Plan shall be valid and enforced to the fullest extent permitted by law. 

  

	 	D.	The Company’s obligation under the Plan is an unsecured and unfunded promise to pay benefits that may be earned in the future. The Company shall have no obligation to set
aside, earmark or invest any fund or money with which to pay its obligations under the Plan. The participant or any successor in interest shall be and remain a general creditor of the Company in the same manner as any other creditor having a general
claim for matured and unpaid compensation. 

  

	 	E.	The Company shall have the right to terminate the plan at any time in its sole discretion. 

  

	 	F.	The Company shall deduct from any payment made hereunder all applicable federal and state income and employment taxes. 

  

 11Agreement, dated May 27, 2005

 Exhibit 10.1 
  
 AGREEMENT 
  
 This Agreement, dated as of May 27, 2005 (this “Agreement”), by and among Caduceus Capital Master Fund Limited, Caduceus Capital II, L.P.,
OrbiMed Advisors LLC (“OrbiMed Advisors”) and OrbiMed Capital LLC (collectively, along with their respective Associates and Affiliates, as hereinafter defined, the “Caduceus Group”), and BioMarin Pharmaceutical Inc., a Delaware
corporation (the “Company”), sets forth the parties’ agreement with respect to the nominees for director at the Company’s 2005 Annual Meeting of Stockholders (the “Annual Meeting”) and various other matters related
thereto and described below. 
  
 In consideration of the mutual
agreements set forth herein, intending to be legally bound hereby, the Company and each of the members of the Caduceus Group, jointly and severally, agree as follows: 
  
 1. Board Composition; Recommendation; Proxy Supplement. 
  
 (a) The Company agrees that there will be seven (7) nominees to the
Company’s Board of Directors (the “Board”) for election at the Company’s Annual Meeting. Such nominees will be Jean-Jacques Bienaime, Franz L. Cristiani, Elaine J. Heron, Pierre Lapalme, and Erich Sager, all of whom currently
serve on the Board (the “Continuing Nominees”), as well as Joseph Klein, III and Alan J. Lewis (the “New Nominees,” and, collectively with the Continuing Nominees, the “Nominees”). The Board will recommend that the
stockholders of the Company vote to elect the Nominees as directors of the Company. 
  
 (b) Within ninety (90) days following the date of the Annual Meeting, the Board will increase the size of the Board to eight (8) directors and, thereafter, at the recommendation of the Corporate Governance and
Nominating Committee (the “Committee”), appoint an additional director to the Board that is reasonably acceptable to OrbiMed Advisors. The Committee shall consult with OrbiMed Advisors concerning potential nominees prior to making such
recommendation to the Board. 
  
 (c) Promptly following the date
hereof, the Company will prepare and file with the Securities and Exchange Commission (the “SEC”) a supplement (the “Supplement”) to the Company’s definitive proxy statement, dated May 23, 2005, that gives effect to the
foregoing and will mail the Supplement concurrent therewith to the Company’s stockholders. Thereafter, the Company will solicit proxies for the Nominees in accordance with the Supplement and will cause all proxies received by the Company
pursuant to the Supplement to be voted in accordance with the instructions specified in the related proxy card. The Company agrees that the Supplement and any other solicitation materials to be delivered to stockholders in connection with the Annual
Meeting shall be prepared in accordance with the terms of this Agreement. 
  
 2. Caduceus Group Proxy Statement; Voting and Recommendation. 
  
 (a) The Caduceus Group shall immediately cease any and all efforts with respect to the solicitation of proxies for the Annual Meeting, except as
hereinafter provided, and hereby irrevocably withdraws the nomination of each of the persons submitted to the Company as nominees on April 15, 2005. 

 (b) The Caduceus Group shall not make any public objection to the election of each of the Nominees at the
Annual Meeting or any other public statement inconsistent with the provisions of this Agreement. The Caduceus Group shall vote all shares of the Voting Securities (as hereinafter defined) which they are entitled to vote at the Annual Meeting in
favor of the election of each of the Nominees at the Annual Meeting. 
  
 (c) Simultaneously with the execution of this Agreement, the Caduceus Group has provided to the Company (i) the consents required by applicable law for the New Nominees to be included in the Supplement and any other solicitation materials
delivered by the Company to the stockholders in connection with the Annual Meeting and (ii) the irrevocable withdrawal of Richard B. Brewer as a nominee. The Caduceus Group shall use its reasonable best efforts to cause the New Nominees to promptly
provide to the Company any other information required by applicable law for the New Nominees to be included in the Supplement or such other solicitation materials. 
  
 (d) The Caduceus Group irrevocably withdraws its demand for a stockholder list and other materials pursuant to Section 220
of the Delaware General Corporation Law or otherwise, and shall promptly return to the Company all materials and summaries or duplicates thereof that have been delivered to the Caduceus Group or its representatives prior to the date hereof. The
Caduceus Group shall not vote or cause to be voted any proxies that may be received pursuant to the definitive proxy statement of the Caduceus Group, dated May 23, 2005, and shall deliver any such proxies to Morrow & Co., Inc. 
  
 3. Additional Covenants of the Caduceus Group. 
  
 (a) During the period commencing on the date hereof and ending on January 1,
2007 (the “Restricted Period”), the Caduceus Group will not, and will cause their Affiliates and Associates not to, directly or indirectly: 
  
 (i) make, engage, or in any way participate in any “solicitation” (as such term is used in the proxy rules of the SEC) of
proxies or consents (whether or not relating to the election or removal of directors) with respect to the Company, seek to advise, encourage or influence any Person (as hereinafter defined) with respect to the voting of any Voting Securities,
initiate, propose or otherwise “solicit” (as such term is used in the proxy rules of the SEC) stockholders of the Company for the approval of stockholder proposals whether made pursuant to Rule 14a-8 or Rule 14a-4 under the Securities
Exchange Act of 1934 (the “Exchange Act”) or otherwise, induce or attempt to induce any other Person to initiate any such stockholder proposal, or otherwise communicate with the Company’s stockholders or others pursuant to Rule
14a-1(1)(2)(iv) under the Exchange Act; 
  

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 (ii) form, join or in any way participate in any “group” (within the meaning of
Section 13(d)(3) of the Exchange Act) with respect to any Voting Securities, other than a group consisting solely of the members of the Caduceus Group as identified herein; 
  
 (iii) deposit any Voting Securities in any voting trust or subject any Voting Securities to any arrangement
or agreement with respect to the voting of any Voting Securities; 
  
 (iv) otherwise act, alone or in concert with others, to control or seek to control the management, the Board or the policies of the Company; 
  
 (v) seek, alone or in concert with others, representation on the Board or the removal of any member of the
Board; 
  
 (vi) make any publicly disclosed
proposal or enter into any discussion regarding any of the foregoing, or make any proposal, statement or inquiry, or disclose any intention, plan or arrangement (whether written or oral) inconsistent with the foregoing, or make or disclose any
request to waive or terminate any provision of this Agreement; or 
  
 (vii) take or cause or induce others to take any action inconsistent with any of the foregoing. 
  
 (b) In the event that the Board increases the size of the Board to more than eight (8) directors at any time during the Restricted Period (other than an
increase related to a merger or acquisition of another Person by the Company), the provisions of this Section 3 shall automatically terminate. 
  
 4. Expenses. Immediately following the certification of the results of the votes taken at the Annual Meeting, the Company will reimburse the
Caduceus Group for the actual out-of-pocket fees and expenses incurred by the Caduceus Group prior to the date hereof in connection with its solicitation of proxies and the matters contemplated by this Agreement, not to exceed $250,000 in the
aggregate. All other fees and expenses incurred by each of the parties hereto in connection with the matters contemplated by this Agreement will be borne by such party. 
  
 5. Specific Performance. Each of the members of the Caduceus Group, on the one hand, and the Company, on the other
hand, acknowledges and agrees that irreparable injury to the other party would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury
would not be compensable in damages. It is accordingly agreed that each party hereto (the “Moving Party”) shall be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof and the other
parties hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. 
  

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 6. Release. (a) The Caduceus Group hereby agrees for the benefit of the Company, and each officer,
director, shareholder, agent, Affiliate, employee, partner, attorney, heir, assign, executor, administrator, predecessor and successor, past and present, of the Company (the Company and each such person being a “Company Released Person”)
as follows: 
  
 (i) The Caduceus Group, for themselves and for
their members, officers, directors, assigns, agents and successors, past and present, hereby agree and confirm that, effective from and after the date of this Agreement, they hereby acknowledge full and complete satisfaction of, and covenant not to
sue, and forever fully release and discharge each Company Released Person of, and hold each Company Released Person harmless from, any and all rights, claims, warranties, demands, debts, obligations, liabilities, costs, attorneys’ fees,
expenses, suits, losses and causes of action (“Claims”) of any nature whatsoever, whether known or unknown, suspected or unsuspected, arising in respect of or in connection with, the nomination and election of directors at the Annual
Meeting, occurring any time or period of time on or prior to the date of the execution of this Agreement (including the future effects of such transactions, occurrences, conditions, acts or omissions). 
  
 (ii) The undersigned understand and agree that the Claims released by the
Caduceus Group above include not only those Claims presently known but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come
within the scope of the Claims as described above. The Caduceus Group understands that they may hereafter discover facts different from or in addition to what they now believe to be true, which if known, could have materially affected this Release
of Claims, but they nevertheless waive any claims or rights based on different or additional facts. The Caduceus Group knowingly and voluntarily waive any and all rights or benefits that they may now have, or in the future may have, under the terms
of Section 1542 of the California Civil Code, which provides as follows: 
  
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.” 
  
 (b) The Company hereby
agrees for the benefit of the Caduceus Group, and each officer, director, shareholder, agent, Affiliate, employee, partner, attorney, heir, assign, executor, administrator, predecessor and successor, past and present, thereof, as well as each of the
New Nominees and Richard Brewer (the Caduceus Group and each such person being a “Caduceus Released Person”) as follows: 
  
 (i) The Company, for itself and for its Affiliates, officers, directors, assigns, agents and successors, past and present, hereby agrees and confirms
that, effective from and after the date of this Agreement, it hereby acknowledges full and complete satisfaction of, and covenants not to sue, and forever fully releases and discharges each Caduceus Released Person of, and holds each Caduceus
Released Person harmless from, any and all Claims of any nature whatsoever, whether known or unknown, suspected or unsuspected, arising in respect of or in connection with, the nomination and election of directors at the Annual Meeting, occurring
any time or period of time on or prior to the date of the execution of this Agreement (including the future effects of such transactions, occurrences, conditions, acts or omissions). 
  

 4 

 (ii) The undersigned understand and agree that the Claims released by the Company above include not only
those Claims presently known but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of the Claims as
described above. The Company understands that it may hereafter discover facts different from or in addition to what it now believes to be true, which if known, could have materially affected this Release of Claims, but it nevertheless waives any
claims or rights based on different or additional facts. The Company knowingly and voluntarily waives any and all rights or benefits that it may now have, or in the future may have, under the terms of Section 1542 of the California Civil Code, which
provides as follows: 
  
 “A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
  
 7. No Waiver. Any waiver by any party of a breach of any provision of
this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement
on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 
  
 8. Press Release. Upon execution of this Agreement, the Company and the Caduceus Parties will issue a joint press
release in the form attached hereto as Exhibit A. 
  
 9.
Certain Definitions. As used in this Agreement, (a) the term “Person” shall mean any individual, partnership, corporation, group, syndicate, trust, government or agency thereof, or any other association or entity; (b) the terms
“Affiliates” and “Associates” shall have the meanings set forth in Rule 12b-2 under the Exchange Act and shall include persons who become Affiliates or Associates of any Person subsequent to the date hereof; and (c) the term
“Voting Securities” shall mean the Company’s Common Stock and any other securities of the Company entitled to vote in the election of directors, or securities convertible into, or exercisable or exchangeable for Common Stock or other
securities, whether or not subject to the passage of time or other contingencies. 
  

 5 

 10. Successors and Assigns. All the terms and provisions of this Agreement shall inure to the
benefit of and shall be enforceable by the successors and assigns of the parties hereto. 
  
 11. Entire Agreement; Amendments. This Agreement contains the entire understanding of the parties with respect to its subject matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings other than those expressly set forth herein. This Agreement may be amended only by a written instrument duly executed by the parties or their respective successors or assigns. 
  
 12. Headings. The section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 13. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed
to have been duly given if so given) by hand delivery, cable, telecopy or telex, or by mail (registered or certified, postage prepaid, return receipt requested) to the respective parties as follows: 
  
 If to the Company: 

			
	
	BioMarin Pharmaceutical Inc.
	105 Digital Drive
	Novato, California 94949
	Facsimile:	 	(415) 382-7889
	Attention:	 	G. Eric Davis, Esq.,
	 	 	Vice President, Corporate Counsel

  
 with a copy to: 

			
	
	Skadden, Arps, Slate, Meagher & Flom LLP
	525 University Avenue, Suite 1100
	Palo Alto, California 94301
	Facsimile:	  	(650) 470-4570
	Attention:	  	Gregory Smith, Esq.

  
 If to the Caduceus Group: 

			
	
	OrbiMed Advisors LLC
	767 Third Avenue, 30th Floor
	New York, New York 10017
	Facsimile:	  	212-739-6444
	Attention:	  	Samuel D. Isaly

  

 6 

 with a copy to: 
  

			
	Shearman & Sterling LLP
	599 Lexington Avenue
	New York, New York 10022
	Facsimile:	  	212-848-7179
	Attention:	  	Stephen Besen, Esq.

  
 or to such other address as the person
to whom notice is given may have previously furnished to the others in writing in the manner set forth above. 
  
 14. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California, without
reference to the conflict of laws principles thereof, and each of the parties hereto agree that any action or proceeding relating to or arising out of this Agreement shall be adjudicated in the courts of California. 
  
 15. Counterparts. This Agreement may be executed in counterparts
(including by facsimile transmission), each of which shall be an original, but each of which together shall constitute one and the same Agreement. 
  
 16. Severability. If any provision of this Agreement shall be deemed or declared to be unenforceable, invalid or void, the same shall not impair
any of the other provisions of this Agreement. 
  

 7 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, each of the undersigned parties has
executed or caused this Agreement to be executed as of the date first above written. 
  

			
	 BioMarin Pharmaceutical Inc.

		
	 By:
	 	  

	 Name:
	 	 Jean-Jacques Bienaimé

	 Title:
	 	 Chief Executive Officer

	
	 Caduceus Capital Master Fund Limited

	 By OrbiMed Capital LLC, investment advisor

		
	By:	 	  

	Name:	 	Sven Borho
	Title:	 	General Partner
	
	Caduceus Capital II, L.P.
	By OrbiMed Advisors LLC, general partner
		
	By:	 	  

	Name:	 	Sven Borho
	Title:	 	General Partner
	
	OrbiMed Advisors LLC
		
	By:	 	  

	Name:	 	Sven Borho
	Title:	 	General Partner
	
	OrbiMed Capital LLC
		
	By:	 	  

	Name:	 	Sven Borho
	Title:	 	General Partner

  

 8

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