Document:

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                                                                   Exhibit 10.11

                                  CONFIDENTIAL

***PORTIONS OF THE EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.
THE COMPLETE EXHIBIT, INCLUDING THE PORTIONS FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

                               RESEARCH AGREEMENT
                        GENENCOR INTERNATIONAL, INC. AND
                          THE PROCTER & GAMBLE COMPANY

        This Agreement is effective June 30, 2000, between GENENCOR
INTERNATIONAL, INC. (together with its Affiliates, "GCOR"), a Delaware
corporation with offices at 200 Meridian Centre Boulevard, Rochester, New York
14618, and THE PROCTER & GAMBLE COMPANY, (together with its Affiliates, "P&G"),
an Ohio corporation with offices at One Procter & Gamble Plaza, Cincinnati, Ohio
45202.

        WHEREAS, P&G has unique skills and technology specific to the
development and use of laundry and cleaning product formulations desired by
consumers and institutional users, and has the ability to manufacture and sell
such products globally;

        WHEREAS, GCOR has unique skills and technology specific to the
development of enzymes and other materials obtainable from biological systems,
and has the ability to commercially supply such enzymes and other materials in
industrial quantities;

        WHEREAS, the Parties desire to enter into this Agreement to cooperate in
an iterative program of specific research projects, which utilize each Party's
unique abilities;

        WHEREAS, the Parties desire to agree upon specific Success Criteria for
each specific research project with the challenging goal of identifying new raw
materials which can be formulated into laundry and cleaning products as well as
certain other products sold by P&G to provide breakthrough levels of consumer
noticeable benefits;

        WHEREAS, the Parties recognize the highly uncertain nature of the
research projects desired to be conducted, including the uncertainty regarding
whether one or both Parties may develop new technologies of value to one or both
of the Parties; and

        WHEREAS, the Parties contemplate that their research efforts may yield
Patent Rights which the Parties desire to license to each other consistent with
this Agreement and a Technology Transfer Agreement ("TTA"), which TTA is entered
into simultaneously herewith relating to certain current as well as these
prospective Patent Rights:

        THEREFORE, in consideration of the mutual promises herein, the Parties
agree as follows.

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1.      DEFINITIONS

        A.   "Field of Agreement" means enzymes or other materials obtained from
             biological systems whether living or non-living (hereafter
             "Materials") purposefully added to a formulation of Laundry and
             Cleaning Products, but shall not include Materials used ***.

        B.   "Project" means an investigation of formulations, concepts,
             technologies, processes, procedures, tests, standards or
             manufacturing processes for Materials in the Project Field and for
             new or improved Materials within the Field of Agreement.

        C.   "Project Form" means (i) when executed by one Party, that Party's
             proposal to initiate a Project on a confidential basis and with
             certain requirements or specifications (a "Proposed Project"), and
             (ii) when executed by both Parties, the Parties' mutual agreement
             to share certain results or specifications in a Project Field and
             to undertake a Project (an "Approved Project").

             Approved Projects will commence immediately upon mutual execution
             of the applicable Project Form (as set out in ATTACHMENT 1), which
             shall include Project Success Criteria and a project milestone
             plan, and related Confidential Disclosure Agreement (as set out in
             ATTACHMENT 2A). All Approved Projects shall take the form of either
             Research Projects or Development Projects.

        D.   "Research Project" means an Approved Project devoted primarily to
             research activities and continuing until the earlier of: (1) a
             written notice by the Leadership Committee or either Party that the
             Approved Project is terminated and no Development Project will
             result; or (2) mutual execution of a Project Form for a resulting
             Development Project as defined below.

        E.   "Development Project" means an Approved Project, which is
             designated a Development Project, and commencing upon mutual
             execution of a Project Form, which may include revised Success
             Criteria (including commercial criteria) and based upon written
             recommendation of the Leadership Committee, which Approved Project
             shall be devoted primarily to development activities.

        F.   "Project Administrator" means for each Party, the individual whose
             name, address and fax number are entered by such Party on the
             Project Form or such other persons as may thereafter be designated
             by written notice from time to time. At any given time, there will
             be no more or less than one (1) Project Administrator per Party per
             Approved Project.

        G.   "Project Field" means an investigation of formulations, concepts,
             technologies, processes, procedures, tests, standards or
             manufacturing processes for Materials under an Approved Project
             within the Field of Agreement.

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        H.   "Laundry and Cleaning Products" means products for ***.

        I.   "Success Criteria" means for each Approved Project, deliverables,
             timetables, detailed specifications and other mutually agreed
             measures of success, all set out in writing in the applicable
             Project Form. Success Criteria shall include either technical
             criteria, commercial criteria or both, as appropriate to the
             applicable Approved Project.

        J.   "Observable Benefit" means for any Material provided hereunder, a
             benefit measured by a jointly agreed objective technical test
             established by the Leadership Committee, which benefit results from
             the use of such Material in commercially reasonable dosages in a
             Laundry and Cleaning Product.

        K.   "Leadership Committee" means the committee composed and empowered
             under the terms of SUBSECTIONS 3.H-J  below.

        L.   "Non-Project Materials" means Materials not identified or developed
             under an Approved Project but sampled for analysis in the Approved
             Project by either Party. Non-Project Materials should be so
             designated in writing by the sampling Party within 30 days of being
             sampled into an Approved Project.

        M.   "Patent Rights" means patent applications and patents issuing
             therefrom (both foreign and domestic) which claim an invention
             conceived and/or reduced to practice pursuant to an Approved
             Project. Patent Rights shall include those inventions presently
             listed in SCHEDULE 1 or subsequently listed in SCHEDULE 2 of the
             Technology Transfer Agreement.

        N.   As used herein, the term "Affiliates" for P&G means any corporation
             controlling, controlled by or under common control with The Procter
             & Gamble Company, through stock ownership, direct or indirect, and
             for GCOR means any corporation, controlled by or under common
             control with Genencor International, Inc. through greater than
             seventy-five percent (75%) stock ownership. Any other party
             constitutes a "non-Affiliate."

        O.   "*** Assay" shall mean activity and performance assays applicable
             to identification of Materials for the Field of Agreement or P&G's
             Business Field performed in a volume of less than *** which are
             directly related to and developed during an Approved Project.

        P.   "*** Assay Patent Rights" means inventions and patent applications
             and patents issuing therefrom (both foreign and domestic) which
             relate to or claim a *** assay or *** screen which is directly
             related to and developed during an Approved Project.

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        Q.   "Isolated Samples" means samples which are isolated or extracted
             from a Library before sampling, for evaluation in P&G's *** assays.

        R.   "Libraries" means multiple samples which are produced through an
             effort to identify Materials having desired performance
             characteristics.

2.      CONFIDENTIAL INFORMATION

        A.   Confidential Information shall have the meaning set out in
             ATTACHMENT 2A and shall include cumulatively all Confidential
             Information under any duly executed Confidential Disclosure
             Agreement ("CDA"). Confidential Information relating to chemical
             information useful in the development of screening methods will
             be shared relating to the following: 1) the ***, including, for
             example, ***; 2) methods for *** used under current technology;
             and 3) the relevant conditions under which the *** under current
             technology. All Confidential Information disclosed in connection
             with any Project Form and related Proposed Project shall be
             protected by such a CDA executed by the Parties. Upon execution
             by both Parties of a Project Form such applicable CDA shall be
             incorporated therein. CDA's shall include those listed and
             attached here as a part of ATTACHMENT 3. Applicable CDA's shall
             also be attached to each applicable Project Form and be
             incorporated therein by reference. ATTACHMENT 2A provides a
             standard CDA form for use in relation to each Project Form.

             For clarity, the Parties acknowledge that each Party has an
             interest in *** assays outside the Field of Agreement, only
             information which is important for the development of assays
             correlating to the identification and/or application of materials
             in laundry and cleaning products should be shared under this
             agreement. This may include information on the textile or fiber
             used in the assay, the substrate used, detection methods and
             detergent chemistry. The information shared should not include
             information such as ***.

        B.   For Materials provided prior to execution of this Research
             Agreement, under those Material Transfer Agreements listed and
             attached hereto as ATTACHMENT 4, the Parties have agreed that
             such Materials shall hereafter be governed by the terms set out
             in this Research Agreement. The terms herein shall control over
             any inconsistent terms contained in the respective Material
             Transfer Agreements, which are hereby terminated effective as of
             the execution of this Research Agreement. Further, in the event
             that either Party provides samples of materials prior to entering
             into an Approved Project, the Parties agree to execute a Standard
             Material Transfer Agreement covering the terms under which these
             samples will be provided and received; a sample form of this
             agreement is provided as ATTACHMENT 2B. In the event that an
             Approved Project is subsequently entered into for such sampled
             materials, upon execution of the Project Form by both Parties to
             establish the Approved Project, all Material Transfer Agreements
             relating to sampled materials which are part of this Approved
             Project are terminated and the terms herein this

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             Research Agreement shall control over any inconsistent terms
             contained in these earlier Material Transfer Agreements. The
             Material Transfer Agreements relevant to each Approved Project
             shall be attached to each applicable Project Form.

        C.   Any Project Form, whether executed by one or both Parties, shall
             be deemed Confidential Information under the applicable CDA.

        D.   Upon termination or expiration of this Agreement or an Approved
             Project, all CDA's shall continue in force until termination or
             expiration under their own terms.

        E.   Either Party shall have the right to disclose Confidential
             Information to any of its Affiliates which are involved in the
             performance of this Agreement, provided the Affiliate in advance
             has agreed in writing to be bound by the terms of this Agreement
             and the applicable CDAs, and that this Party shall be liable to the
             other Party to the extent that any of its Affiliates breach any
             secrecy or other obligations.

3.      PROJECT INITIATION AND ADMINISTRATION

        A.   Either Party may propose a Project by first obtaining execution by
             both Parties of an applicable CDA and thereafter by forwarding two
             copies of a completed Project Form, signed by the initiating Party
             and including its Project Administrator, the fully executed CDA and
             proposed Success Criteria.

        B.   The Party receiving a completed Project Form shall consider in good
             faith the Proposed Project and, within the time specified in the
             Project Form, shall give notice, by returning a duly executed copy
             of the Project Form, that the initiating Party agrees to the
             Proposed Project. The Project Form, duly executed by both Parties,
             shall then become the basis for an "Approved Project" to which the
             terms of this Agreement apply. Alternatively, the receiving Party
             may decline to execute the Project Form, or may notify the
             initiating Party that the Receiving Party wishes to pursue the
             Proposed Project, but under modified Success Criteria. Further,
             prior to entering into an Approved Project, the Parties may agree
             that materials should be sampled in order to more fully consider
             the Proposed Project; such sampled materials shall be shared
             under the terms of the Standard Material Transfer Agreement, a
             sample form of which is attached as ATTACHMENT 2B.

        C.   If either Party declines to participate in a Proposed Project,
             neither Party shall have any obligation concerning such Proposed
             Project, except as arise under the applicable CDA, Material
             Transfer Agreements (if any), and SECTION 2 AND SUBSECTION 7.C of
             this Agreement, and either Party may pursue such Project with any
             other party.

        D.   Each Party shall provide executed Project Forms to both Project
             Administrators within ten (10) days of execution by that Party.

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        E.   Until both Parties have executed the applicable Project Form, no
             Party is obligated under any Proposed Project. This Agreement's
             terms and conditions shall apply only to any Approved Projects
             entered into under this Agreement. Except for Approved Projects,
             nothing in this Agreement shall prevent either Party from entering
             into other projects with other parties, nor is either Party
             required by this Agreement to first offer such projects to the
             other Party before offering such projects to a non-Party.

        F.   The Parties agree that Materials and formulations provided to it
             by the other Party shall be used solely for the purposes intended
             and necessary for the Approved Project to which the sampled
             Materials or formulations are being provided, with the exception
             that P&G shall have the right to test certain Materials outside the
             Field of Agreement but within P&G's Business Field under the
             procedures as provided hereinafter in SECTION 5. Further, the
             Parties recognize that in some circumstances there may be the need
             for special handling (e.g., non-analysis of samples) of Materials
             or formulations being supplied to the other Party under an Approved
             Project. Such special handling requirements shall be observed by
             the Party receiving the special sample if the special handling
             procedures are provided in writing to the receiving Party's Project
             Administrator for each Approved Project to which the special sample
             relates and the Project Administrator approves such special
             handling requirements in writing prior to the special sample being
             sent for that Project Administrator's Approved Project, or if such
             special handling procedures are authorized in writing by the
             Leadership Committee prior to the special samples being sent.

        G.   Neither Party shall, during any Approved Project and for a time
             thereafter as specified herein, transfer or disclose to third
             parties for use within the Field of Agreement, any Materials or
             know how resulting from an Approved Project and provided to the
             other Party for evaluation. Also, neither Party will, during any
             Approved Project and for a time thereafter as specified below,
             collaborate with third parties in a Project with substantially the
             same Success Criteria as any Approved Project. Each party shall
             otherwise be free to receive, evaluate and commercially use
             (including supply and/or purchase) Materials for all purposes with
             any third party, subject only to the provisions of this Agreement,
             the applicable CDA and the TTA.

        H.   Each Party shall appoint up to three (3) representatives to serve
             as members of the Leadership Committee to direct specific Approved
             Projects and the overall course of activities under this Agreement.
             Decision of the Leadership Committee shall require a unanimous
             vote.

        I.   Subject to the oversight and approval of the Parties, the
             Leadership Committee shall be responsible for the following:

             (1)  Overall direction of the Approved Projects, including
                  financial requirements for the Approved Projects and directing
                  activities of the Project Administrator(s);

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             (2)  Monitoring, updating and modifying, if necessary, all
                  current Approved Projects.

             (3)  Determination that a Research Project is completed and
                  recommendation of new or revised Success Criteria for a
                  Development Project;

             (4)  Scheduling and conducting biannual reviews, or such more
                  frequent reviews as the Leadership Committee determines
                  necessary;

             (5)  Preparation and approval of the Success Criteria, consistent
                  with the terms of this Agreement;

             (6)  Reviewing inventions made pursuant to an Approved Project
                  with patent counsel and facilitating patent filings as
                  pursued by the appropriate Party.;

             (7)  Recommending to the Parties the licensing of third party
                  technology and/or intellectual property, (if any) as
                  necessary for the enhancement of any Approved Project as
                  needed.

        J.   Each Party shall notify the other within thirty (30) days after the
             effective date of this Agreement of the names of its Leadership
             Committee members. The Leadership Committee shall have no authority
             to modify or amend the terms of this Agreement. Any dispute or
             issue that cannot be resolved by the Leadership Committee shall be
             referred to senior management of the Parties to be resolved by
             them.

4.      APPROVED PROJECTS

        A.   Each Party shall promptly undertake performance of an Approved
             Project as set forth in the applicable Project Form. During each
             Approved Project, the Parties will endeavor to perform their
             respective duties and to develop and submit to each other any
             deliverables identified in the Approved Project's Success Criteria.

        B.   All work on Approved Projects shall be directed and controlled by
             the designated Project Administrator of each Party, subject to
             the oversight of the Leadership Committee.

        C.   P&G will pay GCOR for the research conducted under this Agreement
             as follows.

             *** of this Agreement until June 30, 2003, for a total of One
             Million Five Hundred Thousand Dollars ($1,500,000), with payment to
             be made by P&G *** no later than ***. In the event that P&G earlier
             terminates this Agreement by giving written notice to GCOR pursuant
             to SUBSECTION 7.B below on or before the June 30 end of a contract
             year, then ***.

             In addition, upon signing of the Success Criteria for an Approved
             Project to enter into a Development Project phase from a Research
             Project conducted under this Agreement, a Supplier Advance shall
             become due from P&G to GCOR and shall be payable within 2 months of
             signing the Success Criteria for such Development Project). The
             Supplier Advance shall be based on ***.

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             Further, in the event that the Parties enter directly into an
             Approved Project at the Development Project phase without having
             had a preceding Research Project phase, P&G shall pay GCOR a
             Supplier Advance based on ***. All such payments under this
             paragraph shall become due upon mutual agreement that GCOR has met
             the previously agreed to and signed Success Criteria for such
             Development Project, and shall be payable within two (2) months
             thereafter. ***.

             Any amounts which become due under this SUBSECTION C prior to any
             expiration or termination of the Agreement shall be non-refundable.

        D.   Notwithstanding the other terms of this Agreement: (1) GCOR shall
             continue to have the right to use Non-Project Materials sampled
             by GCOR outside the Field of Agreement; and (2) Non-Project
             Materials sampled by GCOR which show no commercially relevant
             Observable Benefits in the Project Field shall be immediately
             released from the Approved Project for sampling and supply by
             GCOR to third parties in all Fields. For such Non-Project
             Materials which show no Observable Benefit, P&G shall grant to
             GCOR at GCOR's request a non-exclusive, royalty-free license
             (with the right to sublicense) under all applicable Patents
             Rights owned or exclusively controlled by P&G pursuant to this
             Agreement or the TTA, necessary to make, have made, use and sell
             such Non-Project Materials.

             Notwithstanding the other terms of this Agreement: (1) P&G shall
             have the right to use Materials outside the Field of Agreement only
             pursuant to SECTION 5 hereinafter, with the exception that for
             Non-Project Materials sampled by P&G, P&G shall continue to have
             the right to use such Non-Project Materials outside the Field of
             Agreement; and (2) Non-Project Materials sampled by P&G which show
             no Observable Benefits in the Project Field shall be immediately
             released from the Approved Project for sampling and supply by P&G
             to third parties in all fields. For such Non-Project Materials
             which show no Observable Benefit, GCOR shall grant to P&G at P&G's
             request a non-exclusive, royalty-free license (with the right to
             sublicense) under all applicable patent Rights owned or exclusively
             controlled by GCOR pursuant to this Agreement or the TTA, necessary
             to make, have made, use and sell such Non-Project Materials.

        E.   Further, Project Materials that show no Observable Benefit in the
             Project Field may be released from the Approved Project for
             sampling and supply by one or both of the Parties to third parties
             in all fields by agreement of the Leadership Committee, but
             sampling of such Material shall not require grant by either Party
             to the other Party of licenses under applicable Patent Rights owned
             or exclusively controlled by the other Party pursuant to this
             Agreement or the TTA.

5.      FIRST REFUSAL FOR SIGNIFICANT MATERIALS

        A.   During the term of this Agreement and for a period of two (2) years
             thereafter, P&G shall have the right of first refusal to receive
             samples of all Approved Project Materials

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            (excluding Non-Project Materials) which demonstrate an Observable
            Benefit in an Approved Project ("Significant Materials") prior to
            GCOR providing for evaluation such Significant Materials to any
            third party for use outside the Field of Agreement but within P&G's
            Business Field. P&G may request GCOR's approval to test such
            Significant Materials for use outside of the Field of Agreement but
            within P&G's Business Field at any time during this period, which
            approval shall not unreasonably be withheld by GCOR. Sampling of
            such Significant Materials following GCOR's approval shall be under
            the terms as provided hereinafter under SUBSECTIONS 5.E AND 5.F. In
            the event that GCOR denies this P&G request, GCOR shall continue to
            be obligated to first offer such Significant Materials to P&G prior
            to GCOR sampling to any third party for evaluation within P&G's
            Business Field.

        B.  For purposes of this Agreement, P&G's Business Field shall mean ***.

        C.  Prior to GCOR sampling any third party such Significant Materials
            for use within a designated segment of P&G's Business Field, GCOR
            shall offer P&G the right to receive a sample of each such relevant
            Significant Material for P&G's evaluation in the designated segment
            of P&G's Business Field.

        D.  P&G shall advise GCOR in writing within thirty (30) days whether it
            wishes to exercise its right to receive such a sample of the
            applicable Significant Material. In the event that P&G has no
            interest in receiving a sample of the offered Significant Material
            for use outside the Field of Agreement within P&G's Business Field,
            then GCOR shall be free to sample such Significant Material to third
            parties for evaluation in the designated segment of P&G's Business
            Field outside the Field of Agreement as offered to P&G.

        E.  If P&G elects (by written notice) to receive a sample, then P&G
            shall have two (2) months from the receipt of such sample of the
            relevant Significant Material to evaluate P&G's interest within the
            relevant portion of P&G's Business Field and to provide GCOR with
            written notice of such interest. During P&G's evaluation, and upon
            receipt of such notice from P&G, GCOR shall refrain from sampling
            such Significant Material to third parties until the Parties
            negotiate in good faith for an agreement to further research use of
            such Significant Material for commercialization by P&G of GCOR
            supplied Material. If after six (6) months of good faith
            negotiations immediately following the two (2) month P&G evaluation,
            the Parties cannot agree on terms of an agreement for further
            research, then GCOR shall be free to sample such Significant
            Material to third parties for evaluation in the designated segment
            of P&G's Business Field; and P&G shall thereafter be free to pursue
            with third parties its interest in the use of this Significant
            Material within the designated segment of P&G's Business Field.

        F.  In the event the Parties fail to execute a research agreement as
            provided for in SUBSECTIONS 5.E, then GCOR shall grant to P&G at
            P&G's request a non-exclusive, royalty-free license (with the right
            to sublicense) under all applicable Patent Rights owned or
            exclusively controlled by GCOR pursuant to this

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            Agreement or the TTA, necessary for P&G to make, have made, use and
            sell such Significant Materials within P&G's Business Field but such
            license shall not apply to any other Materials. In return, P&G shall
            grant GCOR a first right of refusal to manufacture such Significant
            Materials on terms to be negotiated in good faith by both Parties.
            In the event the Parties fail to reach agreement after such good
            faith negotiations, P&G shall not thereafter purchase such
            Significant Materials on terms more advantageous to a third party
            supplier than those it offered to GCOR.

6.      PATENT RIGHTS

        A.  Ownership of Inventions - All Patent Rights except *** Assay Patent
            Rights shall be owned by the Inventing Party (for purposes hereof,
            "Inventing Party" shall mean the Party whose employees or agents
            conceived and reduced to practice the invention claimed in a given
            Patent Right). *** Assay Patent Rights shall be owned by GCOR
            regardless of inventorship.

        B.  Prosecution of Patent Applications - Each Party agrees to provide
            the other's Project Administrator with timely notification of all
            invention disclosures resulting from an Approved Project, as well as
            all filing decisions, filing dates, issue dates and patent numbers
            which are associated with such invention disclosures. The Inventing
            Party shall be responsible at its expense to prepare, file,
            prosecute and maintain its Patent Rights, provided that both Parties
            will cooperate with each other in reviewing, drafting and
            prosecuting the Patent Rights of the other to the extent deemed
            necessary to optimize such patent efforts.

            Any patent application directed to Patent Rights shall not be filed
            without notice to the other Party. The other Party will be given at
            least ten (10) working days to review and comment on said patent
            application, unless the other Party agrees on a term shorter than 10
            days.

        C.  Unless otherwise agreed, each Party shall pay for the prosecution
            and maintenance of Patent Rights, except as provided in SUBSECTION
            6.D.

        D.  Each Party shall receive timely notice and the right to assume
            prosecution and maintenance of any Patent Right which the other
            (owning) Party elects to abandon.

            Further, if a Party desires to file a patent application in
            countries other than those the owning Party desires to file in, the
            other party shall be free to file such patent application in the
            desired other countries at its own expense.

7.      DURATION AND TERMINATION OF AGREEMENT

        A.  Unless terminated under SUBSECTION 7.B below, this Agreement shall
            continue in force until June 30, 2003. The term of this Agreement
            may be extended beyond June 30, 2003 on an annual basis upon the
            mutual written agreement of the Parties

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            for payment and other details concerning each such extension.

        B.  Either Party may terminate this Agreement in its entirety or any
            Approved Project (without terminating the entire agreement) at any
            time by giving written notice at least ninety (90) days before such
            termination becomes effective. Termination of this Agreement will
            end consideration of Proposed Projects and shall terminate all
            Approved Projects and all further P&G funding payments, unless such
            termination notice expressly provides otherwise.

        C.  Survival of Obligations - All licenses, ownership rights and all
            obligations relating to information about inventions, including CDA
            terms, which become effective prior to effective termination or
            expiration of an Approved Project or this Agreement shall survive.

        D.  Approved Projects begun under the Research Agreement between the
            Parties effective September 1, 1997 shall continue hereunder and
            shall be governed by the provisions contained in this Research
            Agreement with the exception that no Supplier Advance shall be owed
            for any Development Project existing prior to the June 30, 2000
            effective date of this Research Agreement.

8.      RIGHTS UPON TERMINATION

        A.  As used in this Agreement, collaboration with third parties (which
            includes subsequently established joint ventures or affiliations
            with, or through purchase, whole or in part, of or by parties who
            are third parties as of the date of signing of this Agreement) shall
            include: (i) discussing or conducting joint research and/or
            development work with a third party on Materials within the Project
            Field of the terminated Approved Project; and (ii) sampling, selling
            or buying for use in the Field of Agreement, Materials which were
            developed under the Approved Project or which were Non-Project
            Materials if the anticipated or actual use of this sampled Material
            has Observable Benefit within the Project Field.

        B.  Upon termination of a Research Project for any reason both Parties
            shall refrain from collaborating with third parties in the Project
            Field for five (5) years from the date of termination of the
            Approved Project. However, in the event that the Success Criteria
            for a Research Project are met and, within one year of having met
            such Success Criteria, one party declines or fails to decide to
            progress to a Development Project, then that Party (herein for
            purposes of this paragraph referred to as the "Terminating Party")
            shall not work with third parties to further develop or
            commercialize any Materials identified from the Research Project, or
            otherwise collaborate with third parties in the Project Field, for
            three (3) years and thereafter the Terminating Party shall be
            granted a non-exclusive, royalty-free license (without the right to
            sublicense non-Affiliates) under all applicable Patent Rights
            excluding *** Assay Patent Rights owned or exclusively controlled by
            the other Party pursuant to this Agreement or the TTA, necessary to
            then allow the Terminating Party to

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            collaborate with third parties on Materials within the Project
            Field. Further, the non-Terminating Party shall immediately be free
            to collaborate with third parties within or outside the Project
            Field. The Terminating Party shall grant to the other Party a
            non-exclusive, royalty-free license (without the right to sublicense
            non-Affiliates) under all applicable Patent Rights excluding ***
            Assay Patent Rights owned or exclusively controlled by the
            Terminating Party pursuant to this Agreement or the TTA, necessary
            to allow the other Party to collaborate immediately with third
            parties on Materials within the Project Field.

        C.  Upon termination of a Development Project as the result of P&G
            decisions or actions, including P&G's failure to meet its
            obligations under commercial criteria within the Success Criteria of
            the Development Project, then GCOR shall immediately be free to
            collaborate with third parties within or outside the Project Field.
            P&G shall grant to GCOR a non-exclusive, royalty-free license
            (without the right to sublicense non-Affiliates) under all
            applicable Patent Rights owned or exclusively controlled by P&G
            pursuant to this Agreement or the TTA, necessary to allow GCOR to
            collaborate with third parties on Materials within the Project
            Field. Moreover, P&G shall not collaborate with third parties in the
            Project Field for five (5) years and thereafter GCOR shall grant to
            P&G a non-exclusive, royalty-free license (without the right to
            sublicense non-Affiliates) under all applicable Patent Rights owned
            or exclusively controlled by GCOR pursuant to this Agreement or the
            TTA, necessary to allow P&G to collaborate with third parties on
            Materials within the Project Field.

        D.  Upon termination of a Development Project as the result of GCOR
            decision or actions, including GCOR's failure to meet its
            obligations under commercial terms set out in Success Criteria of
            the Development Project, then P&G shall immediately be free to
            collaborate with third parties within or outside the Project Field.
            GCOR shall grant to P&G a non-exclusive, royalty-free license
            (without the right to sublicense non-Affiliates) under all
            applicable Patent Rights except *** Assay Patent Rights owned or
            exclusively controlled by GCOR pursuant to this Agreement or the
            TTA, necessary to allow P&G to collaborate with third parties on
            Materials within the Project Field. Moreover, GCOR shall not
            collaborate with third parties in the Project Field for five (5)
            years, and thereafter P&G shall grant to GCOR a non-exclusive,
            royalty-free license (without the right to sublicense
            non-Affiliates) under all applicable Patent Rights owned or
            exclusively controlled by P&G pursuant to this Agreement or the TTA,
            necessary to allow GCOR to collaborate with third parties on
            Materials within the Project Field.

        E.  Upon termination of a Development Project as the result of mutual
            decision or actions of P&G and GCOR, including the Parties' failure
            to achieve technical criteria within the applicable Success Criteria
            or failure to agree on additional terms for a supply agreement other
            than those specific commercial obligations for each Party in Success
            Criteria of the applicable Development Project, then the Parties
            shall not collaborate with third parties in the Project Field for
            five (5) years, and thereafter

                                       12
<PAGE>   13

            both Parties shall grant to the other Party a non-exclusive,
            royalty-free license (without the right to sublicense
            non-Affiliates) under all applicable Patent Rights except *** Assay
            Patent Rights owned or controlled by the respective Party, necessary
            to allow the other Party to collaborate with third parties on
            Materials within the Project Field.

            In the event that termination of an Approved Project occurs during
            the Development Project and either Party is prohibited from
            collaborating with third parties for the period of five (5) years,
            the Parties shall still be permitted during this five (5) year
            period to take the following actions: (i) GCOR may after three (3)
            years, sample Materials to third parties, as well as discuss supply
            terms and requirements, provided such Materials shall be
            commercially available only after the expiration of the five (5)
            year period; and (ii) P&G may, after three (3) years, seek a
            supplier for Materials, as well discuss supply term and
            requirements, provided such Materials shall be commercially supplied
            to P&G only after the expiration of the five (5) year period.

        F.  For the term of five (5) years after termination in either of a
            Research Project or a Development Project, and regardless of when or
            how termination occurs, GCOR shall not offer third parties better
            terms for supply of Materials for use in the Project Field than
            offered to P&G, nor shall P&G accept from any alternative supplier,
            terms more favorable to that supplier than those offered by GCOR.

        G.  Upon termination after the Material is supplied on a commercial
            basis by GCOR to P&G, then the terms shall be as set out in the
            Heads of Supply (Appendix A) appended to the TTA.

        H.  For the absence of doubt, the P&G license as described in SUBSECTION
            2.1(iv) of the TTA shall survive any termination hereunder.

9.      LIMITED SCOPE OF THIS AGREEMENT

        A.  Other Agreements Not Precluded - This Agreement shall not prevent
            the Parties from entering into other agreements together nor shall
            it terminate duly executed, existing agreements.

        B.  No Warranties Created - No product or patent warranties are granted
            or implied hereunder. No obligation to make any products or to
            conduct infringement clearance on the other Party's products,
            utilizing the Patent Rights under this Agreement, is granted or
            implied.

10.     INTERPRETATION

        A.  Captions - Captions are for convenience only and not to be used in
            construing this Agreement.

                                       13
<PAGE>   14

        B.  Partial Invalidity - Any provision of this Agreement held invalid or
            illegal shall be severed from this Agreement and shall not impair or
            invalidate any other provision. Any severed provision shall be
            replaced by the valid, legal one which comes closest to such severed
            provision.

        C.  Conflict with Project Forms - This Agreement shall prevail in any
            conflict between its provisions and any Project Form, CDA, sales
            literature, order, acceptance, invoice, shipping document,
            correspondence, or other document.

        D.  Choice of Law - This Agreement shall be interpreted under the laws
            of Ohio, USA.

11.     GENERAL

        A.  Notices - All notices under this Agreement shall be in writing and
            effective either when served by personal delivery or three days
            after deposited, postage prepaid in registered or certified mail and
            addressed to the respective Project Administrators.

        B.  Non-assignment - Neither Party shall assign any rights and
            obligations under this Agreement or any Project Form without the
            other Party's prior written consent.

        C.  Independent Contractors - Nothing in this Agreement shall be deemed
            to create an agency, employer-employee, partnership or joint venture
            relationship between the parties. The parties are independent
            contractors. Neither party has the right to control the work of the
            other's employees.

        D.  Force Majeure - Neither Party shall be responsible for delay or
            failure to perform caused by events beyond its control. Each Party
            shall mitigate any damage caused by such events.

12.     WAIVER AND MODIFICATION

        No omission or delay in enforcing any right shall be a waiver of any
such right nor shall it affect a Party's ability to enforce such right
thereafter. This Agreement may be modified only by a writing executed by P&G and
GCOR.

        This Agreement is duly executed below by the Parties' duly authorized
officers.

<TABLE>
<CAPTION>

GENENCOR INTERNATIONAL, INC.                THE PROCTER & GAMBLE COMPANY

<S>                                         <C>
By :  /s/ CAROLE COBB                       By:   /s/  W.C. BERNDT
   -----------------------------------         -----------------------------------------------

Title:    Senior Vice President             Title: President, Fabric & Home Care Business Unit
      --------------------------------            --------------------------------------------

Date:    June 30, 2000                      Date:   June 30, 2000
     ---------------------------------           ---------------------------------------------
</TABLE>

                                       14

<PAGE>   15

                                  ATTACHMENT 1

                                  PROJECT FORM

        This Project Initiation Form is submitted under the Parties' Research
Agreement ("the Agreement") to establish an Approved Project upon mutual
execution below. Capitalized terms used here have the meanings assigned them in
the Agreement.

1.      The parties agree to an Approved Project relating to
        __________________________ which shall be directed to
        ________________________________________ and shall have the following
        objectives and/or features:

2.      The technical approach to be followed is:

3.      Milestone Plan

--------------------------------------------------------------------------------
Key Milestone                                     Timing
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                                 Very truly yours,

                                                 By:____________________________

                                                 Title:_________________________

ACCEPTED:  ____________ , 200____
                                                 Date:__________________________
By:______________________________

Title:___________________________
<PAGE>   16

                                 ATTACHMENT 2.A

                      STANDARD AGREEMENT FOR DISCLOSURE OF
                    PROCTER & GAMBLE CONFIDENTIAL INFORMATION
                         TO GENENCOR INTERNATIONAL, INC.

                                                    Effective Date: ____________

In order to protect certain proprietary, confidential information which may be
disclosed by the Procter & Gamble Company (herein "P&G") to Genencor
International, Inc. (herein "GCOR"), the parties agree that:

1.      The Discloser of confidential information hereunder is:

        The Recipient of confidential information hereunder is:

2.      The parties' representatives for disclosing or receiving confidential
        information are:

                                      (P&G)

                                      (GCOR)

3.      The confidential information disclosed under this Agreement is described
        as:
        ------------------------------------------------------------------------
        ------------------------------------------------------------------------

4.      This Agreement covers only confidential information which is disclosed
        between the effective date and the first anniversary of the Effective
        Date.

5.      GCOR's obligations regarding confidential information received under
        this Agreement expires on the fifth anniversary of the Effective Date.

6.      GCOR shall protect the confidential information against unauthorized
        disclosure using the same degree of care, but no less than a reasonable
        degree of care, as GCOR uses to protect its own confidential information
        of a like nature.

7.      GCOR shall be obligated to protect only such confidential information
        disclosed under this Agreement as is: (a) disclosed in tangible form
        clearly labeled as confidential at the time of disclosure, or (b)
        disclosed initially in non-tangible form identified as confidential at
        the time of disclosure and, within thirty days following the initial
        disclosure, summarized and designated as confidential in a written
        memorandum delivered to the GCOR's representative named in PARAGRAPH 2
        above.

<PAGE>   17

8.      This Agreement imposes no obligation upon GCOR with respect to any
        confidential information disclosed under this Agreement which: (a) was
        in the GCOR's possession before receipt from P&G; or (b) is or becomes a
        matter of public knowledge through no fault of GCOR; or (c) is
        rightfully received by GCOR from a third party without a duty of
        confidentiality; or (d) is disclosed by P&G to a third party without
        duty of confidentiality on the third party; or (e) is independently
        developed by GCOR; or (f) is disclosed under operation of law; or (g) is
        disclosed by GCOR with P&G's prior written approval.

9.      P&G warrants that it has the right to make the disclosures under this
        Agreement, and all such disclosures are at its sole discretion.

10.     Neither party acquires any intellectual property rights (including any
        right to prepare or file patent applications in any jurisdiction) under
        this Agreement; neither party has an obligation under this Agreement to
        purchase any service or item from the other party, or to deal
        exclusively with the other party in any field; and neither party has an
        obligation under this Agreement to offer for sale products using or
        incorporating the confidential information.

11.     GCOR shall adhere to the U.S. Export Administration Laws and Regulations
        and shall not export or re-export any technical data or products
        received from P&G or the direct products of such technical data to any
        proscribed country listed in the U.S. Export Administration Regulations
        unless properly authorized by the U.S. Government.

12.     The parties do not intend that any agency or partnership relationship be
        created between them by this Agreement.

13.     All additions or modifications to this agreement must be made in writing
        and must be signed by both parties. This Agreement is made under and
        shall be construed according to the laws of the State of Ohio.

Genencor International, Inc.                     The Procter & Gamble Company

Address:                                         Address:

200 Meridian Centre Boulevard                    One Procter & Gamble Plaza
Rochester, New York  14618                       Cincinnati, Ohio  45202

By:                                              By:
   ---------------------------                      ---------------------------
   ---------------------------                      ---------------------------
           Printed Name                                     Printed Name

Title:                                           Title:
      ------------------------                         -------------------------

<PAGE>   18

                                 ATTACHMENT 2.B

            STANDARD PROCTER & GAMBLE / GENENCOR INTERNATIONAL, INC.
                  AGREEMENT ON PROVISION OF BIOLOGICAL MATERIAL

        We appreciate the interest of The Procter & Gamble Company ("P&G") in
        obtaining a sample of the Biological Material from Genencor
        International, Inc. ("GCOR"). In order for GCOR to supply P&G with the
        Biological Material P&G requested, we ask P&G to agree to the following
        conditions. Please note agreement by your signature at the end of both
        copies of the Letter Agreement, keep one copy, and return one to the
        attention of the person from whom P&G requested the Biological Material
        at the following address:

                  Genencor International, Inc.
                  925 Page Mill Road
                  Palo Alto, California  94304-1013

1.      The following "Biological Material" will be supplied to P&G by GCOR in
        reasonable research quantities (describe):

        ------------------------------------------------------------------------
        ------------------------------------------------------------------------

        Any biological or chemical material or compound, directly or indirectly,
        derived from the foregoing Biological Material supplied by GCOR, and any
        medium in which such Biological Material is provided, is expressly
        understood to be part of the "Biological Material" and is covered by the
        conditions set forth in this Agreement, as are all documentation and
        descriptions of the Biological Material.

2.      The address or site at which the Biological Material will be used is

        ------------------------------------------------------------------------

3.      The Biological Material will be used only for research purposes under
        all suitable and necessary containment conditions and will not be used
        on, in, or for human subjects.

4.      a.     The Biological Material will not be supplied to other
               laboratories, either within or outside of P&G, nor to any other
               individual or organization other than employees of the requesting
               P&G Laboratory and will not be used, directly or indirectly, for
               any Commercial Purpose unless agreed otherwise in writing by
               GCOR. For purposes of this Agreement, Commercial Purpose shall
               include the preparing or filing of any patent application in any
               jurisdiction. Each person employed by P&G will be informed of the
               terms and conditions of this Letter Agreement prior to allowing
               such employee(s) to have access to Biological Material and P&G
               agrees not to allow access or transfer the Biological Material to
               any employee or other person unless such employee is bound by an
               employment or confidentiality

<PAGE>   19

               agreement or other agreement requiring assignment of all
               inventions, patents and copyrights to P&G's Laboratory or
               Organization.

        b.     The Biological Material may not be used, directly or indirectly,
               in any "sponsored research" or other research programs if the
               terms of such sponsorship or program would entitle the sponsor or
               any third party to any rights or interests in such research or
               its results, including the right to review and/or publish such
               results.

5.      a.     The Biological Material will be used only as follows (describe):

        b.     P&G shall keep and maintain written records of all use of the
               Biological Material and the individual(s) allowed access to such
               Materials. GCOR shall have the right to review and copy such
               records at any time.

        c.     P&G acknowledges that the Biological Material supplied hereunder
               is obtained only for purposes stated herein and P&G obtains no
               intellectual property or other rights in the Biological Material
               supplied under this Agreement. P&G shall take all care necessary
               to prevent disclosure of any information concerning the
               Biological Material to any party who is not bound by the terms of
               this Agreement.

6.      P&G shall not analyze, attempt to analyze, or have analyzed the
        composition or formulation of the Biological Material.

7.      It is understood that P&G shall not publish or disclose outside of the
        Laboratory or Organization the results of experiments using the
        Biological Material, except with the prior written consent of GCOR,
        which consent shall not be untimely or unreasonably withheld.

8.      P&G agrees that prior to any approved publication or disclosure of
        results or any use of the Biological Material, P&G or P&G co-workers
        will promptly provide advance copies of such results to GCOR.

9.      P&G agrees not to apply for any foreign or domestic patents, nor to seek
        any copyright without the prior written consent of GCOR, with
        appropriate terms and conditions to be negotiated in each case as a part
        of any such prior written consent. If such patent or copyright should
        issue, notwithstanding the sentence above, P&G grants to GCOR (i) an
        irrevocable worldwide, paid-up, non-exclusive, royalty-free license
        under any patents based on the Biological Material whether such patents
        are granted in the name of the Laboratory or Organization, or any
        employee who had access to the Biological Material together with the
        right to sublicense and, (ii) an irrevocable paid-up, royalty-free,
        perpetual license under any copyright which might be obtained for any
        publication referring, directly or indirectly, to the Biological
        Material.

<PAGE>   20

10.     The Biological Material provided by GCOR should be considered
        experimental and should be handled with appropriate safety precautions.
        However, in cases where a Material Safety Data Sheet is available for
        the Biological Material, it will be supplied and the handling
        precautions contained therein should be followed. GCOR makes no
        expressed or implied warranties of any kind with respect to the
        Biological Material. P&G hereby indemnifies and holds GCOR harmless from
        any and all liability and/or damages (including costs of defense)
        resulting from the use of the Biological Material, including any use of
        the Biological Material which they might permit or allow to third
        parties.

11.     Nothing contained in this Agreement shall be construed as granting a
        license or other right to P&G under any proprietary rights of GCOR.

12.     By executing this Agreement, the undersigned represent that they are
        authorized on behalf of their respective organization to enter into this
        Agreement and bind their organization.

        Sincerely,

        Genencor International, Inc.

        Signature: ____________________________

        Name: _________________________________

        Title: ________________________________

        Accepted and Agreed:

        Individual Requester: ______________________________

        and

        The Procter & Gamble Company

        Signature: _________________________________________

        Date: ______________________________________________<PAGE>   1
                                                                   EXHIBIT 10.12

                         TECHNOLOGY TRANSFER AGREEMENT

        This Agreement is effective June 30, 2000, between GENENCOR
INTERNATIONAL, INC. (together with its Affiliates, "GCOR"), a Delaware
corporation with offices at 200 Meridian Centre Boulevard, Rochester, New York
14618, and THE PROCTER & GAMBLE COMPANY, (together with its Affiliates, "P&G"),
an Ohio corporation with offices at One Procter & Gamble Plaza, Cincinnati, Ohio
45202.

        WHEREAS, P&G has unique skills and technology specific to the
development and use of laundry and cleaning product formulations desired by
consumers and institutional users, and has the ability to manufacture and sell
such products globally;

        WHEREAS, GCOR has unique skills and technology specific to the
development of enzymes and other materials obtainable from biological systems,
and has the ability to commercially supply such enzymes and other materials in
industrial quantities;

        WHEREAS, the Parties have concurrent with this Agreement entered into a
Research Agreement to cooperate in an iterative program of specific research
projects, which utilize each Party's unique abilities, based upon mutually
agreed specific Success Criteria for each specific Research or Development
Project with the challenging goal of identifying new materials which can be
formulated into Laundry and Cleaning Products sold by P&G to provide Observable
Benefits;

        WHEREAS, the Parties recognize the highly uncertain nature of the
Research or Development Projects to be conducted, including the uncertainty
regarding whether one or both Parties may develop new technologies or skills of
value to one or both of the Parties; and

<PAGE>   2

        WHEREAS, the Parties contemplate that their research or development
efforts may yield patents which the Parties desire to license to each other
consistent with the Research Agreement, the Parties hereby enter into this
Agreement relating to licensing of current Patent Rights (set out in SCHEDULE 1
and incorporated herein by reference) and future Patent Rights (to be set out in
SCHEDULE 2, and incorporated herein by reference) to technology developed
through Approved Projects under the Research Agreement;

        WHEREAS, in order for the Parties to obtain a reasonable return on their
investment of money and development efforts exerted to develop Materials under
the Research Agreement, and to be able to exploit any Patent Rights under this
Agreement, it is necessary for P&G to be exclusively supplied by GCOR with the
Materials developed under the Research Agreement, the essential terms of this
supply being defined by the attached "Heads of Supply Agreement" (APPENDIX A,
incorporated herein by reference in its entirety);

        THEREFORE, in consideration of the mutual promises herein, the Parties
agree as follows.

1.      DEFINITIONS

1.1     Capitalized Terms.

        Capitalized Terms used throughout this Agreement and not otherwise
        defined herein shall bear the meanings set out in definitions in the
        Research Agreement.

1.2     Additional Definitions.

        "Patent Rights" means patent applications and patents issuing therefrom
        (both foreign and domestic) which claim an invention conceived and/or
        reduced to practice pursuant to an Approved Project. Patent Rights shall
        include those inventions presently listed in SCHEDULE 1 and subsequently
        listed in SCHEDULE 2.

                                       2

<PAGE>   3

        "Territory" means the World;

1.3     Contents and Headings.

        The contents page and headings are included for convenience only and
        shall not affect the interpretation or construction of this Agreement.

1.4     References.

        In this Agreement, unless the context requires otherwise, any reference
        to:

        (a)  a Party or the Parties is to a party or the parties (as the case
             may be) to this Agreement;

        (b)  a person includes a firm, corporation and unincorporated
             associations, government, state, or agency of state, any
             association or partnership or joint venture (whether or not having
             a separate legal personality);

2.      LICENSES

2.1     Grant of Licenses.

        In consideration of the payment by P&G of certain sums of money for
        portions of the research under the Research Agreement, as well as the
        expending by GCOR of certain sums for portions of such research, and the
        mutual obligations of independent research undertaken by each Party
        under the terms of the Research Agreement, as well as other promises and
        supply commitments accompanying this Agreement, the Parties hereby grant
        the following licenses under relevant Patent Rights;

                  (i) P&G grants to GCOR for use in the Territory an exclusive
                  license to make, have made, use and sell Materials per se,
                  Material stock preparations

                                        3
<PAGE>   4

                  supplied by GCOR (including formulations and granulations),
                  and any other Materials and formulations to be supplied by
                  GCOR developed under an Approved Project, as well as methods
                  for manufacturing said Materials, stock preparations, raw
                  Materials and/or formulations, under any applicable Patent
                  Rights owned solely by P&G or jointly by P&G and GCOR;

                  (ii) GCOR grants to P&G for use in the Territory an exclusive
                  license to make, have made, use and sell Laundry and Cleaning
                  Products within the Field of Agreement, and to use such
                  Laundry and Cleaning Products within the Field of Agreement,
                  under any applicable Patent Rights owned solely by GCOR or
                  jointly by GCOR and P&G;

                  (iii) P&G grants to GCOR for use in the Territory an exclusive
                  license to make, have made, use and sell all other
                  compositions other than Laundry and Cleaning Products, and to
                  use such other compositions outside the Field of Agreement
                  under any applicable Patent Rights owned solely by P&G, or
                  jointly by P&G and GCOR; and

                  (iv) GCOR grants to P&G a non-sublicensable, royalty free,
                  non-exclusive, worldwide license to Bench Top Assay Patent
                  Rights for use internally within P&G. Outside the Field of
                  Agreement P&G is free to exercise these rights with the
                  limitation that only Isolated Samples may be screened. Within
                  the Field of Agreement P&G will, during the Agreement period,
                  only exercise these rights for the benefit of the joint
                  research performed under an Approved Project.

        The licenses granted here by P&G and GCOR shall continue for the life of
        the applicable Patent Rights, unless otherwise determined pursuant to
        terms under the Research Agreement or Heads of Supply Agreement.

                                       4
<PAGE>   5

2.2     Exclusivity.

        The exclusive licenses granted pursuant to SUBSECTION 2.1 (i-iii) shall
        mean that the licensor shall not have the right to grant within the
        Field of Agreement third parties licenses under any of the licensed
        Patent Rights to make, have made, use or sell the licensed products or
        processes as specified in SUBSECTION 2.1 (i-iii) and that the licensor
        shall retain for itself only the right to use the licensed Patent Rights
        for its internal research, development and other non-commercial
        purposes.

2.3     Obligations in Lieu of Royalties.

        P&G shall negotiate the terms of a supply agreement for P&G's exclusive
        purchase and GCOR's exclusive supply of Materials in the Field of
        Agreement on terms which include those agreed to in the attached Heads
        of Supply Agreement (APPENDIX A).

2.4     Discontinuance of Patent Prosecution.

        For any Patent Right licensed hereunder, the prosecuting Party (as
        determined in accordance with the Research Agreement) may discontinue
        its obligation to prepare, file, prosecute and maintain particular
        Patent Right(s) by providing the other Party (the "Assuming Party") with
        thirty (30) days advance written notice (the "Discontinuance Election")
        of any decision to cease preparation, filing, prosecution or maintenance
        of that Patent Rights (a "Discontinued Patent"). In such case, the
        Assuming Party may, at its sole discretion, continue preparation, filing
        or prosecution or maintenance of the Discontinued Patent at its sole
        expense. In such case, the Assuming Party shall own exclusively any such
        Discontinued Patent; and the Party discontinuing its obligation to
        prosecute and maintain such Discontinued Patent shall execute such
        documents and perform such acts as may be reasonably necessary for the
        Assuming Party to file or to continue prosecution or maintenance,
        including assigning ownership of such patents and/or patent applications
        to the Assuming Party and maintaining such patents and/or

                                       5
<PAGE>   6

        patent applications until such assignment of ownership is completed.
        Discontinuance may be on a country-by-country basis or for a patent
        application or patent series in total.

2.5     Subsequent Licensed Technology

        The Parties expect that under their Research Agreement, additional
        Patent Rights shall be developed or acquired and herewith agree that
        such Patent Rights shall be added periodically by written mutual
        agreement as a part of SCHEDULE 2. The license to all such subsequently
        developed or acquired Patent Rights shall be the same as that set out in
        SECTION 2.1 above.

2.6     Infringement

        In the event that the Parties become aware of infringement within the
        Field of Agreement of Patent Rights exclusively licensed to one Party,
        the Parties agree to discuss whether and on what terms the assignee
        and/or exclusive licensee will take action to abate such infringement.
        Regardless of whether assignee and/or exclusive licensee takes such
        action to abate infringement, it is agreed that neither Party shall
        settle or abate such infringement by granting any right to the Patent
        Rights in the Field of Agreement without the prior written consent of
        the other. In the event that only one Party takes the action to abate
        such infringement, the amount of cooperation rendered by the
        non-enforcing Party to the other Party shall be left to the business
        judgment of the non-enforcing Party.

2.7     Further Assurances

        Each party shall, promptly on the other's request and at the other's
        cost, execute any further documents or take any steps in relation to the
        license referenced under SECTION 2.1 above in order to give full effect
        to this Agreement, including by registering the same at any patent
        office or offices within the Territory. Any such further documents shall
        operate subject to the terms of this Agreement.

                                       6
<PAGE>   7

3.      INTERPRETATION

        A.     Captions - Captions are for convenience only and not to be used
               in construing this Agreement.

        B.     Partial Invalidity - Any provision of this Agreement held invalid
               or illegal shall be severed from this Agreement and shall not
               impair or invalidate any other provision. Any severed provision
               shall be replaced by the valid, legal one which comes closest to
               such severed provision.

        C.     Conflict with Other Agreements - This Agreement shall prevail in
               any conflict between its provisions and any CDA, sales
               literature, order, acceptance, invoice, shipping document,
               correspondence, or other document.

D.      Choice of Law - This Agreement shall be interpreted under the laws of
        Ohio, USA.

4.      GENERAL

        A.     Notices - All notices under this Agreement shall be in writing
               and effective either when served by personal delivery or
               deposited, postage prepaid in registered or certified mail and
               addressed to the respective Contract Administrators.

        B.     Term and Termination - Unless otherwise agreed by the Parties,
               this Agreement shall continue until the termination of the
               Research Agreement, on June 30, 2003 or earlier pursuant to
               SUBSECTION 7.B of the Research Agreement. All licenses,
               ownership rights and all obligations relating to information
               about inventions, including CDA terms, which become effective
               prior to effective termination or expiration of an Approved
               Project, this Agreement, or the Research Agreement (including
               SECTION 8, "Rights Upon Termination"), shall survive.

        C.     Non-assignment - Neither Party shall assign any rights and
               obligations under this

                                       7
<PAGE>   8

               Agreement without the other Party's prior written consent.

        D.     Independent Contractors - Nothing in this Agreement shall be
               deemed to create an agency, employer-employee, partnership or
               joint venture relationship between the parties. The parties are
               independent contractors. Neither party has the right to control
               the work of the other's employees.

        E.     Force Majeure - Neither Party shall be responsible for delay or
               failure to perform caused by events beyond its control. Each
               Party shall mitigate any damage caused by such events.

5.      WAIVER AND MODIFICATION

        No omission or delay in enforcing any right shall be a waiver of any
        such right nor shall it affect a Party's ability to enforce such right
        thereafter. This Agreement may be modified only by a writing executed by
        P&G and GCOR.

This Agreement is duly executed below by the Parties duly authorized officers.

GENENCOR INTERNATIONAL, INC.        THE PROCTER & GAMBLE COMPANY

By:   /s/  CAROLE COBB              By:   /s/ W.C. BERNDT
   ----------------------------        -----------------------------------------
                                           President
                                           Fabric & Home Care Business Unit
                                           Procter & Gamble Worldwide
Title:  Sr. Vice President
      ------------------------

Date:   June 30, 2000               Date:     June 30, 2000

                              APPROVED AS TO FORM         APPROVED FOR EXECUTION

                              -------------------         ----------------------

                              Date                        Date
                                  ---------------             ------------------

                                       8
<PAGE>   9

                                   APPENDIX A

                            HEADS OF SUPPLY AGREEMENT

The Parties hereby agree to the following terms for incorporation into a full
Supply Agreement to be negotiated in good faith by the Parties covering
Materials developed under an Approved Project, as incorporated into GCI
Products, developed under the Research Agreement between the Parties dated June
30, 2000.

        1. P&G agrees to buy exclusively from GCI 100% of its requirements of
the Material for use at least 10 years from the date of national distribution in
each country of a P&G product containing such Material within the Field of
Agreement, and thereafter GCI shall have the right to extend this P&G obligation
to the life of the last to expire Patent Rights in each country where there is
an extant Patent Right. Subject to the termination provisions in this Agreement
(including PARAGRAPHS 3-6 hereinafter) and in the Research Agreement (including
SECTION 8 therein), nothing in this paragraph is to be viewed as requiring P&G
to purchase the Material for 10 years.

        2. GCI agrees to sell exclusively to P&G the Material for at least 10
years from the date of national distribution in each country of a P&G product
containing said Material within the Field of Agreement, and thereafter P&G shall
have the right to extend this GCI obligation for exclusive supply within the
Field of Agreement to the last to expire Patent Right in each country where
there is an extant Patent Right. Subject to the termination provisions in this
Agreement (including PARAGRAPHS 3-6 hereinafter) and in the Research Agreement
(including SECTION 8 therein), nothing in this paragraph is to be viewed as
requiring GCI to sell the Material for 10 years.

        3. If after the term of any Supply Agreement for a Material P&G stops
buying this Material without replacing this Material with another Material
supplied by GCI acceptable for use in the P&G products, or if during the term of
any Supply Agreement for a Material GCI breaches or terminates (for other than
cause) the Supply Agreement, then GCI shall immediately be free to sell this
Material to third parties for use within the Field of Agreement, and P&G shall
grant to GCI a non-exclusive, royalty-free license (without the right to
sublicense non-Affiliates) under all applicable Patent Rights owned or
exclusively controlled by P&G pursuant to the Research Agreement or the TTA
necessary to allow GCI to sell this Material to third parties for use within the
Field of Agreement. Moreover, P&G shall not collaborate with third parties or
use this Material within the Field of Agreement (unless supplied by GCI) for
five (5) years and thereafter GCI shall grant to P&G a non-exclusive,
royalty-free license (without the right to sublicense non-Affiliates) under all
applicable Patent Rights owned or exclusively controlled by GCI pursuant to the
Research Agreement or the TTA necessary to allow P&G to collaborate with third
parties and use this Material within the Field of Agreement. However, in the
event that this Material is replaced by another Material supplied by GCI, then
exclusivity of supply to P&G shall be maintained for both Materials pursuant to
the terms of SECTION 2 above.

        4. If during or after the term of any Supply Agreement for a Material
GCI stops selling this Material without replacing this Material with another
Material supplied by GCI acceptable

                                       1
<PAGE>   10

for use in the P&G products, then P&G shall immediately be free to buy this
Material from third parties for use within the Field of Agreement, and GCI shall
grant to P&G a non-exclusive, royalty-free license (without the right to
sublicense non-Affiliates) under all applicable Patent Rights owned or
exclusively controlled by GCI pursuant to the Research Agreement or the TTA
necessary to allow P&G to buy this Material from third parties for use within
the Field of Agreement. Moreover, GCI shall not collaborate with third parties
or sell this Material for use within the Field of Agreement for five (5) years
and thereafter P&G shall grant to GCI a non-exclusive, royalty-free license
(without the right to sublicense non-Affiliates) under all applicable Patent
Rights owned or exclusively controlled by P&G pursuant to the Research Agreement
or the TTA necessary to allow GCI to collaborate with third parties and sell
this Material for use within the Field of Agreement. However, in the event that
this Material is replaced by another Material supplied by GCI, then exclusivity
of purchase by P&G shall be maintained for both Materials pursuant to the terms
of SECTION 1 herein before.

        5. Failure to Supply: If during the term of any Supply Agreement for a
Material GCI fails to supply this Material without replacing this Material with
another Material supplied by GCI acceptable for use in the P&G products, GCI
will arrange for supply to be reestablished over the shortest period of time
possible, whether this is at a GCI facility or through an arrangement with an
alternative supplier (such other supplier to be approved by P&G). In the event
that GCI cannot supply, P&G shall have the right to arrange for an alternative
supplier, provided however that GCI's proprietary information shall be
safeguarded by an appropriate confidential non-disclosure agreement and non-use
other than for the purpose of its supply agreement with P&G; provided further
that GCI shall provide a non-exclusive, royalty-free license to such alternative
supplier procured by P&G covering the technology and know-how required to
produce the Material, including but not limited to samples of the Materials
and/or the microorganisms used to produce the Material, as well as GCI paying
any expenses for any upcharges associated with P&G obtaining the alternate
supplied Material, with a cap on these upcharges to be negotiated in good faith
as part of all Supply Agreements.

Further, in addition to the above ability for P&G being free to buy the Material
from third parties for use within the Field of Agreement, GCI shall grant to P&G
a non-exclusive, royalty-free license (without the right to sublicense
non-Affiliates) under all applicable Patent Rights owned or exclusively
controlled by GCI pursuant to the Research Agreement or the TTA necessary to
allow P&G to buy such Material from third parties for use within the Field of
Agreement. GCI shall not collaborate with third parties or sell this Material
for use within the Field of Agreement for five (5) years and thereafter P&G
shall grant to GCI a non-exclusive, royalty-free license (without the right to
sublicense non-Affiliates) under all applicable Patent Rights owned or
exclusively controlled by P&G pursuant to the Research Agreement or the TTA
necessary to allow GCI to collaborate with third parties and sell this Material
for use within the Field of Agreement. However, in the event that this Material
is replaced by another Material supplied by GCI, then exclusivity of purchase by
P&G shall be maintained for both Materials pursuant to the terms of SECTION 1
herein before.

        6. Both parties agree to work together in good faith to reduce costs,
and in furtherance of that principle agree to the following.

<PAGE>   11

            Before a Development Project is initiated, P&G and GCI shall agree
upon commercial Success Criteria for the Initial Supply Agreement which will
include: price, initial supply duration, annual minimum volume necessary to
ensure exclusivity, time necessary to achieve such minimum volumes, and a
price/volume/time matrix ("the Matrix").

        7. In the event that P&G purchases a protease Material developed under
the Research Agreement, pursuant to terms set out in this Appendix A, proteases
earlier developed jointly with GCI under earlier Protease Research Agreements
will not be early released from exclusive supply to P&G.

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