Document:

Exhibit 10.14

 

RESTATEMENT AND AMENDMENT

OF

STRATEGIC RELATIONSHIP AGREEMENT

 

PARTIES:

 

1.             NEDERLANDSE ORGANISATIE
VOOR TOEGEPAST-NATUURWETENSCHAPPELIJK ONDERZOEK TNO (Netherlands Organization
for Applied Scientific Research) a corporation, company or organization duly
organized and existing under the laws of the Netherlands and having its
principal place of business at Delft, the Netherlands, hereinafter referred to
as: “TNO”;

 

2.             BEYOND GENOMICS,
INC., a corporation, company or organization duly organized and existing under
the laws of the state of Delaware, USA, having its principal place of business
at 40 Bear Hill Road, Waltham MA 02451, USA, hereinafter referred to as: “BG”;

 

WHEREAS: BG is developing and
applying a new generation of research tools and technologies for understanding
systems biology. BG collaborates with strategic partners and leverages its
technology platform across a portfolio of applications in drug discovery,
product development and diagnostics. TNO possesses unique expertise in the field
of Metabolomics and associated bioinformatics, and

 

WHEREAS, TNO and BG entered into a Strategic
Relationship Agreement dated January 26, 2001, as amended (“Original Agreement”)
and now wish to restate and amend the Original Agreement.

 

NOW,
THEREFORE, in consideration of the above premises and the
mutual covenants and promises herein contained, TNO and BG agree as follows:

 

1.             PURPOSE
AND SCOPE

 

BG  and TNO recognize the potential to develop significant
value together under this Restatement and Amendment of Strategic Relationship
Agreement (the “Agreement”) in the area of metabolite profiling and pattern
recognition based complex samples analysis within the field of Systems Biology.
BG and TNO are interested in working together in the area of Metabolomics.  The purpose of this Agreement is to establish the
conditions under which the parties hereto will determine the specifics of the
future business relationship and cooperation between BG and TNO in the area of
Metabolomics.

 

2.             DEFINITIONS

 

2.1           “Affiliates” shall
mean, with respect to the contract parties a party, a company, corporation,
partnership, joint venture or other legal entity which is controlled directly
by one of the contract parties, on the basis of 50% or more of the shares or
voting rights in such legal entity.

 

2.2           “BG” shall mean Beyond Genomics,
Incorporated, as being the contract party.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

1

 

2.3           “BG Field of Use”
shall mean Systems Biology, excluding the TNO Field of Use as described in
Section 2.25

 

2.4           “BG Biological Sample
Intellectual Property Rights” shall mean all Intellectual Property Rights
(without regard to the limitations imposed by the BG Field of Use) arising from
the measurement of biological samples and/or associated data analyses by TNO on
behalf of BG and/or its clients subject to Section 17, to the extent that it
applies. Potential types of Intellectual Property Rights that may be developed
in connection with sample measurement/analysis include but are not limited to
biomarkers, drug targets, candidate disease genes, and the like.

 

2.5           “Contract
Services” shall mean the services in the area of Metabolomics to be
provided to BG by TNO.

 

2.6           “Effective Date”
shall mean January 1, 2004.

 

2.7           “European Economic
Area” shall mean all member states to the Agreement on the European
Economic Area, of 13 December 1993, official journal 1994, L1/3, as amended
from time to time.

 

2.8           “Exclusive Period” shall mean the period during which the license to
Existing Intellectual Property Rights set forth in Section 6.1 shall be exclusive.

 

2.9           “Existing Intellectual
Property Rights” shall mean the TNO Patent Rights and other Intellectual
Property Rights set forth in Exhibit B and all other TNO Intellectual
Property Rights existing on the Effective Date that may be added to Exhibit B pursuant
to Section 6.11.

 

2.10         “Forecast” shall mean
a (3) month rolling forecast delivered to TNO, by BG, on the Effective Date and
at the beginning of each calendar year. The Forecast shall include a list of
projects and an estimate of required personnel and equipment resources
consistent with each BG project plan (i.e., in terms of sample analysis and
method development). TNO will confirm this Forecast and inform BG on the
capacity planning (personnel, equipment etc) necessary to achieve the goals set
forth and the necessary budget. This Forecast will be updated by BG and TNO on
a monthly basis.

 

2.11         “Future TNO Intellectual
Property Rights” shall mean Intellectual Property Rights created,
developed, conceived and reduced to practice solely by employees and/or
consultants of TNO applicable to Metabolomics during the Initial Restatement
Period and any extension thereof, outside of the performance of Contract
Services.

 

2.12         “Future Joint/Contract Intellectual Property Rights” shall mean Intellectual Property
Rights created, developed, conceived and reduced to practice: (i) jointly by
employees and/or consultants of BG and employees and/or consultants of TNO or
(ii) solely by employees and/or consultants of TNO in the performance of
Contract Services.

 

2.13         “Future Intellectual Property Rights” shall mean Future TNO
Intellectual Property Rights and Future Joint/Contract Intellectual Property
Rights, collectively. For purposes of this definition, Future Intellectual
Property Rights shall not include any

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

2

 

Intellectual Property Rights arising from the
measurement and/or analysis of biological samples by TNO’s employees or
consultants on behalf of BG or its clients. Such intellectual property rights
will be defined in the definition “BG Biological Sample Intellectual Property
Rights.” In addition, Future Intellectual Property Rights shall also not
include any Intellectual Property Rights arising from the measurement and/or
analysis of biological samples by TNO’s employees or consultants on behalf of
TNO or its clients. Such intellectual property rights will be defined in the
definition “TNO Biological Sample Intellectual Property Rights.”

 

2.14         “Initial Restatement
Period” shall mean the three-year period beginning January 1, 2004 and
ending December 31, 2006.

 

2.15         “Intellectual Property
Rights” shall mean Patent Rights, and any software (in source and object
code), invention, modification, discovery, design, development, improvement,
process, software program, work of authorship, documentation, formula, data,
technique, know-how, trade secret or other intellectual property whatsoever or
any interest therein, except trademarks and service marks (whether or not
patent able or remittable under copyright or similar statutes or subject to
analogous protection).

 

2.16         “Life Sciences
Enterprise” shall mean any pharmaceutical organization, diagnostic
organization and/or service provider, biotechnology organization, academic
research organization and the like, but excluding the portion of organizations
whose enterprise is related to food, functional foods or nutraceuticals.

 

2.17         “Metabolomics” shall
mean the comprehensive measurement of numerous metabolites discovered in and
among complex biological samples combined with data evaluation methods, such as
pattern recognition techniques, with the goal of identifying one or more
metabolites that may accurately distinguish individual study cohorts.
Metabolomics includes, but is not limited to the area of biofluids/biological
sample analysis employing instrumental analytical techniques such as, but not
limited to, nuclear magnetic resonance (“NMR”), mass spectrometry (“MS”),
chromatography, capillary electrophoresis (“CE”), inductively coupled plasma
mass spectrometry (“ICP-MS”) and atomic emission spectrometry (“AES”). Metabolomics
does not include the direct measurement and identification of specific
individual metabolites or groups of specific individual metabolites as may be
performed, for example, in the course of toxicological studies.

 

2.18         “Minimum Services Commitment”
shall have the meaning set forth in Section 5.1.

 

2.19         “Other Territories”
shall mean all countries in the world except the European Economic Area.

 

2.20         “Patent Right” shall
mean United States and non-U.S. patents and patent applications, and divisionals,
continuations and continuations-in-part thereof, and the resulting patents, and
any reissue, reexaminations and extensions thereof.

 

2.21         “Systems Biology”
shall mean the integrated approach to study biological systems—intracellular
networks, cells, organs, and any biological entity—by measuring and integrating
genomic, and/or proteomic, and/or metabolomic data.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

3

 

2.22         “Termination
Notification Date” shall mean the date on which BG notifies TNO, in
accordance with Section 16.7.

 

2.23         “TNO”
shall mean the Netherlands Organization for Applied Scientific Research as
being the contracting party; however, the parties acknowledge that the
Institute of TNO known as TNO-Nutrition and Food Research Institute is the
institute particularly involved in meeting the engagements with respect to this
Agreement.

 

2.24         “TNO
Biological Sample Intellectual Property Rights” shall mean all
Intellectual Property Rights (without regard to the limitations imposed by the
TNO Field of Use) arising from the measurement of biological samples and/or
associated data analyses by TNO (on behalf of TNO and/or its clients subject to
Section 17, to the extent that it applies). Potential types of Intellectual
Property Rights that may be developed in connection with sample measurement/analysis
include but are not limited to biomarkers, nutraceutical/food targets,
candidate genes, and the like.

 

2.25         “TNO Field of Use”
shall mean Systems Biology in food and nutrition (including food supplements,
functional foods, nutraceuticals, food safety) and herbal medicinal products,
excluding those preparations or substances that are subject to FDA approval as
a drug intended for human use.

 

TNO Field of Use shall not limit TNO’s ability to
undertake analyses and perform contract services aiming at:

 

(i)            The discovery,
manipulation, optimization and control of metabolic pathways in bacteria, fungi
and plants.

 

(ii)           The discovery,
manipulation, optimization and control of the production-of bio-active
compounds by bacteria, fungi, animal cell culture and plants.

 

(iii)          The discovery and
optimization in animals and humans of biological activity present in plants,
extracts of plants and other herbal medicinal products.

 

(iv)          The evaluation of data
obtained in studies with TNO’s animal models for disease, subject to prior
evaluation and written approval by BG. BG maintains the right to refuse
permission where there is competitive conflict with BG’s business. If requested
by TNO, BG will provide relevant documentation as supportive evidence.

 

(v)           The evaluation of data
obtained in non-commercial scientific research, supported by non-profit or
charity foundations that have their basis in the Netherlands, subject to prior
evaluation and written approval by BG. BG maintains the right to refuse
permission where there is competitive conflict with BG’s business. If requested
by TNO, BG will provide relevant documentation as supportive evidence.

 

With respect to Sections 2.25 (iv) and 2.25 (v) only,
BG must respond to TNO’s inquiry within 30 days of receiving written
notification from TNO, provided that the delivery of such written notification
is confirmed by both Parties. If BG fails to respond to TNO’s inquiry within
this 30 day period, then TNO will be authorized to proceed with the requested
contract services.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

4

 

3.             CONTRACT
SERVICES

 

3.1           TNO shall provide
Contract Services to BG in a professional manner per industry standards and in
accordance with the applicable project description, schedule and budget set
forth in the Forecast. Exhibit A, attached hereto, reflects (i) TNO’s personnel
and equipment billable rates per hour and (ii) the minimum resources made
available to BG, by TNO, during the term of the Agreement. The following sets
forth the TNO commitment related to the sample analysis aspect of the Contract
Services to be provided by TNO,

 

3.1.1.       Perform
services in metabolite analyses and evaluate the results in connection with:
internal BG projects and commercial client projects during the terms of this
Agreement and any extension thereof.

 

3.1.2.       Make
available necessary levels of instrumentation (i.e., NMR, MS, chromatography,
chemistry and related support infrastructure) to conduct such metabolite
analyses.

 

3.1.3.       Provide
access to computational and data analysis environment necessary to evaluate the
results of such metabolite analyses.

 

3.1.4        Provide the personnel
named, or filling a position described, on Exhibit A or as otherwise may be
required for the purpose of conducting such metabolite analyses and data
evaluation.

 

3.1.5        Provide required
consumables to perform such metabolite analyses and evaluation.

 

3.2           Dr. van der
Greef. TNO acknowledges that Dr. Jan van der Greef has entered into
a separate consultative relationship with BG outside of this Agreement.
Intellectual Property Rights of this consultative relationship as they relate
to this Agreement are addressed in Section 6.7 hereof.

 

3.3           Subcontractors.
TNO acknowledges that no subcontractors and/or consultants will be used to
perform the Contract Services without BG’s prior written consent. TNO shall
remain responsible for obligations, services and functions performed by any
approved subcontractors and/or consultants if any, to the same extent as
if such obligations, services and functions were performed by TNO hereunder.

 

3.4           Projects. The actual Contract Services to
be performed by TNO will be determined by the projects described in the
Forecasts.

 

4.             ORGANIZATION
AND ORIGINAL AGREEMENT

 

4.1           Coordination.
For the coordination of the Contract Services, each party will point out a coordinator
and the persons involved and inform the other party thereof. In all contacts
between the parties the coordinator pointed out by each party will represent
the persons involved. The coordinators will be responsible for the Forecast
(Section 2.10) and monitor the progress of the Contract Services including the
monitoring of cost and terms,

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

5

 

the administration and correspondence, the arrangement
of meetings, the collecting of information regarding the activities of the
parties, the accepting or rejecting of work performed, and the reporting with
the coordinator of the other party. They will consult each other regularly
about all matters concerned, including execution problems and unsatisfactory
results of the Contract Services.

 

4.2           Good Faith.
The parties commit themselves to cooperate in good faith and to omit all that,
in letter and in spirit, is in contravention of this Agreement.

 

4.3           Original
Agreement. This Agreement supercedes the Original Agreement, except
as to the terms of the Original Agreement that expressly survive with respect
to the granted licenses and joint ownership of Intellectual Property Rights (as
defined therein) and all other matters. The parties acknowledge that all
financial obligations of BG for payment for Contract Services and the Minimum
Services Commitment, and all obligations by TNO for performance of Contract
Services, under the Original Agreement (as these terms are defined therein)
have been fulfilled. The parties also acknowledge that pursuant to Section 8.1.1
of the Original Agreement, BG issued TNO [***] shares of common stock of BG,
and that TNO’s right to make a strategic investment in BG pursuant to Section
8.1.2 of the Original Agreement has expired.

 

5.            EXPENSES
CONTRACT SERVICES

 

5.1           Services
Commitment/Pricing. The Contract Services shall be provided by TNO
to BG at hourly rates as provided in Exhibit A. These hourly rates are based on
the institute’s (TNO Nutrition and Food) official standard rates for personnel
and equipment. TNO represents that these standard hourly rates are calculated
at cost.

 

5.1.1.       The hourly
rates, as quoted in Exhibit A, are based on a Euro:USD exchange rate of 1:1.25.
For purposes of this Agreement, the Euro:USD exchange rate will be established
on a quarterly basis (January 1st, April 1st, July 1st
and October 1st) of each calendar year. For example, if the Euro:USD
exchange rate is 1:1.20 on January 1, 2004, TNO will use this exchange rate
when invoicing BG during for the months of January, February and March 2004.
The exchange rate for the next quarter would then be established on April 1,
2004. TNO will inform BG of the quarterly exchange rate at the onset of each
quarterly period.

 

5.1.2        During the Initial
Restatement Period, BG commits to spend a minimum of $2.2 million USD for TNO’s
Contract Services (hereinafter “Minimum Services Commitment”).

 

5.1.3.       TNO’s hourly
personnel and equipment rates, as quoted in Exhibit A, may be adjusted at the
beginning (i.e., January 1st) of each calendar year beginning with
January 1, 2005, for monetary value changes due to inflation. The adjustment
will be equal to the adjustment of the hourly rates authorized by and annually
agreed upon by TNO with the Dutch Government, but in no event shall such
adjustment exceed five (5) percent for any single contract year during the term
of the Agreement.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

6

 

5.1.4        During each year of the
Initial Restatement Period, TNO will discount all Contract Services costs
charged to BG by [***]% for the incremental
costs above $[***] and by [***]% for the incremental costs above $[***], respectively.

 

5.2         Minimum
Services Commitment Settlement Mechanism. To the extent the actual
and/or projected costs (as applicable) of the Contract Services requested by BG
within the Initial Restatement Period, whether or not such services have
actually been performed by TNO (such amount for purposes of this Section 5.2
shall be defined as “Costs”) are less than the Minimum Services Commitment,
within ninety (90) days after the end of the Initial Restatement Period, BG
shall pay TNO the value of the difference between the Minimum Services
Commitment and the Costs in cash (USD)..

 

5.2.1        If in accordance with
Section 16.7, BG elects to terminate this Agreement prior to the completion of
the initial period as mentioned in article 5.1, the Minimum Service Commitment
of $2.2 Million USD will be reduced on a pro-rata monthly straight-line basis.
For example, if BG provides termination notice to TNO on January 1, 2005 the
Minimum Service Commitment would be then reduced to $[***] USD ($[***]
USD divided by [***] equals $[***] USD per [***],
multiplied by [***] ([***], plus [***]
termination notice) equals $[***] USD.

 

5.3         Services
Invoices/Payment Terms. TNO shall submit invoices for Contract
Services to BG in monthly increments in arrears for the preceding month.
Invoices shall be issued and paid in USD. Invoices shall be paid by BG within
30 days from date of invoice concerned.

 

INTELLECTUAL PROPERTY, LICENSES
AND OWNERSHIP

 

6.1         In partial consideration
of the compensation under Article 7, TNO hereby grants to BG a worldwide right
and license, with the right to sublicense (subject to the provisions of
Sections 16.5 and 16.6), to make, have made, use, lease, sell and import
products and processes which but for the license granted herein would infringe
the Existing Intellectual Property Rights, and to practice and use for any
purpose all Existing Intellectual Property Rights, in the BG Field of Use for
the respective life of each Existing Intellectual Property Right. Such right
and license shall be exclusive in the field of Systems Biology, and TNO shall
have no right to practice in the field of Systems Biology except in the TNO
Field of Use.

 

6.2         In partial consideration
of the compensation under Article 7, TNO hereby grants to BG worldwide right
and license, with the right to sublicense (subject to the provisions of
Sections 16.5 and 16.6), to make, have made, use, lease, sell and import
products and processes which but for the license granted herein would infringe
the Future TNO Intellectual Property Rights, and to practice and use for any
purpose all Future TNO Intellectual Property Rights, in the BG Field of Use for
the respective life of each Future TNO Intellectual Property Right to the
extent TNO can do so. Such right and license shall be exclusive in the field of
Systems Biology, and TNO shall have no right to practice in the field of
Systems Biology except in the TNO Field of Use.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the Commission
pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

7

 

6.3           During the term of this
Agreement TNO shall promptly disclose to BG on an ongoing basis all Future
Intellectual Property Rights.

 

6.4           Upon written request by
BG to TNO, TNO shall provide, at its own discretion, access to and use of any
repository of biological samples that the institute of TNO known as TNO-Nutrition
and Food Research has the rights to or ability to provide to BG, as requested
by BG from time to time. Intellectual Property rights arising from the
measurement of these biological samples and/or associated data analysis shall
be Future Joint/Contract Intellectual Property Rights or BG Biological Sample
Intellectual Property Rights, as determined by the definitions set forth in
Section 2 of this Agreement.

 

6.5           TNO acknowledges that
BG (or its clients) will be the sole beneficiary/owner of any BG Biological
Sample Intellectual Property Rights and will take actions necessary to effect
BG’s ownership of said BG Biological Sample Intellectual Property Rights. Such
BG Biological Sample Intellectual Property shall be subject to the terms of the
agreements in place between BG and its clients. TNO shall assign to BG all of
TNO’s right, title and interest in BG Biological Sample Intellectual Property
Rights. TNO agrees to promptly execute all assignments and patent applications,
and similar documents as reasonably requested by BG. In connection solely with
BG Biological Sample Intellectual Property Rights, if BG shall be unable to
obtain TNO’s execution of such documents for any reason, TNO hereby irrevocably
appoints BG and its agents as TNO’s agents and attorneys-in-fact to execute such
documents with the same legal effect as if TNO shall have executed them. BG
shall pay TNO any reasonable out of pocket expenses in connection with
providing such assistance, but TNO shall not be paid any additional
compensation.

 

6.6           BG acknowledges that
TNO (or its clients) will be the sole beneficiary/owner of any TNO Biological
Sample Intellectual Property Rights. Such TNO Biological Sample Intellectual
Property shall be subject to the terms of the agreements in place between TNO
and its clients. BG shall assign to TNO all of BG’s right, title and interest
in TNO Biological Sample Intellectual Property Rights. In connection solely
with TNO Biological Sample Intellectual Property Rights, if TNO shall be unable
to obtain BG’s execution of such documents for any reason, BG hereby
irrevocably appoints TNO and its agents as BG’s agents and attorneys-in-fact to
execute such documents with the same legal effect as if BG shall have executed
them.

 

6.7           TNO acknowledges that
BG shall be the sole owner of any Intellectual Property Rights applicable for
use in Systems Biology that are developed, created, conceived or reduced to
practice by Dr. Jan van der Greef as sole or joint inventor in his capacity as
a BG consultant or as joint inventor in collaboration solely with BG employees
and/or consultants during the term of this Agreement.

 

6.8           BC and TNO shall
jointly own any Future Joint/Contract Intellectual Property Rights. Each party
also agrees to promptly execute all assignments and patent applications, and
similar documents as reasonably requested by the party filing, prosecuting
and/or maintaining the particular Future Joint/Contract Intellectual Property
Right (the “prosecuting party”). Each party shall provide all assistance
reasonably requested by the prosecuting party in the application for
registration, prosecution, maintenance, defense, and enforcement of the Future
Joint/Contract Intellectual Property Rights and similar

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

8

 

activities. The prosecuting party shall pay such other
party any reasonable out of pocket expenses in connection with providing such
assistance, but such other party shall not be paid any additional compensation.

 

6.9           BG hereby grants to TNO
an exclusive (and BG shall have no right to practice in the TNO Field of Use),
assignable, transferable, worldwide right and license in the TNO Field of Use,
with the right to sublicense, to make, have made, use, lease, sell and import
products and processes which but for the license granted herein would infringe
BG’s joint ownership interest in the Future/Joint Contract Intellectual
Property Rights and to use and practice for any purpose in the TNO Field of Use
for the respective life of each Future Joint/Contract Intellectual Property
Right.

 

6.10         TNO hereby grants to BG
an exclusive (and TNO shall have no right to practice in the BG Field of Use),
assignable, transferable, worldwide right and license in the BG Field of Use,
with the right to sublicense, to make, have made, use, lease, sell and import
products and processes which but for the license granted herein would infringe
TNO’s joint ownership interest in the Future/Joint Contract Intellectual
Property Rights and to use and practice for any purpose in the BG Field of Use
for the respective life of each Future Joint/Contract Intellectual Property
Right.

 

6.11         TNO
represents and covenants it will undertake, to the extent it has the ability to
grant licenses, to include in Exhibit B by amendment later discovered TNO
Intellectual Property Rights existing on the Effective Date of which the parties
in good faith have determined they are applicable to Systems Biology and are
vital to the success of the purpose and scope of this Agreement.

 

6.12         Neither party shall have
the right to suspend rights with regard to Section 6 of the Agreement.

 

6.13         To the extent TNO does
not have the right to waive, assign, license or otherwise transfer any
Intellectual Property Right to BG as required under this Section 6, TNO shall
use every effort to obtain such right and then waive, assign, license or
otherwise transfer to BG.

 

7.            COMPENSATION

 

7.1           BG shall-pay TNO a fixed,
non-refundable fee of $50,000 (USD) per calendar-year in consideration of the
exclusive license granted to BG (in the BG Field of Use) to Existing
Intellectual Property Rights during the Exclusive Period of this Agreement. BG
may elect to convert its exclusive license under Section 7.1 to a non-exclusive
license, by providing written notice to TNO at any time following the payment
of the initial annual non-refundable fee referred to in the preceding sentence.
Such conversion will be effective as of the end of the calendar year in which
written notice to TNO is provided.

 

In order to maintain a nonexclusive license to the
Existing Intellectual Property Rights, BG shall be required to make annual payments
to TNO of $[***] (USD) on each of the
respective successive annual payment due dates.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

9

 

Upon making the
final payment in the three payment series following conversion to a
non-exclusive license BG will have no further obligation to pay TNO any further
fees as provided under this paragraph for any future calendar year period. All
annual non-refundable fees provided for in this paragraph will be paid in lump
sum within 30 days of the beginning of each
full calendar year. The first annual fee is due on January 31, 2004.

 

Any failure on the
part of BG to make any payments under this Section will be subject to
appropriate notice and cure provisions as provided for in Section 16.2.

 

7.2           BG shall pay patent
costs in accordance with Section 9.

 

7.3           In case of referral
services, BG and TNO will negotiate the value and referral payment, if any.

 

8.            RECORDS.

 

8.1           TNO shall be required
to keep accurate books of account containing all particulars that may be
necessary for the purpose of accounting for funding provided by BG for Contract
Services. Said books of account shall be kept at TNO’s principal place of
business or the principal place of business of the appropriate institute of TNO
to which this Agreement primarily relates. Said books and the supporting data
shall be open at all reasonable times for three (3) years following the end of
the calendar year to which they pertain to the inspection of BG or its agents
for the purpose of verifying TNO’s
compliance with this Agreement.

 

9.            PATENT
PROSECUTION.

 

9.1           Throughout the life of
the respective Intellectual Property Rights, BG, at its own expense, shall have
the first right to file, prosecute and maintain the Patent Rights that are
included in the Existing Intellectual Property Rights (as defined in Section
2.9), Future Intellectual Property Rights (as defined in Section 2.13) and BG
Biological Sample Intellectual Property Rights (as defined in Section 2.4) in the United
States and any other jurisdiction in the world. Title to all Future
Joint/Contract Intellectual Property Rights and the patents issued thereon,
regardless of which party filed the corresponding application(s), shall be
jointly held by BG and TNO. Each party’s rights to Future Joint/Contract
Intellectual Property Rights are subject to the other party’s rights as a joint
owner and the rights .and licenses granted to the other party in this
Agreement. Neither party shall grant any rights to a Future Joint/Contract
Intellectual Property Right to a third party which would limit any other party’s
rights as a joint owner thereof except as provided for in this Agreement. With
respect to Existing Intellectual Property Rights and Future Intellectual
Property Rights, TNO shall have the right to review all pending applications
and other proceedings and make recommendations to BG concerning them.

 

BG agrees to keep
TNO informed of the course of patent prosecution or other proceedings including
providing TNO with copies of substantive communications and search reports
submitted to or received from patent offices. TNO shall provide such patent
consultation to BG at no cost to BG. TNO shall hold all information disclosed
to it under this Section as Confidential Information subject to the provisions
of Section 14. If BG shall elect not to file, prosecute or
maintain any such Patent Right, BG shall so notify

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

10

 

TNO in writing. TNO shall have the right to file,
prosecute or maintain such Patent Right, and thereafter BG shall have only a
nonexclusive license in the applicable jurisdiction as to such Patent Rights
application or patent under this Agreement. BG will have no responsibility
under this Agreement with respect to filing, prosecuting or maintaining Patent
Rights included only in TNO Biological Sample Intellectual Property Rights.

 

9.2           For so long as the
license granted in Section 6.1 (Existing Intellectual Property) shall remain
exclusive, payment of all out-of-pocket fees and costs incurred during the term
of this Agreement relating to the filing, prosecution and maintenance of such
Patent Rights shall be the responsibility of BG. If the license granted in
Section 6.1 (Existing Intellectual Property) shall ever become nonexclusive, at
BG’s option, BG may continue to file, prosecute and maintain such Patent Rights
at its expense or return the responsibility for some or all of such Patent
Rights to TNO. If returned to TNO, TNO shall file, prosecute and maintain such
Patent Rights and BG shall reimburse TNO’s out-of-pocket fees and costs
therefor on a pro rata basis with other nonexclusive licenses. In the event of
termination under Section 15 on account of permanent discontinuation of BG’s
business, TNO shall file, prosecute and maintain such Patent Rights in
accordance with Section 15.

 

9.3           BG and TNO shall
cooperate fully in any additional filing, prosecution and maintenance of such
Patent Rights, executing all papers and instruments or requiring BG and TNO
employees, to execute such papers and instruments as necessary to enable BG to
maintain such Patent Rights in BG’s and TNO’s name, as applicable. Each party
shall provide to the other prompt notice as to all matters, which come to its
attention, which may affect the validity, enforceability, extension, or
maintenance of such Patent Rights.

 

9.4           TNO warrants and
represents that it has disclosed to BG the complete texts of all patent
applications for the Patent Rights included in the Existing Intellectual
Property Rights filed by TNO as of the Effective Date as well as all
information received as of the Effective Date concerning the institution of any
interference, opposition, re-examination, reissue, revocation, nullification or
any official proceeding involving such Patent Rights. TNO further warrants and
represents that it will disclose to BG the complete texts of all patent
applications for Patent Rights included in Future TNO Intellectual Patent
Rights filed by TNO after the Effective Date as well as all information
received after the Effective Date concerning the institution of any
interference, opposition, re-examination, reissue, revocation, nullification or
any official proceeding involving any of such Patent Rights.

 

10.          WARRANTIES

 

10.1         TNO hereby warrants and
represents:

 

10.1.1      that it controls the entire
right, title and interest in the Existing Intellectual . Property Rights and
that it has full power and authority to execute, deliver and perform this
Agreement and the obligations hereunder;

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

11

 

10.1.2      that any encumbrance of any
Existing Intellectual Property Rights or Future Intellectual Property Rights,
including liens, mortgages, security interests or otherwise, shall be made
subordinate to the rights of BG specified herein;

 

10.1.3      that there is nothing in any
third party agreement TNO has entered into as of the Effective Date that will
limit TNO’s ability to perform the obligations undertaken by TNO hereunder, and
that it will not enter into any agreement after the Effective Date that would
incur any such limitations.

 

10.1.4      that to the best of its knowledge as of the Effective Date that the
Existing Intellectual Property Rights are valid and that their exercise would
not infringe patent or other intellectual property rights of third parties.

 

10.1.5      that it considers BG as
strategic partner in Systems Biology and agrees to invest in the research
activities and capital equipment purchases as described in Exhibit C attach
hereto.

 

10.2         BG hereby warrants and
represents that it has full power and authority to execute, deliver and perform
this Agreement and the obligations hereunder.

 

11.          INFRINGEMENT.

 

11.1         Each party shall inform
the other promptly in writing of any alleged infringement of the Existing
Intellectual Property Rights or Future Intellectual Property Rights by a third
party and of any available evidence thereof.

 

11.2         Throughout the life of
the respective Intellectual Property Rights, BG shall have the right, but shall
not be obligated, to prosecute at its own expense all infringements of the
Existing Intellectual Property Rights or Future Intellectual Property Rights.
BG may offset up to one-half of each $[***]
(USD), and each $[***] (USD), as applicable,
annual fee due under Section 7.1 against its out-of-pocket attorneys’ and
experts’ fees and costs of such litigation from the date of initiation of
settlement discussions or legal suit with any alleged infringer. In the event
that BG receives any settlement proceeds or damage awards resulting from such
litigation, BG agrees to provide [***]% of
such proceeds received net of litigation
costs related to the action to TNO for as long as TNO is providing Contract
Services hereunder.

 

11.3         In any suit as BG may
institute to enforce or defend the Existing Intellectual Property Rights or
Future Intellectual Property Rights, TNO shall at the request and expense of
BG, cooperate in all respects and, to the extent possible, have its, employees
testify when requested and make available relevant records, papers,
information, samples, specimens and the like.

 

11.4         In any proceedings under
Section 11.2, BG may use the name of TNO as necessary, as party plaintiff
without expense to TNO that is, BG will hold TNO harmless from any order for
out- of-pocket court administrative costs as a result of counterclaims by third
parties that may be made against TNO in connection with the aforementioned
infringement proceedings.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

12

 

12.          NON-USE OF
NAMES.

 

12.1         Except as required to be
disclosed by a party to comply with applicable laws, to defend or prosecute
litigation, or to comply with governmental regulations, (in which case the
requesting party will provide notice to the owner as soon as reasonably
practical) neither party shall use the names or trademarks of the other, nor
any adaptation thereof, nor the names of any of the other party’s employees, in
any advertising, promotional or sales literature without prior written consent
obtained from such party, in each case, such consent not to be unreasonably
withheld. The parties intend to issue a press release announcing the
continuation of this strategic relationship. BG retains the right to determine
the timing of such release and will obtain
TNO’s prior written consent to the release, which shall not be unreasonably
withheld.

 

12.2         Either
party’s failure to comply with this Section 12 in any single or several
instances shall not be deemed a material breach or default of this Agreement.
If either party believes there has been substantial noncompliance, senior
management of each party agrees to convene to resolve the issue.

 

13.          ASSIGNMENT.

 

13.1         Except as expressly
provided Section 6, neither party shall sell, transfer, assign or delegate in
whole or in part this Agreement, or any rights, duties, obligations or
liabilities under this Agreement (collectively “assign”), by operation of law
or otherwise without the prior written consent of the other party, such consent
not to be unreasonably withheld, conditioned or delayed; provided, however,
either party shall have the right to assign its rights, duties, obligations and
liabilities under this Agreement to any Affiliate or other related entity,
controlling, controlled by or under common control with such party or in connection
with any sale, merger, consolidation, recapitalization or reorganization involving
in each case the sale of all or substantially all of the capital stock of the
party or the assets of such party to which this Agreement relates. This
Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of TNO and BG. In the event that this Agreement is
assigned or otherwise transferred under this Section, as soon as practically
possible, the successor or assignee to which such succession or assignment has
been effected will sign a letter of adherence to this Agreement and provide
notice to the other party to this Agreement in accordance with the notification
provision as set forth in Section 20.4  If BG opts for such a permitted
transfer or assignment BG shall remain liable for its obligations hereunder in
the event the assignee is in default and/or does not meet its obligations
towards TNO. However, BG may request a written release from this liability from
TNO, which release shall not be unreasonably withheld, conditioned or delayed.
In the event of such a request, BG will provide such information as TNO may
reasonably request in order to evaluate the request.

 

14.          CONFIDENTIALITY

 

14.1         The parties hereto shall
treat all proprietary data and other information received from the other party,
including patent information received under Section 9, business information,
technical information and the analyses, evaluations, data and other information
and

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

13

 

materials provided by TNO pursuant to the Contract
Services as confidential and proprietary to such other party (hereinafter
referred to as: Confidential Information).

 

The parties shall take all reasonable steps under the
circumstances to maintain the secrecy of the Confidential Information including
information identified orally or in writing as confidential or that by its
nature would reasonably be considered confidential. Moreover, neither party
shall duplicate or use any Confidential Information received from the other
party hereunder for any other purpose other than for the performance of this or
under this Agreement. In addition, neither party shall disclose any
Confidential Information to any third party that is not specifically authorized
in writing by the disclosing party to receive it and who has not agreed in
writing to substantially the same obligations as specified herein, and each
party shall require its employees/consultants to sign and comply with
agreements sufficient for such party to comply with this Section 14 and the
other terms of this Agreement.

 

14.2         The parties agree that
the Confidential Information shall not be deemed confidential to the extent the
receiving party can prove by written record that:

 

it already rightfully had knowledge of such
information prior to disclosure without obligation of confidentiality, or

 

information was already or becomes publicly known
through no fault of the receiving party, or

 

information identical to disclosed Confidential
Information was already in its possession or is subsequently developed by the
receiving party without use of Confidential Information received under this
Agreement.

 

14.3         Either party may disclose
Confidential Information to the extent required to be disclosed by the receiving
party to comply with applicable laws, to defend or prosecute litigation or to
comply with governmental regulations, provided that the receiving party takes
reasonable and lawful actions to avoid or minimize the extent of such
disclosure and informs the disclosing party promptly of the requirement for
such disclosure so that the disclosing party may take steps to seek to prevent
or limit the extent of disclosure.

 

14.4         The parties agree that
such Confidential Information shall remain the property of the disclosing
party, and that all Confidential 1nformation shall be returned to the disclosing
party within thirty (30) days after written request by the disclosing party,
and all copies or extracts thereof delivered to the disclosing party within
said thirty (30) day period or destroyed. At the request of either party, an
officer of the other party shall deliver a certificate under oath attesting to
the destruction of all such copies or extracts.

 

14.5         The Dual Party
Confidential Disclosure Agreement between the parties dated July 7, 2000,
was terminated pursuant to the Original Agreement, except as to any of its
provisions that survive as to confidential information disclosed thereunder
prior to the effective date of the Original Agreement.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the

Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.

 

14

 

15.                              DISCONTINUANCE
OF BUSINESS

 

15.1                          In the
event BG permanently discontinues its business on account of bankruptcy,
receivership, liquidation, or other forms of permanent business disruption and
such business is not continued by a successor in interest of BG, the licenses
granted to BG and this Agreement shall terminate as of the date of permanent
discontinuance of business. After such termination, each then
existing BG sublicense shall continue in full force and effect, subject to such
sublicensee’s obligation to pay patent costs in accordance with Section 9 on a
pro rata basis with other sublicensees, such sublicense shall be replaced by a
direct licensing relationship between TNO and such sublicensee, such
sublicensee will continue to pay reasonable royalties, if applicable. Nothing
herein shall be construed to release either party of any obligations existing
prior to the effective date of termination and Sections 16.4 and 16.5 shall
apply.

 

16.                              DURATION
AND TERMINATION

 

16.1                          This
Agreement shall commence as of the Effective Date and shall continue in full
force and effect for three (3) years thereafter. BG will have an option to
extend this Agreement for an additional three (3) year period.

 

16.2                          Upon any
material breach or default of this Agreement by either party, the other party
may send a written notice explaining the nature of the breach or default to the
breaching party. If such breaching party shall not have cured any such material
breach or default, or undertaken material efforts to cure such breach or
default, within ninety (90) days, the other party may terminate this Agreement
effective upon a second written notice; provided, however, if a breach or
default shall not be capable of cure, the parties agree to convene to negotiate
a resolution in good faith during a maximum period of 30 days.

 

16.3                          Upon
expiration or termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of expiration or termination.

 

16.4                          (a) With
respect to the granted licenses and joint ownership of Intellectual Property
Rights, the provisions of Sections 6.1, 6.2, 6.5, 6.6, 6.7, 6.8, 6.9, 6.10,
6.11, 6.12, 6.13, 7.1, 9, 10, 11, 14 and 15 shall survive the expiration or termination
of this Agreement for any reason.

 

(b) With respect to the granted licenses and joint
ownership of Intellectual Property Rights and all other matters, the provisions
of Sections 8 (survives for three years after expiration or termination), 17.1 (survives
for two years as applicable), 17.2 (survives for two years as applicable), 17.4
(as applicable), 17.5 (as applicable), 17.7 and Sections 2, 4.3, 12, 13, 15,
16.3, 16.4, 16.5, 16.6, 16.7, 18, 19 and 20 shall survive the expiration or
termination of this Agreement for any reason).

 

16.5                          In the
event this Agreement is terminated or expires, each then existing BG sublicense
in good standing shall continue in full force and effect, subject to such
licensee’s obligation to pay patent costs in accordance with Section 9.

 

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

 

15

 

16.6                          Notwithstanding
Section 16.5, upon a termination by TNO under Section 16.2 for breach or
default by BG, BG’s right to grant new future sublicenses after the
effective date of termination, subject to final determination under Section 18,
as applicable, will cease. Otherwise, BC’s rights to grant new future
sublicenses will continue in full force and effect after any termination or
expiration.

 

16.7                          At any
time during the Initial Restatement Period, BG has the right terminate this
Agreement without cause, providing that a (6) six month written notice is given
to TNO. If BG elects to terminate this Agreement prior to the completion of the
Initial Restatement Period; (i) the Minimum Service Commitment will be adjusted
on a pro-rata monthly basis as describe in Section 5.2.1 and (ii) TNO’s
non-competition clauses will be reduced as described in Section 17.7.

 

17.                              NON-COMPETITION

 

17.1                          With
respect to the Other Territories (as defined in Section 2.19), TNO agrees not
to compete with BG in Metabolomics, or undertake contract services for third parties
in Metabolomics, in the BG Field of Use during the term of this Agreement and
for a period of two (2) years post the Initial Restatement Period.

 

17.2                          With
respect to the Other Territories, BG agrees not to compete with TNO in
Metabolomics

 

17.2.1                 in
the TNO Field of Use during the term of this Agreement and for a period of two
(2) years post the Initial Restatement Period.

 

17.2.2                 In
addition, BG agrees not to undertake contract services in the TNO Field of Use
on behalf of any Life Science Enterprise that can effectively be (or is
already) provided by TNO, during the term of this agreement.

 

17.2.3                 TNO
agrees to allow BG to enter into TNO’s Field of Use provided that: (i) TNO is
informed, by written notice, prior to BG pursuing a potential collaboration,
(ii) BG and TNO agree to jointly negotiate with the potential collaborator,
(iii) the potential collaboration is based upon know-how, findings and/or other
novel observations identified during BG’s System’s Biology work with any of its’
strategic partners, such as GlaxoSmithKline; and (iv) TNO is offered to be
exclusively utilized for the Metabolomics component of the potential
collaboration.

 

17.3                          Wilh
respect to the European Economic Area (hereinafter referred to as the
“E.E.A.”), during the term of this Agreement, or any extensions thereof, TNO
may enter into research and development Agreements with academic, non-profit,
governmental or non-profit research institutions, on the following conditions:
(i) BG is notified in writing prior to the execution of such Agreements and
(ii) BG gets first right of negotiation on commercialization rights on any
Intellectual Property Rights created under said agreements.

 

TNO shall not enter into agreements with any other
third parties on research and development in Metabolomics in the BC Field of
Use, unless the agreement is pre-

 

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

 

16

 

approved by BG in writing.

 

17.4                          With
respect to the E.E.A. TNO shall, during the term of this Agreement and for a
period of twelve (12) months post the Initial Restatement Period, TNO shall NOT
pursue an active policy of providing services in the E.E.A. similar to the
Contract Services or services related thereto, in as far as such services
similar to Contract Services and related services pertain to Metabolomics in
the BG Field of Use, and shall particularly not engage in advertising in the
E.E.A. for such services, provided the users of such services can sufficiently
obtain such services in the E.E.A., during such period.

 

17.5                          With
respect to the E.E.A., the obligations contained in Section 17.3 and 17.4 shall
mutatis mutandis apply to BG in as far as the TNO Field of Use is concerned.

 

17.6                          In the
event that any regulatory body, court or other forum of competent jurisdiction
should find this Section 17, or any subsection hereof, illegal, invalid or
unenforceable, the remainder of this Agreement shall remain in full force and
this provision shall be reformed, construed and enforced to the maximum extent
permissible; however, if the effect thereof shall be to substantially impair
the value of this Agreement to either party, then the affected party may
terminate this Agreement by written notice to the other.

 

17.7                          If in
accordance with Section 16.7, BG elects to terminate this Agreement prior to
the completion of the Initial Restatement Period, the post Initial Restatement
Period non-competition terms imposed by BG on TNO will be reduced as follows:

 

17.7.1                 With respect to
the E.E.A, the non-competition term for TNO, as described in this Section, will
be reduced to 180 days after the Termination Notification Date.

 

17.7.7                 With respect to
the Other Territories the non-competition term for TNO, as described in this
Section, will be reduced to (1) one year after the Termination Notification
Date.

 

18.                              DISPUTES

 

18.1                          Any dispute, controversy or claim arising under, out of
or relating to this contract and any subsequent amendments of this contract,
including, without limitation, its formation, validity, binding effect, interpretation,
performance, breach or termination, as well as non-contractual claims,
shall be referred to and finally determined by arbitration in accordance with
the W1PO Arbitration Rules as such Rules exist on the Effective Date. The
arbitral tribunal shall consist of three arbitrators, at least one of whom
shall be an attorney with five (5) or more years experience in licensing and
intellectual property matters. The place of arbitration shall be London. The
language to be used in the arbitral proceedings shall be English. The dispute,
controversy or claim shall be decided in accordance with the laws of England.
The arbitrators shall have the right to provide injunctive, specific
performance or other equitable relief at any time.

 

19.                              LIMITATION
OF LIABILITY

 

19.1                          Special Damages. To the extent permitted by law, under no
circumstances, will either party, its Affiliates or related entities, or their
respective officers, directors, or employees,

 

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

 

17

 

be liable for any indirect, incidental, special or
consequential damages, including lost profits, or any exemplary or punitive
damages arising out of
or in connection with this Agreement, regardless of whether such damages could
have been foreseen or prevented by either party.

 

19.2                          Aggregate
Liability. To the extent permitted by law, in no event will the aggregate
liability of either party, its Affiliates or related entities, or their
respective officers, directors or employees, to the other party or to any other
entity for direct damages, arising out of or in connection with this Agreement
exceed at any time the sum of the aggregate cash consideration received by TNO
under this Agreement, which for purposes hereof shall include without
limitation the compensation for Contract Services, and the cash compensation
set forth in Sections 5 and 7.

 

20.                              GENERAL
PROVISIONS

 

20.1                          Entire
Agreement. This Agreement, including all Exhibit(s) attached hereto which
are hereby incorporated herein by reference, shall supersede all prior
agreements and understandings, including oral representations, between the
parties relating to the subject matter hereof (except as set forth in Section
4.3 and 14.5), is intended by the parties as a complete and exclusive statement
of the terms of this Agreement, and may be modified only in a written
instrument executed by the parties. In case of any discrepancy between this
Agreement and any other documents, the terms of this Agreement shall prevail.
The subject matter of this Agreement is limited to the rights expressly granted
herein. The terms of this Agreement shall have no force or effect with respect
to any claim based on the use of either party’s Intellectual Property Rights
outside the scope of the licenses and rights expressly granted herein.

 

20.2                          All
payments due hereunder in connection with the licenses to BG of Intellectual
Property Rights shall be payable in US Dollars on account number 58.15.11.565
of ABN-AMRO Bank to TNO Nutrition
and Food Research in Zeist.

 

20.3                          Waiver. No waiver
of any breach of any provision of this Agreement shall constitute a waiver of
any prior, concurrent or subsequent breach of the same or other any provisions
hereof, and no waiver shall be effective unless made in writing and signed by
an authorized representative of the waiving party.

 

20.4                          Notices. Any notice required or permitted by
this Agreement shall be in writing and shall be sent by a reliable two-day
international courier service, return receipt requested or by facsimile with
confirmation of transmission, addressed to the other party at the address set
forth below or at such other address for which such party shall give notice
hereunder. Such notice shall be deemed to have been given two (2) days after
deposit with a courier, or upon confirmation of transmission if by facsimile,
except that notice of change of address shall be effective only upon receipt.

 

	
  If to BG:

  	
  N. Stephen Ober, President

  
	
   

  	
  Beyond Genomics, Inc.

  
	
   

  	
  40 Bear Hill Road

  
	
   

  	
  Waltham, Massachusetts 02451

  
	
   

  	
  USA

  

 

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

 

18

 

	
  With a copy to:

  	
  Lawrence S. Wittenberg

  
	
   

  	
  Testa, Hurwitz & Thibeault, LLP

  
	
   

  	
  125 High Street

  
	
   

  	
  Boston, Massachusetts 02110

  
	
   

  	
  USA

  
	
   

  	
   

  
	
  If to TNO:

  	
  TNO-Nutrition and Food Research

  
	
   

  	
  Attn: Dr. N.J. Snoeij

  
	
   

  	
  PO Box 360

  
	
   

  	
  3700 AJ Zeist

  
	
   

  	
   

  
	
  With a copy to:

  	
  TNO HQ

  
	
   

  	
  Attn: Patents and Licensing TNO

  
	
   

  	
  P.O. Box 6080

  
	
   

  	
  2600 JA Delft

  
	
   

  	
  the Netherlands

  

 

 

20.5                          English Language. This Agreement was negotiated and executed
in English, and the original language version shall be controlling. All
communications and notices to be made or given pursuant to this
Agreement shall be in English. TNO hereby waives any right it may have under
any applicable law to have this Agreement written in the native language.

 

20.6                          Severability. If any provision of this Agreement shall be
held by a regulatory body, a court or other forum of competent jurisdiction to
be illegal, invalid or unenforceable, that provision shall be reformed,
construed and enforced to the maximum extent permissible, and the remaining
provisions shall remain in full force and effect; provided,
however, if the effect thereof shall be to substantially impair the value of
this Agreement to either party, then the affected party may terminate
this Agreement by written notice to the other.

 

20.7                          Section Headings.
The section headings used in this Agreement and in the attached Exhibits shall
be intended for convenience only and shall not be deemed to supersede or modify
any provisions.

 

20.8                          Compliance With Laws. In the performance of any and all
activities under this Agreement, the parties agree to comply with all
applicable laws and regulations.

 

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

 

19

 

“Exhibit A”

 

	
   

  	
   

  	
   

  	
   

  	
  Hourly Rate

  	
   

  	
  Annualize Rate

  	
   

  	
  Minimum Annual Availability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Euro

  	
   

  	
  USD

  	
   

  	
  EURO

  	
   

  	
  USD

  	
   

  	
  %

  	
   

  	
  Euro

  	
   

  	
  USD

  	
   

  
	
  Personnel

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1  [***]

  	
   

  	
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  2  [***]

  	
   

  	
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  3  [***]

  	
   

  	
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  4  [***]

  	
   

  	
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  5  [***]

  	
   

  	
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  6  [***]

  	
   

  	
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  7  [***]

  	
   

  	
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  [***]

  	
   

  
	
  8  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
  %

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
  %

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  2  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
  %

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  3  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
  %

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  4  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
  %

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  5  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
  %

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Totals:

  	
   

  	
   

  	
   

  	
  €

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
																								

 

Footnotes:

• Assumes
Euro:USD exchange rate of 1:1.25

• Annualized rate based on
annual FTE and equipment hour base of [***]
and [***]

 

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

 

21

 

“Exhibit B”

Existing Intellectual Property

 

1.          Patentnummers : NL 101
5875 / NL 1016034: Werkwijze en systeem voor het identificeren en bewaken van
chemische componenten van een te onderzoeken mengsel van materialen

 

2.          IMPRESS software
package, including support software. The package enables the evaluation of
complex data-sets from hyphenated mass spectrometric techniques (LC/MS, GC/MS,
CE/MS etc) based on among others the patented algorithms/procedures mentioned
under 1.

 

3.          “NMR-PLF WINLIN”
software package, including support software. This package enables the
data-preprocessing of NMR-data by the Partial-Linear-Fit algorithm to allow
pattern recognition and includes also other multivariate functions and the
ability to use this approach also for profiles of chromatograms (GC, LC etc)

 

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

 

22

 

“Exhibit
C”

TNO Strategic Relationship Investment

 

TNO considers BG a strategic partner in Systems Biology and agrees to
invest in the following research activities and capital equipment purchases
that will directly benefit the Agreement :

 

a)                                 [***]
:

 

	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Total

  	
   

  	
  [***]

  	
   

  

 

* subject to Board approval

 

b)                                New
approaches :

 

Vision: FTMS will
be a dominant metabolomics tool in the near future for identification and
fingerprinting. GC-MS and GCxGC-MS will be rediscovered as extremely important.

 

•                    GC-MS and
GCxGC-MS sample pretreatment and software

•                    Development of
high resolution software FTMS (3 year program)

 

The developed tools will be available for Contract
Services during the Initial Restatement Period. In the case of the FTMS software,
developed in a joint collaboration with ThermoFinnigan ([***] Euros), a limited package (i.e., excluding
some very advanced options) will be available, at least 6-12 months prior to
market introduction by ThermoFinnigan.

 

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

 

23

 

This Agreement was made and entered in duplicate as of the Effective
Date.

 

 

	
  TNO

  	
   

  	
  BEYOND GENOMICS, INC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ C.M.
  Colijn-Hooymans

  	
   

  	
  /s/ N. Stephen Ober

  	
   

  
	
  Dr. C.M.
  Colijn-Hooymans

  	
   

  	
  N. Stephen Ober, MD

  	
   

  
	
  Member, Board of
  Management

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Ir. J.C. Huism’t Veld

  	
   

  	
  /s/ Muzammil M. Mansuei

  	
   

  
	
  Ir. J.C. Huism’t Veld

  	
   

  	
  Muzammil M. Mansuei, PhD

  	
   

  
	
  President, Board of Management

  	
   

  	
  Executive Chairman

  	
   

  

 

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

 

20

 

Exhibit 10-14-01

 

First Amendment to Reinstatement and Amendment of

Strategic Relationship Agreement

 

PARTIES:

 

1.               NEDERLANDSE ORGANISATIE VOOR
TOEGEPAST-NATUURWETEN-SCHAPPELIJK ONDERZOEK TNO (Netherlands Organization for
Applied Scientific Research) a corporation, company or organization duly
organized and existing under the laws of the Netherlands and having its
principal place of business at Delft, the Netherlands, hereinafter referred to
as : “TNO”;

 

2.               BG Medicine, Inc. (formerly known as Beyond
Genomics), a corporation, company or organization duly organized and existing
under the laws of the state of Delaware, USA, having its principal place of
business at 610N Lincoln Street, Waltham, MA 02451, USA, hereinafter referred
to as : “BGM”;

 

WHEREAS:

 

For
the mutual benefit of TNO and BGM (the “Parties”), parties to the Reinstatement
and Amendment of Strategic Relationship Agreement (the “Agreement”) effective
as of January 1, 2004, Parties hereby agree as follows:

 

In
accordance with Section 20.1 of the Agreement, the Parties hereby amend the
Agreement such that:

 

1.               Section 2.14 of   the “Initial Restatement Period” shall be
extended for a period of one (1) year from December 31, 2006 to December 31,
2007 .

 

2.               Section 5.1.2 
shall read as follows: During the extended Restatement Period as defined
under1 in the First Amendment to Reinstatement and Amendment of Strategic
Relationship Agreement BG commits to spend a minimum of $[***] for TNO’s
Contract Services (hereinafter “Minimum Services Commitment”).

 

3.               Section 5.1.4 shall read as follows: During the
extended Restatement Period as defined under1 in the First Amendment to
Reinstatement and Amendment of Strategic Relationship Agreement, TNO will
discount all Contract Services costs charged to BG by [***]% for the
incremental costs above $[***]  and by [***]%
for the incremental costs above $[***], respectively.

 

4.               Section 5.2.1 shall read as follows: If in
accordance with Section 16.7, BG elects to terminate this Agreement prior to
the completion of the extended period as mentioned under 1 in the First
Amendment to Reinstatement and Amendment of Strategic Relationship Agreement,
the Minimum Service Commitment of $[***] will be reduced on a pro-rata monthly
straight-line basis.

 

 

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

 

 

This First Amendment was made and entered into in duplicate this 22nd  day of December 2006.

 

	
  TNO

  	
   

  	
  BGM

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Niek Snoeij

  	
   

  	
  /s/ Pieter Muntendam

  
	
  Dr. Niek Snoeij

  	
   

  	
  Pieter Muntendam

  
	
  Member, Board of Management TNO QoL

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Jan Hellinga

  	
   

  	
   

  
	
  Ir. Jan Hellinga

  	
   

  	
   

  
	
  Director of Marketing and Sales BU Q&S

  	
   

  	
   

  

 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 406 of the
Securities Act.Exhibit 10.15

 

PARTICIPATION
AGREEMENT

 

This
Participation Agreement (this “Agreement”) is entered into as of the 22nd day
of_December, 2006 (the “Effective Date”) by and between BG Medicine, Inc., a
corporation having offices at 610 N. Lincoln Street, Waltham, Massachusetts
02451 (“BGM”) and Philips Medical Systems Nederland B.V. a company having
offices at Veenpluis 4-6, 5684 PC Best, the Netherlands  (“Philips” and “Participant”); each of
Participant and BGM are sometimes referred to individually as a “Party” and
collectively  as the “Parties”).

 

WHEREAS,
BGM and Philips intend to collectively design and conduct a number of
activities (the “HRP Initiative”) in order to advance the understanding,
recognition and management of High Risk Plaque for the benefit of all
stakeholders in the healthcare system as described in the form of Program
Outline to be attached hereto as Exhibit A-1 (the “HRP Program, as
further defined below”); and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

 

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

 

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

 

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

 

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

 

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

 

2.                                      HRP Initiative.

 

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

 

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

 

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

 

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

 

3.                                       Governance

 

3.1.                              Joint Steering Committee.

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

3.2                                 Scientific Program Board.

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

3.3                                 Initiative Manager.

 

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

 

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

 

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

 

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

 

4.2                                 Material. When possible, studies will be designed to provide extra materials
for distribution to Participant and, if requested by such party, the other
sponsors. BGM shall provide Participant with aliquots of such

 

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

 

4

 

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

 

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

 

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

 

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

 

5.                                      IP Ownership; License Grants.

 

5.1                                 Ownership; Patent Filings. Subject to the rights granted to
Participant and the other sponsors hereunder, all Project Inventions and Data
shall be owned by BGM. Philips, as an agent for BGM may at its own
discretion  be responsible for the
preparation, filing, prosecution and maintenance of patents and patent
applications covering Project Inventions. If Philips elects not to carry out
such responsibility itself, BGM shall take on the responsibility and Philips
shall assist BGM in identifying
a suitable intellectual property agent after which BGM will engage the agent..
The charges of such agent shall be to the HRP Initiative. BGM shall (a) provide the JSC with copies of
all patent applications to be filed hereunder for Project Inventions in
sufficient time to allow for review and comment by the JSC; (b) consult with
the JSC regarding the filing and contents of any such application; and (c) take
into consideration in good faith the advice and suggestions of the JSC in
connection with such filing. Following expiration of the term of this Agreement
what is stated regarding the JSC in this Section 5.1 shall instead apply to
Participant and other sponsors of the HRP Initiative. In the event Participant
terminates this Agreement prior to its expiration, what is stated regarding the
JSC in this Section 5.1 shall for the purpose of this Section 5.1 include
Participant as well.

 

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

 

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

 

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

 

5

 

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

 

6.                                      Participation Payment.

 

6.1                                 Payment. Participant shall contribute a total of five million dollars
(US$5,000,000), of which [***] dollars (US$[***]) shall be paid in cash, and
the remainder will be contributed in in-kind contributions by Participant to
the HRP Program in the period 2006-2009. Participant shall pay BGM [***]
dollars (US$[***]) in [***] (such amount, the “First Participation Payment”). Participant
shall pay BGM [***] dollars (US$[***]) in [***] (such amount, the “Final
Participation Payment”) (the First Participation Payment and Final
Participation Payment together the “Participation Payments”). In-kind
contributions may, amongst others, be provided in the form of loans of
necessary imaging equipment for the HRP program activities, internal and
external time and materials expenses incurred by Philips for providing
technical support to the HRP program, adaptations and customizations of imaging
equipment and development and validation of image processing methods for plaque
recognition and characterization. Philips in-kind contributions will be valued
at reasonable and customary industry rates and equipment cost will be valued at
average US institutional equipment lease price. Philips will provide budget
estimates for in-kind contributions for Program Activities upon request by the
Alliance Manager. In-kind contributions for Program Activities will be detailed
in the HRP Program budget that is subject to JSC approval. Cash payments shall
be made in accordance with wire transfer instructions to be provided by BGM.
All payments made pursuant to this Section 6.1 shall be maintained by BGM in a
dedicated account, which shall be kept separate from, and not commingled with,
any other funds.

 

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

 

7.                                      Term; Termination.

 

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

 

7.2                                 Termination. This Agreement is subject to early termination by Participant (i) as
provided in Section 6.2; or (ii) at its discretion at any time following twelve
(12) months of the Effective Date by giving thirty (30) days written notice.

 

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

 

6

 

The
JSC may terminate this Agreement and the HRP Initiative by majority vote for
any or no reason. Termination by the JSC will become effective immediately
after approval by the committee.

 

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

 

8.                                      Miscellaneous.

 

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

 

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

 

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

 

Indemnitee shall not admit any liability with respect to, or settle,
compromise or discharge, any claim by a third party for which indemnity is
sought by Indmenitee hereunder without the prior written consent of
Participant.

 

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

 

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

 

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

 

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

 

8.7.          Notices. All notices
pertaining to or required by this Agreement will be in writing, signed by an
authorized representative of the

 

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

 

7

 

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

 

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

 

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

 

 

BG
Medicine, Inc.

 

 

	
  By:

  	
  /s/ Pieter Muntendam

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Pieter Muntendam

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Philips
  Medical Systems Nederland, B.V.

  	
  Philips
  Medical Systems Nederland, B.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ R.M.M. Fonville

  	
  By:

  	
  /s/ W. Vuisting

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  R.M.M. Fonville

  	
  Name:

  	
  W. Vuisting

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP, Philips Medical Systems

  	
  Title:

  	
  SVP, Philips Medical Systems

  

 

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

 

8

 

Exhibit A-1

 

HRP Program – Version 0.4

 

Background

 

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

 

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

 

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

 

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

 

Current
Program Outline

 

	
  Title:

  	
  Biomarker
  Discovery of High-Risk Patient

  
	
  Partner:

  	
  Duke
  University Medical School, NC, USA

  
	
  Objective:

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

  
	
  Design:

  	
  Case-control
  study using specimen from CATHGEN biobank

  
	
  Start:

  	
  Jan
  2007

  
	
   

  	
   

  
	
  Title:

  	
  Systems
  Biology of Human Carotid Plaque

  
	
  Partner:

  	
  CARIM
  – Univ. of Maastricht, The Netherlands

  
	
  Objective:

  	
  Identification
  of plaque biomarkers of human plaque

  
	
  Design:

  	
  Comparative
  systems analysis involving two high-risk plaque types

  
	
  Start:

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

  
	
   

  	
   

  
	
  Title:

  	
  BioImage
  Study

  
	
  Partner:

  	
  Humana,
  Univ. of Miami

  
	
  Objective:

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

  
	
  Design:

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

  
	
  Start:

  	
  May
  2007

  
	
   

  	
   

  
	
  Title:

  	
  BioIvus
  Study

  
	
  Partner:

  	
  EMC,
  Rotterdam, The Netherlands

  
	
  Objective:

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

  
	
  Design:

  	
  Prospective
  non-comparative study in patients involving

  
	
  Start:

  	
  March
  2007

  
	
   

  	
   

  
	
  Title:

  	
  Translational
  Study on Gottingen Mini-Pig

  
	
  Partner:

  	
  Aarhus
  University, Denmark

  

 

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

 

A-1

 

	
  Objective:

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

  
	
  Design:

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

  
	
  Start:

  	
  April
  2007

  
	
   

  	
   

  
	
  Title:

  	
  Regulatory
  Framework

  
	
  Partner:

  	
  Covington
  & Burling, DC, USA

  
	
  Objective:

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

  
	
  Design:

  	
  n.a.

  
	
  Start:

  	
  October
  2006

  

 

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

 

A-2

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