Exhibit 10.8
------------
Paradigm Genetics, Inc. has omitted from this Exhibit 10.8 portions of the
Agreement for which Paradigm Genetics, Inc. has requested confidential treatment
from the Securities and Exchange Commission. The portions of the Agreement for
which confidential treatment has been requested have been filed separately with
the Securities and Exchange Commission. Such omitted portions have been marked
with an asterisk.
Monsanto/Paradigm Genetics Collaboration Agreement
November 17, 1999
Page
----
1. DEFINITIONS........................................................... 1
1.1 Affiliate...................................................... 1
1.2 Agreement...................................................... 1
1.3 Average Net Benchmark Product Price............................ 2
1.4 Average Net Product Price...................................... 2
1.5 Benchmark Product.............................................. 3
1.6 DNA............................................................ 3
1.7 Effective Date of this Agreement............................... 3
1.8 Grace Periods.................................................. 3
1.9 Gene Patent Rights............................................. 3
1.10 Paradigm Gene Patent Rights.................................... 4
1.11 Improvements................................................... 4
1.12 Know How....................................................... 4
1.13 Licensed Products.............................................. 4
1.14 Licensed Patent Rights......................................... 4
1.15 Monsanto Enabling Technology................................... 4
1.16 Monsanto Licensed Products..................................... 4
1.17 Monsanto DNA Information....................................... 5
1.18 Net Product Revenues........................................... 5
1.19 Paradigm Licensed Products..................................... 5
1.20 Permitted Data................................................. 5
1.21 Project Commencement Date...................................... 5
1.22 Project Committee.............................................. 5
1.23 Production Target Level........................................ 5
1.24 Project Plan................................................... 6
1.25 Project Quarter................................................ 6
1.26 Project Technology............................................. 6
1.27 Product Sublicense Payments.................................... 6
1.28 Subsidiary..................................................... 6
1.29 Term of this Agreement......................................... 6
1.30 Value Added.................................................... 6
1.31 Monsanto Patents............................................... 7
1.32 Paradigm Patents............................................... 7
1.33 Joint Patents.................................................. 7
i
2. CONVEYANCE OF RIGHTS:.................................................................................... 7
2.1 Assignment to Monsanto:............................................................................ 7
2.2 License to Monsanto: Licensed Patent Rights........................................................ 7
2.3 License to Monsanto: Paradigm Gene Patent Rights................................................... 7
2.4 License to Monsanto: Paradigm Gene Patent Rights - restriction on license.......................... 7
2.5 License to Monsanto: restriction on license........................................................ 8
2.6 License to Paradigm: Licensed Patent Rights........................................................ 8
2.7 License to Monsanto: research license - [________________]*........................................ 8
2.8 License to Paradigm: research license - [________________]*........................................ 8
2.9 License to Paradigm: research license - Monsanto Enabling Technology in research crops............. 9
2.10 to Paradigm: research license - Monsanto Enabling Technology - restriction on license.............. 9
2.11 License to Paradigm: restriction on license........................................................ 9
3. FUNDED PROJECT........................................................................................... 9
3.1 Funded Project..................................................................................... 9
3.2 Contribution of Monsanto........................................................................... 9
3.2.1 Monsanto DNA supplied.......................................................................... 10
3.2.2 Counting Monsanto DNA.......................................................................... 10
3.2.3 Counting for failed experiments................................................................ 10
3.3 Contribution of Paradigm........................................................................... 11
3.3.1 Conducting Project Plan........................................................................ 11
3.3.2 Database Compatibility......................................................................... 11
3.3.3 Biological Materials........................................................................... 11
3.3.4 Contribution of Third Party Information........................................................ 11
3.3.4.1 Right to Summary Information............................................................. 11
3.3.4.2 Consequence of Using Permitted Data...................................................... 11
3.3.4.3 Consequence of Expansion................................................................. 12
3.4 Project Committee.................................................................................. 12
3.4.1 Committee Duties............................................................................... 12
3.4.2 Committee Structure............................................................................ 12
3.4.3 Meetings....................................................................................... 12
3.4.4 Decision Making................................................................................ 12
3.5 Term and Termination of Funded Project.................................................................. 13
3.5.1 Early Termination - Production Target Levels Achieved.......................................... 13
3.5.2 Early Termination - Production Target Levels Not Achieved...................................... 13
3.5.3 Early Termination - Other Reasons.............................................................. 14
3.5.4 Extension...................................................................................... 14
3.5.5 Surviving Paragraphs........................................................................... 14
4. PAYMENTS................................................................................................ 14
4.1 Project Funding.................................................................................... 14
4.1.1 Inducement Fee................................................................................. 14
4.1.1.1 Termination Refund........................................................................ 15
4.1.2 Annual Technology Enhancement Fee.............................................................. 15
4.1.3 Quarterly Payment.............................................................................. 15
ii
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
4.1.4 Production Target Level Payments................................................................ 15
4.1.5 Additional Optional Projects.................................................................... 16
4.1.5.1. Rice Option................................................................................ 16
4.1.5.2 Increase in Arabidopsis.................................................................... 16
4.1.5.3 Increase in Arabidopsis.................................................................... 16
4.1.5.4 Impact of Expansion - Production Target Level Measurement.................................. 17
4.1.5.5 Impact of Expansion - right to terminate................................................... 17
4.2 Royalties - Monsanto Licensed Products.............................................................. 17
4.2.1 Minimum Royalty................................................................................. 17
4.2.2 One Royalty..................................................................................... 18
4.2.3 Third Party Royalty Offset...................................................................... 18
4.2.4 Monsanto Royalty Buy-Out........................................................................ 18
4.3 License or sublicense of Licensed Patent Rights by Monsanto......................................... 18
4.4 Royalties - Paradigm Licensed Products.............................................................. 19
4.5 Valuation of Non-Monetary Consideration for Product Sublicense Payments:............................ 19
5. RECORDS.................................................................................................. 19
5.1 Payments of Royalties............................................................................... 19
5.2 Books and Records for Royalty Payments.............................................................. 19
5.3 Late Payment of Royalties........................................................................... 20
6. INTELLECTUAL PROPERTY.................................................................................... 20
6.1 Ownership of Project Technology Other Than Gene Patent Rights....................................... 20
6.2 Disclosure of Patentable Inventions................................................................. 20
6.3 Access to Gene Patent Rights........................................................................ 21
6.4 Patent Prosecution and Maintenance; Paradigm Patents................................................ 21
6.5 Patent Prosecution and Maintenance; Monsanto Patents................................................ 21
6.6 Patent Prosecution and Maintenance; Joint Patents................................................... 21
6.7 Gene Patent Rights.................................................................................. 22
6.7.1 Disclosure...................................................................................... 22
6.7.2 Prosecution of applications..................................................................... 22
6.8 Cooperation......................................................................................... 22
6.9 Costs............................................................................................... 22
6.10 Patent Litigation: Right to Bring Suit.............................................................. 23
6.11 Confidential Treatment............................................................................. 23
7. CONFIDENTIALITY.......................................................................................... 23
7.1 Confidential Information:........................................................................... 23
7.2 Confidentiality and Limited Use:.................................................................... 23
7.2.1 Limited Use:.................................................................................... 23
7.2.2 Exceptions to Disclosure of Confidential Information:........................................... 24
7.3 Exceptions to Classification as Confidential:....................................................... 24
7.3.1 Publicly Available:............................................................................. 24
iii
7.3.2 Already Known:............................................. 24
7.3.3 Third Party Disclosure:.................................... 24
7.4 Specific Information:............................................ 24
7.5 Disclosures to Personnel:........................................ 25
7.6 Return of Confidential Information:.............................. 25
7.7 Confidential Status of Agreement:................................ 25
7.8 Disclosure to Third Parties...................................... 25
7.8.1 Consultants................................................ 25
7.8.2 Investors.................................................. 26
7.9 Publications..................................................... 26
8. REPRESENTATION AND WARRANTIES........................................ 26
8.1 Monsanto......................................................... 26
8.2 Paradigm......................................................... 27
8.3 Third Party Obligation........................................... 27
9. INDEMNIFICATION...................................................... 28
9.1 General -Paradigm................................................ 28
9.2 General -Monsanto................................................ 28
9.3 Other Loss....................................................... 28
10. APPLICABLE LAW...................................................... 29
10.1 Governing Law; Jurisdiction..................................... 29
11. MISCELLANEOUS PROVISIONS............................................ 29
11.1 Notices:........................................................ 29
11.2 Assignability:.................................................. 30
11.3 Dispute Resolution.............................................. 30
11.3.1 General................................................... 30
11.3.2 Parties Shall Meet........................................ 30
11.3.3 CEOs Shall Meet........................................... 30
11.3.4 Arbitration Trigger....................................... 30
11.3.5 Arbitration Rules......................................... 31
11.3.6 Agreements to Agree....................................... 31
11.4 Tax Reporting:.................................................. 31
11.5 Severability:................................................... 32
11.6 Counterparts:................................................... 32
11.7 Headings:....................................................... 32
11.8 Agreement references:........................................... 32
11.9 Appendices:..................................................... 32
11.10 Export Control:................................................. 32
iv
11.11 Force Majeure:.............................................. 33
11.12 Negation of Agency:......................................... 33
11.13 Other Requests:............................................. 33
11.14 Amendment and Waiver:....................................... 34
v
THIS IS AN AGREEMENT effective November 17, 1999, ("Effective Date of this
Agreement") by and between Paradigm Genetics Inc. a corporation organized under
the laws of North Carolina having its principal place of business at 104
Alexander Drive, Building 2, X.X. Xxx 00000, Xxxxxxxx Xxxxxxxx Xxxx, Xxxxx
Xxxxxxxx 00000 ("Paradigm") and Monsanto Company ("Monsanto"), a Delaware
corporation, having a principal place of business at 000 Xxxxx Xxxxxxxxx
Xxxxxxxxx, Xx. Xxxxx, Xxxxxxxx 00000.
WHEREAS, Monsanto has certain rights relating to genes which impart traits
in plants and plants containing such genes, such rights including possession of
technical information and know-how relating to such plants and their use, and
ownership of U.S. and foreign patent applications covering the plants, seeds,
genes and their use;
WHEREAS, Paradigm has expertise in transforming Arabidopsis plants with DNA
and analyzing the resultant plants for functional changes, including possession
of technical information and know how relating to such plants and their analysis
and use, and ownership of U.S. and foreign patent applications covering the
plants, genes and their use.
WHEREAS, Monsanto and Paradigm are contemplating establishing a strategic
functional genomics research alliance to create proprietary intellectual
property and products for both parties relating to gene sequences provided by
Monsanto to Paradigm;
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties agree as follows:
1. DEFINITIONS
-----------
Terms in this Agreement defined in the singular have the same meanings when
used in the plural and vice versa. For purposes of this Agreement, the following
words and phrases shall have the following meanings:
1.1 Affiliate
"Affiliate" shall mean with respect to any person or entity, any other
person or entity which directly or indirectly controls, is controlled by or is
under common control with such person or entity. A person or entity shall be
deemed to be "controlled" by any other person or entity if such other person or
entity (i) possesses, directly or indirectly, power to direct or cause the
direction of the management and policies of such person or entity whether by
contract or otherwise, (ii) has direct or indirect ownership of more than 50%
(in the aggregate) of the voting power of all outstanding shares entitled to
vote at a general election of directors of the person or entity or (iii) has
direct or indirect ownership of more than 50% of the equity interests in a
partnership or a limited liability company.
1.2 Agreement
"Agreement" shall mean this collaboration agreement.
1.3 Average Net Benchmark Product Price
"Average Net Benchmark Product Price" shall mean the average gross invoiced
sales price received by Monsanto and its Affiliates for the sale of a unit
of Benchmark Product, or if no Benchmark Product is sold by Monsanto or its
Affiliates, all consideration received by a third party for the Benchmark
Product, in each case, in arm's length sales to an independent third party,
in a particular country for the applicable period, after deduction of the
following items, provided and to the extent such items are actually
incurred and documented and do not exceed reasonable and customary amounts
in the market in which such sale occurred: (i) trade discounts actually
allowed; (ii) credits, rebates and returns; (iii) freight and duties paid
for and separately identified on the invoice or other documentation
maintained in the ordinary course of business, (iv) taxes, duties and other
compulsory payments to governmental authorities actually paid and
separately identified on the invoice or other documentation maintained in
the ordinary course of business, and (v) dealer/distributor and seed
service fees paid by Monsanto and its Affiliates. All sales of Benchmark
Products between Monsanto and any of its Affiliates and sublicensees shall
be disregarded for purposes of computing Average Net Benchmark Product
Price. A "sale" shall include any transfer or other disposition for
consideration, and Average Net Benchmark Product Price shall include all
consideration received by Monsanto or its Affiliates in respect of any sale
of Benchmark Products, whether such consideration is in cash, payment in
kind, exchange or another form.
1.4 Average Net Product Price
"Average Net Product Price" shall mean the average gross invoiced sales
price received by Monsanto and its Affiliates for the sale of a unit of
Licensed Product in arm's length sales to an independent third party, in a
particular country for the applicable period, after deduction of the
following items, provided and to the extent such items are actually
incurred and documented and do not exceed reasonable and customary amounts
in the market in which such sale occurred: (i) trade discounts actually
allowed; (ii) credits, rebates and returns; (iii) freight and duties paid
for and separately identified on the invoice or other documentation
maintained in the ordinary course of business, (iv) taxes, duties and other
compulsory payments to governmental authorities actually paid and
separately identified on the invoice or other documentation maintained in
the ordinary course of business, and (v) dealer/distributor and seed
service fees paid by Monsanto and its Affiliates. All sales of Licensed
Products between Monsanto and any of its Affiliates and sublicensees shall
be disregarded for purposes of computing Average Net Product Price. A
"sale" shall include any transfer or other disposition for consideration,
and Average Net Product Price shall include all consideration received by
Monsanto or its Affiliates in respect of any sale of Licensed Product,
whether such consideration is in cash, payment in kind, exchange or another
form. Average Net Product Price shall not be discounted due to any product
"bundling" unless Monsanto or its Affiliates does not offer the Licensed
Product outside of a "bundle". In the case of discounts on "bundles" of
products or services which include Licensed Products, Monsanto may with
notice to Paradigm calculate the Average Net Product Price by discounting
the bona fide list price
2
of a Licensed Product by no more than the average percentage discount of
all products of Monsanto and/or its Affiliates in a particular "bundle",
calculated as follows:
Average percentage
discount on a = (1 -A/B)x 100
particular "bundle"
where A equals the total discounted price of a particular "bundle" of
products, and B equals the sum of the un-discounted bona fide list prices
of each unit of every product in such "bundle". Monsanto shall provide
Paradigm documentation, reasonably acceptable to Paradigm, establishing
such average discount with respect to each "bundle".
1.5 Benchmark Product
"Benchmark Product" shall mean a product not covered by Licensed Patent
Rights, but otherwise identical to a Licensed Product, or if no such
product exists, substantially similar to a Licensed Product, but not
covered by Licensed Patent Rights, in each case, available in the same
country and time period. A Benchmark Product must be a commercial product
sold by Monsanto or its Affiliates or a third party. If Monsanto or its
Affiliates do not sell such a Benchmark Product, then the most suitable
product that meets the above definition sold by a third party in the
applicable country during the applicable time period shall be used as the
Benchmark Product.
1.6 DNA
"DNA" shall mean deoxyribonucleic acid or other similar material.
1.7 Effective Date of this Agreement
"Effective Date of this Agreement" shall mean the date first written above.
1.8 Grace Periods
"Grace Period" shall mean for the Project Plan's years 1 and 2, 120 days
beyond the Project Quarter given to achieve the Production Target Level for
such Project Quarter and during the Project Plan's years 3 and beyond, 90
days beyond the Project Quarter given to achieve the Production Target
Level for such Project Quarter.
1.9 Gene Patent Rights
"Gene Patent Rights" shall mean Licensed Patent Rights claiming an
invention relating to the making, composition or function of any Monsanto
DNA Information other than patent rights claiming discoveries or inventions
not discovered or developed in the course of carrying out the Project Plan.
3
1.10 Paradigm Gene Patent Rights
"Paradigm Gene Patent Rights" shall mean patent rights of Paradigm claiming
discoveries or inventions related to Monsanto DNA Information not
discovered or developed in the course of carrying out the Project Plan.
1.11 Improvements
"Improvements" shall mean any improvements to Monsanto Enabling Technology.
Improvements may or may not result in patentable subject matter.
1.12 Know How
"Know How" shall mean information and material known to Monsanto necessary
to use any particular Monsanto Enabling Technology, including, but not
limited to DNA constructs, probes, and antibodies.
1.13 Licensed Products
"Licensed Product" shall mean a particular product or a particular species
of animals, plants, plant or animal parts, animal progeny, seed of plants
and products from any of the foregoing, or the process of making any of the
above, which, in the absence of a license, would infringe at least one (1)
claim of an unexpired U.S. or foreign patent included within Licensed
Patent Rights.
1.14 Licensed Patent Rights
"Licensed Patent Rights" shall mean (i) patent rights of Monsanto or
Paradigm claiming [_________________]*, (ii) patent rights of Monsanto
claiming Monsanto DNA Information, and (iii) patent rights of Paradigm
claiming Monsanto DNA Information other than patent rights claiming
discoveries or inventions not discovered or developed in the course of
carrying out the Project Plan.
1.15 Monsanto Enabling Technology
"Monsanto Enabling Technology" shall mean proprietary DNA, processes,
techniques and Know How of Monsanto owned by Monsanto or otherwise
licensable by Monsanto to Paradigm at the Project Commencement Date which
assists in or improves the ability to insert or express DNA in plants,
including without limitation, those technologies listed in Appendix K.
1.16 Monsanto Licensed Products
"Monsanto Licensed Products" shall mean Licensed Products, other than
chemical herbicides, which (i) infringe a Licensed Patent for which
Paradigm has an ownership interest or which lists a Paradigm employee as an
inventor, or (ii) infringe a Licensed Patent, the patentability of which
was based, in whole or in part, on [________________]* to which an employee
of Paradigm made a material contribution.
4
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
1.17 Monsanto DNA Information
"Monsanto DNA Information" shall mean DNA and sequence information for such
DNA provided by Monsanto to Paradigm including, but not limited to, full
length cDNA clones, genomic clones, PCR primers to be used to amplify the
desired gene from a target DNA or sequence for 5' and 3' PCR primers.
1.18 Net Product Revenues
"Net Product Revenues" shall mean the gross invoiced sales of Licensed
Products received by Paradigm or their respective Affiliates during the
applicable period in arm's length transactions after deduction of the
following items, provided and to the extent such items are actually
incurred and do not exceed reasonable and customary amounts in each market
in which such sales occurred: (i) trade and quantity discounts and rebates;
(ii) credits or allowances made for rejection or return of previously sold
Licensed Products; (iii) any tax or government charge levied on the sale,
such as value added tax (but not including income tax); and (iv) any
charges for freight or insurance. In the event that the Licensed Product is
not sold or is used internally by Paradigm or an Affiliate of Paradigm, or
is sold or otherwise transferred to a third party for a price lower than if
it had been sold to a third party in an arm's length transaction ("fair
market value"), then Net Products Revenues shall be the fair market value
of the Licensed Product.
1.19 Paradigm Licensed Products
"Paradigm Licensed Products" shall mean chemical herbicides which (i)
infringe a Licensed Patent for which Monsanto has an ownership interest or
which lists a Monsanto employee as an inventor, or (ii) infringe a Licensed
Patent the patentability of which was based, in whole or in part, on
[________________]* to which an employee of Monsanto made a material
contribution.
1.20 Permitted Data
"Permitted Data" shall have the meaning set forth in Article 3.3.4.
1.21 Project Commencement Date
"Project Commencement Date" shall mean February 1, 2000.
1.22 Project Committee
"Project Committee" shall mean the committee established in Article 3.4.
1.23 Production Target Level
"Production Target Level" shall mean, for each Project Quarter, the
achievement by Paradigm of the goal set forth in bold print in Appendix C
or in any other Appendix adopted under Article 4.1.5.
5
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
1.24 Project Plan
"Project Plan" shall mean the plan attached as Appendix B, as amended by
the Project Committee.
1.25 Project Quarter
"Project Quarter" shall mean a calendar quarter starting from the Project
Commencement Date.
1.26 Project Technology
"Project Technology" shall mean any materials, know-how, information,
discoveries or inventions that are discovered or developed in the course of
carrying out the Project Plan.
1.27 Product Sublicense Payments
"Product Sublicense Payments" shall mean all consideration received by
Monsanto and its Affiliates or Paradigm and its Affiliates from licensees
or sublicensees of Licensed Patent Rights in respect of any grant of rights
to make, use, sell or import Licensed Products (including, without
limitation, royalties or other payments for the sale of Licensed Products,
sublicense fees and Production payments) less pro rata deductions (based on
the number of technologies licensed to the licensee or sublicensee) for:
(i)dealer/distributor and seed service fees actually paid by Monsanto and
its Affiliates or Paradigm and its Affiliates, and (ii) taxes, duties and
other compulsory payments to governmental authorities actually paid and
separately identified on the invoice or the documentation maintained in the
ordinary course of business.
1.28 Subsidiary
"Subsidiary" shall mean an Affiliate controlled by a party to this
Agreement.
1.29 Term of this Agreement
"Term of this Agreement" shall be 6 years from the Project Commencement
Date unless extended or terminated as provided for in this Agreement.
1.30 Value Added
"Value Added" shall mean (i) the difference between the Average Net Product
Price of a Licensed Product as compared to the Average Net Benchmark
Product Price of the applicable Benchmark Product in the same country and
time period, and (ii) any other identifiable value (which is not merely
speculative) attributable to the Licensed Patent Right's contribution to
any Licensed Product sales, including, without limitation, increased market
share of a Licensed Product and market share maintenance of a Licensed
Product, in each case, as compared to the applicable Benchmark Product. It
is understood and agreed that "Value Added" shall include all incremental
value which is identifiable (and not merely speculative) which Monsanto and
its Affiliates receives
6
from customers of Licensed Products. For Licensed Products where there is
no Benchmark Product, the Value Added will equal the Average Net Product
Price.
1.31 Monsanto Patents
"Monsanto Patents" shall have the definition provided in Article 6.1.
1.32 Paradigm Patents
"Paradigm Patents" shall have the definition provided in Article 6.1.
1.33 Joint Patents
"Joint Patents" shall have the definition provided in Article 6.1.
2. CONVEYANCE OF RIGHTS:
--------------------
2.1 Assignment to Monsanto:
Subject to the terms and conditions of this Agreement and for the
consideration as set forth in Article 4, Paradigm agrees to assign and
hereby assigns to Monsanto Paradigm's right, title and interest to the Gene
Patent Rights.
2.2 License to Monsanto: Licensed Patent Rights
Except for Gene Patent Rights assigned to Monsanto pursuant to Article 2.1,
subject to the terms and conditions of this Agreement (including, without
limitation, Article 2.5) and for the consideration as set forth in Article
4, Paradigm hereby grants to Monsanto under Paradigm's interest in the
Licensed Patent Rights and for the life of such Licensed Patent Rights a
perpetual non-exclusive, world-wide license to make and use
[________________]* and Monsanto DNA Information and a perpetual exclusive,
world-wide license to develop, make, have made, import, use, sell, have
sold, and offer to sell Monsanto Licensed Products. Paradigm further grants
Monsanto the right to sublicense any of the above rights.
2.3 License to Monsanto: Paradigm Gene Patent Rights
Paradigm grants to Monsanto, Subsidiaries of Monsanto and wholly-owned
Affiliates of Monsanto under Paradigm's interest in Paradigm Gene Patent
Rights a perpetual non-exclusive, world-wide license to use Monsanto DNA
Information for research purposes only. Such right shall not extend to any
other Paradigm owned or in-licensed technology.
2.4 License to Monsanto: Paradigm Gene Patent Rights - restriction on license
No right to commercialize a plant produced under Article 2.3 is granted in
this Agreement and Paradigm shall be under no obligation to provide such a
license. Monsanto shall be responsible for maintaining sufficient records
on the use of plants
7
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
which infringe Paradigm Gene Patent Rights so that such plants can be
identified. To the extent that Monsanto or an Affiliate of Monsanto seeks
to produce and analyze plants for a third party, Monsanto shall inform such
third party that the rights granted Monsanto under Paradigm Gene Patent
Rights is limited to the use of such plants solely by Monsanto and only for
research purposes and that any license necessary to commercialize any
plants can only be granted by Paradigm.
2.5 License to Monsanto: restriction on license
Nothing in this Agreement shall be construed as granting a license under
any Paradigm patents other than Licensed Patent Rights or Paradigm Gene
Patent Rights. No license is granted to any Licensed Product which
infringes a Paradigm patent that is not included in Licensed Patent Rights
or Paradigm Gene Patent Rights.
2.6 License to Paradigm: Licensed Patent Rights
Subject to the terms and conditions of this Agreement and for the
performance of the Research Plan and other consideration as set forth
herein, Monsanto hereby grants to Paradigm under the Licensed Patent Rights
except for those patent rights directed to DNA other than Arabidopsis DNA
and, if the Project Plan is extended under Article 4.1.5.1, except for
those patent rights directed to DNA other than Arabidopsis and rice DNA,
and for the life of such Licensed Patent Rights a perpetual non-exclusive
world-wide license to make and use [________________]* and Monsanto DNA
Information directed to Arabidopsis DNA and, if the Project Plan is
extended under Article 4.1.5.1, rice DNA and a perpetual exclusive world-
wide license to develop, make, have made, import, use, sell, have sold, and
offer to sell Paradigm Licensed Products. Monsanto further grants Paradigm
the right to sublicense the rights to develop, make, have made, import,
use, sell, have sold, and offer to sell Paradigm Licensed Products.
2.7 License to Monsanto: research license - [________________]*
Paradigm grants to Monsanto, Subsidiaries of Monsanto and wholly-owned
Affiliates of Monsanto under Paradigm's interest in Licensed Patent Rights
and [________________]* a perpetual non-exclusive, worldwide license to use
[________________]* for research purposes only. Such right shall not extend
to any other Paradigm owned or in-licensed [________________]*.
2.8 License to Paradigm: research license - [________________]*
Monsanto grants Paradigm and those Subsidiaries of Paradigm at the
Effective Date of this Agreement under Monsanto's interest in Licensed
Patent Rights except for those patent rights directed to DNA other than
Arabidopsis DNA and, if the Project Plan is extended under Article 4.1.5.1,
except for those patent rights directed to DNA other than Arabidopsis and
rice DNA, and [________________]* a perpetual nonexclusive, world-wide
license to use [____________]* and Monsanto DNA Information directed to
Arabidopsis DNA and, if the Project Plan is extended under Article 4.1.5.1,
rice DNA for research purposes only. Such right shall not extend to any
other Monsanto owned or in-licensed[________________]*, including Monsanto
DNA Information that is not from
8
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Arabidopsis or, if the Project Plan is extended under Article 4.1.5.1,
rice, except as set forth in Article 2.9.
2.9 License to Paradigm: research license - Monsanto Enabling Technology
in research crops
Monsanto grants Paradigm and Subsidiaries of Paradigm under Monsanto's
interest in Monsanto Enabling Technology a perpetual, nonexclusive, U.S.
and Europe only, license to use Monsanto Enabling Technology in
Arabidopsis, tobacco and, if the Project Plan is extended under Article
4.1.5.1, rice for research purposes only. Such right shall not extend to
any other Monsanto owned or in-licensed technology, whether or not licensed
to Paradigm herein, except and to the extent as set forth in Article 2.8.
Notwithstanding the foregoing, such research license shall not apply to
research in herbicide resistance in any plant species.
2.10 License to Paradigm: research license - Monsanto Enabling Technology -
restriction on license
No right to commercialize a plant produced under Article 2.9 is granted in
this Agreement and Monsanto shall be under no obligation to provide such a
license. Paradigm agrees to keep any plant produced in the United States
and Europe. Paradigm shall be responsible for maintaining sufficient
records on the use of Monsanto Enabling Technology so that such plants can
be identified. To the extent that Paradigm or an Affiliate of Paradigm
seeks to produce and analyze plants for a third party, Paradigm shall
inform such third party that the rights granted Paradigm under Monsanto
Enabling Technology is limited to the use of such plants solely by Paradigm
and only for research purposes and that any license necessary to
commercialize any plants can only be granted by Monsanto. Paradigm agrees
to grant and hereby grants a royalty-free, nonexclusive license to Monsanto
to any Improvements created by Paradigm.
2.11 License to Paradigm: restriction on license
Nothing in this Agreement shall be construed as granting a license under
any Monsanto patents other than Licensed Patent Rights and Monsanto
Enabling Technology. No license is granted to any Licensed Product which
infringes a Monsanto patent that is not included in Licensed Patent Rights
or Monsanto Enabling Technology.
3. FUNDED PROJECT
------------------
3.1 Funded Project
Subject to the terms and conditions set forth herein, commencing on the
Project Commencement Date, Paradigm shall conduct the project pursuant to
the Project Plan, as described herein or as amended by the Project
Committee. Paradigm shall be responsible for the management and
implementation of the Project Plan.
3.2 Contribution of Monsanto
9
Monsanto will supply Monsanto DNA Information to Paradigm as provided in the
Project Plan to allow Paradigm to meet the Production Target Levels as set forth
in the applicable Appendix.
3.2.1 Monsanto DNA supplied
In the case of Monsanto DNA Information relating to a species
other than Arabidopsis, such Monsanto DNA Information shall be in
the form of a
[__________________________________________________________]*
each such non-Arabidopsis DNA, Paradigm will provide [________
__________________________________________________________]*.
Monsanto agrees to provide to Paradigm [________________________
_____________________________________________]*. Under the
Project Plan, Monsanto shall be limited to providing no more than
[_________________]* non-Arabidopsis DNA of which no more than
[_____________________]* will be from rice, no more than
[__________________]* will be from [__________]* and no more than
[_______________]* will be from
[________________________________]*. These amounts will be
proportionally expanded if Monsanto exercise the options under
Articles 4.1.5.2 or 4.1.5.3. Monsanto will use diligent efforts
to assure that all Monsanto DNA Information is accurate.
3.2.2 Counting Monsanto DNA
For purposes of calculating the achievement of Production Target
Levels, each analysis, whether [______________]* shall be counted,
so that an analysis of a [________________________________________
________________________________________________________]*. In the
case of [__________________________________________________________
_____________]* shall be counted as [_______________________]*. If
the [_____________________]* does not have an [_____________________
_______________________________________]* shall be counted as
[___________________]*. It is additionally expected that control
experiments will be included in the Project Plan which will not be
counted towards the Production Target Levels.
3.2.3 Counting for failed experiments
In the event that Paradigm attempts diligently to insert the DNA from any
Monsanto DNA Information into Arabidopsis as set forth in the Project Plan
but is unable to do so, then for purposes of calculating the achievement of
Production Target Levels, Paradigm will be deemed to have achieved
[___________________]* of an analysis.
10
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
3.3 Contribution of Paradigm
3.3.1 Conducting Project Plan
Paradigm shall use diligent efforts to conduct the Project Plan and
meet the Production Target Levels set out in the appendices.
3.3.2 Database Compatibility
Paradigm agrees to make diligent efforts to report data generated from the
Project Plan in a customized database as described in the Project Plan.
This data base will be updated on a monthly basis.
3.3.3 Biological Materials
Paradigm will provide Monsanto with reasonable access to biological
materials generated in the course of conducting the Project Plan as set
forth in the Project Plan.
3.3.4 Contribution of Third Party Information
In the event that Monsanto provides Monsanto DNA Information to Paradigm
that Paradigm has already analyzed for a third party, Paradigm agrees, to
the extent it has the right to do so, to make available to the Project
Committee data resulting from such analysis on the following basis:
3.3.4.1 Right to Summary Information
For each such analysis Paradigm will initially provide to the
Project Committee a brief summary of the data which will consist of
a statement as to whether the data shows a statistically significant
deviation from data obtained from a wild type Arabidopsis plant. The
Project Committee will then determine whether or not to receive the
data that Paradigm has the right to deliver ("Permitted Data"). If
the Project Committee chooses not to receive the Permitted Data and
not to have Paradigm analyze such Monsanto DNA Information
independently in the Project Plan, then the specific Monsanto DNA
Information will not be counted in the throughput targets for the
Project Plan and Monsanto can replace that Monsanto DNA Information
with different Monsanto DNA Information to be analyzed by Paradigm,
provided, however, that the Project Committee may only do so with
respect to [__]* DNA sequences provided by Monsanto.
3.3.4.2 Consequence of Using Permitted Data
If the Project Committee decides to proceed with a full analysis, it
will elect to receive the Permitted Data and, assuming the Permitted
Data does not contain all the analysis provided in the Project Plan,
have Paradigm
11
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
complete the analysis of the Monsanto DNA Information as provided in
the Project Plan. If the Project Committee chooses to receive the
Permitted Data, or if the Project Committee decides to have Paradigm
complete the analysis of that Monsanto DNA Information in the
Project Plan, or if the Project Committee elects to not receive the
Permitted Data for any DNA sequences in excess of [__]*, then that
Monsanto DNA Information will be counted in the throughput targets
for Paradigm in the Project Plan.
3.3.4.3 Consequence of Expansion
In the event that the Project Plan is expanded as set forth in
Article 4.1.5.2 or Article 4.1.5.3, there will be no limit to the
number of times the Project Committee may elect not to receive the
Permitted Data; provided, however, that of at any time Monsanto has
not provided Paradigm with sufficient Monsanto DNA Information to be
able to achieve the Production Target Levels set forth in the
appropriate Appendix, then Monsanto DNA Information which was not
counted in the throughput targets for the Project Plan because it
was not elected will be counted for purposes of determining the
Production Target Level.
3.4 Project Committee
3.4.1 Committee Duties
The duties of the Project Committee shall be as specified in this
Agreement and as determined in writing by the parties, so long as
such written determination is not inconsistent with this Agreement
unless the parties amend the Agreement accordingly.
3.4.2 Committee Structure
The Project Committee shall be comprised of three Monsanto and three
Paradigm employees designated by Monsanto and Paradigm,
respectively. Each party is free to name and change its Project
Committee Members without permission from the other party.
3.4.3 Meetings
The Project Committee shall meet quarterly at Paradigm or other
location as agreed upon by both parties. The Project Committee will
prepare quarterly science reports and the minutes of the meetings
will be approved by both parties.
3.4.4 Decision Making
The Project Committee may modify the Project Plan based upon actual
project results. The Project Committee will also agree upon how to
12
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
integrate new technology into the project from Monsanto, Paradigm or
third parties. Monsanto will be given a supermajority vote on all
decisions that do not materially change the scope of the Project
Plan or do not require Paradigm to incur any additional costs with
the exception that a unanimous vote is required to change the
provisions of the Project Plan relating to Monsanto's supply of DNA
(Article 3.2) or Monsanto's access to biological materials (Article
3.3.3). Other than the Project Plan, the Project Committee may not
modify this Agreement. Any decisions related to material changes in
the scope or the budget for the Project Plan or related to changing
the terms of this Agreement will require mutual consent of Paradigm
and Monsanto.
3.5 Term and Termination of Funded Project
The Term of this Agreement will be 6 years after the Project Commencement
Date with the possibility to extend the Agreement based upon the mutual
agreement of both parties.
3.5.1 Early Termination - Production Target Levels Achieved
Monsanto will have the option to serve notice of its intention to
terminate the Project Plan at end of any quarter from Project
Quarter 8 to Project Quarter 12 of the Project Plan, such notice
having the effect of terminating the Agreement eighteen (18) months
after such written notice to Paradigm (e.g., notice given at the end
of Project Quarter 8 terminating the Agreement at the end of Project
Quarter 14). In the event of early termination, Production Target
Level payments and quarterly payments remaining the same as set
forth in Appendix C and D until such termination.
3.5.2 Early Termination - Production Target Levels Not Achieved
Both parties will have the option to terminate this Agreement prior
to the expiration of the six (6) year term under the following
conditions. Either party may terminate the Agreement with thirty
(30) days prior written notice given within thirty (30) days after
the relevant period set forth below as follows: (a) after the third
Project Quarter or any subsequent Project Quarter (including its
permitted Grace Period), if Paradigm has achieved no Production
Target Levels at a level requiring payment pursuant to Article 4.1.4
during a period of three (3) consecutive Project Quarters ending
with such Project Quarter (including permitted Grace Periods), or
(b) after the fourth Project Quarter or any subsequent Project
Quarter (including its permitted Grace Period), if Paradigm has
achieved no Production Target Levels at a level requiring payment
pursuant to Article 4.1.4 during fifty percent (50%) or more of the
completed Project Quarters (including permitted Grace Periods). In
the event of termination for failure to achieve Production Target
Levels as set forth above,
13
Monsanto shall not be obligated to make any research funding
payments pursuant to Articles 4.1.3 or 4.1.4 to Paradigm that are
due more than thirty (30) days after notice has been given. Monsanto
will have no right to recoup any monies already paid to Paradigm
prior to termination under this Article 3.5.2.
3.5.3 Early Termination - Other Reasons
Either party may terminate this Agreement by reason of failure to
cure a material breach by the other party or upon bankruptcy,
insolvency, and dissolution or winding up of the other party. Any
such termination will require written notice from the terminating
party, specifying, in reasonable detail, the breach or other basis
of the termination. The breaching party will be given 60 days from
receipt of such written notice to cure the breach pursuant to this
Article 3.5.3 prior to actual termination. If the breach is cured
during such period, the notice will have no force or effect.
3.5.4 Extension
Paradigm and Monsanto will meet during the twenty-first Project
Quarter to determine the conditions and terms on which the project
would be extended beyond 6 years. No extension will occur except
upon mutual agreement of the parties.
3.5.5 Surviving Paragraphs
Termination of this Agreement for any reason other than Articles
3.5.2 and 3.5.3 shall not terminate the provisions set forth in
Articles 2, 4.2, 4.3, 4.4, 5, 6, 7, 8, 9, 10 and 11. The rights and
obligations of these Articles shall continue in full force and
effect following any such termination. If Monsanto terminates the
Agreement under Articles 3.5.2 or Article 3.5.3, then all the above
Articles shall survive except for Articles 2.9 and 2.10. Upon any
termination, Monsanto DNA Information shall only include that DNA
that has been analyzed and reported to Monsanto under the Project
Plan.
4. PAYMENTS
--------
4.1 Project Funding
Monsanto agrees to fund the Project Plan over the Term of this Agreement as
set forth below:
4.1.1 Inducement Fee
As an inducement to Paradigm to commit assets and personnel and
undertake the obligation to conduct the Project Plan over the
Term of this Agreement, Monsanto agrees to pay Paradigm ten million
dollars ($10,000,000) of which [___________________________________
__________________]* shall be paid upon execution and [___________
_______________]* shall be paid by January 17, 2000.
14
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
4.1.1.1 Termination Refund
In the event that this Agreement is terminated within
eighteen (18) months of Project Commencement Date due to a
breach by Paradigm, Paradigm shall refund Monsanto
[____________ ___________________]*.
4.1.2 Annual Technology Enhancement Fee
Paradigm shall invest during project years 1-5 at least [_________
_______________________________]* in new technology, either
externally or internally. Such investments shall be approved by the
Project Committee, which approval shall not be unreasonably
withheld.
4.1.3 Quarterly Payment
Monsanto will pay Paradigm the fees set out in Appendix D as
compensation for Paradigm's services under the Project Plan for each
Project Quarter at the beginning of each Project Quarter.
4.1.4 Production Target Level Payments
For each quarter in which Paradigm meets at least 80% (except as set
forth below) of the quarterly Production Target Level, set out in
Appendix C, during the Project Quarter or within the permitted Grace
Period, Monsanto will pay Paradigm the Production payment according
to the following formula:
Production payment =
[Production payment set forth in Appendix E] * [[[actual
deliverable/Production Target Level]-1]*2]+1:
wherein if [actual deliverable/Production Target Level] 0.8,
then Production payment =0 (except as set forth below); and
wherein Production payment cannot be greater than 1.4 *
[Production payment set forth in Appendix D]; and wherein sum of
all Production payments cannot be greater than
[_____________________________________________ ___________]*,
unless one or more of the options in Article 4.1.5 are exercised, in
which event the sum of the Production payments cannot be greater
than the aggregate total of the Production payments on the
appropriate Appendices.
Notwithstanding the foregoing, if during the last three (3)
Project Quarters, there is an insufficient quantity of Monsanto
DNA Information being analyzed under the Project Plan to allow
the Production Target Level to be reached, then
[___________________________________
15
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
______]* for such quarter will be paid based on
[_____________________ _________]* for such Project Quarter to the
[______________________]* for such Project Quarter subject to the
limit on the sum of all Production payments in the preceding
paragraph.
Such payment will be made within sixty (60) days of the
demonstration of the achievement of the Production Target Level.
4.1.5 Additional Optional Projects
The following changes to the Project Plan will occur upon proper
notice from Monsanto to Paradigm
4.1.5.1. Rice Option
Provided that Monsanto gives Paradigm at least six (6) months
written notice of its desire to add rice to the project, in
addition to the project initially described in the Project Plan,
Paradigm will add analyzing rice to the project. This expansion
will begin as of the beginning of the fifth, sixth, seventh or
eighth Project Quarter and continue for 20 Project Quarters. The
Project Plan will be appropriately amended by the parties.
Production Target Levels for rice are set out in Appendix E and
quarterly and production payments for rice are set out in
Appendix F.
4.1.5.2. Increase in Arabidopsis
Provided that Monsanto gives Paradigm at least six (6) months
written notice of its desire to increase the number of Arabidopsis
genes to be analyzed, Paradigm will increase the number of genes to
be analyzed in Arabidopsis by [____]* genes. This expansion will
begin as of the beginning of the ninth, tenth, eleventh or twelfth
Project Quarter and continue for 20 Project Quarters, with the Term
of this Agreement being appropriately extended The Project Plan will
be appropriately amended by the parties. Production Target Levels
for this option are set out in Appendix G and quarterly and
production payments for this option are set out in Appendix H.
4.1.5.3 Increase in Arabidopsis
Provided that Monsanto gives Paradigm at least six (6) months
written notice of its desire to increase the number of Arabidopsis
genes to be analyzed, Paradigm will increase the number of genes to
be analyzed in Arabidopsis by [____]* genes. This expansion will
begin as of the beginning of the ninth, tenth, eleventh or twelfth
Project Quarter and continue for 24 Project Quarters with the Term
of this Agreement being appropriately extended. The Project Plan
will be appropriately amended by the parties. Production Target
Levels for this option are set out in
16
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Appendix I and quarterly and production payments for this option are
set out in Appendix J.
4.1.5.4 Impact of Expansion - Production Target Level Measurement
Each Production Target Level set out in the appendices will be
measured independently with Arabidopsis deliverables counted toward
the Production Target Levels set forth in Appendix C first up to
100% of the Production Target Levels set forth in Appendix C and the
remainder applied to the expansion in Articles 4.1.5.2 or 4.1.5.3,
whichever applies. Production payments for each expansion shall be
calculated pursuant to the formula set forth in Article 4.1.4. In
addition, failure to achieve Production Target Levels for any
expansion in Articles 4.1.5.1, 4.1.5.2 and 4.1.5.3 as described in
Article 3.5.2 shall only give rise to a right of termination of the
expansion and not the original Project Plan unless the Production
Target Levels of the original Project Plan are also not achieved as
set out in Article 3.5.2.
4.1.5.5 Impact of Expansion - right to terminate
If Monsanto exercises its option under Article 4.1.5.1, 4.1.5.2, or
4.1.5.3, then Monsanto's right to terminate this Agreement pursuant
to Article 3.5.1 will terminate.
4.2 Royalties - Monsanto Licensed Products
Monsanto shall pay Paradigm a royalty of [_]* of the aggregate
[__________]* of all Monsanto Licensed Products sold by Monsanto or its
Affiliates or a licensee of Monsanto (except in the case of a bare
sublicense as provided in Article 4.3) subject to the following conditions:
4.2.1 Minimum Royalty
The minimum annual royalty to be paid by Monsanto will be
[_____________________________________]* for each trait within
Monsanto Licensed Products that is covered by Licensed Patent
Rights, provided such trait is used in a crop in Appendix A,
otherwise the minimum royalty shall be [_______________________]*
subject to Article 4.2.2. If earned royalties paid pursuant to
Article 4.2 do not reach this amount, the balance will be paid with
the report delivered for the second half of each annual period
(either fiscal or calendar) pursuant to Article 5.1. By way of
illustration, engineering drought resistance into corn and soybeans
would be a single trait, regardless of the number of genes used to
achieve that trait, with a minimum annual royalty of
17
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
[_______]* and engineering drought resistance and freeze resistance
into corn would be two traits with a minimum annual royalty of
[_______]*.
4.2.2 One Royalty
Royalties shall be paid by Monsanto on a product-by-product basis.
Only one royalty shall be due and payable to Paradigm by Monsanto
regardless of the number of patents included in the Licensed Patent
Rights practiced by Monsanto and its Affiliates and sublicensees in
connection with the production and commercialization of a particular
Licensed Product, provided, such royalty shall reflect [___]* of the
total aggregate [__________]* of such Licensed Product.
4.2.3 Third Party Royalty Offset.
In the event that Monsanto owes royalties directly or indirectly to
an independent third party for licenses to intellectual property
necessary for use of Licensed Patent Rights in the commercialization
of Licensed Products, then Monsanto may offset against royalties due
to Paradigm an amount [__________________________________________]*
being paid to Paradigm with respect to the relevant Licensed Product
(e.g., where Paradigm receives a royalty of
[__________________________]*, Monsanto would be entitled to an
offset equal to [_____________]* of such royalties paid to third
parties). By way of illustration and without limitation, if the
[__________]* for a particular Licensed Product is[_______________
_____________]* and Monsanto owes a royalty to a third party with
respect to such Licensed Product of [__________________]*, then the
royalty due to Paradigm with respect to such Licensed Products would
be [__________________________________]*. Such offsets will not
affect Monsanto's obligation to pay minimum royalties pursuant to
Article 4.2.1.
4.2.4 Monsanto Royalty Buy-Out
Monsanto shall have an option to negotiate with Paradigm with
respect to a one-time payment to Paradigm with respect to each or
all Monsanto Licensed Product in lieu of paying any further
royalties on such products. The parties shall conduct such
negotiation in good faith, but neither shall be obligated to agree
to any buy-out.
4.3 License or sublicense of Licensed Patent Rights by Monsanto.
If Monsanto grants a license or sublicense of Licensed Patent Rights to a
third party non-Affiliate without providing such licensee or sublicensee
with a Licensed Product, Monsanto shall pay Paradigm [___________________]*
of Product Sublicense Payments received for such license or sublicense by
Monsanto, unless the grant is for a crop listed in Appendix A, in which
case
18
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Monsanto shall pay Paradigm [_________________]* of Product Sublicense
Payments received for such license or sublicense by Monsanto. All such
payments shall apply against the minimum royalty payments set forth in
Article 4.2.1.
4.4 Royalties - Paradigm Licensed Products
Paradigm shall pay Monsanto [____________________________________
_________________________________________________________________]*
received for any license or sublicense granted by Paradigm under the
license granted to it by Article 2.6.
4.5 Valuation of Non-Monetary Consideration for Product Sublicense Payments:
Paradigm or Monsanto can accept non-monetary consideration for the sale of
any product or the grant of any license or sublicense for which Product
Sublicense Payments are to be calculated under this Article, provided that
such non-monetary consideration can be reasonably valued.
5. RECORDS
-------
5.1 Payments of Royalties
Within ninety (90) days of the end of the applicable semi-annual period
(either fiscal or calendar) following the first commercial sale of a
Licensed Product and within ninety (90) days after the end of each six
months thereafter, the party selling or receiving value for such Licensed
Product shall make a written report to the other party setting forth the
information, including that of Affiliates and licensees or sublicensees,
necessary to permit the other party to calculate and confirm the royalty
payment due the other party, even if no royalty payment is due. At the time
each report is made, the party selling or receiving value shall pay to the
other party the royalties shown by such report to be payable hereunder.
Payments due on sales in foreign currency shall be calculated in United
States dollars on the basis of the rate of exchange in effect for purchase
of dollars at Chase Manhattan Bank, New-York, New York, on the last
business day of the last-preceding June or December, whichever shall be
later. Payments shall be without set off and free and clear of any taxes,
duties, fees or charges other than withholding taxes, if any. Payment shall
be made by wire transfer to an account in the United States which the other
party may designate from time to time by prior, written notice.
5.2 Books and Records for Royalty Payments
Each party shall keep, and shall cause its Affiliates, licensees and
sublicensees to keep, books and records in such reasonable detail as will
permit the reports provided for in this Article hereof to be made and the
royalties payable hereunder to be determined. Each party further agrees to
permit each party's and their
19
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Affiliates books and records to be inspected and audited from time to time
(but not more often than once annually) during reasonable business hours by
an independent auditor, designated by the holder of such books and records
and approved by the other party, which approval will not be unreasonably
withheld, to the extent necessary to verify the reports provided for in
this article provided, however, that such auditor shall indicate to the
other party only whether the reports and royalties paid are correct, and if
not, the reason why not. In the event that such an audit results in
additional royalties being owed to the other party, such royalties shall be
paid within sixty (60) days from notice of deficiency along with interest
calculated as from the date the correct payment was due to the date of
actual payment at an annual rate of five (5) percentage points above the
prime rate quoted by Chase Manhattan Bank, New York, New York, on the day
payment was due, until paid; and if the original payment was more than five
percent (5%) less than it should have been, the cost of the audit shall be
reimbursed.
5.3 Late Payment of Royalties
If any royalties owed under this Agreement are not paid when due, the
unpaid amount shall bear interest, compounded annually, at an annual rate
of five (5) percentage points above the prime rate quoted by Chase
Manhattan Bank of New York on the day payment was due, until paid or
offset.
6. INTELLECTUAL PROPERTY
---------------------
6.1 Ownership of Project Technology Other Than Gene Patent Rights.
Except as set forth in Article 2.1 of this Agreement (which covers Gene
Patent Rights): (i) any Project Technology and any patent applications and
patents claiming Project Technology first conceived or discovered by one or
more employees of Monsanto shall belong to Monsanto ("Monsanto Patents");
(ii) any Project Technology and any patent applications and patents
claiming an Project Technology first conceived or discovered by one or more
employees of Paradigm shall belong to Paradigm ("Paradigm Patents"); and
(iii) any Project Technology and any patent applications and patents
claiming any Project Technology first conceived or discovered jointly by
one or more employees of Monsanto and one or more employees of Paradigm
shall belong jointly to Monsanto and Paradigm ("Joint Patents"). Each owner
of any Joint Patent shall be free to exploit its undivided interest in such
Joint Patent. Inventorship shall be determined in accordance with United
States patent laws.
6.2 Disclosure of Patentable Inventions
In addition to the disclosures otherwise required under this Agreement,
each party shall submit a written report to the other within sixty (60)
days of the end of
20
each Project Quarter summarizing any invention arising in the performance
of the Project Plan during the prior Project Quarter which it believes may
be patentable.
6.3 Access to Gene Patent Rights
Monsanto shall provide Paradigm with access to inspect patent applications
and prosecution files for Gene Patent Rights and to make copies of such
files and prosecution files at its own expense and for its own internal use
upon reasonable notice to Monsanto of Paradigm's intent to perform such
inspection. Paradigm shall bear the out-of pocket costs of inspecting and
copying such patent applications and prosecution files.
6.4 Patent Prosecution and Maintenance; Paradigm Patents
Paradigm shall control the preparation, filing, prosecution and maintenance
of all Paradigm Patents and be responsible for all costs associated
therewith. In the event Paradigm elects not to file in a reasonable time or
to cease prosecution of a filed application for a Paradigm Patent or to
abandon an issued Paradigm Patent, Paradigm shall notify Monsanto not less
than two (2) months before any relevant deadline, and Monsanto shall have
the right to assume control over the prosecution of such filed application
for a Paradigm Patent or maintenance of such issued Paradigm Patent.
6.5 Patent Prosecution and Maintenance; Monsanto Patents
Monsanto shall control the preparation, filing, prosecution and maintenance
of all Monsanto Patents and be responsible for all costs associated
therewith. In the event Monsanto elects not to file in a reasonable time or
to cease prosecution of a filed application for a Monsanto Patents or to
abandon an issued Monsanto Patents, Monsanto shall notify Paradigm not less
than two (2) months before any relevant deadline, and Paradigm shall have
the right to assume control over the prosecution of such filed application
for a Monsanto Patent or maintenance of such issued Monsanto Patent.
6.6 Patent Prosecution and Maintenance; Joint Patents
The parties shall agree upon an outside law firm who shall prepare, file,
prosecute and maintain Joint Patents under the joint instructions of the
parties. All costs shall be shared equally. In the event Paradigm or
Monsanto elects not to share or continue to share such costs of prosecution
of a filed application for a Joint Patent or maintenance costs for an
issued Joint Patent, it shall notify the other party not less than two (2)
months before any relevant deadline, and the other party shall have the
right to assume sole control over the prosecution of such filed application
for a Joint Patent or maintenance of such issued Joint Patent. In such
event, the party which assumes such control shall have title to such Joint
Patent and the other party agrees to execute the appropriate documents to
assign such patent to the other party.
21
6.7 Gene Patent Rights
6.7.1 Disclosure
Each party shall promptly disclose to the other any invention made
during the Term of this Agreement by such party which may reasonably
be expected to be the subject of a Gene Patent Right. In order to
safeguard Monsanto's right to prepare, file and prosecute Gene
Patent Rights, Paradigm will not file any patent application which
discloses the sequence, composition or function of any Monsanto DNA
Information until the earlier of: (i) receipt of notice from
Monsanto that a patent application has been filed on such Gene
Patent Rights; or (ii) six (6) months after disclosure by Paradigm
to Monsanto that it seeks to file a patent application that would
disclose the sequence, composition or function of Monsanto DNA
Information, unless the parties mutually agree to extend such time.
6.7.2 Prosecution of applications
Monsanto shall control the preparation, filing, prosecution and
maintenance of all Gene Patent Rights and be responsible for all
costs associated therewith. Monsanto will notify Paradigm of the
filing of each application for a Gene Patent Right within five (5)
days of such filing and provide Paradigm with a copy of such
application. In the event Monsanto elects not to file a patent
applications, ceases prosecution of a filed application for a Gene
Patent Right or decides to abandon an issued Gene Patent Right,
Monsanto shall notify Paradigm as early as possible, but not less
than one (1) month before any relevant deadline, and Paradigm shall
have the right to assume control over the filing of an application
for such Gene Patent Right, prosecution of such filed application
for a Gene Patent Right or maintenance of such issued Gene Patent
Right.
6.8 Cooperation
Each party agrees to cooperate with the other in preparing and executing
any documents necessary or useful to obtain patent protection on any
invention that is subject to this Agreement in any country in the world.
6.9 Costs
Each party shall retain control over and bear all expenses associated with
the filing, prosecution and maintenance of patents on inventions made
before the effective date of this Agreement by such party.
22
6.10 Patent Litigation: Right to Bring Suit
Each party shall have the sole power to institute and prosecute at its own
discretion and expense suits for infringement of their respective patent
rights, provided that if Monsanto does not bring suit against a party who
is alleged to be infringing any Gene Patent Right through the sale of a
Paradigm Licensed Product within sixty (60) days of a request from
Paradigm to bring such suit, then Paradigm may bring such suit in its own
name or in the name of Monsanto. Each party agrees to cooperate with the
other in any suit brought under this Article. All expenses in such suits
will be borne entirely by the party bringing such suit and such party
shall collect all judgments or awards arising from these suits. In the
event a judgment or award is collected by the party bringing the suit,
then the party not bringing the suit shall be entitled to any royalties or
shares of Product Sublicense Payments which they would otherwise have been
entitled to from the sale of Licensed Products by the infringer.
6.11 Confidential Treatment
All information disclosed under this Article 7 shall be treated as
Confidential Information under Article 8.
7. CONFIDENTIALITY
---------------
7.1 Confidential Information:
It is anticipated that it will be necessary, in connection with their
obligations under this Agreement, for Paradigm and Monsanto, and
Affiliates of either party, to disclose to each other confidential
proprietary business and/or technical information ("Confidential
Information") relating to their respective businesses, products and
technologies. The Confidential Information shall include information
disclosed in writing or other tangible form, including samples of
materials.
7.2 Confidentiality and Limited Use:
7.2.1 Limited Use:
With respect to all Confidential Information, both Paradigm and
Monsanto and Subsidiaries and wholly-owned Affiliates of either
party agree as follows, it being understood that "recipient"
indicates the party receiving the confidential, proprietary
information from the other "disclosing" party. Confidential
Information disclosed to the recipient shall remain the property of
the disclosing party and shall be maintained in confidence by the
recipient and shall not be disclosed to third parties or to
Affiliates other than Subsidiaries or wholly-owned Affiliates by the
recipient and, further, shall not be used except for purposes
contemplated
23
in this Agreement. All confidentiality and limited use obligations
with respect to the Confidential Information shall terminate five
(5) years after the termination date of this Agreement.
7.2.2 Exceptions to Disclosure of Confidential Information:
Notwithstanding any provision to the contrary, a party may disclose
the Confidential Information of the other party: (i) in connection
with an order of a court or other government body or as otherwise
required by or in compliance with law or regulations; provided that
the disclosing party provides the other party with notice and takes
reasonable measures to obtain confidential treatment thereof; (ii)
in confidence to attorneys, accountants, banks and financial sources
and their advisors; or (iii) in confidence, in connection with a
license, sublicense, or acquisition, permitted by this Agreement.
7.3 Exceptions to Classification as Confidential:
The obligations of confidentiality and limited use shall not apply to any
of the Confidential Information which
7.3.1 Publicly Available:
as of the date of disclosure is publicly available by publication or
other documented means or later becomes likewise publicly available
through no act or fault of recipient; or
7.3.2 Already Known:
is already known to recipient before receipt from the disclosing
party, as demonstrated by recipient's written records; or
7.3.3 Third Party Disclosure:
is made known to recipient by a third party who did not obtain it
directly or indirectly from the disclosing party and who does not
obligate recipient to hold it in confidence.
7.4 Specific Information:
Specific information shall not be deemed to be within any of these
exclusions merely because it is embraced by more general information
falling within these exclusions.
24
7.5 Disclosures to Personnel:
Recipient agrees to advise those of its officers, directors, stockholders,
employees, associates, agents, consultants, and Affiliates who become aware
of the Confidential Information, of these confidentiality and limited use
obligations and agrees, prior to any disclosure of Confidential Information
to such individuals or entities, to make them bound by obligations of
confidentiality and limited use of the same stringency as those contained
in this Agreement.
7.6 Return of Confidential Information:
Upon termination of this Agreement, originals and copies of Confidential
Information in written or other tangible form will be returned to the
disclosing party by recipient or destroyed by recipient, except to the
extent that it is the subject of a continuing license or other right of
use. One copy of each document may be retained in the custody of the
recipient's legal counsel solely to provide a record of what disclosures
were made.
7.7 Confidential Status of Agreement:
The terms and existence of this Agreement shall be deemed to be
Confidential Information and shall be dealt with according to the
confidentiality requirements of this Article. Both parties agree,
furthermore, that neither party will make public disclosures concerning
other specific terms of this Agreement without obtaining the prior written
consent of the other party, which consent shall not be unreasonably
withheld. Notwithstanding the foregoing, at such time as Paradigm or
Monsanto may request, the parties shall mutually agree on a press release
announcing the execution of this Agreement and the basic terms hereof. Once
any written statement is approved for disclosure by both parties, either
party may make subsequent public disclosures of the contents of such
statement without the further approval of the other party.
7.8 Disclosure to Third Parties
7.8.1 Consultants
Monsanto and Paradigm will be permitted to share Project Technology
with third parties who have signed a funded research agreement which
obligates the third party to do research for the party, maintain the
Project Technology confidential and to assign all inventions and
discoveries arising from the Project Technology to the party to the
agreement (either Monsanto or Paradigm). The parties will inform
each other which such third parties have been given access to
Project Technology.
25
7.8.2 Investors
Paradigm may disclose Confidential Information to current and future
Paradigm investors and other sources and potential sources of
financing so long as, in each case, the entity to which disclosure
is made is bound to confidentiality on terms consistent with those
set forth herein. With respect to Project Technology, such investors
and other sources of financing are to be given a summary of
Confidential Information related to Project Technology, including a
summary of patent information, which the investors can use for
investment purposes only. Such summaries shall be reviewed and
approved by Monsanto prior to any such disclosure, such approval
shall not be unreasonably withheld. Paradigm shall make reasonable
efforts to provide such summaries well in advance of any need to
disclose such summaries. While Monsanto's approval will be deemed to
have been given unless Monsanto notifies Paradigm of its disapproval
within ten (10) days after receipt of the summary, Paradigm agrees
to extend this time period if practicable upon the request of
Monsanto.
7.9 Publications
It is expected that each party may wish to publish the results of its
research under this Agreement. Contributions by the other party shall be
acknowledged in any publication by the publishing party. In order to
safeguard intellectual property rights, the party wishing to publish or
otherwise publicly disclose material which describes or otherwise discloses
the other party's Confidential Information or Project Technology shall
first submit a draft of any proposed manuscript to the Project Committee
for review, comment and consideration of appropriate patent application
preparation activity at least sixty (60) days prior to any submission for
publication or other public disclosure. The Project Committee will advise
the party seeking publication as to whether a patent application will be
prepared and filed or whether Confidential Information should be removed
from the disclosure. The Project Committee will, in cooperation with both
parties, determine the appropriate timing and content of any such
publications. The Project Committee can, in its discretion, request that
the publishing party delay publication for a reasonable time period for the
purpose of preparation of an appropriate patent application(s). If the
Project Committee is no longer functioning, its responsibilities under this
Article 7.9 will be assigned to a committee consisting of one person
designated by Monsanto and one person designated by Paradigm.
8. REPRESENTATION AND WARRANTIES
-----------------------------
8.1 Monsanto
Monsanto represents and warrants that it has the right to make conveyances
and grants in accordance with the Articles hereof, including, without
limitation, the delivery of the Monsanto DNA Information and the grant of
rights to use Monsanto Enabling Technology. It is expressly understood,
however, that in
26
making the conveyances and grants under this Agreement with the exception
of the foregoing provisions of this paragraph, Monsanto MAKES NO
REPRESENTATION, EXTENDS NO WARRANTIES, EITHER EXPRESS OR IMPLIED, AND
ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO:
1) THE SCOPE OR VALIDITY OF ANY PATENT WHICH MAY FALL WITHIN LICENSED
PATENT RIGHTS;
2) ANY USE OF LICENSED PRODUCT OR MONSANTO ENABLING TECHNOLOGY BEING FREE
FROM INFRINGEMENT OF PATENTS OTHER THAN THE MONSANTO PATENTS CLAIMING
MONSANTO ENABLING TECHNOLOGY OR LICENSED PATENT RIGHTS.
8.2 Paradigm
Paradigm represents and warrants that it has the right to make conveyances
and grants in accordance with the articles hereof. Paradigm does not
warrant that any use of the Project Technology database is without
liability to any third party or without a need to obtain a license from
such third party. Except as set forth in the first sentence of this
paragraph, Paradigm MAKES NO REPRESENTATION, EXTENDS NO WARRANTIES, EITHER
EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT
TO:
1) THE SCOPE OR VALIDITY OF ANY PATENT WHICH MAY FALL WITHIN LICENSED
PATENT RIGHTS;
2) ANY USE OF LICENSED PRODUCT BEING FREE FROM INFRINGEMENT OF PATENTS
OTHER THAN THE LICENSED PATENT RIGHTS.
8.3 Third Party Obligation
Paradigm has informed Monsanto that it has an exclusive herbicide discovery
project with a third party that involves functional analysis of Arabidopsis
genes. Paradigm shall not conduct research for Monsanto relating to the
identification and development of novel genes, and/or gene products, gene
functions and assays useful to measure the potential herbicidal activity of
chemical compounds or substances. Notwithstanding the above provisions in
Article 2.1, Monsanto will not own inventions in the field of herbicides
made by Paradigm or any patent application or patent based on such
inventions and Paradigm will grant no rights to Monsanto with respect to
inventions in the field of herbicides or with respect to any patent
application or patent based on such inventions.
27
9. INDEMNIFICATION
---------------
9.1 GENERAL -PARADIGM
EXCEPT TO THE EXTENT CAUSED BY MONSANTO'S NEGLIGENCE OR WILLFUL MISCONDUCT,
OR ARISING FROM A BREACH BY MONSANTO OF ITS WARRANTIES UNDER ARTICLE 8.1
ABOVE, PARADIGM SHALL DEFEND AND INDEMNIFY AGAINST, AND HOLD MONSANTO AND
ITS EMPLOYEES, DIRECTORS, OFFICERS AND AGENTS HARMLESS FROM, ANY LOSS,
COST, LIABILITY OR EXPENSE (INCLUDING COURT COSTS AND REASONABLE FEES OF
ATTORNEYS AND OTHER PROFESSIONALS) INCURRED FROM ANY CLAIM ARISING OR
ALLEGED TO ARISE OUT OF THE MANUFACTURE, USE, DISTRIBUTION OR SALE BY
PARADIGM OR ANY PARADIGM AFFILIATE OF ANY LICENSED PRODUCT; PROVIDED,
HOWEVER, THAT (I) PARADIGM SHALL HAVE SOLE CONTROL OF SUCH DEFENSE, AND
(II) MONSANTO SHALL PROVIDE NOTICE PROMPTLY TO PARADIGM OF ANY ACTUAL OR
THREATENED CLAIM OF WHICH MONSANTO BECOMES AWARE.
9.2 GENERAL -MONSANTO
EXCEPT TO THE EXTENT CAUSED BY PARADIGM'S NEGLIGENCE OR WILLFUL MISCONDUCT,
OR ARISING FROM A BREACH BY PARADIGM OF ITS WARRANTIES UNDER ARTICLE 8.2
ABOVE, MONSANTO SHALL DEFEND AND INDEMNIFY AGAINST, AND HOLD PARADIGM AND
ITS EMPLOYEES, DIRECTORS, OFFICERS AND AGENTS HARMLESS FROM, ANY LOSS,
COST, LIABILITY OR EXPENSE (INCLUDING COURT COSTS AND REASONABLE FEES OF
ATTORNEYS AND OTHER PROFESSIONALS) INCURRED FROM ANY CLAIM ARISING OR
ALLEGED TO ARISE OUT OF (A) THE MANUFACTURE, USE, DISTRIBUTION OR SALE BY
MONSANTO, ANY MONSANTO AFFILIATE, OR ANY MONSANTO LICENSEE OR SUBLICENSEE
OF ANY PRODUCT CONTAINING ANY LICENSED PRODUCT; OR (B) THE INFRINGEMENT OF
ANY PATENT, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT OF ANY THIRD
PARTY AS A RESULT OF THE USE OF ANY MONSANTO DNA INFORMATION IN THE PROJECT
PLAN; PROVIDED, HOWEVER, THAT (I) MONSANTO SHALL HAVE SOLE CONTROL OF SUCH
DEFENSE, AND (II)PARADIGM SHALL PROVIDE NOTICE PROMPTLY TO MONSANTO OF ANY
ACTUAL OR THREATENED CLAIM OF WHICH PARADIGM BECOMES AWARE.
9.3 OTHER LOSS
EXCEPT TO THE EXTENT PROVIDED FOR IN THIS AGREEMENT, NEITHER PARTY
SHALL BE LIABLE TO THE OTHER FOR ANY LOSS OF
28
PROFITS, LOSS OF BUSINESS, INTERRUPTION OF BUSINESS, INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES OF ANY KIND SUFFERED BY SUCH OTHER PARTY FOR BREACH
HEREOF, WHETHER BASED ON CONTRACT OR TORT CLAIMS OR OTHERWISE, EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS.
10. APPLICABLE LAW
--------------
10.1 Governing Law; Jurisdiction
THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT AND ANY
DISPUTE CONNECTED WITH THIS AGREEMENT SHALL BE GOVERNED BY AND DETERMINED
IN ACCORDANCE WITH THE STATUTORY, REGULATORY AND DECISIONAL LAW OF THE
STATE OF DELAWARE (EXCLUSIVE OF SUCH STATE'S CHOICE OR CONFLICTS OF LAWS
RULES) AND, TO THE EXTENT APPLICABLE, THE FEDERAL STATUTORY, REGULATORY AND
DECISIONAL LAW OF THE UNITED STATES (EXCEPT FOR THE U.N. CONVENTION ON
CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS, APRIL 10, 1980, U.N. DOC.
A/CONF. 97/18, 19 I.L.M. 668, 671 (1980) REPRINTED IN PUBLIC NOTICE, 52
FED. REG. 662-80 (1987), WHICH IS HEREBY SPECIFICALLY DISCLAIMED AND
EXCLUDED).
11. MISCELLANEOUS PROVISIONS
------------------------
11.1 Notices:
All notices and other communications required or permitted under this
Agreement shall be deemed to be properly given when in writing and sent by
registered or certified mail, postage prepaid or by reputable courier
service providing evidence of delivery or by facsimile with receipt
confirmation, to the other party at the address set forth below, or at such
other address as either party may be in writing designate from time to time
for these purposes.
If to Paradigm: Paradigm Genetics Inc.
000 Xxxxxxxxx Xxxxx, Xxxxxxxx 0
X0 Xxx 00000
XXX, Xxxxx Xxxxxxxx, 00000
Attention: Chief Executive Officer
with a copy to: Chief Counsel, Paradigm Genetics
If to Monsanto: Monsanto Company
000 Xxxxxxxxxxxx Xxxxxxx Xxxxx
Xx. Xxxxx, Xxxxxxxx 00000
Attention: President, Ag
29
Copy to: Monsanto Company
000 Xxxxx Xxxxxxxxx Xxxxxxxxx
Xx. Xxxxx, Xxxxxxxx 00000
Attention: Group Patent Counsel
11.2 Assignability:
The rights and obligations acquired herein by the parties are not
assignable, transferable or otherwise conveyable, in whole or part (by
operation of law or otherwise) to any third party without the consent of
other party, which shall not be unreasonably withheld, except that either
party may, without such consent, assign its rights and obligations to any
purchaser of all or substantially all of the assets of the party related
to this Agreement or to any successor corporation resulting from any
merger or consolidation of a party.
11.3 Dispute Resolution
11.3.1 General
All disputes which may arise under, out of, or in connection with
this Agreement shall be resolved as follows:
11.3.2 Parties Shall Meet
First, the parties shall make all commercially reasonable efforts
to resolve the dispute. If, after making all commercially
reasonable efforts the parties cannot resolve the issue within
six months after written notice of the dispute from one party to
the other, then the parties may appoint one or more independent
parties to assist in resolving the dispute through mediation
("mediation stage").
11.3.3 CEOs Shall Meet
If the mediation described above does not resolve the dispute,
then the Chief Executive Officer of Monsanto and the Chief
Executive Officer of the ultimate parent of Paradigm shall meet
to resolve the dispute.
11.3.4 Arbitration Trigger
In the event such Chief Executive Officers shall not have
resolved such matter within sixty (60) days of written request by
one of such Chief Executive Officers for such a meeting, either
party may initiate arbitration with respect to such dispute in
accordance with paragraph 11.3.5 hereof.
30
11.3.5 Arbitration Rules
The arbitration proceeding shall be conducted in the City of New
York, State of New York, United States of America, in accordance
with the then existing commercial rules of the American Arbitration
Association, and judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction
thereof. The parties hereby agree that service of any notices in
the course of such arbitration at their respective addresses as
provided for in Article 11.1 of this Agreement shall be valid and
sufficient. In any arbitration, the award shall be rendered by a
majority of the members of a Board of Arbitration consisting of
three (3) members, one of whom shall be appointed by Monsanto, the
second by Paradigm, and the third by mutual agreement of the first
two said arbitrators, and none of whom shall be affiliated with
either party or its Affiliates. In the event of failure of said
first two arbitrators to agree within sixty (60) days after
commencement of the arbitration proceeding upon the appointment of
the third member, the third arbitrator shall be appointed by the
American Arbitration Association in accordance with its then
existing rules.
Notwithstanding the foregoing, in the event that either such party
shall fail to appoint an arbitrator within thirty (30) days after
commencement of the arbitration proceeding, such arbitrator and the
third arbitrator shall be appointed by the American Arbitration
Association in accordance with its then existing rules. For the
purposes of this paragraph, the "commencement of arbitration
proceeding" shall be deemed to be the date upon which a written
demand for arbitration is received by the American Arbitration
Association from one of the parties.
11.3.6 Agreements to Agree
The failure by the parties to agree on any matter expressed in this
Agreement as a matter to be agreed upon by or determined by mutual
agreement, decision, consent or approval of the parties shall not
constitute a basis for the initiation by either party of litigation
or arbitration. Any court having jurisdiction under this Article or
any arbitrator shall have no power to decide any such matter to
which such mutual agreement, decision or consent has not been
obtained.
11.4 Tax Reporting:
Monsanto and Paradigm shall treat all payments made by Monsanto under
Article 4.1 as amounts paid for qualified research under section 41(b)(3)
of the Internal Revenue Code of 1986.
31
11.5 Severability:
In case any one or more of the provisions contained in this Agreement
shall for any reason be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect
any other provisions hereof, but this Agreement shall be construed as if
such invalid or illegal or unenforceable provisions had never been
contained herein.
11.6 Counterparts:
This Agreement may be executed in any number of counterparts, each of
which shall be an original with the same effect as if the signatures
thereto and hereto were upon the same instrument.
11.7 Headings:
Headings as to the contents of particular Articles are for convenience
only and are in no way to be construed as part of this Agreement or as a
limitation of the scope of the particular Articles to which they refer.
11.8 Agreement references:
All Articles referred to herein are Articles of this Agreement.
11.9 Appendices:
The appended Appendices form an integral part of this Agreement.
11.10 Export Control:
Notwithstanding any other provisions of this Agreement, Paradigm agrees to
make no disclosure or use of any Monsanto information or Monsanto
technology furnished or made known to Paradigm pursuant to this Agreement,
and Monsanto agrees to make no disclosure or use of any Paradigm
information, Paradigm technology or Improvements disclosed to Monsanto
pursuant to this Agreement except in compliance with the laws and
regulations of the United States of America, including the Export
Administration Regulations promulgated by the Office of Export
Administration International Trade Administration, United States
Department of Commerce; and in particular, each party agrees not to
export, directly or indirectly, either
the technical data furnished or made known to it by the other party
pursuant to this Agreement; or
the "direct product" thereof; or
32
any commodity produced using such technical data to any country or
countries for which a validated license is required unless a validated
license is first obtained pursuant to the Export Administration
Regulations. The term "direct product" as used above, is defined to mean
the immediate product (including process and services) produced directly
by the use of the technical data.
11.11 Force Majeure:
Except for payments of money, neither of the parties shall be liable for
any default or delay in performance of any obligation under this
Agreement caused by any of the following: Act of God, war, riot, fire,
explosion, accident, flood, sabotage, compliance with governmental
requests, laws, regulations, orders or actions, national defense
requirements or any other event beyond the reasonable control of such
party; or labor trouble, strike, lockout or injunction (provided that
neither of the parties shall be required to settle a labor dispute
against its own best judgment).
The party invoking this subparagraph shall give the other party notice
and full particulars of such force majeure event by telephone, telegram,
telex or facsimile as soon as possible after the occurrence of the cause
upon which said party is relying. Telephone, telegram, telex and
telecopier notices shall be confirmed in writing by the sending party
within five (5) days.
Both Monsanto and Paradigm shall use reasonable efforts to mitigate the
effects of any force majeure on their respective part.
11.12 Negation of Agency:
It is agreed and understood by the parties hereto that each of Paradigm
and Monsanto, in its performance of its obligations and responsibilities
under this Agreement, is an independent contractor and that nothing
herein contained shall be deemed to create an agency, partnership, joint
venture or like relationship between the parties. The manner in which
each of Paradigm and Monsanto carries out its performance under this
Agreement is within each of Paradigm's and Monsanto's sole discretion and
control.
11.13 Other Requests:
The parties hereto agree that upon reasonable request of the other party,
each such party shall execute and deliver such additional documents and
Agreements, and take such further actions, as may be necessary in order
to fulfill and give effect to the terms of this Agreement.
33
11.14 Amendment and Waiver:
This Agreement may be amended, modified, superseded or canceled, and any
of the terms may be waived, only by a written instrument executed by each
party or, in the case of waiver, by the party or parties waiving
compliance. The delay or failure of any party at any time or times to
require performance of any provisions shall in no manner affect the
rights at a later time to enforce the same. No waiver by any party of any
condition or of the breach of any term contained in this Agreement,
whether by conduct, or otherwise, in any one or more instances, shall be
deemed to be, or considered as, a further or continuing waiver of any
such condition or of the breach of such term or any other term of this
Agreement.
34
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the Effective Date.
PARADIGM GENETICS INC. MONSANTO COMPANY
By________________________________ By______________________________
Date______________________________ Date____________________________
35
APPENDICES
Appendix A - Major Crops
corn
soybean
wheat
rice
cotton
canola
oilseed rape
00
Xxxxxxxx X - Project Plan
PROJECT OVERVIEW
Paradigm Genetics and MONSANTO are entering into a strategic relationship to
leverage MONSANTO's investment in genomics by accessing PARADIGM's functional
genomics expertise and capacity. The objective of the relationship is to
develop a robust product discovery platform utilizing the strengths of both
parties. MONSANTO will provide PARADIGM with [____]* genes for analysis in
Arabidopsis. As shown in Table 1, these [____]* genes will be tested as
[_______ ___________________]* reflecting the combination of [_____]* and
[___________________]* illustrated in the table. PARADIGM will use diligent
effort to provide a full data package that provides functional data to
strengthen or obtain intellectual property claims for each gene. PARADIGM will
provide MONSANTO with customized data-packages concerning those genes including
the data from the experiments conducted in this project. Elements of the
Project Plan are subject to change based on mutual agreement within the Project
Committee, as set forth in the AGREEMENT to which this Project Plan is attached.
SCOPE
The goal is the functional analysis of [____]* genes, tested as
[_______________]* as shown in Table 1, over a period of [_______]* to determine
their function and to evaluate their
[____________________________________________]*. [_____________________________
________________________________________________________________________________
______________________]* for every gene are collected over the
[________________]* development cycle. The outlined data collection package
will be applied to Arabidopsis [_______________________________]* completing
[__________________]*. For [_________________]* exhibiting [_________________]*
at [___________________________]* data will be collected up to the point of
[___________]* and such data will be delivered as full data sets corresponding
to the respective gene.
RESEARCH PLAN
Arabidopsis [________________]* Generation:
Up to [____]* genes will be provided by MONSANTO either as
[_______________________________________________________________________________
__________________________]* for the gene. All of the genes will be
[_________]* and [_______]* into
[________________________________________________]* and subsequently
[________________]* Arabidopsis. For all Arabidopsis genes, genes will also be
investigated by [______________________]* The numbers of
[______________________________________________________________________________]
* assume investigation of a [____]* of genes of the following composition:
Table 1.
Gene Class [_____]* CONSTRUCTS [__________]* CONSTRUCTS
------------------------------------------------------------------------------------------
Arabidopsis [____]* [____]*
------------------------------------------------------------------------------------------
[_____________________]* [____]* [____]*
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Total [____]* [____]*
------------------------------------------------------------------------------------------
* Up to [____]* Arabidopsis [_________]* (corresponding to [___]*) of genes from
non-Arabidopsis [______]* or [___________________]* shall be used for
[_____________________]*.
37
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Composition of the [____]* of genes will not be changed unless otherwise
unanimously approved by the Project Committee, except that the number of
Arabidopsis genes may be increased with a corresponding decrease in
[___________________]* genes. In the case of [_______________________________]*
gene [____]* numbers corresponding to
[__________________________________________________]* will be adjusted in
proportion to the agreed upon numbers.
Concerning the generation of DNA constructs for Arabidopsis transformation, the
procedures and exchange of materials outlined in Table 2 will be performed
depending on [__________________________]* gene:
Table 2.
MONSANTO HAS MONSANTO DELIVERS PARADIGM DELIVERS
--------------------------------------------------------------------------------------------
Arabidopsis [_____]* [_____]* [____________]*
[________]* [_________]* [____________]*
[_____]* [____________]*
[____]* [________]*
--------------------------------------------------------------------------------------------
ARABIDOPSIS [________]* [________]* [____________]*
[_____]* [____]* [____________]*
[____]* [____________]*
[____]* [____________]*
--------------------------------------------------------------------------------------------
ARABIDOPSIS [________]* [____________]* [____________]*
[_____]* [________]* [____________________]*
[____]* [________]*
[____________]*
--------------------------------------------------------------------------------------------
[___________]* [________]* [________]* [____________]*
[_____]* [____________]* [____________________]*
[________]* [________________]*
[________]* [____________]*
[____________]* [________]*
--------------------------------------------------------------------------------------------
[___________]* [________]* [____________]* [____________]*
[_____]* [________]* [________]*
[____________]* [____________]*
[________]* [________]*
[____________]* [____]*
--------------------------------------------------------------------------------------------
Genes will be selected on a [_______]* basis. [___]* Arabidopsis genes for
[__________________]* constructs are to be selected [____________]* of the
collaboration to secure progress of the scientific work schedule. [___]*
additional genes for [_________________]* will be selected at the beginning of
[___________________________]*. [___]* additional genes shall be selected at
the beginning of [_____________________]*. [___]* genes will be selected in
[___]*. This results in a selection of the total [____]* genes at the beginning
of [___]* of the collaboration.
For all non-Arabidopsis genes, MONSANTO will provide [_____________________]* as
well as [_____________________________________________________________]*
respective genes suitable for [_________]* in Arabidopsis using [_______]*
provided by PARADIGM as described above unless otherwise unanimously approved by
the PROJECT COMMITTEE.
All genes are to be [_____]* using [__________________________________________]*
based on the information provided by MONSANTO. In case of non-successful
diligent performance of [________________________________________]*, the efforts
will be counted as [___]* of a data package. [___]* is to be performed [_____]*
using [____]* as template and [____]* with [____________]* template. If
[_________]* then a [____________]* of [____________]* shall be tested in the
same way. The status of all [_______]* efforts is reported to MONSANTO on a
weekly basis (spreadsheets and telephone/e-mail follow-up).
38
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
The preferred system to be used for [___________]* of all [___________]* is a
[________________]* system. During the [___________]* of the collaboration,
[__]* genes will be investigated using
[__________________________________________________________________]* as well as
[_______________________________________________________________________________
________________]*. MONSANTO will choose the [_________]* to be used in
consultation with PARADIGM. The [____________________]* system used will be
comprised of a [___________________________________________]* and a
corresponding [_________________________________________________]*. The
combined set of [____________________________]* will count as [__]* genes and
[___]* constructs (out of a total of [____]* genes and [____]* constructs). If
the [________________]* system is determined to be at least as effective as
[__________________]*, then PARADIGM will use [___________________________]* for
the remainder of the Research Program. In the interim, while the first [__]*
genes are being tested in parallel with [________________]* and
[__________________]*, PARADIGM intends to use [__________________]*. At the
end of the comparison with the first [__]* genes a decision on the system to use
for the program will be made.
After [_________________________________________]*, the identity of all genes
will be confirmed by [_______________]*.
For all genes, functional analyses comprised of
[_______________________________________________________________________________
__________________]* will be performed. All genes will be tested by
[_______________]* into Arabidopsis and the [________________________________]*.
It is intended that PARADIGM will generate sufficient [_________________]* for
each construct (a construct being [____________________________________]* for a
given gene) to have at least [_________________________________]* from which to
select the [________________________________________]* investigation. This
decision will be based on an analysis of [___________]* of the
[________________________]* as described in this paragraph. In the case of
using a [__________________]* system, levels of [___________]* of the
[___________]* are to be determined by [______]* for either the
[________________________________________________]*. The first [__]* genes in
[____________________]* orientation will be evaluated for [___________]* of both
the [_____________________________________]*. At this time it is anticipated
that selection of the [_______]* for each [__________]* for further
investigation will be based on selection of those that show the
[___________________________]*. Upon initial evaluation of the data generated
from [__]* individual genes in which both [______________________________]* have
been determined, the PROJECT COMMITTEE will decide on a final procedure.
Generated [___________________]* as well as samples of [____]* from
[___________________________]* that were grown
[_______________________________________________________________________________
_______]* for the duration of the collaboration. Extracts from
[______________]* will be [____________________]* after the final analysis is
performed. [_______________________]* generated and used during the
collaboration will be stored for [______]* after the analysis of the
corresponding gene has been performed. Reasonable amounts of these materials
will be made available to MONSANTO upon request. This will include at least
[______________]* lots to allow [____________]* analysis of [________________]*
by MONSANTO.
39
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
STANDARD [________________]*:
For every [________________]*, individual [______]* are to be investigated over
[________________________]*. [___________]* data are to be collected from a
total of [________________________]*. Early developmental stages will be
investigated on [____________]* or in
[___________________________________________]*. Measurements are to be
performed on a regular schedule or at distinct growth stages as outlined in
Table 3.
Table 3.
[_____]* MEASUREMENTS Growth Stage
--------------------------------------------------------------------------
[_________________________________]* [____]*
--------------------------------------------------------------------------
[___________________________________]* [____]*
--------------------------------------------------------------------------
[___________________________________]* [____]*
--------------------------------------------------------------------------
[___________________________________]* [____]*
--------------------------------------------------------------------------
[______________________________________]* [____]*
--------------------------------------------------------------------------
[______________________________________]* [____]*
--------------------------------------------------------------------------
[________________________________]* [____]*
--------------------------------------------------------------------------
[__________________________]* [__________]*
--------------------------------------------------------------------------
[__________________________]* [__________]*
--------------------------------------------------------------------------
[____________________]* [__________]*
--------------------------------------------------------------------------
[____________________________________]* [__________]*
--------------------------------------------------------------------------
[_____________________________________]* [__________]*
--------------------------------------------------------------------------
[_____________________________________]* [__________]*
--------------------------------------------------------------------------
[______________________________________]* [__________]*
--------------------------------------------------------------------------
[________________________]* [__________]*
--------------------------------------------------------------------------
[_______________________]* [_____________]*
--------------------------------------------------------------------------
[__________________________________]* [_____________]*
--------------------------------------------------------------------------
[__________________________________]* [_____________]*
--------------------------------------------------------------------------
[___________________________________]* [_____________]*
--------------------------------------------------------------------------
[______________________________________]* [_____________]*
--------------------------------------------------------------------------
[______________________________________]* [______________]*
--------------------------------------------------------------------------
Additional [_____]* Measurements from Table 4 can be performed as decided by the
Project Committee.
40
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Table 4.
1 [_____________]*
-------------------------------------------------
2 [__________________]*
-------------------------------------------------
3 [_____________________]*
-------------------------------------------------
4 [___________________]*
-------------------------------------------------
S [____________________]*
-------------------------------------------------
6 [_____________________]*
-------------------------------------------------
7 [__________]*
-------------------------------------------------
8 [______________]*
-------------------------------------------------
[______________________]* will be investigated under
[__________________________]* in [_______________]*. All [______]* shall be
grown under [______________________________________________________________]*
including [______________________________________________]* as well as [____]*
and [______________]* will be constantly monitored. Measurements performed
are listed in Table 5.
Table 5.
[____]* MEASUREMENTS GROWTH STAGE
--------------------------------------------------------------------
[_____________________]* [____]*
--------------------------------------------------------------------
[__________________________]* [__________]*
--------------------------------------------------------------------
[________________]* [__________]*
--------------------------------------------------------------------
[______________________________]* [__________]*
--------------------------------------------------------------------
[____________________________]* [____]*
--------------------------------------------------------------------
[_________________________________]* [____]*
--------------------------------------------------------------------
[_____________________________________]* [____]*
--------------------------------------------------------------------
[______________]* [__________]*
--------------------------------------------------------------------
[__________________]* [__________]*
--------------------------------------------------------------------
[_____________________]* [__________]*
--------------------------------------------------------------------
[__________________]* [__________]*
--------------------------------------------------------------------
[__________________]* [__________]*
--------------------------------------------------------------------
[_____________________]* [__________]*
--------------------------------------------------------------------
[____________________]* [__________]*
--------------------------------------------------------------------
[__________________________]* [____]*
--------------------------------------------------------------------
[_____________________________]* [____]*
--------------------------------------------------------------------
[_____________________________________]* [____]*
--------------------------------------------------------------------
[__________________________________]* [____]*
--------------------------------------------------------------------
[_________________________]* [__________]*
--------------------------------------------------------------------
[____________________________]* [__________]*
--------------------------------------------------------------------
[_________________________]* [__________]*
--------------------------------------------------------------------
[_______________]* [__________]*
--------------------------------------------------------------------
[______________________]* [___________]*
--------------------------------------------------------------------
41
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
[____]* MEASUREMENTS GROWTH STAGE
--------------------------------------------------------------------
[________]* [___________]*
--------------------------------------------------------------------
[____________]* [____]*
--------------------------------------------------------------------
[______________]* [___________]*
--------------------------------------------------------------------
[___________]* [___________]*
--------------------------------------------------------------------
[____________]* [___________]*
--------------------------------------------------------------------
[_____________]* [___________]*
--------------------------------------------------------------------
[______________]* [___________]*
--------------------------------------------------------------------
[___________]* [____]*
--------------------------------------------------------------------
[___________]* [____]*
--------------------------------------------------------------------
[______________]* [____]*
--------------------------------------------------------------------
[__________]* [____]*
--------------------------------------------------------------------
[___________]* [____]*
--------------------------------------------------------------------
[____________]* [____]*
--------------------------------------------------------------------
[______]* [____]*
--------------------------------------------------------------------
[________]* [____]*
--------------------------------------------------------------------
[__________]* [____]*
--------------------------------------------------------------------
[_________]* [____]*
--------------------------------------------------------------------
[_________]* [____]*
--------------------------------------------------------------------
[________]* [____]*
--------------------------------------------------------------------
[___________]* [___________]*
--------------------------------------------------------------------
[__________]* [___________]*
--------------------------------------------------------------------
[__________]* [____]*
--------------------------------------------------------------------
[____________]* [____]*
--------------------------------------------------------------------
[_____________]* [____]*
--------------------------------------------------------------------
[_____________]* [____]*
--------------------------------------------------------------------
[____________]* [____]*
--------------------------------------------------------------------
[_________]* [____]*
--------------------------------------------------------------------
[__________]* [____]*
--------------------------------------------------------------------
[________]* [____]*
--------------------------------------------------------------------
[______________]* [____]*
--------------------------------------------------------------------
[______]* [____]*
--------------------------------------------------------------------
[______]* [____]*
--------------------------------------------------------------------
[________]* [____]*
--------------------------------------------------------------------
[_________]* [____]*
--------------------------------------------------------------------
[_______]* [____]*
--------------------------------------------------------------------
[________]* [____]*
--------------------------------------------------------------------
[_____________]* [____]*
--------------------------------------------------------------------
[____________]* [____]*
--------------------------------------------------------------------
[______________]* [____]*
--------------------------------------------------------------------
Additional measurements from Table 6 can be performed as decided by the PROJECT
COMMITTEE.
42
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Table 6.
-------------------------------------------------
1 [____________________]*
-------------------------------------------------
2 [________]*
-------------------------------------------------
3 [____________]*
-------------------------------------------------
4 [________________]*
-------------------------------------------------
5 [________]*
-------------------------------------------------
6 [____]*
-------------------------------------------------
7 [____________]*
-------------------------------------------------
8 [____________]*
-------------------------------------------------
9 [____________]*
-------------------------------------------------
10 [____________]*
-------------------------------------------------
11 [____________]*
-------------------------------------------------
Data will be collected by [____________]* measurements of the [_____]* and from
[____]* of [________________________]*. Several traits including [____________]*
[_____________________________________________________________________________]*
[_____________________________________________________________________________]*
[____________]* will be used to define [___________________]* as they develop.
[____________]* measurements will be taken [_________]* to determine particular
[______________]* at which [____________]* and [____________]* will be
performed. For [________________]* [____________]*, analyses of the [______]*
generate between [___]* to [___]* individual [____________]* per gene of
interest. In addition, [_______]* will be taken from [________]*. During
[___________________]*, analyses of the [_____________]* will generate between
[_____]* to [______]* individual [_____________]* per [_________]*. In addition,
[_____]* will be taken from whole [________]* as well as [_______________]*.
In cases where [___________]* of the [___________]* (or [______________________
____________]* results in apparent [_______________]*, attempts will be made to
[_________]* with [_________________]* to [____________]*.
[_________________]* PROFILING:
At [_____________]*, [____________]* is to be [_________]* for [_______]*
analysis. The material is derived from individual [__________]* under [______]*
conditions as for the [__________]*. Material will be [__________]* from
[___________]* to generate a [_______________]* sample. All samples will be
submitted for [________________]* profiling, samples A) through C) from List 1
will be measured as [_______________]* from a [______________]* of tissue.
[_________________]* profiles include [______________]* and [_______________]*
analysis. For [____________]* profiling of [____________]*, special emphasis
is put on the analysis of [____________________________]*. Total [_________]*
will be quantified by [__________________]* profiling of [_________]* tissue
includes the determination of [________________________________________________
__________________]*. Specific methodologies will be applied upon agreement of
the PROJECT COMMITTEE.
43
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
LIST 1. HARVESTING TIME POINTS AND TISSUES:
A) [____________________________________________]*
B) [_________________________________________]*
C) [________________________________________________]*
D) [_____________________________]*
E) [_____________________________]*
Properties of the [_______________________________________________]*
o The output is [________]* and [___________]* data of [_________]* levels
in tissues. [______________]* levels will be defined relative to a
[_______________________________________]*. [________________]* will be
used to compare large data tables.
o Sample throughput is [________]*; one set of instruments is capable of
[_________]* per [___________]*.
o Sample processing consists of [_________________________________________]*
automation is used to [________________________]*.
o [_______________]*: [_____________]* is accomplished with [__________]* or
[____________]*. [____________________]* and [_____________________]* are
used to [______________]* of [_______________]*. [___________]* will be
subjected to [_________________]*, and [_______________]* are [_________]*
by [____________________]*.
o Detection: [_______________]* will be detected by [______________]* in the
forms of [__________________]* , and [______________]*. [__________]* are
to be analyzed by [____________________________]*.
o Data Reduction: The [__________________]* instruments generate [_______]*
of data per [_______________________]*. The [______________________]*.
Quantitative data for specific [___________________]* will be delivered to
MONSANTO, and these data will be updated and delivered to MONSANTO as the
[_____________________]* of [_______________________]*.
Sample Processing and Extraction
Extraction efficiency was determined analytically for several [____________]*.
Tissue is to be placed in a [__________________________]* and [______________]*
with a [______________]* of [_________________]*. The tissue is disrupted
for [____________________]* at an [___________________________]*.
o [_____________]* are obtained from the [_______________]* , following
[_______________]* through [_____________]*, and [_____________]* under
[____________________]*.
o [___________________]* are [___________]* from the [_______]* via [____]*
into [_____________]*. The [______________]* is subjected to [_________]*
and [__________________________]*.
o A portion of the [___________________________]* can be subjected to
[________________________]* for eventual analysis of [__________]* and
[____________]*, according to well established procedures.
o [________________]* analysis is accomplished following [________]* of
[____]* or [____________________]* tissue.
[___]* PROFILES
[_________________]* will be analyzed by [___________________]*. Primary focus
is the detection and quantitative analysis of [______________________]* and
[______________]*, the [_________]* comprise compounds of [_________]* (e.g.,
[________]* and [_________]* (e.g., [___________________________]*. From the
initiation of the research program PARADIGM will analyze all of the
[_________]* listed in Table 7 as well as trace [_________]* listed in this
paragraph. PARADIGM intends during the course of this agreement to attempt to
develop analytical capabilities to measure the components listed in Table 8. The
intention is to attempt to develop validated protocols for approximately
[___________________________]* and the remaining in the [__________________]*.
[___________________________]* listed in Table 8 have been abbreviated such
that Table 8 does not list all potential [__________________]* of various
[_________]* (e.g., [____________________________________]*. [__________________
___________]* are to be analyzed by total [__________________]* of tissue,
followed by [_________]*. [___________________________]* include [_________]*,
and other [__________________] components. PARADIGM will attempt to develop
validated protocols for the assays during the first [__________________]* for
all the [___________________________]* listed in Table 8 but which are not
listed in Table 7 below. PARADIGM will make a [_________]* to complete these
assays in the first [_______________]*.
44
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Table 7.
[ ]* PATHWAY CLASS
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
-------------------------------------------------------------------------------------
45
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Table 8.
[ ]* PATHWAY CLASS
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
46
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
[ ]* PATHWAY CLASS
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
47
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
[ ]* PATHWAY CLASS
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
48
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
[ ]* PATHWAY CLASS
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
[ ]* [ ]* [ ]*
------------------------------------------------------------------------------------
GENE [______________________]*
Gene [___________]* of Arabodopsis genes is determined from [___________]* to
the samples collected under List 1 for [_______________]*. For each [_________
___________]* of about [_____________]* genes will be assayed in relation
to the [____________]* level of [_______________]* under [_______]* conditions.
This allows evaluation of the level of [_________]* of those [_________]* in
relation to all other information collected from the respective [_________]*,
and provides information about effects of [_________________________]* of each
gene on [_______________]* Arabidopsis gene[__________]*. These assays will be
conducted [_____________]* on [____________]* to those used for
[__________________________]*.
At least [______________]*, the committee will evaluate the data from gene
[_________________]* of the [_________________________]* to determine the
value and utility of gene [___________________]*. If MONSANTO determines that
gene [______________]* of additional [_____________]* is not warranted, then
the committee will substitute in the research plan additional analysis that is
equivalent in cost and work effort to PARADIGM. For example, MONSANTO may
determine that additional [______________]* analyses should be performed
instead of continuing with gene [___________________________________________]*.
The intention is to keep the cost and work load to PARADIGM approximately
equivalent.
[________________]*
Besides the [____]* conditions on [______]* and in [_____________]*, all
[________________]* are investigated for their response to different
[________________]*. These [________________]* are:
[_______________________________________________]*
[_________________________________]*
[______________________]*
[___________]*
[____________________________________________]*
[_________________________________]*
Specific protocols will be discussed and approved by the PROJECT COMMITTEE.
[________________]*
[_____________]* under [____________]* conditions and [____________]* by [___]*
after [_________]* become [_________]*. [____]* are [__]* for [_____]*
additional [_____]* or until [___]* (whichever is shorter). [______]* is
assessed by measuring the following [_____________]* until [___________]*.
--------------------------------------------------------------
[______________________]* [_____________]*
--------------------------------------------------------------
[_________________________________]* [_____________]*
--------------------------------------------------------------
[_________________________________]* [_____________]*
--------------------------------------------------------------
49
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
[______]* is also assessed by measuring [___________]* by determining
[______________]* and [_________________________________________________]*.
[________________]*
[____]* are [____]* on [_____]* under [________]* conditions for [________]*,
[__________]* by placing [___________]* or [_________]* for [__________]*, and
returned to [____________]* conditions for [__________]* additional [ ]*.
[____________]* is assessed as described above. Additional measurements listed
in the [________________________________________]* can be performed as decided
by the PROJECT COMMITTEE.
[______________________]* LIMITATION:
[___________]* are [________________]* and [___________]* for [___________]*
on defined [___________]*. [______________________]* is assessed by measuring
the following [______________________]* and [______________________]*:
[______________________]* [___________]*
-----------------------------------------------------------------------------------------------
[______________________]* [____________________]*
-----------------------------------------------------------------------------------------------
[____________________________]* [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]* [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]* [___________]*
-----------------------------------------------------------------------------------------------
[______________________]* [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]* [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]* [___________]*
-----------------------------------------------------------------------------------------------
Additional measurements listed in the [_____________]* and
[_____________________]* can be performed as decided by the PROJECT COMMITTEE.
[___________________________________]*
[_____]* will be [__________]* on defined [___________]* containing specified
amounts of [______________________]* and [_____________________]* will be noted.
DATA FORMAT AND TRANSFER:
Data are collected and transferred to MONSANTO in the form of computer files.
Data are summarized and transferred on a monthly basis.
PARADIGM Genetics will supply a [______]* with [____________]* quality control
applied to the data but no [__________________]*. [__________]* identification
and study identification tags will be supplied with the data in a standard
agreed upon format that allows for the [___________________________________]*.
All data will be transmitted by standard protocols such as [__________]* using
an agreed upon security protocol and on a regular schedule.
During the [______________]* of the collaboration, the PROJECT TEAM will define
and mutually agree upon the following elements of the PARADIGM Genetics -
MONSANTO data exchange:
1) [________________________]*
2) [________________________]*
3) [_________________________________]*
4) [_____________________________]*
5) [_____________________]*
50
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix C
--------------------------------------------------------------------------------
Project Plan
Production Target
Levels
--------------------------------------------------------------------------------
Production
Target Levels per
Quarter
--------------------------------------------------------------------------------
Constructs Plant Trans Pheno Anal Full Anal
--------------------------------------------------------------------------------
Q1 [__]*
--------------------------------------------------------------------------------
Q2 [__]* [__]*
--------------------------------------------------------------------------------
Q3 [__]* [__]*
--------------------------------------------------------------------------------
Q4 [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q5 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q6 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q7 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q8 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q9 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q10 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q11 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q12 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q13 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q14 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
51
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Q15 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q16 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q17 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q18 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q19 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q20 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q21 [__]* [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q22 [__]* [__]* [__]*
-----------------------------------------------------------------------------
Q23 [__]* [__]*
-----------------------------------------------------------------------------
Q24 [__]* [__]*
-----------------------------------------------------------------------------
Total [____]* [____]* [____]* [____]*
-----------------------------------------------------------------------------
BOLD NUMBERS =
PRODUCTION
TARGET LEVELS
-----------------------------------------------------------------------------
52
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix D: Appendix D
--------------------------------------------------------------------------------
Quarterly Production Target Level
--------------------------------------------------------------------------------
Payments Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Q1 [__________]* [__________]*
--------------------------------------------------------------------------------
Q2 [__________]* [__________]*
--------------------------------------------------------------------------------
Q3 [__________]* [__________]*
--------------------------------------------------------------------------------
Q4 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5 [__________]* [__________]*
--------------------------------------------------------------------------------
Q6 [__________]* [__________]*
--------------------------------------------------------------------------------
Q7 [__________]* [__________]*
--------------------------------------------------------------------------------
Q8 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9 [__________]* [__________]*
--------------------------------------------------------------------------------
Q10 [__________]* [__________]*
--------------------------------------------------------------------------------
Q11 [__________]* [__________]*
--------------------------------------------------------------------------------
Q12 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
Q13 [__________]* [__________]*
--------------------------------------------------------------------------------
Q14 [__________]* [__________]*
--------------------------------------------------------------------------------
Q15 [__________]* [__________]*
--------------------------------------------------------------------------------
Q16 [__________]* [__________]*
--------------------------------------------------------------------------------
53
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Year 5
--------------------------------------------------------------------------------
Q17 [__________]* [__________]*
--------------------------------------------------------------------------------
Q18 [__________]* [__________]*
--------------------------------------------------------------------------------
Q19 [__________]* [__________]*
--------------------------------------------------------------------------------
Q20 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 6
--------------------------------------------------------------------------------
Q21 [__________]* [__________]*
--------------------------------------------------------------------------------
Q22 [__________]* [__________]*
--------------------------------------------------------------------------------
Q23 [__________]* [__________]*
--------------------------------------------------------------------------------
Q24 [__________]* [__________]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL $31,500,000.00 $13,500,000.00
--------------------------------------------------------------------------------
54
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix E
--------------------------------------------------------------------------------
Rice Option
Production Target
Levels
--------------------------------------------------------------------------------
Production
Target Levels per
Quarter
--------------------------------------------------------------------------------
Clone/Seq Plant Trans Pheno Anal Full Anal
--------------------------------------------------------------------------------
Q1 [__]*
--------------------------------------------------------------------------------
Q2 [__]*
--------------------------------------------------------------------------------
Q3 [__]*
--------------------------------------------------------------------------------
Q4 [__]* [__]*
--------------------------------------------------------------------------------
Q5 [__]* [__]*
--------------------------------------------------------------------------------
Q6 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q7 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q8 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q9 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q10 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q11 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q12 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q13 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q14 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q11 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
55
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Q16 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q17 [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q18 [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q19 [__]* [__]*
--------------------------------------------------------------------------------
Q20 [__]* [__]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total [____]* [____]* [____]* [____]*
--------------------------------------------------------------------------------
BOLD NUMBERS =
PRODUCTION
TARGET LEVELS
--------------------------------------------------------------------------------
QUARTERS = RICE OPTION
QUARTERS (NOT
PROJECT
QUARTERS)
--------------------------------------------------------------------------------
56
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix F
RICE OPTION
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Quarterly Production Target Level
--------------------------------------------------------------------------------
Payments Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Up front access fees [__________]*
--------------------------------------------------------------------------------
Q1 [__________]* [__________]*
--------------------------------------------------------------------------------
Q2 [__________]* [__________]*
--------------------------------------------------------------------------------
Q3 [__________]* [__________]*
--------------------------------------------------------------------------------
Q4 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5 [__________]* [__________]*
--------------------------------------------------------------------------------
Q6 [__________]* [__________]*
--------------------------------------------------------------------------------
Q7 [__________]* [__________]*
--------------------------------------------------------------------------------
Q8 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9 [__________]* [__________]*
--------------------------------------------------------------------------------
Q10 [__________]* [__________]*
--------------------------------------------------------------------------------
Q11 [__________]* [__________]*
--------------------------------------------------------------------------------
Q12 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
Q13 [__________]* [__________]*
--------------------------------------------------------------------------------
57
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Q14 [__________]* [__________]*
--------------------------------------------------------------------------------
Q15 [__________]* [__________]*
--------------------------------------------------------------------------------
Q16 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 5
--------------------------------------------------------------------------------
Q17 [__________]* [__________]*
--------------------------------------------------------------------------------
Q18 [__________]* [__________]*
--------------------------------------------------------------------------------
Q19 [__________]* [__________]*
--------------------------------------------------------------------------------
Q20 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 6
--------------------------------------------------------------------------------
Q21 [__________]* [__________]*
--------------------------------------------------------------------------------
Q22 [__________]* [__________]*
--------------------------------------------------------------------------------
Q23 [__________]* [__________]*
--------------------------------------------------------------------------------
Q24 [__________]* [__________]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL $13,880,000.00 $5,120,000.00
--------------------------------------------------------------------------------
58
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix G
--------------------------------------------------------------------------------
Increase in
Arabidopsis Option
Production Target
Levels
--------------------------------------------------------------------------------
Production
Target Levels per
Qtr
--------------------------------------------------------------------------------
Clone/Seq Plant Trans Pheno Anal Full Anal
--------------------------------------------------------------------------------
Q1 [__]*
--------------------------------------------------------------------------------
Q2 [__]* [__]*
--------------------------------------------------------------------------------
Q3 [__]* [__]*
--------------------------------------------------------------------------------
Q4 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q5 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q6 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q7 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q8 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q9 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q10 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q11 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q12 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q13 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q14 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
59
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Q15 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q16 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q17 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q18 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q19 [__]* [__]*
--------------------------------------------------------------------------------
Q20 [__]* [__]*
--------------------------------------------------------------------------------
Total [_____]* [_____]* [_____]* [_____]*
--------------------------------------------------------------------------------
BOLD
NUMBERS =
PRODUCTION
TARGET
LEVELS
--------------------------------------------------------------------------------
QUARTERS =
OPTION
QUARTERS
(NOT PROJECT
QUARTERS)
--------------------------------------------------------------------------------
60
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix H
--------------------------------------------------------------------------------
Increase in Arabidopsis
Option
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Quarterly Production Target Level
--------------------------------------------------------------------------------
Payments Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Up-front access fees [__________]*
--------------------------------------------------------------------------------
Q1 [__________]* [__________]*
--------------------------------------------------------------------------------
Q2 [__________]* [__________]*
--------------------------------------------------------------------------------
Q3 [__________]* [__________]*
--------------------------------------------------------------------------------
Q4 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5 [__________]* [__________]*
--------------------------------------------------------------------------------
Q6 [__________]* [__________]*
--------------------------------------------------------------------------------
Q7 [__________]* [__________]*
--------------------------------------------------------------------------------
Q8 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9 [__________]* [__________]*
--------------------------------------------------------------------------------
Q10 [__________]* [__________]*
--------------------------------------------------------------------------------
Q11 [__________]* [__________]*
--------------------------------------------------------------------------------
Q12 [__________]* [__________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
61
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Q13 [__________]* [__________]*
--------------------------------------------------------------------------------
Q14 [__________]* [__________]*
--------------------------------------------------------------------------------
Q15 [__________]* [__________]*
--------------------------------------------------------------------------------
Q16 [__________]* [__________]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL $46,760,000.00 $21,240,000.00
--------------------------------------------------------------------------------
62
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix I
--------------------------------------------------------------------------------
Increase in
Arabidopsis with 8
Year Term
--------------------------------------------------------------------------------
Production Target
Levels per Qtr
--------------------------------------------------------------------------------
Clone/Seq Plant Trans Pheno Anal Full Anal
--------------------------------------------------------------------------------
Q1 [__]*
--------------------------------------------------------------------------------
Q2 [__]* [__]*
--------------------------------------------------------------------------------
Q3 [__]* [__]*
--------------------------------------------------------------------------------
Q4 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q5 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q6 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q7 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q8 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q9 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q10 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
all [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q12 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q13 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q14 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q15 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q16 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
63
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Q17 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q18 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q19 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q20 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q21 [__]* [__]* [__]* [__]*
--------------------------------------------------------------------------------
Q22 [__]* [__]*
--------------------------------------------------------------------------------
Q23 [__]* [__]*
--------------------------------------------------------------------------------
Q24 [__]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total [_____]* [_____]* [_____]* [_____]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BOLD NUMBERS =
PRODUCTION
TARGET
LEVELS
--------------------------------------------------------------------------------
QUARTERS =
OPTION
QUARTERS (NOT
PROJECT
QUARTERS)
--------------------------------------------------------------------------------
64
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Appendix J
--------------------------------------------------------------------------------
Increase in Arabidopsis
with 8 Year Term Option
--------------------------------------------------------------------------------
Quarterly Production Target Level
--------------------------------------------------------------------------------
Payments Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Up-front access fees [____________]*
--------------------------------------------------------------------------------
Q1 [____________]* [____________]*
--------------------------------------------------------------------------------
Q2 [____________]* [____________]*
--------------------------------------------------------------------------------
Q3 [____________]* [____________]*
--------------------------------------------------------------------------------
Q4 [____________]* [____________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5 [____________]* [____________]*
--------------------------------------------------------------------------------
Q6 [____________]* [____________]*
--------------------------------------------------------------------------------
Q7 [____________]* [____________]*
--------------------------------------------------------------------------------
Q8 [____________]* [____________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9 [____________]* [____________]*
--------------------------------------------------------------------------------
Q10 [____________]* [____________]*
--------------------------------------------------------------------------------
Q11 [____________]* [____________]*
--------------------------------------------------------------------------------
Q12 [____________]* [____________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
Q13 [____________]* [____________]*
--------------------------------------------------------------------------------
65
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
--------------------------------------------------------------------------------
Q14 [____________]* [____________]*
--------------------------------------------------------------------------------
Q15 [____________]* [____________]*
--------------------------------------------------------------------------------
Q16 [____________]* [____________]*
--------------------------------------------------------------------------------
Year 5
--------------------------------------------------------------------------------
Q17 [____________]* [____________]*
--------------------------------------------------------------------------------
Q18 [____________]* [____________]*
--------------------------------------------------------------------------------
Q19 [____________]* [____________]*
--------------------------------------------------------------------------------
Q20 [____________]* [____________]*
--------------------------------------------------------------------------------
Year 6 [____________]*
--------------------------------------------------------------------------------
Q21 [____________]*
--------------------------------------------------------------------------------
Q22 [____________]* [____________]*
--------------------------------------------------------------------------------
Q23 [____________]* [____________]*
--------------------------------------------------------------------------------
Q24 [____________]* [____________]*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL $51,040,000.00 $23,960,000.00
--------------------------------------------------------------------------------
66
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
Appendix K
Monsanto Enabling Technologies
Monsanto Enabling Technologies
[_____________________________]*
[_____________________________]*
[_____________________________]*
[_____________________________]*
[_____________________________]*
67
--------
* Confidential treatment requested as to certain portions, which portions are
omitted and filed separately with the Commission.
