TRANSKARYOTIC THERAPIES INC
EX-10.39
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<TYPE>EX-10.39
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<FILENAME>j9805_ex10d39.htm
<DESCRIPTION>EX-10.39
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<p align="right" style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Exhibit 10.39</font></b></p>

<p align="center" style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Confidential
Materials omitted and filed separately with the <br>
Securities and Exchange Commission.&#160;
Asterisks denote omissions.</font></b></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">LICENSE
AGREEMENT</font></b> made the 28 day of February, 2003</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">BETWEEN</font></b>:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">WOMEN&#146;S
AND CHILDREN&#146;S HOSPITAL</font></b>, a non-profit institution incorporated in South
Australia and of 72 King William Road, North Adelaide, South Australia (&#147;<b><font style="font-weight:bold;">Licensor</font></b>&#148;);</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">AND</font></b>:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">TRANSKARYOTIC
THERAPIES, INC.</font></b> 700 Main Street, Cambridge, Massachusetts (&#147;<b><font style="font-weight:bold;">Licensee</font></b>&#148;).</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">WHEREAS</font></b>:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">A.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensor has power to
grant rights in respect of certain technology.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">B.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The parties desire that
Licensor shall grant to Licensee a License to make, use, distribute and sell
the technology upon the terms hereinafter appearing.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">WHEREBY IT IS AGREED</font></b> as follows:</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RECITALS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The matters referred to in the recitals are true and correct in every
material particular and shall form part of this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; INTERPRETATION</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In this Agreement:</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;">2.1.&#160;&#160;&#160;&#160;&#160;&#160; &#147;<b><font style="font-weight:bold;">Affiliate</font></b>&#148; means:</p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2.1.1&#160;&#160;&#160;&#160; A company that is the
parent company of Licensee;</font></p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2.1.2&#160;&#160;&#160;&#160; A company that is a
subsidiary of the parent company of Licensee;</font></p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2.1.3&#160;&#160;&#160;&#160; A company that is a
subsidiary of Licensee;</font></p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2.1.4&#160;&#160;&#160;&#160; A director of Licensee;</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">2.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Commencement Date</font></b>&#148; means February 28, 2003.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">2.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Field</font></b>&#148; is the treatment of certain
mucopolysaccharidosis (&#147;<b><font style="font-weight:bold;">MPS</font></b>&#148;) namely MPS I, II, IIIA and IIIB by
means of gene therapy and/or protein replacement therapy, [**].</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">2.4.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Know How</font></b>&#148; means all
specifications, and quality control procedures and other technical or commercial
knowledge or information whether patentable or not of the Unit in relation to
the Field in existence on the date of this Agreement or which come into
existence as a result of the funded research under the Research Agreement
during the continuance of this Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">2.5.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">License</font></b>&#148; means the
authorities in this Agreement granted to Licensee under Clauses 3 through 5
inclusive of this Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.6.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Licensor</font></b>&#148; means Women&#146;s and
Children&#146;s Hospital and includes its successors and permitted assigns.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.7.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Licensee</font></b>&#148; means Transkaryotic
Therapies, Inc. and includes its successors and permitted assigns.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.8.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Net Sales Value</font></b>&#148; shall mean
the invoiced amount billed on sales of Products in final packaging form made by
Licensee, its Affiliates, or its sublicensees to an unrelated third party, less
the following:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 73.95pt;text-align:justify;text-indent:-36.85pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>amounts
refunded or credited for Products which were rejected, damaged, or returned;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 73.95pt;text-align:justify;text-indent:-36.85pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>import, export, excise,
and sales taxes; and</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 73.95pt;text-align:justify;text-indent:-36.85pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>credits, rebates and quantity
or cash discounts.</p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The transfer of Products by Licensee or any
of its Affiliates to another Affiliate of Licensee or a sublicensee should not
be considered a sale; in such cases Net Sales shall be determined based on the
invoiced sales price by the Affiliate or sublicensee to the customer less the
above deductions.</font></p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">If any Product is sold as a combination of
functional elements, the Net Sales Value shall be calculated by multiplying the
net sales price of the combination product by the fraction A over A+B, in which
&#147;A&#148; is the standard fully absorbed cost of the product portion of the
combination, and &#147;B&#148; is the standard fully-absorbed cost of the other
functional elements of the combination, with such costs being determined in
accordance with generally accepted accounting practices. An example of a
combination product is a medical device consisting of genetically modified
cells held immobile by a permeable matrix composed of polymeric molecules,
where the matrix is the product portion and the cells are the other functional
element of the combination product.</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.9.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Past Funded IP</font></b>&#148; means all
intellectual property rights developed as a result of the conduct of all
research by the Unit prior to the Commencement Date pursuant to the 1996
Research Agreement [**].</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.10.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Past Non-Funded IP</font></b>&#148; means all
intellectual property rights developed as a result of any research conducted by
the Unit prior to the Commencement Date, other than pursuant to the 1996
Research Agreement, [**].</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.11.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Patents</font></b>&#148; means any and all
patents and patent applications in the Field in Australia and throughout the
world which Licensor presently owns or controls or under which Licensor has the
right to grant sub-licenses or that hereafter result from the funded research
under the Research Agreement (or in respect of which the Research Agreement
otherwise obliges Licensor to grant a license to Licensee), including patents
comprised in the Past Funded IP and the Past Non-Funded IP.&#160; Patents as of the date of this Agreement are
listed in <u>Exhibit A</u> attached hereto. The expression &#147;patents and patent
applications&#148; shall, without limitation, extend to and include petty patents,
inventors&#146; certificates, utility patents, patents of importation, patents of
confirmation, patents of improvements, patents of addition, utility models and
substitutions, extensions, re-issues, renewals, divisions, continuations or
continuations-in-part thereof or therefor.&#160;
References to &#147;patents&#148; and to &#147;patent applications&#148; shall extend to
include, mutatis mutandis, any other intellectual property rights which may be
of relevance including any registered designs, copyrights or trademarks.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.12.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Processes</font></b>&#148; means the processes, methods of
manufacture and procedures covered by Valid Claims of Patents or which utilize
Technical Information.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.13.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Products</font></b>&#148; means products whose manufacture,
use or sale is covered by Valid Claims of Patents or which utilize Technical
Information, Past Funded IP or Past Non-Funded IP.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.14.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Research</font></b>&#148; has the same
meaning specified for such term in the Research Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.15.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Research Agreement</font></b>&#148; means the
written Research Agreement between the parties entered into on or about the
date of this agreement relating to mucopolysaccharidosis research.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.16.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Settlement Agreement</font></b>&#148; means
the written Settlement Agreement between the parties entered into on or about
the date of this agreement relating to the 1996 Research Agreement and the 1996
License Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.17.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Technical Information</font></b>&#148; means
processes, methods of manufacture and procedures of Licensor relating to the
Field and in respect of which Licensor is obliged, pursuant to the Research
Agreement, to grant Licensee a license.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.18.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Term</font></b>&#148; means the period from
the date of this Agreement to the day of expiry of the last surviving Patent,
subject to early termination as provided in this Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.19.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Territory</font></b>&#148; means [**].</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.20.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Therapy</font></b>&#148; excludes testing,
screening and diagnosis.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.21.&#160;&#160;&#160;&#160; [**].</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.22.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">Valid Claim</font></b>&#148; means a claim of
an issued Patent which has not been declared invalid or unenforceable by a
court of competent jurisdiction or an administrative agency from which no
appeal can be or is taken.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.23.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">1996 Research Agreement</font></b>&#148;
means the written Research Agreement between the parties dated 1 July 1996
relating to mucopolysaccharidosis research.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">2.24.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b><font style="font-weight:bold;">1996 Licence Agreement</font></b>&#148; means
the written Licence Agreement between the parties dated 1 July 1996, as amended
on 1 July 1998.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LICENSE
GRANT</h1>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">3.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In relation to Patents,
Technical Information, Processes and Products arising from the Research, in
consideration of the timely performance of all warranties and agreements in
this Agreement given or made by Licensee, Licensor hereby grants to Licensee
and Licensee hereby accepts an exclusive, worldwide license to such Patents and
Technical Information, with the right to grant sublicenses, to make and have
made, to use and have used, to sell and have sold such Products, and to
practise and otherwise use such Processes for the duration of the Term subject
to and upon the terms in this Agreement.</p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="font-size:11.0pt;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In relation to patents, technical
information, processes and products [**] within the Field during the term of
the Research Agreement, which would be Patents, Technical Information,
Processes and Products if they arose from the Research, in consideration of the
timely performance of all warranties and agreements in this Agreement given or
made by Licensee, Licensor hereby grants to Licensee and Licensee hereby
accepts an exclusive, worldwide license within the Field to such patents and
technical information, with the right to grant sublicenses, to make and have
made, to use and have used, to sell and have sold such products, and to
practise and otherwise use such processes for the duration of the Term subject
to and upon the terms in this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In the event that any third party shall
propose to:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="font-size:11.0pt;margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(i)<font size="1" face="Times New Roman" style="font:7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></font>sponsor research at Licensor in the Field; or</p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="font-size:11.0pt;margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(ii)<font size="1" face="Times New Roman" style="font:7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></font>enter into an academic research collaboration with Licensor</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">during the term of the Research Agreement,
then Licensor shall promptly give notice of such proposal to Licensee.&#160; Licensee shall review the proposed research,
cognizant of the mutual goal of Licensor and Licensee to advance research in
the Field and commercialize Products.&#160;
Licensee shall notify Licensor within thirty (30) days whether it is
willing to enter into negotiations with such third party regarding the
disposition of any patents, technical information, processes and products
arising from such third party-funded research or academic research
collaboration.&#160; In the event that
Licensee agrees to enter into negotiations with such third party, Licensee
shall negotiate in good faith, but nothing contained herein shall require
Licensee to come to agreement with such third party.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;layout-grid-mode:both;">Alternatively,
Licensor may enter into an academic research collaboration during the term of
the Research Agreement with any third party (such as a university or other
non-profit research institution) provided that it:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="font-size:11.0pt;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(a)<font size="1" face="Times New Roman" style="font:7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></font>notifies Licensee of the identity of the third party and obtains
Licensee&#146;s consent to enter into the collaboration with that third party (such
consent not to be unreasonably withheld, and provided that a failure by
Licensee to respond to the request for consent within 30 days of the date of
the request shall constitute consent); </p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">and</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; obtains a written undertaking from the third party that
Licensee will obtain an exclusive, worldwide license within the Field to any
patents, technical information, processes and products arising from such
collaboration during the term of the Research Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In relation to Patents,
Technical Information, Processes and Products comprising or arising from the
Past Funded IP, Licensor hereby grants to Licensee and Licensee hereby accepts
an exclusive, worldwide license to such Patents and Technical Information, with
the right to grant sublicenses, to make and have made, to use and have used, to
sell and have sold such Products, and to practise and otherwise use such
Processes for the duration of the Term subject to and upon the terms in this
Agreement.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In relation to Patents,
Technical Information, Processes and Products comprising or arising from the
Past Non-Funded IP, Licensor hereby grants to Licensee and Licensee hereby
accepts an exclusive, worldwide license within the Field to such Patents and
Technical Information, with the right to grant sublicenses, to make and have
made, to use and have used, to sell and have sold such Products, and to
practise and otherwise use such Processes for the duration of the Term subject
to and upon the terms in this Agreement.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; NATURE OF
LICENSE</h1>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">4.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The rights granted to
Licensee are an exclusive right within the Territory (and, in the case of the
rights granted to Licensee pursuant to clauses 3.2 and 3.4, within the Field
only) to manufacture, use, sell and supply or procure the manufacture, use,
sale and supply under sub-License of Products.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">4.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The rights hereby granted
shall commence on the date of this Agreement and shall terminate on the
expiration of the Term, subject to early termination as herein provided.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">4.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject to the Licensor&#146;s
rights to use the Patents and Technical Information for research purposes,
Licensor shall not itself exercise or grant the same or equivalent rights to
any other third party, except in the case of the License being converted to
non-exclusive status pursuant to Clause 6.4, without the consent in writing of
Licensee first had and obtained, which consent Licensee may in its absolute
discretion refuse.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PATENTS,
TRADEMARKS AND KNOW HOW</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">For the purposes of the License, Licensor
hereby grants to Licensee:</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">5.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>An exclusive right (in
the case of the rights granted to Licensee pursuant to clauses 3.2 and 3.4,
within the Field only) to use the intellectual or industrial property the
subject of the Patents and Technical Information.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">5.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exclusive access (in the
case of the rights granted to Licensee pursuant to clauses 3.2 and 3.4, within
the Field only) to instruction manuals and drawings and specifications or other
written or machine-readable technical material clearly explaining the subject
of the Patents and Technical Information.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">5.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Non-exclusive access (in
the case of the rights granted to Licensee pursuant to clauses 3.2 and 3.4,
within the Field only) to all other Know How of Licensor in relation to the
subject of the Patents and Technical Information.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; DUE
DILIGENCE OBLIGATIONS</h1>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="font-size:11.0pt;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">6.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee and Licensor acknowledge and
agree that they both intend to bring high quality, safe and effective products
to patients suffering from MPS disorders.&#160;
The Parties acknowledge and agree that the Parties shall communicate
regularly in order to identify ways of achieving the mutual goal of bringing
these products to market as promptly as possible.&#160; Licensee agrees that when high quality, safe and effective
products are ready for commercialization in Licensee&#146;s reasonable discretion,
Licensee shall use its reasonable commercial efforts, consistent with sound
business practices, to commercialize, market and promote (by itself or by
sub-licensees) Products covered by this Agreement within major markets within
the Territory [**].&#160; In the event that
Licensee determines that it cannot or will not commercialize a Product within
all or part of the Territory, it shall promptly notify Licensor at which point
Licensee shall [**].&#160; Licensee shall
keep Licensor properly informed as to its development and commercialisation
activities and give to Licensor such information as Licensor may reasonably
request in relation to such activities.&#160;
If Licensee is found (pursuant to clause 22 or by a Court) to have
breached its obligations under this clause 6, Licensor's sole remedy shall be
to notify Licensee of its intention to convert the license under clause 3 to a
non-exclusive license, to the extent it relates to the MPS disorder in respect
of which the breach was committed, unless within ninety (90) days of
notification by Licensor, Licensee remedies its failure.&#160; If Licensor elects to convert the license
into non-exclusive status, then the royalty rate set forth in clause 14 on
Products for the applicable MPS disorder shall be reduced by [**] percent.&#160; The Parties agree that nothing in this
clause 6 obliges Licensee to do anything that, at that time, it reasonably
believes to be unethical.</p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="font-size:11.0pt;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">6.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As a sign of its good faith
intentions in relation to the development of Products capable of
commercialisation (&#147;Development Process&#148;),
Licensee agrees that if research proposals submitted to the Licensee by the
Licensor from time to time or the results of the Research indicate that further
research would be beneficial to the Development Process, then Licensee will
give due consideration to providing Licensor with additional funding for the
purpose of undertaking that research.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RECORDS</h1>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">7.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee shall keep
complete records of all production and sales of Products and all orders and
inquiries for orders received.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">7.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>After Licensee makes its
first commercial sale of a Product, Licensee shall within one month of the
expiration of each March, June, September and December prepare and supply to
Licensor a report of the conduct of the License during the preceding quarter.
Such report shall include:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.3pt;text-align:justify;text-indent:-35.45pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">7.2.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>quantities of Products
manufactured distinguishing between different types of Products;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.3pt;text-align:justify;text-indent:-35.45pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">7.2.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>quantities and sales
values of Products sold distinguishing between different types of Products;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.3pt;text-align:justify;text-indent:-35.45pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">7.2.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>sub-licenses granted;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.3pt;text-align:justify;text-indent:-35.45pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">7.2.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>gross proceeds of the
License (broken down into Net Sales Values of Products sold and royalties and
license fees paid by sub-licensees); and</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.3pt;text-align:justify;text-indent:-35.45pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">7.2.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>royalties payable by
Licensee in respect of such period.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PRODUCT
WARRANTIES</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Licensee shall ensure that all Products
supplied in carrying on the License by Licensee are constructed of suitable
materials and are suitable for the purposes for which the Products are
intended.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; COMPLIANCE
WITH LAWS AND TECHNICAL STANDARDS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At its own expense Licensee shall promptly
identify and ensure compliance with all applicable laws and industry standards
and shall forthwith obtain all necessary governmental or industry standards and
approvals relevant to the production and supply of Products in the Territory.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">10.&#160;&#160;&#160;&#160;&#160;&#160; INSPECTION
AND ACCESS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The Licensee shall permit the Licensor to
examine the Licensee&#146;s books and records periodically during regular business
hours upon reasonable notice for the purpose only and to the extent necessary
to verify any sales provided pursuant to this Agreement. Any such examination
will be made at the expense of the Licensor by an independent registered or
company auditor who is reasonably acceptable to the Licensee and who shall
report to the Licensor only the amount of royalties due and payable hereunder.
The Licensor agrees that any report (and any payment made pursuant thereto)
submitted more than one year preceding the date of any such examination shall
be conclusively presumed to be correct. In the event that the auditor
determines that an inaccuracy in the sales report resulted in more than a five
percent (5 %) deficiency in royalty payments to Licensor, Licensee shall pay
(i) the costs of the audit and (ii) such deficiency in royalties within thirty
(30) days from the date Licensee receives the audit report.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">11.&#160;&#160;&#160;&#160;&#160;&#160; REPORTS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The parties shall promptly exchange all
technical reports respectively produced or procured by either of them in
respect of the development of therapeutic products for MPS I, II, IIIA and
IIIB. Licensee shall present a detailed, written progress report covering the
development of therapeutic products for MPS I, II, IIIA and IIIB to Professor John
Hopwood on the occasion of his annual visit to Licensee. Should any
inaccuracies, inconsistencies, omissions, errors or faults be found in the
specifications or use of the Processes, the party aware of same shall as soon
as practicable notify the other party of same.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">12.&#160;&#160;&#160;&#160;&#160;&#160; COOPERATION</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Each party shall give such reasonable
assistance, cooperation and information to the other as shall be required to
assist that party to carry out its obligations under this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">13.&#160;&#160;&#160;&#160;&#160;&#160; INTELLECTUAL
AND INDUSTRIAL PROPERTY</h1>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensor to the best of its
knowledge warrants that it has the right to enter into this Agreement and no
provision of this Agreement will violate, conflict or infringe upon any rights
whatsoever of any person, firm or corporation.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither party shall during the
continuance of this Agreement or thereafter use, divulge or communicate to any
person whomsoever any confidential information concerning the other party or
the practices, dealings, transactions or affairs of the other party which may
have been acquired by the party pursuant to the performance of this Agreement,
save as required by law.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee shall imprint or cause to
be imprinted on all relevant written materials supplied hereunder and all
copies thereof a copyright notice to the effect that the said materials are
subject to copyright and are confidential and are not to be disclosed to others
or publicly disseminated.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.4.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee shall imprint or cause to
be imprinted on all Products the subject of a patent manufactured or supplied
under this Agreement a patent notice to the effect that the same are subject to
patent rights.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.5.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee shall not do or commit any
act or omission whereby patent or other rights of Licensor in respect of the
subject matter of the Patents and Technical Information may become prejudiced,
void or voidable.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.6.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Under the Research Agreement,
Licensor has agreed to license any patents or patent applications invented, discovered
or created in the course of the Research to Licensee, subject to the terms and
conditions of this License Agreement.&#160;
In such event, the parties will amend <u>Exhibit A</u> and any such
additional patents or patent applications will be treated as Patents hereunder.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.7.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each party may defend any action
brought against it alleging that the Patents, the Technical Information or the
License infringes patent or other rights belonging to a third party.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.8.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee shall, at its reasonable
discretion, notify Licensor of any infringement of the Patents and Technical
Information in the Territory by third parties (&#147;<b><font style="font-weight:bold;">Infringement</font></b>&#148;).&#160; Licensor has the obligation to diligently
prosecute any Infringement.&#160; If Licensor
fails to meet such obligation, Licensee shall have the right, but not the
obligation, upon five (5) days written notice, to take control of the
prosecution of an Infringement and bear the costs of such proceedings.&#160; The Party that meets the obligation of
prosecuting any Infringement (i) shall be entitled to all damages and costs (if
any) awarded against third parties in favor of Licensee or Licensor, and (ii)
shall have the control and conduct of all negotiations for settlement or
compromise of such proceedings.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">13.9.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In relation to the filing,
prosecution and maintenance of Patents:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 1.0in;text-align:justify;text-indent:-1.0in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Licensee shall be responsible for the
preparation, filing, prosecution and maintenance of all patent applications and
Patents in Australia, the United States, and in those other countries selected
by Licensee.&#160; Prosecution shall be
conducted by attorneys selected and supervised by Licensee, to which Licensor
has no reasonable objection.&#160; Licensee
will keep Licensor apprised as to the status of each of the patent applications
and Patents.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.85pt;text-align:justify;text-indent:-36.85pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee shall be
responsible for all costs associated with the prosecution and maintenance of
the licensed Patents.&#160; These costs shall
be billed directly to Licensee by associated attorneys.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 72.85pt;text-align:justify;text-indent:-36.85pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>each party shall give
such reasonable assistance, cooperation and information to the other as shall
be required to assist that party to carry out its obligations under this
Agreement.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">14.&#160;&#160;&#160;&#160;&#160;&#160; PAYMENTS</h1>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">14.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee in consideration
of the use of the Patents and Technical Information shall pay to Licensor:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 73.15pt;text-align:justify;text-indent:-37.15pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">14.1.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>royalties in an amount
equal to [**] percent ([**]%) of the Net Sales Value of Products sold or
consumed by Licensee and its sub-licensees in countries within the Territory
where such sale or consumption is covered by a Valid Claim of any Patent;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 73.15pt;text-align:justify;text-indent:-37.15pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">14.1.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>for a period commencing
on the date of the first commercial sale of a Product, and ending upon
expiration or termination of this Agreement, royalties in an amount equal to
[**] percent ([**]%) of the Net Sales Value of Products sold or consumed by
Licensee and its sub-licensees in countries within the Territory where such
sale or consumption is not covered by a Valid Claim but utilizes Technical
Information. In the event that a third party sells such a Product in a country
within the Territory where such sale or consumption is not covered by a Valid
Claim, then the royalty paid to Licensor will be an amount equal to [**]
percent ([**] %) of the Net Sales Value of Products sold or consumed by
Licensee and its sublicensees.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">14.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>It is acknowledged that
Products may be sold by the Licensee in combination with or incorporated into
some other product incorporated into some other functional element. (Product
when in combination with another functional element is herein called
&#147;combination products&#148;). If a combination product is sold for a single price,
any amount received by the Licensee from the sale thereof will be apportioned
to the constituent part or parts thereof which constitute Product and to the
constituent part or parts which constitute functional element. Only that part
of any amount received by the Licensee which is apportioned to Product will
represent Net Sales Value and attract royalty. The basis of any apportionment
will be as described in Clause 2.8.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">14.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Royalties shall be
calculated quarterly for each of the three (3) month periods ended March, June,
September and December and shall be payable within one (1) month of the end of
each three (3) month period and payment shall be accompanied by the Report
referred to in Clause 7.3</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">14.4.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If at any time during the
Term the Licensee discovers that any product or process manufactured, sold,
exercised or used by the Licensee or any of its sub-licensees or any method of
manufacture of same or use thereof being the same subject of the License
infringes claims of any unexpired patent, patent application or other
intellectual property right owned by a third party, then the Licensee may
negotiate with such third party for a License on such terms as the Licensee
considers appropriate. If the terms of settlement with any such third party
include a royalty bearing license, then the royalties otherwise payable under
this Agreement shall be reduced by the royalty or other payment paid to such
third party. The offset in royalty should not be more than fifty percent (50%)
of the total royalty payable by Licensee to Licensor.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">14.5.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All royalties and signing
fees shall when payable be converted into the currency of Australia on the
basis of the weighted average exchange rate applicable on the first and last
days of each quarter. All payments shall, subject to deduction of withholding
or other taxes Licensee is required by law to withhold, be paid in Australian
Dollars by telegraphic transfer in clear funds to Licensor&#146;s account at
Adelaide or to such other bank or place as Licensor may from time to time
nominate in writing.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">14.6.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If Licensee shall default
in the due and punctual payment of any amount payable herein to Licensor and
that default is continuing for a period of thirty (30) days then and without
limiting any other right or remedy, Licensee shall be liable to pay default
interest at the current London Inter Bank Offer Rate plus three per centum (3
%), adjusted monthly, on the outstanding amount until paid.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">15.&#160;&#160;&#160;&#160;&#160;&#160; INDEMNITY</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Licensee shall defend, indemnify and hold
harmless Licensor from and against any and all damages and liability, including
reasonable legal fees, costs and disbursements it may incur as a result of
product liability, trademark infringement, product recall or any other claims
not specifically excluded elsewhere in this Agreement or events arising from
manufacture, sale or distribution of the Products by Licensee or its
sub-licensees. Commencing on the date of first use of a Product in humans,
Licensee shall at all times maintain in full force and effect a general
liability policy of insurance with product hazard coverage regarding the sale
of the Products and the supply of Services by Licensee in a commercially
standard amount and Licensee shall, on an annual basis, and at the written
request of the Licensor furnish Licensor a certificate confirming such
coverage.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">16.&#160;&#160;&#160;&#160;&#160;&#160; LEGAL
RELATIONSHIP</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Nothing herein expressed or implied shall be
deemed to create any partnership or agency between the parties for the
production, marketing or exploitation of the Patents or Technical Information
or otherwise. Neither party shall hold any of its agents, contractors,
employees or servants to be the agent, contractor, employee or servant of the
other party. Neither party shall pledge the credit of the other party nor enter
into contracts on its behalf. Each party shall indemnify and hold harmless the
other party and any company related to the other party from any claims, demands
or liabilities with respect to damage to property or personal injury or death
of employees, contractors or agents of the indemnity or its own related
companies while in or about the premises, plant or site of operations of the
other party or any company related to the other party.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">17.&#160;&#160;&#160;&#160;&#160;&#160; THIRD
PARTIES</h1>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">17.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This Agreement extends to
and binds the parties and their respective successors and permitted assigns.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">17.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A party shall not assign
or charge the benefits and obligations on that party&#146;s part to be enjoyed or
observed herein to any person, firm or corporation without the prior consent in
writing of the other party (which consent shall not be unreasonably withheld)
and the undertaking in writing by the assignee to be bound by this Agreement so
far as applicable.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">17.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Licensee may appoint
sub-licensees subject to Licensor ensuring that such sublicensee is not trading
in a country for which Australia has trade or diplomatic sanctions in place. If
no such sanctions exist, Licensee is not required to obtain approval for
appointment of sublicensees. Licensee agrees to ensure that no potential
sub-licensee is in litigation with Licensor at the time of the granting of a
sublicense.&#160; Licensee agrees to provide
Licensor with contact details for each sublicensee within 2&nbsp;weeks of
entering into a sublicense agreement with that sublicensee, and will promptly
notify Licensor of any change in such contact details.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">18.&#160;&#160;&#160;&#160;&#160;&#160; NO WAIVER</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">No failure or delay on the part of a party to
exercise any right or remedy hereunder shall operate as a waiver thereof nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">19.&#160;&#160;&#160;&#160;&#160;&#160; FORCE MAJEURE</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The parties shall not be liable for any
failure to perform or observe any term of this Agreement if performance or
observance has been delayed, hindered, restricted or prevented by any
circumstance not within the direct control of the parties including, without
limiting the generality of the foregoing, Acts of God, strikes, lock-outs or
other industrial disturbances, war hostilities or the threat or apprehension
thereof or any interruption to the supply of materials or information or any
accident or breakdown of machinery or the making of emergency or essential
repairs thereto or compliance with any valid order of any governmental or
public authority and the time or times for performances of the obligations on
the respective parties&#146; parts to be performed herein shall be extended by a
period equal to each such period of delay provided that such party shall
forthwith give notice to the other party in accordance with the provisions of
this Agreement and shall endeavor to remove or remedy the cause thereof with
all due diligence and expedition.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">20.&#160;&#160;&#160;&#160;&#160;&#160; TERMINATION</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The License shall immediately terminate upon
the occurrence of any of the following events:</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">20.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon the expiration of
the Term; or</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">20.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If a party fails to
perform or observe any of the obligations and undertakings on its part to be
performed herein and that party fails to remedy such breach within sixty (60)
days of notice from the other party requiring the alleged breach to be
remedied, such notice giving adequate particulars of the alleged breach and of
the intention of the party giving notice to terminate the License forthwith
upon expiration of the required remedy period; or</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">20.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If a party enters into
liquidation (other than for the purposes of reconstruction) or if an order is
made or a resolution is passed for the winding up of a party or placing a party
under official management or if a receiver or receiver and manager of the
undertaking or property of a party or any part thereof shall be appointed; or</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">20.4.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the Licensee shall
have provided to the Licensor six months prior written notice of its intention
to terminate the License with respect to any one or more (including all)
countries or Products, such termination to be effective on and from the date of
termination specified in that notice.&#160;
Such termination shall relieve the Licensee from any obligations to pay
royalties accruing from sales of Products the subject of such termination after
such termination or accruing from sales of Products in the country or countries
the subject of the termination after such termination (as the case may be) but
shall not relieve the Licensee of any obligations to pay royalties due or
accrued with respect to sales prior to the date of termination.&#160; Termination of this Agreement with respect
to any one or more (including all) countries or Products shall not affect any
other rights or obligations of a party which may have accrued prior to
termination with respect to such country or countries or Product or Products.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">20.5.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Governmental diplomatic
developments or actions by any country or state adversely influencing the
substantial performance or observance of any of the material terms of this
Agreement, without compensation to either party provided that any termination
of the License pursuant to this Clause shall be without prejudice to the rights
of either party against the other party which may have accrued up to and
including the date of such termination.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">20.6.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon the happening of any
other event specified in this Agreement as terminating the Agreement.
Termination of this Agreement shall not affect any rights or obligations of a
Party which may have accrued prior to termination, including the payment of
royalties due or accrued with respect to sales made prior to or after the date
of termination.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-37.1pt;">20.7.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any sublicenses granted
by Licensee during the term of this Agreement shall survive termination, and
Licensor will be entitled to receive any consideration, including royalties, due
to Licensee thereunder, and shall have the right to terminate any such
sublicenses upon sixty (60) days notice of a material breach of the sublicense
which is not cured prior to expiration of such period, and further provided
that Licensor will not assume, and will not be liable for, any representations,
warranties or obligations of Licensee to any sublicensees.</p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">21.&#160;&#160;&#160;&#160;&#160;&#160; SALE AND
RETURN ON TERMINATION</h1>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Licensee shall immediately upon termination
of the License:</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">21.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Complete any orders for
the sale of products that the Licensee has contracted to supply;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">21.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Offer for sale to
Licensor at its value all and several of the Products that Licensee is not
otherwise contracted to supply; and</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">21.3.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Return to Licensor the
specifications of the subject matter of the Patents or Technical Information in
eye or machine-readable form and all copies thereof;</p>

<p style="line-height:28.3pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"> in the
possession or control of Licensee.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">22.&#160;&#160;&#160;&#160;&#160;&#160; ARBITRATION</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">If during the term of this Agreement or at
any time thereafter any claim or dispute shall arise between the parties as to
their respective rights or obligations under this Agreement, such matter shall
be referred for final determination to an arbitrator in London, United Kingdom,
to be appointed pursuant to the Rules of the London Court of International
Arbitration. The arbitrator shall receive written and verbal submissions from
the parties within the time appointed by the arbitrator and the arbitrator
shall give reasonable consideration to such submissions before making a
determination. The arbitrator shall determine the matter in dispute for reasons
given in writing and shall dispatch a copy thereof to each party. Any
determination made by the arbitrator pursuant to this Clause shall be final and
binding on the parties and may be entered in and enforced by any court of
competent jurisdiction. The costs and expenses of the arbitrator shall be borne
equally between the parties. If this Clause shall be adjudicated as invalid,
void or unenforceable by any Court of competent authority, then this Clause
shall be severed and deleted from this Agreement without prejudicing or
affecting the validity and enforceability of the remainder of this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">23.&#160;&#160;&#160;&#160;&#160;&#160; CONFIDENTIAL
INFORMATION</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In order to facilitate commercialization of
the Products, the Parties shall disclose confidential information relevant to
the Research and either Party may disclose other confidential information such
as scientific engineering, economic, commercial or other technical data or information,
biological materials, all methods, processes and procedures or know-how
(hereinafter together &#147;Confidential Information&#148;) owned or controlled by it to
the other (the disclosing party being referred to as the &#147;Disclosing Party&#148;,
and the receiving party as the &#147;Receiving Party&#148;).</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 37.15pt;text-align:justify;text-indent:-37.15pt;">23.1.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In consideration of such
disclosure, the Receiving Party agrees to maintain as confidential any and all
Information received from the Disclosing Party and to hold such Information in
trust for the exclusive benefit of the Disclosing Party. Information disclosed
by the Disclosing Party shall remain the exclusive property of the Disclosing
Party and will be used by the Receiving Party solely for the purpose for which
it was disclosed. The Receiving Party will protect Information received from
the Disclosing Party with at least the same degree of care as it uses to
protect the Receiving Party&#146;s own Information. The Receiving Party will not use
Information disclosed by the Disclosing Party for itself or others or copy or
disclose such Information to anyone (except the Receiving Party&#146;s employees, on
a need-to-know basis).</p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt 37.1pt;text-align:justify;text-indent:-1.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The foregoing
restrictions on use and disclosure shall not apply to any Information of the
Disclosing Party that:</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 74.25pt;text-align:justify;text-indent:-38.25pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">23.1.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>was known to the
Receiving Party prior to its disclosure to the Receiving Party by the
Disclosing Party as evidenced by written documents predating the Receiving
Party&#146;s receipt of such Information; or</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 74.25pt;text-align:justify;text-indent:-38.25pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">23.1.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>is public knowledge at
the time of its disclosure to the Receiving Party or became public knowledge
after its disclosure to the Receiving Party through no act or omission or on
its behalf; or</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 74.25pt;text-align:justify;text-indent:-38.25pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">23.1.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>is lawfully disclosed or
made available to the Receiving Party by a third party having no direct or
indirect obligation to the Disclosing Party to maintain the confidentiality of
such Information;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 74.25pt;text-align:justify;text-indent:-38.25pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">23.1.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>is independently
developed by the Receiving Party without the aid or benefit of Information
disclosed to the Receiving Party by the Disclosing Party; or</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 74.25pt;text-align:justify;text-indent:-38.25pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">23.1.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>is disclosed by the Receiving
Party pursuant to a subpoena lawfully issued by a court or governmental agency <u>provided</u>
that the Receiving Party notifies the Disclosing Party immediately upon receipt
of any such subpoena.</p>

<p style="line-height:14.45pt;margin:12.0pt 0in .0001pt 37.7pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The Receiving Party will promptly return to
the Disclosing Party upon request all Information of the Disclosing Party (and
any copies, reproductions, digests, abstracts or the like of such Information)
in its possession or under its control at the time of such request and destroy
any computer entries relating thereto.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">24.&#160;&#160;&#160;&#160;&#160;&#160; LIABILITY
FOR AFFILIATES</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Licensee shall be vicariously responsible for
the obligations and undertakings herein to be observed or performed by
Affiliates. Any act or omission by an Affiliate that would, if it had been an
act or omission by Licensee, constitute a breach of this Agreement shall be
deemed a breach of this Agreement by Licensee.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">25.&#160;&#160;&#160;&#160;&#160;&#160; OTHER
DOCUMENTS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The parties shall do all such acts, matters
and things and shall sign or execute and deliver all such documents as may in
the reasonable opinion of Licensor be necessary or expedient to further and
more effectually carry into effect the provisions of this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">26.&#160;&#160;&#160;&#160;&#160;&#160; OTHER
AGREEMENTS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">This Agreement, the Research Agreement and
the Settlement Agreement contain the entire agreement between the parties with
respect to the subject matter hereof and the parties agree that this Agreement,
the Research Agreement and the Settlement Agreement supersede and prevail over
any prior agreement or understanding between the parties.&#160; The parties agree that, to the extent of any
inconsistency between this Agreement and the Research Agreement, the Research
Agreement will prevail.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">27.&#160;&#160;&#160;&#160;&#160;&#160; AMENDMENT</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">No amendment of this Agreement shall bind the
parties unless made in writing expressed to be supplemental to or in
substitution for the whole or a part of this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">28.&#160;&#160;&#160;&#160;&#160;&#160; NOTICES</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">A notice to be given or made pursuant to this
Agreement shall be in writing in English and may be signed by the authorized
agent of the party giving same and may be served either:</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">28.1.&#160;&#160;&#160;&#160; Personally.</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.85pt;text-align:justify;text-indent:-36.85pt;">28.2.<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>By posting the same by
registered or certified mail to a party at its address hereinbefore appearing
or at any other address of which prior notification shall have been given by
the addressee prior to the dispatch of the said notice and any notice given by
post shall be deemed to have been received by the addressee at the expiration
of fourteen (14) days after the same has been properly posted.</p>

<p style="font-size:11.0pt;margin:12.0pt 0in .0001pt;text-align:justify;">28.3.&#160;&#160;&#160;&#160; By facsimile
transmission:</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 2.0in;text-align:justify;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">To Licensor:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Ms Sophie Lazenkas</p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Lysosomal
Diseases Research Unit</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Women&#146;s and
Children&#146;s Hospital</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">72 King William
Road</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">North Adelaide</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">South Australia</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;page-break-after:avoid;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Tel:&#160; 61 8 8161 7101</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Fax:&#160; 61 8 8161 7100</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt 36.6pt;text-align:justify;text-indent:-.6pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">to Licensee:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Dr Doug Treco</p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice
President, Research and Development</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Transkaryotic
Therapies Inc.</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">700 Main Street</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Cambridge, MA
02139</font></p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Tel:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>1-617-349-0218</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt 2.0in;text-align:justify;text-indent:-.7pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Fax:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>1-617-491-7903</p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt 38.25pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">or any other facsimile number of which prior
notification shall have been given to the sender prior to the transmission of
the facsimile and any facsimile transmission shall be deemed to have been
served on the date of transmission by the sender provided that the sender shall
receive confirmation of receipt from the recipient.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">29.&#160;&#160;&#160;&#160;&#160;&#160; GOVERNING
LAW</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">This Agreement shall be governed by the laws
of the United Kingdom and in default of arbitration as hereinbefore referred to
the parties agree by their execution hereof to submit to the non-exclusive
jurisdiction of the courts of that nation in respect of all matters arising
under this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">30.&#160;&#160;&#160;&#160;&#160;&#160; SEVERANCE</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">If any provision or part thereof of this
Agreement is or shall be for any reason void, invalid or unenforceable then the
remainder thereof shall in no way be affected thereby but shall continue in
full force and effect.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">31.&#160;&#160;&#160;&#160;&#160;&#160; COSTS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Each party shall bear its own costs of and
incidental to the negotiation, preparation and execution of this Agreement.</font></p>

<h1 style="font-size:11.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:justify;">32.&#160;&#160;&#160;&#160;&#160;&#160; COUNTERPARTS</h1>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">This Agreement may be executed in two
counterparts each of which shall together constitute but one original document.</font></p>

<font size="2" face="Times New Roman" style="font-size:11.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\ahanson\9805_12\t_1532410\j9805_ex10d39.htm',USER='ahanson',CD='May 14 13:41 2003' -->
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</font>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;">&nbsp;</p>

<p style="font-size:11.0pt;line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">IN
WITNESS</font></b> whereof the duly authorised representatives of the
parties have signed this Agreement on the day and year first mentioned above.</p>

<p style="line-height:14.15pt;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;">
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">SIGNED</font></b> by <b><font style="font-weight:bold;">&#160;</font></b></p>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">for and on behalf of <b><font style="font-weight:bold;">WOMEN&#146;S AND</font></b></font></p>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;">CHILDREN&#146;S HOSPITAL</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)&#160;&#160; ............................................................ </font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">as its duly
  authorised representative</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">in the presence
  of:</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;">&nbsp;</h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;">&nbsp;</h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">................................................................. </font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:1.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">Witness</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:1.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
</table>

<p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;">
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  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">SIGNED</font></b> by <b><font style="font-weight:bold;">&#160;</font></b></p>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">for and on behalf of <b><font style="font-weight:bold;">TRANSKARYOTIC</font></b></font></p>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
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  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;">THERAPIES INC</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)&#160;&#160; ............................................................ </font></p>
  </td>
 </tr>
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  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">as its duly
  authorised representative</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">in the presence
  of:</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;">&nbsp;</h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;">&nbsp;</h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:11.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">................................................................. </font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:1.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <h1 style="line-height:14.15pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">Witness</font></b></h1>
  </td>
  <td width="284" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:213.2pt;">
  <p style="font-size:1.0pt;line-height:14.15pt;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>
  </td>
 </tr>
</table>

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