Common use of Automatic Expiration Clause in Contracts

Automatic Expiration. Notwithstanding Section 2.I above, the Put Option shall automatically expire prior to December 31, 2001 in the event that MetaMorphix has raised an aggregate of Eight Million Dollars ($8,000,000) or more, in cash and/or non-cash consideration. through(a) an equity financing or equity financings or (b) the transfer to Investor and/or one or more third parties of any rights or assets relating to one or more MetaMorphix Factors (as that term is defined in the 1999 Collaboration Agreement). Only consideration actually received by MetaMorphix on or before December 31, 2001 shall be considered in determining whether such Eight Million Dollars ($8,000,000) has been raised. Any consideration received by MetaMorphix in a form other than cash shall, for purposes of this Agreement. be considered to have been received as cash in an amount equivalent to the fair market value, as determined in good faith by GI and MetaMorphix' Board of Directors, of such non-cash consideration at the time received. MetaMorphix shall promptly notify, in writing, Investor and GI upon the occurrence of any events which result in the expiration of this Put Option, PROVIDED, HOWEVER, that any failure to give or delay in giving such notice shall have no effect upon the expiration of the Put Option. Upon notice of expiration of the Put Option pursuant to this Agreement. Investor shall promptly surrender and return this original Agreement to GI for cancellation.

Automatic Expiration. Notwithstanding Section 2.I above, the Put Option shall automatically expire prior to December 31, 2001 in the event that MetaMorphix has raised an aggregate of Eight Million Dollars ($8,000,000) or more, in cash and/or non-cash consideration. through(a) an equity financing or equity financings or (b) the transfer to Investor and/or one or more third parties of any rights or assets relating to one or more MetaMorphix Factors (as that term is defined in the 1999 Collaboration Agreement). Only consideration actually received by MetaMorphix on or before December 31, 2001 shall be considered in determining whether such Eight Million Dollars ($8,000,000) has been raised. Any consideration received by MetaMorphix in a form other than cash shall, for purposes of this Agreement. be considered to have been received as cash in an amount equivalent to the fair market value, as determined in good faith by GI and MetaMorphix' Board of Directors, of such non-cash consideration at the time received. MetaMorphix shall promptly notify, in writing, Investor and GI upon the occurrence of any events which result in the expiration of this Put Option, PROVIDED, HOWEVER, that any failure to give or delay in giving such notice shall have no effect upon the expiration of the Put Option. Upon notice of expiration of the Put Option pursuant to this Agreement. Investor shall promptly surrender and return this original Agreement to GI CI for cancellation.