Document:

Exhibit 10.10

 

EXECUTION COPY

 

EXCLUSIVE SUBLICENSE AGREEMENT

 

between

 

ADVANCED CELL TECHNOLOGY, INC.,

 

A.C.T. GROUP, INC.

 

and

 

CYAGRA, INC.

 

This Exclusive Sublicense
Agreement (the “Agreement”) is made and entered into as of this 28th
day of June, 2002 (the “Effective Date”) by and between Advanced Cell
Technology, Inc., a Delaware corporation with a place of business at One
Innovation Drive, Worcester, Massachusetts 01605 (“ACT”), and A.C.T. Group, Inc.,
a Delaware corporation with a place of business at One Innovation Drive,
Worcester, Massachusetts 01605 (“ACT GROUP,” together with ACT, the “Licensors”),
and Cyagra, Inc., a Delaware corporation with a place of business at One
Innovation Drive, Worcester, Massachusetts 01605 (“CYAGRA,” together with Licensors,
the “parties”). As set forth below, the University of Massachusetts (the “University”),
Tufts University (“Tufts”) and Dr. Chengyu Liu (“Liu”) have agreed to be
bound by certain provisions of this Agreement.

 

RECITALS

 

WHEREAS, pursuant to that
certain Securities Purchase Agreement, of even date herewith (the “Securities
Purchase Agreement”), entered into by and among ACT GROUP, ACT, CYAGRA and
Goyaike S.A. (“Goyaike”), Goyaike purchased certain shares of CYAGRA held by
ACT;

 

WHEREAS, Licensors own or
have licensed with a sublicensable interest the ACT Patent Rights and the ACT
Technology (each as defined below), which include certain scientific methods
and techniques for cloning animals that may be valuable in the Fields of Use
(as defined below);

 

WHEREAS, CYAGRA desires
to obtain an exclusive license and sublicense from Licensors under the ACT
Patents Rights and the ACT Technology to use the ACT Patent Rights and the ACT
Technology for the purpose of developing and selling certain products and performing
certain services in the Fields of Use;

 

WHEREAS, Licensors are
willing to grant such a license and sublicense to CYAGRA upon the terms and
conditions set forth below;

 

WHEREAS, the sublicense
of ACT’s rights under the UMASS Rights (as defined below) to CYAGRA under this
Agreement shall be subject to the relevant terms of the UMASS License (as
defined below);

 

 

WHEREAS, the sublicense
of ACT’s rights under the TUFTS Rights (as defined below) to CYAGRA under this
Agreement shall be subject to the relevant terms of the TUFTS License (as
defined below); and

 

WHEREAS, the sublicense
of ACT GROUP’s rights under the LIU Rights (as defined below) to CYAGRA under
this Agreement shall be subject to the relevant terms of the LIU License (as
defined below).

 

NOW THEREFORE, in
consideration of the mutual covenants, agreements, representations, and
warranties contained in this Agreement, and other good and valuable
consideration, the adequacy and receipt of which are hereby acknowledged,
Licensors and CYAGRA agree as follows:

 

1.                                      DEFINITIONS. As used in this Agreement, the following terms
shall have the meanings set forth below.

 

1.1                                 “Affiliate”
means any corporation, company, partnership, joint venture and/or firm
which controls, in whatever country organized, is controlled by or is under
common control with a party. For purposes of this definition, “control” means (a) in
the case of corporate entities, direct or indirect ownership of more than fifty
percent (50%) of the stock or shares entitled to vote for the election of
directors; and (b) in the case of non-corporate entities, direct or
indirect ownership of more than fifty percent (50%) of the equity interest with
the power to direct the management and policies of such noncorporate entities.

 

1.2                                 “Confidential
Information” includes, without limitation, any scientific,
technical, financial, customer, trade business or other information disclosed
by one party to the other, or by CYAGRA to the University, Liu or Tufts,
whether directly or through Licensors, which is specifically designated by the
disclosing party as confidential or proprietary, or which, under all of the
given circumstances, ought reasonably to be treated as confidential information
of the disclosing party; provided, however, that the University’s,
Tuft’s or Liu’s obligation to treat information disclosed to the University,
Tufts or Liu, as applicable, as confidential shall be limited to information
which is specifically designated by the disclosing party as confidential or proprietary
or words of similar import. Such information may be disclosed in oral, visual
or written form (including magnetic, optical or other media). Each party’s
Confidential Information specifically includes without limitation the
respective party’s business plans and business practices, the terms of this
Agreement, scientific knowledge, research and development of know-how,
processes, inventions, techniques, formulae, products and product plans,
business operations, customer requirements, designs, sketches, photographs,
drawings, specifications, reports, studies, findings, data, plans or other
records, biological materials, software, margins, payment terms and sales
forecasts, volumes and activities, designs, computer code, technical information,
costs, pricing, financing, business opportunities, personnel, and information
of CYAGRA or Licensors, as applicable, relating to the ACT Licensed Property or
Licensed Products or Licensed Services. Confidential Information does not
include information which (a) was known to the receiving party at the time it
was disclosed, other than by previous disclosure by the disclosing party, as
evidenced by the written records of the receiving party at the time of disclosure;
(b) is at the time of disclosure or later becomes publicly known other than
through a breach of this Agreement; (c) is lawfully and in good faith made
available to the receiving party

 

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by a third party
who, to the receiving party’s knowledge after inquiry, did not derive it from
the disclosing party and who imposed no obligation of confidence on the
receiving party; or (d) is developed by the receiving party independent of
any disclosure by the disclosing party, as evidenced by the written records of
the receiving party.

 

1.3                                 “ACT
Developments” means Developments that are conceived,
discovered, invented, developed, created, made or reduced to practice solely by
Licensors.

 

1.4                                 “ACT
Licensed Property” means the ACT Patent Rights and the ACT
Technology.

 

1.5                                 “ACT
Patent Rights” means all patents, patent applications and
invention disclosures which are owned or controlled by or licensed to Licensors
or on file as of the Effective Date and which are related, useful, necessary or
required to develop and manufacture cloned, transgenic, non-human animals,
excluding avian, and the cells and tissues from such animals, including all
patents, patent applications and invention disclosures identified on Schedule A
attached hereto and the rights thereunder, and all divisionals, continuations, continuations-in-part,
reissues, reexaminations, extensions, substitutions, and foreign counterparts
thereof. The parties agree that Schedule A may from time to time be
amended after the Effective Date to reflect updates thereto.

 

1.6                                 “ACT
Technology” means the following which are owned or controlled
by or licensed to Licensors as of the Effective Date and which are related,
useful, necessary or required to develop and manufacture cloned, transgenic,
non-human animals, excluding avian, and the cells and tissues from such
animals: confidential information, knowledge and data, including but not
limited to, discoveries, inventions, developments, patent rights, know-how,
materials, trade secrets, ideas, designs, drawings, techniques, methodologies,
processes, modifications, innovations, improvements, writings, documentation,
data, like technical information and other rights (whether or not protectible
under United States or foreign patent, trade secret, copyright or similar
laws).

 

1.7                                 “CYAGRA
Developments” means Developments that are conceived,
discovered, invented, developed, created, made or reduced to practice solely by
CYAGRA.

 

1.8                                 “Developments”
means discoveries, inventions, developments, patents, patent applications
and patent rights, know-how, materials, trade secrets, ideas, designs,
drawings, techniques, methodologies, processes, modifications, innovations,
improvements, writings, documentation, data and other rights (whether or not
protectible under United States or foreign patent, trade secret, copyright or
similar laws), that are conceived, discovered, invented, developed, created,
made or reduced to practice by Licensors or CYAGRA, as applicable, during the
term of this Agreement.

 

1.9                                 “Equine
Field” means the cloning, development, making, using, selling,
offering to sell, importing or exporting of cloned equine animals (as well as
any transgenic variants or enhancements thereto) or products that are composed
of, made in or derived, extracted or isolated from cells or tissues of such
animals for nontherapeutic purposes, including but not limited to, for use in
agriculture, for use as companion or service animals, or for use as racing or

 

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other equine event
animals, and the rendering of services or uses that relate to the production of
such products. Specifically excluded from the Equine Field is the cloning of
such animals, and/or the development, making, using, selling, offering to sell,
importing or exporting of products that are composed of, made in or derived,
extracted or isolated from cells or tissues of such animals, for all purposes
related to veterinary or medical therapies, including, but not limited to, the
production of biopharmaceutical agents, proteins, peptides and polypeptides in
milk for pharmaceutical, nutraceutical or other use; provided, however,
CYAGRA may make transgenic cloned equine animals whereby gene therapy has been
employed to correct a particular medical or health defect in that animal.

 

1.10                           “Field of
Agriculture” means the cloning, development, making, using,
selling, offering to sell, importing or exporting of cloned non-human animals,
excluding avian (as well as any transgenic variants or enhancements thereto) or
products that are composed of, made in or derived, extracted or isolated from
cells or tissues of such animals for the production of food or fiber, and the
rendering of services or uses that relate to the production of such products.
Specifically excluded from the Field of Agriculture is the cloning of such
animals for all purposes related to veterinary or medical therapies, including,
but not limited to, the production of biopharmaceutical agents, proteins,
peptides and polypeptides in milk for pharmaceutical, nutraceutical or other
use; provided, however, CYAGRA may make transgenic cloned animals
whereby gene therapy has been employed to correct a particular medical or
health defect in that animal.

 

1.11                           “Fields
of Use” means the Field of Agriculture and the Equine Field.

 

1.12                           “Licensed
Product” means any product that (i) cannot be developed,
manufactured, used, imported, exported, offered for sale or sold without
infringing one or more Valid Claims under the ACT Patent Rights, or (ii) uses
or incorporates or is based on some portion of the ACT Technology.  Without limiting the generality of the
foregoing, and by way of illustration but not limitation, Licensed Products
include cloned cattle, goats, sheep and pigs in the Field of Agriculture and
cloned equine animals in the Equine Field, the progeny of such animals and
semen, ova or embryos obtained from such animals.

 

1.13                           “Licensed
Service” means any service that (i) cannot be developed
or performed without using at least one process, method or use that infringes
one or more Valid Claims under the ACT Patent Rights, or (ii) uses or is
based on some portion of the ACT Technology.

 

1.14                           “LIU
License” means the “Terms for Exclusive License Agreement”
between ACT GROUP and Dr. Chengyu Liu dated December 20, 2000, a true
and complete copy of which is attached hereto as Schedule B.

 

1.15                           “LIU
Rights” means all ACT Patent Rights and ACT Technology that
are owned or controlled by or licensed to, or become owned or controlled by or
licensed to ACT GROUP under the LIU License.

 

1.16                           “Net
Sales” means the total invoice price earned on all sales by
CYAGRA (or by any third party on behalf of CYAGRA) of Licensed Products and/or
Licensed Services in any country in the Territory after deducting, to the
extent not already deducted, normal and

 

4

 

customary trade,
dealer, quantity, and cash discounts actually allowed; allowances for credits
granted on account of rejections, returns, write offs or price reductions;
governmental sales taxes and other charges imposed on such sales; and freight,
insurance, customs, duties, and other landing charges.

 

In any transfers of Licensed Products between CYAGRA and an Affiliate
of CYAGRA, Net Sales shall be calculated based on the final sale of the
Licensed Product to an independent third party by such Affiliate. In the event
that CYAGRA or an Affiliate of CYAGRA or sublicensee receives non-monetary
consideration for any Licensed Products or Licensed Services, Net Sales shall
be calculated based on the fair market value of such consideration. In the event
that CYAGRA or its Affiliates or Sublicensees use or dispose of a Licensed
Product in the provision of a commercial service other than a Licensed Service,
the Licensed Product shall be considered sold and the Net Sales shall be
calculated based on the sales price of the Licensed Product to an independent
third party or, in the absence of such sales, on the fair market value of the
Licensed Product as determined by the parties in good faith.

 

1.17                           “Sublicense
Income” means consideration that CYAGRA receives for granting
a sublicense pursuant to Section 2 of this Agreement, including without
limitation license fees, royalties, milestone payments, equity payments, up
front fees, success fees, and license maintenance fees.

 

1.18                           “Territory”
means the World.

 

1.19                           “TUFTS
License” means the License Agreement between ACT and Tufts University
dated May 31, 2001, a true and complete copy of which is attached hereto
as Schedule B.

 

1.20                           “TUFTS
Rights” means all ACT Patent Rights and ACT Technology that
are owned or controlled by or licensed to, or become owned or controlled by or
licensed to ACT from Tufts University under the TUFTS License.

 

1.21                           “UMASS
License” means the Exclusive License Agreement between ACT
and the University dated April 16, 1996, as amended by the Amendment to
Exclusive License Agreement dated September 1, 1997 and the Second
Amendment to Exclusive License Agreement dated May 31, 2000, a true and
complete copy of which is attached hereto as Schedule B.

 

1.22                           “UMASS
Rights” means all ACT Patent Rights and ACT Technology that
are owned or controlled by or licensed to, or become owned or controlled by or
licensed to ACT from the University under the UMASS License.

 

1.23                           “Valid
Claim” means a claim of an issued patent which has not
expired, lapsed or become abandoned or been declared invalid or unenforceable
by a court of competent jurisdiction or an administrative agency from which no
appeal can be or has been taken within the time allowed for that appeal.

 

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The use herein of the plural shall include the singular and vice versa and the use of the masculine shall include the feminine.
Additional terms may be defined throughout this Agreement.

 

2.                                      GRANT OF RIGHTS.

 

2.1                                 (a) License
Grant. (1) Subject to the terms and conditions of this Agreement,
Licensors hereby grant to CYAGRA an exclusive (even as to Licensors),
royalty-bearing (except with respect to the ACT Licensed Property owned by
Licensors, which shall be royalty-free), perpetual license under its rights in
the ACT Licensed Property to develop, make, have made, import, export (to
countries or territories located within the Territory), use and sell Licensed
Products in the Territory in the Fields of Use and to develop and perform
Licensed Services in the Territory in the Fields of Use; provided, however,
that the exclusive nature of the license granted herein shall be subject to the
rights of the licensees identified in the license agreements described in Schedule C
attached hereto (the “Existing Licenses”). CYAGRA acknowledges, understands and
agrees that the Existing Licenses shall remain in effect in accordance with the
terms of said agreements. Licensors, CYAGRA, the University, Tufts and Liu
acknowledge, understand and agree that the license granted herein includes the
right of CYAGRA to grant further sublicenses to or under the ACT Licensed
Property; provided, however, that CYAGRA shall provide ACT, ACT
GROUP, the University, Tufts and Liu with a true and complete copy of each
sublicense agreement and amendment thereto, of any sublicense that grant rights
to the ACT Licensed Property, the LIU Rights, the University Rights or the
TUFTS Rights, as applicable, within thirty (30) days after each sublicense or
amendment has been executed by CYAGRA and the sublicensee.

 

(2)                                  To
the extent the license granted in 2.1(a)(1) above includes a sublicense of any
UMASS Rights, such sublicense is subject to the relevant terms of the UMASS
License as may be amended from time to time, provided  that (i) as
provided in Section 2.1(b) below, the UMASS License may not be
amended in a manner that materially and adversely affects the rights and
benefits extended to CYAGRA hereunder without the prior written consent of CYAGRA,
and (ii) in the event of any inconsistency between the UMASS License and
Section 2.1(b) hereof, Section 2.1(b) hereof shall govern. Licensors
agree to provide CYAGRA with prior written notice of any amendments to the
UMASS License.

 

(3)                                  To
the extent the license granted in 2.1(a)(1) above includes a sublicense of any
TUFTS Rights, such sublicense is subject to the relevant terms of the TUFTS
License as may be amended from time to time, provided  that (i) as
provided in Section 2.1(c) below, the TUFTS License may not be
amended in a manner that materially and adversely affects the rights and
benefits extended to CYAGRA hereunder without the prior written consent of
CYAGRA, and (ii) in the event of any inconsistency between the TUFTS
License and Section 2.1(c) hereof, Section 2.1(c) shall
govern.

 

(4)                                  To
the extent the license granted in 2.1(a)(1) above includes a sublicense of any
LIU Rights, such sublicense is subject to the relevant terms of the LIU License
as may be amended from time to time, provided  that (i) as
provided in Section 2.1(d) below, the LIU License may not be amended
in a manner that materially and adversely affects the rights and benefits
extended to CYAGRA hereunder without the prior written consent of CYAGRA, and

 

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(ii) in the
event of any inconsistency between the LIU License and Section 2.1(d) hereof,
Section 2.1(d) shall govern.

 

(b) The UMASS
License. CYAGRA acknowledges that portions of the ACT Licensed Property
licensed to CYAGRA hereunder are owned by the University and are licensed to
ACT under the UMASS License. Licensors, the University and CYAGRA agree that,
in the event the UMASS License or this Agreement is terminated for any reason, (i) promptly
following such termination of the UMASS License, the University shall directly
license the UMASS Rights to CYAGRA in a license agreement with the terms of
such license agreement no less favorable than the UMASS License and CYAGRA will
thereafter make any payments due to ACT directly to the University during the
term of this Agreement; and (ii) CYAGRA shall not be liable for any
payments that may be due and payable to the University by Licensors. LICENSORS
AND THE UNIVERSITY ACKNOWLEDGE AND AGREE THAT CYAGRA SHALL BE ENTITLED TO
SPECIFIC PERFORMANCE OF THE UNIVERSITY’S OBLIGATIONS UNDER THIS SECTION 2.1(b)(i).
Licensors acknowledge that any payments so made by CYAGRA to the University
shall be credited against any payments due and payable to ACT hereunder. For
the avoidance of doubt, Licensors and the University agree that the references
to “Sublicensees” in Section 8.5 of the UMASS License shall not apply to
CYAGRA and shall not be construed as vitiating the provisions of this Agreement
(including Sections 2.1(a)(1), 2.1(a)(2) and this Section 2.1(b)).
Licensors and the University agree that the provisions of Section 2.2 of
the UMASS License providing for the automatic assignment to the University of
sublicenses granted by ACT under said Section 2.2 shall not apply to the
sublicense by Licensors to CYAGRA under this Agreement, and that the provisions
of this Section 2.1(b) shall govern in the event that the UMASS
License is terminated. Licensors and the University agree that CYAGRA will not
be bound by any amendment to the UMASS License that adversely affects CYAGRA’s
rights under this Agreement in any material respect, unless CYAGRA agrees in
writing to such amendment.

 

(c) The TUFTS License. CYAGRA acknowledges that portions of
the ACT Licensed Property licensed to CYAGRA hereunder are owned by Tufts and
are licensed to ACT under the TUFTS License. Licensors, Tufts and CYAGRA agree
that, in the event that the TUFTS License or this Agreement is terminated for
any reason, (i) promptly following such termination of the TUFTS License,
Tufts shall directly license the TUFTS Rights to CYAGRA in a license agreement
with the terms of such license agreement no less favorable than the TUFTS
License and CYAGRA will thereafter make any payments due to ACT directly to
TUFTS during the term of this Agreement; and (ii) CYAGRA shall not be
liable for any payments that may be due and payable to Tufts by Licensors.
LICENSORS AND TUFTS ACKNOWLEDGE AND AGREE THAT CYAGRA SHALL BE ENTITLED TO
SPECIFIC PERFORMANCE OF TUFTS’ OBLIGATIONS UNDER THIS SECTION 2.1(c)(i).
Licensors acknowledge that any payments so made by CYAGRA to Tufts shall be
credited against any payments due and payable to ACT hereunder. For the
avoidance of doubt, Licensors and Tufts agree that references to “Sublicensees”
in Sections 2.4 and 8.2 of the Tufts License shall not apply to CYAGRA and
shall not be construed as vitiating the provisions of this Agreement
(including, Sections 2.1(a)(1), 2.1(a)(3) and this Section 2.1(c)).
Licensors and Tufts agree that the provisions of Section 8.2 of the TUFTS
License providing for termination or assignment of sublicenses to Tufts at
Tufts’ option shall not apply to the sublicense by Licensors to CYAGRA under
this Agreement, and that the provisions of this Section 2.1 shall govern
in the event that

 

7

 

the TUFTS License
is terminated. Licensors and Tufts agree that CYAGRA will not be bound by any
amendment to the TUFTS License that adversely affects CYAGRA’s rights under
this Agreement in any material respect, unless CYAGRA agrees in writing to such
amendment.

 

(d) The LIU License. CYAGRA acknowledges that portions of
the ACT Licensed Property licensed to CYAGRA hereunder are licensed to ACT
GROUP under the LIU License. Licensors, Liu, and CYAGRA agree that, in the
event that the LIU License or this Agreement is terminated for any reason, (i) promptly
following such termination of the LIU License, Liu shall directly license the
LIU Rights to CYAGRA in a license agreement with the terms of such license
agreement no less favorable than the LIU License and CYAGRA will thereafter
make any payments due to ACT GROUP directly to Liu during the term of this
Agreement; and (ii) CYAGRA shall not be liable for any payments that may
be due and payable to Liu by Licensors. LICENSORS AND LIU ACKNOWLEDGE AND AGREE
THAT CYAGRA SHALL BE ENTITLED TO SPECIFIC PERFORMANCE OF LIU’S OBLIGATIONS
UNDER THIS SECTION 2.1(d)(i). Licensors acknowledge that any payments so
made by CYAGRA to Liu shall be credited against any payments due and payable to
Licensors hereunder. Licensors and Liu agree that CYAGRA will not be bound by
any amendment to the LIU License that adversely affects CYAGRA’s rights under
this Agreement in any material respect, unless CYAGRA agrees in writing to such
amendment.

 

2.2                                 Technology
Transfer. In connection with the license granted in Section 2.1(a) above,
ACT agrees that it will, promptly after the Effective Date of this Agreement,
provide CYAGRA with all information, data and training relating to the ACT
Licensed Property as may be reasonably necessary to allow CYAGRA to exploit
said license.

 

2.3                                 First
Offer/Negotiation. ACT and CYAGRA each agree, on a periodic basis (not less
frequently than quarterly) during the term of this Agreement, to provide the
other a written report of all ACT Developments or CYAGRA Developments, as
applicable, developed and internally disclosed by each, which reports shall be
deemed Confidential Information subject to the provisions of Section 7 of
this Agreement. ACT and CYAGRA each hereby grant to the other a right of first
offer/first negotiation to obtain an exclusive, worldwide license, limited to the
Field of Agriculture and the Equine Field in the case of CYAGRA and limited to
the fields of use other than the Field of Agriculture and the Equine Field in
the case of ACT, to any such Developments. The option to negotiate with respect
to any such Development shall be valid and exercisable for a period of 60 days
after one party (the “Optionor”) notifies the other party (the “Optionee”) of
the Development (the “Option Period”). If Optionee exercises the option within the
Option Period, then the Optionee shall have 90 days after exercise of the
option (the “Negotiation Period”) within which to execute a license. The 90-day
Negotiation Period may be extended by mutual agreement of the parties.

 

3.                                      OBLIGATIONS RELATING TO COMMERCIALIZATION.

 

3.1                                 CYAGRA
Diligence Requirements. CYAGRA shall use reasonable efforts to develop
Licensed Products or Licensed Services and to introduce Licensed Products or
Licensed Services into the commercial market; thereafter, CYAGRA shall make
Licensed Products or Licensed Services reasonably available to the public.

 

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3.2                                 Summary
Reports by CYAGRA. CYAGRA shall maintain complete and accurate records of
Licensed Products and Licensed Services that are made, used, sold or performed
by CYAGRA (or on behalf of CYAGRA) under this Agreement. Not later than May 1st
of each year following the Effective Date, CYAGRA shall furnish Licensors and
the University with an executive summary report on the progress of its efforts
during the prior year to develop and commercialize Licensed Products or
Licensed Services, including without limitation research and development
efforts, efforts to obtain regulatory approval, marketing efforts (including
Licensed Products and Licensed Services made, used, sold or performed) and
sales figures, provided that such reports shall be deemed Confidential
Information subject to the provisions of Section 7 of this Agreement.

 

4.                                      TERM AND TERMINATION.

 

4.1                                 General.
The terms of this Agreement shall commence on the Effective Date and shall
remain in effect unless sooner terminated as provided herein.

 

4.2                                 Termination
by CYAGRA. This Agreement may be terminated by CYAGRA at any time without
cause by giving sixty (60) days prior written notice to Licensors. Upon termination,
CYAGRA shall have no further obligations to pay any royalties, other than to submit
a final report and to pay any royalty payments that may be due and payable at termination.

 

4.3                                 Termination
for Cause. This Agreement may be terminated by either party at any time in
the event that the other party is in default or breach of any material
provision of this Agreement, by giving thirty (30) days prior written notice to
the other party specifying the cause of the termination; provided, however,
that if the breach is cured within the thirty (30) day period, the notice shall
be withdrawn and shall be of no effect.

 

4.4                                 Termination
for Infringement. CYAGRA may immediately terminate this Agreement with
respect to any Licensed Product or Licensed Service on written notice to
Licensors in the event that such Licensed Product or Licensed Service becomes
subject to any litigation or proceeding before any court or governmental
authority that such Licensed Product or Licensed Service is alleged to infringe
the intellectual property right of any third party.

 

4.5                                 Termination
for Change in Law. CYAGRA may immediately terminate this Agreement on
written notice to Licensors in the event that there are any changes in law that
may have material adverse effect on CYAGRA’s right to develop, make, have made,
import, export, use and sell Licensed Products and to develop and perform
Licensed Services.

 

4.6                                 Termination
of UMASS License, TUFTS License or LIU License. CYAGRA may immediately
terminate this Agreement on written notice to Licensors in the event that the UMASS
License, TUFTS License or LIU License is terminated.

 

4.7                                 Survival
of Obligations; Return of Confidential Information. Notwithstanding any
termination of this Agreement, the obligations of the parties under Sections
2.1(b), 2.1(c), 2.1(d), 4, 6, 7, 8, 9, 10 and 12, as well as under any other provisions, which by their nature
are intended to survive any such termination, shall survive and continue in
force. Upon any termination of this Agreement, each party shall promptly return
to the other party all written

 

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Confidential
Information, and all copies, summaries, notes or extracts thereof, to the other
party.

 

4.8                                 Existing
Stock. In the event that this Agreement terminates or expires, CYAGRA shall
retain limited rights to sell any Licensed Products existing or under
production at the time of termination or expiration and to provide any Licensed
Services related to such Licensed Products, subject to the terms of this
Agreement.

 

4.9                                 Additional
Termination Provisions. The foregoing termination rights are in addition to
any termination rights that may be provided elsewhere in this Agreement.

 

5.                                      PAYMENTS.

 

5.1                                 Royalties,
Sublicense Income, Reports and Records.

 

(a)                                  For
each Licensed Product or Licensed Service sold by CYAGRA (or by any third party
on behalf of CYAGRA), CYAGRA shall pay to Licensors on a quarterly basis, as provided
in Section 5.5 below, the same royalties that ACT and/or ACT GROUP would
have paid to the University, Tufts or Liu, respectively, pursuant to the UMASS
License, the TUFTS License and/or the LIU License, for the sale of such
Licensed Product or Licensed Services. The Licensors acknowledge and agree that
the license to Cyagra of any and all ACT Licensed Property owned by the
Licensors shall be royalty-free.

 

(b)                                 The
obligation of CYAGRA to pay royalties pursuant to Section 5.1(a) on sales
of Licensed Products and Licensed Services shall terminate on a
country-by-country basis concurrently with the expiration or termination of the
last applicable patent within the ACT Patent Rights in the country in which the
Licensed Product or Licensed Services is manufactured, sold or performed.

 

(c)                                  If
CYAGRA fails to timely make any payment required under this Section 5.1, such
failure, not cured within thirty (30) days of receiving a written notice of
such failure to make a payment, shall constitute a breach of a material
provision under this Agreement and Licensors shall have the right to terminate
this Agreement in accordance with Section 4.3 hereof,

 

5.2                                 Minimum
Royalty.

 

(a)                                  Field
of Agriculture. For the Field of Agriculture, CYAGRA shall be subject to
minimum annual royalties equal in an amount to the minimum annual royalties
that ACT GROUP and/or ACT pays to the University, Tufts or Liu, respectively,
pursuant to the UMASS License, the TUFTS License and/or LIU License.

 

(b)                                 Equine
Field. For the Equine Field, commencing with the third full calendar year
of this Agreement (i.e., the calendar year 2005), CYAGRA shall be subject to
minimum annual royalties for each remaining calendar year of the term of this
Agreement. The amount of the minimum royalty for the Equine Field shall be Ten
Thousand ($10,000) dollars for the 2005 calendar year and shall thereafter
increase at the rate of $10,000 per calendar year, but in no event to exceed
Fifty Thousand ($50,000) dollars per calendar year. For the avoidance of doubt,
the amount of the annual minimum royalty for each calendar year shall be as
follows (payable, as noted below, no later than forty-five (45) days following
the end of each applicable calendar year):

 

10

 

	
  Calendar
  Year

  	
   

  	
  Amount
  of Minimum Royalty Per Year

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  $

  	
  10,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  $

  	
  20,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  $

  	
  30,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  $

  	
  40,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009 and
  throughout the remaining calendar years of the term of this Agreement

  	
   

  	
  $

  	
  50,000.00

  	
   

  

 

In the event that the annual royalties paid by CYAGRA for the Equine
Field for the applicable year Is less than the minimum royalty due for such
year, CYAGRA shall pay the difference to CYAGRA no later than forty-five (45)
days following the end of each applicable calendar year. In the event that the annual
royalties paid by CYAGRA for the applicable year is equal to or greater than
the minimum royalty due for the Equine Field for such year, then CYAGRA shall
have satisfied the minimum royalty obligations for the Equine Field for such
year. Waiver of any payment of the minimum annual royalty by CYAGRA shall not
be construed as a waiver of any subsequent payment of the minimum annual
royalty for the Equine Field. If CYAGRA fails to make the payment to satisfy
the minimum royalty obligations for the Equine Field hereunder within said
forty-five (45) day period, such failure shall constitute a breach of CYAGRA’s
obligations under this Agreement and Licensors shall have the right to convert
the exclusive license granted herein to CYAGRA in the Equine Field to a nonexclusive
license.

 

5.3                                 Third
Party Royalties. In the event that CYAGRA is legally required to make
royalty payments to one or more third parties in order to make, have made, use,
import or export or sell Licensed Products or to perform Licensed Services,
CYAGRA may offset such third-party payments against any royalty payments that
are due to Licensors in the same royalty period, provided, however, that in no
event shall the royalty payments that are due to Licensors in such royalty
period be reduced by more than fifty percent (50%). CYAGRA may carry forward
any unused credits or offsets for use in subsequent royalty periods during the
term of this Agreement.

 

5.4                                 Sublicense
Income. CYAGRA shall pay to Licensors Sublicense Income in an amount equal
to the Sublicense Income that ACT GROUP and/or ACT would have to pay to the
University, Tufts or Liu, as applicable, if ACT GROUP or ACT had itself entered
into such sublicense. Except for royalty-based payments, such amounts shall be
due and payable within sixty (60) days after CYAGRA receives the relevant
payment from the sublicensee. Royalty-based payments of Sublicense Income shall
be due and payable as provided in Section 5.6 below.

 

11

 

5.5                                 Payments
in U.S. Dollars. All payments due under this Agreement shall be paid to ACT
in Worcester, Massachusetts, U.S.A., and shall be made in United States currency
without deduction for taxes, assessments, exchanges, collection or other
charges of any kind; provided, however, that any withholding tax required to be
withheld by CYAGRA on royalty or Sublicense Income payments under the laws of
any country in the Territory for the account of ACT will be promptly paid by
CYAGRA for and on behalf of ACT to the appropriate governmental authority, and
CYAGRA will furnish ACT with proof of payment of such tax. Any such tax
actually paid on behalf of ACT may be deducted from royalty or Sublicense Income
payments due ACT to the extent that such taxes, are allowable as a direct
credit to ACT against U.S. income taxes levied on such amounts. Conversion of
foreign currency to U.S. dollars shall be made at the conversion rate reported
in The Wall Street Journal on the last working day of the calendar quarter to
which the payment relates.

 

5.6                                 Reports

 

(a)                                  CYAGRA
shall submit a report, verified once a year by an independent certified public
accountant reasonably acceptable to ACT, to ACT quarterly within 45 days after the
end of each calendar quarter during the term of this Agreement stating in each
such report the aggregate sales and payments with respect to Licensed Products
and Licensed Services during the preceding calendar quarter and the royalty and
Sublicense Income amounts as provided herein. Without limiting the generality
of the foregoing, such reports shall include at least the following:

 

(1)                                  number
of Licensed Products manufactured, used, sold or imported by or on behalf of
CYAGRA;

 

(2)                                  total
billings for Licensed Products sold and Licensed Services performed by CYAGRA;

 

(3)                                  deductions
claimed (as provided in Section 1.16);

 

(4)                                  the
names and addresses of all parties making Licensed Products on behalf of
CYAGRA; and

 

(5)                                  the
amount of royalty-based Sublicense Income due to Licensors for the applicable
royalty period from each sublicensee.

 

The payment of
royalty and royalty-based Sublicense Income amounts shall be made concurrently
with such reports.

 

(b)                                 CYAGRA
shall keep, and shall cause its sublicensees to keep, full, complete, true and
accurate books of account containing all particulars relating to the
manufacture and sales with respect to Licensed Products and Licensed Services,
and any allowed credits, which may be necessary to ascertain and verify the
royalties and Sublicense Income payable to Licensors. Said books and accounts
of CYAGRA shall be kept at CYAGRA’s principal place of business for five years
following the end of the calendar year to which they pertain.

 

12

 

6.                                      PROPRIETARY RIGHTS.

 

6.1                                 Ownership.
ACT or its licensor(s) shall own the ACT Patent Rights, the ACT Technology and
the ACT Developments. CYAGRA shall own CYAGRA Developments.

 

6.2                                 ACT
Patent Rights.

 

(a)                                  Subject
to the terms of the UMASS License, the TUFTS License and the LIU License,
Licensors shall be solely responsible for the filing, prosecution and
maintenance of the ACT Patent Rights. The costs of such filing, prosecution and
maintenance (including the payment of all government fees in any given country
required to maintain the ACT Patent Rights) shall be borne by Licensors, except
that CYAGRA will reimburse Licensors for such costs in accordance with the
reimbursement schedule attached hereto as Schedule D. CYAGRA shall
also reimburse ACT for all such costs for any countries where CYAGRA requests
that ACT maintain patent protection, but where ACT did not otherwise intend to
maintain such protection. Licensors shall submit evidence to CYAGRA upon
request that fees required to maintain the ACT Patent Rights have been timely
paid. Except as provided above, Licensors and CYAGRA will pay the fees and
expenses of their respective outside patent counsel for the activities described
in this Section 6.2.

 

(b)                                 CYAGRA’s
patent counsel shall be given a reasonable opportunity to comment on all
proposed patent filings (“Filings”) and responses (“Responses”) to patent
office actions or other patent office communications (collectively, “Office
Communications”) with respect to the ACT Patent Rights. In the case of Filings,
and in the case of Office Communications to which Licensors must respond in a
period of time equal to or exceeding sixty (60) days (including extensions),
Licensors shall deliver its proposed Filing or Response to CYAGRA for comment
not later than sixty (60) days prior to the final patent office deadline for such
Filing or Response, and Licensors will not unreasonably refuse to accept any
suggestions of CYAGRA’s patent counsel regarding such Filing or Response,
provided that CYAGRA’s patent counsel provides such comments to Licensors’
patent counsel not less than thirty (30) days prior to the final patent office
deadline for such Filing or Response. In the case of Office Communications to
which Licensors must respond in less than sixty (60) days, which deadline may
not be extended, Licensors shall deliver its proposed Response to CYAGRA for
comment not later than ten (10) days after Licensors’ receipt of such
Office Communication, and Licensors will not unreasonably refuse to accept any
suggestions of CYAGRA’s patent counsel regarding such Response, provided that
CYAGRA’s patent counsel provides such comments to Licensors’ patent counsel not
less than ten (10) days prior to the final patent office deadline for such
Response. Licensors will not allow any patent or patent application within the
ACT Patent Rights to become expired or abandoned without giving (a) prior
written notice to CYAGRA of such expiration or abandonment, and (b) CYAGRA
the right to assume responsibility for such patent or patent application. If
CYAGRA so elects, ACT will assign such patent or patent application to CYAGRA,
and CYAGRA will thereafter assume control thereof and all expenses related
thereto. With respect to the LIU Rights, the TUFTS Rights and the UMASS Rights,
CYAGRA’s rights under this Section 6.2(b) shall be subject to (1) the
rights of the University under the UMASS License (including Section 6
thereof), (2) the rights of Liu under the LIU License, and (3) the
rights of Tufts under the TUFTS License (including Article 6 thereof), as applicable.

 

13

 

(c)                                  The
parties agree to notify each other in writing of any actual or threatened infringement
by a third party of the ACT Patent Rights, of any claim of invalidity, unenforceability,
or non-infringement of the ACT Patent Rights, or of any actual or threatened misappropriation
of the ACT Technology. Licensors shall have the first right to prosecute or defend
such claims, as applicable, and if Licensors proceed with such prosecution or
defense CYAGRA shall have the right to share in the control of the prosecution
or defense by providing reasonable assistance to Licensors and by sharing 50%
of the costs of such prosecution or defense. Licensors shall also have the
option to require CYAGRA to bear an increased share of such costs by paying, in
addition to its 50% share of such costs, an amount equal to the amount of
royalties or other payments due to Licensors by CYAGRA during the period in
which such costs are incurred, which amount shall be taken as an offset to the
royalty or other payments due to Licensors.

 

(d)                                 In
the event that Licensors fail to initiate an infringement action within a reasonable
time after they become aware of the basis for such action, or to answer a
declaratory judgment action within a reasonable time after such action is
filed, CYAGRA shall have the right to prosecute such infringement or answer
such declaratory judgment action, at its sole expense. In the event CYAGRA
exercises its rights hereunder to proceed with any such prosecution or defense,
CYAGRA shall keep Licensors fully informed of the status of any such
proceedings, shall consult with Licensors regarding the course of such
proceedings and shall not enter into any settlement agreements, consent orders
or agreements, judgments or other arrangements or understandings of any nature
relating to such proceedings that admits the invalidity, unenforceability or
non-infringement of any ACT Licensed Property or that would adversely effect
the then-current or future rights of Licensors without the express prior
written consent of Licensors, such consent not to be unreasonably withheld or
delayed. In the event CYAGRA abandons such proceedings, then Licensors shall
have the right to take control of any such proceedings at their sole expense
upon notification to CYAGRA, and CYAGRA shall cooperate fully with Licensors in
substituting Licensors for CYAGRA in any such proceeding in the most timely and
cost effective manner reasonably possible and shall otherwise cooperate with Licensors
in effecting a smooth transition in any such proceeding. With respect to the
LIU Rights, the TUFTS Rights and the UMASS Rights, CYAGRA’s rights under this Section 6.2(d)
shall be subject to (I) the rights of the University under the UMASS License
(including Section 6 thereof), (2) the rights of Liu under the LIU
License, and (3) the rights of Tufts under the TUFTS License (including Article 7
thereof), as applicable.

 

7.                                      CONFIDENTIAL INFORMATION AND PUBLICATIONS.

 

7.1.                              Use
and Nondisclosure of Confidential Information. (a) Licensors, CYAGRA,
the University, Tufts or Liu (each a “Receiving Party”) will not disclose or
make available to any person outside its organization the disclosing party’s
Confidential Information. The Receiving Party may disclose the other party’s
Confidential Information to persons within its organization and that of its
Affiliates to the extent necessary to further the purposes of this Agreement,
provided that all such persons are bound to protect the confidentiality of such
Confidential Information. The Receiving Party may disclose the other party’s
Confidential Information if required by law or governmental authority, provided
that prior notice of any such disclosure is given to the other party and that
the disclosing party cooperates with the other party in seeking protective orders
or other restrictions on disclosure.

 

14

 

(b) Except to the
extent expressly authorized by this Agreement or by other prior written consent
by the disclosing party, each Receiving Party shall during the term of this
Agreement and thereafter: (i) treat as confidential all Confidential
Information of the other party; (ii) not use such Confidential Information
except as authorized herein or otherwise authorized in writing, (iii) implement
reasonable procedures to prohibit the disclosure, unauthorized duplication,
misuse or removal of the other party’s Confidential Information; (iv) not
disclose such Confidential Information to any third party, and (v) only
disclose the Confidential Information to those of its employees who have need
to know such Confidential Information in order to exercise the rights and
fulfill the obligations set forth herein. Without limiting the foregoing, each
Receiving Party shall protect the Confidential Information using at least the
same procedures and degree of care that it uses to prevent the disclosure of
its own confidential information of like importance, but in no event less than
reasonable care. Each Receiving Party shall return the Confidential Information
to the other party upon termination of the Agreement or upon the request of the
other party. Except as expressly provided in this Agreement, no ownership or
license right is granted in any Confidential Information.

 

7.2                                 Injunctive
Relief. The Receiving Parties acknowledge and agree that any breach of the
confidentiality obligations imposed by this Section 7 will constitute
immediate and irreparable harm to the party disclosing the Confidential
Information and/or its successors and assigns, which cannot adequately and
fully be compensated by money damages and will warrant, in addition to all
other rights and remedies afforded by law, injunctive relief, specific performance,
and/or other equitable relief. The disclosing party’s rights and remedies
hereunder are cumulative and not exclusive. The disclosing party shall also be
entitled to receive from the receiving party the costs of enforcing this Section 7,
including reasonable attorneys’ fees and expenses of litigation.

 

7.3                                 Survival.
The obligations of the parties under this Section 7 shall survive any expiration
or termination of this Agreement.

 

8.                                      REPRESENTATIONS AND WARRANTIES.

 

8.1                                 Representations
and Warranties by Licensors. Licensors represent and warrant to CYAGRA
that:

 

(a)                                  Licensors
own or have a licensable interest in the ACT Licensed Property and have the
right to grant to CYAGRA the license set forth above;

 

(b)                                 Licensors
have provided CYAGRA with a copy of the UMASS License, as amended, and
Licensors represent and warrant that the said copy is a true and complete copy
of the UMASS License as of the Effective Date;

 

(c)                                  Licensors
have provided CYAGRA with a copy of the TUFTS License, and Licensors represent
and warrant that the said copy is a true and complete copy of the TUFTS License
as of the Effective Date;

 

(d)                                 Licensors
have provided CYAGRA with a copy of the LIU License, and Licensors represent
and warrant that the said copy is a true and complete copy of the LIU

 

15

 

License as of the
Effective Date;

 

(e)                                  the
execution of this Agreement and performance of the transactions contemplated
hereby have been approved by the ACT and ACT GROUP Boards of Directors and will
not conflict with or result in any breach of any of the terms, conditions or
provisions of, or constitute a default under, any agreement to which Licensors
are parties or by which Licensors are bound, including the UMASS License, TUFTS
License and LIU License; and

 

(f)                                    Licensors
have obtained all necessary consents to grant to CYAGRA the license set forth above;

 

(g)                                 the
ACT Licensed Property are valid and enforceable;

 

(h)                                 
the exercise of the rights and license granted to CYAGRA under this Agreement,
including the manufacture, use or sale of the Licensed Product or Licensed
Services shall not infringe or misappropriate the intellectual property rights
of any third party; and

 

(i)                                     Schedule A
sets forth a true and complete list of all ACT Patent Rights.

 

8.2                                 Representation
and Warranty by CYAGRA. CYAGRA represents and warrants to CYAGRA that the
execution of this Agreement and performance of the transactions contemplated by
this Agreement have been approved by the CYAGRA Board of Directors and will not
conflict with or result in any breach of any of the terms, conditions or
provisions of, or constitute a default under, any agreement to which CYAGRA is
a party or by which CYAGRA is bound or any laws or regulations to which CYAGRA
is subject.

 

8.3                                 Disclaimer.
Except as set forth in Section 8.1 above, Licensors do not make any representations
or warranties that the ACT Licensed Property has any applications, uses or
other attributes of any commercial nature, CYAGRA having made its own
determination as to the usefulness of the ACT Licensed Property to CYAGRA and
CYAGRA’s intended application(s) of the Licensed Property and any related
business based on such due diligence as CYAGRA has deemed necessary.

 

9.                                      INDEMNIFICATION.

 

9.1                                 Indemnification
by Licensors. Licensors shall defend, indemnify and hold harmless CYAGRA,
the University, Tufts and Liu, and their Affiliates, trustees, agents,
directors, officers and employees, at Licensors’ cost and expense, from and
against any and all losses, costs, liabilities, licensing fees, damages, fees
and expenses, including reasonable attorneys’ fees and expenses incurred or
imposed upon any of the indemnified parties in connection with any claims
(including third party claims), suits, actions, demands or judgments

 

(a)                                  arising
out of any breach by Licensors of any representation or warranty of Licensors
hereunder;

 

(b)                                 arising
out of any third party claim asserted against CYAGRA based on the alleged
infringement of a patent or other protected intellectual property right based
on a Licensed Product or a Licensed Service; and

 

16

 

(c)           arising out of any consequences of
the patent interference proceedings and opposition proceedings before the U.S.
Patent and Trademark Office and similar authorities in the Territory involving
the ACT Patent Rights.

 

9.2                                 Indemnification
by CYAGRA. CYAGRA shall defend, indemnify and hold harmless Licensors, the
University, Tufts and Liu, and their Affiliates, trustees, agents, directors, officers
and employees, at CYAGRA’s cost and expense, from and against any and all
losses, costs, liabilities, damages, fees and expenses, including reasonable
attorneys’ fees and expenses incurred or imposed upon any of the indemnified
parties in connection with any claims (including third party claims), suits,
actions, demands or judgments:

 

(a)                                  arising
out of any breach by CYAGRA of any representation or warranty of CYAGRA
hereunder; or

 

(b)                                 arising
out of the death or injury to any person or persons or out of any damage to
tangible property resulting from or otherwise attributable to the making,
using, development, testing, registration, distribution and/or sale by or
through CYAGRA of any Licensed Products or Licensed Services under this
Agreement.

 

9.3                                 Indemnification
Claims. Each party shall give the other party prompt notice of any claim
for which indemnification under this Section 9 is or may be applicable and
will cooperate with the indemnifying party in the defense or settlement of such
claim at the indemnifying party’s expense. The indemnifying party shall be
required to provide and be entitled to control the defense of any claim covered
hereunder (including the right to settle it at the sole discretion of the
indemnifying party) with counsel reasonably satisfactory to the other party
which may, at its own expense, participate in the defense of any claim after
the indemnifying party assumes control of the defense thereof. The
indemnification obligations in this Section 9 shall not apply to amounts
paid in settlement of such claim if such settlement is effected without the
consent of the indemnifying party, which consent shall not be unreasonably withheld
or delayed. The failure of the indemnified party to deliver notice to the
indemnifying party promptly after the commencement of any such action, if
materially prejudicial to the indemnifying party’s ability to defend such
action, shall relieve the indemnifying party of any liability to the
indemnified party under this Section 9, but the failure to promptly
deliver notice to the indemnifying party will not relieve it of any liability
that it may have to the indemnified party other than under this Section 9.

 

9.4                                 Patent
Interference Proceeding. In the event that Licensors enter into any settlements
or compromises arising out of any patent interference or opposition proceedings
pending before the U.S. Patent and Trademark Office and similar authorities in
the Territory involving the ACT Patent Rights, Licensors shall ensure that
CYAGRA and Goyaike will obtain the benefits of such settlements or compromises.

 

10.                               LIMITATION OF LIABILITY.
 IN NO EVENT SHALL ANY PARTY (OR ITS AFFILIATES,
SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, OR AGENTS) BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES ARISING OUT
OF OR RELATED TO THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH

 

17

 

DAMAGES,
REGARDLESS OF THE THEORY OF LIABILITY, EXCEPT (I) CLAIMS THAT RESULT FROM
EITHER PARTY’S MATERIAL VIOLATION OF SECTION 7 (CONFIDENTIALITY) OF THIS
AGREEMENT, (II) DAMAGES INCLUDED IN AN AWARD AGAINST EITHER PARTY RESULTING
FROM A THIRD PARTY CLAIM, OR (III) CLAIMS BASED ON GROSS NEGLIGENCE, WILLFUL
MISCONDUCT OR FRAUD.

 

11.                               INSURANCE.  Each party
shall obtain and maintain, at all times during the term of this Agreement,
general liability insurance with appropriate bodily injury, death and property
damage limits. Upon request, a party shall furnish a certificate of insurance
signed by an authorized representative of its insurance underwriter evidencing
such coverage and providing for at least thirty (30) days’ prior written notice
of any cancellation, termination or reduction of coverage.

 

12.                              MISCELLANEOUS.

 

12.1                           Assignment.
This Agreement, and the rights and obligations thereunder, may not be assigned
or transferred, in whole or in part, by either party without the prior written
consent of the other party; provided  that, CYAGRA shall have the
right to assign this Agreement in connection with sale of all or substantially
all of that portion of CYAGRA’s business to which this Agreement pertains.

 

12.2                           Notices.
Any payment, notice or other communication required or otherwise given pursuant
to this Agreement shall be in writing and delivered by internationally
recognized overnight delivery service, or by facsimile confirmed by prepaid
certified air mail addressed to the parties at the following addresses or such
other addresses as a party may furnish to another party in accordance with this
paragraph. Such notices, payments or other communications shall be deemed to
have been properly served to the addressee upon receipt of such written communication.

 

In the case of CYAGRA, the proper address for communications shall be:

 

	
  Cyagra, Inc.

  	
   

  
	
  One Innovation
  Drive

  	
   

  
	
  Worcester,
  Massachusetts  01605

  	
   

  
	
   

  	
   

  
	
  Telecopy:

  	
  (54) 3488-436300

  
	
  Attention:

  	
  Mr. Alejandro Cantarelli

  
	
   

  	
   

  
	
  with a copy to:

  	
   

  
	
   

  	
   

  
	
  Shearman &
  Sterling

  	
   

  
	
  599 Lexington
  Avenue

  	
   

  
	
  New York, NY
  10022

  	
   

  
	
   

  	
   

  
	
  Telecopy:

  	
  (212) 848-7179

  
	
  Attention:

  	
  Alfred J. Ross, Esq.

  
			

 

18

 

in the case of
A.C.T. GROUP, the proper address for communication shall be:

 

	
  A.C.T.
  Group, Inc.

  	
   

  
	
  One
  Innovation Drive

  	
   

  
	
  Worcester,
  Massachusetts  01605

  	
   

  
	
   

  	
   

  
	
  Telecopy:

  	
  508-756-0931

  
	
  Attention:

  	
  Michael D. West, Ph.D.,
  President

  
	
   

  	
   

  
	
  with
  a copy to:

  	
   

  
	
   

  	
   

  
	
  Pierce
  Atwood

  	
   

  
	
  One
  Monument Square

  	
   

  
	
  Portland,
  Maine  04101

  	
   

  
	
   

  	
   

  
	
  Telecopy:

  	
  (207) 791-1350

  
	
  Attention:

  	
  William L.
  Worden, Esq.

  
	
   

  	
   

  
	
  and in the case of ACT,
  the proper address for communications shall be:

  
	
   

  	
   

  
	
  Advanced
  Cell Technology, Inc.

  	
   

  
	
  One
  Innovation Drive

  	
   

  
	
  Worcester,
  Massachusetts 01605

  	
   

  
	
   

  	
   

  
	
  Telecopy:

  	
  508-756-0931

  
	
  Attention:

  	
  Michael D. West, Ph.D.,
  President

  
	
   

  	
   

  
	
  with
  a copy to:

  	
   

  
	
   

  	
   

  
	
  Pierce
  Atwood

  	
   

  
	
  One
  Monument Square

  	
   

  
	
  Portland,
  Maine  04101

  	
   

  
	
   

  	
   

  
	
  Telecopy:

  	
  (207) 791-1350

  
	
  Attention:

  	
  William L.
  Worden, Esq.

  
					

 

12.3                           Choice of Law; Submission to Jurisdiction. This Agreement is subject to and governed
by the laws of the Commonwealth of Massachusetts, without regard to principles
of conflicts of law thereof, except that questions affecting the construction
and effect of any patent shall be determined by the law of the country in which
the patent was granted. The parties irrevocably and expressly submit to the
exclusive jurisdiction of the courts (state and federal) of the Commonwealth of
Massachusetts, United States of America and the courts competent to hear appeals
from those courts for the resolution of any disputes arising in connection with
this Agreement.

 

12.4                           Compliance with Law by CYAGRA. CYAGRA shall comply in all material respects with all material local,
state, federal and international laws and regulations relating to the
development, manufacture, use, and sale of Licensed Products and Licensed
Services in the Territory. Without limitation of the foregoing, CYAGRA shall
comply with the following:

 

19

 

(a)                                  CYAGRA shall obtain all necessary approvals
from any governmental authorities of any foreign jurisdiction in which CYAGRA
intends to make, use, or sell Licensed Products or to perform Licensed Services
in the Territory.

 

(b)                                 CYAGRA shall comply in all material respects
with any and all material applicable local, state, federal and international
laws and regulations relating to the Licensed Products and Licensed Services,
and the ACT Patent Rights and ACT Technology, in the Territory, including without
limitation all material export or import regulations and rules now in effect
or as may be issued from time to time by any governmental authority which has jurisdiction
relating to the export of Licensed Products or Licensed Services and any
technology relating thereto.

 

12.5                           Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

 

12.6                           Headings. All
headings contained in this Agreement are for convenience of reference only and
shall not be considered in construing this Agreement.

 

12.7                           Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective permitted successors and assigns.

 

12.8                           Amendment and Waiver.
This Agreement may be amended, supplemented, or otherwise modified only by
means of a written instrument signed by both parties. Any waiver of any rights
or failure to act in a specific instance shall relate only to such instance and
shall not be construed as an agreement to waive any rights or failure to act in
any other instance, whether or not similar.

 

12.9                           Severability. In the
event that any one or more of the provisions contained in this Agreement shall,
for any reason, be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision of this Agreement, and all other provisions shall remain in full
force and effect. If any of the provisions of this Agreement is held to be
excessively broad or invalid, illegal or unenforceable in any jurisdiction, it
shall be reformed and construed by limiting and reducing it so as to be
enforceable to the maximum extent permitted by law in conformance with its
original intent.

 

12.10                     Entire Agreement.
This Agreement, together with the UMASS License, TUFTS License, LIU License and
Securities Purchase Agreement constitute the entire agreement of the parties
with regard to its subject matter, and supersede all previous written or oral representations,
agreements and understandings between the parties.

 

12.11                     Publicity. Neither
party, nor any of its Affiliates, shall originate any publicity, news release
or other public announcement (“Announcements”), written or oral, relating to
this Agreement or the existence of an arrangement between the parties, without
the prior written approval of the other party, which approval shall not be
unreasonably withheld, except as otherwise required by law. Any references to
the University or Tufts in such Announcements shall be subject to the approval
of the University or Tufts, as applicable. The foregoing notwithstanding,
Licensors and CYAGRA shall have the right to make such Announcements

 

20

 

without the consent of the other party, the University or Tufts, as
applicable, in any prospectus, offering memorandum, or other document or filing
required by securities laws or other applicable law, or regulation, provided
that such party shall have given the other party or the University, as
applicable, at least ten (10) days’ prior written notice of the proposed
text for the purpose of giving the other party or the University, as
applicable, the opportunity to comment on such text.

 

12.12                     No Implied Licenses.
No implied licenses are granted pursuant to the terms of this Agreement. No
license rights shall be created by implication or estoppel.

 

12.13                     No Agency. Nothing
herein shall be deemed to constitute either party as the agent or representative
of the other party, or both parties as joint venturers or partners for any purpose.
Each party shall be an independent contractor, not an employee or partner of
the other party, and the manner in which each party renders its services under
this Agreement shall be within its sole discretion. Neither party shall be
responsible for the acts or omissions of the other party, and neither party
will have authority to speak for, represent or obligate the other party in any
way without prior written authority from the other party.

 

12.14                     Non-Solicitation.
During the term of this Agreement and for a period of one (1) year thereafter,
neither party may solicit any person who is employed by or a consultant to the other
party or any Affiliate of such party to terminate such person’s employment by
or consultancy to such party or such Affiliate. As used herein, the term “solicit”
shall include, without limitation, requesting, encouraging, assisting or
causing, directly or indirectly, any such employee or consultant to terminate
such person’s employment with or consultancy to such party or Affiliate.

 

12.15                     Product Marking. To
the extent commercially feasible and permitted by law, and consistent with
prevailing business practices, all Licensed Products (or the packaging or
product label of such Licensed Product(s)) manufactured or sold by or through
CYAGRA under this Agreement will be marked with the number of each issued
patent that applies to such product.

 

12.16                     Effect of Bankruptcy Filing. All rights and licenses granted under or
pursuant to this Agreement are, and shall otherwise be deemed to be, for
purposes of Paragraph 365(n) of the U.S. Bankruptcy Code, licenses of rights to
“intellectual property” as defined under Paragraph 101(35A) of the U.S.
Bankruptcy Code. The parties agree that CYAGRA, as a licensee of such rights
under this Agreement, shall retain and may fully exercise all of its rights and
elections under the U.S. Bankruptcy Code. The parties further agree that, in
the event of the commencement of a bankruptcy proceeding by or against ACT
including under the U.S. Bankruptcy Code, CYAGRA shall be entitled to a
complete duplicate of (or complete access to, as appropriate) any such
intellectual property and all embodiments of such intellectual property,
including the ACT Patent Rights and the ACT Technology, and the same, if not
already in CYAGRA’s possession, shall be promptly delivered to CYAGRA upon any
such commencement of a bankruptcy proceeding upon written request therefore by
CYAGRA.

 

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK]

 

21

 

IN WITNESS WHEREOF, the parties hereto and the University, Tufts and Liu have caused this
Agreement to be executed the day and year first written above. The persons
signing below warrant their authority to sign the Agreement.

 

	
  ADVANCED CELL TECHNOLOGY,
  INC.

  	
  A.C.T. GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Michael West

  	
   

  	
  By:

  	
    /s/ Michael West

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
    Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    MICHAEL WEST

  	
   

  	
   

  	
    MICHAEL WEST

  	
   

  
	
   

  	
  Printed
  Name

  	
   

  	
   

  	
    Printed
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    PRESIDENT

  	
   

  	
   

  	
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    July 1, 2002

  	
   

  	
   

  	
    July 1, 2002

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  	
    Date

  	
   

  

 

 

	
  CYAGRA, INC.

  
	
   

  
	
   

  
	
  By:

  	
    /s/ Michael West

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    MICHAEL WEST

  	
   

  
	
   

  	
  Printed
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    PRESIDENT

  	
   

  
	
   

  	
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    July 1, 2002

  	
   

  
	
   

  	
  Date

  	
   

  

 

22Exhibit 10.11

 

NON-EXCLUSIVE
LICENSE AGREEMENT

 

This
Non-Exclusive License Agreement (“Agreement”) is made and entered into this 8th
day of November, 2002 (the “EFFECTIVE DATE”), by and between Advanced Cell Technology,
Inc., a Delaware corporation with offices located at One Innovation Drive, Worcester,
Massachusetts 01605, USA (“ACT”), and Merial Limited, a company limited by shares
registered in England and Wales (registered number 3332751) with a registered
office at PO Box 327, Sandringham House, Sandringham Avenue, Harlow Business
Park, Harlow, Essex CM19 5TG, England, domesticated in Delaware, USA as Merial
LLC, and having a place of business at 3239 Satellite Blvd., Duluth, GA
30096-4640, USA (“LICENSEE”). ACT and LICENSEE are sometimes hereinafter referred
to individually as a “party” or collective as the “parties.” 

 

W1TNESSETH

 

WHEREAS, ACT owns
or has licensed with a sublicensable interest the PATENT RIGHTS; and

 

WHEREAS, LICENSEE desires
to obtain a nonexclusive license from ACT under the PATENT RIGHTS upon the
terms and conditions hereinafter set forth; and

 

WHEREAS, ACT is
willing to grant such a license to LICENSEE upon the terms and conditions set
forth below;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein, the
parties hereto agree as follows:

 

ARTICLE 1 - DEFINITIONS

 

For the purposes
of this Agreement, the following words and phrases shall have the following
meanings:

 

1.1                              “AGREEMENT
YEAR” means the period of twelve (12) consecutive months commencing on the
EFFECTIVE DATE and each anniversary of the EFFECTIVE DATE thereafter.

 

1.2                              “AFFILIATE”
shall mean (i) any business entity fifty percent (50%) or more of which is
owned directly or indirectly by a party; (ii) any business entity which
directly or indirectly owns fifty percent (50%) or more of a party; or (iii)
any business entity under the direct or indirect control of any business entity
as described in (i) or (ii) above.

 

1.3                              “KNOW-HOW”
means all compositions of matter, techniques and data and other know-how and
technical information including inventions (whether or not patentable), improvements
and developments, practices, methods, concepts, trade secrets, documents, computer
data, computer code, apparatus, clinical and regulatory strategies, test data,
analytical and quality control data, formulation, manufacturing, patent data or
descriptions, development information, drawings, specifications, designs,
plans, proposals and technical data and manuals

 

1

 

and all other proprietary
information that is owned or controlled by ACT as of the EFFECTIVE DATE or
during the TERM of this Agreement and that relates to any of the subject matter
described in or claimed by the PATENT RIGHTS and is relevant to the FIELD OF
USE.

 

1.4                               “LICENSED
PRODUCT(S)” means (a) any product, the making, using, selling, offering for
sale, importing or exporting of which by LICENSEE (or, as applicable, its AFFILIATES),
would, but for the licenses granted to LICENSEE in Article 2 of this
Agreement (or, as applicable, by LICENSEE to its AFFILIATES), infringe a VALID
CLAIM of the PATENT RIGHTS in the country in which any such product is so made,
used, sold, offered for sale, imported or exported by LICENSEE (or, as
applicable, its AFFILIATES) or (b) any product that is made by LICENSEE (or, as
applicable, its AFFILIATES) using a process or method that would, but for the
licenses granted to LICENSEE in Article 2 of this Agreement (or, as applicable,
by LICENSEE to its AFFILIATES), infringe a VALID CLAIM of the PATENT RIGHTS in
the country in which any such process or method is used. By way of illustration
but not limitation, the parties agree that LICENSED PRODUCTS include cloned,
transgenic or chimeric birds, the progeny of such birds, and semen, ova or
embryos obtained from such birds.

 

1.5                               “LICENSED
PROCESS(ES)” means any process or method, the practice of which by LICENSEE or,
as applicable, its AFFILIATES would, but for the licenses granted to LICENSEE
in Article 2 of this Agreement (or, as applicable, by LICENSEE to its AFFILIATES),
infringe a VALID CLAIM of the PATENT RIGHTS in the country in which such process
or method is practiced.

 

1.6                               “LICENSED
SERVICES” means any service which the selling, offering for sale, importing or
exporting of which by LICENSEE (or, as applicable, its AFFILIATES), would, but for
the licenses granted to LICENSEE in Article 2 of this Agreement (or, as
applicable, by LICENSEE to its AFFILIATES), infringe a VALID CLAIM of the
PATENT RIGHTS in the country in which any such product is so sold, offered for
sale, imported or exported by LICENSEE (or, as applicable, its AFFILIATES).

 

1.7                               “NET
SALES” means the gross amounts received for the sale of LICENSED PRODUCTS and
the provision of LICENSED PROCESSES in the FIELD OF USE by LICENSEE and
LICENSEE’s AFFILIATES to third parties less, to the extent applicable, the following:

 

(a)                                 normal
and customary trade, cash, quantity and other discounts, allowances and credits
allowed;

 

(b)                                sales,
tariff duties, use and other taxes (including value added taxes), when included
in gross sales;

 

(c)                                 freight,
postage, shipping, packaging, transportation and insurance related to delivery
of LICENSED PRODUCTS and LICENSED PROCESSES;

 

2

 

(d)                             credits,
chargebacks or allowances granted for damaged, returned, rejected, or recalled
LICENSED PRODUCTS and LICENSED PROCESSES or retroactive price reductions; and

 

(e)                              an
amount equal to accounts receivable for the sale or provision of LICENSED
PRODUCTS and LICENSED PROCESSES that are not collectible by LICENSEE or, as
applicable, LICENSEE’S AFFILIATES or sublicensees, provided, however, that
LICENSEE, or, as applicable, LICENSEE’S AFFILIATES or sublicensees, shall use
commercially reasonable efforts to collect such accounts receivable.

 

Sales between or
among LICENSEE and its AFFILIATES shall be excluded from the computation of NET
SALES, but NET SALES shall include the first sales to third parties by any such
AFFILIATES. The supply of LICENSED PRODUCTS and LICENSED PROCESSES as samples,
for use in non-clinical or clinical studies, or for use in any tests or studies
reasonably necessary to comply with any applicable law, regulation or request
by a regulatory or governmental authority or as is otherwise normal and
customary in the industry shall not be included within the computation of NET
SALES.

 

Where
(i) the consideration for the sales of LICENSED PRODUCTS or the provision of
LICENSED SERVICES includes any non-cash element, or (ii) LICENSED PRODUCTS are
sold or LICENSED SERVICES are provided in any manner other than an invoiced
sale, the NET SALES applicable to any such transaction shall be deemed to be
LICENSEE’s, or as applicable LICENSEE’s AFFILIATE’S, average NET SALES for the
applicable quantity of LICENSED PRODUCTS or LICENSED SERVICES in the applicable
TERRITORY for the period in question.

 

1.8                             “PATENT
RIGHTS” means the patents and patent applications identified in Exhibit A
attached hereto, all continuations, continuations-in-part, divisionals and
foreign or domestic counterparts thereof or related thereto in the TERRITORY,
and any and all reissues, reexaminations, extensions, supplementary protection
certificates, and substitutions thereof. PATENT RIGHTS as they exist as of the
EFFECTIVE DATE are set forth on Exhibit A. The parties agree that Exhibit
A may be revised by the parties from time to time after the Effective Date
to reflect changes thereto.

 

1.9                             “FIELD
OF USE” means the development, making, using, selling, offering to sell, importing
or exporting of agricultural products that are composed of, made in or derived,
extracted or isolated from cloned, transgenic or chimeric animals of the avian
species. For purposes of this Agreement the term “agricultural products” means
food or fiber (i.e., something of nutritional
value) or products that are used for the production of food or fiber, and the rendering
of services that relate to the production of such products. Specifically
excluded from agricultural products are products intended for medicinal uses or
as part of the nutritional management of disease and products intended to be
used for veterinary or medical therapies, including, but not limited to, the
production of biopharmaceutical agents, proteins, peptides and polypeptides for
pharmaceutical, nutraceutical or other use.

 

3

 

1.10                       “TERM” has
the meaning set forth in Section 8.1.

 

1.11                       “TERRITORY”
means the world and all countries thereon.

 

1.12                       “UMASS
LICENSE” means the Exclusive License Agreement between ACT and the University,
dated April 16, 1996, as amended by the Amendment to Exclusive License Agreement
dated September 1, 1999 and the Second Amendment to Exclusive License Agreement
dated May 31, 2000.

 

1.13                       “UMASS
PATENT RIGHTS” means those PATENT RIGHTS licensed by ACT from the University
under the UMASS LICENSE.

 

1.14                    “VALID CLAIM”
means a claim of any issued and unexpired patent within the PATENT RIGHTS which
has not lapsed, become abandoned or been held revoked, invalid, or
unenforceable by a decision of a court or administrative or government
authority or agency of competent jurisdiction from which no appeal can be or
has been taken within the time allowed for such appeal, and which has not been
admitted to be invalid or unenforceable through reissue, disclaimer or
otherwise.

 

Additional terms may be
defined throughout this Agreement.

 

ARTICLE 2 - GRANT

 

2.1                             ACT
hereby grants to LICENSEE and its AFFILIATES, and LICENSEE and its AFFILIATES
accept, subject to the terms and conditions hereof, a royalty bearing,
nonexclusive license under the PATENT RIGHTS and KNOW-HOW to research, develop,
make, have made, use, sell, offer for sale, import and export LICENSED PRODUCTS
and to practice LICENSED PROCESSES in the TERRITORY in the FIELD OF USE. The
license granted to LICENSEE and its AFFILIATES in this Section 2.1 shall
not include the right to sublicense, except that LICENSEE and its AFFILIATES
shall have the right, in connection with the license to “have made,” to
sublicense the rights granted in this Section 2.1 to third parties in
connection with contracting with such third parties to provide services to
LICENSEE or to manufacture for LICENSEE LICENSED PRODUCTS for sale by LICENSEE.

 

2.2                             Within
thirty (30) business days of the EFFECTIVE DATE, ACT shall provide and transfer
to LICENSEE (i) all information and data relating to the PATENT RIGHTS and KNOW-HOW
as may be reasonably necessary to allow LICENSEE to exploit the license granted
hereunder. From time to time thereafter ACT shall provide LICENSEE, at LICENSEE’s
expense, with such information and technological assistance as LICENSEE
reasonably shall request.

 

2.3                             LICENSEE
acknowledges that a portion of the PATENT RIGHTS licensed to LICENSEE hereunder
is owned by the University and is licensed to ACT under the UMASS LICENSE. ACT,
the University and LICENSEE agree that, in the event the UMASS LICENSE expires
or is terminated for any reason pursuant to the provisions of the UMASS LICENSE
or otherwise, (i) LICENSEE will thereafter make any payments due to ACT under
this Agreement directly to the University, and (ii) promptly following such
termination, the University and

 

4

 

LICENSEE will enter into
a direct license agreement reflecting the applicable terms of this Agreement
and the UMASS LICENSE. For the avoidance of doubt, the references to “Sublicensees”
in Section 8.5 of the UMASS LICENSE shall not apply to LICENSEE and shall not
be construed as vitiating the provisions of this Section 2.3. ACT and the
University agree that the provisions of Section 2.2 of the UMASS LICENSE
providing for the automatic assignment to the University of sublicenses granted
by ACT under said Section 2.2 shall not apply to the sublicense by ACT to
LICENSEE under this Agreement, and that the provisions of this Section 2.3
shall govern in the event that the UMASS LICENSE is terminated. ACT and the
University agree that LICENSEE will not be bound by any amendment to the UMASS
LICENSE that affects LICENSEE’s rights under this Agreement in any material
respects, unless LICENSEE agrees in writing to such amendment. Neither ACT nor
the University will not make any change or addition to, or otherwise amend, the
UMASS LICENSE in any manner that materially adversely affects LICENSEE without
the prior written consent of LICENSEE (such consent not to be unreasonably
withheld or delayed).

 

2.4                               ACT
agrees and covenants not to challenge, object to, assert, sue or threaten
LICENSEE or any of its AFFILIATES, or LICENSEE’s or its AFFILIATES’ customers,
vendees, collaborators, or contractors, mediate or immediate, or any of the
foregoing entities’ officers, directors, employees, agents or representatives,
for any alleged infringement, misappropriation or other conflict with any
patents owned or controlled by ACT as of the EFFECTIVE DATE or at any time
thereafter based upon, arising out of or resulting from, either directly or
indirectly the use, sale, offer for sale, or import of any LICENSED PRODUCT
made or sold, or LICENSED SERVICE performed, by LICENSEE under the license
granted in this Agreement and upon which royalty has been paid in accordance
with the provisions of this Agreement within the FIELD OF USE. The terms of
this paragraph shall survive termination or expiration of this Agreement except
for termination of this Agreement by ACT pursuant to Section 8.2 or by
LICENSEE pursuant to Sections 8.3 or 8.4.

 

2.6                                Not
later than thirty (30) days following each new AGREEMENT YEAR, LICENSEE shall
furnish ACT with a brief written summary of the progress of its efforts during
the prior AGREEMENT YEAR to develop and commercialize LICENSED PRODUCTS and
LICENSED PROCESSES in the FIELD OF USE. Any summary report prepared and
furnished to ACT pursuant to this Section 2.6 shall be deemed
Confidential Information subject to the provisions of Article 9 of this
Agreement.

 

ARTICLE 3 -
CONSIDERATION

 

3.1                               Initial
Payment. In partial consideration of the license granted in Article 2
of this Agreement, LICENSEE agrees to pay to ACT an initial license fee of One
Hundred and Fifty Thousand Dollars ($150,000.00) (the “License Fee”). One
hundred percent (100%) of the License Fee shall be deemed earned and shall be
paid by LICENSEE to ACT within fifteen (15) days after the EFFECTIVE DATE. The
License Fee is not refundable and is not creditable against other payments due
to ACT under this Agreement.

 

5

 

3.2                                 Royalties.

 

(a)                               In
partial consideration of the license granted in Article 2 of this Agreement,
LICENSEE agrees to pay to ACT in each AGREEMENT YEAR during the TERM and on a
country-by-country basis a royalty equal to 3% of NET SALES until all royalty
payments in that AGREEMENT YEAR total Three Million Dollars ($3,000,000.00),
and thereafter for the remainder of that AGREEMENT YEAR the royalty rate shall
be reduced to 1% of NET SALES. Calculation of royalties under this Section
3.2 shall be subject to Section 3.6 below. Any minimum annual
royalties paid pursuant to Section 3.3 below shall be credited fully
against any earned royalties due under this Section 3.2.

 

(b)                              For
the avoidance of doubt, LICENSEE shall be required to pay only a single payment
based upon the NET SALES of any LICENSED PRODUCT or LICENSED PROCESS,
regardless of whether such LICENSED PRODUCT or LICENSED SERVICE is covered by
more than one patent within the PATENT RIGHTS.

 

(c)                               For
the avoidance of doubt, the obligation of LICENSEE to pay royalties on NET
SALES shall terminate on a country-by-country basis concurrently with the
expiration or termination of the last applicable VALID CLAIM within the PATENT
RIGHTS in the country in the TERRITORY in which such LICENSED PRODUCT or
LICENSED PROCESS is sold or provided.

 

3.3                                 Minimum
Annual Royalties.

 

(a)                               Commencing
with the third full AGREEMENT YEAR of this Agreement (i.e.,
in calendar year 2005, anniversary date of the EFFECTIVE DATE), LICENSEE shall
during the TERM of this Agreement pay minimum annual royalty payments to ACT as
follows: LICENSEE shall pay ACT a minimum annual royalty payment of TWENTY-FIVE
THOUSAND DOLLARS ($25,000.00), increasing by FIFTY THOUSAND DOLLARS ($50,000.00)
each AGREEMENT YEAR thereafter until such time as the minimum annual royalty is
TWO HUNDRED FIFTY HUNDRED THOUSAND DOLLARS ($250,000.00) at which time the
minimum annual royalty payment shall continue to be TWO HUNDRED FIFTY HUNDRED
THOUSAND DOLLARS $250,000.00 for the remaining TERM of the Agreement.

 

(b)                              If
applicable, the minimum annual royalty payments set forth in Section 3.3(a)
shall be payable within forty-five (45) days after the end of each applicable
AGREEMENT YEAR. If the actual earned royalty payments by LICENSEE to ACT in any
AGREEMENT YEAR are less than the minimum annual royalty, LICENSEE shall have
the right to pay ACT the

 

6

 

difference between the
actual earned royalty payment and the minimum annual royalty in full
satisfaction of its obligations under this Section 3.3. Waiver of any
payment of the minimum annual royalty by ACT shall not be construed as a waiver
of any subsequent payment of the minimum annual royalty.

 

3.4.                              All
payments due under Section 3.2 and not in dispute shall be paid in
quarterly installments and be paid within sixty (60) days following the end of
each calendar quarter of an AGREEMENT YEAR. Payments made within this sixty
(60) day period shall be deemed timely.

 

3.5                                 All
payments due under this Agreement shall be paid to ACT and shall be made in United
States currency. Conversion of foreign currency to U.S. dollars shall be made
at the conversion rate reported in The Wall Street Journal on the last
working day of the calendar quarter to which the payment relates. Any
withholding tax required to be withheld by LICENSEE on royalty payments under
the laws of any country in the TERRITORY will be timely paid by LICENSEE to the
appropriate governmental authority, and LICENSEE will furnish ACT with proof of
payment of such tax. Any such tax actually withheld may be deducted from
royalty payments due to ACT under this Agreement.

 

3.6                                 If
in LICENSEE’s reasonable business judgment it is necessary or desirable to seek
a license or immunity from suit from any third party in order for LICENSEE to
exercise or use the rights granted to LICENSEE hereunder, or LICENSEE is
otherwise required to pay to any third party any fee, royalty or other payment
in connection with the making, using, selling, offering to sell, importing or
exporting of LICENSED PRODUCTS or LICENSED PROCESSES, LICENSEE shall have the
right to set off any amounts paid to such third party, including any fee,
royalty or other payment, against payment of up to fifty percent (50%) of the payments
otherwise payable to ACT hereunder in the same royalty period. Such right of
offset shall be in addition to, and not in lieu of, any other rights or claims
LICENSEE may have under this Agreement.

 

3.7                                 To
the extent that payments due under this Agreement and not in dispute, including
payments under this Article 3, are not paid within the specified time
period, or are underpaid, such outstanding sums shall accrue interest from the
date due, such interest to be computed for such unpaid amount on the last day
of each calendar quarter (accruing quarterly) at the ninety (90) day U.S.
Treasury Bill rate published in the Wall Street Journal for the last day
of the calendar quarter, and if no such U.S. Treasury Bill rate is published on
such date, then the  next closest short term U.S. Treasury Bill rate
published in the Wall Street Journal for such date.

 

3.8                                 If
at any time legal restrictions prevent the prompt remittance of part or all of
any payments owed by LICENSEE to ACT hereunder with respect to any country in
the TERRITORY, payment shall be made through any lawful means or methods that
may be available, and as LICENSEE shall reasonably determine is appropriate.

 

7

 

ARTICLE 4 - REPORTS AND RECORDS

 

4.1                                 Following
the first commercial sale of a LICENSED PRODUCT or LICENSED PROCESS, LICENSEE
shall deliver to ACT a report that sets forth for the applicable calendar quarter
the following information:

 

(a)                                total
gross sales of all LICENSED PRODUCTS and LICENSED PROCESSES sold in the
TERRITORY during such quarter;

 

(b)                               deductions
applicable to determining NET SALES;

 

(c)                                total
NET SALES during such quarter;

 

(d)                               the
total of payments due pursuant to Article 4.

 

Such report shall accompany each royalty payment due pursuant to Article
3. If no payments are due for any reporting period, the report shall so
state.

 

4.2                                 LICENSEE
shall keep accurate records for a period of at least three (3) years for each
reporting period during the TERM of this Agreement in which costs or expenses
are incurred, or NET SALES of LICENSED PRODUCTS or LICENSED PROCESSES occur, showing
costs, expenses and NET SALES in sufficient detail to enable the reports provided
under Section 5.1 to be verified. ACT shall have the right, for a period
of one (1) year after receiving any report to appoint an independent certified
public accounting firm to inspect the relevant records of LICENSEE and/or its
AFFILIATES to verify such report. LICENSEE shall make its records available for
inspection by such independent certified public accounting firm during regular
business hours at such place or places where such records are customarily kept,
upon reasonable notice, solely to verify the accuracy of the reports and
payments. Such inspection right shall not be exercised more than once in any
calendar year. Any examination by an independent certified public accounting
firm under this Section 4.2 is to be made at the expense of ACT, except
that if the results of the audit reveal that LICENSEE has underpaid ACT by ten
percent (10%) or more in any calendar year, then the audit fees shall be paid
by LICENSEE. Any such discrepancies shall be promptly corrected by payment by
LICENSEE to ACT. The independent certified public accounting firm shall execute
a confidentiality agreement reasonably acceptable to LICENSEE prior to any such
audit and including obligations limiting the information to be provided to ACT
to the numerical summary of expenses incurred and payments due and paid and
prohibiting any disclosure to any third party.

 

ARTICLE 5 - PATENT
PROSECUTION

 

5.1                                 ACT
shall use reasonable commercial efforts to prepare, file, and prosecute all
PATENT RIGHTS, including conducting any interferences, reissues,
reexaminations, oppositions, nullity proceedings and any similar proceedings.
All costs and expenses associated with the preparation, filing, and prosecution
of all PATENT RIGHTS shall be the responsibility of ACT. ACT shall advise
LICENSEE within ten (10) days of receiving any substantial action or
development in the preparation, prosecution and maintenance of any PATENT
RIGHTS, including those involving in which countries to initiate or continue
prosecution (including

 

8

 

validation), the
question of the scope of, the issuance of, the rejection of, an interference
involving, or an opposition involving any PATENT RIGHTS. Notwithstanding
anything in this Agreement to the contrary, ACT shall pay, unless otherwise
agreed to in writing by LICENSEE, all maintenance, government and other fees in
each country in the TERRITORY that are required to maintain all issued patents
within the PATENT RIGHTS; and shall submit evidence to LICENSEE upon request that
such fees have been timely paid. In the event ACT determines to abandon any of
the PATENT RIGHTS it shall inform LICENSEE at least sixty (60) days prior to
any relevant filing deadline or abandonment and LICENSEE shall have the option
to undertake the prosecution and maintenance of such PATENT RIGHTS, in which
event, ACT shall assign such rights to LICENSEE.

 

5.2                                 ACT
shall provide LICENSEE with a report, no less frequently than once per year (or
as otherwise mutually agreed by the Parties), listing all patents and patent
applications within the PATENT RIGHTS, identifying them by country and patent
or application number, and briefly describing the status thereof. In addition,
ACT shall notify LICENSEE of the issuance of any patent within the PATENT
RIGHTS within 10 business days of the issuance of such patent.

 

5.3                                 ACT
shall not settle or consent to any judgment or decision in any reexamination,
interference, opposition or similar proceeding which would have any adverse
affect on the scope of any PATENT RIGHTS, impose a financial obligation on
LICENSEE, render invalid or unenforceable any of the PATENT RIGHTS or limit and
of LICENSEE’S rights under this Agreement without the prior written consent of
LICENSEE (such consent not to be unreasonably withheld or delayed).

 

ARTICLE 6 - PROSECUTION OF INFRINGERS AND DEFENSE OF
PATENT RIGHTS

 

6.1                                 The
parties agree to promptly notify each other in writing of any actual or suspected
infringement by a third party of PATENT RIGHTS or of any claim of invalidity,
unenforceability, or non-infringement of the PATENT RIGHTS.

 

6.2                                 ACT
shall have the first right, but not the obligation, to seek to abate any actual
or suspected infringement of the PATENT RIGHTS in the TERRITORY, or to file
suit against any such actually or allegedly infringing third party. If ACT does
not, within one hundred twenty (120) days of a notice under Section 6.1,
take steps to abate the actual or suspected infringement or file suit to
enforce the PATENT RIGHTS against such actually or allegedly infringing third
party, LICENSEE shall have the right (but not the obligation) to take such
action. The non-controlling party shall cooperate with the party controlling
any such action (as may be reasonably requested by the controlling party),
including by being joined as a party, and the party controlling any such action
shall keep the other party updated with respect to any such action, including
providing copies of all documents received or filed in connection with any such
action. LICENSEE shall have the right to credit as incurred any costs and
expenses incurred in connection with any such action against royalties and/or
other payments payable to ACT under this Agreement for the year in which such
expenses are incurred; provided, however, that such offset shall not exceed
fifty percent (50%) of such royalties and/or other payments due to ACT in the
same period. LICENSEE’s rights under this Section 6.2 shall be subject to the
rights of the University under the UMASS LICENSE.

 

9

 

6.3                                 Subject
to the rights of the University under the UMASS LICENSE, the party controlling
any such action may settle or consent to an adverse judgment in any action
described in Section 6.2 without obtaining consent from the non- controlling
party, unless any such settlement or consent judgment would either
impose a financial obligation upon the non-controlling party, limit the scope
of or invalidate or render unenforceable any PATENT RIGHTS or otherwise limit
the rights of the non-controlling party under this Agreement, in which event the
controlling party shall obtain the non-controlling party’s prior written
consent (such consent not to be unreasonably withheld or delayed).

 

6.4                                 Subject
to the rights of the University under the UMASS LICENSE, unless otherwise
mutually agreed by the parties, and subject to the respective indemnity
obligations of the parties set forth in this Agreement, all monies recovered
upon the final judgment or settlement of any such action, shall be used first,
to reimburse each of ACT and LICENSEE, on a pro
rata basis for its out-of-pocket expenses relating to the action,
and second, any remaining balance shall belong to the party controlling such
action.

 

6.5                                 In
the event a third party claims that the exercise by LICENSEE of its rights in
the PATENT RIGHTS or KNOW-HOW infringe or otherwise conflict with the
intellectual property rights of a third party, ACT shall have the first right,
but not the obligation, to defend such claims asserted against LICENSEE,
including any judicial or administrative proceedings relating to such claims.
ACT shall give prompt notice to LICENSEE of any such claims. LICENSEE shall
provide, at ACT’s expense, such reasonable assistance and cooperation to ACT as
may be reasonably necessary to successfully defend any such claim. If ACT does
not answer such claim within a reasonable time after such claim is made,
LICENSEE shall have the right (but not the obligation) to take such action at
its own expense. The non-controlling party shall cooperate with the party
controlling any such action (as may be reasonably requested by the controlling
party), including by being joined as a party, and the party controlling any
such action shall keep the other party updated with respect to any such action,
including providing copies of all documents received or filed in connection
with any such action. LICENSEE shall have the right to credit as incurred any
costs and expenses incurred in connection with its defense of any such action
against royalties and/or other payments payable to ACT under this Agreement for
the year in which such expenses are incurred; provided, however, that such
offset shall not exceed fifty percent (50%) of such royalties and/or other
payments due to ACT in the same period. LICENSEE’s rights under this Section
6.2 shall be subject to the rights of the University under the UMASS LICENSE.
The rights provided in this Section 6.5 shall be in addition to any other rights
of LICENSEE under this Agreement, including any right of indemnification.

 

ARTICLE 7 - INDEMNIFICATION; LIMITATION OF LIABILITY;
INSURANCE

 

7.1                                 LICENSEE
shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold harmless ACT and the University and their trustees, directors,
officers, employees and AFFILIATES against all third party liabilities of any
kind whatsoever, including reasonable attorneys’ fees, arising out of the death
of or injury to any person or persons or out of any damage to property
resulting from the development, manufacture, sale, use, performance, or
advertisement of the LICENSED PRODUCTS and LICENSED PROCESSES by

 

10

 

LICENSEE or its
AFFILIATES or from a breach by LICENSEE of any representation or warranty of
LICENSEE in Section 11.2 of this Agreement.

 

7.2                                 ACT
shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold harmless LICENSEE and its AFFILIATES and their respective directors,
officers, employees, agents against all third party liabilities of any kind
whatsoever, including and reasonable attorneys’ fees, arising from any breach
by ACT or the University of any representation, warranty or covenant of ACT or
the University hereunder.

 

7.3                                 Any
indemnification obligations set forth in this Article 7 shall be subject
to the following conditions: (i) the indemnified party shall notify the
indemnifying party in writing promptly upon learning of any claim or suit for
which indemnification is sought; (ii) the indemnifying party shall have control
of the defense or settlement, provided  that the indemnified party
shall have the right (but not the obligation) to participate in such defense or
settlement with counsel at its selection and at its sole expense; and (iii) the
indemnified party shall reasonably cooperate with the defense, at the
indemnifying party’s expense.

 

7.4                                 IN
NO EVENT SHALL EITHER PARTY, ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES OR
AFFILIATES BE LIABLE FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY
KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS,
REGARDLESS OF WHETHER A PARTY SHALL BE ADVISED, SHALL HAVE OTHER REASON TO
KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED,
HOWEVER, THAT THIS SECTION 7.4 SHALL NOT IN ANY WAY LIMIT THE INDEMNIFYING
PARTY’S DUTY TO INDEMNIFY THE INDEMNIFIED PARTY FOR CLAIMS BROUGHT BY THIRD PARTIES
AS SET FORTH IN SECTIONS 7.1 AND 7.2 OF THIS AGREEMENT (INCLUDING ANY INDIRECT,
INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED OR INCURRED BY ANY THIRD PARTIES WHO
ARE, IN TURN, SEEKING THE SAME FROM THE INDEMNIFIED PARTY, WHICH SHALL BE
COVERED BY THE INDEMNITY SET FORTH IN SECTION 7.1 AND 7.2, AS APPLICABLE) (AS
OPPOSED TO ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED OR INCURRED
BY A PARTY DIRECTLY).

 

7.5                                 Each
party agrees to maintain insurance or self-insurance that is reasonably adequate
to fulfill any potential obligation to the indemnified parties. Each party
shall continue to maintain such insurance or self-insurance during the term of
this Agreement and after the expiration or termination of this Agreement for a
period of five (5) years. Each party shall provide to the other party, upon
reasonable request, proof of such insurance.

 

ARTICLE 8 - TERMINATION

 

8.1                                 The
term of this Agreement (“TERM”) shall commence on the EFFECTIVE DATE and
continue until the expiration of the last VALID CLAIM within the PATENT RIGHTS
to expire, unless sooner terminated as provided in this Article 8.

 

11

 

8.2                                 If
either party commits a material breach of this Agreement (including any failure
to make any payment due under this Agreement), the non-breaching party shall
have the right to terminate this Agreement effective on ninety (90) days prior
written notice to the party in breach, unless such breach is cured prior to the
expiration of such ninety (90) day period.

 

8.3                                 LICENSEE
shall have the right to terminate this Agreement at any time on six (6) months
prior notice to ACT, and upon payment of all amounts due ACT through the
effective date of the termination.

 

8.4                                 LICENSEE
shall have the right to terminate this Agreement effective on the third anniversary
date of the EFFECTIVE DATE by providing notice to ACT at least thirty (30) days
in advance of such third anniversary date.

 

8.5.                              Notwithstanding
anything herein to the contrary, in the event that this Agreement is terminated
by ACT pursuant to Section 8.2 or by LICENSEE pursuant to Sections
8.3 or 8.4, LICENSEE and its AFFILIATES shall retain a license to rights
granted in Article 2 to the extent reasonably necessary to sell any
LICENSED PRODUCTS existing or under production and to perform LICENSED
PROCESSES related to such LICENSED PRODUCTS or that are in process, subject to
the terms of this Agreement (including without limitation the obligation to pay
royalties under Article 3), provided that LICENSEE shall complete and
sell all such work-in-progress and inventory within six (6) months after the
effective date of termination.

 

8.6                                 Upon
the expiration of the TERM of this Agreement LICENSEE and its AFFILIATES shall
have a fully paid-up, non-exclusive, irrevocable, royalty free license under
the rights granted in Article 2.

 

8.7                                 Nothing
herein shall be construed to release either party from any obligation that
accrued prior to expiration or any termination of this Agreement. The following
provisions shall survive any termination of this Agreement:
Articles/Sections 1, 2.5, 7, 8.5, 8.6, 8.7, 9, 10, 11, 12.2, 12.3, 12.5, 12.6,
12.7, 12.10 and 12.11, and any other provision which by its nature is
intended to survive any such termination.

 

ARTICLE 9 - CONFIDENTIALITY AND NON-DISCLOSURE

 

9.1                                 Confidential
Information; Non-Disclosure. “Confidential Information” shall mean any
technical, business, financial, customer or other information disclosed by one
party to the other party pursuant to this Agreement and is which marked as “Confidential”
or “Proprietary,” or which is disclosed orally or visually and confirmed as
confidential or proprietary in writing within ten (10) business days of such
oral disclosure. Such information may be disclosed in oral, visual or written
form (including magnetic, optical or other media). Each party’s Confidential
Information includes, without limitation, the respective party’s business plans
and business practices, scientific knowledge, research and development or
know-how, processes, inventions, techniques, formulae, products and product
plans, business operations, customer requirements, designs, sketches,
photographs, drawings, specifications, reports, studies, findings, data, plans
or other records, biological materials, software, margins, payment terms and
sales forecasts, volumes and activities, designs, computer code, technical
information, costs,

 

12

 

pricing,
financing, business opportunities, personnel, and information of ACT or
LICENSEE relating to the, PATENT RIGHTS, KNOW-HOW, LICENSED PRODUCTS and
LICENSED SERVICES. Except to the extent expressly authorized by this Agreement
or by other prior written consent by the disclosing party, each party shall
during the term of this Agreement and for a period of seven (7) years
thereafter: (i) treat as confidential all Confidential Information of the
disclosing party; (ii) not use such Confidential Information except as
authorized herein or otherwise authorized in writing, (iii) implement
reasonable procedures to prohibit the disclosure, unauthorized duplication,
misuse or removal of the disclosing party’s Confidential Information; (iv)
except as set forth in (v) below, not disclose such Confidential Information to
any third party, and (v) only disclose the Confidential Information to those of
its employees, AFFILIATES, sublicensees and third party contractors in
accordance with Sections 2.1 and 2.2 who have need to know such Confidential
Information. Without limiting foregoing, each of the parties shall protect the
Confidential Information using at least the same procedures and degree of care
that it uses to prevent the disclosure of its shall own confidential information
of like importance, but in no event less than reasonable care.

 

9.2                                 Exceptions.
Neither party shall have any obligation or liability to the other with regard
to any Confidential Information of the other: (i) that was publicly known at
the time it was disclosed or becomes publicly known through no fault, action,
or inaction of the receiving party; (ii) was known to the receiving party,
without restriction, at the time of disclosure; (iii) is disclosed with the
prior written approval of the disclosing party; (iv) was independently developed
by the receiving party without any use of the Confidential Information; (v) is
disclosed pursuant to an order or requirement of a court, administrative
agency, or other governmental body, provided that the receiving party shall
provide prompt advanced notice thereof to enable the disclosing party to seek a
protective order or otherwise take steps necessary to maintain the confidentiality
of the Confidential Information; (vi) is disclosed in connection with securing regulatory
approval or otherwise as may be necessary to comply with any regulation or
request of any governmental or other regulatory authority, provided that the
disclosing party shall take all reasonable steps to limit disclosure of the
Confidential Information and to otherwise maintain the confidentiality of the
Confidential Information; or (vii) that is provided to the recipient by a third
party having no obligation to keep the information secret.

 

9.3                                 Injunctive
Relief. ACT and LICENSEE acknowledge and agree that any breach of the
confidentiality obligations imposed by this Article 9 will constitute
immediate and irreparable harm to the party disclosing the Confidential
Information and/or its permitted successors and assigns, which cannot
adequately and fully be compensated by money damages and will warrant, in
addition to all other rights and remedies afforded by law, injunctive relief, specific
performance, and/or other equitable relief. The disclosing party’s rights and
remedies hereunder are cumulative and not exclusive.

 

9.4                                 Termination.
Upon termination (but not expiration) of this Agreement, except for termination
of this Agreement by ACT pursuant to Section 8.2 or by LICENSEE pursuant
to Sections 8.3 or 8.4, and upon the request of the disclosing party,
the receiving party shall promptly return to the disclosing party, at its
request, all copies of Confidential Information received from such party, and
shall return or destroy, and document the destruction of, all summaries,
abstracts, extracts, or other documents which contain any Confidential
Information

 

13

 

of the other party
in any form, except that LICENSEE shall be permitted to retain a copy (or
copies, as necessary) of such Confidential Information for archival purposes or
as required by any law or regulation.

 

ARTICLE 10 - PAYMENTS, NOTICES, AND OTHER
COMMUNICATIONS

 

Any payment, notice or other communication pursuant to this Agreement
shall be in writing and sent by certified first class mail, postage prepaid,
return receipt requested, or by nationally recognized overnight carrier
addressed to the parties at the following addresses or such other addresses as
such party furnishes to the other party in accordance with this paragraph. Such
notices, payments, or other communications shall be effective upon receipt.

 

	
  In the case of
  ACT:

  	
   

  
	
   

  	
   

  
	
  Advanced Cell
  Technology, Inc.

  	
   

  
	
  One Innovation Drive

  	
   

  
	
  Worcester, MA 01605

  	
   

  
	
  USA

  	
   

  
	
  Attention:

  	
  Michael D. West, Ph.D., President

  
	
   

  	
   

  
	
  In the case of
  LICENSEE:

  	
   

  
	
   

  	
   

  
	
  Merial LLC

  	
   

  
	
  3239 Satellite Blvd.

  	
   

  
	
  Duluth, GA 30096-4640

  	
   

  
	
  USA

  	
   

  
	
  Attention:

  	
  Legal Department/W. Joseph Thesing, Jr.

  
	
   

  	
  General Counsel, North America

  
				

 

ARTICLE 11 -
REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS

 

11.1                           ACT
represents, warrants and covenants that:

 

(a)                                ACT
is a corporation duly organized, validly existing and in good standing under
the laws of Delaware and has full corporate power and authority to enter into
this Agreement;

 

(b)                               ACT
is the sole and exclusive owner of the entire right, title and interest in and
to the PATENT RIGHTS and KNOW-HOW, free and clear of any liens or other
encumbrances; and, with respect to UMASS PATENT RIGHTS, ACT possess all such
rights as are necessary to grant to LICENSEE the rights and
licenses to the such PATENT RIGHTS and KNOW-HOW granted hereunder;

 

(c)                                this
Agreement has been validly executed and constitutes a binding and legal
obligation of ACT, enforceable in accordance with its terms, and that

 

14

 

the execution and
performance of this Agreement by ACT will not violate, contravene or conflict
with any other agreement to which ACT is a party or by which it is bound or
with any law, rule or regulation applicable to ACT;

 

(d)                               ACT
has not, prior to the EFFECTIVE DATE, entered into and shall not, following the
EFFECTIVE DATE, enter into any agreement and has not granted any now existing,
or agreed to grant any future, license, right or privilege which agreement,
license, right or privilege conflicts in any way with this Agreement or ACT’s
obligations hereunder;

 

(e)                                the
claims of any and all issued patents included in the PATENT RIGHTS are valid
and enforceable;

 

(f)                                  except
as set forth in Exhibit B attached hereto, no claims of infringement,
misappropriation or other conflict with any intellectual property rights or
other rights owned or controlled by any third party have been made or
threatened with respect to the PATENT RIGHTS or KNOW-HOW;

 

(g)                               ACT
is not aware of any infringement or misappropriation of the PATENT RIGHTS or
KNOW-HOW by any third party;

 

(h)                               to
ACT’s knowledge, the making, using, selling, offering for sale, importing and
exporting of LICENSED PRODUCTS or LICENSED SERVICES in the TERRITORY in the
FIELD OF USE does not and shall not infringe or otherwise conflict with any
intellectual property rights or other rights of any third party; and

 

(i)                                   ACT
has provided LICENSEE with a complete, true and correct copy of the UMASS
LICENSE.

 

11.2                           LICENSEE
represents and warrants that it has full corporate power and authority to enter
into this Agreement, that this Agreement constitutes the binding legal
obligation of LICENSEE, enforceable in accordance with its terms, and that
execution and performance of this Agreement by LICENSEE will not violate,
contravene or conflict with any other agreement to which LICENSEE is a party or
by which it is bound or with any law, rule or regulation applicable to LICENSEE.

 

11.3                           EXCEPT
AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER ACT NOR LICENSEE,
OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AND AFFILIATES, MAKES ANY
REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANT ABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.

 

15

 

ARTICLE 12 -
MISCELLANEOUS PROVISIONS

 

12.1                           LICENSEE shall comply with all local, state,
federal and international laws and regulations relating to the development,
manufacture, use, provision, and sale of LICENSED PRODUCTS and LICENSED
PROCESSES. Without limitations the generality of the foregoing, LICENSEE agrees
to comply with the following:

 

(a)                                LICENSEE shall obtain all necessary approvals
from the USDA, FDA and any similar governmental authorities of any foreign
jurisdiction in the Territory in which LICENSEE intends to make, use, or sell
LICENSED PRODUCTS or to perform LICENSED PROCESSES.

 

(b)                               LICENSEE shall comply fully with any and all
applicable local, state, federal and international laws and regulations relating
to the LICENSED PRODUCTS and LICENSED SERVICES, and the PATENT RIGHTS, in the
Territory, including without limitation all export or import regulations and
rules now in effect or as may be issued from time to time by any governmental
authority which has jurisdiction relating to the export of LICENSED PRODUCTS or
LICENSED SERVICES and any technology relating thereto. LICENSEE hereby gives
written assurance that it will comply with all such import or export laws and
regulations (including without limitation all Export Administration Regulations
of the United States Department of Commerce), that it bears sole responsibility
for any violation of such laws and regulations, and that it will indemnify,
defend, and hold ACT and the University harmless (in accordance with Article 8)
for the consequences of any such violation.

 

(c)                                To the extent that any invention claimed in
the PATENT RIGHTS has been partially funded by the United States Government,
and only to the extent required by applicable laws and regulations, LICENSEE
agrees that any LICENSED PRODUCTS used or sold in the United States will be manufactured
substantially in the United States or its territories. Current law provides
that if domestic manufacturer is not commercially feasible under the circumstances,
ACT and/or the University may seek a waiver of this requirement from the
relevant federal agency on behalf of LICENSEE and, upon LICENSEE’S request,
shall cooperate with LICENSEE in seeking such a waiver.

 

12.2                           LICENSEE shall not create or incur or cause
to be incurred or to exist any lien, encumbrance, pledge, charge, restriction
or other security interest of any kind upon the PATENT RIGHTS without the prior
written consent of ACT and the University (which consent shall be granted or
denied in ACT’s or the University’s, as applicable, sole discretion).

 

12.3                           Neither ACT nor Merial shall originate any
publicity, news release or other public announcement, written or oral, (“Announcements”)
relating to this Agreement or the existence of an arrangement between the
parties, without the prior written approval of the other party, which

 

16

 

approval shall not be
unreasonably withheld or delayed, except as otherwise required by law or
regulation. Any references to the University in such Announcements shall be
subject to the approval of the University. The foregoing notwithstanding, ACT
and LICENSEE shall have the right to make such Announcements without the
consent of the other party or the University, as applicable, in any prospectus,
offering memorandum, or other document or filing required by applicable
securities laws or other applicable law or regulation, provided that such party
shall have given the other party and the University, as applicable, at least ten
(10) days prior written notice of the proposed text for the purpose of giving
the other party, as applicable, the opportunity to comment on such text.

 

12.4                           Nothing herein shall be deemed to constitute
either party as the agent or representative of the party, or both parties as
joint venturers or partners for any purpose. Each party shall be an independent
contractor, not an employee or partner of the other party, and the manner in
which each party renders its services under this Agreement shall be within its
sole discretion. Neither party shall be responsible for the acts or omissions
of the other party, nor shall either party have authority to speak for,
represent or obligate the other party in any way without prior written
authority from the other party.

 

12.5                           To the extent commercially feasible, and
consistent with prevailing business practices and applicable law, all LICENSED
PRODUCTS sold pursuant to this Agreement will be marked with the number of each
issued patent that applies to such LICENSE PRODUCTS.

 

12.6                           This Agreement shall be construed, governed,
interpreted and applied in accordance with the laws of the Commonwealth of
Massachusetts, U.S.A., without regard to the principles of conflicts of law
thereof, except that questions affecting the construction and effect of any
patents included in the PATENT RIGHTS shall be determined by the law of the
country in which the patents were granted.

 

12.7                           This Agreement shall be binding upon and
inure to the benefit of the parties and their respective permitted successors
and assigns.

 

12.8                           The parties hereto acknowledge that this
Agreement sets forth the entire Agreement and understanding of the parties
hereto as to the subject matter hereof, and shall not be subject to any change
or modification except by the execution of a written instrument subscribed to
by the parties.

 

12.9                           The provisions of this Agreement are
severable, and in the event that any provisions of this Agreement shall be
determined to be invalid or unenforceable under any controlling body of the
law, such invalidity or unenforceability shall not in any way affect the validity
or enforceability of the remaining provisions hereof.

 

12.10                     The failure of either party to assert a right
hereunder or to insist upon compliance with any term or condition of this
Agreement shall not constitute a waiver of that right or excuse a similar
subsequent failure to perform any such term or condition by the other party.

 

17

 

12.11                     Except as set forth in Section 2.3:
this Agreement may not be assigned by LICENSEE without the prior written
consent of ACT, which consent shall be granted or denied in ACT’s sole
discretion; and this Agreement may not be assigned by ACT without the prior written
consent of LICENSEE, which consent shall not be unreasonably withheld or
delayed; provided, however, either party may assign this Agreement to an
AFFILIATE or to a successor in connection with the merger, consolidation, or
sale of all or substantially all of its assets or that portion of its business
to which this Agreement relates.

 

12.12                     This Agreement has been prepared jointly and
no rule of strict construction shall be applied against either party. In this
Agreement, the singular shall include the plural and vice versa and the word “including”
shall be deemed to be followed by the phrase “without limitation.” The section
headings contained in this Agreement are inserted for convenience only and
shall not affect in any way the meaning or interpretation of this Agreement.

 

12.13                     This Agreement may be executed in
counterparts, each of which together shall constitute one and the same
Agreement.

 

12.14                     All rights and licenses granted under or
pursuant to this Agreement are, and shall otherwise be deemed to be, for
purposes of Paragraph 365(n) of the U.S. Bankruptcy Code, licenses of rights to
“intellectual property” as defined under Paragraph 101(35A) of the U.S. Bankruptcy
Code. The parties agree that LICENSEE, as a licensee of such rights under this Agreement,
shall retain and may fully exercise all of its rights and elections under the
U.S. Bankruptcy Code. The parties further agree that, in the event of the
commencement of a bankruptcy proceeding by or against ACT including under the
U.S. Bankruptcy Code, LICENSEE shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any such intellectual property and all
embodiments of such intellectual property, including the PATENT RIGHTS and
KNOW-HOW, and the same, if not already in LICENSEE’s possession, shall be promptly
delivered to LICENSEE upon any such commencement of a bankruptcy proceeding
upon written request therefore by LICENSEE.

 

 

*  *  *  *  *

 

18

 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement the day and year
first set forth above.

 

 

	
  ADVANCED CELL TECHNOLOGY,
  INC.

  
	
   

  
	
   

  
	
  By:

  	
    /s/ Michael D. West

  	
   

  
	
  Printed Name: Michael D.
  West, Ph.D.

  
	
  Title: President &
  Chief Executive Officer

  
	
   

  
	
  MERIAL LIMITED

  
	
   

  
	
   

  
	
  By:

  	
    /s/ Horace D.
  Nalle

  	
   

  
	
  Printed Name: Horace D.
  Nalle

  
	
  Title: Company Secretary

  
	
   

  
	
   

  
	
  MERIAL LEGAL

  
	
  /s/ [ILLEGIBLE]

  	
   

  
					

 

AGREEMENT

 

In
consideration of sublicense income received by the University from ACT pursuant
to the UMASS LICENSE, the University hereby agrees to be bound by the applicable
provisions of Section 2.3 hereof.

 

	
  THE UNIVERSITY OF
  MASSACHUSETTS

  
	
   

  
	
  By:

  	
    /s/ William S. Rosenberg

  	
   

  
	
  Printed Name:

  	
  William S. Rosenberg

  
	
  Title: 

  	
  Executive Director

  
	
   

  	
  Office of Commercial Ventures

  
	
   

  	
  and Intellectual Property

  
				

 

19

 

November 15, 2002

 

Advanced Cell Technology, Inc.

One Innovation Drive

Worcester, MA 01605

 

Merial Limited

c/o Merial LLC

3239 Satellite Blvd.

Duluth, GA 30096-4640

 

Re:                               Exclusive License Option & Right of First
Negotiation; Discounted Initial Payment under Non-Exclusive License Agreement
dated November 8, 2002; and Services Agreement.

 

This Letter Agreement is to memorialize the agreement between Advanced
Cell Technology, Inc., a Delaware corporation with a place of business at One
Innovation Drive, Worcester, Massachusetts 01605 (“AGT”), and Merial Limited, a
company limited by shares registered in England and Wales (registered number
3332751) with a registered office at PO Box 327, Sandringham House, Sandringham
Avenue, Harlow Business Park, Harlow, Essex CM19 5TG, England, domesticated in
Delaware, USA as Merial LLC, and having a place of business at 3239 Satellite
Boulevard, Duluth, Georgia 30096-4640, USA (“Merial”), with respect to the
matters discussed herein.

 

1. Exclusive License Option – Nutraceutical
Field. (a) ACT hereby grants to Merial a first option to
obtain an exclusive, worldwide license to the patent rights identified in Exhibit
A attached hereto (the “ACT Patent Rights”) for use in connection with the
development, use and sale of products in the Nutraceutical Field (the “License
Option”) as follows: ACT shall promptly notify Merial in writing of its
intention to enter into a license for the use of the ACT Patent Rights in the
Nutraceutical Field, and ACT’s notice to Merial shall describe in reasonable
detail the terms of the proposed terms for such license. Merial may exercise
the License Option upon written notice to ACT within ninety (90) days after
Merial’s receipt of ACT’s notice described above. In the event Merial exercises
the License Option, ACT and Merial shall attempt to enter into a definitive
license agreement by negotiating in good faith to reach a license agreement
containing commercially reasonable terms and pricing consistent with relevant
industry standards. If the parties are unable to reach agreement within ninety
(90) days after the date upon which Merial exercised the License Option (the “Negotiation
Period”), then ACT will be free to offer such rights to third parties; provided, however, that for a
period of one (1) year after the Negotiation Period, ACT may only offer such
rights to third parties on terms and pricing which in the aggregate are no more
favorable than those last offered to Merial, unless the more favorable terms
and pricing have first been offered in writing to Merial and either (i) Merial
has declined in writing to accept to accept such terms and pricing or (ii)
Merial has not responded after a period of thirty (30) days from the date of
such offer. Notwithstanding anything to the contrary herein, in the event that
ACT receives at any time prior to the expiration of the Negotiation Period an
offer, proposal, or bid from a third party for a license for the use of the ACT
Patent Rights in the Nutraceutical Field, then ACT shall disclose promptly to
Merial in writing the terms of such offer, proposal, or bid and, further, ACT
shall afford Merial the opportunity to make a competing offer, proposal, or bid
within thirty (30) days of the date of Merial’s receipt of the written
disclosure of such offer, proposal, or bid.

 

 

(b)                                 For
purposes of this Letter Agreement, “Nutraceutical Field” means the development,
making, using, selling, offering to sell or importing of nutraceutical products
that are composed of, made in or derived, extracted or isolated from cloned
animals, provided, however, that the Nutraceutical Field does not include the
cloning of animals for any purpose related to the production of
biopharmaceutical agents in milk, including but not limited to, proteins,
peptides and polypeptides for pharmaceutical, nutraceutical or other use. “Nutraceutical”
or “nutraceutical product” means any food or other preparation intended for
oral consumption by humans whose primary function, when taken into the human
body, (a) serves to nourish or build up tissues or supply energy and/or (b)
maintains, restores or supports adequate nutritional status or nutritional
metabolic function and/or has pharmaceutical-like properties to enhance animal
health and well-being.

 

(c)                                  Notwithstanding
anything to the contrary in this Letter Agreement, Merial accepts the License Option
and any license resulting therefrom subject to any outstanding licenses,
options to acquire license, or other rights existing in third parties under
agreements executed by ACT prior to the date of this Letter Agreement,
including without limitation the rights of Newco, a corporation to be formed by
Robert Saglio, under the Non-Exclusive License Agreement between ACT and Newco
that is currently being negotiated by ACT and Saglio.

 

(d)                                 Merial
acknowledges, understands and agrees that ACT is currently using the ACT Patent
Rights in connection with research and development directed to the development
and commercialization of products in the Nutraceutical Field.  Merial further acknowledges, understands and
agrees, notwithstanding anything to the contrary contained herein, that from
the date hereof through the last day of the Negotiation Period ACT may (i)
continue such research and development activities and (ii) make, use, sell,
offer for sale and import products, or services (but not by way of license or
sublicense to third parties) in the Nutraceutical Field that utilize or
incorporate the ACT Patent Rights

 

(e)                                  The
License Option is effective for a period of six (6) months from the date of
this Letter Agreement.

 

2.                                      Right of First Negotiation – Supplemental Patent
Rights.

 

(a)                                  ACT
is currently negotiating with the University of Massachusetts to obtain
exclusive rights to the patent rights identified in Exhibit B attached
hereto (the “Supplemental Patent Rights”).

 

(b)                                 ACT
hereby grants to Merial a right of first negotiation to acquire an exclusive
license to use the Supplemental Patent Rights to develop, manufacture, use and
sell products in the fields of animal health and breeding (the “Right of First
Negotiation”) as follows: ACT shall notify Merial in writing of its intention
to enter into such an exclusive license. Merial may exercise the Right of First
Negotiation upon written notice to ACT within ninety (90) days after Merial’s
receipt of ACT’s notice described above. In the event Merial exercises the
Right of First Negotiation, ACT and Merial shall attempt to enter into a
definitive license agreement by negotiating in good faith to reach a license
agreement

 

2

 

containing commercially reasonable terms and pricing consistent with
relevant industry standards. If the parties are unable to reach agreement
within ninety (90) days after the date upon which Merial exercised the Right of
First Negotiation (the “Negotiation Period”), then ACT shall be free to enter
into such exclusive licenses (i.e., the license of the Supplemental
Patent Rights for the development, manufacture, use and sale of products in the
Nutraceutical Field or other fields discussed by the parties), but only on
terms more favorable to ACT than were firmly offered by Merial in writing
during the Negotiation Period.

 

(c)                                  Notwithstanding
anything in the Letter Agreement to the contrary, Merial accepts the Right of First
Negotiation and any license resulting therefrom subject to any outstanding
licenses, options to acquire license, or other rights existing in third parties
under agreements executed by ACT prior to the date of this Letter Agreement,
including without limitation the rights of Newco, a corporation to be formed by
Robert Saglio, under the Non-Exclusive License Agreement between ACT and Newco
that is currently being negotiated by ACT and Saglio.

 

(d)                                 Merial
acknowledges, understands and agrees that ACT is currently using the
Supplemental Patent Rights in connection with research and development directed
to the development and commercialization of products in the Nutraceutical
Field.  Merial further acknowledges,
understands and agrees, notwithstanding anything to the contrary contained
herein, that from the date hereof through the last day of the Negotiation
Period ACT may (i) continue such research and development activities and (ii)
make, use, sell, offer for sale and import products or services (but not by way
of license or sublicense to third parties) in the Nutraceutical Field that
utilize or incorporate the Supplemental Patent Rights.

 

(e)                                  The
Right of First Negotiation shall be effective for a period of six (6) months
from the date ACT and the University enter into an exclusive license agreement
for the Supplemental Patent Rights.

 

3.                                      Discount
on Initial Payment. 
Notwithstanding any terms to the contrary contained in the Non-Exclusive
License Agreement, the Initial Payment due to ACT thereunder shall be reduced to
One Hundred and Thirty Five Thousand Dollars ($135,000.00) provided that Merial
makes pays such amount before the close of business on November 15, 2002 by
wire transfer to the account designated by ACT.

 

4.                                      Technical
Services. ACT agrees to provide Merial with technical assistance
related to use of the license rights granted under the Non-Exclusive License
Agreement for a period of two (2) months subsequent to the date of this Letter
Agreement (the “Technical Assistance Period”).  
ACT shall provide such services through its employee, Don Swiatek, who
shall travel to Merial’s laboratory site(s) as reasonably requested by Merial
during the Technical Assistance Period. In exchange for such technical
services, Merial’s shall reimburse ACT for expenses at the rate of Two Hundred
Dollars ($200) per day plus reasonable travel expenses of Mr. Swiatek.  In the event Mr. Swiatek becomes unavailable
for any reason, including termination of his employment with ACT, then ACT
shall make all reasonable efforts to provide Merial with adequate technical
assistance during the Technical

 

3

 

Assistance Period, including but not limited to the engagement of Mr.
Swiatek as an independent contractor retained by ACT. At all times in rendering
Technical Assistance, Mr. Swiatek or ACT’s alternate designee shall be an
employee or agent of ACT and not an employee or agent of Merial. The
relationship between ACT and Mr. Swiatek or ACT’s alternate designee on the one
hand and Merial on the other
hand shall be that of an independent contractor, and nothing herein shall be
deemed to constitute either party as the agent or representative of the other
or both parties as joint venturers or partners for any purpose. Each party
shall be an independent contractor, not an employee or partner of the other.
With respect to confidentiality, ACT shall make all reasonable efforts to
secure Mr. Swiatek’s written agreement to a confidentiality agreement in favor
of Merial on substantially the same terms in Merial’s favor as the
Confidentiality provisions of the Non-Exclusive License.

 

5.                                      Termination.    (a) Merial may terminate this Letter
Agreement by giving 30 days written notice to ACT.

 

(b)                                 ACT
may terminate this Letter Agreement upon 30 days written notice to Merial if
Merial breaches or defaults on its payments obligations under the Non-Exclusive
License Agreement between ACT and Merial, unless, before the end of the 30 day
period, Merial has cured the breach or default to the satisfaction of ACT and
so notifies ACT in writing, stating the manner of the cure.

 

6.                                      Miscellaneous.    
(a)   IN NO EVENT SHALL EITHER
PARTY, ITS DIRECTORS, OFFICERS, EMPLOYEES OR AFFILIATES BE LIABLE FOR INDIRECT,
INCIDENTAL OR CONSEQUENTIAL DAMAGES  OF
ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS,
ARISING OUT OF THIS LETTER AGREEMENT, REGARDLESS OF WHETHER A PARTY SHALL BE
ADVISED, SHALL HAVE OTHER REASON
TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF SUCH DAMAGES.

 

(b)                               NEITHER ACT NOR ITS DIRECTORS, OFFICERS,
EMPLOYEES, AND AFFILIATES, MAKES ANY REPRESENTATIONS AND EXTENDS NO WARRANTIES
OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE ACT PATENT RIGHTS AND THE SUPPLEMENTAL PATENT
RIGHTS.

 

(c)                                  Nothing
herein contained shall be deemed to grant Merial any rights or licenses
including, but not limited to, any rights or licenses under the ACT Patent
Rights or the Supplemental Patent Rights.

 

(d)                                 The terms and conditions of this Letter
Agreement are confidential and shall not be disclosed, orally or in writing by
either party to any third party without the prior written consent of the other party.
Each party agrees that it will not use the name of the other party or any of
such party’s officers, directors, employees or agents in any promotional
material or other public announcement or disclosure without the prior written
consent of the other party.   Any press
release relating to this Agreement may be released only upon the prior written
approval of both parties as to content, accuracy, and timing.

 

4

 

(e)                                  This
Letter Agreement constitutes the entire and only agreement between the parties
relating to the matters addressed expressly herein, and all prior negotiations,
representations, agreements and understandings (whether oral or written) are
superseded hereby. No agreements altering or supplementing the terms hereof may
be made except by written mutual agreement by the parties. This Letter
Agreement shall be deemed executed simultaneously with the execution of the
Non-Exclusive License Agreement.

 

(f)                                    The provisions of this Letter Agreement are
severable, and in the event any provision hereof is determined to be invalid or
unenforceable, such invalidity or unenforceability shall not in any way affect
the validity or enforceability of the remaining provisions hereof.

 

(g)                                 Nothing
in this Letter Agreement shall be deemed to constitute, create, give effect to
or otherwise recognize a partnership, joint venture or formal business entity
of any kind or create a fiduciary or similar relationship between ACT and
Merial; and the rights and obligations of ACT and Merial shall be limited to
those expressly set forth herein.

 

(h)                                 ACT
represents, warrants, and covenants that the execution and performance of this
Letter Agreement will not violate, contravene, or conflict with any other
agreement to which ACT is a party or by which it is bound or with any law, rule
or regulation applicable to ACT.

 

(i)                                     This Letter Agreement and the License Option
and Right of First Negotiation may not be assigned by Merial without the prior
written consent of ACT, which consent may be granted or denied in ACT’s sole
discretion.

 

(j)                                   Any delay in enforcing a party’s right under
this Letter Agreement or any waiver as to a particular default or other matter
will not constitute a waiver of such party’s rights to the future enforcement
of its rights under this Agreement, except only as to an express written and
signed waiver to a specific matter for a specific period of time.

 

(k)                               Any notice required by this Letter Agreement
will be given by personal delivery (including delivery by reputable overnight
delivery services such as Federal Express) or by prepaid, first class,
certified mail, return receipt requested, addressed in the case of ACT to:

 

Advanced
Cell Technology, Inc.

One
Innovation Drive

Worcester,
MA 01605

USA

Attention:
Michael D. West, Ph.D., President

 

5

 

or
in the case of Merial to:

 

Merial
LLC

3239 Satellite Blvd.

Duluth, GA 30096-4640

USA

	
  Attention:

  	
  Legal Department/W. Joseph
  Thesing, Jr.

  
	
   

  	
  General Counsel, North
  America

  

 

or at such other addresses as may be given from time to time in
accordance with the terms of this notice provision.

 

(l)  This Letter Agreement will be governed by, construed, and
enforced in accordance with the laws of the Commonwealth of Massachusetts,
without regard to principles of conflicts of law.

 

(m) This Letter Agreement may be executed in counterparts, each of
which together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the parties have executed this Letter Agreement
effective as of the 8th day of November, 2002.

 

	
  ADVANCED CELL TECHNOLOGY,
  INC.

  	
  MERIAL LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Michael
  West

  	
   

  	
  BY:

  	
    /s/ Horace D.
  Nalle

  	
   

  
	
  Printed Name: MICHAEL WEST

  	
  Printed Name: Horace D.
  Nalle

  
	
  Its:  PRESIDENT

  	
  Its:  Company
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  MERIAL LEGAL

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
									

 

6

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