Document:

EXHIBIT 10.7

SETTLEMENT
AND LICENSE AGREEMENT

In this Settlement and License
Agreement (“Agreement”), effective as of the 30th day of August, 2006 (the “Effective
Date”), Advanced Cell Technology, Inc., a Delaware corporation with
offices located at 1201 Harbor Bay Parkway,
Suite 120, Alameda, California 94502 (“ACT”),
The University of Massachusetts, a public institution of higher education of
the Commonwealth of Massachusetts, as represented by its Amherst campus (“UMass”), and Start Licensing, Inc., a Delaware corporation
with offices located at 12357-A Riata Trace Parkway, Suite 150, Austin, Texas
78727 (“Start”) agree as follows:

Article 1 - Background

1.1           UMass owns
certain Stice Patents (hereafter defined) which, pursuant to that certain Exclusive License Agreement effective April
16, 1996, as amended (“UMass-ACT Agreement”), have been exclusively
licensed to ACT in a defined field that includes the Start Field (hereinafter
defined).

1.2           Roslin
Institute (Edinburgh) (“Roslin”)
owns certain Campbell Patents (hereafter defined) which have been exclusively
licensed to Geron Corporation (“Geron”)
and Exeter Life Sciences (“Exeter”)
and exclusively sublicensed to Start in the field of cloning non-human animals,
tissues, and cells, and products and by-products comprised of, made in,
produced by or originating, extracted or isolated from such non-human animals,
tissues and cells.

1.3           Under 35
U.S.C. §146, UMass and ACT filed actions against Roslin, Geron, and Exeter (as
hereafter defined, the Pending Actions) seeking reversal of adverse holdings by
the United States Patent and Trademark Office (“USPTO”) of certain interference proceedings involving certain
Stice Patents and certain Campbell Patents.

1.4           UMass, ACT
and Start wish to settle the Pending Actions.

1.5           In connection
with the settlement of the Pending Actions, UMass, ACT and Start wish to grant
rights under the involved patents in accordance with the terms of this
Agreement.

Article 2 - Definitions

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

2.1           “ACT Field”
means non-human
animal research or non-human
animal studies, including without limitation preclinical trials, that is useful
in connection with the research and development, manufacture and sale of
therapeutic and diagnostic human cell products; provided, however, that the ACT
Field does not include (a) any use of human embryos, cells, or tissues or (b)
the sale, lease, distribution, transfer, or other disposition of (i) non-human
animals, embryos, 

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cells, or tissues, and
(ii) products and by-products comprised of, made in, produced by or
originating, extracted or isolated from such non-human animals, embryos, cells
or tissues.

2.2           “ANZ Patents” means the AU Patent and the NZ Patent, each of
which are included in the Stice Patents.

2.3           “AU Patent” means Australian Patent
Application No. 742,363.

2.4           “Campbell Patents” means the patents and patent applications
listed on Exhibit A attached hereto, any divisional, continuation, continuation-in-part of such patent
applications, any and all patents issuing thereon, any and all reissues,
reexaminations, extensions, divisions, renewals, substitutions, confirmations,
registrations, revalidations, revisions and additions of or to any of the foregoing,
and any other patents or patent applications anywhere in the world that
correspond to any of the foregoing, or from which any of the foregoing claim
priority, or that claim priority back to any of the foregoing.

2.5           “NZ Patent” means New Zealand Patent
Application No. 336,612.

2.6           “Party” means UMass and ACT jointly or Start, and “Parties” means UMass and ACT jointly and Start.

2.7           “Pending Actions” means the actions pending
in the U.S. District Court for the District of Columbia styled as University of Massachusetts, et al v. Roslin Institute (Edinburgh), et
al, Case No. 1:05-cv-00353-RMU, and University of Massachusetts, et al v. Roslin Institute (Edinburgh),
et al, Case No. 1:05-cv-00706-RMU.

2.8           “Start Field” means all uses and applications in non-human
animals, excluding the production of cloned animals for the
primary purpose of producing human and non-human animal therapeutics and human
healthcare products, including without limitation the production of
biopharmaceutical agents in milk, including but not limited to proteins,
peptides, polypeptides for pharmaceutical, nutraceutical or other use, but only
to the extent and only so long as such field is exclusively licensed under the
Stice Patents by ACT to GTC Biotherapeutics.

2.9           “Stice Patents” means the patents and patent applications
listed on Exhibit B attached hereto, any divisional, continuation,
continuation-in-part of such patent applications, any and all patents issuing
thereon, any and all reissues, reexaminations, extensions, divisions, renewals,
substitutions, confirmations, registrations, revalidations, revisions and
additions of or to any of the foregoing, and any other patents or patent
applications anywhere in the world that correspond to any of the foregoing, or
from which any of the foregoing claim priority, or that claim priority back to
any of the foregoing.

2.10         “UMass Field” means the production of
immunoglobulin in the blood of Bos taurus,
Bos indicus, and Leporidae.

For purposes of this Agreement, except as otherwise
expressly provided herein or unless the context otherwise requires:  (a) the use herein of the plural shall
include the single and vice versa
and the use of the masculine shall include the feminine; (b) unless otherwise
set forth herein, the use of the term “including” or “includes” means “including
[includes] but [is] not limited to”; 

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and (c) the words “herein,” “hereof,” “hereunder” and
other words of similar import refer to this Agreement as a whole and not to any
particular provision.  Additional terms
may be defined throughout this Agreement.

Article 3
- Dismissal

3.1           Upon receipt of (i) the
$500,000 payment in accordance with section 6.1(a) of this Agreement, and (ii)
the fully executed Covenant Not to Sue in accordance with section 4.5 of this
Agreement, UMass and ACT shall execute a stipulation for dismissal with
prejudice of the Pending Actions substantially in form set forth in Exhibit
C hereto (the “Stipulation for Dismissal”), and Start shall obtain the
execution of such Stipulation for Dismissal by Roslin, Geron and Exeter.  Immediately after filing a copy of this fully
executed Agreement with the USPTO as provided in section 3.2 of this Agreement
below, UMass and ACT, through their counsel, will file the fully executed
Stipulation for Dismissal with the U.S. District Court.

3.2           Pursuant to
35 U.S.C. §135(c), UMass and ACT shall, upon receipt of the $500,000 payment
and the executed Covenant Not to Sue as provided in sections 6.1(a) and 4.5 of
this Agreement, and before filing the Stipulation for Dismissal of the Pending
Actions, file a true copy of this Agreement in the USPTO in conjunction with
each interference that is the subject of a Pending Action.

Article 4 - License
Grants and Covenants

4.1           ACT hereby
grants to Start a worldwide, exclusive, fully paid-up, royalty-free sublicense,
with the right to grant sublicenses, under all of and to the extent of its
rights and interests in the Stice Patents under the UMass-ACT Agreement, until
the last Stice Patent expires, to make, have made, use, develop, sell, offer
for sale, lease, distribute, import, export and otherwise dispose of any and
all products, to develop and perform services, to use and practice any
processes, arts or methods, and to otherwise commercialize and exploit such
Stice Patents in the Start Field except for the UMass Field.  Start acknowledges UMass has retained certain
rights under the Stice Patents pursuant to the UMass-ACT Agreement, including
rights to use the Stice Patents for academic research and teaching purposes.

4.2           UMass hereby
grants to Start a worldwide, exclusive, fully paid-up, royalty-free license,
with the right to grant sublicenses, under all of its rights and interests in
the Stice Patents subject to the UMass-ACT Agreement, until the last Stice
Patent expires, to make, have made, use, develop, sell, offer for sale, lease,
distribute, import, export and otherwise dispose of any and all products, to
develop and perform services, to use and practice any processes, arts or
methods, and to otherwise commercialize and exploit such Stice Patents in the
UMass Field.

4.3           The license
granted to Start in section 4.1 of this Agreement will be subject to any
nonexclusive license under the Stice Patents granted by ACT to third parties
prior to the Effective Date.  All such
existing licensees are identified in Exhibit D attached
hereto.  Start agrees to negotiate in
good faith with any qualified licensee identified in Exhibit D for a
nonexclusive license under one or more of the Campbell Patents.  ACT shall also include in Exhibit D
the identification of all exclusive licenses granted under the Stice Patents as
of the 

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Effective Date, including the name of the
licensee and a description of the exclusively licensed field.

4.4           In the event
of the expiration or termination for any reason of the UMass-ACT Agreement,
UMass agrees that the license under the Stice Patents and other associated
rights granted in this Agreement to Start will continue, and UMass will assume
all obligations of ACT in this Agreement with respect to the Stice Patents,
except for the obligation of ACT to bear costs and expenses associated with the
performance of section 5.3 of this Agreement.

4.5           Start agrees
to covenant not to sue or otherwise assert any Campbell Patent against ACT or
UMass, or their officers, trustees, employees, agents or research collaborators
based on activities in the ACT Field or on academic research or teaching
activities in the UMass Field by executing a covenant not to sue substantially
in the form set forth in Exhibit E attached hereto (the “Covenant
Not to Sue”).  Start agrees it will
obtain execution by Roslin, Geron, and Exeter of such Covenant Not to Sue, and
Start will deliver the fully executed Covenant Not to Sue to ACT and UMass
within one (1) business day after the Effective Date of this Agreement by the
Parties.

4.6           Start hereby
grants to ACT a worldwide, nonexclusive, royalty-free, paid-up sublicense under
the Stice Patents to conduct activities in the ACT Field. The license granted
to ACT in this section 4.6 does not include the right to sublicense; provided,
however, that under the license ACT may extend to its research collaborators
the right to use the Stice Patents to conduct activities in the ACT Field.

Article 5 - Patent
Matters

5.1           ACT and UMass
hereby disclaim all claims in U.S. Patent Nos. 5,945,577 and 6,235,970 and the
subject matter of all such claims, except the subject matter of claim 14, as
presented in U.S. Patent Application Serial No. 10/833,993, filed April 28,
2004, as an application for reissue of the ‘970 Patent.  Within ten (10) days after the Effective
Date, ACT and UMass will file in the USPTO the appropriate documents
substantially in the form set forth in Exhibit F attached hereto to make
of record the disclaimers set forth in this section 5.1 as to U.S. Patent Nos.
5,945,577 and 6,235,970 and will deliver to Start a copy of the disclaimers as
filed in the USPTO.  ACT and UMass
further agree not to assert any patent right claiming the subject matter of the
claims disclaimed pursuant to this section 5.1 in any country.

5.2           Subject to
the terms of this Agreement, including without limitation sections 5.5 and
6.1(a) of this Agreement, and except for the ANZ Patents, ACT and UMass hereby
assign to Start all their rights to prosecute, maintain and enforce any and all
Stice Patents having one or more claims directed to or otherwise encompassing
non-human subject matter as of the Effective Date (“Transferred Stice Patents”). 
The foregoing assignment of rights shall include all rights to apply
for, file, register, prosecute, maintain, extend, and renew the Transferred
Stice Patents, the right, subject to section 5.4 of this Agreement, to
abandon, disclaim or surrender the Transferred Stice Patents, the right to
settle or terminate any interference proceedings, re-examinations, oppositions,
or other challenges to the validity of the Transferred Stice Patents, and the
right to bring actions for present or future infringement of or otherwise
enforce the Transferred Stice Patents.  ACT
and UMass shall execute and deliver such documents and 

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perform such acts as are necessary to
establish or otherwise perfect Start’s rights under this section 5.2.

5.3           ACT shall at
its sole expense for a period of sixty (60) days after the Effective Date (“Transition
Period”) (a) continue to prosecute and maintain the Transferred Stice Patents
in the ordinary course with respect to any filings or communications with
patent authorities during such period, (b) provide Start the opportunity to
comment on any filings and communications with patent authorities during such
period prior to their submission and comply with Start’s reasonable
instructions with respect to any such filings and communications, and (c) not
abandon the prosecution of any such patents and patent applications or any
claims therein absent written consent of Start. 
ACT shall provide to Start within thirty (30) days after the Effective
Date the contact information for all outside patent prosecution counsel, any
patent prosecution docket listings maintained either by such outside
prosecution counsel or internally by ACT, and copies of all patent and patent
applications files maintained by such outside patent prosecution counsel or
internally by ACT.  ACT shall bear its
own costs and expenses, and those of its outside counsel, in copying and
delivering records, files and other materials in connection with transitioning
prosecution and maintenance of the Transferred Stice Patents to Start.  ACT and UMass shall execute powers of
attorney for the prosecution and maintenance of the Transferred Stice Patents,
and otherwise perform all acts and make all filings to permit Start to,
effective as of the end of the Transition Period, prosecute, maintain, and
enforce each such patent or application in all jurisdictions, and transact all
matters connected therewith.  Commencing
from the end of the Transition Period, Start shall bear all costs and expenses
associated with its prosecution and maintenance of the Transferred Stice
Patents.

5.4           ACT shall
make reasonable commercial efforts to cooperate fully with Start, at Start’s
expense (subject to ACT’s expense obligations under section 5.3 above), in
effecting an orderly transition of the prosecution and maintenance of the
Transferred Stice Patents and ACT and UMass shall cooperate with Start in the
preparation, filing, prosecution, maintenance and, as applicable, enforcement
of the Transferred Stice Patents, including without limitation promptly
executing all papers and instruments or requiring their respective employees to
execute all papers and instruments to enable Start to file, prosecute, maintain
and enforce the Transferred Stice Patents in any jurisdiction.

5.5           To the extent possible under the patent
laws of the relevant jurisdictions and within six (6) months from the Effective
Date, Start will cooperate with ACT, at ACT’s expense, in filing divisional or
continuation applications, as appropriate, from the Transferred Stice
Patents  to separate claims solely
directed to human subject matter from claims that encompass non-human subject
matter.  Start will assign back to ACT
its rights granted under section 5.2 of this Agreement to prosecute,
maintain and enforce applications having only claims solely directed to human
subject matter, and will otherwise perform all acts and make all filings necessary
to permit ACT to prosecute, maintain and enforce such applications.  ACT agrees that for any such application, as
well as any applications in the Stice Patents not transferred to Start pursuant
to this Article 5, and any divisional, continuation, continuation-in-part of
any such foregoing applications, and any and all patents issuing thereon
(collectively “Retained Stice Patents”), ACT will limit the claims in such applications or resulting
patents to claims solely directed to human subject matter.  Start shall execute and deliver such
documents and perform such acts as 

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are necessary to establish or
perfect ACT’s rights under this section 5.5.  Start will have no right or license under any
claim of a Retained Stice Patent solely directed to human subject matter.

5.6           With respect
to the NZ Patent, within ninety (90) days after the Effective Date ACT will, at
Start’s expense and to the extent possible under the patent laws of New
Zealand, cancel any claim directed solely to non-human subject matter and
reintroduce such claim or claims in a divisional or continuation
application.  ACT and UMass will assign
to Start their rights to prosecute, maintain and enforce such application.  With respect to the AU Patent, within ninety
(90) days after the Effective Date ACT will, at Start’s expense and to the
extent possible under the patent laws of Australia, cancel any claim not
directed solely to non-human subject matter and reintroduce such claim or
claims in a divisional or continuation application, such application to be
prosecuted, maintained and enforced by ACT. 
ACT and UMass will then assign to Start their rights to prosecute,
maintain and enforce the AU Patent.  The
assignment of rights to Start to prosecute, maintain and enforce applications
under this section 5.6 shall be equivalent to the rights assigned by UMass and
ACT to Start under section 5.2 of this Agreement with respect to the
Transferred Stice Patents.  Each such
application will be considered a Transferred Stice Patent.  Within thirty (30) days of the filing of each
divisional or continuation application contemplated in this section 5.6, ACT and UMass will perform all acts and
make all filings necessary to permit Start to prosecute, maintain and enforce
each application transferred to Start under this section 5.6, and will
cooperate with Start in the prosecution and maintenance of each such
application, as is otherwise provided in sections 5.3 and 5.4 of this Agreement
with respect to Transferred Stice Patents.

5.7           Subsequent to the filing of the divisional
or continuation applications as provided in sections 5.5 and 5.6, ACT and Start
will each bear its own expense as to the ongoing prosecution and maintenance of
the applications each respectively controls.

Article 6 - Consideration

6.1           In consideration
for the dismissal with prejudice of the Pending Actions and the rights granted
under the Stice Patents, Start will pay to ACT as follows:

(a)                                  Five hundred thousand
U.S. dollars ($500,000) within one (1) business day after after the Effective
Date of this Agreement by the Parties, subject to the following credit:

(i)                                     credit
of any attorneys fees and/or costs related to the Pending Actions incurred by
Start after May 10, 2006; provided, however, that the credit referred to in
this section 6.1(a)(i) does not include costs or attorneys’ fees incurred
by Start in connection with the negotiation and preparation of this Agreement.

(b)                                 Two hundred fifty
thousand U.S. dollars ($250,000) within 5 business days after release by the
United States Food and Drug Administration (“FDA”)
of a final public announcement,
statement or notification permitting agricultural products from animals
produced by somatic cell nuclear transfer (“SCNT”)
or their progeny to enter the human food chain; provided, however, that in the event
new 

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restrictions are imposed by the FDA in
connection with the above-referenced public announcement, statement or
notification, and ACT and Start agree in writing that such new restrictions are
likely to delay the commercialization of agricultural products from animals
produced by SCNT by more than twelve (12) months, such agreement not to be
unreasonably withheld by ACT, then payment under this section 6.1(b) shall be
made by Start within five (5) business days of the first commercial sale of such
agricultural product that complies with such new restrictions.

(c)                                  Five hundred thousand
U.S. dollars ($500,000) within five (5) business days after the first
occurrence of a Start sublicensee receiving approval by the FDA
of a New Drug Application for a human therapeutic product comprised of, made
in, produced by or otherwise originating from an animal generated using SCNT,
or from the tissues or cells of such animal, under license from Start.

6.2           The amounts
to be paid pursuant to section 6.1 of this Agreement will be paid by wire
transfer to the account identified, and pursuant to the instructions, set forth
in Exhibit G attached hereto.

6.3           (a)  Failure to pay the five hundred thousand
dollar ($500,000) amount to ACT in accordance with the requirements of section
6.1(a) above shall constitute a material breach of this Agreement and result in
the automatic termination of this Agreement; provided, however, that any delay
in such payment for reasons not within Start’s control, including any delay
attributable to the operations of the financial institutions involved in
transacting the payment, shall not constitute material breach of this
Agreement.  Notwithstanding the foregoing
and in addition to any and all other contractual or equitable rights of ACT,
all past due amounts owed by Start to ACT under this Agreement shall bear
simple interest at the U.S. Prime Rate, as reported by the Wall Street
Journal, Eastern Edition, on the due date (or the next business day if the
due date is not a business day), calculated based on the number of days between
the actual date the payment is made and the date the payment was due; provided,
however, that in no event shall such rate exceed the maximum legal annual
interest rate.

(b) 
Failure to file Stipulation for Dismissal in accordance with the
requirements of section 3.1 above shall constitute a material breach of this
Agreement and result in (i) the automatic termination of this Agreement, (ii)
the automatic refund to Start of the $500,000 payment made to ACT pursuant to section
6.1(a) above, and (iii) the automatic termination of the Covenant Not to Sue.

Article 7 - Term and
Termination

7.1           The term will
begin on the Effective Date and, unless terminated earlier pursuant to the
terms of this Agreement, will expire on the date of expiration of the last of
the Campbell Patents and Stice Patents to expire.

7.2           Either Party
may terminate this Agreement upon sixty (60) days prior written notice to the
other Party (a) for any material breach of this Agreement by such other Party
if the breaching Party fails to remedy such breach within such sixty (60) day
period, or (b) if the other Party files 

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for protection under applicable bankruptcy
laws, makes an assignment for the benefit of creditors, appoints or suffers
appointment of a receiver or trustee over its property, files a petition under
any bankruptcy or insolvency act or has any such petition filed against it and
such proceeding remains undismissed or unstayed for a period of more than sixty
(60) days.

7.3           The
expiration or termination of this Agreement shall not relieve the Parties of
any obligation accruing prior to such expiration or termination or preclude
either Party from pursuing all rights at law and in equity with respect to any
breach under this Agreement.  Notwithstanding
the foregoing, neither Party will be liable for punitive, exemplary or
consequential damages incurred by the other Party arising out of any breach
under this Agreement.  Upon expiration or
termination, except as provided in section 7.4, all rights and licenses granted
under this Agreement shall terminate.

7.4           If ACT and
UMass terminate this Agreement pursuant to section 7.2 of this Agreement
for material breach by Start, or if this Agreement automatically terminates
pursuant to section 6.3 of this Agreement, all licenses and rights granted
to Start under this Agreement will terminate, and all licenses and rights
granted to ACT and UMass hereunder will continue, provided that ACT and UMass
continues to comply with their obligations hereunder.  If Start terminates this Agreement pursuant
to section 7.2 of this Agreement for material breach by ACT or UMass, all
licenses and rights granted to ACT and UMass under this Agreement will
terminate, and all licenses and rights granted to Start hereunder will continue,
provided that Start continues to comply with its obligations hereunder.

7.5           The
termination provisions set forth in this Article 7 are in addition to the
provisions for the automatic termination of this Agreement set forth in Article
6 of this Agreement.

Article 8 - Representations
and Warranties

8.1           Each Party
represents and warrants to the other Parties that, as of the Effective Date
this Agreement has been duly executed and delivered by it and constitutes a
legal, valid and binding obligation enforceable against it in accordance with
such Agreement’s terms, except as the same may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws relating to or
affecting creditors’ rights generally and by general equity principles,
including judicial principles affecting the availability of injunction and
specific performance.

8.2           Start
represents that, as of the Effective Date, all necessary approvals or consents
of this Agreement under relevant agreements, including without limitation from
Roslin, Geron, and Exeter, have been obtained.

8.3           UMass
represents to Start that it owns all right, title and interest in the Stice
Patents and, except for any rights in the U.S. Government, that ACT is the only
licensee granted rights by UMass.

8.4           UMass
represents to Start that it has the right and authority to grant the license
granted to Start in section 4.2 of this Agreement.

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8.5           UMass and ACT
represent to Start that ACT is the exclusive licensee under the Stice Patents
in the Start Field except for the UMass Field, and that it has the right to
grant sublicenses of the type granted to Start in this Agreement.

8.6           UMass and ACT
represent to Start that Exhibit D includes the identity of each
person or entity having rights under any Stice Patent by virtue of UMass or ACT
action.

8.7           Start
represents to ACT that it is the exclusive licensee under the Campbell Patents
in the Start Field, subject to rights retained by Roslin and rights retained by
licensees under prior licenses from Geron and Exeter.

8.8           Start
represents to ACT that Start has the sole right to enforce the Campbell Patents
in the ACT Field pursuant to its license under the Campbell Patents.

8.9           Each Party
represents and warrants to the other Parties that, to its knowledge, there is
no claim, investigation, suit, action or proceeding pending (except the Pending
Actions) or, expressly threatened, against such Party before or by any
governmental entity or arbitrator that is likely to impair the ability of such
Party to perform any obligation under this Agreement.

8.10         Each Party
represents and warrants to the other Parties that it has not entered into any
enforceable agreement with any third party which is in conflict with the rights
granted to the other Parties under this Agreement or that is inconsistent with
or that would prevent the Party from performing under this Agreement.

8.11         Nothing in
this Agreement shall be construed as:

(a)                                  a warranty or
representation by any Party as to the valid­ity, enforceability or scope of any
patent; or

(b)                                 a warranty or
representation by any Party that anything made, used, sold, or otherwise
disposed of pursuant to this Agreement is or will be free from infringement of
patents or other intangible rights of third par­ties; or

(c)                                  except as expressly
provided in this Agreement, a requirement that any Party shall file any patent
applica­tion, secure any patent, or maintain any patent in force; or

(d)                                 an obligation on any
Party to bring or prosecute actions or suits against third parties for
infringement of any patent; or

(e)                                  an obligation to
furnish any manufacturing or technical information; or

(f)                                    granting by
implication, estoppel, or otherwise, any license or rights under patents, trade
secrets, know-how, copyrights, or other intangible rights owned or controlled
by a Party other than as expressly granted herein.

8.12         EACH PARTY
HEREBY DISCLAIMS ANY IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  EACH PARTY HEREBY WAIVES, RELEASES AND
RENOUNCES ANY 

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OBLIGATION, RIGHT, LIABILITY, CLAIM OR REMEDY
FOR (A) LOSS OF USE, REVENUE OR PROFIT, OR ANY OTHER DAMAGES, (B) INFRINGEMENT
OF THIRD PARTY INTANGIBLE PROPERTY RIGHTS, and (C) INCIDENTAL OR CONSEQUENTIAL
DAMAGES.

Article 9 - Indemnification

9.1           ACT shall
defend Start, and their respective agents, directors, officers and employees
(the “Start Indemnitees”), at the
cost and expense of ACT, and will indemnify and hold harmless the Start
Indemnitees from and against any and all losses, costs, damages, fees or
expenses (including reasonable attorney fees and other litigation expenses) (“Start Losses”) incurred by or awarded
against any Start Indemnitee relating to or in connection with any claim or
action, regulatory investigation, or any other cause, brought against any Start
Indemnitee by a third party arising out of:

(a)                                  any material breach
by ACT of its representations, warranties, covenants or obligations made under
this Agreement; or

(b)                                 any gross negligent
act or omission or willful misconduct of ACT or any of their employees,
sublicensees, contractors or agents, in performing its obligations under this
Agreement;

provided, however, that,
the foregoing indemnity shall not apply to the extent that any such Start
Losses are (i) attributable to the gross negligence or willful misconduct of
the Start Indemnitees or (ii) otherwise subject to an obligation by Start to
indemnify ACT Indemnitees under section 9.2 of this Agreement.

9.2           Start
shall defend ACT and UMass, and their respective agents, directors, officers
and employees (the “ACT Indemnitees”),
at Start’s cost and expense, and will indemnify and hold harmless the ACT
Indemnitees from and against any and all losses, costs, damages, fees or
expenses (including reasonable attorney fees and other litigation expenses) (“ACT Losses”) incurred by or awarded against
any ACT Indemnitee relating to or in connection with any claim or action,
regulatory investigation, or any other cause, brought against any ACT
Indemnitee by a third party arising out of:

(a)                                  any material breach
by Start of its representations, warranties, covenants or obligations made
under this Agreement; or

(b)                                 any gross negligent
act or omission or willful misconduct of Start or any of its employees,
sublicensees, contractors or agents, in performing its obligations under this
Agreement;

provided, however, that,
the foregoing indemnity shall not apply to the extent that any such ACT Losses
are (i) attributable to the gross negligence or willful misconduct of the ACT
Indemnitees, or (ii) otherwise subject to an obligation by ACT to indemnify
Start Indemnitees under section 9.1 of this Agreement.

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9.3           Each Party
will promptly notify the other in the event it becomes aware of a claim for
which indemnification may be sought hereunder. 
In case any proceeding (including any governmental investigation) shall
be instituted involving any Party in respect of which indemnity may be sought
pursuant to this Article 9, such Party (the “Indemnified
Party”) shall promptly notify the other Party(ies) (the “Indemnifying Party”) in writing and the
Indemnifying Party and Indemnified Party shall meet to discuss how to respond
to any claims that are the subject matter of such proceeding.  The Indemnifying Party, upon request of the
Indemnified Party, shall retain counsel reasonably satisfactory to the
Indemnified Party to represent the Indemnified Party and shall pay the fees and
expenses of such counsel related to such proceeding.  The Indemnified Party agrees to cooperate
fully with the Indemnifying Party in the event a claim is made or lawsuit is
filed, at the Indemnifying Party’s
expense.  In any such proceeding,
the Indemnified Party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of the Indemnified
Party unless (i) the Indemnifying Party and the Indemnified Party shall have
mutually agreed to the retention of such counsel or (ii) the named parties to
any such proceeding (including any impleaded parties) include both the
Indemnifying Party and the Indemnified Party and representation of both parties
by the same counsel would be inappropriate due to actual or potential differing
interests between them.  All such fees
and expenses shall be reimbursed as they are incurred.  The Indemnifying Party shall not be liable
for any settlement of any proceeding effected without its written consent, but
if settled with such consent or if there be a final judgment for the plaintiff,
the Indemnifying Party agrees to indemnify the Indemnified Party from and
against any loss or liability by reason of such settlement or judgment.  The Indemnifying Party shall not, without the
written consent of the Indemnified Party, effect any settlement of any pending
or threatened proceeding in respect of which the Indemnified Party is, or
arising out of the same set of facts could have been, a party and indemnity
could have been sought hereunder by the Indemnified Party, unless such
settlement includes an unconditional release of the Indemnified Party from all
liability on claims that are the subject matter of such proceeding.

9.4           The rights
and obligations of the Parties set forth in this Article 9 shall survive any
termination of this Agreement.

Article 10 - Publicity

10.1         Any public announcement or statement by any
Party concerning this Agreement or the subject matter thereof shall be subject
to the prior written consent of all Parties. 
Without limiting the foregoing, the Parties hereby approve and consent
to the press releases and Form 8-K filings included in Exhibit H
attached hereto, the release or filing of which shall not occur until
the executed Stipulation for Dismissal
has been filed with the District Court as provided in section 3.1 of this
Agreement.

10.2         Except for a mutually agreed upon public
announcement or statement, each party will hold in confidence the terms of this
Agreement; provided, however, that any Party shall be entitled to disclose the
terms of this Agreement pursuant to compliance with applicable laws and
regulations including, without limitation, state and federal securities laws
and regulations imposed on such Party.

 11
 

 

 

Article 11 - Other Provisions

11.1         This Agreement
contains the entire understanding between and among the Parties hereto and
supersedes any prior understandings and agreements between or among them
respecting the subject matter of this Agreement.

11.2         Except as
otherwise provided in this Agreement, no amendment, modification, or supplement
of any provision of the Agreement will be valid or effective unless made in
writing and signed by a duly authorized officer of each Party. The officers
signing this Agreement shall be duly authorized officers for all purposes of
this Agreement, unless notice is given to the contrary.

11.3         No provision
of this Agreement shall be waived by any act, omission, or knowledge of a Party
or its agents or employees except by an instrument in writing expressly waiving
such provision and signed by a duly authorized officer of the waiving Party.

11.4         This Agreement
may be assigned only with the prior permission of the other Party(ies), which
permission will not be unreasonably withheld, delayed or conditioned.  This Agreement shall be binding upon the
permitted successors, assigns, legal representatives, executors, administrators
and heirs of the Parties, as applicable.

11.5         This Agreement
shall be construed, governed, interpreted and applied in accordance with the
laws of the State of Delaware without regard to principles of conflicts of law
thereof, except that questions affecting the construction and effect of any
patents or patent applications shall be determined by the law of the country in
which the patent was granted or filed, as applicable.

11.6         The Parties
agree to follow the procedures set forth in this section 11.6 to resolve any
dispute, controversy or claim arising out of or relating to this Agreement or
the breach, termination or invalidity thereof (each, a “Dispute”).

(a)                                  In the event of any
Dispute arising out of or relating to this Agreement, either Party may initiate
mediation upon written notice to the other party, whereupon both Parties shall
engage in a mediation proceeding under the then current CPR Institute for
Dispute Resolution (“CPR”) Model Procedure for Mediation of Business Disputes,
except that specific provisions of this Section override inconsistent
provisions of the CPR Model Procedure. 
The mediator will be selected from the CPR Panels of Neutrals.  If the parties cannot agree upon the selection
of a mediator within thirty (30) days after initiation of mediation, then upon
the request of either party, the CPR shall appoint the mediator.  The parties shall attempt to resolve the
dispute through mediation until one of the following occurs: (i) the parties
reach a written settlement; (ii) the mediator notifies the parties in writing
that they have reached an impasse; (iii) the parties agree in writing that they
have reached an impasse; or (iv) the parties have not reached a settlement
within sixty (60) days after initiation of mediation.

(b)                                 If the parties fail to
resolve the dispute through mediation, or if neither party elects to initiate
mediation, each party may pursue any other remedies legally available to
resolve the dispute.

 12
 

 

 

(c)                                  Each party shall
continue to perform its obligations under this Agreement pending final
resolution of any dispute arising out of or relating to this Agreement.  However, a party may suspend performance of
its obligations during any period in which the other party fails or refuses to
perform its obligations.

(d)                                 Although the
procedures specified in this section 11.6 are the exclusive procedures for
resolution of disputes arising out of or relating to this Agreement, either
party may seek a preliminary injunction or other provisional equitable relief
if, in its reasonable judgment, that action is necessary to avoid irreparable
harm to itself or to preserve its rights under this Agreement.

(e)                                  The parties agree
that all applicable statutes of limitation and time-based defenses (such as,
estoppel and laches) are tolled while the procedures set forth in subsection
11.6(a) are pending.  The parties shall
take any actions necessary to effectuate this result.

11.7         All notices
regarding this Agreement shall be given in writing and shall be effective when
either served by personal delivery, or deposited, postage prepaid, in the
United States registered or certified mail, addressed to the Parties at their
respective addresses herein set forth, or to such other address or addresses as
either Party may later specify by written notice to the other.

	
  

  	
  To UMass:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The University of Massachusetts

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To ACT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Advanced Cell Technology, Inc.

  1201 Harbor Bay Parkway, Suite 120

  Alameda, California 94502

  	
   

  	
   

  
	
   

  	
  Attn:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To Start:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Start Licensing, Inc.

  	
   

  	
   

  
	
   

  	
  12357-A Riata Trace Parkway, Suite 150

  	
   

  	
   

  
	
   

  	
  Austin, Texas 78727

  	
   

  	
   

  
	
   

  	
  Attn:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Any change of address of a Party shall be promptly
  communicated in writing the other Parties.

  

 

11.8         This agreement
may be executed in several counterparts, each of which shall be deemed an
original copy and all of which shall constitute one agreement binding on all
Parties hereto not withstanding that all Parties shall not have signed the same
counterparts.

 13
 

 

 

NOW, THEREFORE, the
Parties, intending to be bound by this Settlement and License Agreement, have
caused their respective authorized representatives to sign below.

ADVANCED CELL TECHNOLOGY,
INC.

	
  By:

  	
  /s/ WILLIAM M.
  CALDWELL, IV

  	
   

  	
   

  
	
  Printed Name:

  	
  William M.
  Caldwell, IV

  	
   

  	
   

  
	
  Title:

  	
  Chief Executive
  Officer

  	
   

  	
   

  
	
  Date: August 25,
  2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  START LICENSING,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ SCOTT K.
  DAVIS

  	
   

  	
   

  
	
  Printed Name:

  	
  Scott K. Davis

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
   

  
	
  Date:

  	
  August 28, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE UNIVERSITY
  OF MASSACHUSETTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ WILLIAM
  ROSENBERG

  	
   

  	
   

  
	
  Printed Name:

  	
  William
  Rosenberg

  	
   

  	
   

  
	
  Title:

  	
  Executive
  Director, CVIP

  	
   

  	
   

  
	
  Date:

  	
  8/29/06

  	
   

  	
   

  
							

 

 14Exhibit
10.1

PROTECTION ONE, INC.

SENIOR MANAGEMENT

SHORT-TERM INCENTIVE PLAN

Effective January 1, 2006

The
Protection One, Inc. Senior Management Short-Term Incentive Plan (“Plan”)
is intended to motivate officers and other members of senior management of the
Company and certain of its designated subsidiaries to achieve the highest level
of performance and to further the achievement of Protection One’s goals,
objectives, and strategies.  The Plan is
designed to reward exceptional performance using financial incentives to
supplement base compensation.  Also, the
Plan is intended to enhance Protection One’s ability to attract and retain
talented employees.  Finally, the Plan is
intended to benefit Protection One in the pursuit of its goals and objectives
by stimulating and motivating the participants, which will in turn enhance
productivity.

1.                    Definitions. 
As used herein, the following words and phrases shall have the following
meanings unless the context clearly indicates otherwise:

(a)          Award:  The total incentive award made
to a Participant under the terms of the Plan.

(b)         Award Criteria:  The
Financial and Discretionary criteria described in Section 4, and as
approved by the Board from time to time, and as same may be amended from time
to time in accordance with the terms hereof.

(c)          Base Compensation: 
Annualized salary paid to an employee, excluding overtime, bonuses,
commissions, or any pay element other than the base rate of compensation.

(d)         Board:  The Board of Directors of the Company.

(e)          CMS: Security Monitoring Services, Inc., a Florida corporation (d/b/a
Computerized Monitoring Services, Inc., or CMS), and its successors and
assigns.

(f)            CMS Senior Management: The individual employed by CMS who holds
the title of President of CMS.

(g)         Company:  Protection One, Inc., a
Delaware corporation, and its successors and assigns.

(h)         Company Senior Management: Those individuals who are: (i) employed by
the Company in pay grades A, B or C of the wage and salary administration plan,
and (ii) those individuals, employed by the Company not in pay grades A, B or C
but designated as a Senior Manager by the CEO.

(i)             Designated Subsidiaries: CMS, POAMI and NMF.

(j)             Discretionary Criteria: 
Criteria which are based on financial or non-financial criteria or
both, applied in the discretion of the appropriate managerial decision-maker to
evaluate the performance of Participants, in accordance with pay grade and
management level as set forth in Section 2.

 1
 

 

(k)          Executive Officers: 
Those individuals which hold the following officer positions:
(i) President/Chief Executive Officer (“CEO”) of the Company or POAMI;
(ii) any Executive Vice President (“EVP”) of the Company or POAMI,
including without limitation the Executive Vice President and Chief Financial
Officer (“CFO”), and the Executive Vice President of Field Operations.

(l)             Incentive Period:  The
twelve month period measured in the final publication of the year-end
consolidated Financial Statements of the Company.

(m)       NMF: Network Multi-Family Security Corporation, a Delaware corporation,
and its successors and assigns.

(n)         NMF Senior Management: The individual employed by NMF who hold the
title of President of NMF.

(o)         Officers:  Those individuals employed by
the Company or POAMI which hold the following officer positions: (i) Vice
President, Treasurer and Controller, (ii) Vice President, General Counsel and
Secretary, and (iii) Senior Vice President of Customer Operations.

(p)         Participant:  Each (i) Executive Officer,
Officer and member of Senior Management, other than those Executive Officers,
Officers and members of Senior Management who are participants in a separate non-equity
incentive plan (other than retention programs), and (ii) each Senior Manager and other employee who is designated for
participation in the Plan by the Board or the CEO pursuant to Section 3,
regardless of their participation in a separate non-equity incentive plan.

(q)         Plan:  The Plan herein set forth, and
as from time to time amended.

(r)            POAMI: Protection One Alarm Monitoring, Inc., a Delaware corporation, and
its successors and assigns.

(s)          POAMI Senior Management: Those individuals who are: (i) employed by
POAMI in pay grades A, B or C of the wage and salary administration plan, and
(ii) those individuals, employed by POAMI not in pay grades A, B or C but
designated as a Senior Manager by the CEO.

(t)            Senior Management: The Company Senior Management, POAMI Senior
Management, NMF Senior Management and CMS Senior Management.

(u)         Target Award Percentage:  That
percentage of a Participant’s Base Compensation which the Board (or the CEO
pursuant to Section 3) shall from time to time determine to be available to a
Participant under the Plan, or which is specified in any employment agreement
with Participant, which employment agreement is approved by the Board. As an
example, a Senior Manager may be targeted to earn up to 25% of his/her Base
Compensation as an Award if all applicable criteria are achieved.  The Target Award may apply to a class of
employees or to individual employees, at the discretion of the Board (or the
CEO pursuant to Section 3).

2.              Administration. The Board shall
have authority for establishing the overall Plan, administering the Plan,
determining whether actual individual compensation awards will be 

 2
 

 

paid, and approving the amount of the actual
individual compensation awards.  The
Board may delegate any or all of such authority with respect to the Plan to a
committee of the Board or with respect to decisions or determinations affecting
Plan Participants other than the CEO or CFO, to the CEO or CFO of the Company.

The members of the Board and
all agents, officer, fiduciaries, and employees of the Company shall not be
liable for any act, omission, interpretation, construction, or determination
made in good faith in connection with their responsibilities with respect to
the Plan; and the Company hereby agrees to indemnify the members of the Board
and all agents, officers, fiduciaries, and employees of the Company in respect
to any claim, loss, damage, or expense (including counsel fees) arising from
any such act, omission, interpretation, construction, or determination to the
full extent permitted by law.

The day-to-day
administration of the Plan with regard to specific classes of Participants
shall be as follows:

(a)          Executive Officers:  The
Board has authority for the day-to-day supervision of the Plan,
including designation of the Executive Officers’ goals, determination of the
achievement of such goals, determination of the award size relating to the
Executive Officers’ goals, and the determination of the amount of the
discretionary award.

(b)         Officers:  The Board has authority for
the day-to-day supervision of the Plan including the designation of
the Officers’ goals, determination of the achievement of such goals,
determination of the award size relating to the goals, and the determination of
the amount of the discretionary award.

(c)          Senior Management:  The
Executive Officers have authority for the day-to-day supervision of the Plan,
including the designation of goals, determination of the achievement of such
goals, determination of the award size relating to the goals, and the
determination of the amount of the discretionary award.

3.               Eligibility to
Participate.  Only those employees who are
Participants, as that term is defined in Section 1(p) above, are Participants
in the Plan.  The CEO shall determine,
from time-to-time, whether the Plan should be extended to other
individuals or groups of employees of the Company or its Designated
Subsidiaries; provided, however, that the CEO shall not have authority to
extend the Plan to additional executive officers.

4.               Award Criteria.  Awards under the Plan shall be calculated
utilizing the following two criteria for each Participant: (i) the Financial
Criterion, from which 70% of the Award is derived, and (ii) the Discretionary
Criterion, from which 30% of the Award is derived. These criteria are further
described below.

(a)          Financial Criterion:  The
purpose of this measure is to foster a team orientation and to directly tie a
Participant’s incentive to the steady state net operating cash flow (“SSNOCF”)
of the Company and the Designated Subsidiaries, which the Company believes is a
key operating metric and directly affects shareholder value.

SSNOCF shall be calculated
in a manner consistent with the method used in the Company’s annual financial
plan and approved by the Board.  SSNOCF
will be calculated both on a consolidated basis for the Company and also
calculated 

 3
 

 

separately
for each Designated Subsidiary. The Financial Criterion shall be applied to
Participant as follows:

·                  For Executive
Officers, Officers and certain other key corporate employees (as designated by
the CEO), the applicable Financial Criterion shall be based one hundred percent
(100%) on the consolidated SSNOCF of the Company.

·                  For CMS Senior
Management, the applicable Financial Criterion shall be based eighty percent
(80%) on the SSNOCF of CMS and twenty percent (20%) on the consolidated SSNOCF
of the Company.

·                  For NMF Senior
Management, the applicable Financial Criterion shall be based eighty percent
(80%) on the SSNOCF of NMF and twenty percent (20%) on the consolidated SSNOCF
of the Company.

·                  For Company
Senior Management and POAMI Senior Management, the applicable Financial
Criterion shall be based eighty percent (80%) on the SSNOCF of POAMI (excluding
CMS) and twenty percent (20%) on the consolidated SSNOCF of the Company.

Excluded from the foregoing
calculations are the following:

·                  expenses
related to (i) unbudgeted legal settlements arising from claims that preceded the
tenure of current management (i.e., prior to April 2001), (ii) non-recurring
maintenance capital expenditures, (iii) non-cash stock-based compensation, (iv)
refinancing, (v) reorganization, and (vi) changes in working capital.

·                  increases or
reductions in RMR that results from (i) a billing system conversion or (ii) a
change in estimate.

The calculation of
Participants’ financial component will include a multiplier of 0% to 200% (the “Financial
Multiplier”) that will depend on performance against plan.

The
formula for calculating the Financial Multiplier is as follows:

(Actual
SSNOCF — (90%) (Budgeted SSNOCF)) divided by ((10%) (Budgeted SSNOCF))  = 
Multiplier

The calculation for determining the Financial
Criterion component of the Award under the plan is as follows:

Financial
Multiplier X Target Award Percentage X Financial Criterion Percentage (70%).

For example, for an Executive Officer with
the maximum Multiplier, the calculation would be 200% (Multiplier) x 60%
(Target Award Percentage) x 70% (Financial Criterion Percentage) = 84% of Base
Compensation.

For all Participants, the portion of Awards
derived from the Financial Criterion is capped at 200% of 70% of Target Award
Percentage of Base Compensation (e.g., 84% of base salary for CEO, 56% of Base
Compensation for Officer, etc.).

 4
 

 

(b)         Discretionary Criterion:  This
criterion is based on individual achievement and is intended (i) to
provide a judgmental rating of a Participant’s managerial effectiveness, and
(ii) to recognize the importance of intangible qualities of corporate
performance. The rating (determined in accordance with Section 2 above) is
based on an assessment of qualitative issues such as:

(i)                                     providing strategic direction

(ii)                                  providing leadership

(iii)                               proactively managing change

(iv)                              organizing developing, and utilizing the
management team

(v)                                 creating an appropriate organizational
environment

(vi)                              providing effective external representation

(vii)                           monitoring and evaluating performance and
taking corrective actions.

Depending on individual
achievement of these factors, the discretionary component of Participants’
Awards may range from 0% to 30% (“Discretionary Criterion Percentage”) of the
Target Award Percentage. For example, for an Executive Officer awarded a
Discretionary Criterion Percentage of 30%, the calculation would be: 60%
(Target Award Percentage) x 30% (Discretionary Criterion Percentage) = 18% of
Base Compensation.

5.               Payment of Awards.

(a)          Generally:  Awards under the Plan are
payable annually.  Payment of Awards
shall be made within two and one-half months of the end of the fiscal year for
which such Awards are attributable; provided, however, that if all or any
portion of Awards are paid prior to completion of the Company’s audited
financial statements for the Incentive Period, Participants will be required to
repay the Company the amount received in excess of what would have been paid
based on the Company’s audited results.

(b)         Termination of Employment: 
Except as may be provided in a written employment agreement between a
Participant and the Company or a Designated Subsidiary, a Participant who
ceases to be continually employed by the Company or a Designated Subsidiary
during the Incentive Period shall not be eligible for and shall forfeit all
rights to an Award for such Incentive Period.

6.               Withholding for
Taxes. Awards under the Plan are subject the withholding for applicable
taxes and other charges.

7.               No Rights to
Corporate Assets.  Nothing contained herein
create any equity, property, lien, security or other interest of any kind in
any assets of the Company or its subsidiaries, 

 5
 

 

or create a trust or fiduciary relationship of any
kind between the Company and its subsidiaries, or the Board or any member
thereof, and any Plan Participant.  Any
claims for unpaid amounts under the Plan, are and shall be unsecured.

8.               No Right to Acceleration or Deferral of
Awards. It is the intent of
the Board that the Plan meet the requirements of Section 409A of the Internal
Revenue Code, be operated in accordance with such requirements, and that
amounts payable pursuant to the Plan not be included in the wages or income of
a Participant until such time as the Award is actually paid to the Participant.
Accordingly, Participants have no right to elect to accelerate or to defer, nor
shall any amounts payable pursuant to the Plan be accelerated or deferred,
except as permitted under Section 409A of the Internal Revenue Code.

9.               Non-Assignability. Participants’
rights and interests under the Plan may not be transferred, assigned,
mortgaged, or otherwise encumbered (an “assignment”); nor shall such rights and
interests be subject to seizure for the payment of a Participant’s debts,
judgments, alimony, or separate maintenance or be transferable by operation of
law in the event of a Participant’s bankruptcy or insolvency. Any purported
assignment by Participant of Participant’s rights and interests under the Plan
shall be void.

10.         Amendment and
Termination.  Other than with respect to the
2006 Plan year, the Board may from time to time and at any time alter, amend,
suspend, discontinue, or terminate the Plan. Amendments to the Plan will not
operate retroactively unless the amendment expressly so provides and is
expressly agreed to by the CEO.

11.         No Right of
Employment.  Nothing contained in the Plan
shall be construed as conferring upon a Participant the right to continued
employment with the Company.

12.         Governing Law.  All rights and obligations under the Plan
shall be governed by, and the Plan shall be construed in accordance with the
laws of the State of Delaware.

13.         Titles and
Headings.  Titles and headings to
sections herein are for purposes of reference only and shall in no way limit,
define, or otherwise affect the meaning or interpretation of any provisions of
the Plan.

14.         Effective Date.  This Plan is made effective as of
January 1, 2006 and supersedes all other existing short-term incentive
plans of the Company and its Designated Subsidiaries.

 

 6

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