Document:

ex10_34.htm

    Exhibit
10.34

    
 

    EXCLUSIVE SUBLICENSE
AGREEMENT

    

    This Exclusive Sublicense Agreement
(“Agreement”) is made and entered into as of the 15th day of August, 2008 (the
“Effective Date”), by and between Advanced Cell Technology, Inc., a Delaware
corporation with offices located at 11100 Santa Monica Blvd, Suite 850, Los
Angeles, CA 90025 (“ACT”), Embryome Sciences, Inc., a California corporation
(“ES”), with offices located at 1301 Harbor Bay Parkway, Suite 100, Alameda,
California 94502.  ACT and ES are sometimes hereinafter referred to as
the “Parties”.

    

    WITNESSETH

    

    WHEREAS, ACT is the licensee of certain
PATENT RIGHTS under an Exclusive License Agreement, effective as of May 9, 2006,
among ACT, Kirin Beer Kabushiki Kaisha, Aurox, LLC, Hematech, LLC, and Kirin SD,
Inc.; and

    

    WHEREAS, ES desires to obtain an
exclusive sublicense from ACT to use the PATENT RIGHTS and a license to use
KNOW-HOW upon the terms and conditions set forth in this Agreement;
and

    

    WHEREAS, ACT is willing to grant such a
license to ES upon the terms and conditions set forth in this
Agreement;

    

    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
definitions found in Article 1 of the Kirin License Agreement are incorporated
into this Agreement by reference, except as otherwise provide
below.  In addition, the following words and phrases shall have the
following meanings:

    

    1.1           “AFFILIATE”
means any corporation, limited liability company, limited partnership or other
entity in control of, controlled by, or under common control with
ES.  Any use the word AFFILIATE in this Agreement shall have the
meaning set forth in this paragraph, rather than the mean ascribed to such term
in the Kirin License Agreement.

    

    1.2           “CONFIDENTIAL
INFORMATION” means confidential or proprietary information of ACT or ES relating
to the PATENT RIGHTS, KNOW-HOW, LICENSED PROCESSES, LICENSED SERVICES or
LICENSED PRODUCTS.  CONFIDENTIAL INFORMATION may be in written,
graphic, oral or physical form and may include scientific knowledge, know-how,
processes, inventions, techniques, formulae, products, business operations,
customer requirements, designs, sketches, photographs, drawings, specifications,
reports, studies, findings, data, plans or other records, biological materials,
and/or software.  CONFIDENTIAL INFORMATION shall not
include:  (a) information which is, or later becomes, generally
available to the public through no fault of the recipient; (b) information which
is provided to the recipient by an independent third party having no obligation
to keep the information secret; (c) information which the recipient can
establish by written documentation was previously known to it; or (d)
information which the recipient can establish by written
documentation

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    was
independently developed by it without reference to the CONFIDENTIAL
INFORMATION.

    

    1.3           “KIRIN
LICENSE AGREEMENT” means that certain Exclusive License Agreement, effective as
of May 9, 2006, among ACT, Kirin Beer Kabushiki Kaisha, Aurox, LLC, Hematech,
LLC, and Kirin SD, Inc., as the same may from time to time be amended or
modified.

    

    1.4           “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 slide illustrations, computer code,
apparatus, 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 and all
other CONFIDENTIAL INFORMATION that is owned or controlled by ACT as of the
Effective Date, and that specifically relates to the subject matter described in
or claimed by the PATENT RIGHTS.

    

    1.5           “SUBLICENSEE”
means a sublicensee of the rights granted ES under this Agreement, as further
described in Article 2.

    

    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”; 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 2 – LICENSE
GRANT

    

    2.1           Grant of
Rights.  ACT hereby grants to ES, and ES accepts, subject to
the terms and conditions of this Agreement, a royalty-bearing (to the extent
provided herein), worldwide, exclusive sublicense, with  the right to
further sublicense, to use the PATENT RIGHTS, and a worldwide, exclusive
license, with  the right to further sublicense, to use the and
KNOW-HOW, to (a) research, develop, make, have made, use, sell, offer for sale,
import, export, reproduce, distribute, perform, and display and otherwise
dispose of  LICENSED PRODUCTS, and (b) to develop and perform LICENSED
SERVICES, in the Territory in the Exclusive ACT Field.

    

    2.2           Sublicense
Rights.  ES shall have the right to grant sublicenses of its
rights under Section 2.1 without the consent or approval of ACT.  ES
agrees to provide ACT with a fully executed copy of all sublicense agreements
within thirty (30) days after execution.

    

    2.3           Knowledge
Transfer.  Within ten (10) days of the Effective Date, ACT
shall provide, deliver, and transfer to ES all information and data relating to
the PATENT RIGHTS and KNOW-HOW as may be reasonably necessary to allow ES to
exploit the licenses granted hereunder. Such transfer shall be made free and
clear of all liens, security interests, encumbrances, and claims of any kind by
any third party.  ACT shall bear all costs of so delivering the KNOW
HOW to ES.  ACT shall not retain any copies (in any format or media)
of the KNOW HOW.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    2.4           Performance of Obligations
under Kirin License Agreement.  ACT agrees to fully perform
when and as due all of its obligations, including but not limited to the payment
of all royalties, Sublicense Revenue, and other amounts due, under the Kirin
License Agreement.  ACT will not terminate the Kirin License Agreement
or cause the Kirin License Agreement to be terminated, and will not enter into
any amendment or modification of, or waiver of rights under, the Kirin License
Agreement, without the prior written consent of ES, which consent may be given
or withheld in ES’s sole discretion.  ACT shall deliver to ES, within
five (5) days after receiving the same, any and all notices or communications
from the Licensor under the Kirin License Agreement.  ES shall have
the right, but not the obligation, to cure any and all breaches or defaults by
ACT, or to perform any obligation of ACT required to avoid or prevent a breach
or default by ACT, under the Kirin License Agreement, including but not limited
to the payment of any royalties or Sublicense Revenue due under the Kirin
License Agreement.  ACT shall reimburse ES on demand, with interest at
the rate of 12% per annum, for all costs and expenses incurred by ES to cure any
breach or default, or to perform any obligation of ACT required to avoid or
prevent a breach or default by ACT, under the Kirin License
Agreement.

    

    ARTICLE 3 –
COMMERCIALIZATION OBLIGATIONS

    

    3.1           ES
intends to use, or to cause its Sublicensees to use, commercially reasonable and
diligent efforts to bring one or more ROYALTY-BEARING LICENSED PRODUCTS and
ROYALTY BEARING LICENSED SERVICES to market through an active and diligent
program for exploitation of the PATENT RIGHTS and KNOW-HOW and to continue
active, diligent marketing efforts for one or more ROYALTY-BEARING LICENSED
PRODUCTS and ROYALTY-BEARING LICENSED SERVICES throughout the life of this
Agreement.  ES makes no representation, guaranty, or warranty that it
or its Sublicensees will be successful in developing or bringing to market any
ROYALTY-BEARING LICENSED PRODUCT or ROYALTY-BEARING LICENSED
SERVICES.

    

    ARTICLE 4 -
CONSIDERATION

    

    4.1           Initial Sublicense
Fee.  In partial consideration of the rights and licenses
granted to ES by ACT in this Agreement, ES shall pay to ACT on the Effective
Date a sublicense fee equal to Fifty Thousand Dollars (U.S.) ($50,000) (the
“Sublicense Fee”).  The Sublicense Fee is not refundable and is not
creditable against other payments due to ACT under this
Agreement.  The Sublicense Fee shall
be allocated
and paid in the following manner:  (a) ES shall pay $37,500 to
the Licensor under the Kirin License Agreement (the “Licensor”) to
satisfy ACT’s minimum royalty payment obligation for the year ended December 31,
2007 under Section 3.3 of the Kirin License Agreement; (b) ES shall pay to the
Licensor the amount due under Section 3.7 of the Kirin License Agreement with
respect to the payment made under clause (a) of this sentence to satisfy ACT’s
obligation to pay a late fee; (c) ES shall pay $10,000 to
the Licensor to satisfy ACT’s obligation under Section 3.4 of the Kirin License
Agreement to pay the Licensor 20% of all “Sublicense Income;” and (d) the
amount, if any, by which $50,000 exceeds the amounts paid under clauses (a)
through(c) of this sentence shall be paid to ACT.

    

    4.2           Additional
Provisional Sublicense Fee. ES shall pay
to ACT or to the Licensor the amount, if any, by which royalties on Net Sales
paid to the Licensor under the Kirin License Agreement are less than
$50,000.  Such amount shall be paid to ACT or to the Licensor on the
later of (a) the date required under Section 3.3 of the Kirin License Agreement,
or (b) five (5) business days after ES receives

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    written
notice from ACT showing the total amount of royalties on Net Sales paid to the
Licensor for the applicable year.  ES shall determine in its sole
discretion whether to pay such amount to ACT or directly to Licensor to satisfy
ACT’s obligation under Section 3.3 of the Kirin License Agreement.

    

    4.3           Royalties and Other
Consideration.

    

    (a)           As
additional consideration of the license granted to ES from ACT in Article 2 of
this Agreement, ES shall pay to ACT a royalty equal to (i) 3.5% of the Net Sales
received by ES and its AFFILIATES for all ROYALTY-BEARING LICENSED PRODUCTS or
ROYALTY-BEARING LICENSED SERVICE sold, performed, or leased by ES or any
AFFILIATE, and (ii) 20% of all Sublicense Revenue (as defined in the Kirin
License Agreement) received by ES and its AFFILIATES, provided that in o even
shall ACT receive, on a country-by-country basis, less than 3.5% of the
aggregate Net Sales of the Licensed Product or Licensed Service in a particular
country where ES has sublicensed to a third party rights with respect to the
Licensed Product or Licensed Service.  The obligation of ES to pay
royalties shall terminate with respect to NET SALES and Sublicense Revenue
arising in any country concurrently with the expiration or termination of the
last applicable VALID CLAIM within the PATENT RIGHTS in such country in which
the ROYALTY-BEARING LICENSED PRODUCT or ROYALTY-BEARING LICENSED SERVICE is
sold, or May 9, 2016 if no such patents have issued by such date, whichever is
longer.

    

    (b)           ES
shall receive a credit toward the payment of royalties due under this Section
4.3 in an amount equal to the payments, if any, made by ES under Section
4.2.  Such credit shall be cumulative and shall carry over to each
subsequent year if the amount of royalties payable to ACT under this Section 4.2
is less than the amount paid by ES under Section 4.2.

    

    (c)           In
the event that Licensee or any of its AFFILIATES or SUBLICENSEES is required to
make, and actually does make, royalty payments to one or more third parties for
a license to an issued patent or patents,(“Third Party Payments”) in order to
make, have made, use, import, sell or offer for sale ROYALTY-BEARING LICENSED
PRODUCTS or to perform ROYALTY-BEARING LICENSED SERVICES, in the absence of
which such ROYALTY-BEARING LICENSED PRODUCT or ROYALTY-BEARING LICENSED SERVICE
could not legally be used or sold or performed in such country, and the
resulting aggregate royalty owed by ES or any of its AFFILIATES or SUBLICENSEES
is 15% or greater, then, ES may reduce the royalties due ACT pursuant to Section
4.2(a) above for such ROYALTY-BEARING LICENSED PRODUCT or ROYALTY-BEARING
LICENSED SERVICE on the same proportionate basis as all other third party
royalties are reduced in the same royalty period.  However, the
royalty payments due ACT under Section 4.2(a) may never be reduced by more than
fifty percent (50%) in any royalty period.

    

    (d)           No
multiple royalties shall be payable on the basis that any LICENSED PRODUCT,
LICENSED PROCESS or LICENSED SERVICE, its manufacture, use, lease, sale or
performance are or shall be covered by (i) more than one patent or patent
application within the PATENT RIGHTS, or (ii) any other patent or know how under
a license or sublicense from ACT.  In the case of the use of patents
or know how licensed or sublicensed by ACT under other agreements, ES and ACT’s
other licensees or sublicensees shall have the right to credit against the
royalties owing to ACT, under this Agreement and under such other license or
sublicense agreements, any royalty payments received by ACT with respect to the
sale or lease of any product or performance of any service (regardless of
whether

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    ES or
another licensee or sublicensee of ACT patents or know how pays the royalty),
such that in no event shall the total of royalty payments that are due to ACT in
any royalty period under this Agreement and under such other license or
sublicense agreements exceed the highest applicable royalty rate among this
Agreement and such other license or sublicense agreements.  By way of
example only, if a product is produced by ES (alone or with a third party) and
that product uses PATENT RIGHTS under this Agreement and patents licensed under
a license or sublicense agreement between ACT and ES (or between ACT and the
third party with whom ES is producing the product), (i) only one royalty would
be paid to ACT on sales of the product, (ii) the royalty rate would be the
higher of the royalty rate applicable under this Agreement or under ACT’s other
license or sublicense agreement with ES or the third party, and (iii) the
royalty payment (whether paid by ES or by the third party) will be credited
toward royalties payable under this Agreement and under the other ACT license or
sublicense agreement with ES or the third party for the sale of the
product.

    

                  
4.4           Payment
Method.  All payments due under this Agreement shall be paid
either to ACT in Los Angeles, California, U.S.A. or to the Licensor in Sioux
Falls, South Dakota, U.S.A, a provided in Section 3.6 of the Kirin License
Agreement, and shall be made in United States currency without deduction for
taxes, assessments, exchanges, collection or other charges of any kind.
 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.

    

                  
4.5           Late
Fee.  ES shall pay ACT or the Licensor interest on any overdue
amounts at the rate of one percent (1%) per month (twelve percent (12%) per
annum), from the date when such payment should have been made.

    

    ARTICLE 5 - REPORTS AND
RECORDS

    

    5.1           ES
shall maintain complete and accurate records of LICENSED PRODUCTS, LICENSED
SERVICES and LICENSED PROCESSES that are sold, performed, or, leased by ES or
its  AFFILIATES under this Agreement, and all Sublicense Revenue
received by ES and its AFFILIATES.  ES shall keep, and shall cause its
AFFILIATES and SUBLICENSEES to keep, full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to ACT hereunder and ES’s compliance with the terms and
conditions of this Agreement.  Said books of account shall be kept at
ES’s principal place of business or at such other location as may be agreed upon
by the parties.  Said books and the supporting data shall be open upon
reasonable advance notice (and no more frequently than once per calendar year)
for three (3) years following the end of the calendar year to which they
pertain, to the inspection of ACT or its agents for the purpose of verifying
ES’s royalty statement or compliance in other respects with this
Agreement.  If any such audit determines that the reported payments to
ACT were less than ninety percent (95%) of the actual amount due to ACT for the
period in question, ES shall bear the cost of such audit (without limiting ACT’s
other remedies with respect thereto).

    

    5.2           After
the first commercial sale of a LICENSED PRODUCT or LICENSED SERVICE by ES any
AFFILIATE, or any SUBLICENSEE, or ES’s receipt of any Sublicense Revenue, ES,
within forty-five (45) days after March 31, June 30, September 30 and December
31, of each year, shall deliver to ACT a true and accurate report of all NET
SALES and License Revenue during the preceding three-month period under this
Agreement as shall be pertinent to a royalty accounting
hereunder.  Each

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    such
report shall include at least the following:

    

    
      	
               
      

            	
              (a)

            	
              number(s)
      of ROYALTY-BEARING LICENSED PRODUCTS, manufactured by ES, its AFFILIATES,
      or SUBLICENSEES, or by any third party on ES’s
  behalf;

            

    

    

    
      	
               
      

            	
              (b)

            	
              number(s)
      of ROYALTY-BEARING LICENSED PRODUCTS sold by ES, its AFFILIATES, and
      SUBLICENSEES;

            

    

    

    
      	
               
      

            	
              (c)

            	
              total
      receipts for ROYALTY-BEARING LICENSED PRODUCTS sold by ES, its AFFILIATES,
      SUBLICENSEES;

            

    

    

    
      	
               
      

            	
              (d)

            	
              total
      receipts for ROYALTY-BEARING LICENSED SERVICES sold by ES, its AFFILIATES,
      SUBLICENSEES; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              deductions
      applicable as provided in Section 1.9 of the Kirin License
      Agreement.

            

    

    

    5.3         With
each such report submitted, ES shall pay to ACT the royalties and other payments
due and payable under this Agreement.  If no royalties or other
payments shall be due, ES shall so report.

    

    5.4         ES’s
reporting obligations hereunder shall terminate when ES’S obligation to pay
royalties to ACT terminates.

    

    ARTICLE 6 - PATENT
RIGHTS

    

    6.1         Prosecution of Patents and
Claims.  ACT agrees confer with ES with respect to (a) the
claims made in the patent applications included within the PATENT RIGHTS, and
(b) the extent to which and manner in which Licensor is prosecuting such patents
and claims, and (c) any additional, broader, or different claims under the
patent applications or other PATENT RIGHTS that reasonably could be prosecuted
for the benefit of ACT and ES.  ACT will cooperate with ES in seeking
the cooperation and agreement of Licensor to prosecute such patents and claims
under patent applications or other PATENT RIGHTS as ES may reasonably
request.  ACT agrees that ES may assert the rights of ACT under
Article 5 of the Kirin License Agreement, on behalf of ACT and ES, if ES does
not agree with or is not satisfied with the content of any patent application or
any other matter pertaining to the prosecution of any patent application or
claim within any patent application or other PATENT RIGHTS.

    

    6.2         Abandonment of
PATENT
RIGHTS.  In the event that ACT receives a notice from the
Licensor under Section 5.2 of the Kirin License Agreement, ACT shall promptly,
but in no even later than five (5) days after receiving such notice, deliver a
copy of such notice to ES.  ACT and ES shall confer regarding what
action, if any, to take to preserve any PATENT RIGHTS that might otherwise be
abandoned by Licensor.  ES shall have the right, but not the
obligation, to take any and all actions that ACT is entitled to take under
Section 5.2 of the Kirin License Agreement.  ACT and ES agree to
reasonably cooperate in connection with the preparation, filing, prosecution,
and maintenance of the PATENT RIGHTS under this Section.  Cooperation
includes, without limitation, (a) promptly executing all papers and instruments
or requiring employees of ACT or ES to execute papers and instruments as
reasonably appropriate to enable ES to file, prosecute, and maintain PATENT
RIGHTS in any country;

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    and (b)
promptly informing ES of matters that may affect preparation, filing,
prosecution, or maintenance of PATENT RIGHTS (such as becoming aware of an
additional inventor who is not listed as an inventor in a patent
application).

    

    6.3          Infringement of PATENT
RIGHTS.  The Parties agree to notify each other in writing of
any actual or threatened infringement by a third party of the PATENT RIGHTS or
of any third-party claim of invalidity or unenforceability of the PATENT RIGHTS,
or of any interference or other proceeding affecting the PATENT
RIGHTS.

    

                 
6.4           New Patents, Inventions, and
Discoveries.  ES shall have the right to file and prosecute new
patent applications (and to obtain new patents) covering LICENSED PRODUCTS and
LICENSED SERVICES, and any other subject matter, with respect to any technology,
invention, or discovery made by ES or any of its AFFILIATES or SUBLICENSEES
using PATENT RIGHTS or KNOW-HOW.  ACT shall acquire no rights with
respect to such new patents, inventions, discoveries, or technology not included
within the PATENT RIGHTS sublicensed, or the KNOW-HOW licensed, to ES by
ACT.

    

    ARTICLE 7 –
INDEMNIFICATION,

    LIMITATION OF LIABILITY AND
INSURANCE

    

    7.1          ES
shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold harmless ACT and its affiliates, successors, assigns, agents,
officers, directors, shareholders and employees (each, an “Indemnified Party”),
at ES’s sole cost and expense, against all liabilities of any kind whatsoever,
including legal expenses and 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 production, manufacture, sale, use, lease, performance,
consumption or advertisement of the LICENSED PRODUCTS or LICENSED SERVICES or
arising from any obligation, act or omission, or from a breach of any
representation or warranty of ES hereunder, excepting only claims that result
from (a) the willful misconduct or gross negligence of ACT, (b) any material
breach by ACT of its representations and warranties under this Agreement, and
(c) claims alleging that the use of any of the PATENT RIGHTS infringe upon any
patent, trade secret, or moral right of any third party.  The
indemnification obligations set forth herein are subject to the following
conditions: (i) the Indemnified Party shall notify ES in writing promptly upon
learning of any claim or suit for which indemnification is sought; (ii) ES 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 ES’s expense.

    

    7.2          ACT
shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold harmless ES and its AFFILIATES, successors, assigns, agents,
officers, directors, shareholders and employees, at ACT’s sole cost and expense,
against all liabilities of any kind whatsoever, including legal expenses and
reasonable attorneys’ fees, arising out of or resulting from (a) any breach or
default by ACT under the Kirin License Agreement, or (b) any breach of any
warranty or representation of ACT under this Agreement.

    

    7.3          EXCEPT
AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, ACT, ITS DIRECTORS,
OFFICERS, AGENTS, SHAREHOLDERS, EMPLOYEES, AND AFFILIATES MAKE NO
REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    EXPRESS
OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING,
AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING
IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN
BY ACT THAT THE PRACTICE BY ES OF THE LICENSE GRANTED HEREUNDER SHALL NOT
INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY.  IN NO EVENT SHALL ACT,
ITS DIRECTORS, OFFICERS, AGENTS, SHAREHOLDERS, EMPLOYEES AND AFFILIATES BE
LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC
DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER ACT SHALL
BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE
POSSIBILITY OF SUCH DAMAGES.

    

    7.4          ES
agrees to maintain insurance or self-insurance that is reasonably adequate to
fulfill any potential obligation to the indemnified parties.  ES 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.

    

    ARTICLE 8 –
TERMINATION

    

    8.1          This
Agreement shall be effective on the Effective Date and shall extend until the
expiration of the last to expire of the PATENT RIGHTS, or until May 9, 2016 if
not patents are issued, unless sooner terminated as provided in this Article
8.

    

    8.2          ACT
may terminate this Agreement and the rights, privileges and license granted
hereunder by written notice upon a breach or default of this Agreement by ES, as
follows:

    

    
      	
               
      

            	
              (i)

            	
              non-payment
      of any amounts due which is not cured within thirty (30) days of receipt
      of written notice of such non-payment wherein said notice is delivered by
      registered mail; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              breach
      of any obligation which is not cured within thirty (30) days of a written
      request to remedy such breach wherein said request is delivered by
      registered mail, or if the breach cannot be cured within said thirty (30)
      day period, failure of ES within said thirty (30) day period to proceed
      with reasonable promptness thereafter to cure the
  breach.

            

    

    

    Such
termination shall become automatically effective unless ES shall have cured any
such material breach or default prior to the expiration of the applicable cure
period.

    

    8.3          ES
shall have the right to terminate this Agreement at any time on three (3)
months’ prior notice to ACT, and upon payment of all amounts due ACT through the
effective date of the termination.

    

    8.4          Upon
termination of this Agreement for any reason, nothing herein shall be construed
to release either party from any obligation that matured prior to the effective
date of such termination; and Sections 5.1, Article 7, Article 9, and Article
11, and any other Sections or provisions which by their nature are intended to
survive termination, shall survive any such termination.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              ARTICLE 9 -
      CONFIDENTIALITY

            

    

    

    9.1          During
the course of this Agreement, ACT and ES may provide each other with
CONFIDENTIAL INFORMATION.  CONFIDENTIAL INFORMATION may be disclosed
in oral, visual or written form, and includes such information that is
designated in writing as such by the discloser at the time of disclosure, orally
disclosed information that is designated in writing as confidential within 30
days after such oral disclosure, or information which, under all of the given
circumstances ought reasonably be treated as CONFIDENTIAL INFORMATION of the
disclosing party. ACT and ES each intend to maintain the confidential or trade
secret status of their CONFIDENTIAL INFORMATION.  Each shall exercise
reasonable care to protect the CONFIDENTIAL INFORMATION of the other from
disclosure to third parties; no such disclosure shall be made without the
other’s written permission.  Upon termination or expiration of this
Agreement, ACT and/or ES shall comply with the other’s written request to return
all CONFIDENTIAL INFORMATION that is in written or tangible
form.  Except as expressly provided herein, neither ACT nor ES is
granted any license to use the other’s CONFIDENTIAL INFORMATION.  The
obligations of ACT and ES under this Article 9 shall survive any expiration or
termination of this Agreement.  Notwithstanding the preceding
provisions of this Section 9.1, until such time as this Agreement is
terminated:  (a) KNOW HOW and the content of any patent application
relating to or included in PATENT RIGHTS shall be deemed to be the LICENSEE’s
CONFIDENTIAL INFORMATION rather than ACT’s CONFIDENTIAL INFORMATION; (b)
LICENSEE shall have the right to disclose KNOW HOW and the content of patent
applications related to or included in PATENT RIGHTS to third parties without
restriction under this Agreement; and (c) LICENSEE shall not have any obligation
to ACT to treat KNOW HOW or the content of any patent application related to or
included in PATENT RIGHTS as ACT’s CONFIDENTIAL INFORMATION.

    

    9.2          The
parties agree that the specific terms (but not the overall existence) of this
Agreement shall be considered CONFIDENTIAL INFORMATION; provided, however, that
the parties may disclose the terms of this Agreement to investors or potential
investors, potential business partners, potential SUBLICENSEES and assignees,
potential co-developers, manufacturers, marketers, or distributors of any
LICENSED PRODUCT or LICENSED SERVICE, and in any prospectus, offering,
memorandum, or other document or filing required by applicable securities laws
or other applicable law or regulation.  The parties may also disclose
CONFIDENTIAL INFORMATION that is required to be disclosed to comply with
applicable law or court order, provided that the recipient gives reasonable
prior written notice of the required disclosure to the discloser and reasonably
cooperates with the discloser’s efforts to prevent such disclosure.

    

    ARTICLE 10 - PAYMENTS,
NOTICES, AND OTHER COMMUNICATIONS

    

    Any payment, notice or other
communication required to be given to any party will be deemed to have been
properly given and to be effective (a) on the date of delivery if delivered by
hand, recognized national next business day delivery service, confirmed
facsimile transmission, or confirmed electronic mail, or five (5) days after
mailing by registered or certified mail, postage prepaid, return receipt
requested, to the respective addresses given below, or to another address as it
shall designate by written notice given to the other party in the manner
provided in this Section.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      
        	              
      In the case of ACT:	Advanced Cell
      Technology, Inc.
	 	11100 Santa Monica
      Blvd, Suite 850
	 	Los Angeles, CA
      90025
	 	Attention: 
      William M. Caldwell, IV

      

    

    

    
      
        	               With
      a copy to:	Pierce Atwood
      LLP
	 	One Monument
      Square
	 	Portland, ME
      0401
	 	Attention: 
      William L. Worden, Esq.

      

               

    

    
      
        	              
      In the case of ES	Embryome
      Sciences, Inc.
	
                 
      

              	
                1301
      Harbor Bay Parkway, Suite 100

              

      

    

    
      	
               
      

            	
              Alameda,
      California 94502

            

    

    
      	
               
      

            	
              Attention:  Michael
      D. West

            

    

    

    
      	
                           
      With a copy to:

            	
              Richard
      S. Soroko, Esq.

            

    

    
      	
               
      

            	
              Lippenberger,
      Thompson, Welch, Soroko & Gilbert
LLP

            

    

    
      	
               
      

            	
              201
      Tamal Vista Blvd.

            

    

    
      	
               
      

            	
              Corte
      Madera, California 94925

            

    

    

    ARTICLE 11 - REPRESENTATIONS
AND WARRANTIES

    

    11.1        ES
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 ES, enforceable in accordance with its terms, and that the
execution and performance of this Agreement by ES will not violate, contravene
or conflict with any other agreement to which ES is a party or by which it is
bound or with any law, rule or regulation applicable to ES, and that any
permits, consents or approvals necessary or appropriate for ES to enter into
this Agreement have been obtained.

    

    11.2       
ES is an entity duly incorporated or otherwise organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or
organization, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.

    

    11.3        ACT
represents and warrants that (a) the Kirin License Agreement is in full force
and effect, (b) it has the full legal right and power to enter into this
Agreement and to grant the sublicenses granted hereunder, (c) that this
Agreement constitutes the binding legal obligation of ACT, enforceable in
accordance with its terms, (c) the execution, delivery, and performance of this
Agreement by ACT will not violate, contravene or conflict with the Kirin License
Agreement or 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 owns the
KNOW-HOW, and (e) any permits, consents or approvals necessary or appropriate
for ACT to enter into this Agreement have been obtained.

    

    11.4        ACT
represents and warrants that, to the best of its knowledge, the use of the
PATENT RIGHTS and KNOW-HOW by ES or any AFFILIATE or SUBLICENSEE of ES for any
purposes contemplated or permitted by this Agreement, will not infringe in any
way any claim under any patent held by any third party.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    11.5        ACT
represents and warrant that the use of the PATENT RIGHTS and KNOW-HOW by ES or
any AFFILAITE or SUBLICENSEE of ES for any purposes contemplated or permitted by
this Agreement, will not infringe in any way any claim under any patent held by
ACT or under any patent that may issue from any ACT patent application now
pending, or under any patent that ACT may in the future obtain, or any other
intellectual property rights of ACT.

    

    11.6        ACT
further represents, warrants and agrees, that it shall not make any claim or
demand, or commence any lawsuit or other proceeding, alleging that use of the
PATENT RIGHTS and KNOW-HOW by ES or any AFFILIATE or SUBLICENSEE of ES for any
purpose contemplated or permitted by this Agreement infringes in any way any
claim under any patent held by ACT or under any patent that may issue from any
ACT patent application now pending, or under any patent that ACT may in the
future obtain, or any other intellectual property rights of ACT.  The
provisions of this Section 11.6 shall pertain as well to all subsidiaries of ACT
and all patents and patent applications of ACT subsidiaries.  ACT and
its subsidiaries shall cause the provisions of this Section 11.6, as they
pertain to refraining from asserting claims and demands or commencing lawsuits
and proceedings, to be including in all licenses and assignments of ACT’s
patents and patent applications.

    

    

    11.7        This
Article 11 shall survive expiration or termination of this
Agreement.

    

    ARTICLE 12 - MISCELLANEOUS
PROVISIONS

    

    12.1        Nothing
herein shall be deemed to constitute either party as the agent or representative
of the other party.

    

    12.2        To
the extent commercially feasible, and consistent with prevailing business
practices, all products manufactured or sold under this Agreement will be marked
with the number of each issued patent that applies to such product.

    

    12.3        This
Agreement shall be construed, governed, interpreted and applied in accordance
with the laws of California, 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.

    

    12.4        The
parties hereto acknowledge that this Agreement (including the Exhibits hereto)
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 hereto.

    

    12.5        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.

    

    12.6        The
failure of either party to assert a right hereunder or to insist upon compliance
with

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    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.

    

    12.7       
Licenses of
Intellectual Property; Bankruptcy Code.  The parties agree that
the sublicenses granted to ES to use PATENT RIGHTS constitute licenses of
“intellectual property” as defined in the United States Bankruptcy Code (the
“Bankruptcy Code”) and as used in Section 365(n) of the Bankruptcy
Code.  The Parties agree that the KNOW-HOW includes trade
secrets.  The parties also agree that the payments of royalties on Net
Sales and Sublicense Revenue required to be paid by ES to ACT under this
Agreement constitute “royalties” under Section 365(n) of the Bankruptcy
Code.

    

    

    

    [The next
page is the signature page]

    

    

    

    

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties have
duly executed this Agreement as of the Effective Date set forth
above.

    

    ADVANCED
CELL TECHNOLOGY, INC.

    

    
      

      By:
  /s/
William M. Caldwell,
IV              

      Printed
Name:  William M. Caldwell, IV

      Title:  Chairman
& CEO

      

      

      By: /s/
William M. Caldwell,
IV                

      Printed
Name: William M. Caldwell, IV

      Title:  Secretary

      

      

      EMBRYOME
SCIENCES, INC.

      

      

      By: /s/
Michael D.
West                             

      Printed
Name: Michael D. West

      Title:
Chief Executive Officer

      

      

      By: /s/
Judith
Segall                                     

      Printed
Name: Judith Segall

      Title:
Secretary

       

      
 

      13ex10_35.htm

    Exhibit
10.35

     

    
 

    FOURTH
AMENDMENT OF REVOLVING LINE OF CREDIT AGREEMENT

    

    

    This
Fourth Amendment of Revolving Line of Credit Agreement is made and entered into
as of November 14, 2008, by and among each of the persons who have executed this
Agreement as a Lender (each a “Lender,” and collectively “Lenders”), and
BioTime, Inc., a California corporation (“Borrower”), and amends that certain
Third Amended and Restated Credit Agreement dated March 31, 2008.  The
Third Amended and Restated Credit Agreement, dated March 31, 2008, as amended by
this Fourth Amendment of Revolving Credit Agreement is referred to as the
“Credit Agreement”.

    

    The
Credit Agreement is amended as follows:

    

    1.           Definitions: 

    

    (a)           “Fourth Amendment” means this
Fourth Amendment of Revolving Line of Credit Agreement.

    

    (b)           “Credit Facility” means the
right of Borrower to borrow up to $3,500,000 from Lenders under the terms and
conditions of this Credit Agreement and the Note.

    

    (c)           “Maturity Date” means (i)
April 15, 2009 with respect to any Note issued for an additional Loan commitment
under this Fourth Amendment, (ii) April 15, 2009 with respect to any Note issued
under the Third Amended and Restated Credit Agreement or an earlier amendment of
the Credit Agreement, if the Lender has signed an Amendment of Revolving Credit
Note extending the Maturity Date, or (iii) November 15, 2008 with respect to any
Note issued under the Third Amended and Restated Credit Agreement or an earlier
amendment of the Credit Agreement as to which clause (ii) does not
apply.

    

    (d)           “Note” means (a) each
promissory note evidencing a portion of the Loan previously advanced by certain
Lenders, and (b) each Revolving Credit Note in the form attached as EXHIBIT A-1
evidencing the new Loan amounts to be advanced by certain Lenders.

    

    (e)           “Security Agreement” means
that certain Third Amended and Restated Security Agreement, dated March 31,
2008, as amended by a Fourth Amendment of Security Agreement among Borrower and
Lenders pursuant to which Borrower is granting Lenders a first priority
perfected security interest in certain specified collateral to secure Borrower’s
obligations under this Agreement and the Note.

    

    2.           Maximum Loan
Amount.  The Maximum Loan Amount shall be Three Million Five
Hundred Thousand Dollars ($3,500,000).

    

    3.           Draw Period.  The
Draw Period shall end on April 15, 2009.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Extension of Maturity
Date.  Any Lender holding a Note due November 15, 2008 may
extend the Maturity Date of that Note to April 15, 2009 by executing and
delivering to Borrower an Amendment of Revolving Credit Note in the form of
Exhibit B.

    

    5.           Earmarked Funds; Mandatory
Prepayment.  The definition of Earmarked Funds and all
references to Earmarked Funds, including the mandatory prepayment of principal
pursuant to Section 3.2.1 of the Credit Agreement, shall not apply.

    

    6.           Shares.  Borrower
shall issue and deliver to certain Lenders a number of Shares having an
aggregate market value equal to six percent (6%) of the Lender’s Loan commitment
having an April 15, 2009 Maturity Date (including any new or additional Loan
commitment, and the principal amount of any Loan as to which the Lender extended
the Maturity Date by executing an Amendment of Revolving Credit
Note).  Shares will be issued only to those Lenders who (a) agree to
make all or a portion of the additional $1,000,000 of the Credit Facility
available under this Fourth Amendment, or (b) agree to extend the Maturity Date
of their Note to April 15, 2009 by executing an Amendment of Revolving Credit
Note.  No fractional Shares shall be issued.  For the
purpose of determining the number of Shares to be issued to a Lender entitled to
receive Shares, the market value shall be deemed to be the closing price of the
Shares on the OTCBB on the last day on which a closing price of the Shares was
reported prior to the date on which the Lender executed and delivered this
Fourth Amendment.

    

    7.           Disclosure
Documents.  Borrower has delivered to Lenders following reports
filed by Borrower under Securities Exchange Act of 1934, as amended (the
“Exchange Act”):  (a) a copy of Borrower’s annual report on Form
10-KSB for the fiscal year ended December 31, 2007, and quarterly report on Form
10-Q for the fiscal quarter and six months ended June 30, 2008, and all Current
Reports on Form 8-K filed by Borrower since August 15, 2008 (the “Current
Disclosure Documents”).  The financial statements contained in the
Current Disclosure Documents were prepared in accordance with generally accepted
accounting principles, consistently applied, and accurately reflect the
financial condition and results of operations of Borrower at and as of the dates
reported.  All financial information and other information contained
in the Current Disclosure Documents was true and correct in all material
respects when such reports were filed under the Exchange Act.

    

    8.           Exchange of Debt For
Equity.  Notes that had a November 15, 2008 Maturity Date may
be exchanged, in whole or in part, including both unpaid principal and accrued
interest, for (a) BioTime Exchange Shares at a price of $1.00 per share until
November 15, 2008, or (b) BioTime Exchange Shares at a price of $1.25 per share
after November 15, 2008 and until April 15, 2009 if the Lender has executed an
Amendment of Revolving Credit Note, or (c) ESI Exchange Shares at a price of
$2.00 per share until November 15, 2008, or (d) ESI Exchange Shares at a price
of $2.25 per share after November 15, 2008 and until April 15, 2009 if the
Lender has executed an Amendment of Revolving Credit Note.  Notes
having a Maturity Date of April 15, 2009 that were issued for a new Loan
commitment under this Fourth Amendment, may be exchanged, in whole or in part,
including both unpaid principal and accrued interest, for (x) BioTime Exchange
Shares at a price of $1.50 per share until April 15, 2009, or (y) ESI
Exchange

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Shares at
a price of $2.50 per share until April 15, 2009.  All other provisions
of Section 17 of the Credit Agreement shall apply.

    

    9.           Other Provisions of Credit Agreement
Apply.  Except as modified or amended by this Fourth Amendment,
all provisions of the Third Amended and Restated Revolving Line of Credit
Agreement shall remain in full force and effect.  Any Lender who has
not previously executed the Third Amended and Restated Revolving Line of Credit
Agreement shall, by executing this Fourth Amendment, (a) acknowledge receipt of
the Third Amended and Restated Revolving Line of Credit Agreement, (b) agree to
be bound by all terms and conditions of the Third Amended and Restated Revolving
Line of Credit Agreement, as amended by this Fourth Amendment, and (c) shall be
deemed to have made the representations and warranties set forth in Section 20
of the Third Amended and Restated Revolving Line of Credit Agreement, except
that references to the Disclosure Documents shall instead mean the Current
Disclosure Documents.

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

    

    

    BORROWER:

    

    BIOTIME,
INC.

    

    

    By 
/s/ Michael D.
West                                                        
          

    

    Title 
CEO                                                           
                            

    By 
/s/ Judith
Segall                                                                        

    Title
Vice President &
Secretary                                   
             

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    LENDERS:

    

    

    /s/
Alfred D.
Kingsley                                                                        

    Alfred
D.  Kingsley

    

    

    GREENWAY
PARTNERS, L.P.

    By:         Greenhouse
Partners, L.P.,

    General Partner

    

    

    By   /s/
Alfred D.
Kingsley                                                         
      

    Alfred D. Kingsley, General
Partner

    

     

    Broadwood
Partners, L.P.

    

    By:                      Broadwood
Capital, Inc.,

    General Partner of Broadwood Partners,
L.P.

    

    

                   By:  /s/ Neal C.
Bradsher                                                
 

    Neal C. Bradsher,
President

    

    Goren
Brothers, LP

    

    

    By:  
/s/ Alex
Goren                                                                        

    

    Title:  General
Partner

    

    
 

    /s/
Joseph
Nemeth                                                                          

    Joseph Nemeth

    

    

     

    /s/
Justin
Bayern                                                                            

    Justin Bayern

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    SCHEDULE
I

    

    Loan
Commitment—April 15, 2009 Maturity Date

    

    
 

    
      
        
          
            
              	
                      Name and Address Of Lender

                    	 
      	
                      Amount of Loan
Commitment

                    
	 
      	 
      	 
      	 
      
	
                      Alfred
      D. Kingsley

                    	 
      	 
      	
                      $250,000

                    
	
                      150
      East 57 th
      Street, Suite 24E

                    	 
      	 
      	 
      
	
                      New
      York, NY 10022

                    	 
      	 
      	 
      
	
                      FAX:  (212)
      207-3901

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      Greenway
      Partners, LP

                    	 
      	 
      	
                      $300,000

                    
	
                      c/o
      Alfred D. Kingsley

                    	 
      	 
      	 
      
	
                      150
      East 57 th
      Street, Suite 24E

                    	 
      	 
      	 
      
	
                      New
      York, NY 10022

                    	 
      	 
      	 
      
	
                      FAX:  (212)
      207-3901

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      Broadwood
      Partners, L.P.

                    	 
      	 
      	
                      $550,000

                    
	
                      724
      Fifth Avenue

                    	 
      	 
      	 
      
	
                      9
      th
      Floor

                    	 
      	 
      	 
      
	
                      New
      York, NY 10019

                    	 
      	 
      	 
      
	
                      FAX:  (212)
      508-5756

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      Goren
      Brothers, LP

                    	 
      	 
      	
                      $200,000

                    
	
                      150
      E. 52nd Street, 29th Fl.

                    	 
      	 
      	 
      
	
                      New
      York, NY 10022

                    	 
      	 
      	 
      
	
                      FAX:
      (212) 759-0572

                    	 
      	 
      	 
      

            

          

        

      

    

    

      
        
          
            
              	
                      Joseph
      Nemeth

                    	 
      	 
      	
                      $100,000

                    
	
                      29829
      Telegraph Road, Suite 111

                    	 
      	 
      	 
      
	
                      Southfield,
      MI 48034

                    	 
      	 
      	 
      
	
                      FAX:
      (248) 357-1626

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      Justin
      Bayern

                    	 
      	 
      	
                      $50,000

                    
	
                      26
      West Broadway, Apt 1004

                    	 
      	 
      	 
      
	
                      Long
      Beach, NY 11561

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

            

          

        

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    EXHIBIT
A-1

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    REVOLVING CREDIT
NOTE

    

    

    

    $___________ __________,
2008

    

    FOR VALUE
RECEIVED, the undersigned, BioTime, Inc., a California corporation (Borrower")
hereby promises to pay to the order of ___________("Lender") the principal sum
of _____________ DOLLARS ($_______________) or such lesser amount as may from
time to time be outstanding as the Loan pursuant to that certain Fourth
Amendment of Revolving Line of Credit Agreement, dated ________________, ___,
2008, between Borrower and Lender, together with interest on the unpaid balance
of the Loan at the rate or rates hereinafter set forth.  This
Revolving Credit Note is one of the Notes described in the Fourth Amendment of
Revolving Line of Credit Agreement.  As used in this Note the term
“Credit Agreement” means the Third Amended and Restated Revolving Line of Credit
Agreement, dated March 31, 2008, as amended by the Fourth Amendment of Revolving
Line of Credit Agreement.  All capitalized terms not otherwise defined
in this Note shall have the meanings defined in the Credit
Agreement.

    

    1.           Terms
of Payment.

    

    (a)           Interest
Rate.  Interest shall accrue and be payable at the rate of 12%
per annum on the outstanding principal balance of the Loan.  Interest
shall accrue from the date of each disbursement of principal pursuant to a
Draw.  Accrued interest shall be paid with principal. Interest will be
charged on that part of outstanding principal of the Loan which has not been
paid and shall be calculated on the basis of a 360-day year and a 30-day
month.

    

    (b)           Payments of
Principal.  The outstanding principal balance of the Loan,
together with accrued interest, shall be paid in full on the Maturity
Date.

    

    (c)           Optional Prepayment of
Principal.  Borrower may prepay principal, with accrued
interest, at any time and the amount of principal so prepaid shall be available
for further Draws by Borrower during the Draw Period.

    

    (d)           Default Interest
Rate.  In the event that any payment of principal or interest
is not paid within five (5) days from on the date on which the same is due and
payable, such payment shall continue as an obligation of the Borrower, and
interest thereon from the due date of such payment and interest on the entire
unpaid balance of the Loan shall accrue until paid in full at the lesser of (i)
fifteen percent (15%) per annum, or (ii) the highest interest rate permitted
under applicable law (the "Default Rate").  From and after the
Maturity Date or upon acceleration of the Note, the entire unpaid principal
balance of the Loan with all unpaid interest accrued thereon, and any and all
other fees and charges then due at such maturity, shall bear interest at the
Default Rate.

    
      
        
           

          

        

         

      

      
        8

        
          

        

      

      
         

      

    

                                 
(e)           Date of Payment.  If
the date on which a payment of principal or interest on the Loan is due is a day
other than a Business Day, then payment of such principal or interest need not
be made on such date but may be made on the next succeeding Business
Day.

    

    (f)           Application of
Payments.  All payments shall be applied first to costs of
collection, next to late charges or other sums owing Lender, next to accrued
interest, and then to principal, or in such other order or proportion as Lender,
in its sole discretion, may determine.

    

    (g)           Currency.  All
payments shall be made in United States Dollars.

    

    2.           Events of
Default.  The following shall constitute Events of Default: (a)
the default of Borrower in the payment of any interest or principal due under
this Note or the Credit Agreement or any other Note arising under the Credit
Agreement; (b) the failure of Borrower to perform or observe any other term or
provision of this Note, or any other Note arising under the Credit Agreement, or
any term, provision, covenant, or agreement in the Credit Agreement or any other
Loan Document; (c) any act, omission, or other event that constitutes an "Event
of Default" under the Credit Agreement; (d) any representation or warranty of
Borrower contained in the Credit Agreement or in any other Loan Document, or in
any certificate delivered by Borrower pursuant to the Credit Agreement or any
other Loan Document, is false or incorrect in any material respect when made or
given; (e) Borrower becoming the subject of any order for relief in a proceeding
under any Debtor Relief Law (as defined below); (f) Borrower making an
assignment for the benefit of creditors; other than repayment of the Loan, in
whole or in part, to Lenders; (g) Borrower applying for or consenting to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator, or similar officer for it or for all or any part of its property
or assets; (h) the appointment of any receiver, trustee, custodian, conservator,
liquidator, rehabilitator, or similar officer for Borrower, or for all or any
part of the property or assets of Borrower, without the application or consent
of Borrower, if such appointment continues undischarged or unstayed for sixty
(60) calendar days; (i) Borrower instituting or consenting to any proceeding
under any Debtor Relief Law with respect to Borrower or all or any part of its
property or assets, or the institution of any similar case or proceeding without
the consent of Borrower, if such case or proceeding continues undismissed or
unstayed for sixty (60) calendar days; (j) the dissolution or liquidation of
Borrower, or the winding-up of the business or affairs of Borrower; (k) the
taking of any action by Borrower to initiate any of the actions described in
clauses (e) through (j) of this paragraph; (l) the issuance or levy of any
judgment, writ, warrant of attachment or execution or similar process against
all or any material part of the property or assets of Borrower if such process
is not released, vacated or fully bonded within sixty (60) calendar days after
its issue or levy; or (m) any breach or default by Borrower under any loan
agreement, promissory note, or other instrument evidencing indebtedness payable
to a third party. As used in this Note, the term "Debtor Relief Law" means the
Bankruptcy Code of the United States of America, as amended, or any other
applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief law affecting
the rights of creditors generally.

    

    3.           Remedies On
Default.  Upon the occurrence of an Event of Default, at
Lender's option, all unpaid principal and accrued interest, and all other
amounts payable under this Note shall become immediately due and payable without
presentment, demand, notice of non

    
      
        
           

          

        

         

      

      
        9

        
          

        

      

      
         

      

    

    payment,
protest, or notice of non-payment.  Lender also shall have all other
rights, powers, and remedies available under the Credit Agreement and any other
Loan Document, or accorded by law or at equity.  All rights, powers,
and remedies of Lender may be exercised at any time by Lender and from time to
time after the occurrence of an Event of Default.  All rights, powers,
and remedies of Lender in connection with this Note and any other Loan Document
are cumulative and not exclusive and shall be in addition to any other rights,
powers, or remedies provided by law or equity.

    

    4.           Miscellaneous.

    

    (a)           Borrower
and all guarantors and endorsers of this Note severally waive (i) presentment,
demand, protest, notice of dishonor, and all other notices; (ii) any release or
discharge arising from any extension of time, discharge of a prior party,
release of any or all of the security for this Note, and (iii) any other cause
of release or discharge other than actual payment in full of all indebtedness
evidenced by or arising under this Note.

    

    (b)           No
delay or omission of Lender to exercise any right, whether before or after an
Event of Default, shall impair any such right or shall be construed to be a
waiver of any right or default, and the acceptance of any past-due amount at any
time by the Lender shall not be deemed to be a waiver of the right to require
prompt payment when due of any other amounts then or thereafter due and
payable.  The Lender shall not be deemed, by any act or omission, to
have waived any of Lender's rights or remedies under this Note unless such
waiver is in writing and signed by Lender and then only to the extent
specifically set forth in such writing.  A waiver with reference to
one event shall not be construed as continuing or as a bar to or waiver of any
right or remedy as to a subsequent event.

    

    (c)           Lender
may accept, indorse, present for payment, and negotiate checks marked "payment
in full" or with words of similar effect without waiving Lender's right to
collect from Borrower the full amount owed by Borrower.

    

    (d)           Time is of the essence under this
Note.  Upon any Event of Default, the Lender may exercise all
rights and remedies provided for in this Note and by law, including, but not
limited to, the right to immediate payment in full of this Note.

    

    (e)           The
rights and remedies of the Lender as provided in this Note, in the Credit
Agreement, and in the Security Agreement and in law or equity, shall be
cumulative and concurrent, and may be pursued singularly, successively, or
together at the sole discretion of the Lender, and may be exercised as often as
occasion therefor shall occur; and the failure to exercise any such right or
remedy shall in no event be construed as a waiver or a release of any such right
or remedy.

    

    (f)           It
is expressly agreed that if this Note is referred to an attorney or if suit is
brought to collect this Note or any amount due under this Note, or to enforce or
protect any rights conferred upon Lender by this Note then Borrower promises and
agrees to pay on demand all costs, including without limitation, reasonable
attorneys' fees, incurred by Lender in the enforcement of Lender's rights and
remedies under this Note, and such other agreements.

    
      
        
           

          

        

         

      

      
        10

        
          

        

      

      
         

      

    

    

    (g)           The
terms, covenants, and conditions contained in this Note shall be binding upon
the heirs, executors, administrators, successors, and assigns of Borrower, and
each of them, and shall inure to the benefit of the heirs, executors,
administrators, successors and assigns of Lender.

    

    (h)           This
Note shall be construed under and governed by the laws of the State of
California without regard to conflicts of law.

    

    (i)           No
provision of this Note shall be construed or so operate as to require the
Borrower to pay interest at a greater rate than the maximum allowed by
applicable state or federal law.  Should any interest or other charges
paid or payable by the Borrower in connection with this Note or the Loan result
in the computation or earning of interest in excess of the maximum allowed by
applicable state or federal law, then any and all such excess shall be and the
same is hereby waived by Lender, and any and all such excess paid shall be
credited automatically against and in reduction of the outstanding principal
balance due of the Loan, and the portion of said excess which exceeds such
principal balance shall be paid by Lender to the Borrower.

    

    BORROWER:                                                      BIOTIME,
INC.

    

    

    By
_____________________________________________

    Title
___________________________________________

    

    By
_____________________________________________

    Title
____________________________________________

    
       

      

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    AMENDMENT OF REVOLVING
CREDIT NOTE

    

    

    

    $___________ __________,
2008

    

    Reference
is made to that certain Revolving Credit Note dated ______, 2008, in the
principal sum of _____________ DOLLARS ($_______________) made by BioTime, Inc.,
as “Borrower,” and payable the order of the undersigned as “Lender” (the
“Note”).  The Maturity Date of the Note is hereby extended to April
15, 2009.  The Note, as so amended, shall be governed by that certain
Fourth Amendment of Revolving Line of Credit Agreement, dated September ___,
2008, between Borrower and Lender.

    

    

    LENDER:

    

    

    _________________________________________

    (Please Print Name of
Lender)

    

    

    By:  ______________________________________

    (Signature)

    

    Title:  _____________________________________

    (Please Show Title If
Applicable)

    

    

    BORROWER:

    

    BIOTIME,
INC.

    

    

    By
_____________________________________________

    

    Title
___________________________________________

    

    

    By
_____________________________________________

    

    Title
____________________________________________

    

     

     

     

    13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]