Document:

Document

EXECUTION COPY

Exhibit 4(d)

Loan Agreement

Between

Mississippi Business Finance Corporation

And

System Energy Resources, Inc.

Dated as of June 1, 2021

    

$83,695,000
Mississippi Business Finance Corporation
Revenue Refunding Bonds
(System Energy Resources, Inc. Project)
Series 2021
    

TABLE OF CONTENTS
						
	ARTICLE I
DEFINITIONS

	SECTION 1.1    Definitions
	3

	SECTION 1.2    Use of Words and Phrases
	6

	SECTION 1.3    Nontaxability
	6

	ARTICLE II
REPRESENTATIONS

	SECTION 2.1    Representations and Warranties of the Issuer
	7

	SECTION 2.2    Representations and Warranties of the Company
	7

	ARTICLE III
THE FACILITIES

	SECTION 3.1    Maintenance of Facilities; Remodeling
	9

	SECTION 3.2    Insurance
	9

	SECTION 3.3    Condemnation; Eminent Domain
	9

	ARTICLE IV
ISSUANCE OF BONDS; DISPOSITION OF PROCEEDS OF BONDS

	SECTION 4.1    Issuance of the Series 2021 Bonds
	10

	SECTION 4.2    Additional Bonds
	10

	SECTION 4.3    Disposition of Bond Proceeds
	10

	SECTION 4.4    Agreement to Redeem 2019 Bonds
	10

	ARTICLE V
THE LOAN; OTHER OBLIGATIONS; FIRST MORTGAGE BONDS

	SECTION 5.1    Loan
	11

	SECTION 5.2    Loan Payments
	11

	SECTION 5.3    Bond Fund
	11

	SECTION 5.4    Payments to Issuer
	11

	SECTION 5.5    Payments Assigned; Obligation Absolute
	11

	SECTION 5.6    Payment of Expenses
	12

	SECTION 5.7    Indemnification
	12

	SECTION 5.8    Payment of Taxes; Discharge of Liens
	13

	SECTION 5.9    Issuance, Delivery and Surrender of First Mortgage Bonds, Additional
Security
	14

	ARTICLE VI
SPECIAL COVENANTS AND AGREEMENTS

	SECTION 6.1    Maintenance of Existence
	15

	SECTION 6.2    Arbitrage Covenant
	16

	SECTION 6.3    Bonds are Limited Obligations
	16

	SECTION 6.4    Tax-Exempt Status of Bonds
	16

	SECTION 6.5    Compliance with Law
	18

i

						
	SECTION 6.6    No Warranty
	18

	SECTION 6.7    Continuing Disclosure
	18

	ARTICLE VII
ASSIGNMENT, LEASING AND SELLING

	SECTION 7.1    Limitation
	18

	SECTION 7.2    Issuer's Rights of Assignment
	18

	SECTION 7.3    Assignment by the Company
	19

	ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES

	SECTION 8.1    Events of Default
	20

	SECTION 8.2    Force Majeure
	20

	SECTION 8.3    Remedies on Default
	20

	SECTION 8.4    No Remedy Exclusive
	21

	SECTION 8.5    Agreement to Pay Attorneys' Fees and Expenses
	21

	SECTION 8.6    Waiver of Breach
	21

	ARTICLE IX
REDEMPTION OR PURCHASE OF BONDS

	SECTION 9.1    Redemption of Bonds
	23

	SECTION 9.2    Purchase of Bonds
	23

	ARTICLE X
MISCELLANEOUS

	SECTION 10.1    Notices
	24

	SECTION 10.2    Severability
	24

	SECTION 10.3    Execution of Counterparts; Electronic Signatures
	24

	SECTION 10.4    Amounts Remaining in Bond Fund
	25

	SECTION 10.5    Amendments, Changes and Modifications
	25

	SECTION 10.6    Governing Law
	25

	SECTION 10.7    Authorized Company Representatives
	25

	SECTION 10.8    Term of the Agreement
	25

	SECTION 10.9    No Personal Liability
	25

	SECTION 10.10    Parties in Interest
	25

Exhibit A – Continuing Disclosure Agreement
 
ii

LOAN AGREEMENT
This Loan Agreement dated as of June 1, 2021 (together with any amendments and supplements hereto, this "Agreement"), is between the Mississippi Business Finance Corporation (as more fully defined in Section 1.1 hereof, the "Issuer"), a public corporation duly created and validly existing pursuant to the constitution and laws of the State of Mississippi (the "State"), authorized to exercise the powers conferred by Sections 57-10-201 et seq., Mississippi Code of 1972, as amended and supplemented from time to time (the "Act") and System Energy Resources, Inc., a corporation organized and existing under the laws of the State of Arkansas, duly qualified to do business in the State (together with any permitted successors or assigns under this Agreement, the "Company").
W I T N E S S E T H:
WHEREAS, the Issuer is authorized by the provisions of the Act, among other things, to provide financial assistance to businesses in the State by providing loans, guarantees, insurance and other assistance to businesses, thereby encouraging the investment of private capital in businesses in the State, and to finance such assistance to businesses by the issuance of revenue bonds; and
WHEREAS, the Company has requested that the Issuer issue $83,695,000 of its Revenue Refunding Bonds (System Energy Resources, Inc. Project) Series 2021 (as more fully defined in Section 1.1 hereof, the "Series 2021 Bonds") for the purpose of currently refunding $83,695,000 in aggregate principal amount of its Revenue Refunding Bonds (System Energy Resources, Inc. Project) Series 2019 issued in the original principal amount of $134,000,000 (the "Series 2019 Bonds") which refunded its Pollution Control Revenue Refunding Bonds (System Energy Resources, Inc. Project) Series 1998 (the "Series 1998 Bonds") issued in the original principal amount of $216,000,000, which Series 1998 Bonds were issued for the purpose of providing funds to refinance the Prior Bonds (as more fully defined in Section 1.1 hereof) issued to finance the cost of acquiring an undivided 90% interest in certain air and water pollution control facilities and sewage and solid waste disposal facilities (the "Facilities") at the Grand Gulf Nuclear Station  located in Claiborne County, Mississippi (the "Plant"); and
WHEREAS, the Issuer may authorize and issue Additional Bonds (as defined in Section 1.1 of this Agreement) pursuant to Section 2.11 of the Trust Indenture dated as of June 1, 2021 (as more fully defined in Section 1.1 hereof, the "Indenture") by and between the Issuer and The Bank of New York Mellon, as trustee (as more fully defined in Section 1.1 hereof, the "Trustee"), and Section 4.2 of this Agreement; and
WHEREAS, in consideration of the issuance of the Bonds (as defined in Section 1.1 of this Agreement) by the Issuer, the Company will agree to make payments in an amount sufficient to pay the principal of, premium, if any, and interest on the Bonds pursuant to this Agreement, said Bonds to be paid solely from the Revenues (as defined in Section 1.1 of this Agreement), and said Bonds shall not constitute an indebtedness or pledge of the general credit of the Issuer or the State, within the meaning of any constitutional or statutory limitation of indebtedness or otherwise; and
1

WHEREAS, the execution and delivery of this Agreement under the Act have been in all respects duly and validly authorized by resolution duly adopted by the Issuer on May 12, 2021;
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration and the mutual benefits, covenants and agreements herein expressed, the Issuer and the Company agree as follows (provided that any obligation of the Issuer created by or arising out of this Agreement shall not impose a debt or pecuniary liability upon the State or any political subdivision thereof, or a charge upon the general credit or taxing powers of such bodies, but shall be payable solely out of the Revenues (as defined in Section 1.1 of this Agreement) and, to the extent provided in this Agreement, out of the proceeds of the sale of the Series 2021 Bonds and any temporary investment thereof as herein provided).

2

ARTICLE I
DEFINITIONS
Section 1.1    Definitions.  In addition to the words and terms elsewhere defined in this Agreement or in the Indenture, the following words and terms as used in this Agreement shall have the following meanings unless the context or use indicates another or different meaning: 
"Act" shall have the meaning set forth in the preamble of this Agreement.
"Additional Bonds" shall mean Bonds in addition to the Series 2021 Bonds that are issued pursuant to the provisions of Section 2.11 of the Indenture.
"Administration Expenses" shall mean the reasonable and necessary fees, costs and expenses incurred by the Issuer with respect to this Agreement, the Indenture and any transaction or event contemplated by this Agreement or the Indenture including the compensation and reimbursement of fees, costs and expenses and advances payable to the Trustee, any paying agent, any co-paying agent, and the registrar under the Indenture.  
"Authorized Company Representative" shall mean any treasurer, assistant treasurer or vice president of the Company or the person or persons at the time designated to act on behalf of the Company by any one of said officers, such designation in each case, to be evidenced by a certificate furnished to the Issuer and the Trustee containing the specimen signature of such person or persons and signed on behalf of the Company by said officer. 
"Availability Agreement" shall mean the Availability Agreement dated as of June 21, 1974, as amended from time to time, by and among the Company, Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC and Entergy New Orleans, LLC.
"Bond Counsel" shall mean any firm of nationally recognized municipal bond counsel selected by the Company and acceptable to the Issuer and the Trustee.  
"Bond Fund" shall mean the fund by that name created and established in Section 5.1 of the Indenture. 
"Bonds" shall mean the Series 2021 Bonds and any Additional Bonds issued by the Issuer pursuant to the Indenture.
"Code" shall mean the Internal Revenue Code of 1986, as amended and supplemented. 
"Company" shall have the meaning set forth in the preamble of this Agreement.
"Company Mortgage" shall mean the Company's Mortgage and Deed of Trust, dated as of June 15, 1977, made to The Bank of New York Mellon, as successor trustee, as amended, restated and supplemented by the Twenty-Fourth Supplemental Indenture dated as of September 1, 2012, and has been previously, and as may be further, amended or supplemented, including by 
3

the officer’s certificate pursuant to which the series of First Mortgage Bonds relating to the Series 2021 Bonds will be issued.
"Company Mortgage Trustee" shall mean the trustee under the Company Mortgage.
"Continuing Disclosure Agreement" shall mean the agreement substantially in the form of Exhibit A hereto.
"Costs of Issuance" shall mean all fees, charges and expenses incurred in connection with the authorization, preparation, sale, issuance and delivery of the Bonds and the First Mortgage Bonds, including, without limitation, financial, legal and accounting fees, expenses and disbursements, rating agency fees, the Issuer's expenses attributable to the issuance of the Bonds, the cost of printing, engraving and reproduction services and the initial or acceptance fee of the Trustee, all of which shall be paid by the Company with funds other than the proceeds of the Bonds.
"Event of Default" shall mean any event of default specified in Section 8.1 hereof.
"Facilities" shall mean certain air and water pollution control facilities and sewage and solid waste disposal facilities at the Grand Gulf Nuclear Station located in Claiborne County, Mississippi.
"First Mortgage Bonds" shall mean one or more series of bonds issued and delivered under the Company Mortgage and held by the Trustee pursuant to Section 5.9 of this Agreement.
"Hazardous Substances" shall mean any substance or material defined in or designated as hazardous or toxic wastes, hazardous or toxic material, a hazardous, toxic or radioactive substance, or other similar term, by any environmental law now or hereafter in effect, other than those used, collected, treated, disposed, stored, controlled, removed or cleaned up in the ordinary course of the Company’s business, which the Company represents and warrants that it will use, collect, treat, dispose, store, control, remove or clean up in accordance with any applicable law or regulation.
"Indenture" shall mean the Trust Indenture dated as of June 1, 2021 by and between the Issuer and the Trustee securing the Bonds, and any amendments and supplements thereto.
"Issuer" shall mean the Mississippi Business Finance Corporation, a public corporation duly created and validly existing pursuant to the constitution and laws of the State, including the Act, or any successor to its rights and obligations under this Agreement and the Indenture.
"Loan Payments" means the payments to be made by the Company pursuant to Sections 5.2 and 9.1 of this Agreement.
"1954 Code" shall mean the Internal Revenue Code of 1954, as amended and supplemented.
4

"outstanding," when used with reference to the Bonds, shall mean, as of any particular date, all Bonds authenticated and delivered under the Indenture except: 
(a)Bonds canceled at or prior to such date or delivered to or acquired by the Trustee prior to such date for cancellation; 
(b)Bonds deemed to be paid in accordance with Article IX of the Indenture; 
(c)Bonds in lieu of or in exchange or substitution for which other Bonds shall have been authenticated and delivered pursuant to the Indenture; and
(d)Bonds registered in the name of the Issuer.
"Plant" shall mean the Grand Gulf Nuclear Station located in Claiborne County, Mississippi.
"Prior Bonds" shall mean the $49,500,000 Claiborne County, Mississippi 9 1⁄2% Pollution Control Revenue Bonds (Middle South Energy, Inc. Project) Series A and the $206,000,000 Claiborne County, Mississippi 9 7⁄8% Pollution Control Revenue Bonds (Middle South Energy, Inc. Project) Series C.
"Refunding Date" shall mean June 15, 2021, or such later date as may be established by the Company; provided, however, that the Refunding Date shall not be later than ninety (90) days following the date of delivery of the Series 2021 Bonds to the original purchaser or purchasers of the Series 2021 Bonds.
"Regulations" shall mean the applicable proposed, temporary or final regulations promulgated under the Code, as such regulations may be amended or supplemented from time to time.
"Revenues" shall mean all moneys paid or payable by the Company to the Trustee for the account of the Issuer in respect of the principal of, premium, if any, and interest on the Bonds, including, without limitation, amounts paid or payable by the Company pursuant to Sections 5.2 and 9.1 of this Agreement as Loan Payments, amounts paid or payable by the Company in respect of the First Mortgage Bonds and the Thirty-ninth Assignment, and all receipts of the Trustee credited under the provisions of the Indenture against such payments
"Series 2021 Bonds" shall mean the $83,695,000 aggregate principal amount of Mississippi Business Finance Corporation Revenue Refunding Bonds (System Energy Resources, Inc. Project) Series 2021 authorized to be issued pursuant to the Indenture.
"Thirty-ninth Assignment" shall mean the Thirty-ninth Assignment of Availability Agreement, Consent and Agreement by and among the Company, Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, the Trustee and the Company Mortgage Trustee.
5

"Trustee" shall mean The Bank of New York Mellon, as trustee under the Indenture, and its successors as trustee.
"Underwriter" shall mean, in respect of the Series 2021 Bonds, Morgan Stanley & Co. LLC, and in respect of any Additional Bonds, an underwriter designated as such in connection with the issuance of such Additional Bonds.
Section 1.2    Use of Words and Phrases.  "Herein," "hereby," "hereunder," "hereof," "hereinabove," "hereinafter" and other equivalent words and phrases refer to this Agreement and not solely to the particular portion thereof in which any such word is used.  The definitions set forth in Section 1.1 hereof include both singular and plural.  Whenever used herein, any pronoun shall be deemed to include both singular and plural and to cover all genders.  Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders.  Unless the context shall otherwise indicate, the words "Bond," "owner," "holder" and "person" shall include the plural, as well as the singular, number.
Unless the context shall otherwise indicate, "Person" or "person" shall mean any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.
Section 1.3    Nontaxability.  It is intended by the parties hereto that this Agreement and all action taken hereunder be consistent with and pursuant to the resolution of the governing body of the Issuer relating to the Bonds, and that the interest on the Bonds be excluded from the gross income of the recipients thereof for federal income tax purposes other than with respect to a person who is a "substantial user" of the Facilities or a "related person" of a "substantial user" within the meaning of the Code and the 1954 Code by reason of the provisions of the Code or the 1954 Code.  The Company will not use any of the funds provided by the Issuer hereunder in such a manner as to impair the exclusion of interest on any of the Bonds from the gross income of the recipient thereof for federal income tax purposes nor will it take any action that would impair such exclusion or fail to take any action if such failure would impair such exclusion.

6

ARTICLE II
REPRESENTATIONS
Section 2.1    Representations and Warranties of the Issuer.  The Issuer makes the following representations and warranties as the basis for the undertakings on the part of the Company herein contained: 
(a)The Issuer is a public corporation duly created and validly existing pursuant to the constitution and laws of the State, including the Act.
(b)The Issuer has the power to enter into the transactions contemplated by this Agreement and to carry out its obligations hereunder.  By proper action of the governing body of the Issuer, the Issuer has been duly authorized to execute and deliver this Agreement. 
(c)The Issuer has not assigned, and will not, except as otherwise required by mandatory provisions of law, assign its interest in this Agreement other than to secure the Bonds. 
Section 2.2    Representations and Warranties of the Company.  The Company makes the following representations and warranties as the basis for the undertakings on the part of the Issuer herein contained: 
(a)The Company is a corporation organized and existing under the laws of the State of Arkansas and is in good standing in the State of Arkansas, is duly qualified and in good standing to do business in the State, is not in violation of any provision of its organizational documents, has power to enter into this Agreement and to perform and observe the agreements and covenants on its part contained herein, including, without limitation, the power to issue and deliver the First Mortgage Bonds as contemplated herein and in the Company Mortgage and to execute and deliver the Thirty-ninth Assignment, and has duly authorized the execution and delivery of this Agreement by proper corporate action. 
(b)Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement, including, without limitation, the issuance and delivery of the First Mortgage Bonds and the execution and delivery of the Thirty-ninth Assignment, will conflict with or result in a breach of the terms, conditions or provisions of any restriction or any agreement or instrument to which the Company is now a party or by which the Company is bound, or will constitute a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of the Company except any interests created herein, under the Indenture, the Thirty-ninth Assignment or under the Company Mortgage.
(c)The Federal Energy Regulatory Commission has approved all matters relating to the Company's participation in the transactions contemplated by this Agreement and the Company Mortgage which require said approval, and no other consent, approval, 
7

authorization or other order of any regulatory body or administrative agency or other governmental body is legally required for the Company's participation therein (other than that relating to the construction, acquisition, ownership, operation and maintenance of the Grand Gulf Nuclear Station), except such as may have been obtained or may be required under the securities laws of any state or in connection with the issuance of series of Additional Bonds and except (1) appropriate orders or the taking of other action by governmental regulatory authorities having jurisdiction pursuant to valid statutory enactments as to the issuance by the Company of any securities to parties after the date hereof and (2) with respect to the Availability Agreement and the Thirty-ninth Assignment (other than Section 2.2(b) thereof), in the event that the Company shall determine to sell capacity and/or energy from any generating unit pursuant to the terms of the Availability Agreement or the Thirty-ninth Assignment, appropriate orders, or the taking of other action, by governmental regulatory authorities having jurisdiction pursuant to valid statutory enactments as to the specific terms and provisions under which such capacity and/or energy shall be made available.
(d)The Company will execute the Continuing Disclosure Agreement attached hereto as Exhibit A contemporaneously with the execution of this Agreement and agrees to comply with the requirements set forth therein.
8

ARTICLE III
THE FACILITIES
Section 3.1    Maintenance of Facilities; Remodeling.  The Company shall, at its expense, cause the Facilities, and every element and unit thereof, to be maintained, preserved and kept in good repair, working order and condition, and from time to time to cause all needful and proper repairs, replacements, additions, betterments and improvements to be made thereto; provided, however, that the Company may exercise all of such rights, powers, elections and options to cause the discontinuance of the operation of, or reduce the capacity of, the Facilities, or any element or unit thereof, if, in the judgment of the Company, any such action is necessary or desirable in the conduct of the business of the Company, or if the Company is ordered so to do by any regulatory authority having jurisdiction in the premises, or if the Company intends to sell or dispose of the same and within a reasonable time shall endeavor to effectuate such sale.
The Company may at its own expense cause the Facilities to be remodeled or cause substitutions, modifications and improvements to be made to the Facilities from time to time as it, in its discretion, may deem to be desirable for its uses and purposes, which remodeling, substitutions, modifications and improvements shall be included under the terms of this Agreement as part of the Facilities. 
Section 3.2    Insurance.  The Company shall, at its expense, cause the Facilities to be kept insured against fire to the extent that property of similar character is usually so insured by companies similarly situated and operating like properties, to a reasonable amount, by reputable insurance companies or, in lieu of or supplementing such insurance in whole or in part, adopt some other method or plan of protection against loss by fire at least equal in protection to the method or plan of protection against such loss of companies similarly situated and operating like properties.  All proceeds of such insurance, or such other method or plan, shall be for the account of the Company.
Section 3.3    Condemnation; Eminent Domain.  (a)  In the event that title to or the temporary use of the Facilities, or any part thereof, shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under governmental or statutory authority, any proceeds from any award or awards in respect of the Facilities or any part thereof made in such condemnation or eminent domain proceedings, after payment of all expenses incurred in the collection thereof, shall be paid for the account of the Company. 
(b)    The Company shall be entitled to the entire proceeds of any condemnation award or portion thereof made for damages to or takings of its own property other than the Facilities.

9

ARTICLE IV
ISSUANCE OF BONDS; DISPOSITION OF PROCEEDS OF BONDS
Section 4.1    Issuance of the Series 2021 Bonds.  The Issuer shall issue the Series 2021 Bonds under and in accordance with the Indenture, subject to the provisions of any bond purchase agreement between the Issuer and the Underwriter.  The Company hereby approves the issuance of the Series 2021 Bonds and all terms and conditions thereof. 
Section 4.2    Additional Bonds.  So long as the Company shall not be in default hereunder, and at the request of the Company, the Issuer may authorize and issue Additional Bonds in aggregate principal amounts specified from time to time by the Company in order to provide funds for the purpose of refunding the Series 2021 Bonds or any series of Additional Bonds, in whole or in part, or any combination thereof.  Any such issuance of Additional Bonds shall be in accordance with the Indenture, including Sections 2.7 and 2.11 thereof.
The right to issue Additional Bonds set forth in this Agreement and the Indenture shall not imply that the Issuer and the Company may not enter into, and the Issuer and the Company expressly reserve the right to enter into, to the extent permitted by law, another agreement or agreements with respect to the issuance by the Issuer, under an indenture or indentures other than the Indenture, of bonds to fund additional facilities at the Plant or refunding bonds to refund all or any principal amount of all or any series of Bonds, and the provisions of this Agreement and the Indenture governing the issuance of Additional Bonds shall not apply thereto. 
Section 4.3    Disposition of Bond Proceeds. In consideration of the loan by the Issuer to the Company of the proceeds of the sale of the Series 2021 Bonds as provided in Section 5.1 hereof, the Company agrees that the proceeds of the Series 2021 Bonds shall be deposited in accordance with Section 6.1 of the Indenture in order to redeem, together with other available moneys of the Company, $83,695,000 in aggregate principal amount of the outstanding Series 2019 Bonds on the Refunding Date.  The proceeds from the sale of any Additional Bonds shall be applied simultaneously with the delivery of such Additional Bonds in the manner provided in the Indenture and in the supplemental indenture authorizing such Additional Bonds. 
Section 4.4    Agreement to Redeem 2019 Bonds.  On the Refunding Date for the Series 2019 Bonds being refunded with the proceeds of the Series 2021 Bonds, the Company, in accordance with Section 6.1 of the Indenture, agrees to pay to the paying agent for such Series 2019 Bonds any amount necessary to pay interest due on such Series 2019 Bonds through the Refunding Date.  The Company shall also pay out of its own money and not out of proceeds of the Series 2021 Bonds all reasonable Costs of Issuance with respect to the Series 2021 Bonds.

10

ARTICLE V
THE LOAN; OTHER OBLIGATIONS; FIRST MORTGAGE BONDS
Section 5.1    Loan.  The proceeds of the sale of the Series 2021 Bonds, which shall be deposited in accordance with Section 6.1 of the Indenture, are hereby loaned by the Issuer to the Company in accordance with the provisions of this Agreement.  The Issuer hereby agrees to make additional loans to the Company from time to time from the proceeds of any Additional Bonds issued by the Issuer pursuant to the Indenture.
Section 5.2    Loan Payments.  To repay the loan, the Company shall make or cause to be made Loan Payments in installments, so as to provide amounts for the timely payment of the principal of and premium, if any, and interest on the Bonds on the dates and in the amounts and in the manner provided in the Indenture for the Issuer to cause payment to be made to the Trustee of principal of and premium, if any, and interest on the Bonds, whether at maturity, upon redemption or acceleration, or otherwise; provided, however, that the obligation of the Company to make any such payment hereunder shall be reduced by the amount of any reduction under the Indenture of the amount of the corresponding payment required to be made by the Issuer thereunder in respect of the principal of or premium, if any, or interest on the Bonds.
Sectoin 5.3    Bond Fund.  The Company shall pay the Loan Payments required of it under this Agreement by remitting or causing to be remitted the same directly to the Trustee for deposit in the Bond Fund established under the Indenture and administered by the Trustee as provided in the Indenture.
Section 5.4    Payments to Issuer.  Out of funds provided by the Company, there shall be paid (i) all of the Issuer's reasonable actual out-of-pocket expenses and costs of issuance in connection with the Bonds, and (ii) on the date of delivery of the Bonds, a financing acceptance fee in the amount of $10,000.00.  Such payments shall be used for the purpose of paying administrative and related costs of the Issuer, but shall not include Trustee fees incurred by the Issuer in enforcing the provisions of this Agreement.  
Section 5.5    Payments Assigned; Obligation Absolute.  It is understood and agreed that all Loan Payments to be made by the Company are, by the Indenture, to be pledged by the Issuer to the Trustee, and that all rights and interest of the Issuer hereunder (except for the Issuer's rights under Sections 5.4, 5.6, 5.7, 5.8 and 8.5 hereof and any rights of the Issuer to receive notices, certificates, requests, requisitions, directions and other communications hereunder), under the First Mortgage Bonds (including the right to receive the First Mortgage Bonds under this Agreement) and under the Thirty-ninth Assignment, are to be pledged and assigned to the Trustee.  The Company assents to such pledge and assignment and agrees that the obligation of the Company to make the Loan Payments shall be absolute, irrevocable and unconditional and shall not be subject to cancellation, termination or abatement, or to any defense other than payment or to any right of set-off, counterclaim or recoupment arising out of any breach under this Agreement, the Indenture or otherwise by the Issuer or the Trustee or any other party, or out of any obligation or liability at any time owing to the Company by the Issuer, the Trustee or any other party, and, further, that the Loan Payments and the other payments due hereunder shall continue to be payable at the times and in the amounts specified herein, whether 
11

or not the Facilities or the Plant, or any portion thereof, shall have been destroyed by fire or other casualty, or title thereto, or the use thereof, shall have been taken by the exercise of the power of eminent domain, and that there shall be no abatement of or diminution in any such payments by reason thereof, whether or not the Facilities or the Plant shall be used or useful, and whether or not any applicable laws, regulations or standards shall prevent or prohibit the use of the Facilities or the Plant, or for any other reason. 
Section 5.6    Payment of Expenses.  The Company shall pay all of the Administration Expenses of the Issuer and the compensation and the reimbursement of expenses and advances of the Trustee, any paying agent, any co-paying agent, and the registrar under the Indenture, such payments to be made directly to such entities.
Section 5.7    Indemnification.  To the extent permitted by law, the Company agrees to indemnify, hold harmless and defend the Issuer, the Trustee and their officers, directors, employees and agents (collectively, the "Indemnified Persons"), against any and all fees, costs and charges, losses, damages, claims, actions, liabilities and expenses of any conceivable nature, kind or character (including, without limitation, reasonable fees and expenses of attorneys, accountants, consultants and other experts, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Persons, or any of them, may become subject under or any statutory law (including federal or state securities laws) or at common law or otherwise, arising out of or based upon or in any way relating to:
(a)the Bonds, the First Mortgage Bonds, the Indenture, this Agreement, or the Company Mortgage (collectively, the "Documents") or the execution or amendment hereof or thereof or in connection with transactions contemplated hereby or thereby, including the issuance, sale or resale of the Bonds;
(b)the performance and observance by or on behalf of the Issuer or the Trustee of those things on the part of the Issuer or the Trustee, as applicable, agreed to be performed or observed hereunder and under the Documents;
(c)any act or omission of the Company or any of their agents, contractors, servants, employees, tenants or licensees in connection with the Facilities, the operation of the Facilities, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design, acquisition, installation or construction of, the Facilities or any part thereof;
(d)any lien or charge upon payments by the Company to the Issuer and the Trustee hereunder, or any taxes (including, without limitation, all ad valorem taxes and sales taxes), assessments, impositions and other charges imposed on the Issuer or the Trustee in respect of any portion of the Facilities;
(e)any violation of any environmental laws with respect to, or the release of any Hazardous Substances from, the Facilities or any part thereof;
12

(f)the defeasance and/or redemption, in whole or in part, of the Bonds or the First Mortgage Bonds;
(g)any untrue statement or misleading statement or alleged untrue statement or alleged misleading statement of a material fact relating to the Company or the Facilities  contained in any offering or disclosure document or disclosure or continuing disclosure document for the Bonds or any of the documents relating to the Bonds, or any omission or alleged omission from any offering or disclosure document or disclosure or continuing disclosure document for the Bonds relating to the Company or the Facilities of any material fact necessary to be stated therein in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading;
(h)any declaration of taxability of interest on the Bonds, or allegations that interest on the Bonds is taxable or any regulatory audit or inquiry regarding whether interest in the Bonds is taxable;
(i)the Trustee’s acceptance or administration of the trust of the Indenture, or the exercise or performance of any of its powers or duties thereunder or under any of the Documents;
(j)any injury to or death of any Person or damage to property in or upon the Facilities or growing out of or connected with the use, nonuse, condition or occupancy of the Facilities;
except in the case of the foregoing indemnification of the Indemnified Persons, to the extent such damages are caused by the negligence or bad faith of the Trustee or the Issuer.
In the event that any action or proceeding is brought against any Indemnified Person with respect to which indemnity may be sought hereunder, the Company, upon written notice from the Indemnified Person, shall assume the investigation and defense thereof, including the employment of counsel selected by the Indemnified Person, and shall assume the payment of all expenses related thereto, with full power to litigate, compromise or settle the same in their sole discretion; provided that the Indemnified Person shall have the right to review and approve or disapprove any such compromise or settlement. Each Indemnified Person shall have the right to employ separate counsel in any such action or proceeding and participate in the investigation and defense thereof, and the Company shall pay the reasonable fees and expenses of such separate counsel; provided, however, that such Indemnified Person may only employ separate counsel at the expense of the Company if in the judgment of such Indemnified Person a conflict of interest exists by reason of common representation or if all parties commonly represented do not agree as to the action (or inaction) of counsel.
The rights of any persons to indemnity hereunder and rights to payment of fees and reimbursement of expenses shall survive the final payment or defeasance of the Bonds and in the case of the Trustee any resignation or removal. The provisions of this Section shall remain valid and in effect notwithstanding repayment of the loan hereunder or payment, redemption or defeasance of the Bonds or termination of this Agreement or the Indenture.
13

Section 5.8    Payment of Taxes; Discharge of Liens.  The Company shall: (a) pay, or make provision for payment of, all lawful taxes and assessments, including income, profits, property or excise taxes, if any, or other municipal or governmental charges, levied or assessed by any federal, state or municipal government or political body upon the Issuer upon any amounts payable hereunder; and (b) pay or cause to be satisfied and discharged or make adequate provision to satisfy and discharge, within sixty (60) days after the same shall accrue, any lien or charge upon any amounts payable hereunder, and all lawful claims or demands for labor, materials, supplies or other charges which, if unpaid, might be or become a lien upon such amounts; provided, that, if the Company shall first notify the Issuer and the Trustee of its intention so to do, the Company may in good faith contest any such lien or charge or claims or demands in appropriate legal proceedings, and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom, unless by nonpayment of any such items the lien of the Indenture as to the amounts payable hereunder will be materially endangered, in which event the Company shall promptly pay and cause to be satisfied and discharged all such unpaid items.  The Issuer shall cooperate fully with the Company in any such contest.
Section 5.9    Issuance, Delivery and Surrender of First Mortgage Bonds, Additional Security.  (a) The obligation of the Company set forth in Section 5.2 hereof to make the Loan Payments required therein with respect to the Series 2021 Bonds shall be evidenced by a series of First Mortgage Bonds.  The Company shall issue and deliver to the Issuer First Mortgage Bonds as provided in subsection (b) of this Section 5.9.
(b)The obligations of the Company to make payments under Section 5.2 hereof in respect of the Series 2021 Bonds shall be evidenced by a series of First Mortgage Bonds with the excess of the principal amount of the First Mortgage Bonds over the principal amount of the Series 2021 Bonds to be applied to the payment of accrued interest on the Series 2021 Bonds.  Concurrently with the issuance and delivery by the Issuer of the Series 2021 Bonds, the Company shall issue and deliver to the Issuer a series of First Mortgage Bonds (i) maturing on the stated maturity date of the Series 2021 Bonds, (ii) in a principal amount equal to the sum of (A) the aggregate principal amount of the Series 2021 Bonds and (B) an amount equal to eight and one-half months interest on the Series 2021 Bonds, (iii) containing redemption provisions correlative to the redemption provisions of the Indenture relating to the Series 2021 Bonds requiring mandatory redemption thereof, (iv) requiring payments to be made to the Trustee for the account of the Issuer, and (v) bearing no interest.
(c)The obligation of the Company to make any payment of the principal of or premium, if any, or interest on the First Mortgage Bonds, whether at maturity, upon redemption or otherwise, shall be reduced by the amount of any reduction under the Indenture of the amount of the corresponding payment required to be made by the Issuer thereunder in respect of the principal of or premium, if any, or interest on the Series 2021 Bonds, all in accordance with the provisions of the Company Mortgage.
(d)The Issuer shall not sell, assign or transfer the First Mortgage Bonds, except to the extent provided in Section 5.5 hereof.  In view of the pledge and assignment 
14

referred to in said Section 5.5, the Issuer agrees that (i) in satisfaction of the obligations of the Company set forth in paragraph (b) of this Section 5.9 with respect to the Series 2021 Bonds, the First Mortgage Bonds shall be issued and delivered to, registered in the name of, and held by the Trustee for the benefit of the owners and holders from time to time of the Series 2021 Bonds; (ii) the Indenture shall provide that the Trustee shall not sell, assign or transfer the First Mortgage Bonds except to a successor trustee under the Indenture, and shall surrender First Mortgage Bonds to the Company Mortgage Trustee in accordance with the provisions of subsection (e) of this Section; and (iii) the Company may take such actions as it shall deem to be desirable to effect compliance with such restrictions on transfer, including the placing of an appropriate legend on each First Mortgage Bond and the issuance of stop-transfer instructions to the Company Mortgage Trustee or any other transfer agent under the Company Mortgage.  Any action taken by the Trustee in accordance with the provisions of Section 4.8 of the Indenture shall be binding upon the Company.  
(e)At the time any Series 2021 Bonds cease to be outstanding (other than by reason of the payment or redemption of First Mortgage Bonds and other than by reason of the applicability of clause (c) in the definition of "outstanding" herein), the Issuer shall cause the Trustee to surrender for cancellation to the Company Mortgage Trustee First Mortgage Bonds in an aggregate principal amount equal to the sum of (i) the aggregate principal amount of the Series 2021 Bonds which so cease to be outstanding and (ii) an amount equal to eight and one-half months interest on the amount of Series 2021 Bonds which so cease to be outstanding.
(f)For the purpose of determining whether or not any payment of the principal of or premium, if any, or interest on the First Mortgage Bonds shall have been made in full, any moneys paid by the Company in respect of the First Mortgage Bonds which shall have been withdrawn by the Trustee from the Bond Fund pursuant to Section 5.4 of the Indenture shall be deemed to have been paid by the Company to the Trustee pursuant to Section 5.2 hereof and not to have been paid by the Company in respect of the First Mortgage Bonds.  
(g)The obligation of the Company set forth in Section 5.2 hereof to make Loan Payments therein with respect to any Additional Bonds may be evidenced by one or more series of First Mortgage Bonds on terms and conditions that will be set forth in either an amendment or supplement to this Agreement or a supplemental indenture to the Indenture.
(h)As additional security for the Company’s obligations under this Agreement with respect to the Series 2021 Bonds, the Company shall execute and deliver to the Trustee, the Thirty-ninth Assignment; and as additional security for the Company’s obligation under this Agreement with respect to any Additional Bonds, the Company may execute and deliver an additional assignment of the Availability Agreement on terms and conditions that will be set forth in either an amendment or supplement to this Agreement or a supplemental indenture to the Indenture.
ARTICLE VI
SPECIAL COVENANTS AND AGREEMENTS
15

Section 6.1    Maintenance of Existence.  The Company shall maintain its organizational existence, will not dissolve or otherwise dispose of all or substantially all of its assets and will not consolidate with or merge with or into another entity; provided, however, that the Company may consolidate with or merge with or into, or sell or otherwise transfer all or substantially all of its assets (and thereafter dissolve) to, another entity, organized under the laws of the United States, one of the states thereof or the District of Columbia, if the surviving, resulting or transferee entity, as the case may be (if other than the Company), prior to or simultaneously with such consolidation, merger, sale or transfer, assumes, by delivery to the Trustee of an instrument in writing satisfactory in form and substance to the Trustee, all of the obligations of the Company hereunder and under the First Mortgage Bonds and the Thirty-ninth Assignment, and provided that both immediately prior to such dissolution, disposal, consolidation or merger and after giving effect thereto, no Event of Default under this Agreement (or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default under this Agreement) shall have occurred and be continuing.
If a consolidation, merger or sale or other transfer is made as permitted by this Section 6.1, the provisions of this Section 6.1 shall continue in full force and effect and no further consolidation, merger or sale or other transfer shall be made except in compliance with the provisions of this Section 6.1.
Section 6.2    Arbitrage Covenant.  The Issuer and the Company covenant that the proceeds of the sale of the Bonds, the earnings thereon, and any other moneys on deposit in any fund or account maintained in respect of the Bonds (whether such moneys were derived from the proceeds of the sale of the Bonds or from other sources) will not be used in a manner which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Code.  The Company further covenants that: (a) all actions with respect to the Bonds required by Section 148(f) of the Code shall be taken; (b) it shall make the determinations required by paragraph (b) of Section 7.2 of the Indenture and promptly notify the Trustee of the same, together with supporting calculations; and (c) it shall within twenty-five (25) days after (i) the calendar date which corresponds to the final maturity of the respective series of Bonds and each anniversary thereof falling on or after the date of initial authentication and delivery thereof up to and including the final maturity of such series of the Bonds, unless the final payment, whether upon redemption in whole or at maturity, of such Bonds shall have occurred prior to such anniversary, and (ii) such final payment, file with the Trustee a statement signed by the chief financial officer of the Company (or person performing similar functions) to the effect that the Company is then in compliance with its covenants contained in clauses (a) and (b) of this sentence, together with supporting calculations; provided, however, that if the Company shall furnish an opinion of Bond Counsel to the Trustee to the effect that no further action by the Company is required for such compliance with respect to the Bonds, the Company shall not thereafter be required to deliver any such statements or calculations.  
Section 6.3    Bonds are Limited Obligations.  The Bonds shall be limited obligations of the Issuer, payable solely out of the Revenues.
16

THE BONDS ARE NOT A GENERAL OBLIGATION OF THE ISSUER AND ARE NOT AN INDEBTEDNESS OF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF.  NEITHER THE FAITH AND CREDIT OF THE ISSUER NOR THE FAITH AND CREDIT OR THE TAXING POWER OF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF THE BONDS, OR PREMIUM, IF ANY, OR THE INTEREST THEREON OR OTHER COSTS INCIDENTAL THERETO.  THE ISSUER HAS NO TAXING POWER.
Section 6.4    Tax-Exempt Status of Bonds.  The Issuer and the Company mutually covenant and agree that neither of them shall take or authorize or permit any action to be taken, and have not taken or authorized or permitted any action to be taken, that results in interest paid on the Bonds being included in gross income for purposes of federal income taxes.  Without limiting the generality of the foregoing, the Company further covenants, represents and agrees as follows:
(a)Substantially all of the net proceeds of the sale of the Prior Bonds have been used to undertake the acquisition of air and water pollution control facilities and sewage and solid waste disposal facilities within the meaning of Section 103(b)(4) of the 1954 Code.  All of the proceeds of the Prior Bonds, the Series 1998 Bonds and the Series 2019 Bonds have been expended.
(b)The weighted average maturity of the Series 2021 Bonds does not exceed 120% of the reasonably expected economic life of the Facilities financed with the proceeds of the Prior Bonds.
(c)The principal amount of the Series 2021 Bonds shall not exceed the outstanding principal amount of the Series 2019 Bonds.
(d)The Series 2021 Bonds are not and will not be "federally guaranteed" (as defined in Section 149(b) of the Code).
(e)None of the proceeds of the Series 2021 Bonds will be used, and none of the proceeds of the Series 2019 Bonds, the Series 1998 Bonds or the Prior Bonds were used, to provide any airplane, skybox or other private luxury box, or health club facility, any facility primarily used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises.
(f)The information furnished by the Company and used by the Issuer in preparing its No-Arbitrage Certificate dated the issue date of the Series 2021 Bonds is accurate and complete as of the date of the issuance of the Series 2021 Bonds.
(g)None of the proceeds of the Series 2021 Bonds will be used to finance Costs of Issuance of the Series 2021 Bonds.
(h)The Company will take no action that would cause any funds constituting gross proceeds of the Series 2021 Bonds to be used in a manner as to constitute a prohibited 
17

payment under the applicable regulations pertaining to, or in any other fashion as would constitute failure of compliance with, Section 148 of the Code and the applicable regulations thereunder.
The Company will not knowingly take any action, or knowingly omit to take any action, which action or omission will adversely affect the exclusion from gross income of the holders thereof for federal income tax purposes of interest on the Bonds (other than holders who are substantial users of the Facilities or related persons within the meaning of section 147(a) of the Code), and in the event of such action or omission (whether taken with knowledge or not) will promptly, upon receiving knowledge thereof, take all lawful actions, based on advice of Bond Counsel and at the Company's expense, as may rescind or otherwise negate such action or omission.
The covenants and agreements contained in this Section 6.4 shall survive any termination of this Agreement.
Section 6.5    Compliance with Law.  The Company shall, throughout the term of this Agreement and at no expense to the Issuer, promptly comply or cause compliance with all laws, ordinances, orders, rules, regulations and requirements of duly constituted public authorities that are applicable to the Facilities or to the repair and alteration thereof, or to the use or manner of use of the Facilities and that, if there were non-compliance, would materially adversely affect or impair the obligations of the Company under this Agreement or the ability of the Company to discharge such obligations.  Notwithstanding the foregoing, the Company shall have the right to contest the legality of any such law, ordinance, order, rule, regulation or requirement as applied to the Facilities; provided that, in the opinion of counsel to the Company, such contest shall not in any way materially adversely affect or impair the obligations of the Company under this Agreement or the ability of the Company to discharge such obligations.
Section 6.6    No Warranty.  The Issuer makes no warranty, either express or implied, as to the Facilities, including, without limitation, title to the Facilities or the actual or designed capacity of the Facilities, as to the suitability or operation of the Facilities for the purposes specified in this Agreement, as to the condition of the Facilities or as to the suitability thereof for the Company's purposes or needs or as to compliance of the Facilities with applicable laws and regulations or the ability of the Company to discharge the Bonds.  The Company covenants with the Issuer that it will make no claim against the Issuer for any deficiency which may at any time exist in the Facilities, nor will it assert against the Issuer any other claim for breach of warranty with respect to the Facilities.  The obligations of the Company under this Section shall survive any assignment or termination of this Agreement.
Section 6.7    Continuing Disclosure.  It is understood, acknowledged and agreed that the Issuer shall have no responsibility for compliance with the continuing disclosure requirements set forth in Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as in effect on the date of this Agreement, and shall have no liability to the Underwriter, the holders of the Bonds or any other person with respect to such disclosure matters. To the extent applicable to the Company, the Company agrees to comply fully with the continuing disclosure requirements of said Rule 15c2-12.
18

ARTICLE VII
ASSIGNMENT, LEASING AND SELLING
Section 7.1    Limitation.  This Agreement shall not be assigned nor shall the Facilities be leased or sold, in whole or in part, except as provided in this Article VII or in Section 6.1 hereof or in the Indenture.
Section 7.2    Issuer's Rights of Assignment.  The Issuer may, only in accordance with the Indenture, assign its rights and interests under this Agreement as set forth in Section 5.5 hereof (including the First Mortgage Bonds and the Thirty-ninth Assignment) and pledge the moneys receivable hereunder to the Trustee as security for payment of the principal of and premium, if any, and interest on the Bonds and all amounts payable under the Indenture, the Bonds and this Agreement.  The Company hereby assents to such assignments and agrees that the Trustee may exercise and enforce in accordance with the Indenture any of the rights of the Issuer under this Agreement or the First Mortgage Bonds and the Thirty-ninth Assignment.  Any such assignment, however, shall be subject to all of the rights and privileges of the Company as provided in this Agreement.

    Section 7.3    Assignment by the Company.  The Company's interest in this Agreement may be assigned in whole or in part, and the Facilities may be leased or sold as a whole or in part (whether a specific element or unit or an undivided interest), by the Company, subject, however, to the condition that no assignment, lease or sale (other than as described in Section 6.1 hereof) shall relieve the Company from primary liability for its obligations under Section 5.2 hereof to pay the Loan Payments, or for any other of its obligations hereunder or under the First Mortgage Bonds or the Thirty-ninth Assignment, other than those obligations relating to the operation, maintenance and insurance of the Facilities, which obligations (to the extent of the interest assigned, leased or sold and to the extent assumed by the assignee, lessee or purchaser) shall be deemed to be satisfied and discharged.
After any lease or sale of any element or unit of the Facilities, or any interest therein, such element or unit, or interest therein, shall no longer be deemed to be part of the Facilities for the purposes of this Agreement.
             Upon any such lease or sale, the Company shall comply with the requirements of Section
6.4 hereof, the 1954 Code and the Code and the regulations promulgated thereunder (including,
without limitation, the taking of remedial action with respect to the Bonds) as the same may then be applicable.
              The Company shall, within fifteen (15) days after the delivery thereof, furnish to the Issuer and the Trustee a true and complete copy of the agreements or other documents effectuating any such assignment, lease or sale.

19

ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES
Section 8.1    Events of Default.  Each of the following events shall constitute and is referred to in this Agreement as an "Event of Default":  
(a)an "Event of Default" as such term is defined in Section 901 of the Company Mortgage; 
(b)a failure by the Company to make when due any Loan Payments required to be made pursuant to Section 5.2 hereof, which failure shall have resulted in an "Event of Default" under Section 10.1(a) or (b) of the Indenture; or
(c)a failure by the Company to pay when due any other amount required to be paid under this Agreement or to observe and perform any covenant, condition or agreement on its part to be observed or performed, which failure shall continue for a period of ninety (90) days after written notice, specifying such failure and requesting that it be remedied, shall have been given to the Company by the Issuer or the Trustee, unless the Issuer and the Trustee shall agree in writing to an extension of such period prior to its expiration; provided, however, that the Issuer and the Trustee shall be deemed to have agreed to an extension of such period if corrective action is initiated by the Company within such period and is being diligently pursued.
Section 8.2    Force Majeure.  The provisions of Section 8.1 hereof are subject to the following limitations: if by reason of acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or other acts of any kind of the government of the United States or of the State of Mississippi, or any other sovereign entity or body politic, or any department, agency, political subdivision, court or official of any of them, or any civil or military authority; insurrections; riots; epidemics; landslides; lightning; earthquakes; volcanoes; fires; hurricanes; tornados; storms; floods; washouts; droughts; arrests; restraint of government and people; civil disturbances; explosions; breakage of, or accident to, machinery; partial or entire failure of utilities; or any cause or event not reasonably within the control of the Company, the Company is unable in whole or in part to carry out any one or more of its agreements or obligations contained herein, other than its obligations under Section 5.2 hereof to pay the Loan Payments and its obligations under Sections 5.8, 6.1, 6.4 and 9.1 hereof, the Company shall not be deemed in default by reason of not carrying out said agreement or agreements or performing said obligation or obligations during the continuance of such inability.  The Company agrees, however, to use its best efforts to remedy with all reasonable dispatch the cause or causes preventing it from carrying out its agreements; provided, that the settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of the Company, and the Company shall not be required to make settlement of strikes, lockouts and other industrial disturbances by acceding to the demands of the opposing party or parties when such course is, in the judgment of the Company, unfavorable to the Company.  
Section 8.3    Remedies on Default.  (a) Upon the occurrence and continuance of any Event of Default described in clause (a) of Section 8.1 hereof, the Trustee, as the holder of the 
20

First Mortgage Bonds, shall, subject to the provisions of the Indenture, have the rights provided in the Company Mortgage.
(b)Upon the occurrence and continuance of any Event of Default described in Section 8.1 hereof, and further upon the condition that, in accordance with the terms of the Indenture, the Bonds shall have become immediately due and payable pursuant to any provision of the Indenture, the Loan Payments required to be paid pursuant to Section 5.2 hereof shall, without further action, become and be immediately due and payable.  
(c)Upon the occurrence and continuance of any Event of Default, the Issuer with the prior consent of the Trustee, or the Trustee, may take any action at law or in equity (including as a holder of the First Mortgage Bonds and as an assignee under the Thirty-ninth Assignment) to collect the payments then due and thereafter to become due hereunder, or to enforce performance and observance of any obligation, agreement or covenant of the Company under this Agreement. 
(d)Any amounts collected pursuant to action taken under this Section shall be applied in accordance with the Indenture. 
(e)In case any proceeding taken by the Issuer or the Trustee on account of any Event of Default shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Issuer or the Trustee, then and in every such case the Issuer and the Trustee shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies and powers of the Issuer and the Trustee shall continue as though no such proceeding had been taken. 
Section 8.4    No Remedy Exclusive.  No remedy conferred upon or reserved to the Issuer or the Trustee by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute.  No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time to time and as often as may be deemed expedient.  In order to entitle the Issuer or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice other than such notice as may be required in this Article.
Section 8.5    Agreement to Pay Attorneys' Fees and Expenses.  In the event the Company should default under any of the provisions of this Agreement and the Issuer or the Trustee should employ attorneys or incur other expenses for the collection of payments due hereunder or for the enforcement of performance or observance of any obligation or agreement on the part of the Company contained herein or in the First Mortgage Bonds, the Company agrees that it will on demand therefor pay to the Issuer or the Trustee, as the case may be, the reasonable fees of such attorneys and such other expenses so incurred.
21

Section 8.6    Waiver of Breach.  In the event that any agreement contained herein shall be breached by either the Company or the Issuer and such breach shall thereafter be waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder.  In view of the assignment of the Issuer's rights in and under this Agreement to the Trustee under the Indenture, the Issuer shall have no power to waive any default hereunder by the Company without the consent of the Trustee.  Any waiver of any "Event of Default" under the Indenture and a rescission and annulment of its consequences, and any waiver of any "Event of Default" under the Company Mortgage and a rescission and annulment of its consequences, shall constitute a waiver of the corresponding Event of Default hereunder or an "Event of Default" thereunder and a rescission and annulment of the consequences thereof.

22

ARTICLE IX
REDEMPTION OR PURCHASE OF BONDS
Section 9.1    Redemption of Bonds.  The Issuer shall take the actions required by the Indenture to discharge the lien thereof through the redemption, or provision for payment or redemption, of all Bonds then outstanding, or to effect the redemption, or provision for payment or redemption, of less than all the Bonds then outstanding, upon receipt by the Issuer and the Trustee from the Company of a notice designating the principal amounts, series and maturities of the Bonds to be redeemed, or for the payment or redemption of which provision is to be made, and, in the case of redemption of Bonds, or provision therefor, specifying the date of redemption, which shall not be less than forty-five (45) days from the date such notice is given (or such shorter period as may be agreed to by the Trustee), and the applicable redemption provision of the Indenture.  Unless otherwise stated therein or otherwise required by the Indenture, such notice shall be revocable by the Company at any time prior to the time at which the Bonds to be redeemed, or for the payment or redemption of which provision is to be made, are first deemed to be paid in accordance with Article IX of the Indenture.  The Company shall furnish, as a prepayment of the Loan Payments, any moneys or Government Securities (as defined in the Indenture) required by the Indenture to be deposited with the Trustee or otherwise paid by the Issuer in connection with any of the foregoing purposes. 
Section 9.2    Purchase of Bonds.  The Company may at any time, and from time to time, furnish moneys to the Trustee accompanied by a written notice directing the Trustee to apply such moneys to the purchase in the open market of Bonds in the principal amounts and of the series and maturities specified in such notice, and any Bonds so purchased shall thereupon be canceled by the Trustee.

23

ARTICLE X
MISCELLANEOUS
Section 10.1    Notices.  Except as otherwise provided in this Agreement, all notices, certificates or other communications shall be sufficiently given and shall be deemed given when mailed by registered or certified mail, postage prepaid, to the Issuer, the Company or the Trustee.  Copies of each notice, certificate or other communication given hereunder by or to the Company shall be mailed by registered or certified mail, postage prepaid, to the Trustee; provided, however, that the effectiveness of any such notice shall not be affected by the failure to send any such copies.  Notices, certificates or other communications shall be sent to the following addresses: 
Company:    System Energy Resources, Inc.
639 Loyola Avenue
New Orleans, LA  70113
ATTN:  Steven C. McNeal, Vice President and Treasurer
Phone:  504-576-4363
Email:  smcneal@entergy.com
Issuer:    Mississippi Business Finance Corporation
735 Riverside Drive, Ste. 300
Jackson, MS 39202
ATTN:  E. F. "Buddy" Mitcham, Executive Director
Phone:  601-355-6232
Email:  bmitcham@mbfc.cc
Trustee and
Bond Registrar:    The Bank of New York Mellon
Corporate Trust Division
4655 Salisbury Road, Suite 300
Jacksonville, FL  32256
ATTN: Cindy Moore, Vice President
Phone:  904-645-1943
Email:  cindy.moore@bnymellon.com
Any of the foregoing may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. 
Section 10.2    Severability.  If any provision of this Agreement shall be held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions herein contained or render the same invalid, inoperative, or unenforceable to any extent whatever. 
Section 10.3    Execution of Counterparts; Electronic Signatures.  This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The words "execution," "signed" 
24

and "signature" and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement (to the extent permissible under governing documents) shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, "pdf," "tif" or "jpg") and other electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including, without limitation, the Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.
Section 10.4    Amounts Remaining in Bond Fund. It is agreed by the parties hereto that after payment in full of (i) the Bonds (or the provision for payment thereof having been made in accordance with the provisions of the Indenture), (ii) the Administration Expenses of the Issuer, and (iii) all other amounts required to be paid under this Agreement and the Indenture, any amounts remaining in the Bond Fund shall belong to and be paid by the Trustee, upon written instruction, to the Company. 
Section 10.5    Amendments, Changes and Modifications.  Except as otherwise provided in this Agreement or the Indenture, subsequent to the initial issuance of Bonds and prior to payment in full of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture), this Agreement may not be effectively amended, changed, modified, altered or terminated nor any provision waived without the written consent of the Trustee, which shall not be unreasonably withheld. 
Section 10.6    Governing Law.  This Agreement shall be governed exclusively by and construed in accordance with the applicable laws of the State.
Section 10.7    Authorized Company Representatives.  An Authorized Company Representative shall act on behalf of the Company whenever the approval of the Company is required or the Company requests the Issuer to take some action, and the Issuer and the Trustee shall be authorized to act on any such approval or request, and neither party hereto shall have any complaint against the other or against the Trustee as a result of any such action taken. 
Section 10.8    Term of the Agreement.  This Agreement shall be in full force and effect from the date hereof until the right, title and interest of the Trustee in and to the Trust Estate (as defined in the Indenture) shall have ceased, terminated and become void in accordance with Article IX of the Indenture and until all payments required under this Agreement shall have been made.  
Section 10.9    No Personal Liability.  No covenant or agreement contained in this Agreement shall be deemed to be the covenant or agreement of any official, officer, agent, or employee of the Issuer in his individual capacity, and no such person shall be subject to any personal liability or accountability by reason of the issuance thereof.  
25

Section 10.10    Parties in Interest.  This Agreement shall inure to the benefit of and shall be binding upon the Issuer, the Company, the Trustee and their respective successors and assigns, and no other person, firm or corporation shall have any right, remedy or claim under or by reason of this Agreement; provided, however, that any monetary obligation of the Issuer created by or arising out of this Agreement shall be payable solely out of the Revenues and shall not constitute, and no breach of this Agreement by the Issuer shall impose, a pecuniary liability upon the Issuer or a charge upon the Issuer's general credit.

26

[Signature page to Loan Agreement]
IN WITNESS WHEREOF, the Issuer and the Company have caused this Agreement to be signed on their behalf by their duly authorized representatives as of the date set forth above.

MISSISSIPPI BUSINESS FINANCE CORPORATION

By:     /s/ E.F. Buddy Mitcham, Jr.         
  E. F. "Buddy" Mitcham, Jr.
  Executive Director

ATTEST:

By:      /s/ Larry W. Mobley    
             Larry W. Mobley
             Secretary

SYSTEM ENERGY RESOURCES, INC.

By: /s/ Kevin J. Marino
     Kevin J. Marino
     Assistant Treasurer

27

EXHIBIT A

CONTINUING DISCLOSURE AGREEMENTExhibit 10.21

 

[***]
Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information
is not material and the registrant customarily and actually treats as private and confidential.

 

LICENSE
AGREEMENT

 

This
License Agreement (including any exhibits attached hereto, this “Agreement”) is made and is effective this
18th day of September, 2018 (the “Effective Date”) between Century Therapeutics, Inc., a Delaware corporation
(“Century”) having an address at 52 West 21st Street, Suite 408, New York, NY 10010 USA and FUJIFILM Cellular
Dynamics Inc., a Wisconsin corporation (“CDI”) having an address at 525 Science Drive Madison, WI 53711 USA.
Century and CDI are each referred to as a “Party” and collectively referred to as the “Parties.”

 

Recitals

 

WHEREAS,
Century is a biotechnology company interested in development and commercialization of cancer immunotherapy products based on T
cells, NK cells, dendritic cells, and macrophages derived from human iPSC (including TiPSC) exclusively manufactured by CDI;

 

WHEREAS,
CDI possesses and controls certain patent rights and know-how related to (i) human iPSC exclusively manufactured by CDI (including
TiPSC)-derived T cells, NK cells, dendritic cells, and macrophages and (ii) Licensed Products (as defined below) exclusively manufactured
by CDI, subject to the terms of Section 3.7 below;

 

WHEREAS,
Century wishes to obtain, and CDI wishes to grant to Century, an exclusive, non-transferable license under the Licensed Technology
(as defined below) for the research, development and commercialization of the Licensed Products (as defined below) in the Territory
(as defined below) within the Field (as defined below), with the right to grant sublicenses (through multiple tiers), in all cases
subject to the terms and conditions of this Agreement;

 

WHEREAS,
CDI wishes to obtain, and Century wishes to grant to CDI, (i) an exclusive, non-transferable license under the Century Licensed
Technology (as defined below) for the research, development and commercialization of the Licensed Products outside the Territory
within the Field, with the right to grant sublicenses (through multiple tiers), in all cases subject to the terms and conditions
of this Agreement and (ii) a non-exclusive, non-transferable, worldwide sublicense under the Century Licensed Technology for the
manufacture of the Licensed Products within the Field, with the right to grant sublicenses (through multiple tiers), in all cases
subject to the terms and conditions of this Agreement;

 

NOW
THEREFORE, CDI and Century, intending to be legally bound, agree as follows:

 

ARTICLE
1

Definitions

 

1.1       
 “Abandoned Indication” has the meaning set forth in Section 9.6.

 

1.2        “Affiliate”
means, with respect to a Party, any Person that controls, is controlled by, or is under common control with such Party. For purposes
of this Section 1.2, “control” shall refer to (a) in the case of a Person that is a corporate entity, direct or indirect
ownership of more 

    -1-

     

    

than fifty percent (50%) of the stock or shares having the right
to vote for the election of directors of such Person and (b) in the case of a Person that is not a corporate entity, the possession,
directly or indirectly, of the power to direct, or cause the direction of, the management or policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

 

1.3          
 “Bankruptcy Code” has the meaning set forth in Section 2.9(a).

 

1.4          
 “BLA” means a Biologics License Application as defined in the United States Federal Food, Drug, and Cosmetic
Act and the regulations promulgated thereunder (21 C.F.R. §§ 314 et seq).

 

1.5          
 “Business Days” means a day that is not a Saturday, Sunday or a day on which banking institutions in Boston,
Massachusetts or Wisconsin are authorized by Law to remain closed.

 

1.6          
 “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and ending on December
31; provided, however, that the first Calendar Year hereunder shall commence on the Effective Date and the final Calendar
Year hereunder shall end on the effective date of termination or expiration of this Agreement.

 

1.7          
 “Century Know-How” means all Know-How owned or Controlled by Century or its Affiliates, subject to Section
10.3, (other than the Licensed Know-How) during the Term that is reasonably necessary to Exploit a Licensed Product.

 

1.8          
 “Century Licensed Technology” means Century Patent Rights and Century Know-How. For clarity, Century Licensed
Technology includes (a) Improvements of the Licensed Technology owned or Controlled by Century or its Affiliates, (b) technologies
of gene editing, targets & binders and switches and any other technologies that are reasonably necessary to Exploit a Licensed
Product and owned or Controlled by Century or its Affiliates, and (c) Know-How or Patent Rights owned or Controlled by Century
that otherwise cover a Licensed Product.

 

1.9          
 “Century Patent Rights” means all Patent Rights owned or Controlled by Century or its Affiliates, subject to
Section 10.3, during the Term (other than the Licensed Patent Rights) that are reasonably necessary to Exploit a Licensed
Product.

 

1.10        
 “cGMP” means current good manufacturing practices as required by the FDA under provisions of 21 C.F.R. Parts
210 and 211 and all applicable FDA rules, regulations, orders and guidances, or as otherwise required by applicable Laws.

 

1.11        
 “Commercialize” means to engage in any and all activities directed to transporting, storing, marketing, detailing,
promoting, distributing, importing, exporting, using, offering to sell or selling a product.

 

1.12        
 “Commercially Reasonable Best Efforts” means efforts consistent with the efforts and resources as commonly used by
a pharmaceutical or biotechnology company, as applicable, of comparable size and resources of such Party for a product at a similar stage
of 

    -2-

     

    

research,
development or commercialization having similar product characteristics at a similar stage in its development or product life,
taking into account relevant factors including patent coverage, relative safety and efficacy, product profile, the competitiveness
of the marketplace, the proprietary position of such product, the regulatory structure involved, the market potential of such
product and other relevant factors, including comparative technical, legal, scientific, medical and/or economic factors, all as
measured by the facts and circumstances in effect at the time when the relevant activities are conducted.

 

1.13        
 “Confidential Information” means any confidential or proprietary information furnished by one Party (or its
Affiliate) to the other Party (or its Affiliate) in connection with this Agreement, whether during the Term or prior to the execution
hereof as expressly specified below, provided that such information is (a) specifically designated as confidential at the time
of disclosure or confirmed as confidential within ten (10) days of disclosure or (b) reasonably identifiable by an individual
familiar with the industry as confidential or proprietary. Without limiting the generality of the foregoing, Confidential Information
includes:

 

(a)         
non-public information disclosed by Century to CDI in reports submitted by Century to CDI pursuant to Section 3.5;

 

(b)         
non-public information disclosed by Century to CDI relating to patent application prosecution files for the Licensed Patent Rights;

 

(c)         
any information that constitutes “Confidential Information” under that certain Mutual Non-disclosure Agreement, dated
February 14, 2018, by and between CDI, Fujifilm and Versant Venture Management, LLC (“Versant”) (which for
purposes of this Agreement, any “Confidential Information” of Versant shall be considered the Confidential Information
of Century hereunder); and

 

(d)         
the terms of this Agreement.

 

1.14        
 “Controlled” means, with respect to Patent Rights or Know-How as such relates to a Party, that such Party owns
or has a license or sublicense to such Patent Rights or Know-How and has the legal right to grant a license or sublicense, including
having received any necessary Third Party consents, to such Patent Rights or Know-How to the other Party as provided for in this
Agreement, or has the ability to assign its right, title and interest in and to such Patent Rights or Know-How to the other Party,
without violating the terms of any agreement or other arrangement with any Third Party. Notwithstanding the foregoing, with respect
to any Patent Right or Know-How acquired or in-licensed for which a Party would be required to make payments to any Third Party
in connection with the license or access granted to the other Party under this Agreement, such Patent Right or Know-How will only
be treated as “Controlled” by the licensing Party pursuant to the terms of Section 2.3.

 

1.15        
 “Development” and “Developments” means (i) Derivative Materials; (ii) any inventions, discoveries
or developments, whether patentable, that are conceived of, reduced to practice, discovered, tested or developed through the use of the
inventions of WARF Patent Rights, Reprogrammed iPS Cells or Derivative Materials; and (iii) any compositions, products or

    -3-

     

    

other
materials in which the Reprogrammed iPS Cells or Derivative Materials were used in any way in their discovery or testing.

 

1.16        
 “European Union” or “E.U.” means the economic, scientific, and political organization of
member states known as the European Union, as its membership may be altered from time to time, and any successor thereto, and
includes, for purposes of this Agreement, Great Britain (whether Great Britain is a member of the E.U. or not).

 

1.17        
 “Exploit” or “Exploitation” means, with respect to a particular Licensed Product, to use,
have used, manufacture, have manufactured, sell, have sold, offer for sale, have offered for sale, import, have imported, export
and have exported, including to research, develop, commercialize or otherwise exploit such Licensed Product.

 

1.18        
 “FDA” means the United States Food and Drug Administration and any successor agency thereto.

 

1.19        
 “Field” means any cancer immunotherapy use.

 

1.20        
 “Fujifilm” means Fujifilm Corporation.

 

1.21        
 “ICC” has the meaning set forth in Section 10.11(b).

 

1.22        
 “Improvements” means any Intellectual Property that is an improvement to then- existing Licensed Technology
and is developed by either Party or Third Parties acting on their behalf while performing activities under this Agreement, and
all intellectual property rights (including Patent Rights) thereto.

 

1.23        
 “IND” means an investigational new drug application with the FDA, or the equivalent application in any foreign
jurisdiction filed with another Regulatory Authority.

 

1.24        
 “Indemnified Party” shall have the meaning set forth in Section 8.3.

 

1.25        
 “Indemnifying Party” shall have the meaning set forth in Section 8.3.

 

1.26        
 “Intellectual Property” means ideas, concepts, discoveries, inventions, developments, Know-How, trade secrets,
techniques, methodologies, modifications, innovations, improvements, writings, documentation, electronic code, data and rights
(whether or not protectable under state, federal or foreign patent, trademark, copyright or similar laws) or the like, whether
or not written or otherwise fixed in any form or medium, regardless of the media on which contained and whether or not patentable
or copyrightable.

 

1.27        
 “Know-How” means any and all commercial, technical, regulatory, scientific and other know-how and information, knowledge,
technology, materials (including biological and chemical materials), methods, processes, practices, standard operating procedures, formulae,
instructions, skills, techniques, procedures, assay protocols, experiences, ideas, technical assistance, designs, drawings, assembly
procedures, specifications, regulatory filings, data and results (including biological, chemical, pharmacological, toxicological, pharmaceutical,
physical and analytical, pre-clinical, clinical, safety, regulatory, manufacturing and quality control data 

    -4-

     

    

and
know-how, including study designs and protocols), whether or not confidential, proprietary or patentable, in written, electronic
or any other form.

 

1.28        
 “Law” means all laws, statutes, rules, codes, regulations, orders, judgments or ordinances applicable to a
Party, this Agreement or the activities contemplated hereunder.

 

1.29        
 “Licensed Know-How” means all Know-How that is Owned or Controlled by CDI as of the Effective Date or during
the Term that is reasonably necessary to Exploit a Licensed Product, including, without limitation, any Know-How set forth on
Exhibit A. For clarity, Licensed Know-How shall not include any Know-How related to the reprogramming of human somatic cells to
iPSCs.

 

1.30        
 “Licensed Patent Rights” means the Patent Rights Owned or Controlled by CDI as of the Effective Date or during
the Term that are reasonably necessary to Exploit a Licensed Product, including, without limitation, any Patent Rights listed
on Exhibit B. For clarity, Licensed Patent Rights shall not include any Patent Rights that are licensed to Century by CDI pursuant
to the Reprogramming License.

 

1.31        
 “Licensed Product” means cancer immunotherapy products (for the treatment of cancer in humans) consisting of
cells that are or are modifications of T cells, NK cells, dendritic cells, and macrophages derived from human iPSC (including
TiPSC) exclusively manufactured by CDI. For the sake of clarity, such “modifications” exclude materials or substances
extracted, isolated from, or secreted by, such modified or unmodified cells.

 

1.32        
 “Licensed Technology” means Licensed Patent Rights and Licensed Know-How. For clarity, Licensed Technology
includes Improvements of the Century Technology Owned or Controlled by CDI.

 

1.33         “Non-Supply Event” means CDI or its Affiliate (i) does not supply at least [***] of the Licensed Products ordered
by Century, its Affiliates and Sublicensees in accordance with the Supply Agreement and the finalized Development Plan or (ii)
provides Century with written notice of its election not to manufacture or have manufactured the Licensed Products.

 

1.34        
 “Owned” means, with respect to Patent Rights or Know-How that a Person owns, solely or jointly, in each case
with the ability to grant a right, license, or access to such material, information or Intellectual Property right to another
Person on the terms and conditions set forth herein, without violating the terms of any agreement or other arrangement with any
of such Person’s Affiliates and/or Third Party(ies). “Ownership” has the correlative meaning.

 

1.35        
 “Patent Rights” means with respect to any patents or patent applications, (a) such patents or patent applications;
(b) patents issuing from such patent applications; (c) substitutions, divisionals, renewals, continuations or continuations-in-part (only
to the extent of claims that are entitled to the priority date of the parent application); (d) patents of addition, restorations, extensions,
supplementary protection certificates, registration or confirmation patents, patents resulting from post-grant proceedings, re-issues
and re-examinations; (e) other patents or patent applications claiming and entitled to claim priority to (i) such patents and patent
applications specified in (a), (b), (c) or (d) or (ii) any patent or patent application from which such patents and 

    -5-

     

    

patent applications specified in (a), (b), (c) or (d) claims and is entitled to claim priority; (f) all rights of priority attendant
to such listed in (a) through (e); and (g) in each case of such patents and patent applications described in (a) through (e),
including all counterparts and foreign equivalents thereof filed in any country, territory or jurisdiction in the world.

 

1.36        
 “Person” means any natural person or any corporation, company, partnership, joint venture, firm or other entity,
including a Party, or any government or agency or political subdivision thereof.

 

1.37        
 “Phase 1 Clinical Trial” means, as to a specific Licensed Product, a human clinical trial of a product in any
country designed to satisfy the requirements of 21 C.F.R. §312.21(a) as amended from time to time, and intended to determine
metabolism and pharmacologic actions of a drug in humans, the side effects associated with increasing doses and, if possible,
to gain early evidence of efficacy, or any comparable trial under applicable Laws in the United States or the corresponding regulation
in jurisdictions other than the United States.

 

1.38        
 “Phase 2 Clinical Trial” means a clinical study of an investigational product in subjects with the primary
objective of characterizing its activity in a specific disease state as well as generating more detailed safety, tolerability,
pharmacokinetics, pharmacodynamics, and dose finding information as described in 21 C.F.R. 312.21(b) as amended from time to time,
or any comparable trial under applicable Laws in a country other than the United States including a human clinical trial that
is also designed to satisfy the requirements of 21 C.F.R. 312.21(a) or corresponding foreign regulations and is subsequently optimized
or expanded to satisfy the requirements of 21 C.F.R. 312.21(b) (or corresponding foreign regulations).

 

1.39        
 “Prosecuting Party” has the meaning set forth in Section 5.2(d).

 

1.40        
 “Prosecution and Maintenance” or “Prosecute and Maintain” means, with respect to the applicable
Patent Rights, the preparation, filing, prosecution and maintenance of such Patent Rights, as well as re-examinations, reissues,
appeals, and requests for patent term adjustments and patent term extensions with respect to such Patent Rights, together with
the initiation or defense of interferences, the initiation or defense of oppositions, post grant review, and other similar proceedings
with respect to the particular Patent Rights, and any appeals therefrom. For clarification, “Prosecution and Maintenance”
or “Prosecute and Maintain” shall not include any other enforcement actions taken with respect to Patent Rights.

 

1.41        
 “Regulatory Approval” means, with respect to a country or territory, the approvals (including any applicable
governmental price and reimbursement approvals), licenses, registrations or authorizations of Regulatory Authorities necessary
for the commercialization of a pharmaceutical product in such country or territory, including, as applicable, approval of an BLA
or comparable filing in the United States or approval of a comparable filing in any other country or jurisdiction.

 

1.42        
 “Regulatory Authority” means a federal, national, multinational, state, provincial or local regulatory agency,
department, bureau or other governmental entity with authority over the testing, manufacture, use, storage, import, promotion,
marketing or sale of a product in the applicable country.

    -6-

     

    

1.43        
 “Regulatory Documentation” shall mean all applications, registrations, licenses, authorizations and approvals
(including all Regulatory Approvals), all correspondence submitted to or received from Regulatory Authorities (including minutes
and official contact reports relating to any communications with any Regulatory Authority) and all supporting documents and all
clinical studies and tests, relating to the Licensed Products and all data contained in any of the foregoing, including all INDs,
Regulatory Approvals, regulatory drug lists, advertising and promotion documents, manufacturing data, drug master files, clinical
data, adverse event files and complaint files.

 

1.44        
 “Reprogramming License” means that certain agreement entered into between the Parties under which CDI grants
a non-exclusive license to Century under patent rights in relation to reprogramming technology under the terms and conditions
therein, as may be amended.

 

1.45        
 “SEC Filing” has the meaning set forth in Section 6.4(d).

 

1.46        
 “Sublicensee” has the meaning set forth in Section 2.5.

 

1.47        
 “Sublicensee Technology” has the meaning set forth in Section 2.5(e).

 

1.48        
 “Supply Agreement” has the meaning set forth in Section 3.7(a).

 

1.49        
 “Term” means the term of this Agreement as provided in Section 9.1.

 

1.50        
 “Territory” means worldwide, excluding Japan and any country(ies) eliminated from the Territory pursuant to
Section 9.4.

 

1.51        
 “Third Party” means any Person other than a Party. For avoidance of doubt, Third Party will include each Party’s
Affiliate in this Agreement.

 

1.52        
 “Third Party Licenses” has the meaning set forth in Section 2.3.

 

1.53        
 “United States” or “U.S.” means the United States of America and its territories and possessions
(including the District of Columbia and Puerto Rico).

 

1.54        
 “WARF” means Wisconsin Alumni Research Foundation.

 

1.55        
 “WARF License” means the License Agreement, dated as of June 6, 2012, between WARF and CDI, as amended.

 

1.56        
 “WARF Patent Rights” means the Patent Rights that are licensed to CDI by WARF under the WARF License.

 

ARTICLE
2

License Grants; Technology Transfer

 

    -7-

     

    

 

2.1         
License Grants to Century. Subject to the terms and conditions of this Agreement, CDI hereby grants to Century the following
licenses:

 

(a)         
an exclusive, non-transferable (except in accordance with Section 10.3), fully paid-up, sublicensable (with the ability
to sublicense through multiple tiers) license under the Licensed Technology to Exploit the Licensed Products within the Field
in the Territory. Notwithstanding any term or implication herein to the contrary and for the sake of clarity, the foregoing license
excludes any license or right under the Licensed Patent Rights (i) to manufacture, have manufactured, sell, have sold, offer for
sale or have offered for sale any product or service to any third party in furtherance of any research or development of a Licensed
Product other than a Licensed Product that that is being researched, developed or commercialized by or on behalf of Century or
its Affiliates or Sublicensees, or (ii) to grant any sublicense to any Third Party to manufacture, have manufactured, sell, have
sold, offer for sale or have offered for sale any product or service to any other Third Party in furtherance of any research or
development of a Licensed Product other than a Licensed Product that that is being researched, developed or commercialized by
or on behalf of Century or its Affiliates or Sublicensees; and

 

(b)          an exclusive, non-transferable (except in accordance with Section 10.3), fully paid-up, license and right of reference,
with the right to grant sublicenses through multiple tiers and further rights of reference, under any Regulatory Documentation
Owned and Controlled by CDI at any time during the Term so long as CDI Owns or Controls such Regulatory Documentation, to Exploit
the Licensed Products within the Field in the Territory.

 

2.2         
License Grants to CDI. Subject to the terms and conditions of this Agreement, Century (on behalf of itself and its Affiliates)
hereby grants to CDI the following licenses:

 

(a)         
an exclusive (except with respect to Century pursuant to Section 2.6(b) hereof), non-transferable (except in accordance
with Section 10.3), fully paid-up, sublicensable (with the ability to sublicense through multiple tiers) license under
the Century Licensed Technology, to Exploit the Licensed Products in the Field outside the Territory or within the Territory for
the Abandoned Indication;

 

(b)          an exclusive, non-transferable (except in accordance with Section 10.3), fully paid-up license and right of reference,
with the right to grant sublicenses through multiple tiers and further rights of reference, under the Regulatory Documentation
Controlled by Century or its Affiliates at any time during the Term to Exploit the Licensed Products in the Field outside the
Territory or within the Territory for the Abandoned Indication; and

 

(c)          a fully paid-up, non-exclusive, non-transferable (except in accordance with Section 10.3), sublicensable (with the ability
to sublicense through multiple tiers) worldwide license under the Century Licensed Technology, to manufacture the Licensed Products
in the Field.

 

2.3         
Third Party Licenses. The Parties acknowledge that each Party (a) as of the Effective Date may control Patent Rights or other
Intellectual Property pursuant to an in-license from a Third Party and/or (b) may obtain licenses after the Effective Date to Patent
Rights or 

    -8-

     

    

other
Intellectual Property of a Third Party, in each case, in order to Exploit the Licensed Products in the Field, with respect to Century,
including but not limited to, licenses under technology of gene editing technology, targets and binders and switches, and which licenses
include payments to such Third Party licensor for the rights to such Patent Rights or other Intellectual Property (each a “Third
Party License”). In the event that either Party enters into a Third Party License at any time following the Effective Date
or considers that a Third Party License that it entered into prior to the Effective Date is reasonably necessary to Exploit the Licensed
Products in the Field, such Party (the “Executing Party”) will provide the other Party (the “Electing Party”)
prompt written notice of such Third Party License. Following receipt of such notice, but in no event later than six (6) months thereafter,
the Electing Party may elect, by providing written notice, to receive a license to Exploit the Licensed Products using such Third Party
License in the Territory in the case of Century or outside of the Territory in the case of CDI. In the event the Electing Party elects
to receive a license from the Executing Party to such Third Party License, then, prior to including the Patent Rights and Intellectual
Property under such Third Party License hereunder, the Parties will agree on an equitable apportionment of any upfront or contingent
payments paid by the Executing Party to the Third Party licensor to reflect the fair value attributable to the use of such Patent Rights
and other Intellectual Property for the Exploitation of the Licensed Products in each Party’s territory. The Electing Party shall
pay the Executing Party such apportioned amount within thirty (30) days of including such Patent Rights and Intellectual Property under
such Third Party License hereunder, provided, however in the event CDI is the Electing Party the Parties shall negotiate and agree on
the apportioned amount after CDI notifies Century in writing in accordance with Section 2.4 of its election to Exploit in the
Field outside the Territory the Licensed Products that has met its primary endpoint(s) in a Phase 2 Clinical Trial. In addition, the
Electing Party shall be responsible for any amounts, including any royalties, milestone payments or license fees, that become due during
the Term as a result of the Electing Party’s Exploitation of the Licensed Products in its territory. Notwithstanding the foregoing,
in no event will the Electing Party pay to or owe the Executing Party any markup or other amount in excess of the amount due to the Third
Party by the Executing Party. Upon the Parties’ mutual agreement of such terms, such Patent Right or other Intellectual Property
will be treated as “Controlled” by the Executing Party hereunder to the extent, and only to the extent that and for so long
as, the Electing Party agrees and does pay to the Executing Party in accordance hereunder all such applicable payments to such Third
Party licensor arising out of the grant and exercise of the license to the Electing Party hereunder.

 

2.4         
Option to Exploit Proof-of-Concept Licensed Product Outside the Territory. During the Term, Century may provide CDI with
written notice that a particular Licensed Product that Century is Exploiting in the Field in the Territory has met its primary
endpoint(s) in a Phase 2 Clinical Trial. Following receipt of such notice, but in no event later than [***] thereafter,
CDI may elect to Exploit such Licensed Product in the Field outside of the Territory by providing Century with written notice
thereof. If CDI elects to Exploit such Licensed Product within the Field outside the Territory, the Parties shall negotiate in
good faith the terms of such Exploitation of such Licensed Product within the Field outside the Territory or within the Territory
for any Abandoned Indication, including the grant by Century to CDI of any licenses to any Patent Rights or Know-How owned or
Controlled by Century or its Affiliates that cover such Licensed Product and are not otherwise licensed to CDI hereunder and any
financial terms and payments owed to Century or its Affiliates for CDI’s use of such Patent Rights or Know-How. Upon the
Parties’ mutual agreement of such terms, the Parties shall amend the 

    -9-

     

    

applicable terms of this Agreement as necessary to
permit CDI to Exploit such Licensed Product within the Field outside the Territory or within the Territory for any Abandoned Indication.
If CDI does not elect to Exploit such Licensed Product in the Field outside the Territory within such [***] period, Century
shall have the right to Exploit such Licensed Product within the Field outside of the Territory and the Parties shall amend the
applicable terms of this Agreement as necessary to permit Century to Exploit such Licensed Product within the Field outside of
the Territory; provided however, if Century discontinue the Exploitation of WARF Patent Rights and/or Developments, Century shall
grant, and shall require its Sublicensee(s) to grant sublicenses, to practice and use of said Developments for commercial purpose.

 

2.5         
Sublicensing

 

(a)         
Each Party shall have the right to grant sublicenses under the licenses granted to it, with respect to Century under Section
2.1, and with respect to CDI under Section 2.2, in each case, to Third Parties (each, a “Sublicensee”)
through multiple tiers; provided that any such sublicense granted to a Third Party shall be pursuant to a written agreement
and each sublicense shall be subject to all relevant restrictions and limitations set forth in this Agreement. Each Party shall
be responsible for each of its Sublicensees complying with all obligations of such Party under this Agreement that are applicable
to sublicenses and any breach by a Sublicensee under any such sublicense shall be deemed to be a breach of such Party under this
Agreement. Each Party shall notify the other Party in writing of the identity of Sublicensees without delay.

 

(b)         If this Agreement is terminated for any reason other than by a Party pursuant to Section 9.6, then, at the option of any
Sublicensee of a terminating Party not in default of the applicable sublicense (or any provision of this Agreement applicable
to such Sublicensee), a terminating Party shall use Commercially Best Efforts to execute a possible direct license arrangement
with such Sublicensee under, and subject to the terms and conditions of, this Agreement.

 

(c)         
Century shall use Commercially Reasonable Best Efforts to include in any sublicense by Century or any Affiliate of Century to
a Third Party (or any further sublicenses by the applicable Sublicensee) of any rights granted by CDI under Section 2.1 that
the Sublicensee will grant to Century licenses to any Sublicensee Technology and licenses and rights of reference under any Regulatory
Documentation on terms that are substantially similar to the licenses granted by CDI to Century in Section 2.1 (but with
respect to outside the Territory) (replacing all references to the “Territory” under Section 2.1 with “outside
the Territory”), which license must be fully sublicensable to CDI (through multiple tiers) pursuant to the terms and conditions
of this Agreement. In such event, such Sublicensee Technology will be deemed Century Licensed Technology hereunder and included
within the licenses granted to CDI hereunder. Notwithstanding any provision to the contrary, in the event Century obtains from
the Sublicensee (a) licenses to any and all Sublicensee Technology and (b) licenses and rights of reference under any Regulatory
Documentation Owned or Controlled by Sublicensees (and its Affiliates), to Exploit the Licensed Products in the Field, Century
shall ensure to make such licenses and rights sublicensable to CDI (through multiple tiers) to Exploit the Licensed Products in
the Field outside the Territory.

    -10-

     

    

(d)          CDI shall use Commercially Reasonable Best Efforts to include in any sublicense by CDI to a Third Party (or any further sublicenses
by the applicable Sublicensee) of any rights granted by Century under Section 2.2 that the Sublicensee will grant to CDI
licenses to any Sublicensee Technology and licenses and rights of reference under any Regulatory Documentation on terms that are
substantially similar to the licenses granted by Century to CDI in Section 2.2 (but with respect to the Territory) (replacing
all references to the “outside the Territory” with “Territory”), which license must be fully sublicensable
to Century (through multiple tiers) pursuant to the terms and conditions of this Agreement. In such event, such Sublicensee Technology
will be deemed Licensed Technology hereunder and included within the licenses granted to Century hereunder. Notwithstanding any
provision to the contrary, in the event CDI will obtain from the Sublicensee (a) licenses to any and all Sublicensee Technology
and (b) licenses and rights of reference under any Regulatory Documentation Owned or Controlled by Sublicensees (and its Affiliates),
to Exploit the Licensed Products in the Field, CDI shall ensure to make such licenses and rights sublicensable to Century (through
multiple tiers) to Exploit the Licensed Products in the Field in the Territory.

 

(e)         
For purposes of Sections 2.5(c) and 2.5(d), “Sublicensee Technology” means any and all Know-How
and Patent Rights that such Sublicensee (and its Affiliates) controls by way of developing, generating, or inventing during the
term of the applicable sublicense agreement in the course of activities for the Exploitation of the Licensed Products or otherwise
in the exercise of the sublicensed rights thereunder and that are necessary or useful for the Exploitation of the Licensed Products
in the Field. For the avoidance of doubt Sublicensee Technology includes Patent Rights that will be issued based on Know-How that
is acquired by Sublicensee (and its Affiliates) by way of developing, generating, or inventing during the term of the applicable
sublicense agreement in the course of activities for the Exploitation of the Licensed Products or otherwise in the exercise of
the sublicensed rights during the term of the applicable sublicense agreement.

 

2.6         
Retained Rights.

 

(a)         
For the avoidance of doubt, CDI retains the right to use and practice the Licensed Technology (i) to Exploit the Licensed Products
in the Field outside the Territory, (ii) to Exploit the Licensed Products outside the Field and (iii) to manufacture and have
manufactured the Licensed Products in the Field anywhere in the world.

 

(b)         Notwithstanding the rights granted to CDI in Section 2.2, Century shall retain, and have the right to sublicense (through
multiple tiers) to Century’s Affiliates and Third Parties, the right to conduct or have conducted clinical trials of Licensed
Products in the Territory for the purposes of Exploitation of Licensed Products within the Field in the Territory. CDI shall work
in good faith to discuss Century’s request concerning the development plan outside the Territory for the Licensed Products
in the Territory.

 

2.7         
Technical Support. Each Party shall, or shall cause its Affiliates to, use Commercially Reasonable Best Efforts to provide the
other Party (including such other Party’s Affiliates) with the necessary technical support and transfer of Century Know How or
Licensed Know-How or Regulatory Documentation where necessary to allow such Party to Exploit the Licensed Products in the Field in its
respective territory pursuant to this Agreement. Further, CDI  

    -11-

     

    

expressly agrees that Century
shall have the right to reference any drug master files (or equivalent information as required by a Regulatory Authority)
maintained, or that at any time during the Term become maintained, by CDI in the ordinary course of business relating to the
Licensed Technology insofar as such information is necessary in connection with obtaining any Regulatory Approval for
Licensed Products in the Field in the Territory. Century expressly agrees that CDI shall have the right to reference any drug
master files (or equivalent information as required by a Regulatory Authority) maintained, or that at any time during the
Term become maintained, by Century and its Affiliates and their respective Sublicensees in the ordinary course of business
relating to the Century Licensed Technology insofar as such information is necessary in connection with obtaining any
Regulatory Approval for Licensed Products in the Field outside the Territory.

 

2.8         
No Implied License. Except as explicitly set forth in this Agreement, neither Party shall acquire any license, intellectual
property interest or other rights, by implication or otherwise, in any Know-How or under any Patent Rights Owned or Controlled
by the other Party or its Affiliates.

 

2.9         
Section 365(n) of the Bankruptcy Code.

 

(a)         
All rights and licenses granted under or pursuant to any section of this Agreement are and will otherwise be deemed to be for
purposes of Section 365(n) of the United States Bankruptcy Code (Title 11, U.S. Code), as amended or any comparable Law outside
the United States (the “Bankruptcy Code”), licenses of rights to “intellectual property” as defined
in Section 101 (35A) of the Bankruptcy Code. Each licensing Party agrees that a licensed Party, as licensee of such rights under
this Agreement, will retain and may fully exercise all of its rights and elections under the Bankruptcy Code or any other provisions
of Law outside the United States that provide similar protection for “intellectual property.” Any agreement supplemental
hereto will be deemed to be “agreements supplementary to” this Agreement for purposes of Section 365(n) of the Bankruptcy
Code.

 

(b)         In the event that, as a result of bankruptcy, insolvency, or other similar proceeding by or against a licensing Party excluding
any rehabilitation or reorganization proceedings or other similar proceedings by or against a licensing Party, a licensed Party
is unable to obtain or retain the licenses set forth in Section 2.1 or Section 2.2 of this Agreement, as the case
may be under Section 365(n) of the Bankruptcy Code or provisions of the applicable federal, state or foreign law analogous to
Section 365(n) of the Bankruptcy Code, the licensed Party shall have a right to purchase the licensing Party’s right, title
and interest in and to Licensed Technology or Century Licensed Technology, as the case may be, at fair market value, provided
that the licensed Party gives the licensing Party written notice of such intention no later than four (4) weeks after the licensed
Party becomes aware of the commencement of such bankruptcy proceeding. The fair market value of the Licensed Technology or Century
Licensed Technology, as the case may be shall be determined by an assessment made by a mutually agreed upon third party, or, if
the Parties do not agree within thirty (30) days of the licensed Party’s written notice, a third party reasonably selected
by the licensed Party with a background in conducting such assessments subject to the proceedings by or against a licensing Party.
The costs of any such assessment shall be borne equally by the Parties.

    -12-

     

    

ARTICLE
3

Development, Commercialization and Manufacture

 

3.1         
General. Century shall be solely responsible for developing, preparing any and all regulatory filings for, obtaining Regulatory
Approval of, and commercializing Licensed Products in the Field and in the Territory, in its sole discretion.

 

3.2         
Diligence.

 

(a)          Century shall use Commercially Reasonable Best Efforts, or shall cause one or more of its Affiliates and Sublicensees to use Commercially
Reasonable Best Efforts, to [***]. Without limiting
the foregoing, Century shall use Commercially Reasonable Best Efforts to develop, seek Regulatory Approval of and commercialize
at least one (1) Licensed Product in the Territory and for the Field.

 

(b)         In the event CDI notifies Century of its election to Exploit the Licensed Product in the Field outside of the Territory in accordance
with Section 2.4, CDI shall use Commercially Reasonable Best Efforts to develop, seek Regulatory Approval of and commercialize [***].

 

(c)          Upon receipt by either Party of a bona fide term sheet from a Third Party for a license or a collaborative development program
with respect to a Licensed Product in a particular indication in the Field in such Party’s respective territory, if such
Party is not then Exploiting the Licensed Product in such indication, then such Party agrees to either (i) enter into good faith
negotiations with such Third Party with respect to sublicense under Section 2.5 or with respect to collaborative development
program with CDI or (ii) initiate an internal program for the Licensed Product in the particular indication in the Field in such
Party’s territory.

 

3.3         
Development Plan. Within ninety (90) days following the Series A financing of Century, Century shall create a first draft of a
development plan (including a manufacturing plan and a collaboration program ) for the Licensed Products (each, a “Development
Plan”) that describes, on a Calendar Year basis, (a) the proposed overall development program and objectives for Licensed Products
in the Territory and for the Field; (b) the anticipated timelines for such development activities; (c) the materials to be transferred
by the Parties for the performance of the development program; (d) the respective roles and responsibilities of each Party in connection
with such activities. CDI and its Affiliates shall be given reasonably adequate time to review and comment upon the Development Plan
before such Development Plan is finalized and for clarity, any final Development Plan shall include a manufacturing plan and a collaboration
program for the Licensed Products in sufficient detail to enable the Parties to discuss contract manufacturing and development arrangements
as soon as practicable following  

    -13-

     

    

the Effective Date. Century shall consider in good faith any comments to the Development Plan received
by CDI or its Affiliates. Notwithstanding anything to the contrary herein, Century shall have the final decision-making
authority with respect to the Development Plan and the performance of any activities therein; provided that, Century
will communicate to CDI any material amendments to the Development Plan and upon CDI’s request, Century will provide to
CDI the rationale for such amendments.

 

3.4         
JSC. The Parties shall establish a joint steering committee (the “Joint Steering Committee” or “JSC”),
that shall be purely advisory and shall be comprised of equal number of representatives of each Party. The JSC shall (a) discuss
the allocation of responsibilities for activities within the Development Plan (including collaboration program) and the design
and coordination of such activities; (b) discuss any potential TiPSC Lines that may come into existence during the Term; and (c)
encourage and facilitate cooperation and communication between the Parties with respect to the Development Plan. The JSC shall
be held at least twice in a Calendar Year.

 

3.5         
Progress Reports. Century shall provide, within sixty (60) days after the end of each Calendar Year, a status progress
report to CDI that summarizes the status of Century’s research, development and Commercialization efforts and activities
with respect to Licensed Products during such Calendar Year.

 

3.6         
Compliance. Each Party shall, and shall ensure that its Affiliates and Sublicensees, and its and their subcontractors,
conduct all development, manufacture and Commercialization of Licensed Products in compliance with all applicable Laws.

 

3.7         
Manufacturing.

 

(a)         
Subject to this Section 3.7(a), during the Term, CDI (and its Affiliates) shall have the exclusive right to manufacture and
supply human iPSC (including TiPSC) and the Licensed Products to Century, its Affiliates and Sublicensees for [***] beginning on the
Effective Date. If at any time following [***] of the Effective Date, Century wishes to have a Third Party manufacture
human iPSC (including TiPSC), Century shall discuss with CDI in good faith the possibility of using such Third Party to manufacture
human iPSC (including TiPSC), provided that Century shall have the sole discretion to determine whether to use CDI or such Third
Party for such manufacture of iPSC (including TiPSC). In the event that Century elects to use a Third Party manufacturer, CDI hereby
agrees to amend the terms of this Agreement for no additional consideration under this Agreement and without delay to provide
Century, its Affiliates and Sublicensees with the necessary licenses under the Licensed Technology for the Exploitation of such
products, including amending the definition of “Licensed Product” to remove the limitation that iPSC be exclusive
manufactured by CDI. The Parties shall negotiate in good faith as soon as reasonably practical the terms of a manufacturing and
supply agreement under which CDI or its Affiliate would itself manufacture and supply human iPSC (including TiPSC) and CDI and/or
its Affiliates or contractors would manufacture and supply the Licensed Products to Century, its Affiliates and Sublicensees (a
 “Supply Agreement”) and the terms of a quality agreement which would provide the responsibilities of Century and
CDI or its Affiliates for quality assurance of human iPSC (including TiPSC) and the Licensed Products referenced in the Supply
Agreement (a “Quality Agreement”).

    -14-

     

    

(b)          The Supply Agreement and Quality Agreement shall each contain terms and conditions that are commercially reasonable given the
terms of the Parties’ collaboration under this Agreement, including manufacturing capacity, quantity, forecasting, timeliness
of delivery, quality, cost, and failure of supply that are consistent with prevailing industry standards for Third Party contract
manufacturing agreements for comparable products.

 

(c)         
The Supply Agreement shall provide:

 

(i)           CDI’s (and its Affiliates) exclusive right to manufacture and supply human iPSC (including TiPSC) and the Licensed Products
to Century, its Affiliates and Sublicensees;

 

(ii)          obligations of CDI (or its Affiliates or contractors) to perform manufacturing activities in a good scientific manner and in compliance
in all material respects with all applicable Law; and

 

(iii)         Century’s ability to manufacture by itself or through its Affiliate, or to grant to a Third Party manufacturer, excluding
any manufacturer set forth on Schedule 3.7(a), (a “Century CMO”) the right to manufacture, the Licensed Products in
minimal quantities necessary to prevent a supply interruption in the event of a Non-Supply Event and for such purposes CDI’s
transfer of the Licensed Technology to Century or its Affiliate or such Third Party manufacturer, upon Century’s request.
Details of the technology transfer provided by CDI will be set forth in the Supply Agreement.

 

ARTICLE
4

Payment Terms

 

4.1         
Consideration. In consideration of the rights and licenses granted to Century herein, Century shall issue to CDI 7,500,000
shares of Common Stock of Century, $0.0001 par value per share (the “Common Stock”), which such issuance shall
take place on the Closing Date, as defined in the stock purchase agreement as to the Common Stock to be entered into between the
Parties (“Common Stock Purchase Agreement”). The detailed terms and conditions of CDI’s subscription
of the Common Stock are set forth in the Common Stock Purchase Agreement and the Subscription Agreement that the Parties and Versant
entered into on the Effective Date.

 

ARTICLE
5

Intellectual Property Protection and Related Matters

 

5.1         
Ownership. As between the Parties, each Party or its Affiliates shall solely own all Intellectual Property, including Patent
Rights related thereto, made, conceived, reduced to practice, or otherwise discovered, whether prior to, on or after the Effective
Date, solely by employees, agents and consultants of such Party or its Affiliates. For purposes of determining ownership under
this Section 5.1, inventorship shall be determined in accordance with the rules of inventorship under U.S. patent laws,
subject to applicable mandatory Law.

    -15-

     

    

5.2         
Prosecution and Maintenance of Licensed Patent Rights.

 

(a)         
As of the Effective Date, CDI shall have the first right to Prosecute and Maintain all Licensed Patent Rights worldwide within
the Field; provided that, subject to Section 5.2(b), CDI shall consult with and take into good-faith consideration
reasonably in advance any comments from Century with respect to such Prosecution and Maintenance, provided further that Century
shall respond to CDI’s request for consultation in a timely and diligent manner. CDI shall pursue in good faith all reasonable
claims requested by Century in the prosecution of any Licensed Patent Rights in the Territory. In the event CDI fails or chooses
not to Prosecute or Maintain any Licensed Patent Rights in a country within the Field, CDI shall provide Century written notice
of such decision at least thirty (30) days before any deadline for taking action to avoid abandonment (or other loss of rights)
of such Licensed Patent Rights within the Field and Century shall have the right, but not the obligation, in its sole discretion,
to Prosecute and Maintain such Licensed Patent Rights in such country within the Field at its own expense.

 

(b)         With respect to the Prosecution and Maintenance of any Licensed Patent Rights by CDI, CDI shall: (i) choose patent counsel reasonably
acceptable to the other Party; (ii) instruct such patent counsel to furnish Century with copies of all correspondence relating
to the Licensed Patent Rights within the Field received from the United States Patent and Trademark Office and any other patent
office promptly after receipt; (iii) instruct such patent counsel to furnish Century with copies of all correspondence relating
to the Licensed Patent Rights within the Field sent to the United States Patent and Trademark Office and any other patent office
promptly after it is sent; and (iv) instruct such patent counsel to furnish Century with copies of all proposed filings or other
correspondence to the United States Patent and Trademark Office and any other patent office in advance of such filing to permit
Century a reasonable opportunity to review and comment on such response. CDI shall include any reasonable and timely comments
from Century with respect to the Prosecution and Maintenance of the applicable Licensed Patent Rights within the Field within
the Territory and shall instruct its patent counsel to do so. Further, CDI shall permit Century to directly communicate with the
its patent counsel so long as CDI is copied in all important communication and shall not unreasonably refuse to implement any
reasonable and timely comment provided by Century to the extent they relate to any Licensed Patent Rights within the Field within
the Territory, or any claims therein, that cover the Licensed Products in the Field. For the avoidance of doubt, this Section
5.2(b) shall not apply with respect to Century in the event Century controls the Prosecution and Maintenance as a result of
CDI’s failure or election not to Prosecute and Maintain such Licensed Patent Rights within the Field within the Territory
pursuant to Section 5.2(a).

 

(c)         
Both Parties shall reasonably cooperate with each other and patent counsel in Prosecution and Maintenance of the Licensed Patent
Rights in all countries within the Field, including, as reasonably requested, (i) providing patent counsel with data and other
information as appropriate with respect thereto, (ii) providing any necessary powers of attorney (including limited powers of
attorney) and (iii) executing any other required documents or instruments for such Prosecution and Maintenance.

 

(d)          The
Party controlling the Prosecution and Maintenance of the applicable Licensed Patent Rights within the Field in accordance with Section
5.2(a) or 5.2(b), as 

    -16-

     

    

applicable, is referred to as the “Prosecuting Party”. The
Parties shall be equally responsible for the out-of-pocket costs for the Prosecution and Maintenance of all Licensed Patent Rights
within the Field. For clarity, such expenses shall not include any expenses of the other Party incurred by such other Party in
connection with (a) its reasonable and timely comment on patent prosecution, (b) its rights to undertake enforcement actions,
or (c) any actions undertaken by such other Party other than at the Prosecuting Party’s request. The Prosecuting Party also
agrees not to knowingly take any action to materially diminish the value of the Licensed Patent Rights within the Field.

 

5.3         
Third Party Infringement.

 

(a)          Each Party shall notify the other Party promptly of any knowledge it acquires of any actual or potential infringements of the
Licensed Patent Rights with respect to any activities of a Third Party in the Field in any country in the world and shall provide
the other Party with all available evidence regarding such known or suspected infringement or unauthorized use.

 

(b)         
Sole Right of Enforcement. Century shall have the first right, but not the obligation, to initiate a lawsuit or take other
reasonable action to enforce the Licensed Patent Rights, in each case solely in the case of infringement or unauthorized use or
misappropriation related to a Licensed Product in the Field within the Territory, or the manufacture, use, sale or import thereof,
in the Field within the Territory; provided that Century shall not take any action or settle any suit that materially affects
the scope and validity of the Licensed Patent Rights without the prior written approval of CDI (such consent not to be unreasonably
withheld, conditioned or delayed). CDI shall cooperate fully in the prosecution of any such suit or action as may be reasonably
requested by Century, including joining any action as party-plaintiff if required by law, regulation or court or administrative
order; provided that Century shall promptly reimburse all costs (including reasonable counsel fees and expenses) actually incurred
by CDI in connection with such cooperation. Century shall have the sole and exclusive right to select counsel for any suit or
action initiated by it pursuant to this Section 5.3(b) and shall bear its own costs incurred in any such suit or action,
including the fees and expenses of the counsel selected by it. Any amount recovered in any suit or action or settlement of any
such suit or action brought by Century pursuant to this Section 5.3(b) shall be allocated to Century. If Century fails
to initiate any law suit or take other reasonable action to enforce the Licensed Patent Rights within (A) one hundred eighty (180)
days following the notice of alleged infringement, unauthorized use or misappropriation or (B) ten (10) days before the time limit,
if any, set forth in the appropriate laws and regulations for the filing of such action, whichever comes first, CDI shall have
the right, but not the obligation, to bring and control any such action at its own expense and by counsel of its own choice, and
Century shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. Any amount
recovered in any suit or action or settlement of any such suit or action brought by CDI pursuant to this Section 5.3(b)
shall be allocated to CDI.

 

5.4         
Patent Invalidity Claim. During the Term, each Party shall promptly notify the other Party in the event of any legal or administrative
action by any Third Party against a Licensed Patent Right of which such Party becomes aware, including any nullity, revocation, reexamination
or compulsory license proceeding or similar proceeding. To the extent such 

    -17-

     

    

action is in
connection with an enforcement of such Patent Right under Section 5.3, Century’s rights with respect to
defending any such Patent Right in any such proceeding shall correspond to those set forth in Section 5.3, and the
non-enforcing Party, shall cooperate fully with the enforcing Party in preparing and formulating a response to such legal or
administrative action.

 

5.5         
Patent Term Extensions.  Century shall have the sole right to obtain patent term extensions or supplemental protection
certificates or their equivalents with respect to any Licensed Product in the Field, including with respect to any Licensed Patent
Right in the Territory and CDI shall reasonably cooperate with Century in connection therewith. CDI shall have the sole right
to obtain patent term extensions or supplemental protection certificates or their equivalents with respect to any Licensed Patent
Right in any country worldwide, and Century shall reasonably cooperate with CDI in connection therewith.

 

5.6         
Patent Marking. Century shall comply with the patent marking statutes in each country in which Licensed Products are sold
by or on behalf of Century and/or its Affiliates or Sublicensees.

 

5.7         
Third Party Licenses. To the extent either Party has any right to Prosecute and Maintain or enforce any Patent Rights or
otherwise be involved in such activities (including the right to decide on matters related to patent term extensions) pursuant
to a Third Party License, such Party shall exercise such rights in accordance consistent with this Article 5. To the extent
that a Third Party licensor of a Party has retained any right to Prosecute and Maintain or enforce any Patent Rights or otherwise
be involved in such activities (including the right to decide on matters related to patent term extensions) pursuant to a Third
Party License, such Party will use Commercially Reasonable Best Efforts to cause such Third Party licensor to take the actions
(or refrain from taking action, as applicable) consistent with this Article 5.

 

ARTICLE
6

Confidentiality

 

6.1          Confidential
Obligations. Each Party shall (a) maintain in strict confidence the Confidential Information of the other Party to the
same extent such Party maintains its own confidential information, but in no event less than a reasonable degree of care, (b)
not disclose such Confidential Information to any Third Party without the prior written consent of the other Party (except as
permitted pursuant to Section 6.3 below), and (c) not use such Confidential Information for any purpose except those
expressly permitted by this Agreement. The obligations of confidentiality, non-disclosure and non-use under this Section
6.1 shall be in full force during the Term and for a period of [***] thereafter. Each Party, upon the request
of the other Party, will return all copies of or destroy (and certify such destruction in writing) the Confidential
Information disclosed or transferred to it by the other Party pursuant to this Agreement, within sixty (60) days of such
request or, if earlier, the termination or expiration of this Agreement; provided, however that a Party may retain (i)
Confidential Information of the other Party which expressly survives such termination pursuant to this Agreement, and (ii)
one (1) copy of all other Confidential Information in archives solely for the purpose of establishing the contents thereof;
provided, further, that a Party is not required to return or destroy 

    -18-

     

    

Confidential Information contained in electronic
back-ups unless and until such Confidential Information is accessed.

 

6.2         
Exceptions to Confidentiality. Notwithstanding the foregoing, the obligations of confidentiality set forth in Section
6.1 shall not apply to information that, in each case as demonstrated by competent written documentation:

 

(a)         is publicly disclosed or made generally available to the public by the disclosing Party, either before or after it becomes known
to the receiving Party;

 

(b)         was known to the receiving Party, without any obligation to keep it confidential, prior to the date of first disclosure by the
disclosing Party to the receiving Party, as shown by the receiving Party’s files and records;

 

(c)         is subsequently disclosed to the receiving Party by a Third Party lawfully in possession thereof without obligation to keep it
confidential and without a breach of such Third Party’s obligations of confidentiality;

 

(d)         has been publicly disclosed or made generally available to the public other than through any act or omission of the receiving
Party or its Affiliates or their subcontractors or Sublicensees in breach of this Agreement;

 

(e)         has been independently developed by the receiving Party without the aid, application or use of the disclosing Party’s Confidential
Information (the competent written proof of which must be contemporaneous with such independent development); or

 

(f)          to WARF to the extent necessary to perform CDI’s obligations under the WARF License Agreement.

 

6.3         
Authorized Disclosure. Notwithstanding Section 6.1, a Party may disclose Confidential Information of the other Party
to the extent such disclosure is reasonably necessary in the following instances:

 

(a)         Prosecuting and Maintaining Patent Rights in accordance with this Agreement; provided that the non-filing Party whose Confidential
Information is being disclosed is given a reasonable opportunity to review the proposed disclosure of such Confidential Information
and the filing Party considers in good faith any comments provided by the non-filing Party;

 

(b)         communicating and making filings with Regulatory Authorities or otherwise complying with applicable Laws or submitting information
to tax or other governmental authorities; provided that if a Party is required by Law to make any public disclosure of
Confidential Information of the other Party, to the extent it may legally do so, it will give reasonable advance written notice
to the other Party of such disclosure and will use its reasonable efforts to secure confidential treatment of such Confidential
Information prior to its disclosure (whether through protective orders or otherwise), and shall disclose only that portion of
the Confidential Information which is legally required to be disclosed;

    -19-

     

    

(c)         
for Regulatory Approval of Licensed Products or to research, develop, make, have made, use, have used, offer to sell, sell, import,
export, Commercialize or otherwise exploit Licensed Products in accordance with this Agreement;

 

(d)         subject to Section 6.4(b), to its Affiliates, and to prospective and actual acquirers, lenders, licensees, and sublicensees,
and to each of their employees, consultants, contractors, agents, accountants, lawyers, advisors, investors and underwriters,
in each case only on a need to know basis, each of whom, in the case of Third Parties, prior to disclosure must be bound by written
or professional ethical obligations of confidentiality and non-use equivalent in scope to those set forth in this Article 6
and a disclosing Party shall be responsible for any breach of confidentiality by a receiving Party under this Section 6.3(d),
including Century CMO; or

 

(e)         
to the extent mutually agreed to in writing by the Parties.

 

6.4         
Press Releases and Other Permitted Disclosures.

 

(a)         
CDI and Century each agree not to disclose any of the terms and conditions of this Agreement to any Third Party, except as described
below in this Section 6.4 or as otherwise agreed in writing by the Parties. The Parties have agreed on a press release
to be issued by each Party announcing this Agreement after the Effective Date in substantially the form set forth in Exhibit D;
provided that the timing of the publication and release of such press release is in the sole discretion of an announcing Party.
Each Party shall have the right to disclose the existence of this Agreement, including that the fact that such Party has received
a license to the other Party’s Licensed Technology or Century Technology, as applicable without disclosing the Licensed
Know-How or Century Know-How. Subject to the other provisions of this Agreement, no other press release, public statement or public
disclosure concerning the existence or terms of this Agreement shall be made, either directly or indirectly, by either Party without
the prior written approval of the other Party. If disclosure of the terms and conditions of this Agreement or its filing publicly
is required by applicable Law or applicable stock exchange regulation, or by order or other ruling of a competent court or governmental
authority, as set forth in Section 6.4(d), then CDI or Century or its respective Affiliates, as the case may be, may also
disclose such terms or this Agreement in a public statement or disclosure subject to Section 6.3(b). Once any public statement
or public disclosure has been approved in accordance with this Section 6.4, then either Party may appropriately communicate
information contained in such permitted statement or disclosure.

 

(b)          Century may disclose the terms and conditions of this Agreement to (i) its Affiliates, employees, consultants, agents or
professional advisors (including attorneys, accountants and actual and prospective investment bankers), (ii) actual or
potential investors, lenders, Sublicensees, licensees, licensors or collaborators, or (iii) acquirers or merger
partners that have entered into a letter of intent or are actively negotiating a definitive acquisition or merger
agreement with Century; in each case under the foregoing clause (i), (ii) or (iii), under obligations of confidentiality at
least as restrictive as those set forth herein, and solely in connection with Century performing its obligations or
exercising its rights under this Agreement or for the purpose of assisting the recipient with evaluating and entering
into a transaction with Century.

    -20-

     

    

(c)          CDI may disclose the terms and conditions of this Agreement to (i) its Affiliates, employees, consultants, agents or professional
advisors (including attorneys, accountants and actual and prospective investment bankers), (ii) WARF, (iii) actual or potential
investors, lenders or licensees, or (iv) acquirers or merger partners that have entered into a letter of intent or are actively
negotiating a definitive acquisition or merger agreement with CDI; in each case under the foregoing clause (i), (ii) (iii) or
(iv), under obligations of confidentiality at least as restrictive as those set forth herein, and solely in connection with CDI
performing its obligations or exercising its rights under this Agreement or for the purpose of assisting the recipient with evaluating
and entering into a transaction with CDI; provided, however, that CDI shall redact financial terms from any such disclosure
made to any actual or potential licensee.

 

(d)         Notwithstanding the foregoing provisions of this Article 6, a Party or its Affiliates may disclose the existence and terms
of this Agreement or the Confidential Information of the other Party where required, as reasonably determined by the legal counsel
of the disclosing party, by applicable Law, by applicable stock exchange regulation or by order or other ruling of a competent
court or other governmental authority, although, to the extent practicable, the other Party shall be given at least five (5) Business
Days advance written notice of any such legally required disclosure to comment and the disclosing party shall reasonably consider
such comments provided by such other Party on the proposed disclosure. In case either Party or its Affiliates is obliged to publicly
disclose or file this Agreement as a “material agreement” in accordance with applicable Law or applicable stock exchange
regulations (“SEC Filing”), this Agreement shall be redacted by the filing party to the extent permissible
upon the reasonably advice of legal counsel, and the filing party shall provide the other Party a copy of such redacted agreement
in advance of such SEC Filing to give reasonable opportunity the other Party to review and comment on the scope of such redaction
in consultation with their own counsel; provided that the filing arty shall consider in good faith any comments provided
by such other Party.

 

ARTICLE
7

Representations, Warranties and Covenants

 

7.1         
Representations of Authority.  Each Party represents and warrants to the other that as of the Effective Date it has full
right, power and authority to enter into this Agreement and to perform its respective obligations under this Agreement.

 

7.2         
Consents. Each Party represents and warrants that as of the Effective Date all necessary consents, approvals and authorizations
of all government authorities and other Persons required to be obtained by such Party in connection with execution, delivery and
performance of this Agreement have been obtained.

 

7.3          No
Conflict. Each Party represents and warrants that, as of the Effective Date, the execution and delivery of this
Agreement and the performance of such Party’s obligations hereunder (a) do not conflict with or violate any requirement
of applicable Laws and (b) do not conflict with, violate or breach or constitute a default of, or require any consent under,
any

    -21-

     

    

 contractual obligations of such Party, except such consents as have been obtained as of the Effective Date.

 

7.4         
Employee, Consultant and Advisor Obligations. Each Party represents and warrants that, as of the Effective Date, each of
its and its Affiliates’ employees, consultants and advisors has executed an agreement or has an existing obligation under
law obligating such employee, consultant or advisor to maintain the confidentiality of Confidential Information to the extent
required under Article 6.

 

7.5         
Intellectual Property.

 

(a)         
Each Party represents and warrants to the other Party that (i) it owns or Controls the entire right, title and interest in and
to the Licensed Patent Rights or Century Patent Rights, as the case may be, free and clear of all liens, charges and encumbrances,
(ii) it has the right to grant to the other Party the rights and licenses under the Licensed Patent Rights and Century Patent
Rights granted in this Agreement and has not previously assigned, transferred, conveyed or otherwise encumbered its right, title
and interest in such Patent Rights in any manner inconsistent with the terms hereof, and will not take any of the foregoing actions
in any manner inconsistent with the terms hereof, (iii) none of the Licensed Patent Rights or Century Patent Rights was fraudulently
procured from the relevant governmental patent granting authority, (iv) as of the Effective Date, there is no claim or demand
of any Person pertaining to, or any proceeding which is pending or threatened, that asserts the invalidity, misuse or unenforceability
of the Licensed Patent Rights or Century Patent Rights or challenges its ownership of such Patent Rights or makes any adverse
claim with respect thereto, including any claim that such Patent Rights infringe or misappropriate Intellectual Property of any
Third Party, and, to the knowledge of such Party (without any duty to investigate), there is no basis for any such claim, demand
or proceeding, (v) to the knowledge of such Party (without any duty to investigate), as of the Effective Date, the Licensed Patent
Rights or Century Patent Rights are not being infringed by any Third Party, (vi) the Licensed Patent Rights or Century Patent
Rights include all Patent Rights that are owned or exclusively licensed by it as of the Effective Date and (vii) none of its Affiliates
own or control, as of the Effective Date, any Patent Rights pertaining to differentiation of human iPSC that are reasonably necessary
to Exploit a Licensed Product.

 

(b)         During the Term, each Party shall retain and maintain sufficient legal or beneficial title and ownership of, or sufficient
license rights under, any Licensed Patent Rights or Century Patent Rights to enable such Party to grant the licenses and
rights to such Patent Rights that would be granted to the other Party under, and as reasonably necessary to practice, such
Patent Rights in accordance with the license to be granted under this Agreement. Neither Party shall, during the Term, sell,
assign, transfer, license, pledge, fail to maintain control of, otherwise dispose of, or grant any option or other right,
title or interest in to or under, or incur any lien or encumbrance on, any Licensed Patent Rights or Century Patent Rights,
or respective rights and licenses under this Agreement as the case may be. Notwithstanding any provision to the contrary, a
Party may sell, assign, transfer, license, pledge, fail to maintain control of, otherwise dispose of, or grant any option or
other right, title or interest in to or under, or incur any lien or encumbrance on, any Patent Rights licensed under this
Agreement to any Affiliate of such Party so long as such Party’s obligations as licensor remains unchanged under this
Agreement and its 

    -22-

     

    

Affiliate shall become jointly and severally responsible as a licensor together with such Party under this
Agreement.

 

(c)         
If During the Term, CDI develops, conceives, generates any Intellectual Property pertaining to differentiation of human iPSC that
are reasonably necessary to Exploit the Licensed Products, CDI shall maintain Control over such Intellectual Property and shall
not transfer, assign or license such Intellectual Property to an Affiliate of CDI or to any third party without the prior consent
of Century.

 

7.6         
No Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, THE PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES
OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT,
OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS ARE MADE OR GIVEN BY OR ON BEHALF OF A PARTY. EXCEPT AS EXPRESSLY
STATED IN THIS AGREEMENT, ALL REPRESENTATIONS AND WARRANTIES, WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE, ARE HEREBY EXPRESSLY
EXCLUDED.

 

ARTICLE
8

Indemnification; Insurance; and Limitation on Damages

 

8.1         
By Century. Century agrees to defend CDI, its Affiliates and their respective directors, officers, employees, consultants
and agents at Century’s cost and expense, and shall indemnify and hold harmless CDI and its Affiliates and their respective
directors, officers, employees, consultants and agents from and against any liabilities, losses, costs, damages, fees or expenses
arising out of any Third Party (excluding any Affiliate) claim, suit, action or demand relating to (a) any breach by Century of
any of its representations, warranties or obligations pursuant to this Agreement, (b) personal injury, property damage or other
damage resulting from the Exploitation of Licensed Products in the Field within the Territory by or on behalf of Century or its
Affiliates or Sublicensees or (c) the willful misconduct or grossly negligent acts of Century, its Affiliates, subcontractors,
licensee or Sublicensees (excluding CDI and its Affiliates as licensees or Sublicensees of Century hereunder); excluding, in each
case (a), (b) and (c), any damages or other amounts for which CDI has an obligation to indemnify Century pursuant to Section
8.2, as to which damages or amounts each Party shall indemnify the other to the extent of their respective liability for such
damages or amounts.

 

8.2         
By CDI. CDI agrees to defend Century, its Affiliates and their respective directors, officers, employees, consultants and agents
at CDI’s cost and expense, and shall indemnify and hold harmless Century and its Affiliates and their respective directors, officers,
employees, consultants and agents from and against any liabilities, losses, costs, damages, fees or expenses arising out of any Third
Party (excluding any Affiliate) claim, suit, action or demand relating to (a) any breach by CDI of any of its representations, warranties
or obligations pursuant to this Agreement, (b) personal injury, property, damage or other damage resulting from the Exploitation of Licensed
Products in the Field outside the Territory by or on behalf of CDI, its Affiliates or Sublicensees or (c) the willful misconduct or grossly
negligent acts of CDI, its Affiliates, subcontractors, licensee or Sublicensees (excluding Century and its Affiliates as

    -23-

     

    

 licensees or Sublicensees to
CDI hereunder); excluding, in each case (a), (b) and (c), any damages or other amounts for which Century has an obligations
to indemnify CDI pursuant to Section 8.1, as to which damages or amounts each Party shall indemnify the other to the
extent of their respective liability for such damages or amounts.

 

8.3         
Procedures. A Person entitled to indemnification under this Article 8 (an “Indemnified Party”)
shall give prompt written notification to the Party from whom indemnification is sought (the “Indemnifying Party”)
of any claim, suit, action or demand for which indemnification is sought under this Agreement; provided, however, that
no delay or failure on the part of an Indemnified Party in so notifying the Indemnifying Party shall relieve the Indemnifying
Party of any liability or obligation hereunder except to the extent of any damage or liability caused by or arising out of such
delay or failure. Within thirty (30) days after delivery of such notification, the Indemnifying Party may, upon written notice
thereof to the Indemnified Party, assume control of the defense of such claim, suit, action or demand with counsel reasonably
satisfactory to the Indemnified Party. If the Indemnifying Party does not assume control of such defense, the Indemnified Party
shall control such defense. The Party not controlling such defense may participate therein with counsel of its own choosing at
its own expense; provided that, the Indemnified Party shall have the right to retain its own counsel, at the expense of
the Indemnifying Party, if representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be
inappropriate because of actual or potential differences in the interests of such Indemnified Party and any other party represented
by such counsel. The Indemnified Party shall not agree to any settlement of such action, suit, proceeding or claim without the
prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, delayed or conditioned.

 

8.4         
Insurance. Each Party shall procure and maintain insurance or self-insurance, including general liability insurance and,
starting at the time at which a Licensed Product first enters clinical testing in human subjects by or on behalf of Century or
its Affiliates or Sublicensees, product liability insurance, in each case adequate to cover its obligations hereunder and consistent
with normal business practices of prudent companies similarly situated, which insurance shall identify the other Party as an additional
insured starting at the time at which a Licensed Product first enters clinical testing in human subjects by or on behalf of Century
or its Affiliates or Sublicensees. It is understood that any such insurance shall not be construed to create a limit of each Party’s
liability with respect to its indemnification obligations under this Article 8. Each Party shall provide the other Party
with written evidence of such insurance upon request. Each Party shall provide the other Party with written notice at least thirty
(30) days prior to the cancellation, non-renewal or material change in such insurance or self-insurance which could adversely
affect rights hereunder.

 

8.5         
No Consequential or Punitive Damages. EXCEPT WITH RESPECT TO (A) THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER
PARTY UNDER THIS AGREEMENT WITH RESPECT TO THIRD PARTY CLAIMS, SUITS, ACTIONS OR DEMANDS, (B) A BREACH OF ARTICLES 2.5(c) or 3.7(a)
OR (C) A BREACH OF THE CONFIDENTIALITY AND NON-USE OBLIGATIONS OF ARTICLE 6, NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT,
INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, 

    -24-

     

    

INCLUDING LOST PROFITS, ARISING
FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES.

 

8.6         
Limitation of CDI’s Liability. CDI’s liability for any damages arising out of or related to this Article
8 shall under no circumstances exceed [***] US dollars.

 

ARTICLE
9

Term and Termination

 

9.1         
Term. This Agreement shall become effective as of the Effective Date and shall otherwise remain in effect, unless terminated
as set forth in this Article 9 (the “Term”).

 

9.2         
Termination for Material Breach.

 

(a)          Any failure by a Party (the “Breaching Party”) to comply with any of its material obligations contained in
this Agreement (such failure, a “Material Breach”) shall entitle the other Party (the “Non-Breaching
Party”) to give to the Breaching Party written notice specifying the nature of the Material Breach, requiring the Breaching
Party to cure such Material Breach.

 

(b)          If such Material Breach is not cured within sixty (60) days after the receipt of notice pursuant to Section 9.2(a) above,
the Non-Breaching Party shall be entitled to terminate this Agreement on written notice to the Breaching Party and without prejudice
to any of its other rights conferred on it by this Agreement; provided that if a Material Breach cannot reasonably be cured within
such sixty (60)-day period and the Breaching Party promptly delivers a plan to cure such Material Breach (reasonably acceptable
to the Non-Breaching Party) and cures such Material Breach up to a maximum cure period of one hundred twenty (120) days from the
date of initial notice; further provided, however, that if the Breaching Party disputes the existence of a Material Breach, the
matter shall be submitted for resolution in accordance with Section 10.11, and the Breaching Party shall not have the right
to terminate this Agreement unless and until a final decision of Material Breach is rendered under Section 10.11 and the
Breaching Party fails to cure such Material Breach within sixty (60) days thereafter.

 

9.3         
Termination for Failure to Develop a Licensed Product. If Century fails to develop a Licensed Product within four (4) years of successful completion of the first proof of concept clinical trial
for such Licensed Product in the U.S. or E.U., CDI shall have the right to terminate this Agreement pursuant to the terms of this Section
9.3. Notwithstanding the foregoing CDI may extend such four year term if Century demonstrates based on reasonable evidence that Century
or its Affiliates or their Sublicensees have been diligently pursuing the development of a Licensed Product following the successful completion
of the first proof of concept clinical trial for such Licensed Product in the U.S. or E.U and will complete the development of a Licensed
Product within a year from the expiry of the four (4) year term following the successful completion of the first proof of concept clinical
trial for such Licensed Product in the US or EU.

 

9.4         
Termination for Cause concerning Reprogramming License. In the event that (i) the Reprogramming License Agreement expires
or terminates for any reason or (ii) WARF 

    -25-

     

    

License
expires or terminates for any reason, CDI shall be entitled to terminate this Agreement with an immediate effect upon a written
notice to Century.

 

9.5         
Termination for Bankruptcy. To the extent allowed under applicable Law, either Party shall have the right to terminate
this Agreement in the event that the other Party admits its inability to pay its debts generally as they become due or in the
event of the commencement of any proceeding in or for bankruptcy, insolvency, dissolution or winding up by or against the other
Party (other than pursuant to a corporate restructuring), or the appointment of a receiver or similar agent by a court of competent
jurisdiction, that is not dismissed or otherwise disposed of within sixty (60) days thereafter and/or the administrator of the
bankruptcy estate or the Party under in-court restructuring has not, within five (5) days after the receipt of an inquiry from
the other Party, confirmed that the bankruptcy estate or the Party under in-court restructuring will adopt this Agreement.

 

9.6         
Termination for Convenience. Century may terminate this Agreement, at any time and for any reason or no reason, in its
entirety or on an indication-by-indication basis, a Licensed Product-by-Licensed Product basis (to exclude such product from the
Field) or country-by-country basis (to eliminate such country from the Territory), by providing ninety (90) days’ prior
written notice to CDI. The termination shall become effective at the end of the ninety (90) day period. The indication in respect
of which Century terminates this Agreement is called the Abandoned Indication.

 

9.7         
Effects of Termination.

 

(a)         
Generally. Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to
such expiration or termination. Any expiration or termination of this Agreement shall be without prejudice to the rights of either
Party against the other accrued or accruing under this Agreement prior to expiration or termination. Termination of this Agreement
shall be in addition to, and shall not prejudice, the Parties’ remedies at law or in equity, including the Parties’
ability to receive legal damages or equitable relief with respect to any breach of this Agreement, regardless of whether or not
such breach was the reason for the termination. In the event of any early termination of this Agreement, the Parties will work
together in good faith to determine and implement reasonable wind-down procedures with respect to relevant Licensed Product-related
activities ongoing at the time of such termination, which shall include continuation of the licenses granted to Century hereunder
(and subject to the continuing terms and conditions of this Agreement) to permit Century and its Affiliates and Sublicensees to
continue and complete any ongoing clinical trials of Licensed Products and to make or have made such Licensed Products as necessary
to continue and complete such clinical trials; provided, however, in that the event such termination is by CDI pursuant
to Section 9.2, such activities shall be limited to those necessary for Century to comply with regulatory obligations,
or medical or ethical obligations to patients consistent with industry standards.

 

(b)         Return
or Destruction of Confidential Information. Upon the expiration or termination of this Agreement, each Party
shall promptly return or destroy all of such other Party’s Confidential Information that relates to a Licensed Products
or that was provided by or on behalf of such other Party hereunder that is in the possession or control of such Party (or any 

    -26-

     

    

of its Affiliates), except that such Party will have the right maintain one (1) copy of intangible Confidential Information
of such other Party for legal and archival purposes.

 

(c)          Product Reversion. Subject to Section 2.5(b), upon termination of this Agreement, Century shall negotiate in good
faith with CDI for a period not to exceed sixty (60) days from the effective date of termination the terms and conditions of an
agreement under which Century will transfer the development, manufacture and Commercialization of the Licensed Products to CDI,
including a license under any Regulatory Documentation, Know-How and Patent Rights developed or used by Century in the development,
manufacture and Commercialization of the Licensed Products within the Field in the Territory. If the Parties fail to agree on
such terms and conditions and execute such an agreement within such sixty (60)-day period, then Century shall have no obligations
to transfer any such items or grant a license under any such Regulatory Documentation, Know-How or Patent Rights.

 

9.8         
Survival. The following provisions shall survive the expiration or termination of this Agreement: Article 1 (Definitions)
(to the extent necessary to give effect to other surviving provisions), Article 5 (Intellectual Property), Article 6
(Confidentiality), Article 8  (Indemnification; Insurance; and Limitation on Damages) (other than Section 8.4
(Insurance)) and Article 10 (Miscellaneous Provisions), and Sections 2.5(b) (Sublicensing), 9.7 (Effects
of Termination) and this Section 9.8 (Survival).

 

ARTICLE
10

Miscellaneous Provisions

 

10.1        Governing Law; Language. This Agreement and all disputes arising out of or related to this Agreement shall be construed
and the respective rights of the Parties determined in accordance with the laws of the State of Wisconsin, U.S.A., excluding application
of any conflict of laws. This Agreement and all communications related to it, or to any dispute or controversy arising out of
it, shall be conducted in English.

 

10.2       
Notice.  Any notices required or permitted by this Agreement shall be in writing, shall specifically refer to this Agreement,
and shall be sent by hand, recognized national overnight courier, confirmed electronic mail or registered or certified mail, postage
prepaid, return receipt requested, to the following address of the Parties:

 

If
to CDI:

 

FUJIFILM
Cellular Dynamics, Inc. 

525
Science Drive, Madison, WI 53711 

Attention:
Chief Technology Officer 

Email:
fcdi-licensing@cellulardynamics.com

 

With
a copy to:

 

FUJIFILM
Cellular Dynamics, Inc. 

525
Science Drive, Madison, WI 53711 

Attention:
General Counsel

    -27-

     

    

If
to Century:

 

Century
Therapeutics, Inc. 

54
West 21st Street, Suite 408, New York, NY 10010 

Attention:
Chief Executive Officer 

Email:
lalo@centurytherapeutics.com

 

With
a copy to:

 

Goodwin
Procter LLP 

100
Northern Avenue 

Boston,
MA 02210 

Attention:
Mitchell S. Bloom, Esq. 

Email:
mbloom@goodwinlaw.com

 

All
notices under this Agreement shall be deemed effective upon receipt. A Party may change its contact information immediately upon
written notice to the other Party in the manner provided in this Section 10.2.

 

10.3        
Assignment. Neither Party may, without the consent of the other Party, assign or transfer any of its rights and obligations
hereunder; provided that each Party may assign this Agreement, in its entirety, without the consent of the other Party,
(a) in connection with a sale or transfer of all or substantially all of the business and assets of each Party to which this Agreement
relates, including by way of merger, consolidation, transfer, or sale of assets related to this Agreement or (b) to an Affiliate
or in connection with a reorganization, provided, further that in each case each Party shall ensure that upon any assignment or
transfer under this Section 10.3 the assignee or transferee or an Affiliate, as the case may be, agrees in writing, in
form and substance reasonably satisfactory to the other Party, to perform and comply with all obligations of such Party under,
and to be bound by the terms and conditions of, this Agreement as if such assignee or transferee or an Affiliate were a direct
party to this Agreement. Any assignment in circumvention of the foregoing shall be void. Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns. For
clarity, if Century is involved in a change of control with a Third Party, then: (a) the Patent Rights and Know-How controlled
by such Third Party (or any Affiliate thereof, excluding Century as a result of such transaction) existing as of the date of closing
of such change of control (if such Third Party becomes the assignee of this Agreement); or (b) the Patent Rights and Know-How
controlled by such Third Party (if such Third Party remains an Affiliate of Century), in each case, will be excluded from the
definition of Century Know-How and Century Patent Rights, unless Century or its Third Party acquirer actually uses or applies
any such Patent Rights or Know-How to Exploit any Licensed Product (which such Patent Rights or Know-How will be Century Patent
Rights or Century Know-How, as applicable, for purposes of this Agreement).

 

10.4         Entire Agreement.  This Agreement constitutes the entire agreement between the Parties with respect to its subject matter
and supersedes all prior agreements or understandings between the Parties relating to its subject matter.

    -28-

     

    

10.5        
Interpretation.  The captions and headings to this Agreement are for convenience only, and are to be of no force or effect
in construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Articles,
Sections or Exhibits mean the particular Articles, Sections or Exhibits to this Agreement and references to this Agreement include
all Exhibits hereto. Unless context otherwise clearly requires, whenever used in this Agreement: (a) the words “include”
or “including” shall be construed as incorporating, also, “but not limited to” or “without limitation;”
(b) the word “day” or “year” means a calendar day or year unless otherwise specified; (c) the word “notice”,
 “consent”, or “approval” and references to other written communications contemplated under this Agreement
shall mean notice, consent, approval or communication in writing (whether or not specifically stated); (d) the words “hereof,”
 “herein,” “hereby” and derivative or similar words refer to this Agreement (including any Exhibits); (e)
the word “or” shall be construed as the inclusive meaning identified with the phrase “and/or;” (f) provisions
that require that a Party or the Parties hereunder “agree,” “consent” or “approve” or the
like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter or
otherwise; (g) words of any gender include the other gender; (h) words using the singular or plural number also include the plural
or singular number, respectively; and (i) the word “law” (or “laws”) when used herein means any applicable,
legally binding statute, ordinance, resolution, regulation, code, guideline, rule, order, decree, judgment, injunction, mandate
or other legally binding requirement of a government entity, together with any then-current modification, amendment and re-enactment
thereof, and any legislative provision substituted therefor. The Parties and their respective counsel have had an opportunity
to fully negotiate this Agreement. If any ambiguity or question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue
of the authorship of any provision of this Agreement. No prior draft of this Agreement shall be used in the interpretation or
construction of this Agreement.

 

10.6        
Amendment and Waiver.  This Agreement may be amended, supplemented, or otherwise modified only by means of a written instrument
signed by an authorized representative of both Parties. Any waiver of any right or failure to act in a specific instance shall
relate only to such instance and shall not be construed as an agreement to waive any right or fail to act in any other instance,
whether or not similar.

 

10.7        
Severability.  In the event that any provision of this Agreement shall be held invalid or unenforceable for any reason,
such invalidity or unenforceability shall not affect any other provision of this Agreement. The Parties shall consult one another
and use reasonable efforts to agree upon a valid and enforceable provision that is a reasonable substitute for the invalid or
unenforceable provision and this Agreement shall be automatically amended to reflect such mutually agreed provision.

 

10.8         Use
of Name. Neither Party shall use the other Party’s name (except in connection with disclosures permitted under Article
6) or logo without the other Party’s express prior written consent, which consent may be granted in the context
of the Parties mutually approving a press release or other public disclosure related to this Agreement.

    -29-

     

    

10.9        
Counterparts. This Agreement may be executed in counterparts, each of which counterparts, when so executed and delivered,
shall be deemed to be an original, and all of which counterparts, taken together, shall constitute one and the same instrument.

 

10.10      
Force Majeure.  Neither Party will be responsible for delays resulting from causes beyond the reasonable control of such
Party, including fire, explosion, flood, war, strike, or riot, provided that the nonperforming Party uses Commercially
Reasonable Best Efforts for a company of its size and resources to avoid or remove such causes of nonperformance and continues
performance under this Agreement with reasonable dispatch whenever such causes are removed.

 

10.11      
Dispute Resolution

 

(a)         
Escalation. If any dispute arises out of or relates to this Agreement, the Parties agree to first seek to resolve such
dispute by referring such dispute to the respective Chief Executive Officers of each Party for resolution. Such referral shall
take place within thirty (30) days after a written request by either Party to the other Party that resolution by the Chief Executive
Officers be attempted. If, within sixty (60) days following the dispute being referred to the Chief Executive Officers of the
Parties, the Chief Executive Officers of the Parties have not resolved the dispute, and a Party wishes to pursue the matter, such
Party may initiate binding arbitration in accordance with Section 10.11(b).

 

(b)         
Alternative Dispute Resolution. Any dispute arising out of or relating to this Agreement that has not been resolved pursuant
to Section 10.11(a) shall be shall be finally settled, in Tokyo in the event Century is a claimant and in New York in the
event CDI is a claimant, under the Rules of Arbitration of the International Chamber of Commerce (“ICC”). The
arbitral tribunal shall consist of three arbitrators, one nominated by the claimant in the request for arbitration, the second
nominated by the respondent within thirty (30) days of receipt of the request for arbitration, and the third, who shall act as
presiding arbitrator, nominated by the two party appointed arbitrators within twenty (20) days of the nomination of the second
arbitrator. If any arbitrators are not nominated within these time periods, the ICC the International Court of Arbitration shall,
upon the request of any Party, make the appointment(s).

 

(c)         
No Limitation. Nothing in this Section 10.11 shall be construed as limiting in any way the right of a Party to seek
a preliminary injunction or other provisional relief with respect to any actual or threatened breach of this Agreement or to bring
an action in aid of arbitration. Should any Party seek an injunction or other equitable relief, or bring an action in aid of arbitration,
then for purposes of determining whether to grant such injunction or other equitable relief, or whether to issue any order in
aid of arbitration, the dispute underlying the request for such injunction or other equitable relief, or action in aid of arbitration,
may be heard by the court in which such action or proceeding is brought.

 

10.12     
No Third Party Beneficiaries.  No Person other than Century, CDI and their respective Affiliates, successors and permitted
assignees hereunder, shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement.

    -30-

     

    

10.13     
Independent Contractors. It is expressly agreed that Century and CDI shall be independent contractors and that the relationship
between Century and CDI shall not constitute a partnership, joint venture or agency. Neither Century nor CDI shall have the authority
to make any statements, representations, or commitments of any kind, or to take any action, which shall be binding on the other
Party, without the prior written consent of such other Party.

 

[remainder
of page intentionally left blank]

    -31-

     

    

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

 

	FUJIFILM CELLULAR DYNAMICS, INC	 	CENTURY THERAPEUTICS, INC.
	 	 	 	 	 
	By:	/s/ Seimi
    Satahe	 	By:	/s/ Osvaldo
    Flores
	Name:	Seimi
    Satahe	 	Name:	Osvaldo
    Flores
	Title:	CEO	 	Title:	Chief
    Executive Officer

    -32-

     

    

Schedule
3.7(a)

 

Prohibited
Third Party Manufacturers

 

[***]

    -33-

     

    

Exhibit
A

 

Licensed
Know-How

 

[***]

    H-1

     

    

Exhibit
B

 

Licensed
Patent Rights

 

[***]

     

     

    

Exhibit
D

 

Press
Release

 

[***]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00329-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00329-of-00352.parquet"}]]