Document:

Development and Supply Agreement

 Exhibit 10.33 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
  
 EXECUTION COPY 
  
 DEVELOPMENT AND SUPPLY AGREEMENT 
  
 This Development and Supply Agreement (the “Agreement”) is made and entered into as of the 1st day of August, 1999 (the “Effective
Date”) by and between XCYTE THERAPIES, INC., a Delaware corporation with offices at 1124 Columbia Street. Suite 130 Seattle, Washington 98104 (hereinafter referred to as “Xcyte”), and DYNAL A.S., a Norwegian corporation,
with offices at P.O. Box 158, Skøyen, N-0212 Oslo, Norway (hereinafter referred to as “Dynal”). 
  
 WITNESSETH: 
  
 WHEREAS Dynal has substantial knowledge and a proprietary position and expertise relating to research, development, manufacture and distribution of
products and technology for biomagnetic separation and handling of cells, microorganisms, bacteria, proteins and nucleic acids; 
  
 WHEREAS Xcyte has substantial knowledge and a proprietary position and expertise relating to the ex vivo expansion and activation of
T-cells; 
  
 WHEREAS prior to entering into this Agreement
the parties executed a Letter Agreement dated October 27, 1999 (the “Letter Agreement”) whereby Xcyte paid Dynal the sum of [*] in consideration for certain development activities conducted by Dynal prior to the Signing Date;
and 
  
 WHEREAS Dynal and Xcyte wish to establish a
development and supply agreement whereby Dynal will develop, manufacture and supply certain products that will incorporate certain paramagnetic particles (with and without antibodies) to be commercialized by Xcyte in one or more therapies in the
Field (as such term is defined below), as set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

  
 SECTION 1: DEFINITIONS OF TERMS 
  
 1.1 “Affiliate” shall mean a person or entity that, directly
or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, a party to this Agreement. As used in this definition, “control” means owning more than fifty percent (50%) of such an
entity or party to this Agreement. 

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 1.2 “Antibodies” shall mean the antibodies described in the antibody specifications set forth in Attachment
A hereto. The antibody specifications set forth in Attachment A may be modified from time to time by the mutual agreement of the parties (including modifications as may be appropriate to include the release criteria for Phase III) and
neither party shall unreasonably withhold its consent to modifications proposed by the other party. 
  
 1.3 “Assays” shall mean the assays determined mutually by the parties (except that Xcyte shall determine the functional Assays performed
and paid for by Xcyte pursuant to Section 2.8, with Dynal’s acceptance (such acceptance not to be unreasonably withheld)) and set forth in a Work Plan to be required for the completion of the work called for in such Work Plan, including
all existing or to-be-developed standards, specifications, validation protocols and reports related thereto. 
  
 1.4 “Nascent Beads” shall mean any beads or paramagnetic particles that are not conjugated with antibodies or any other materials or
substances or coated with any materials or substances. 
  
 1.5
“CD3x28 Beads” shall mean any paramagnetic particles or beads that are doubly conjugated with antibodies to CD3 and antibodies to CD28 and that are not conjugated with any other antibodies. 
  
 1.6 “cGMP” shall mean current Good Manufacturing Practices,
as defined in 21 CFR Part 210, Part 211, Part 610 and Part 680. 
  
 1.7 “Development Phase” shall mean and refer to, as the context indicates the period during the term of this Agreement starting on the Effective Date and ending when Xcyte receives final marketing approval from the U.S.
Food and Drug Administration or any successor thereto (the “FDA”) to use the Products in the Field for the first indication under this Agreement. 
  
 1.8 “DMF” shall mean a drug master file or device master file, as the context indicates (or the non-U.S.
equivalent as appropriate in each country of the Territory) or any related regulatory filing. 
  
 1.9 “Dynabeads® M-450 CD3/CD28 T” shall mean the Dynabeads® M-450 CD3/CD28 beads consisting of Dynabeads® M-450 epoxy beads conjugated with the Antibodies, to be developed and manufactured pursuant to this Agreement in accordance with the Dynabeads® M-450 CD3/CD28 T Specifications. 
  
 1.10 “Dynabeads® M-450 Epoxy T” shall mean Dynabeads® M-450 epoxy beads, to be developed and manufactured pursuant to this Agreement in
accordance with the Dynabeads® M-450 Epoxy T
Specifications. 
  
 1.11 “Field” shall mean ex
vivo expansion and/or activation of T-cells using CD3x28 Beads (whether or not in conjunction with one or more other beads, paramagnetic particles, steps or procedures) for Therapeutic Use; provided, however, that the Field shall
exclude the following: 
  
  

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 [*] 
  
 1.12 “Patents” shall mean all patents and patent applications, and all additions, divisions, continuations, continuations in-part,
pipeline protection, substitutions, reissues, extensions, registrations, patent term extensions, supplementary protection certificates and renewals of any of the above. 
  
 1.13 “Products” shall mean, collectively, the Dynabeads® M-450 Epoxy T and the Dynabeads® M-450 CD3/CD28 T. 
  
 1.14 “Signing Date” shall mean December 7, 1999, the date this Agreement was signed by the parties.

  
 1.15 “Specifications” shall mean: 

 
 (i) the release criteria and specifications for the
Dynabeads® M-450 Epoxy T as set forth in
Attachment C hereto, and as the same may be refined and amended from time to time by Dynal (the “Dynabeads® M-450 Epoxy T Specifications”); and 
  
 (ii) the release criteria and specifications for the Dynabeads® M-450 CD3/CD28 T as set forth in draft form in Attachment D hereto, and as the same may be refined, amended and
finalized in the course of the development activities under this Agreement by the mutual agreement of Dynal and Xcyte (the “Dynabeads® M-450 CD3/CD28 T Specifications”). 
  
 Neither party shall unreasonably withhold its consent to an alteration or supplementation to the Dynabeads® M-450 CD3/CD28 T Specifications. 
  
 1.16 “Territory” shall mean the world. 
  
 1.17 “Therapeutic Use” shall mean the attempt to cure,
improve, mitigate, treat and/or prevent disease and/or other conditions in humans. 
  
 1.18 “Third Party” shall mean any person or entity other than a party to this Agreement or an Affiliate of a party to this Agreement. 
  
 1.19 “Work Plans” shall mean the work plans which detail the parties’ respective tasks and
responsibilities with respect to the development work to be conducted during the Development Phase in connection with the Dynabeads® M-450 CD3/CD28 T under this Agreement in connection with filing and obtaining final marketing approval from the FDA in the United States as set forth
in Attachment B, and as may be amended or modified from time to time, by mutual agreement of the parties. Subject to Section 2.5, neither party shall unreasonably withhold its consent to amendments or modifications of the Work Plans
proposed by the other party. 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
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 1.20 “Year” shall mean a calendar year. 
  
 SECTION 2: DEVELOPMENT PHASE AND REGULATORY FILINGS 
  
 2.1    During the Development Phase, Dynal shall
use its good faith and commercially reasonable efforts to complete its responsibilities under the Work Plans in accordance with the standards and time frames stated therein and the terms and conditions of this Agreement. If Xcyte does not complete
its responsibilities under the Work Plans in accordance with the standards and time frames stated therein and/or the terms and conditions of this Agreement, Dynal shall not be entitled to terminate this Agreement therefor, but Dynal shall be
afforded additional time to accomplish such activity to the extent necessary to account for any such delay caused by or as a result of actions or inactions of Xcyte or its Affiliates or agents. [*] 
  
 2.2    The parties shall, promptly after the
Signing Date, each designate a representative to act as a contact person for the other party and to coordinate and communicate between the parties with respect to each party’s respective development activities under this Agreement during the
Development Phase. A party may change its designee at any time by written notice to the other party. During the Development Phase, each party shall prepare and provide to the other party written reports on a quarterly basis detailing its development
activities and progress under the Work Plans under this Agreement, and each party shall also keep the other party generally updated on a monthly basis of its development activities and progress under this Agreement. 
  
 2.3    As part of Dynal’s activities under
the Work Plans, Dynal, at its cost, shall duly file with the FDA and the regulatory agencies in the countries included in the European Union (the “EU”), and shall own, all DMFs that are to be filed in connection with the Products.
With respect to countries in the Territory outside of the United States and the EU, Dynal shall, at Xcyte’s cost, if and as requested by Xcyte, duly file with the regulatory agencies in such countries, and shall own, all DMFs for the Products.
During the term of this Agreement and after the term of this Agreement upon non-renewal of this Agreement or termination of this Agreement pursuant to Section 8.3 by Xcyte, Xcyte shall have the right to cross-reference all DMFs filed during
the term of this Agreement by Dynal in the Territory as necessary to enable Xcyte to obtain or maintain marketing approval for use of the Products in the Field. Xcyte or its Antibody suppliers shall duly file with the FDA and the applicable
regulatory agencies in the Territory outside the United States and shall own all regulatory filings for the Antibodies. [*] 
  
 2.4    In order to fund Dynal’s work directed toward the accomplishment of the development activities under the Work Plans
as well as for activities undertaken by Dynal prior to the Signing Date, Xcyte shall make the following non-creditable and non-refundable milestone payments to Dynal as follows: 
  
 (i)    Xcyte shall pay to Dynal [*] of which was paid by Xcyte to Dynal prior to
the Signing Date pursuant to the Letter Agreement, and the remaining [*] of which shall be paid to Dynal on January 3, 2000 (“Milestone Payment 1”); 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
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 (ii) When [*] Xcyte shall pay to Dynal [*] (“Milestone Payment 2”) (Dynal
shall have no obligation to [*] prior to receiving Milestone Payment 2 from Xcyte); 
  
 (iii) On and as of April 1, 2000, Xcyte shall be obligated to pay Dynal [*] of which (“Milestone Payment 3”) shall
be paid to Dynal on April 1, 2000 and the [*] balance of which (“Milestone Payment 4”) shall be paid to Dynal on October 1, 2000; 
  
 (iv) When the [*] Xcyte shall pay to Dynal [*] (“Milestone Payment 5”) (Dynal shall have no obligation to
[*] prior to receiving Milestone Payment 5 from Xcyte); and 
  
 (v) When (a) the [*] (Xcyte shall notify Dynal when to commence the production of [*]); and (b) Dynal has [*] Xcyte shall pay to Dynal [*] (“Milestone Payment 6”) (Dynal
shall have no obligation to [*] prior to receiving Milestone Payment 6 from Xcyte). 
  
 The milestone payments set forth in this Section 2.4 shall be paid by Xcyte by wire transfer to an account designated by Dynal. 
  
 2.5 Notwithstanding anything contained in this Agreement, in no event shall Dynal be obligated to perform any
activities under this Agreement that would require efforts or expenditures in excess of the scope reasonably contemplated by the parties as of the Signing Date, as reflected from time to time in Work Plans, to complete the development of the
Dynabeads® M-450 CD3/CD28 T Product during the
Development Phase in connection with obtaining marketing approval from the FDA to use the Products in the Field for the first indication under this Agreement, and as contemplated to make the regulatory filings pursuant to Section 2.3.

  
 2.6 [*] Except as otherwise expressly set forth
in this Agreement, including Sections 2.3 and 6, Xcyte shall own all clinical protocols, all results of such clinical tests, all other clinical data required for regulatory submissions and approvals, all such regulatory filings, and any and
all regulatory approvals. 
  
 2.7 Dynal shall inform Xcyte
of any amendments to the Dynabeads® M-450 Epoxy T
Specifications. 
  
 2.8 Xcyte shall own any and all
proprietary rights relating to the functional Assays, provided that Xcyte shall develop the functional Assays (including the inter-lab validation of the functional Assays) and shall pay for all costs and expenses associated therewith. 
  
 SECTION 3: SUPPLY AND DISTRIBUTION 
  
 3.1 During the term of this Agreement, and subject to the terms and
conditions set forth herein, (a) Xcyte shall, as ordered by Dynal, supply Dynal with the Antibodies, at Xcyte’s 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
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 cost, for use by Dynal solely for use in the production of the Dynabeads® M-450 CD3/CD28 T in accordance with the specifications for the Antibodies set forth in
Attachment A and the Specifications; and (b) Dynal, subject to Xcyte’s obligation to supply Antibodies to Dynal, shall supply to Xcyte, and Xcyte shall purchase from Dynal, all of Xcyte’s and its Affiliates’ requirements (i)
for Dynabeads® M-450 CD3/CD28 T for use in clinical
trials and other product research, development, certification or regulatory activities conducted in connection with either or both of the Products in the Field in the Territory; and (ii) for Dynabeads® M-450 CD3/CD28 T for use, marketing, distribution, sale and import by Xcyte and its
Affiliates in the Field in the Territory; and (iii) to be held in reasonable inventories associated with any of the foregoing. 
  
 3.2 During the term of this Agreement, Dynal shall supply to Xcyte, and Xcyte shall purchase from Dynal, all of Xcyte’s and its
Affiliates’ requirements (a) for Dynabeads®
M-450 Epoxy T for use in clinical trials and other product research, development, certification or regulatory activities conducted in connection with either or both of the Products in connection with the Dynabeads® M-450 CD3/CD28 T in the Field in the Territory; (b) for Dynabeads® M450 Epoxy T for use, marketing, distribution, sale,
and import by Xcyte and its Affiliates in connection with the Dynabeads® M-450 CD3/CD28 T in the Field in the Territory; and (c) to be held in reasonable inventories associated with any of the foregoing. For the avoidance of doubt, to the extent that Dynal has to conduct any development
activities with respect to the Dynabeads® M-450
Epoxy T, Dynal shall ensure that it conducts such activities in a timely manner so that it will be able to supply Xcyte the Dynabeads® M-450 Epoxy T Product when it supplies Xcyte the Dynabeads® M-450 CD3/CD28 T Product, as provided under this Agreement. 
  
 3.3 Xcyte shall ensure that any Products to be sold or otherwise distributed by Xcyte or its Affiliates or any of
their distributors, licensees or agents, for use in the Field shall be appropriately labeled to state that the use thereof is limited to use solely within the Field. If either party becomes aware that Products are being used outside the Field or
outside the Territory, it shall promptly notify the other party hereto. Xcyte shall and shall ensure that its Affiliates and each of their distributors, licensees and agents shall, use its reasonable commercial efforts to preserve the quality of the
Products and shall act in accordance with any applicable quality control guidelines for the Products provided to Xcyte by Dynal. 
  
 3.4 Xcyte shall not, and shall ensure that its Affiliates and that their respective distributors, licensees and agents shall not, sell or use any
Products or perform any treatments utilizing the Products not in compliance with applicable laws, regulations and orders. If either party becomes aware that Products are being used, or that treatments are being performed using the Products, not in
compliance with applicable laws, regulations and orders, it shall promptly notify the other party hereto. 
  
 3.5 Xcyte shall, and shall ensure that its Affiliates and/or its and its Affiliates’ distributors, licensees and agents shall, only sell and
distribute the Products for use in the Field in the Territory pursuant to the terms and conditions of this Agreement, and in doing so neither Xcyte nor its Affiliates shall use or sell or otherwise distribute, and shall ensure that their respective
distributors, licensees and agents shall not use or sell or otherwise distribute, the 
  

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 Dynabeads® M-450 Epoxy T for any use except in connection with the Dynabeads® M-450 CD3/CD28 T and only in the Field. Xcyte shall remain primarily liable and responsible for the performance and
observance of all of its and its Affiliates’ and each of their consultants, distributors’ and licensees’ and agents’ duties and obligations in accordance with the terms and conditions of this Agreement. Any agreement between
Xcyte and any of its Affiliates or any of their consultants, distributors, licensees or agents shall be consistent with the terms and conditions of this Agreement and shall include appropriate obligations of confidentiality and a limitation to use
of the Products solely within the Field. 
  
 3.6 During the
term of this Agreement, Xcyte shall purchase all of its requirements for CD3x28 Beads and Nascent Beads for use in the Field; however, if Xcyte must substitute another CD3x28 Bead for the Dynabeads® M-450 CD3/CD28 T and/or another Nascent Bead for the Dynabeads® M-450 Epoxy T for medical (e.g., adverse medical
reaction arising from use of the Dynabeads® M-450
CD3/CD28 T Product and/or the Dynabeads® M-450
Epoxy T Product) or regulatory (e.g., rejection of the Dynabeads® M-450 CD3/CD28 T Product and/or the Dynabeads® M-450 Epoxy T Product by a regulatory agency) reasons for use in the Field in any country or countries of the Territory, Xcyte shall promptly notify Dynal and provide Dynal with sufficient information and documentation
to evidence the medical and/or regulatory reason or reasons that require Xcyte to substitute the Dynabeads® M-450 CD3/CD28 I Product and/or the Dynabeads® M-450 Epoxy T Product. After such notice and provision of information and documentation have been provided to Dynal by Xcyte, the parties shall discuss in good faith what would be an
acceptable substitute CD3x28 Bead and/or substitute Nascent Bead, and after the parties mutually identify, or a party identifies, in writing, an acceptable substitute, unless Dynal notifies Xcyte in writing that it does not wish (as determined by
Dynal in its sole discretion) to supply Xcyte with the substitute CD3x28 Bead and/or substitute Nascent Bead, the parties shall negotiate in good faith the terms and conditions of a development and/or supply agreement for the substitute CD3x28 Bead
and/or substitute Nascent Bead for such country or countries upon commercially reasonable terms and conditions (subject to the limitations on Dynal’s obligations set forth in Section 2.5). If the parties do not execute a full agreement
which covers such development and/or supply arrangement within one hundred and twenty (120) days of commencing such good faith negotiations, Xcyte may obtain the substitute CD3x28 Bead and/or the substitute Nascent Bead from a Third Party;
provided that Xcyte may not offer terms or conditions to any such Third Party which are more favorable in the aggregate to those offered to Dynal hereunder, unless such new terms and conditions have first been offered to Dynal and
Dynal has not accepted such terms and conditions (or terms and conditions substantially similar thereto) in writing within sixty (60) days of such offer by Xcyte. If Dynal notifies Xcyte in writing at any time during the discussions or negotiations
set forth in this Section above that it does not wish to supply Xcyte with the substitute CD3x28 Bead and/or substitute Nascent Bead as provided in this Section above, Xcyte may obtain the substitute CD3x28 Bead and/or the substitute Nascent Bead
from a Third Party. 
  
 3.7 In the event that Xcyte plans
to acquire, use, develop, sell or distribute any beads or paramagnetic particles (other than the Products, CD3x28 Beads and Nascent Beads) for use in the Field in addition to either or both of the Products, Xcyte shall promptly notify Dynal
detailing the beads or paramagnetic particles that Xcyte requires and thereafter the parties shall in good 
  
  

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 faith attempt to negotiate the terms and conditions of a development and/or supply agreement for such beads and/or paramagnetic particles
for the Territory. If the parties do not execute an agreement which covers such development and/or supply arrangement within ninety (90) days of commencing such good faith negotiations, Xcyte may obtain such beads or paramagnetic particles from a
Third Party. 
  
 3.8 Notwithstanding anything contained in
this Agreement, if Xcyte undergoes a change of control during the Development Phase, such that Xcyte is directly or indirectly controlled by any person or entity that derives at least fifty percent (50%) of its revenue from the development and/or
manufacture of beads and/or paramagnetic particles, Xcyte hereby agrees that it shall not, and hereby agrees to ensure that any such person or entity shall not, until the non-renewal of this Agreement or three (3) years after such change of control
(whichever occurs first), disclose to such person or entity any information relating to the Products, or supply any Products to such person or entity. Notwithstanding anything contained in this Agreement, both during and after the term of this
Agreement, such person or entity shall be treated as a Third Party for all purposes of this Agreement, regardless of whether such person or entity may be an “Affiliate” of Xcyte after such change of control. As used in this clause,
“change of control” means any event (whether in one or more transactions) which results in a transfer of direct or indirect ownership of more than fifty percent (50%) of the voting stock of Xcyte to a previously unaffiliated third
party. 
  
 3.9 For the avoidance of doubt and without
limiting either party’s development and supply obligations under this Agreement, in no event shall this Agreement restrict: [*] 
  
 SECTION 4: PRICE, PAYMENT AND DELIVERY 
  
 4.1 Dynal shall supply to Xcyte reasonable quantities of samples of the Dynabeads® M-450 Epoxy T and of the Dynabeads® M-450 CD3/CD28 T, in quantities and supply schedules as are more fully described in the
Work Plans for use by Xcyte and Xcyte’s consultants during the Development Phase. During the Development Phase and prior to the point at which the Products being supplied will be used in Phase I clinical trials, the Products shall be provided
by Dynal without charge to Xcyte. 
  
 4.2 Starting at the
point during the Development Phase at which the Products being supplied to Xcyte by Dynal will be used in Phase I clinical trials, the initial price of Products sold to Xcyte shall be the applicable price set forth on Attachment E hereto
(regardless of the concentration of beads in each vial, which concentration shall be determined by Xcyte, provided that no such concentration shall be in excess of 4 x 108 beads/ml in a 10 ml vial). All such prices are quoted FCA, Oslo, Norway (Incoterms 1990). Such prices shall not be increased until [*] and thereafter,
Dynal may raise such prices no more often than [*] Anything in this Section 4.2 to the contrary notwithstanding, no annual increase shall have the effect of raising the previous year’s price by [*] 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
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 4.3 Dynal shall deliver the Products ordered by Xcyte pursuant to this Agreement to Xcyte, FCA Oslo, Norway
(Incoterms 1990). Risk of loss shall pass to Xcyte on delivery of the Products to the carrier selected by Xcyte. Dynal shall include the information as described in Attachment F with each shipment of the Products. Upon delivery of the
Products to Xcyte’s carrier, Dynal shall invoice Xcyte, and Xcyte shall make payment to Dynal within thirty (30) days from the date of the invoice. Upon request by Xcyte, Dynal shall transmit invoices by facsimile or by any other means mutually
agreed to by the parties. Notwithstanding the foregoing, or anything contained in this Agreement, with respect to Dynabeads® M-450 CD3/CD28 T Product ordered by Xcyte and delivered to Xcyte hereunder that is part of a batch of the Dynabeads® M-450 CD3/CD28 T produced by Dynal for Phase I clinical trials and/or other
development work to be performed during such period of the Development Phase, Xcyte may make payment to Dynal for such Dynabeads® M-450 CD3/CD28 T Product so ordered by Xcyte within twelve (12) months (instead of thirty (30) days) from the date of the invoices for such Product.

  
 4.4 Xcyte shall pay interest to Dynal on any overdue
payments under this Agreement at a rate of [*] per month overdue from the date due until payment. 
  
 4.5 Dynal reserves the right to alter the payment procedures set forth in this Agreement in the event that Xcyte has previously (within the
then-most recent three-month period) failed to conform to the payment provisions hereof and if and for so long as Dynal is reasonably concerned about Xcyte’s financial condition. Such alterations in payment terms shall be either a requirement
of an irrevocable, confirmed letter of credit or a requirement of cash prior to delivery. 
  
 4.6 Xcyte shall not require a delivery date of earlier than ninety (90) days after the date of receipt of an order for Products by Dynal. Orders by Xcyte for Products shall be sent to Dynal at P.O. Box 158,
Skøyen N-0212, Oslo, Norway, or as otherwise may be directed by Dynal from time to time. Dynal shall use its reasonable efforts to fill orders from Xcyte which are in accordance with this Section 4 by the delivery date requested by
Xcyte. Dynal shall acknowledge each Xcyte purchase order in writing and notify Xcyte of the estimated delivery date. Dynal shall promptly notify Xcyte if at any time Dynal has reason to be concerned that Dynal will not be able to fill any Xcyte
order on time or as estimated or agreed. 
  
 4.7 Xcyte
shall, starting at the thirtieth (30th) day following the end of the Development Phase and thereafter on a quarterly
basis (by March 31st, June 30th, September 30th, and December 31st) of each Year, provide to Dynal a forecast of Xcyte’s requirements for the Products for the ensuing twelve (12) month period for the Territory. The amount of Products specified
for the first quarter of such twelve (12) month period shall be binding on Xcyte, and Dynal shall supply, and Xcyte shall be required to take delivery and pay for such amount of the Products. All amounts specified for succeeding quarters of a twelve
(12) month period are considered a non-binding but good faith forecast. 
  
  

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 4.8 In addition to the forecasts provided pursuant to Section 4.7, Xcyte shall provide to Dynal good faith
non-binding three (3) Year forecasts for the Products for capacity and long-term manufacturing planning purposes. This three (3) Year forecast shall be provided by Xcyte to Dynal on or before the thirtieth (30th) day following the end of the
Development Phase, and thereafter by August 31st of each Year, covering the succeeding three-Year period. In the event that the manufacture of the volumes of Dynabeads® M-450 CD3/CD28 T indicated by such three-Year forecast would require Dynal to make any capital expansions (including
entering into any leases), the parties may meet to discuss in good faith how to proceed and whether Xcyte would be willing to commit to such forecasts if Dynal decides to make any capital expansion and/or enter into any leases (as Dynal shall decide
in its sole discretion). Subject to the provisions of Section 4.10, in no event shall Dynal be required to meet any such forecast for the Dynabeads® M-450 CD3/CD28 T (beyond the levels stated therein that would not require Dynal to make such capital expansions) nor to obtain such capital expansions
unless the parties agree in writing how to proceed and without Xcyte agreeing to purchase sufficient volumes of the Products and to amend this Agreement to increase the minimums set forth in Section 8.5. 
  
 4.9 All sales of Products to Xcyte shall be controlled by the terms
and conditions of this Agreement and the standard terms and conditions of the business forms of the parties shall not form part of the agreement of the parties. 
  

4.10 During the term of this Agreement, Dynal shall notwithstanding Section 4.8, fill any order (or series of orders) for any calendar
quarter which are in accordance with this Article 4 and that is (or are) not in excess of one hundred twenty five percent (125%) of the volumes specified for such calendar quarter in Xcyte’s most recent good faith quarterly estimate for such
calendar quarter (i.e., that was not a binding order for such calendar quarter under Section 4.7), and Dynal shall not be required to fill any order or series of orders that are for any calendar quarter in excess of one hundred twenty five
percent (125%) of the volumes specified for such calendar in Xcyte’s most recent good faith quarterly estimate for such calendar quarter. However, Dynal shall nevertheless exert commercially reasonable efforts to fill all Xcyte orders and to
supply all requested volumes to the extent the same may be done without extra cost to Dynal, and in doing so Dynal would not be in violation of any other agreement. 
  
 4.11 Notwithstanding anything contained herein, in no event shall Dynal be liable for any delay or failure to deliver
Products for reasons beyond the control of Dynal, provided, however, that Dynal shall notify Xcyte promptly of anticipated delays and shall use all commercially reasonable efforts to fill such orders as soon as possible. 
  
 4.12 If Dynal is not able to manufacture the Products in the
quantities ordered by Xcyte in accordance with the terms and conditions of this Agreement either itself or through its Affiliates, Dynal shall undertake to engage and qualify a Third Party contract manufacturer to manufacture those quantities of the
Products that Dynal and/or its Affiliates are unable to supply to Xcyte, for supply to Xcyte subject to and in accordance with the terms and conditions of this Agreement (including the terms and conditions of this Agreement relating to
Specifications, quality control and assurance, price, ordering, delivery, indemnities and warranties) and Xcyte shall continue to pay Dynal for the Products in accordance with Section 4. The parties recognize 
  

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 that use of such a Third Party contract manufacturer would constitute a “Major Change” as such term defined in
Attachment F, and that it will be handled in accordance with and shall be governed by the requirements in that Attachment. 
  
 4.13 All payments due to Dynal under this Agreement shall be paid in full, regardless of whether Xcyte or its Affiliates or their distributors or
licensees are required to withhold taxes, levies or other duties on payments made under this Agreement. If Xcyte is required to withhold taxes, levies or other duties on payments made under this Agreement, then Xcyte shall gross up such payments so
that Dynal receives the payment in full regardless of any withholdings, and if Dynal obtains any credit for the amount of the withholding, such amount shall be repaid by Dynal to Xcyte when it is received by Dynal. 
  
 SECTION 5: WARRANTY AND DISCLAIMER 
  
 5.1 Dynal warrants that the Products shall conform to the
Specifications upon delivery to Xcyte’s carrier, provided that in no event shall Dynal be responsible or liable for any failure of the Products to meet the Specifications as a result of defects in the Antibodies (other than any defect in the
Antibodies caused solely because of a failure of Dynal or its Affiliates to act in conformity with any applicable quality control guidelines provided to Dynal by Xcyte). Xcyte shall promptly inspect the Products upon receipt and in accordance with
any applicable quality control guidelines provided to Xcyte by Dynal, and shall promptly notify Dynal of any discovered failure of the Products to conform to the Specifications, but in no event later than thirty (30) days after Xcyte’s receipt
of the Products. Upon request by Dynal, Xcyte shall promptly return the non-conforming Products to Dynal. Upon verification that the Products failed to comply with the Specifications upon delivery to Xcyte’s carrier other than because of
defects in the Antibodies (other than any defect in the Antibodies caused solely because of a failure of Dynal or its Affiliates to act in conformity with any applicable quality control guidelines provided to Dynal by Xcyte), Xcyte shall receive, at
Dynal’s sole option, a credit, refund or replacement for such non-conforming Products. In the event that Dynal decides to replace such non-conforming Products with conforming Products, Dynal shall use reasonable commercial efforts to do so
within sixty (60) days of such confirmation by Dynal, and Dynal shall in such event bear the cost of delivery and risk of loss or damage to the replacement Products during delivery. Notwithstanding anything to the contrary contained in this
Agreement, Dynal shall not be responsible for any Products if such Products are removed from their original vials prior to inspection by Xcyte or are modified in any manner not in conformity with any applicable quality control guidelines provided to
Xcyte by Dynal, nor for any use or misuse or actions or inactions by any person or entity after delivery of the Products to Xcyte’s carrier. 
  
 THE FOREGOiNG WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, AND DYNAL EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT AS SET FORTH IN SECTION 10, XCYTE’S EXCLUSIVE REMEDY FOR ANY DEFECT IN THE PRODUCTS OR BREACH OF WARRANTY SHALL AT DYNAL’S OPTION BE
CREDIT, REFUND OR REPLACEMENT AS SET FORTH IN THIS SECTION 5. 
  

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 EXCEPT AS SET FORTH IN SECTION 10, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES BASED UPON
BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, STRICT TORT OR ANY OTHER LEGAL THEORY. 
  
 SECTION 6: INTELLECTUAL PROPERTY 
  
 6.1    Except as provided in Section 6.2, ownership of any and all inventions or other proprietary rights (“Inventions”) developed in connection with activities under or performed in connection with this
Agreement, including in connection with development and acceptance testing of the Dynabeads® M-450 Epoxy T and the Dynabeads® M-450 CD3/CD28 T or during or in connection with work performed under the Work Plans, shall be determined by reference to United States laws pertaining to inventorship. For example, (a)
if Inventions is developed in connection with the development activities hereunder by one (1) or more employees or consultants of each party, it shall be jointly owned (“Joint Inventions”), and if one (1) or more claims included in an
issued Patent or pending Patent application which is filed in a patent office in the Territory claim such Joint Inventions such claims shall be jointly owned (“Joint Patent Rights”); and (b) if Inventions is developed in connection with
development activities hereunder solely by an employee or consultant of a party, it shall be solely owned by such party, and any Patent filed claiming such solely owned Inventions shall also be solely owned by such party. Each party shall ensure
that its employee and consultant inventors of Inventions developed in connection with this Agreement shall assign his/her interest in such Inventions to his/her respective party employer (e.g., Dynal or Xcyte, as the case may be), and such rights
shall therefore vest in the respective party employer to whom the inventor assigns his/her rights. The parties shall discuss and consult with each other in good faith as to the filing and prosecution of any joint patent applications covering Joint
Inventions, the maintenance of any ensuing Joint Patent Rights covering such Joint Inventions, and the enforcement, defense and protection of any such Joint Patent Rights. 
  
 6.2    Notwithstanding anything contained in this Agreement, including Section 6.1: (a) any
Inventions, including any know-how and data relating to any Dynabeads®, including the Dynabeads® M-450 and/or coupling to Dynabeads® and/or the coating of Dynabeads®, shall be owned solely by Dynal regardless of inventorship and Xcyte shall assign any and all such rights that Xcyte and/or its Affiliates or any of their agents may have in or to any such Inventions to Dynal, and such
rights shall therefore vest in Dynal; and (b) any Inventions, including any know-how and data relating to the Antibodies shall be owned solely by Xcyte regardless of inventorship and Dynal shall assign any and all such rights that Dynal and/or its
Affiliates or any of their agents may have in or to any such Inventions to Xcyte, and such rights shall therefore vest in Xcyte. 
  
 6.3    This Agreement contains no grants to either party under any intellectual property of the other party, except as expressly set
forth in this Agreement. 
  
 6.4    Xcyte
retains all right, title and interest in and to the Antibodies delivered or to be delivered to Dynal hereunder. Unless otherwise agreed by the parties, Dynal shall not at any time 
  

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 during the term of this Agreement, divert or use any of the Antibodies for any other purpose or in support of any other product or service
than the Dynabeads® M-450 CD3/CD28 T to be
developed and manufactured hereunder solely for supply to Xcyte, and Dynal shall not authorize anyone else to do so. 
  
 SECTION 7: TRADEMARK, LABELING AND PACKAGING 
  
 7.1 Xcyte shall use the registered trademark “Dynabeads®” in the package inserts, labels and packaging and, to the extent appropriate, promotion and marketing materials, used in connection with
the sale of the Products or the performance of the treatments using the Products, and each such package insert, label and packing and promotion and marketing materials that uses such trademark shall state: “Dynabeads® is a registered trademark of Dynal A.S., Oslo Norway, licensed to Xcyte”
or equivalent language approved by Dynal. Xcyte and Dynal shall cooperate reasonably in the use by Xcyte of Dynal’s trademark, so that such use will be consistent with applicable regulations, including any concerning or affecting the
designation of Xcyte as the manufacturer. Subject to the terms and conditions of this Agreement, during the term of this Agreement, Dynal hereby grants to Xcyte a non-exclusive license to use the Dynabeads® trademark to such limited extent. The registered trademark “Dynabeads®” is and shall remain the sole and exclusive
property of Dynal and all goodwill arising from the use of the Dynabeads® trademark shall enure to the benefit of Dynal. If necessary in any market to maintain Dynal’s rights in Dynal’s trademarks, Xcyte shall enter into a reasonable separate royalty-free license or registered user
agreement regulating its use of the Dynal trademarks. Approval of such material by Dynal shall not be unreasonably withheld. Approval shall be deemed given in the event that Dynal does not otherwise so notify Xcyte within twenty-one (21) days after
receipt of such material from Xcyte. During any periods in which Xcyte is so using any Dynal trademark(s), Xcyte shall periodically and upon reasonable request, provide Dynal with samples of any products and packages that bear, or that have been
associated with, copies of all product literature, promotional material, advertising, product inserts, labeling and packaging and other printed materials that use, the “Dynabeads®” trademark, in order that Dynal may monitor the quality of products associated
with such trademark(s). 
  
 7.2 The Products shall be labeled and
packaged for delivery to Xcyte as provided in Attachment F. 
  
 SECTION 8: TERM AND TERMINATION 
  
 8.1
This Agreement shall come into effect on the Effective Date and unless terminated earlier as provided herein shall continue for a period often (10) years. Either party shall have the option to extend the term of this Agreement for an additional five
(5) years after the initial ten (10) year term, by written notice to the other at any time at least one hundred and eighty (180) days prior to the end of the initial ten (10) year term. Following the end of the initial ten (10) year term (if it is
not so renewed for an additional five (5) years), or the end of such five (5) year renewal term (if the ten (10) year initial term is so renewed), this Agreement shall be automatically renewed for successive one (1) year terms unless either party
gives the other party 
  

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 written notice of termination of the term at least ninety (90) days prior to the conclusion of the then-current term, to be effective at the
end of such current term. 
  
 8.2 This Agreement may be terminated
by either party upon the happening of any of the following events: 
  
 (i) if the other party shall generally cease to pay debts as they come due; or 
  
 (ii) if the other party shall cease to do business, enter into liquidation, or become subject to any bankruptcy law or enter into any
agreement with its creditors or commit any similar act. 
  
 8.3 If
either party shall fail to perform its material obligations under this Agreement, the other party shall have the right to terminate this Agreement upon ninety (90) days written notice to the defaulting party, provided, however, that if: 

 
 (i) such default is cured within the notice period, this
Agreement shall not be terminated therefor; or 
  
 (ii) such failure is a failure by Dynal to accomplish an activity under the Work Plans or an obligation under this Agreement that is the responsibility of Dynal, within the time frame established in the applicable Work Plan or otherwise
under this Agreement for such accomplishment or obligation, Dynal shall be afforded additional time to accomplish such activity to the extent necessary to account for any factors beyond its reasonable control (such as, without limitation, as a
result of any action or inaction of the FDA) or as a result of any delay caused by or as a result of actions or inactions of Xcyte or its Affiliates or agents. 
  

8.4 Either party may terminate this Agreement upon written notice to the other party at any time prior to the first filing by Xcyte with the FDA for a
marketing approval of the treatments and/or products utilizing the Products in the Field, if the parties mutually agree in writing that the Products cannot, for scientific, regulatory or technical reasons not due to a breach hereof by the party
seeking such a termination, be developed and certified for commercial use in the Field. Neither party shall unreasonably withhold its consent to any such mutual agreement. 
  
 8.5 Dynal may terminate this Agreement upon at least one hundred and eighty (180) days advance written notice to Xcyte:

  
 (i) if Xcyte does not order from Dynal at
least [*] of Dynabeads® M-450 CD3/CD28 T
(measured by the [*] pursuant to Section 4.2) prior to end of the first twelve-month period following the [*] and Dynal gives Xcyte its notice of such termination no later than sixty (60) days following the end of such twelve
(12) month period; or 
  
 (ii) if Xcyte does not
order from Dynal at least [*] pursuant to Section 4.2) in any twelve (12) month period that begins after the end of the first twelve-month period described 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested to the omitted
portions. 

  

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 above in clause (i) of this section and Dynal gives its notice of such termination no later than sixty (60) days following the end of such
twelve (12) month period. 
  
 8.6    No
termination or non-renewal of this Agreement shall extinguish any right or obligation that has accrued prior thereto, or that is a post-termination or post-non-renewal right or obligation under the terms and conditions of this Agreement, including
those set forth in Section 11. Upon termination or non-renewal of this Agreement: 
  
 (i)    Xcyte shall cease all use of Dynal’s trademarks and other intellectual property rights and shall cooperate
with Dynal in terminating any separate license or registered user agreement or recordal thereof; except that upon non-renewal of this Agreement or termination of this Agreement pursuant to Section 8.3 by Xcyte, Xcyte may continue to use the
Dynabeads® trademark, subject to the terms and
conditions of this Agreement, until the occurrence of the earlier of: (a) receipt by Xcyte of all applicable regulatory approvals to alter labeling, packaging, and promotional materials (which regulatory approvals Xcyte shall use reasonably
commercial efforts to obtain as soon as possible after any such non-renewal or termination of this Agreement), and (b) one (1) year after such non-renewal or termination, and thereafter Xcyte shall cease all use of Dynal’s trademarks and other
intellectual property rights and shall cooperate with Dynal in terminating any separate license or registered user agreement or recordal thereof 
  
 (ii)    all sums accrued hereunder prior to such termination or non-renewal shall become immediately due and payable;
and 
  
 (iii)    Xcyte shall
continue after such termination or non-renewal to have the right to cross-reference the DMFs as provided in Section 2.3. 
  
 SECTION 9: QUALITY ASSURANCE 
  
 9.1    Certain obligations and responsibilities of Dynal and Xcyte with respect to the manufacture and quality control analysis of the
Products under the Agreement shall be set forth in the applicable quality assurance guidelines set forth in Attachment F. 
  
 9.2    Certain obligations and responsibilities of Dynal and Xcyte with respect to the manufacture and quality control analysis of the
Antibodies under the Agreement shall be set forth in the applicable quality assurance guidelines set forth in Attachment G. 
  
 SECTION 10: WARRANTIES; INDEMNIFICATION’S; INSURANCE 
  
 10.1    Each of Xcyte and Dynal represents and warrants to the other that: 
  
 (i)    it has the full right, power and
authority to enter into and perform this Agreement; 
  
 (ii) the execution and performance of this Agreement by it does not and will not violate any law or regulation, or any agreement to which it is a party or by which it is bound; 
  

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 (iii) when executed and delivered, this Agreement will constitute the legal, valid and binding obligation of such party,
enforceable against it in accordance with its terms; and 
  
 (iv)
it has obtained, and shall at all times during the term of this Agreement hold and comply with, all licenses, permits and authorizations necessary to perform this Agreement as now or hereafter required under any applicable statutes, laws,
ordinances, rules and regulations of the United States and any applicable foreign, state, and local governments and governmental entities. 
  
 10.2 Dynal hereby indemnifies and agrees to defend and to hold Xcyte, its successors and its Affiliates and each of their employees, directors, officers
and agents harmless from and against all Third Party claims, liabilities, losses and expenses (other than lost profits) (including reasonable attorneys’ fees) arising out of: 
  
 (i) the failure of the Products to meet the warranty set forth in Section 5; provided that in no event shall Dynal be
responsible or liable for any failure of the Products to meet the Specifications as a result of: (a) defects in the Antibodies (other than any defect in the Antibodies caused solely because of a failure of Dynal or its Affiliates to act in
conformity with any applicable quality control guidelines provided to Dynal by Xcyte) or (b) actions or inactions by any person or entity after delivery of the Products to Xcyte; 
  
 (ii) any Third Party claims for infringement or misappropriation of any intellectual property rights based on the method of
manufacture or composition of the Dynabeads®
included in the Product (but not for any other claims for infringement or misappropriation based on the use or sale of Dynabeads® or the Products, for which Xcyte shall indemnify and defend Dynal, its successors and its Affiliates and each of their employees, directors, officers
and agents pursuant to Section 10.3) or 
  
 (iii) any
breach or inaccuracy of any of Dynal’s representations or warranties made herein. 
  
 10.3 Xcyte hereby indemnifies and agrees to defend and to hold Dynal, its successors and its Affiliates and each of their employees, directors, officers and agents harmless from and against all Third Party claims,
liabilities, losses and expenses (other than lost profits) (including reasonable attorneys’ fees) arising out of: 
  
 (i) the development, use, promotion, marketing, manufacture, distribution, sale or import of any of the Products and performance of treatments using any
of the Products, including any actual or alleged infringement or misappropriation of any Intellectual Property of any Third Party, except for any Third Party claims expressly covered by Dynal’s indemnification of Xcyte pursuant to Section
10.2 or 
  
 (ii) any breach or inaccuracy of any of
Xcyte’s representations or warranties made herein. 
  

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 10.4 Each party shall communicate to the other notice of all claims falling within the indemnity provided by the other
pursuant to Sections 10.2 and 10.3, as soon as possible after their receipt. The indemnified party shall cooperate fully with the indemnifying party in defending or otherwise resolving such claims. The indemnifying party shall have full
control of the defense and settlement of all litigation brought against the indemnified party arising out of such claims, provided that any settlement or voluntary consent judgment shall require the consent of the indemnified party, such consent not
to be unreasonably withheld. The indemnified party, at its expense, shall be entitled to participate in such defense through its own counsel, subject to the retention of control of such defense by the indemnifying party. 
  
 10.5 Each party shall obtain and keep in force during the term of this
Agreement, and for a period of three (3) years after the non-renewal or termination of this Agreement, comprehensive general liability insurance covering bodily injury and property damage in amounts of not less than [*] per year combined
single limit; covering completed operations liability and contractual liability in amounts of not less than [*] and, [*] Each party shall provide written proof of the existence of such insurance to the other party upon request.

  
 SECTION 11: CONFIDENTIALITY AND PRESS RELEASES

  
 11.1 It is understood by both Dynal and Xcyte that misuse
or disclosure of Confidential Information of the other party could irreparably harm the business of the disclosing party or that party’s Affiliates. As used herein, “Confidential Information” shall mean, subject to the exceptions set
forth in Section 11.2, all confidential and proprietary information (including all other technology, know-how, data and records, whether written or oral or obtained through inspection of facilities or samples), which is obtained by a
receiving party (Xcyte or Dynal, as the case may be) from a disclosing party (Xcyte or Dynal, as the case may be), where either it is identified by the disclosing party as being confidential at the time of disclosure or the circumstances of
disclosure otherwise reasonably put the recipient on notice that the information or materials are treated as confidential or which receiving party should reasonably know should be treated as confidential. The parties agree: 
  
 (i) not to use such Confidential Information for any purpose other than for
the purpose of this Agreement or as may otherwise be agreed by the parties in writing; 
  
 (ii) to use the same degree of care to maintain such Confidential Information in confidence as it applies to confidential information of its own of the same type, but in no event less than a reasonable standard of
care, and not to disclose any portion of such Confidential Information to any person or entity other than as needed for the purposes of this Agreement; 
  
 (iii) to cause its Affiliates and each of its and its Affiliates’ employees, Affiliates, licensees and consultants (and the employees of any thereof)
who are to be given access to such Confidential Information to agree to be bound by the provisions of this Section 11 or by other provisions at least as protective as those set forth in this Section 11. 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
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 11.2 The provisions of this Section 11 shall not apply to: 
  
 (i) Information that can be demonstrated by the receiving party by credible
evidence to be in the public domain at the time of disclosure. 
  
 (ii) Information that, after disclosure, can be demonstrated by the receiving party by credible evidence to have subsequently become part of the public domain other than as a consequence of a breach of this Agreement by the receiving party
or its employees or agents. 
  
 (iii) Information that can be
demonstrated by the receiving party by credible evidence to have been known or otherwise available to the receiving party prior to the disclosure by the disclosing party. 
  
 (iv) Information that, after disclosure, can be demonstrated by the receiving party by credible evidence to have been
subsequently provided to the receiving party by a Third Party having the right to disclose such information and without obligations of confidentiality if the receiving party reasonably believes such disclosure does not violate any obligations of the
Third Party to the disclosing party. 
  
 (v) Information that has
been independently developed without the benefit of any reference to any disclosure hereunder from the other party. 
  
 (vi) Information that is required to be disclosed by law or regulation, provided that the party required to make such disclosure shall, to the extent
practicable under such law or regulation and the circumstances, give the other party prior notice of such requirement and afford it an opportunity to seek restrictions or limitations on such disclosure. 
  
 11.3 Upon non-renewal or termination of this Agreement. the receiving party
shall, upon the disclosing party’s written request, promptly return to the disclosing party, all copies of Confidential Information received from the disclosing party, and shall return or destroy, and document the destruction of, all summaries,
abstracts, extracts or other documents that contain any Confidential Information of the disclosing Party; except that the receiving party may retain copies of Confidential Information (including summaries, abstracts, extracts or other
documents that contain any Confidential Information) received from the disclosing party if the retention of the same is necessary for regulatory purposes or is otherwise required by law or regulation, and in any event the receiving party may retain
one (1) copy of Confidential Information received from the disclosing party for archival purposes. 
  
 11.4 The provisions of this Section 11 shall not terminate upon non-renewal or termination of this Agreement, but shall continue for a period of
seven (7) years following the termination or non-renewal of this Agreement. 
  
 11.5 Unless otherwise agreed by the parties, the parties agree to issue, within thirty (30) days from the Signing Date, a mutually agreed upon press release. Neither party to this Agreement shall otherwise issue any
press release or other publicity materials, or make any public presentation with respect to the terms or conditions of this Agreement without the prior 
  

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 written consent of the other party (such consent not to be unreasonably withheld or delayed). This restriction shall not apply to disclosures required by law or regulation, including as may be required in connection with any filings made
with the Securities and Exchange Commission or similar non-U.S. regulatory authority, or by the disclosure policies of a major stock exchange; provided, however, that if reasonably possible, the party making such disclosures shall
inform the other party prior to any such disclosures. 
  
 SECTION 12: DISPUTE RESOLUTION 
  
 12.1 The
parties intend that they shall resolve disputes and differences regarding the performance of their respective obligations under this Agreement in a spirit of cooperation and common purpose. In cases in which that does not occur (other than as to a
question relating to patent validity), any differences between the parties arising from or in connection with this Agreement shall be resolved in accordance with the procedures set forth in this Section 12. 
  
 12.2 Any dispute arising from or in connection with this Agreement during the
Development Phase shall be first presented to a senior executive of each party (with each party designating its own senior executive that shall handle such dispute) for resolution. If the designated senior executives are unable to resolve the
dispute within thirty (30) days, then either party may initiate arbitration pursuant to Section 12.3. 
  
 12.3 Subject to Section 12.2, any and all disputes or legal proceedings to enforce this Agreement (other than as to a question relating to patent
validity and except for any action to compel arbitration hereunder or an action to enforce any award or judgment rendered thereby) or in any way related to this Agreement shall be governed by this Section 12.3. Both the agreement of the
parties to arbitrate any and all claims and disputes under this Agreement as provided in this Section 12.3, and the results, determination, finding, judgment and/or award rendered through such arbitration, shall be final and binding on the
parties thereto and may be specifically enforced by legal proceedings in a court having jurisdiction over the party in question. Arbitration proceedings under this Agreement shall be conducted under the auspices of the International Arbitration
Rules of the American Arbitration Association (the “AAA”) in New York. Dynal shall appoint one (1) arbitrator, and Xcyte one (1) arbitrator, within a term of thirty (30) days from the date arbitration is required or invoked by the parties,
and the two (2) arbitrators so appointed shall appoint the third arbitrator within a term of thirty (30) days from the date on which the later of the two (2) arbitrators have been selected, all in accordance with the rules of the AAA. If either
party fails to select its arbitrator within the term mentioned above, or in the event that the two (2) selected arbitrators are unable or unwilling to select a third arbitrator within thirty (30) days, one shall be appointed in accordance with the
rules of the AAA, and the three (3) arbitrators so selected shall constitute the arbitration panel for purposes of the dispute. Unless agreed otherwise by the parties, the parties shall have thirty (30) days thereafter to submit their position to
the arbitrators, and the arbitrators shall be instructed and required to render their decision within thirty (30) days following completion of the arbitration. In any arbitration, the prevailing party shall be entitled to reimbursement of its
reasonable attorneys’ fees and the parties shall use all reasonable efforts to keep arbitration costs to a minimum. 
  

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 12.4 Notwithstanding anything in this Section 12 to the contrary, if either party shall reasonably determine the need
to seek injunctive or other expedited relief in connection with this Agreement, such party may do so in a court of competent jurisdiction. 
  
 SECTION 13: OTHER PROVISIONS 
  
 13.1 This Agreement contains the entire agreement between the parties relating to the subject matter hereof and all prior understandings, representations
and warranties between the parties (including the Letter Agreement) are superseded by this Agreement. 
  
 13.2 None of the terms of this Agreement shall be deemed to be waived or amended by either party unless such a waiver or amendment specifically references
this Agreement and is in writing signed by the party to be bound. 
  
 13.3 Notwithstanding anything contained herein, in no event shall either party be liable for any delay or failure hereunder for reasons beyond the control of such party, provided, however, that such party shall notify the
other promptly of anticipated delays and shall use all reasonable efforts to perform as soon as possible. 
  
 13.4 All notices and demands required or permitted to be given or made pursuant to this Agreement shall be deemed effective upon receipt, in English and
in writing (which term shall include telecopy) addressed to the people named below and shall be personally delivered or mailed by prepaid air mail, or sent by international courier requiring signed receipt for delivery, or sent by telecopy, provided
such telecopy is promptly confirmed by electronic return receipt, addressed as follows: 
  

	 If to Xcyte:
	  	If to Dynal:
		
	 Xcyte Therapies, Inc.
	  	Dynal A.S.
	 1124 Columbia St., Suite 130
	  	P.O. Box 158 Skøyen
	 Seattle, WA 98104
	  	N-0212 Oslo, Norway
	 Telecopy: 206-262-0900
	  	Telecopy: 011-47-22-50-7015
	 Attn: President, CEO
	  	Attn: President, CEO

  
 or to such other address or person
which either party may notify the other in writing. 
  
 13.5 This
Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors and assigns. This Agreement shall be assignable by either party (i) with the written consent of the other party, such consent not to be
unreasonably withheld; or (ii) to an Affiliate; or (iii) to any successor by merger or upon sale of all or substantially all of its assets. Any attempted assignment which does not comply with the terms of this Section 13.4 shall be void.

  
 13.6 This Agreement shall be governed by the laws of the State
of New York, and all rights and remedies shall be governed by such laws without regard to principles of conflicts of 
  

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 law. The Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 
  
 13.7 The parties do not intend to violate any public policy or statutory or
common law. However, if any sentence, paragraph, clause or combination of this Agreement is in violation of any law or is found to be otherwise unenforceable by a court from which there is no appeal, or no appeal is taken, such sentence, paragraph,
clause, or combination of the same shall be deleted and the remainder of this Agreement shall remain binding, provided that such deletion does not alter the basic structure of this Agreement. The parties shall negotiate in good faith to substitute
for any such invalid or unenforceable provision, a valid and enforceable provision that achieves to the greatest extent possible the economic, legal and commercial objectives of the invalid or unenforceable provision. In the event the basic
structure of this Agreement is altered as a result of such deletion, the parties shall renegotiate this Agreement in good faith, but should such negotiations not result in a new Agreement within ninety (90) days of the initiation of such
negotiations, then this Agreement may be terminated by either party by thirty (30) days notice to the other. 
  
 13.8 The titles to sections of this Agreement are intended for the purpose of assisting the parties when working with this Agreement, and are not intended
to have any effect on the interpretation of this Agreement. Where appropriate herein, singular terms shall be interpreted in the plural and plural terms interpreted as singular. 
  
 13.9 Dynal acknowledges that it is not an agent of Xcyte and has no authority to speak for, represent, or obligate Xcyte in
any way, without first receiving written authorization from Xcyte. Xcyte acknowledges that it is not an agent of Dynal and has no authority to speak for, represent, or obligate Dynal in any way, without first receiving written authorization from
Dynal. This Agreement does not and shall not be deemed to create any relationship of a joint venture or a partnership. 
  
 13.10 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one
and the same instrument. 
  
 * * * 
  
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives. 
  

	 XCYTE THERAPIES, INC.
	 	 	 	 DYNAL A.S.

					
	By:	 	/s/    Ronald Jay Berenson        	 	 	 	By:	 	/s/    Jeff Bork        
	 	
	 	 	 	 	

			
	Name:             Ronald Jay
Berenson                             	 	 	 	Name:             Jeff
Bork                                        
        
			
	Title: President &
CEO                                        
        	 	 	 	Title:
CEO/President                                      
              
			
	7 December 1999	 	 	 	7 December 1999

  

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 Attachment List 
  

		
	 Attachment A
	  	The Antibodies
		
	 Attachment B
	  	Work Plans
		
	 Attachment C
	  	Dynabeads® M-450 Epoxy T Specifications
		
	 Attachment D
	  	Dynabeads® M-450 CD3/CD28 T Specifications
		
	 Attachment E
	  	Per Vial Prices
		
	 Attachment F
	  	Quality Assurance — Products
		
	 Attachment G
	  	Quality Assurance — Antibodies

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 [*] 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
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 Attachment A 
 to

 Development and Supply Agreement dated as of August 1, 1999 between 
 Xcyte Therapies, Inc. and Dynal A.S. (the “Agreement”) 
  
 (Terms used herein and not otherwise defined below 
 have the meanings defined in the Agreement) 
  
 The
Antibodies 
  
 [*] 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 EXECUTION COPY 
  
 Attachment B 
  
 to 
  
 Development and Supply Agreement dated as of August 1, 1999 between 
 Xcyte Therapies,
Inc. and Dynal A.S. (the “Agreement”) 
  
 (Terms used
herein and not otherwise defined below 
 have the meanings defined in the Agreement) 
  
 Work Plans 
  
 Work Plans attached hereto. 
  

 EXECUTION COPY 
  
 [Attachment B-1 to B-4] 
  
 [illustrations/graphs] 
  
 [*] 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  

 EXECUTION COPY 
  
 Attachment C 
  
 [*] 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 EXECUTION COPY 
  
 Attachment D 
  
 [*] 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 EXECUTION COPY 
  
 Attachment E 
 to 
 Development and Supply Agreement dated as of August 1, 1999 between 
 Xcyte Therapies, Inc. and Dynal A.S. (the “Agreement”) 
 (Terms used herein and not otherwise defined below 
 have the meanings defined in the Agreement) 

 
 [*] 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 EXECUTION COPY 
  
 Attachment F 
  
 to 
  
 Development and Supply Agreement 
  
 dated as of August 1, 1999 between 
  
 Xcyte Therapies, Inc. and Dynal A.S. (the “Agreement”) 
  
 (Terms used herein and not otherwise defined below 
  
 have the meanings defined in the Agreement) 
  
 Quality Assurance — Products 
  
 [*] 
  
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 EXECUTION COPY 
  
 Attachment G 
 to 
 Development and Supply Agreement dated as of August 1, 1999 between 
 Xcyte Therapies, inc. and Dynal A.S. (the “Agreement”) 
  
 (Terms used herein and not otherwise defined below 
 have the meanings defined in the Agreement) 
  
 [*] 
  
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.Third Amended Agreement and Temporary Waiver BMC

EXECUTION COPY

 

THIRD AMENDED AGREEMENT  

AND TEMPORARY WAIVER AND DEFERRAL

THIS THIRD
AMENDED AGREEMENT AND TEMPORARY WAIVER AND DEFERRAL (this "Agreement"),
dated as of November 19, 2003, is by and among BMC Industries, Inc., a
Minnesota corporation ("Borrower"), the several banks and
other financial institutions set forth on the signature pages hereto in their
capacities as lenders under the Credit Agreement (as defined below), DEUTSCHE
BANK TRUST COMPANY AMERICAS (formerly named Bankers Trust Company), as Agent
for the Lenders (in such capacity, the "Agent") and as a
Lender, and Bank One, NA, as Documentation Agent and a Lender.

WHEREAS, Borrower, Lenders and Agent are
parties to that certain Third Amended and Restated Credit Agreement dated as of
September 27, 2002 (as amended, restated, supplemented or otherwise modified
and in effect from time to time, the "Credit Agreement"),
pursuant to which Lenders have provided to Borrower credit facilities and other
financial accommodations; 

WHEREAS, Borrower, Lenders and Agent executed
an Agreement and Temporary Waiver dated as of June 30, 2003 as amended by that
certain First Amended Agreement and Temporary Waiver dated as of July 15, 2003
and as further amended by that certain Second Amended Agreement and Temporary
Waiver dated as of September 15, 2003 (the "Original Waiver Agreement");

WHEREAS, Borrower, Lenders and Agent executed
a Temporary Deferral Agreement dated as of July 30, 2003 (the "July
Deferral Agreement");

WHEREAS, Borrower, Lenders and Agent executed
another Temporary Deferral Agreement dated as of August 28, 2003 (the "August
Deferral Agreement" and together with the July Deferral Agreement, the "Deferral
Agreements");

WHEREAS, Borrower has requested that Agent and
Lenders (i) amend the Original Waiver Agreement and temporarily waive for an
additional time period certain Unmatured Events of Default and Events of
Default that exist under the Credit Agreement as set forth herein; (ii)
continue to defer certain payments of interest coming due or already due and
unpaid under the Credit Agreement; and (iii) make certain amendments to the
Credit Agreement, in each case as set forth herein, and Lenders and Agent are
agreeable to the same, subject to the terms and conditions hereof.

NOW, THEREFORE, in consideration of the
premises and of the mutual covenants contained herein, and other good and
valuable consideration the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

       

1.              
Defined Terms. 
Terms capitalized herein and not otherwise defined herein are used with
the meanings ascribed to such terms in the Credit Agreement. 

        2.              
Amendment of Credit Agreement. The Credit
Agreement is hereby amended, effective as of the Effective Date, as follows: 

           

(a)            
Section 1.1of the Credit Agreement is hereby amended by
deleting the definition of "Asset Disposition" and replacing it with
the following new definition thereof:

        "Asset
Disposition": any sale, lease, transfer or other disposition (or
series of related sales, leases, transfers or dispositions) of shares of
Capital Stock of a Subsidiary of Borrower (other than directors' qualifying
shares), property or other assets (each referred to for the purposes of this
definition as a "disposition") by Borrower or any of its Subsidiaries
the fair market value of which, as determined in good faith by the board of
directors of Borrower or such Subsidiary, as the case may be, exceeds $250,000
(other than a disposition by a Subsidiary to Borrower or by Borrower or a
Subsidiary to a Wholly-Owned Subsidiary); provided, however, to
the extent that the fair market value of any such shares, property or other
assets exceeds $250,000, 100% of the Net Sale Proceeds (including amounts below
$250,000) of the sale of such shares, property or other assets shall be applied
to the Loans in the manner set forth in Section 4.3(c); provided,
further, (i) any sale of real estate located in Azusa, California by
Vision-Ease Lens, Inc. or any of its Subsidiaries shall be considered an Asset
Disposition with 100% of the Net Sale Proceeds thereof applied to the Loans in
the manner set forth in Section 4.3(c); and (ii) any sale or disposition
pursuant to the BMG Harvesting Plan shall be considered an Asset Disposition
with 100% of the Net Sale Proceeds applied in the manner contemplated by the
BMG Harvesting Payment Schedule.  The
foregoing notwithstanding, Borrower shall not be required to prepay any
proceeds from the September Optical Lens Equipment Sale.

           

b)           
Section 1.1 of the Credit Agreement is hereby further
amended by adding the following new definitions in appropriate alphabetical
order therein:

                        "BMG
Business" means the business conducted by the Borrower and its
Subsidiaries consisting of the Buckbee-Mears group and the related facilities.

                        "BMG
Harvesting Payment Schedule" means the payment schedule attached as Annex
B to the Third Amended Agreement.

                        "BMG
Harvesting Plan": means the liquidation of the BMG Business by the
Borrower and its Subsidiaries in the manner described in the Plan delivered to
the Agent and Lenders on October 22, 2003.

                        "Third
Amended Agreement" means that certain Third Amended Agreement and Temporary
Waiver dated as of November 19, 2003 among the Borrower, the Agent and the
Lenders.

            (c)            
Subsection 4.3(c) of the Credit Agreement is hereby
amended by adding the following new language immediately at the end thereof:

                        "Notwithstanding
anything else in this subsection 4.3(c) to the contrary, the Net Sale Proceeds
of the BMG Harvesting Plan shall be applied in the manner set forth in the BMG
Harvesting Payment Schedule with any amounts which are to be applied to the
Loans pursuant thereto to be applied as a mandatory prepayment as provided in Section
4.4."  

           

(d)           
Section 4.4 of the Credit Agreement is hereby amended
by (i) adding the language "(with a permanent reduction in the Revolving
Commitment)" immediately following the phrase "Revolving Loans"
where it first appears therein and (ii) adding the following language
immediately at the end thereof:

                        "Notwithstanding
anything else herein to the contrary, to the extent any mandatory prepayment is
required pursuant to the terms hereof at a time during which any interest on
the Loans remains due and unpaid, the amount of such mandatory prepayment shall
be applied first to such unpaid interest on a pro rata basis to all of the
Facilities and thereafter in the manner specified by this Section 4.4."

           

(e)            
A new Section 7.17 shall hereby be added to the Credit
Agreement to read as follows:

                        "7.17   BMG Harvesting Plan.  (a)     The
Borrower agrees to liquidate inventory and accounts receivable in the manner
contemplated by the BMG Harvesting Plan and agrees that the Lenders may retain
that percentage of the cash from such liquidations as set forth in the BMG
Harvesting Payment Schedule and Borrower further agrees to deliver to the Agent
and Lenders by no later than Tuesday of each week payment for the liquidations
as of such prior week along with a certificate signed by a Responsible Officer
of Borrower (x) demonstrating (i) the current BMG accounts receivable
rollforward calculation; and (ii) the current BMG inventory rollforward
calculation and (y) explaining any differences between actual BMG accounts
receivable and inventory as of such date and the BMG Harvesting Plan
projections for such date, in each case in form and substance satisfactory to
the Agent;

                        (b)       The Borrower shall, on or before December
15, 2003, deliver to Agent and Lenders, in form and substance satisfactory to
the Agent and Lenders, weekly projections of the accounts receivable, inventory
and fixed assets for the BMG Business for the month of January, 2004;

                        (c)       The outstanding inventory balance for the
BMG Business as of any date following the effectiveness of the Third Amended
Agreement until December 30, 2003 shall not exceed $9,000,000 and thereafter
shall be less than $8,500,000. "

             (f)             
A new Section 7.18 shall hereby be added to the Credit
Agreement to read as follows:

                        "7.18   Restructuring Advisor Agreements.  The Borrower hereby agrees that (i) it shall
not amend or modify in any manner any of its agreements with Realization
Services, Inc. or Chanin Capital Partners (or in each case with any Affiliate
thereof) without the prior written consent of the Agent; and (ii) it shall not
enter into any agreement with any investment bank or other similar advisor with
respect to the restructuring of the Borrower and its Subsidiaries without the
prior written consent of the Agent."

           

(g)            
Section 8.7 of the Credit Agreement is hereby deleted
in its entirety and replaced with the following new Section 8.7:

                        "8.7     Sales of Assets and Subsidiary Stock.
Convey, sell, lease or otherwise dispose of all or any part of the property or
assets of Borrower or any Subsidiary of Borrower except for (i) sales or
dispositions of assets for fair market value (as determined by the board of
directors of Borrower), provided that the net cash proceeds of such sales or
dispositions, when aggregated with all other such sales or dispositions
occurring on or after November 19, 2003 do not exceed $250,000; (ii) sales or
dispositions of assets contemplated by the BMG Harvesting Plan provided that
the Net Sale Proceeds thereof are paid directly by the purchasers thereof to
the Agent; and (iii) the sale for fair market value (as determined by the board
of directors of Borrower) of the owned real property located in Azusa,
California provided that the Net Sale Proceeds thereof are paid directly by the
purchaser to the Agent; provided, however, that the Net Sale
Proceeds of any sale or disposition permitted under clauses (i) or (iii)
above are applied in the manner required by Section 4.3(c) and any sale
or disposition permitted by clause (ii) above is applied in the manner
required by the BMG Harvesting Payment Schedule."

            (h)       On the "Effective Date" of the
Third Amended Agreement (as defined in Section 5 thereof), the Total Revolving
Commitment shall be reduced to $31,000,000 and the Revolving Commitments of
each Lender will be proportionately reduced to the amounts specified on the new
Schedule 2.1(b) attached as Annex C to the Third Amended
Agreement.

       

3.              
Temporary Waiver and Deferral.  (a) Subject to the conditions set forth in Section
5 hereof, Agent and Lenders hereby (i) temporarily waive during the
Waiver and Deferral Period (as defined below) any Event of Default or Unmatured
Event of Default under Section 9.1 of the Credit Agreement arising out
of the Borrower's failure (A) to make the Scheduled Term A Repayments and
Scheduled Term B Repayments due June 30, 2003, 
September 30, 2003 and December 31, 2003, (B) to make the payment
required by Section 3.2(d) of the Credit Agreement on July 1, 2003, (C)
to comply with Sections 8.1(a), (b) and (c) of the Credit Agreement for
the fiscal quarters of Borrower ended June 30, 2003, September 30, 2003 and
December 31, 2003, (D) to comply with Sections 7.4, 7.5, 8.4, 8.6 and 8.7
of the Credit Agreement solely with respect to Vision-Ease France SAS, Buckbee-Mears
Hungary Kft., Buckbee-Mears Deutschland Holding GmbH & Co. KG and its
wholly-owned subsidiaries, Buckbee-Mears Europe GmbH and Vision-Ease
Deutschland GmbH, (E) to comply with Section 4.3(a); and (F) the failure
to timely deliver financial and other reports and certificates for the months
ended July 31, 2003, August 31, 2003 and September 30, 2003 as required by Sections
7.1(c), 7.2(b) and 7.2(h) of the Credit Agreement (each of the matters in
clauses (A), (B) (C), (D), (E) and (F) being, the "Disclosed Defaults")
and (ii) temporarily waive during the Waiver and Deferral Period the
application of the Default Rate with respect to the Disclosed Defaults.

            (b)      Subject
to the conditions set forth in Section 5 hereof, Agent and Lenders
hereby temporarily defer during the Waiver and Deferral Period (as defined
below) the interest payments due and owing by the Borrower on each of the dates
set forth on Annex A to this Agreement (the "Temporary Interest
Deferral") provided that all such interest payments shall be
immediately due and owing in full upon the last day of the Waiver and Deferral
Period.

       

For purposes of
this Agreement, "Waiver and Deferral Period" means the period
commencing on the Effective Date and terminating on the earliest of (a) January
13, 2004; and (b) the occurrence of an Additional Default (as defined below)
under the Loan Documents.

            (c)        Nothing herein shall limit or restrict
in any way the rights and remedies of Agent or any Lender with respect to any
Unmatured Event of Default or Event of Default other than the Events of Default
which would exist absent this Agreement (collectively, the "Additional
Defaults" and, individually, each an "Additional Default").

Upon the termination of the
Waiver and Deferral Period as provided above, Agent and Lenders shall be fully
entitled to exercise any rights or remedies they may have under the Credit Agreement,
the Loan Documents or applicable law. 
Nothing herein shall limit or restrict in any way the rights and
remedies of Agent or any Lender with respect to any Unmatured Event of Default
or Event of Default other than a Disclosed Default (collectively, the "Additional
Defaults" and, individually, each an "Additional Default").

            (d)       Notwithstanding the waiver of the
Disclosed Defaults pursuant to this Agreement or anything else in this
Agreement or in the Credit Agreement to the contrary, the Borrower hereby
acknowledges and agrees that during the Waiver and Deferral Period no Revolving
Lender shall be obligated to make Revolving Loans pursuant to the terms and
conditions of the Credit Agreement.

            (e)       BORROWER EXPRESSLY ACKNOWLEDGES AND
AGREES THAT THE WAIVERS AND DEFERRALS SET FORTH IN THIS SECTION 3 ARE
EFFECTIVE ONLY DURING THE WAIVER AND DEFERRAL PERIOD AND THAT, AFTER THE
TERMINATION OF THE WAIVER AND DEFERRAL PERIOD, THE CREDIT AGREEMENT WILL BE IN
MATERIAL DEFAULT AND AGENT AND LENDERS WILL BE FULLY ENTITLED IMMEDIATELY TO
EXERCISE THEIR RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT, THE LOAN
DOCUMENTS OR APPLICABLE LAW WITHOUT REGARD TO ANY MATTERS TRANSPIRING DURING
THE WAIVER AND DEFERRAL PERIOD OR THE FINANCIAL CONDITION OR PROSPECTS OF  BORROWER AND ITS SUBSIDIARIES.  BORROWER UNDERSTANDS THAT AGENT AND LENDERS
ARE EXPRESSLY RELYING ON THE TERMS OF THIS SECTION 3(e) AND WOULD NOT
HAVE ENTERED INTO THIS AGREEMENT BUT FOR BORROWER'S ACKNOWLEDGMENT AND
AGREEMENT IN THIS SECTION 3(e).

       

4.              
Representations and Warranties.  In order to induce Agent and
Lenders to enter into this Agreement, Borrower hereby represents and warrants to
Agent and Lenders, in each case after giving effect to this Agreement, as
follows:
            (a)            
Borrower has the right, power and capacity and has been duly authorized and
empowered by all requisite corporate and shareholder action to enter into,
execute, deliver and perform this Agreement and all agreements, documents and
instruments executed and delivered pursuant to this Agreement. 

            (b)           
This Agreement constitutes Borrower's legal, valid and binding obligation,
enforceable against it, except as enforcement thereof may be subject to the
effect of any applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors' rights generally and general principles of
equity (regardless of whether such enforcement is sought in a proceeding in
equity or at law or otherwise). 

            (c)            
The representations and warranties contained in the Credit Agreement and the
other Loan Documents are true and correct in all material respects at and as of
the Effective Date as though made on and as of the Effective Date (except to the
extent specifically made with regard to a particular date, in which case such
representation and warranty is true and correct in all material respects as of
such earlier date). 

            (d)           
Borrower's execution, delivery and performance of this Agreement do not and will
not violate its Articles or Certificate of Incorporation or By-laws, any law,
rule, regulation, order, writ, judgment, decree or award applicable to it or any
contractual provision (except as otherwise expressly waived hereby) to which it
is a party or to which it or any of its property is subject.

           

(e)            
No authorization or approval or other action by, and no notice
to or filing or registration with, any governmental authority or regulatory
body (other than those which have been obtained and are in force and effect) is
required in connection with the execution, delivery and performance by Borrower
or any other Credit Party of this Agreement and all agreements, documents and
instruments executed and delivered pursuant to this Agreement.

            (f)             
Other than the Disclosed Defaults, no Event of Default or Unmatured Event of Default exists under the Credit Agreement.

        5.              
Conditions to Effectiveness of Agreement. This
Agreement shall become effective on the date (the "Effective Date")
each of the following conditions precedent is satisfied:

            (a)            
Execution and Delivery of Agreement. Borrower, Agent
and each Lender shall have executed and delivered this Agreement to the Agent.

            (b)           
Execution and Delivery of Loan Documents.  Agent shall have received each of the
following documents, all of which shall be satisfactory in form and substance
to Agent and its counsel: 

                   

(1)           
A certificate of a Responsible Officer of Borrower in the form
of Exhibit A attached hereto;    

                    (2)           
A Reaffirmation of Guaranty executed by a Responsible Officer
of each Subsidiary Guarantor in the form of Exhibit B attached
hereto.

            (c)            
Representations and Warranties.  The representations and warranties of the
Borrower and the other Credit Parties contained in this Agreement, the Credit
Agreement and the other Loan Documents shall be true and correct in all
material respects as of the Effective Date, with the same effect as though made
on such date, except to the extent that any such representation or warranty
relates to an earlier date, in which case such representation or warranty shall
be true and correct in all material respects as of such earlier date. 

            (d)           
No Defaults. Other than the Disclosed Defaults, no Unmatured
Event of Default or Event of Default under the Credit Agreement shall have
occurred and be continuing.

        6.              
Miscellaneous. The parties hereto hereby further
agree as follows:

            (a)            
Costs, Expenses and Taxes.  Borrower hereby agrees to pay all reasonable fees, costs and
expenses of Agent incurred in connection with the negotiation, preparation and
execution of this Agreement and the transactions contemplated hereby,
including, without limitation, the reasonable fees and expenses of Winston
& Strawn, counsel to Agent.

            (b)           
Counterparts. 
This Agreement may be executed in one or more counterparts any of which
may be a facsimile, each of which, when executed and delivered, shall be deemed
to be an original and all of which counterparts, taken together, shall
constitute but one and the same document with the same force and effect as if
the signatures of all of the parties were on a single counterpart, and it shall
not be necessary in making proof of this Agreement to produce more than one (1)
such counterpart.

            (c)            
Headings.  Headings
used in this Agreement are for convenience of reference only and shall not
affect the construction of this Agreement.

            (d)           
Integration. 
This Agreement and the Credit Agreement (as modified hereby) constitute
the entire agreement among the parties hereto with respect to the subject
matter hereof.

            (e)            
Governing Law. 
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK
(WITHOUT REFERENCE TO CONFLICT OF LAWS PRINCIPLES).

            (f)             
Binding Effect. 
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by Borrower, Agent and Lenders and their respective successors and
assigns.  Except as expressly set forth
to the contrary herein, this Agreement shall not be construed so as to confer
any right or benefit upon any Person other than Borrower, Agent and the Lenders
and their respective successors and permitted assigns.

            (g)            
Agreement.  The
parties hereto agree and acknowledge that nothing contained in this Agreement
in any manner or respect limits or terminates any of the provisions of the
Credit Agreement or any of the other Loan Documents other than as expressly set
forth herein and further agree and acknowledge that the Credit Agreement and
each of the other Loan Documents remain and continue in full force and effect
and are hereby ratified and confirmed. 
Except to the extent expressly set forth herein, the execution, delivery
and effectiveness of this Agreement shall not operate as a waiver of any
rights, power or remedy of Lenders or Agent under the Credit Agreement or any
other Loan Document, nor constitute a waiver of any provision of the Credit
Agreement or any other Loan Document. 
No delay on the part of any Lender or Agent in exercising any of their
respective rights, remedies, powers and privileges under the Credit Agreement
or any of the Loan Documents or partial or single exercise thereof, shall
constitute a waiver thereof.  Borrower
acknowledges and agrees that this Agreement constitutes a "Loan Document"
for purposes of the Credit Agreement, including, without limitation, Sections
9.1 and 11.1 of the Credit Agreement. 
None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner, whatsoever, except in accordance with
Section 11.1 of the Credit Agreement.

            (h)       Release of Claims.  Borrower hereby represents and warrants that
there are no liabilities, claims, suits, debts, losses, causes of action,
demands, rights, damages or costs, or expenses of any kind, character or nature
whatsoever, known or unknown, fixed or contingent (collectively, the "Claims"),
which Borrower may have or claim to have against Agent or any Lender, or any of
their respective affiliates, agents, employees, officers, directors, representatives,
attorneys, successors, or assigns (collectively, the "Lender Released
Parties"), which might arise out of or be connected with any act of
commission or omission of the Lender Released Parties existing or occurring on
or prior to the date of this Agreement, including without limitation any Claims
arising with respect to the Credit Agreement or any Loan Documents.  Borrower hereby releases, acquits, and
forever discharges the Lender Released Parties from any and all Claims that
Borrower may have or claim to have, relating to or arising out of or in
connection with the Credit Agreement or any Loan Documents or any other
agreement or transaction contemplated thereby or any action taken in connection
therewith from the beginning of time up to and including the date of the
execution and delivery of this Agreement. 
Borrower further agrees forever to refrain from commencing, instituting,
or prosecuting any lawsuit, action, or other proceeding against any Lender
Released Parties with respect to any and all Claims.

 

[Signature Page
Follows]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first written above.

                

BMC INDUSTRIES, INC.

 

By:  /s/C. E. Petersen 

Name:  C. E. Petersen  

Title:   Senior Vice President and Chief Financial Officer

                

 

 

 

                

DEUTSCHE BANK
TRUST COMPANY AMERICAS, in its individual capacity and as Agent

                

                

By:  /s/Clark G. Peterson

Name: Clark G. Peterson

Title: Vice President

                

 

                

BANK ONE, NA (Main Office Chicago)

 individually as a
Lender and as documentation agent

By: /s/Henry W.
Howe

Name: Henry W. Howe

Title:  Assistant Vice President

                

              

                

WELLS
FARGO BANK MINNESOTA, NATIONAL ASSOCIATION (f/k/a Norwest Bank Minnesota,
National Association)

By:  /s/Scott J. Manookin

Name:  Scott J. Manookin

Title:  Vice President

HARRIS
TRUST AND SAVINGS BANK

By:  /s/Lawrence A. Mizera

Name:  Lawrence A. Mizera

Title:  Vice President

                

              

                

CREDIT
AGRICOLE INDOSUEZ

By:  /s/Leo von Reissig

Name:  Leo von Reissig

Title:  Vice President

 

By:  /s/Kathleen M. Sweeney

Name:  Kathleen M. Sweeney

Title:  Vice President

WACHOVIA
BANK, N.A.

By:  /s/Melissa McDonald

Name:  Melissa McDonald

Title:  Vice President

UNION
BANK OF CALIFORNIA, N.A.

By:  /s/Jeffrey Mumm

Name:  Jeffrey Mumm

Title:  Vice President

U.S.
BANK NATIONAL ASSOCIATION

By:  /s/David Kopolow

Name:  David Kopolow

Title:  Senior Vice President

                

 

 

 

EXHIBIT A

CERTIFICATE OF OFFICER

 

        I, the undersigned, Chief Financial Officer
and Secretary of BMC Industries, Inc., a Minnesota corporation (the "Borrower"),
in accordance with Section 5(b) of that certain Third Amended Agreement
and Temporary Waiver and Deferral dated as of November 19, 2003 (the "Agreement")
among  the Borrower, Deutsche Bank Trust
Company Americas, as Agent and the financial institutions party to the Credit
Agreement (as defined in the Agreement), do hereby certify on behalf of
Borrower, the following:

1.         The representations and warranties set
forth in Section 4 of the Agreement are true and correct in all material
respects as of the date hereof except to the extent such representations and
warranties are expressly made as of a specified date in which event such
representations and warranties were true and correct in all material respects
as of such specified date;

2.         Other than the Disclosed Defaults, no
Event of Default or Unmatured Event of Default has occurred and is continuing;
and

3.         The conditions of Section 5 of
the Agreement have been fully satisfied.

Unless otherwise defined herein, capitalized
terms used herein shall have the meanings set forth in the Agreement. 

[signature page
follows]

IN WITNESS WHEREOF,
the undersigned has duly executed and delivered on behalf of Borrower this
Certificate of Officer on this 19th day of November, 2003.

	
   

  	
  BMC INDUSTRIES, INC.

   

   

  By:  /s/C. E. Petersen

  Name:
  C. E. Petersen

  Title: Senior
  Vice President and

            Chief Financial Officer

   

   

   

  
	
   

  	
   

  

 

EXHIBIT B

REAFFIRMATION OF GUARANTY

    Each of the undersigned acknowledges receipt
of a copy of the Third Amended Agreement and Temporary Waiver and Deferral (the
"Agreement"). 
Capitalized terms used herein shall, unless otherwise defined herein,
have the meanings provided in the Credit Agreement, as such term is defined in
the Agreement.  Each of the undersigned
hereby consents to such Agreement and each of the transactions referenced in
the Agreement and hereby reaffirms its obligations under the Subsidiary
Guarantee Agreement.

Dated as of November 19, 2003.

                                                                                VISION-EASE
LENS, INC.,

                                                                                as
Guarantor

 

                                                                        By:
/s/C. E. Petersen

                                                                        Name:
C. E. Petersen

                                                                        Title:
SVP, CFO

 

 

                                                                                VISION-EASE
LENS AZUSA, LLC,

                                                                                as
Guarantor

 

                                                                        By:  /s/C.
E. Petersen

                                                                        Name:
 C. E. Petersen

                                                                        Title:
SVP, CFO

 

 

ANNEX A

INTEREST PAYMENTS

BMC Industries

 

Interest Payment Date  *                      Facility*                      Interest Due*

 

	

October 16, 2003

    	

Revolver

    	

$41,145.83

    
	

 

    
	

October 31, 2003

    	

Revolver

    	

$21,258.68

    
	

 

    
	

October 31, 2003

    	

Term A

    	

$287,570.17

    
	

 

    
	

October 31, 2003

    	

Term B

    	

$216,882.84

    
	

 

    
	

November 10, 2003

    	

Revolver

    	

$49,786.46

    
	

 

    
	

November 17, 2003

    	

Revolver

    	

$43,888.89

    
	

 

    
	

November 28, 2003

    	

Revolver

    	

$19,201.39

    
	

 

    
	

November 28, 2003

    	

Term A

    	

$259,740.80

    
	

 

    
	

November 28, 2003

    	

Term B

    	

$195,894.18

    
	

 

    
	

December 10, 2003 

    	

Revolver

    	

$45,260.42

    
	

 

    
	

December 17, 2003

    	

Revolver

    	

$41,145.83

    

 

 

*Interest payments due on
Interest Payment Dates arising during the period from December 18, 2003 through
the end of the Waiver and Deferral Period shall also be deferred and this Annex
A will be deemed updated as information with respect to such payments
becomes available.

ANNEX B

BMG HARVESTING
PAYMENT SCHEDULE

 

 

For
the time period 11/15 -12/31/03, 65% of cash generated from the collection of
accounts receivable shall be retained by the Lenders and applied to the Loans
on a weekly basis in the manner set forth in Section 4.4 of the Credit
Agreement.

 

For
the period 1/01/04 - 1/15/04, the percentage of collected accounts receivable
retained by the Lenders and applied to the Loans on a weekly basis will be
revised based on the weekly projections of accounts receivable, inventory and
fixed assets as required under section 2(e)(b) of this waiver.  The
revised percentage will be agreed upon by Agent and Borrower no later than
12/19/03.

 

100% of the Net Sale Proceeds
from any sale of fixed assets or other personal property of the BMG Business
shall be applied to the Loans in the manner set forth in Section 4.4 of
the Credit Agreement.

 

ANNEX C

 

Schedule 2.1(b)

 

REVOLVING
COMMITMENTS

 

 

	
  Name
  of Lender

  	
   

  	
  Revolving
  Commitment

  
	
  Deutsche
  Bank Trust Company of Americas

  	
   

  	
   $  
  6,136,363.64

  
	
  Bank One,
  NA

  	
   

  	
   $  
  6,136,363.64

  
	
  U.S. Bank
  National Association

  	
   

  	
   $  
  5,840,909.09

  
	
  Wells
  Fargo Bank Minnesota,

  National Association

  	
   

  	
   $  
  3,727,272.73

  
	
  Harris
  Trust and Savings Bank

  	
   

  	
   $  
  2,613,636.36

  
	
  Credit
  Agricole Indosuez

  	
   

  	
   $  
  2,477,272.73

  
	
  Wachovia
  Bank, N.A.

  	
   

  	
   $  
  2,227,272.73

  
	
  Union
  Bank of California, N.A.

  	
   

  	
   $  
  1,840,909.09

  
	
    Total

  	
   

  	
   $ 31,000,000.000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]