Document:

Intellectual Property License Agreement

 Exhibit 10.26 
  
 Execution Copy 
  
 INTELLECTUAL PROPERTY LICENSE AGREEMENT 
  
 by and between 
  
 ADVANCED TISSUES SCIENCES, INC. 
  
 and 
  
 SKINMEDICA, INC.

  

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 INTELLECTUAL PROPERTY LICENSE AGREEMENT 
  
 THIS INTELLECTUAL PROPERTY LICENSE AGREEMENT (“Agreement”), is made by and
between Advanced Tissue Sciences, Inc., a Delaware corporation (“ATS”) and SkinMedica, Inc., a Delaware Corporation (“SkinMedica”). 
  
 WHEREAS, ATS and SkinMedica are parties to an Asset Purchase Agreement dated as of January 6, 2003(“APA”); 
  
 WHEREAS, under the terms of the APA, ATS has retained certain United
States and foreign patents or licenses to such patents which have been used or held for use in or relate to the Business in the Territory as those terms are defined in the APA; and 
  
 WHEREAS, under the terms of the Section 7.10 of the APA, SkinMedica is to have exclusive rights to use the Retained
Patent and Sublicensed Patent in the Territory. 
  
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein and in the APA, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I. 
  
 DEFINITIONS. 
  
 Unless otherwise defined herein, each capitalized term used in this Agreement
that is defined in the APA shall have the meaning specified for such term in the APA. 
  
 “APA” shall have the meaning attributed to that term in the first recital on page 1. 
  
 “ATS Field of Use” means those
businesses other than the Business. 
  
 “ATS Intellectual Property” means the Retained Patent and Sublicensed Patent. 
  
 “Inamed” shall have the meaning attributed to that term in Section 5.6. 
  
 “Inamed Agreement” shall have the
meaning attributed to that term in Section 5.6. 
  

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 “Indemnifying Party” shall have the meaning attributed to that
term in Section 7.2. 
  
 “Liabilities” shall have the meaning attributed to that term in Section 7.1. 
  
 “Licensed Product(s)” means any product, article, composition, component or system that: (i) embodies or is
covered in whole or in part by a claim in an issued and unexpired patent that is included in the ATS Intellectual Property; or (ii) is manufactured by using a process or is employed to practice a process which embodies or is covered, in whole or in
part, by a claim in an issued and unexpired patent that is included in the ATS Intellectual Property; or (iii) is manufactured by using, employs or otherwise embodies Trade Secrets of the Business within the Territory. 
  
 “Retained Patent” means United
States Patent No. 4,963,489 (the “489 Patent”) and all other United States patent applications and patents, all international applications, and all foreign applications and foreign patents, including all divisions, renewals, continuations,
continuations-in-part, extensions, substitutions or equivalent international intellectual property assets, owned in part or in whole by Seller, that claim priority from the 489 Patent, or that claim subject matter necessary to make, use, offer for
sale, sell or import any material, substance or composition, or any combination of the foregoing (including, without limitation, the Product) to the extent necessary to operate the Business in the Territory, other than the Method Patent. 

 
 “S&N” shall have the meaning
attributed to that term in Section 2.1. 
  
 “S&N Agreement” shall have the meaning attributed to that term in Section 2.1. 
  
 “S&N Business” means: (i) the business of developing, manufacturing, marketing and selling Dermagraft®,
TransCyte® and other products developed from the same technology for the medical care and treatment of skin tissue wounds on humans, including diabetic foot ulcers, pressure ulcers, venous ulcers, burns (partial thickness and full thickness),
cosmetic surgery for skin tissue defects or post-surgical skin tissue or post-trauma skin tissue rehabilitation (but not cosmetic surgery for the enhancement of normal skin tissue (e.g., chemical peels and laser resurfacing)) and ostomy
applications; and (ii) the business of developing, and potentially manufacturing, marketing and selling cartilage based tissue modification, repair or replacement products for use in the repair or replacement of tissue attached to and/or part of the
musculoskeletal system. 
  
 “Sublicensed Patent” means: (i) United States Patent No. 5,266,480 (the “480 Patent”); (ii) all continuation-in-part applications and the resulting patents issued therefrom to the extent directed to subject
matter specifically described in the 480 Patent; and (iii) all continuations, divisions, reissues, or extensions of any of the foregoing. 
  

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 ARTICLE II. 
  
 LICENSE. 
  
 2.1. Exclusive License For Business. Effective as of the Closing Date: (i) ATS hereby grants to SkinMedica an exclusive, worldwide,
perpetual, royalty-free license to the Retained Patent and the Sublicensed Patent within the Territory only, with the right to assign and sublicense (as set forth in Section 2.2), to make, have made, use, sell, offer for sale, import and export
Licensed Products. SkinMedica acknowledges and agrees that the foregoing license grant for the Sublicensed Patent is based solely on the rights granted to ATS under the Sublicensed Patent as described in the Business Intellectual Property License
Agreement by and between Smith & Nephew Wound Management (La Jolla), f/k/a Dermagraft Joint Venture and T.J. Smith & Nephew Limited on the one hand (collectively, “S&N”), and ATS on the other hand, dated November 22,
2002 (the “S&N Agreement”), a copy of which is attached hereto as Exhibit A. SkinMedica further acknowledges and agrees that to the extent that any term or condition of this Agreement is inconsistent with any term or condition
of the S&N Agreement as in effect on the date hereof, the S&N Agreement shall control. 
  
 2.2. Right to Assign or Sublicense. SkinMedica shall have the right to assign any license granted under Section 2.1 to one or more third parties other than to a competitor of S&N or its Affiliates in
the S&N Business. Otherwise, SkinMedica’s rights to assign any of the rights granted hereunder shall be governed by the provisions of Section 11.2. SkinMedica shall have the right to sublicense any of the rights licensed hereunder to one or
more third parties other than to a competitor of S&N or its Affiliates in the S&N Business. SkinMedica shall be responsible for all activities of its sublicensees with respect to the rights sublicensed. 
  
 2.3. Limitations and Acknowledgements. No license or right to
use, either express or implied, is granted hereunder by ATS to SkinMedica with respect to the ATS Intellectual Property except as expressly set forth in this Article 2. SkinMedica hereby acknowledges and agrees that, by and between the parties, all
right, title and interest in and to the ATS Intellectual Property shall belong to ATS, and that SkinMedica’s rights therein shall be limited to those license rights granted pursuant to this Agreement. SkinMedica further acknowledges and agrees
that it is bound by all the terms and conditions of the S&N Agreement related to the Sublicensed Patent. By entering into this Agreement, SkinMedica shall acquire no ownership interest in the ATS Intellectual Property. Except in the exercise of
its rights under Section 5.3, SkinMedica shall not take any action that jeopardizes the proprietary rights of S&N, ATS or their Affiliates in the ATS Intellectual Property. 
  

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 2.4. Patent Marking. SkinMedica shall use commercially reasonable efforts to place
appropriate patent notices on all Licensed Products. If in the judgment of SkinMedica it is impractical to so mark any such product, then SkinMedica shall use commercially reasonable efforts to so mark the packages, containers, or documentation
distributed with the Licensed Product. On request, SkinMedica shall provide to ATS representative samples of patent markings used by such party. In the event ATS reasonably believes that SkinMedica has not properly marked any Licensed Product, ATS
shall notify SkinMedica and identify those products that it believes are not properly marked, the patents covering such products, and the reasons for ATS’s belief. 
  
 2.5. Covenant To Take No Action. Subject to the terms and conditions of this Agreement, ATS agrees that it and
its Affiliates will take no action under any intellectual property rights of ATS or its Affiliates that exist as of the Closing Date to prevent SkinMedica from making, having made, using, selling, offering for sale, importing or exporting the
Licensed Products in the Territory. 
  
 ARTICLE III.

  
 MAINTENANCE AND SUPPORT OF ATS INTELLECTUAL PROPERTY.

  
 3.1. Maintenance. ATS shall have the right,
but not the obligation, at its expense, to pay all maintenance fees for the ATS Intellectual Property, maintain the existence and present status of the ATS Intellectual Property, and prosecute all pending applications for patents included within the
ATS Intellectual Property. If ATS: (i) elects not to pay any applicable maintenance fees, (ii) elects not to prosecute any applications, or (iii) otherwise fails to maintain its ownership interest in any patent or application included within the ATS
Intellectual Property, then ATS shall provide notice to SkinMedica thereof at least thirty (30) days prior to the operative date for payment, prosecution or other action. SkinMedica shall then have the option to pay the fee, or prosecute or maintain
the patent or application that is the subject of the notice. If SkinMedica wishes to exercise this option, it shall notify ATS within ten (10) days following the date of the notice from ATS, and tender with the notice any fee that may be required to
maintain the patent or prosecute the pending application (including agents or attorneys fees) or otherwise maintain the ownership interest. Thereafter, ATS shall pay such fee or take such action as may be required to prosecute or maintain the patent
right in question. ATS shall continue to maintain all right, title and interest in and to the particular patent or application that is the subject of any option exercised by ATS under this Section 3.1. 
  
 3.2. Cooperation. SkinMedica agrees to make its employees
reasonably available to assist ATS in the preparation, prosecution, maintenance, and protection of applications and patents included within the ATS Intellectual Property, and to execute any and all oaths, 
  

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 declarations, assignments, affidavits, powers of attorney and any other papers in connection therewith. Such assistance
and cooperation shall include, but not be limited to, communicating to S&N, ATS, their Affiliates or to their successors, assigns and legal representatives, any relevant facts known to the employees of SkinMedica the patent right in question,
and testifying in any legal proceedings, signing all lawful papers, executing provisional applications, divisional applications, continuation applications, continuation-in-part applications, reissues, reexaminations, PCT applications, statutory
invention registrations, and making all other lawful oaths and declarations. 
  
 ARTICLE IV. 
  
 TRADEMARK RIGHTS. 
  
 SkinMedica shall have no
right or license to use any trademark, trade name, logo or other mark of ATS other than as set forth in the APA. SkinMedica shall have no right or license to use any trademark, trade name, logo or other mark of S&N under any circumstance
whatsoever. Except as may be required in connection with any manufacturing services which may be provided by S&N, SkinMedica shall not make any representation, express or implied, that S&N, ATS or their Affiliates are the source of any
product of SkinMedica. 
  
 ARTICLE V. 
  
 ENFORCEMENT PROCEEDINGS. 
  
 5.1. Notice of Infringing Activities. In the event that a party
becomes aware of the actual or threatened infringement by a third party of any ATS Intellectual Property anywhere in the world, such party shall promptly notify the other in writing. 
  
 5.2. Infringement of ATS Intellectual Property in the ATS Field of
Use. ATS shall at all times have the right, but not the obligation, to take whatever steps it deems necessary or desirable to enforce the ATS Intellectual Property throughout the world against any unauthorized use within the ATS Field of
Use, including the filing and prosecution of patent litigation. If ATS elects to pursue a claim, it shall have sole and absolute discretion to engage legal counsel, control the litigation, retain any damages awarded, or settle the matter and retain
the proceeds of the settlement. SkinMedica may be added as a nominal party to the proceeding, as necessary. SkinMedica shall assist ATS and cooperate in any litigation that ensues with respect to such infringement when and as reasonably requested by
ATS and at ATS’s expense. Notwithstanding anything contained herein to the contrary, ATS shall not have the right to license the ATS Intellectual Property in the field of the Business in connection with settlement of an enforcement action
against a third party without the consent of SkinMedica, which consent shall not be unreasonably withheld or delayed. 
  

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 5.3. Infringement of ATS Intellectual Property in the Business Field. SkinMedica shall at
all times have the right, but not the obligation, to take whatever steps it deems necessary or desirable to enforce the ATS Intellectual Property throughout the Territory against any unauthorized use within the field of the Business, including the
filing and prosecution of patent litigation. If SkinMedica elects to pursue a claim, it shall have sole and absolute discretion to engage legal counsel, control the litigation, retain any damages awarded, or settle the matter and retain the proceeds
of the settlement. ATS shall assist SkinMedica and cooperate in any litigation that ensues with respect to such infringement when and as reasonably requested by SkinMedica and at SkinMedica’s expense, including joining SkinMedica as a party in
the litigation. Notwithstanding anything contained herein to the contrary, SkinMedica shall not have the right to license the ATS Intellectual Property for any business outside the Territory in connection with settlement of an enforcement action
against a third party without the consent of ATS, which consent shall not be unreasonably withheld or delayed. 
  
 5.4. Joint Enforcement Action. If the parties desire and agree to joint participation in any infringement suit or other enforcement action
with respect to any of the ATS Intellectual Property, the respective responsibilities of the parties, and their contributions to the costs and participation in any recoveries, will be agreed upon in writing prior to undertaking such joint
enforcement action.  
  
 5.5. Status of
Activities. Each party shall keep the other party informed of the status of its activities regarding any litigation or settlement thereof concerning the ATS Intellectual Property. 
  
 5.6. Inamed Claim to Method Patent. To the extent that the PCT
Application No. PCT/US00/13016 which is part of the Method Patent issues with claims related to the process of extracting soluble human collagen, SkinMedica agrees to grant to Inamed Corporation (“Inamed”) a royalty-free, exclusive,
worldwide license to such claims for Inamed’s licensed fields of use under the License Agreement between ATS and Inamed dated May 10, 1999, as amended prior to the date hereof, a copy of which is attached hereto as Exhibit B (the
“Inamed Agreement”). ATS represents and warrants to SkinMedica that the form of Inamed Agreement provided to SkinMedica and attached as Exhibit B is a true, correct, complete and current copy of such agreement, as amended prior to
the date hereof; provided, however, that the Inamed Agreement is expected to be modified to address patent assignment issues related to S&N and may be assigned in whole or in part to a third party, but, in no event, will the field of use
thereunder be expanded. 
  

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 ARTICLE VI. 
  
 SUBLICENSE MATTERS. 
  
 6.1. Representations and Warranties. ATS represents and warrants to SkinMedica that the form of S&N Agreement provided to SkinMedica and
attached as Exhibit A is a true, correct, complete and current copy of such agreement and that as of the date hereof ATS is not a party to any other agreements, amendments, or other written or oral understandings or commitments that would
affect or alter the terms of the S&N Agreement. As of the date hereof, the S&N Agreement has not been terminated and constitutes a legal, valid and binding agreement, enforceable in accordance with its terms; except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies. ATS has performed all of its required obligations under, and to its knowledge, is not in violation or breach of or default under, the S&N Agreement. To the knowledge of ATS, the other parties to the S&N
Agreement are not in violation or breach of, or default under, the S&N Agreement. 
  
 6.2. Covenants. 
  
 (a) ATS shall not terminate, modify or waive any term of the S&N Agreement or Inamed Agreement in a manner that would be inconsistent with, or would otherwise adversely affect, the rights of SkinMedica under this Agreement. 

 
 (b) ATS agrees that that in connection with any and all future asset
sales, licensing transactions or other divestitures, that ATS shall not enter into any agreement or take any action that would adversely affect the rights of SkinMedica under this Agreement. 
  
 (c) ATS shall use its reasonable efforts to facilitate a replacement license
agreement between S&N and SkinMedica to provide for the direct license of the Sublicensed Patent (and, if S&N should acquire the Retained Patent, the direct license of the Retained Patent) by S&N to SkinMedica on terms generally
consistent with this Agreement and the S&N Agreement. 
  
 6.3. Consent to S&N License. Notwithstanding the exclusivity requirements of the license set forth in the S&N Agreement, ATS hereby consents to S&N’s grant of a replacement license to SkinMedica with respect
to the Territory as contemplated in Section 6.2(c) above.  
  

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 ARTICLE VII. 
  
 INDEMNIFICATION. 
  
 7.1. Indemnification by SkinMedica. SkinMedica agrees to indemnify, defend, and hold ATS, and its directors, officers, employees,
representatives and agents harmless from and against any and all claims (including those for personal injury or death), losses, damages, obligations, liabilities and costs (including reasonable attorneys’ and other professional fees and other
costs of litigation) (collectively, “Liabilities”), arising out of or attributable to: (i) the design, marketing, sale or use by SkinMedica of any product embodying or covered by the ATS Intellectual Property; (ii) the gross negligence or
willful misconduct of SkinMedica in connection with this Agreement; or (iii) any material breach of any covenant or obligation of SkinMedica under this Agreement; provided, however, that such indemnification shall not apply to any
Liabilities to the extent directly attributable to the negligence, gross negligence, intentional misconduct or breach of this Agreement by ATS. 
  
 7.2. Indemnification Procedures. In the event that ATS intends to claim indemnification pursuant to Section 7.1, ATS shall promptly notify
SkinMedica subject to the indemnification obligation (“Indemnifying Party”) in writing of the alleged Liability, provided that the failure to promptly notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligation
under this Agreement except to the extent such failure to provide prompt notice adversely impairs the Indemnifying Party’s ability to defend against the claim, suit or proceeding. The Indemnifying Party shall have the sole right to control the
defense and settlement of the Liability, provided that: (i) the Indemnifying Party may not consent to imposition of any obligation or restriction on ATS in any settlement unless mutually agreed among ATS and the Indemnifying Party; (ii) the
Indemnifying Party shall keep ATS fully informed and permit ATS to participate (at ATS’ expense) as ATS may reasonably request; and (iii) the ATS may, without affecting its right to indemnity hereunder, defend and settle any such claim, suit or
proceeding if the Indemnifying Party declines to defend against such claim, suit or proceeding, or otherwise fails to take responsibility therefor. ATS shall cooperate with the Indemnifying Party and its legal representatives in the investigation of
any Liability. Except as provided otherwise in this Section 7.2, the ATS shall not, except at its own cost, voluntarily make any payment or incur any expense with respect to any claim or suit without the prior written consent of the Indemnifying
Party.  
  
 ARTICLE VIII. 
  
 DISCLAIMER OF ALL WARRANTIES. 
  
 EXCEPT AS SET FORTH IN THE APA, THE ATS INTELLECTUAL PROPERTY IS
LICENSED HEREUNDER “AS IS” AND “WITH ALL FAULTS.” EXCEPT AS SET FORTH 
  

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 IN THE APA, ALL WARRANTIES, CONDITIONS, REPRESENTATIONS, INDEMNITIES AND GUARANTEES WITH RESPECT TO THE ATS INTELLECTUAL
PROPERTY, WHETHER EXPRESS OR IMPLIED, ARISING BY LAW, CUSTOM, PRIOR ORAL OR WRITTEN STATEMENTS BY ATS, ITS AGENTS OR OTHERWISE (INCLUDING, BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE AND NON-INFRINGEMENT) ARE
HEREBY OVERRIDDEN, EXCLUDED AND DISCLAIMED. 
  
 ARTICLE IX.

  
 NO DAMAGES. 
  
 EXCEPT FOR BREACH OF ARTICLE VI, UNDER NO CIRCUMSTANCES WILL A PARTY BE
LIABLE FOR DAMAGES OF ANY KIND, WHETHER COMPENSATORY OR GENERAL, CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE OR INCIDENTAL, OR LOST PROFITS, WHETHER FORESEEABLE OR UNFORESEEABLE, BASED ON ANY USE OF THE ATS INTELLECTUAL PROPERTY, CLAIMS OF ATS’S
OR SKINMEDICA’S END-USER CUSTOMERS (INCLUDING, BUT NOT LIMITED TO, CLAIMS FOR LOSS OF GOODWILL, USE OF MONEY OR USE OF THE ATS INTELLECTUAL PROPERTY, INTERRUPTION IN USE OR AVAILABILITY OF ANY PRODUCT, STOPPAGE OF OTHER WORK OR IMPAIRMENT OF
OTHER ASSETS), ARISING OUT OF BREACH OF EXPRESS OR IMPLIED WARRANTY, BREACH OF CONTRACT, MISREPRESENTATION, NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE, REGARDLESS OF WHETHER A LIMITED REMEDY IS DEEMED TO FAIL ITS ESSENTIAL PURPOSE. THIS
ARTICLE WILL NOT APPLY ONLY WHEN AND TO THE EXTENT THAT APPLICABLE LAW SPECIFICALLY REQUIRES LIABILITY, DESPITE THE FOREGOING EXCLUSION AND LIMITATION. THE FOREGOING DISCLAIMERS AND LIMITATIONS OF LIABILITY ARE AN ESSENTIAL PART OF THIS AGREEMENT
AND FORMED THE BASIS FOR DETERMINING THE ROYALTY-FREE LICENSE AND SHALL BE ENFORCED TO THE MAXIMUM EXTENT ALLOWABLE BY LAW.[SEE ABOVE COMMENT] 
  
 ARTICLE X. 
  
 TERM. 
  
 This Agreement shall be effective and be deemed to be entered into as of the Closing Date. The term of this Agreement will be for the duration of the last to expire patent included within the ATS Intellectual Property, and may not be
terminated except as expressly provided herein. The license granted with respect to any patent included within the ATS Intellectual Property shall be for the duration of the patent in the country in which it is issued. 
  

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 ARTICLE XI. 
  
 MISCELLANEOUS PROVISIONS. 
  
 11.1. Independent Contractors. The relationship of ATS and SkinMedica established by this Agreement is that of independent contractors, and
nothing herein shall be construed to: (i) give a party the power to direct or control the day-to-day activities of another party; (ii) constitute the parties as partners, principal and agent, employer and employee, co-owners or franchiser and
franchisee; or (iii) allow a party to create or assume any obligation on behalf of another party for any purpose whatsoever. Except as otherwise set forth herein, all financial and other obligations associated with each party’s businesses are
the sole responsibility of such party. 
  
 11.2.
Assignment. Subject to Section 6.2(b), ATS may assign, delegate or otherwise transfer this Agreement or any of its rights or obligations hereunder to a third party without the prior approval of SkinMedica. Except as set forth in Section
2.2, SkinMedica may not assign, delegate or otherwise transfer this Agreement or any of their rights or obligations hereunder to a third party without S&N’s or ATS’s prior approval, which approval shall not be unreasonably withheld or
delayed, provided SkinMedica may assign this Agreement without such approval to an Affiliate, or to a purchaser of all or substantially all of the assets of the business to which this Agreement relates. 
  
 11.3. Amendment or Modification. No alteration, amendment,
waiver, cancellation or any other changes in any term or condition of this Agreement shall be valid or binding on a party unless the same shall have been mutually assented to in writing by all parties. 
  
 11.4. Waiver. The failure of a party to enforce at any time the
provisions of this Agreement, or the failure to require at any time performance by the another party of any of the provisions of this Agreement, shall in no way be construed to be a present or future waiver of such provisions, nor in any way affect
the ability of a party to enforce each and every such provision thereafter. The express waiver by a party of any provision, condition or requirement of this Agreement shall not constitute a waiver of any future obligation to comply with such
provision, condition or requirement. 
  
 11.5.
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed given if sent by prepaid registered or certified United States mail, return receipt requested (if available), overnight mail with a
nationally recognized overnight mail courier, or sent by telex, facsimile or similar communication, and confirmed by such mail, postage prepaid, addressed to the person indicated below, or at such other address or person for which such party gives
notice hereunder. Notices will be deemed given three (3) business days after deposit in the U.S. Mail, one (1) business day after deposit with an overnight mail courier, 
  

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 or when confirmation of receipt is obtained if sent by telex, facsimile or similar communication, as applicable.

  
 If to SkinMedica: 
  
 SkinMedica, Inc. 
 5909 Sea Lion Place, Suite H 
 Carlsbad, CA 92008 
 Attn: Chief Executive Officer 
 Fax: (760) 268-0981 
  
 with a copy to: 
  
 Latham & Watkins 
 12636 High Bluff Drive, Suite 300 
 San Diego, CA 92130 
 Attn: Scott N. Wolfe, Esq. 
 Fax: (858) 523-5450 
  
 If to ATS:

  
 Advanced Tissue Sciences, Inc. 
 10520 Wateridge Circle 
 San Diego, CA 92121 
 Attn: Corporate Counsel 
 Fax: (858) 452-6841 
  
 with a copy to: 
  
 Craig H. Millet, Esq. 
 Gibson, Dunn & Crutcher, LLP 
 4 Park Plaza, Suite 1800 
 Irvine, CA 92614 
 Fax: (949) 475-4651 
  
 and a copy to: 
  
 Faye H. Russell, Esq. 
 Clifford Chance US LLP 
 3811 Valley Centre Drive, Suite 200 
 San Diego, CA 92130 
 Fax: (858) 720-3501 
  

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 11.6. Severability. If any section, paragraph, provision, or clause in this Agreement shall
be found or be held to be invalid or unenforceable in any jurisdiction in which this Agreement is being performed, the remainder of this Agreement shall be valid and enforceable and the parties shall negotiate, in good faith, a substitute, valid and
enforceable provision which most nearly effects the parties’ intent in entering into this Agreement. 
  
 11.7. Governing Law. This Agreement will be construed in accordance with, and governed by, the laws of the State of California, U.S.A.,
excluding conflicts of law rules. 
  
 11.8. Entire
Agreement. The terms and conditions herein contained and the provisions of the APA related to the ATS Intellectual Property, constitute the entire agreement between the parties and supersede and terminate all previous agreements and
understandings, whether oral or written, between the parties hereto with respect to the subject matter hereof. To the extent that any term or condition of this Agreement is inconsistent with any term or condition of the APA, this Agreement shall
control. 
  
 11.9. Interpretation. Article titles
and headings to Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. Reference to the singular includes the plural and reference to the
plural includes the singular, according to the context. Reference to the neuter gender includes the masculine and feminine where appropriate. References to any statute shall include any amendments thereto, any successor statutes and all regulations,
rulings and orders promulgated thereunder, in effect at any applicable date of determination. Except as otherwise stated, reference to Articles, Sections, Exhibits, paragraphs and recitals means the Articles, Sections, Exhibits, paragraphs and
recitals of this Agreement. For purposes of this Agreement, (i) the words “including” or “includes” or similar terms used herein shall be deemed to be followed by the words “without limitation”, whether or not such
additional words are actually set forth herein, and (ii) the words “herein”, “hereof”, “hereto”, and “hereunder” refer to this Agreement as a whole. 
  
 ********** 
  
 Remainder of Page Left Blank Intentionally 
  

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 IN WITNESS WHEREOF, ATS and SkinMedica have caused this Agreement to be executed by their duly
authorized representatives identified below. 
  

							
	SKINMEDICA, INC.	 	ADVANCED TISSUE SCIENCES, INC.
				
	By:	 	 /s/ Rex Bright

	 	By:	 	 /s/ Mark Gergen

	Name:	 	Rex Bright	 	Name:	 	Mark Gergen
	Title:	 	President and CEO	 	Title:	 	CRO
	Date:	 	March 21, 2003	 	Date:	 	March 19, 2003

	

  

 13License Agreement

 Exhibit 10.27 
  

	 	***	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND 230.406. 

  
 LICENSE AGREEMENT 
  
 This License Agreement (“Agreement”), between OSMOTICS CORPORATION, a corporation organized under the laws of the State of Colorado with its principal executive offices at 1444 Wazee Street,
Denver, CO 80202 (“OSMOTICS”), and SKINMEDICA, INC., a corporation organized under the laws of the State of Delaware with its principal executive offices at 5909 Sea Lion Place, Suite H, Carlsbad, California 92008
(“SKINMEDICA”). 
  
 1.
DEFINITIONS 
  
 For purposes of this Agreement, the following
terms shall have the meanings set forth below unless the context dictates otherwise. 
  
 1.1 “Effective Date” shall be the date upon which the last Party has executed this Agreement. 
  
 1.2 “Field” means the sale of any non-prescription product to physician offices and medical spas, who may resell the non-prescription
product through appropriate channels of commerce, including, without limitation, the internet. The Field does not include sale of products to pharmacies, department stores or entities (other than physician offices and medical spas) that sell
products to consumers on the internet. 
  
 1.3 “Licensed
Know-How” shall mean, except to the extent published or otherwise known, all proprietary know-how, trade secrets, unpatented inventions, pre-clinical data, clinical data, technical data, manufacturing processes and knowledge concerning
appropriate manufacturing equipment, formulations, technology and technical information which are as of the Effective Date or thereafter during the Term owned or controlled by OSMOTICS relative to the Licensed Products in the Field. 
  
 1.4 “Licensed Patent” shall mean United States Patent No.
5,643,899 titled, “Lipids for epidermal moisturization and repair of barrier function,” issued July 1, 1997, and any extensions, reissues, divisions, continuations, continuations-in-part, provisionals, renewals, reexamined patents thereof
or other patents claiming priority from or the benefit of such patent and any foreign patent or patent applications related to the foregoing in Canada. 
  
 1.5 “Licensed Products” shall mean any non-prescription product or formulation covered by and included in the Licensed Patent.

  
 1.6 “Net Sales” means the gross amount
received by SKINMEDICA for the sale or other disposition of the Licensed Products, less the following: (a) customary quantity, trade, and/or cash discounts, allowances, chargebacks, rebates and price adjustments or reductions allowed or given as
consistently applied by SKINMEDICA; (b) actual credits, rebates, or refunds for the Licensed 

  

 Page 1 of 10 

 
Products that are rejected, returned or destroyed by customers; (c) freight, postage and shipping expenses to the extent included in the gross invoiced
amount and separately itemized on the invoice; (d) sales and other excise taxes and duties directly related to the sale, to the extent included in the gross invoiced amount and separately itemized on the invoice; and (e) all Licensed Products
delivered to a third party without charge (e.g., “free goods”) or any Licensed Products used in any new clinical or marketing-initiated trial supported by SKINMEDICA without charge to the user. 
  
 1.7 “Party” or “Parties” means,
individually, OSMOTICS or SKINMEDICA, as the context so requires, and collectively, OSMOTICS and SKINMEDICA. 
  
 1.8 “Territory” shall mean the United States and Canada. 
  
 2. GRANT OF RIGHTS 
  
 2.1 License. Subject to the terms and conditions of this Agreement, OSMOTICS hereby grants to SKINMEDICA an exclusive
(even as to OSMOTICS) license under the Licensed Patent and the Licensed Know-How for the remaining life of the patent to make, have made, use, market, sell, have sold, offer for sale, import, export, and otherwise commercialize the Licensed
Products in the Field in the Territory. 
  
 2.2 Technical
Assistance. OSMOTICS shall promptly disclose and communicate to SKINMEDICA the Licensed Know-How within ten (10) days from the Effective Date. OSMOTICS shall promptly deliver to SKINMEDICA or provide SKINMEDICA with copies of all documents,
formulations, manufacturing data, research data, drawings, specifications, programs, devices and equipment relating to, and all other tangible manifestations of, the Licensed Know-How. During the Term, OSMOTICS shall accommodate all reasonable
requests by SKINMEDICA to meet with a OSMOTICS representative at SKINMEDICA’s expense to consult with, instruct, and assist SKINMEDICA with respect to the use or implementation of the Licensed Patent or the Licensed Know-How. 

  
 2.3 Non-Assert. During the Term, OSMOTICS agrees to not
assert any patent owned or controlled by OSMOTICS against SKINMEDICA with regards to a Licensed Product. 
  
 2.4 Non-Compete. During the Term, OSMOTICS agrees not to develop, manufacture, test, market, sell, or otherwise commercialize any Licensed Product
in the Field in the Territory. OSMOTICS may continue to sell its TriCeram, Crème de la Extreme, or other similar products outside the Field in the Territory; provided, however, OSMOTICS agrees that it shall: 
  
 2.4.1 decrease the current strength of its TriCeram product from ***
Ceramides to a maximum of *** and the overall lipid concentration from *** to a maximum of *** at least thirty (30) days prior to SKINMEDICA’s first commercial sale of a Licensed Product. Thereafter, during the Term, OSMOTICS may only sell its
TriCeram product (or any similar non-prescription product) outside the Field in the Territory with strength that is not greater than *** and an overall lipid concentration of not greater than ***; and  
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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 2.4.2 decrease the current strength of its Crème de la Extreme product from *** cholesterol to a
maximum of *** and the overall lipid concentration from *** to a maximum of *** at least thirty (30) days prior to SKINMEDICA’s first commercial sale of a Licensed Product. Thereafter, during the Term, OSMOTICS may only sell its Crème de
la Extreme product (or any similar product) outside the Field in the Territory with strength that is not greater than *** cholesterol and an overall lipid concentration of not greater than ***. 
  
 3. COMMERCIALIZATION 
  
 3.1 Manufacture. SKINMEDICA shall be responsible for manufacturing
the Licensed Products. OSMOTICS and its contract manufacturer shall, at no additional expense to SKINMEDICA, provide SKINMEDICA or any third party manufacturer hired by SKINMEDICA all reasonable assistance in enabling the manufacturer to manufacture
and supply the Licensed Products. 
  
 3.2 Responsibility.
SKINMEDICA shall be solely responsible for the commercial development, marketing, promoting, and sale of the Licensed Products in the Territory. 
  
 4. PAYMENTS 
  
 4.1 Payments. In consideration of the license granted hereunder, SKINMEDICA agrees to pay OSMOTICS the following: 
  
 4.1.1 License Fee. *** upon execution of this Agreement. Payment
shall be by wire transfer. 
  
 4.1.2 Royalties. SKINMEDICA
shall pay to OSMOTICS royalties equal to *** of all Net Sales of the Licensed Products. Payment of such royalties shall be made on a quarterly basis by the 15th day of May, August, November, and February each year on Net Sales occurring during the
immediately preceding calendar quarter. For example, payment of royalties will be due by the 15th day of May on Net
Sales occurring during the first calendar quarter (January through March) of the same year. 
  
 4.1.3 Minimum Annual Royalties. Beginning with the first commercial sale of a Licensed Product, SKINMEDICA shall pay OSMOTICS a minimum annual royalty of *** forty-five (45) days after the end of the first
twelve-month period and *** forty-five (45) days after the end of each twelve-month period thereafter (“Minimum Annual Royalty”). In the event the royalties payable by SKINMEDICA to OSMOTICS based on Net Sales occurring in any
twelve-month period is more than the Minimum Annual Royalty, SKINMEDICA shall have no additional payment obligations for that twelve-month period pursuant to the Minimum Annual Royalty. In the event SKINMEDICA does not make such Minimum Annual
Royalty payment, if applicable, within *** after such payment is due, SKINMEDICA’s licenses hereunder shall become non-exclusive. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 Page 3 of 10 

 4.1.4 Reporting Obligations. With respect to all royalty payments due to OSMOTICS under this
Agreement, SKINMEDICA shall provide, with each such royalty payment, a quarterly report setting forth the calculation of royalties payable with sufficient detail to enable OSMOTICS to determine whether such calculation is in compliance with the
provisions of this Agreement. 
  
 4.1.5 Financial Audit
Rights. SKINMEDICA shall keep and maintain records of all payments and proceeds which provide evidence supporting the calculation of royalties due to OSMOTICS under this Agreement (the “Records”). The Records shall be open to
inspection by an independent certified public accountant selected by OSMOTICS and reasonably acceptable to SKINMEDICA at a mutually agreeable time during normal business hours *** after the termination of the calendar year to which such Records
relate. This audit right may be exercised only once during any calendar year. 
  
 4.1.6 Currency. All payments to be made hereunder shall be computed and made in United States Dollars. 
  
 4.1.7 Withholding Taxes. Where required to do so by applicable law, rule or order of a governmental body, SKINMEDICA shall withhold taxes required
to be paid to a taxing authority in connection with any payments to OSMOTICS hereunder, and, upon request of OSMOTICS, SKINMEDICA shall furnish OSMOTICS with satisfactory evidence of such withholding and payment. SKINMEDICA shall cooperate with
OSMOTICS in obtaining exemption from withholding taxes where available under applicable law. 
  
 5. REPRESENTATIONS AND WARRANTIES 
  
 5.1 Corporate Reps and Warranties. As of the Effective Date, each Party represents and warrants to the other that (1) it has the corporate power
and authority and the legal right to enter into this Agreement and perform its obligations hereunder; (2) it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance
of its obligations hereunder; (3) this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid and binding obligation of such Party and is enforceable against it in accordance with its terms; and (4)
this Agreement and its obligations hereunder do not conflict with, violate or breach or constitute a default or require any consent under, any contractual obligation or court or administrative order by which such Party is bound. 
  
 5.2 Intellectual Property. OSMOTICS represents and warrants that: (1)
the Licensed Patent is valid and enforceable; (2) the Licensed Products, the Licensed Patent, or the Licensed Know-How do not infringe or misappropriate any third party’s intellectual property rights; and (3) as of the Effective Date, OSMOTICS
is not aware of any pending or threatened litigation (and has not received any communication relating thereto) which alleges that the Licensed Products, the Licensed Patent, or the Licensed Know-How infringes or misappropriates any third
party’s intellectual property rights. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 Page 4 of 10 

 6. PATENT RIGHTS 
  
 6.1 Patent prosecution and maintenance. During the Term of this Agreement, OSMOTICS at its own expense shall pay all
maintenance fees assessed by the United States Patent and Trademark Office to maintain the Licensed Patent in force. 
  
 6.2 Patent enforcement. 
  
 6.2.1 If SKINMEDICA learns of the substantial infringement of any patent licensed under this Agreement, then SKINMEDICA shall call to OSMOTICS’
attention thereto in writing and provide OSMOTICS with reasonable evidence of infringement. Neither party will notify a third party of the infringement of any of the patents without first obtaining consent of the other party, which consent will not
be unreasonably denied. Both parties shall use their best efforts in cooperation with each other to terminate infringement without litigation. 
  
 6.2.2 SKINMEDICA may request that OSMOTICS take legal action against the infringement of the Licensed Patent. Such request must be in writing and must
include reasonable evidence of infringement and damages to SKINMEDICA. If the infringing activity has not abated within ninety (90) days following the effective date of the request, then OSMOTICS has the right to commence suit on its own account or
to refuse to participate in the suit. 
  
 6.2.3 In the event, that
The Regents of the University of California (“The Regents”) and/or OSMOTICS elect not to commence suit on its own account and provides notice of its election within 100 days after receiving notice, SKINMEDICA may thereafter bring
suit for patent infringement, at its own expense, if and only if The Regents and OSMOTICS elect not to commence suit and if the infringement occurred during the period and in a jurisdiction where SKINMEDICA had exclusive rights under this Agreement.

  
 6.2.4 If, however, SKINMEDICA elects to bring suit, then The
Regents and OSMOTICS may thereafter join that suit at their own expense. 
  
 6.2.5 Legal action, as is decided on, will be at the expense of the party bringing suit and all damages recovered thereby will belong to the party bringing suit, but legal action in which either OSMOTICS or The
Regents, or both, join and fully participate will be at the expense of such parties and they shall be entitled to recover any damages in proportion to the share of expenses paid by each party. 
  
 6.2.6 Each party shall cooperate with the other in litigation proceedings
instituted hereunder, but at the expense of the party bringing suit. Litigation will be controlled by the party bringing suit. 
  

 Page 5 of 10 

 7. INDEMNIFICATION 
  
 7.1 Indemnification by OSMOTICS. OSMOTICS shall indemnify, defend and hold harmless SKINMEDICA and its affiliates and
each of their respective employees, officers, directors and agents from and against any and all liability, loss, damage, cost and expense (including reasonable attorney’s fees) resulting from or in connection with the breach by OSMOTICS of any
representation or warranty or any of its obligations under this Agreement. Notwithstanding the foregoing, OSMOTICS shall have no obligation under this Agreement to indemnify, defend or hold harmless SKINMEDICA, its affiliates and their respective
employees, officers, directors and agents with respect to claims, demands, costs or judgments which result directly from the willful misconduct or the negligent acts or omissions of SKINMEDICA, its affiliates or any of their respective employees,
officers, directors or agents. 
  
 7.2 Indemnification by
SKINMEDICA SKINMEDICA shall indemnify, defend and hold harmless OSMOTICS and its affiliates and each of their respective employees, officers, directors and agents from and against any and all liability, loss, damage, cost and expense (including
reasonable attorney’s fees) resulting from or in connection with (1) the breach by SKINMEDICA of any representation or warranty or any of its obligations under this Agreement and (2) any personal injury or product liability claim arising as a
result of the manufacture, use or sale of the Licensed Products by or on behalf of SKINMEDICA or its affiliates or by any of their customers. Notwithstanding the foregoing, SKINMEDICA shall have no obligation under this Agreement to indemnify,
defend or hold harmless OSMOTICS, its affiliates and their respective employees, officers, directors and agents with respect to claims, demands, costs or judgments which result directly from the willful misconduct or the negligent acts or omissions
of OSMOTICS, its affiliates or any of their respective employees, officers, directors or agents. 
  
 8. CONFIDENTIAL INFORMATION 
  
 8.1 Non-disclosure obligation. Each of OSMOTICS and SKINMEDICA shall use only in accordance with the terms of this Agreement and shall not disclose
to any third party any information received by it from the other Party in connection with this Agreement, without the prior written consent of the other Party. Information provided under this Agreement may be disclosed to employees, agents,
consultants, or suppliers of the receiving Party, but only to the extent required to accomplish the purposes of this Agreement. These obligations shall survive the expiration or termination of this Agreement for a period of five (5) years. These
obligations shall not apply to the information that: 
  
 8.1.1 is
known by the receiving Party, as evidenced by its records, at the time of receipt and not through a prior disclosure by the disclosing Party; 
  
 8.1.2 is at the time of disclosure or thereafter becomes published or otherwise part of the public domain through no breach of this Agreement by the
receiving Party; 
  
 8.1.3 is developed by the receiving Party as
evidenced by its records independently of information received by it from the disclosing Party hereunder; 
  

 Page 6 of 10 

 8.1.4 is disclosed to any regulatory authority in order to obtain approval to market the Licensed
Products, but such disclosure may be made only to the extent necessary to obtain such approval; or 
  
 8.1.5 is required by law, regulation, rule, act or order of any governmental authority or agency to be disclosed by a Party, provided that notice is
promptly given to the other Party in order to provide an opportunity to seek a protective order or the like with respect to such information and the disclosing Party disclosed only the minimum information required to the disclosed in order to comply
with the request. 
  
 8.2 Publicity. Except as required by
law, all publicity, press releases and other announcements relating to this Agreement or the transactions contemplated hereby shall be reviewed in advance by, and shall be subject to the written approval of, both Parties. 
  
 9. TERM AND TERMINATION 
  
 9.1 Term. The term of this Agreement shall begin upon the Effective
Date, and continue until the earlier of (a) a termination by a Party in accordance with the provisions of this Article 9 or (b) the expiration of the Licensed Patent (“Term”). 
  
 9.2 Termination by mutual agreement. The Parties may, upon mutual written agreement, terminate this Agreement at any
time during the term hereof. 
  
 9.3 Termination without cause
by SKINMEDICA. SKINMEDICA may terminate this Agreement at any time by giving thirty (90) days written notice of its intention to terminate to OSMOTICS. 
  
 9.4 Termination for cause. Either Party may terminate this Agreement upon *** prior written notice provided to the other Party at any time during
the term of this Agreement upon the occurrence of one or more of the following: 
  
 9.4.1 if the other Party commits a material breach of any of its obligations under this Agreement and fails to remedy the breach within *** after receiving written notice of said breach from the other Party; however,
if the breach cannot reasonably be cured within the *** period, this Agreement may only be terminated if the Party in default fails to properly commence and thereafter uses reasonable commercial efforts to prosecute actions to cure the breach; or

  
 9.4.2 upon the filing and institution of bankruptcy,
reorganization, liquidation, or receivership proceedings, or upon an assignment of a substantial portion of the assets for the benefit of creditors by the other Party, or in the event a receiver or custodian is appointed for such Party’s
business, or if a substantial portion of such Party’s business is subject to attachment or similar process, provided, however, that in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective if the
proceeding is not dismissed within sixty (60) days after the filing thereof. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 Page 7 of 10 

 9.5 Effect of Termination. Upon termination of this Agreement by either Party, SKINMEDICA agrees
that it shall immediately transfer to OSMOTICS all rights, title, and interest in the data, information, documents, and work-product which it has relating to the Licensed Patent, the Licensed Know-How, and the Licensed Products. SKINMEDICA shall pay
OSMOTICS the amounts owed under Section 4.1 that were due and payable prior to the effective date of such termination. SKINMEDICA shall have the right to complete the manufacture of any Licensed Product in progress and sell any remaining Licensed
Product in inventory in a manner that is consistent with SKINMEDICA’s practices prior to termination, provided that SKINMEDICA shall pay royalties to OSMOTICS on all such post-termination sales. 
  
 9.6 Survival. Except as expressly provided herein, the following
provisions shall survive early termination of this Agreement: Articles 5, 6, 7, 8, 10, and 11, and Sections 9.5 and 9.6, as well as any other provisions which by their nature are intended to survive termination. 
  
 10. LIMITATION ON LIABILITY. EXCEPT FOR LIABILITY ARISING OUT OF EITHER PARTY’S
INDEMNIFICATION OBLIGATIONS HEREUNDER, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR LOST PROFITS, PUNITIVE OR OTHER INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND ARISING OUT OF, OR IN CONNECTION WITH, THIS AGREEMENT.

  
 11. MISCELLANEOUS 
  
 11.1 Entire Agreement. This Agreement contains the entire
understanding between the Parties relating to the subject matter hereof and supercedes any and all prior agreements, understandings and arrangements, whether written or oral, between the Parties. No amendments, changes, modifications or alterations
of the terms and conditions of this Agreement shall be binding upon either Party hereto unless in writing and signed by both Parties. 
  
 11.2 Unenforceability. Both Parties hereby expressly state that it is the intention of neither Party to violate any rule, law or regulation. If any
of the provisions of this Agreement are held to be void or unenforceable, then such void or unenforceable provisions shall be replaced by valid and enforceable provisions which will achieve as far as possible the economic business intentions of the
Parties. 
  
 11.3 No Waiver. The failure by either Party to
take any action or assert any right hereunder shall in no way be construed to be a waiver of such right, nor in any way be deemed to affect the validity of this Agreement or any part hereof, or the right of a Party to thereafter enforce each and
every provision of this Agreement. 
  
 11.4 Counterparts.
This Agreement may be executed in counterparts and each such counterpart shall be deemed an original hereof. 
  

 Page 8 of 10 

 11.5 Compliance with Laws. The Parties agree to prepare and file whatever filings, requests or
applications are required to be filed with any governmental authority in connection with this Agreement and to cooperate with one another as reasonably necessary to accomplish the foregoing. Each Party shall comply with all applicable United States
federal and state laws and any applicable non-United States laws, including but not limited to any and all export regulations. 
  
 11.6 Notices. Every notice, demand, consent, request, approval, report, offer, acceptance, certificate, or other communication which may be, or is
required to be, given or delivered under or with respect to this Agreement or by applicable law or statute shall be in writing and sent postage prepaid by United States registered or certified mail, return receipt requested, and directed to the
other Party at its address set forth below, or at such other address within the continental United States as any Party may hereafter designate by similar notice to the other. 
  
 For OSMOTICS: 
  
 OSMOTICS CORPORATION 
 1444 Wazee Street,
Suite 210 
 Denver, CO 80202 
 Attn: President and Chief Executive Officer 
 Telephone:   (303) 534-1800  
 Facsimile:     (303) 534-1800  
  
 For SKINMEDICA: 
  
 SKINMEDICA, INC. 
 5909 Sea Lion Place, Suite
H 
 Carlsbad, CA 92008 
 Attention: Rex Bright, Chief Executive Officer 
 Telephone:   (760) 448-3600 
 Facsimile:     (760) 448-3601 
  
 11.7 Interpretation. The Parties acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of
this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement or the exhibits attached
hereto; (c) the terms and provisions of this Agreement and the schedules, exhibits and attachments attached hereto shall be construed fairly as to all Parties hereto, regardless of which Party was generally responsible for the preparation of this
Agreement and the schedules, exhibits and attachments attached hereto; and (d) headings used in this Agreement have been inserted as a matter of convenience and are not part of this Agreement. 
  
 11.8 Assignment. Either Party may assign or sublicense its rights and
obligations under this Agreement to a third party. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns. Any person to which this Agreement and the obligations
hereunder may be assigned pursuant to this Section must agree, as a condition to such assignment, to be bound by the terms of this Agreement. 
  

 Page 9 of 10 

 11.9 Applicable Law. This Agreement shall be governed by the laws of the State of California,
excluding that body of law known as conflicts of law. The state and federal courts situated in San Diego, California, U.S.A. shall have exclusive jurisdiction and venue over any disputes or controversies relating to or arising out of this Agreement,
its performance or breach, and any other aspect of the Parties’ relationship; and the Parties expressly consent to personal jurisdiction in the State of California for any disputes relating to this Agreement. 
  
 11.10 Bankruptcy. Each of the Parties hereto acknowledges and agrees
that this Agreement (a) constitutes a license of Intellectual Property as such term is defined in the United Sates Bankruptcy Code, as amended (the “Code”), and (b) is an executory contract, with significant obligations to be
performed by each Party hereto. The Parties agree that SKINMEDICA may fully exercise all of its rights and elections under the Code, including, without limitation, those set forth in Section 365(n) of the Code. The Parties further agree that, in the
event that SKINMEDICA elects to retain its rights as a licensee under the Code, SKINMEDICA shall be entitled to complete access to the Licensed Patent and Licensed Know-How for the Field of Use in the defined Territory. 
  
 IN WITNESS WHEREOF, the Parties have caused this Agreement to
be executed by their duly authorized representatives as of the Effective Date. 
  

									
	 	 	OSMOTICS CORPORATION	 	SKINMEDICA, INC.
					
	 	 	By:	 	 /s/ Steven Porter

	 	By:	 	 /s/ Diane Goostree

	 	 	Name:	 	Steven Porter	 	Name:	 	Diane Goostree
	 	 	Title:	 	CEO	 	Title:	 	Senior Vice President
	 	 	Date:	 	June 23, 2003	 	Date:	 	June 19, 2003

  

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