Document:

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                                                                   Exhibit 10.33

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                          MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                                   AMENDED AND RESTATED

                                    LICENSE AGREEMENT

                                       (EXCLUSIVE)

                                                              Date: July 1, 1996
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                                    TABLE OF CONTENTS

PREAMBLE                                                                  PAGE

ARTICLE 1 - DEFINITIONS......................................................2

ARTICLE 2 - GRANT............................................................5

ARTICLE 3 - DUE DILIGENCE....................................................8

ARTICLE 4 - ROYALTIES.......................................................10

ARTICLE 5 - REPORTS AND RECORDS.............................................14

ARTICLE 6 - PATENT PROSECUTION..............................................15

ARTICLE 7 - INFRINGEMENT....................................................17

ARTICLE 8 - PRODUCT LIABILITY AND REPRESENTATION............................19

ARTICLE 9 - EXPORT CONTROLS.................................................22

ARTICLE 10 - NON-USE OF NAMES...............................................22

ARTICLE 11 - ASSIGNMENT.....................................................23

ARTICLE 12 - DISPUTE RESOLUTION.............................................23

ARTICLE 13 - TERMINATION....................................................24

ARTICLE 14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS.....................25

ARTICLE 15 - MISCELLANEOUS PROVISIONS.......................................26

APPENDIX A
APPENDIX B
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      This Amended and Restated License Agreement (Exclusive) is made and
entered into this 1st day of July, 1996, by and between MASSACHUSETTS INSTITUTE
OF TECHNOLOGY, a corporation duty organized and existing under the laws of the
Commonwealth of Massachusetts and having its principal office at 77
Massachusetts Avenue, Cambridge, Massachusetts 02139, U.S.A. (hereinafter
referred to as "M.I.T."), and REPROGENESIS, INC., a corporation duly organized
and existing under the laws of the State of Texas and having its principal
office at 10 Sylvan Drive, Suite 27, St. Simons Island, Georgia 31522
(hereinafter referred to as "LICENSEE"), such LICENSEE the successor in interest
to Reprogenesis, L.P.

                                   WITNESSETH

      WHEREAS, pursuant to the terms and conditions of that certain License
Agreement (the "License Agreement"), dated December 23, 1993 (the "Effective
Date"), by and between M.I.T. and Tissue Technologies, L.P., M.I.T. on its own
behalf and on behalf of Children's Hospital of Boston ("Children's Hospital')
granted exclusive licenses under certain PATENT RIGHTS (as later defined herein)
in the FIELD OF USE (as later defined herein) to Tissue Technologies, L.P.
(whose name was subsequently changed to Reprogenesis, L.P.) and the granted
rights are subject only to a royalty free, non-exclusive license heretofore
granted to the United States Government; and

      WHEREAS, subsequent to the Effective Date and prior to the date hereof,
M.I.T. and Reprogenesis, L.P. entered into seven separate amendments to the
License Agreement; and

      WHEREAS, effective July 1, 1996, Reprogenesis, L.P. was merged with and
into LICENSEE, with LICENSEE succeeding to all of the rights and obligations of
Reprogenesis, L.P., including those under the License Agreement; and

      WHEREAS, M.I.T. and LICENSEE desire to enter into this Amended and
Restated License Agreement to (1) restate the License Agreement to give effect
to the seven separate

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amendments heretofore executed; (2) evidence the consent of M.I.T. to the change
in legal status of Reprogenesis, L.P. and the succession of LICENSEE to the
rights and obligations of Reprogenesis, L.P. under the License Agreement as
permitted in Article II of the License Agreement; (3) reflect the payment of the
License Issue Fee and the issuance to M.I.T. of the Common Stock of LICENSEE in
compliance with the provisions of Article IV of the License Agreement; (4)
delete the provisions of the License Agreement providing for the obligation of
LICENSEE to raise "Investment Capital" pursuant to an agreed schedule and
providing "antidilution" rights to M.I.T. until such time as such Investment
Capital exceeded $5.0 million, M.I.T. having agreed that such schedule has been
met and Investment Capital in excess of $5.0 million has been raised; (5) amend
the provisions of the License Agreement with respect to the "pre-emptive rights"
of M.I.T. to clarify the extent of such rights, establish procedures for the
exercise thereof and provide that such rights do not extend to issuances of
securities by LICENSEE pursuant to employee benefit plans and in certain other
limited circumstances; and (6) to make certain other conforming changes, all as
agreed to by M.I.T. and LICENSEE;

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto amend and restate the License Agreement and
agree as follows:

                            ARTICLE 1 - DEFINITIONS

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

      1.1. "LICENSEE" shall include Carolina Tissue Development Partners, a
Texas general partnership, and any other related company of Reprogenesis, Inc.,
the voting stock of which is directly or indirectly at least Fifty Percent (50%)
owned or controlled by Reprogenesis, Inc., an organization which directly or
indirectly controls more than Fifty Percent (50%) of the

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voting stock of Reprogenesis, Inc., and an organization, the majority ownership
of which is directly or indirectly common to the ownership of Reprogenesis, Inc.

      1.2 "PATENT RIGHTS" shall mean all of the following intellectual property
owned or controlled by M.I.T. and/or Children's Hospital:

          (a) the United States and foreign patents and/or patent applications
              listed in Appendix A and divisionals and continuations of these
              applications;

          (b) United States and foreign patents issued from the applications
              listed in Appendix A and from divisionals and continuations of
              these applications;

          (c) claims of United States and foreign continuation-in-part
              applications, and of the resulting patents, which are directed to
              subject matter described in the United States and foreign
              applications listed in Appendix A;

          (d) claims of all foreign patent applications, and of the resulting
              patents, which are directed to subject matter described in the
              United States patents and/or patent applications described in (a),
              (b) or (c) above; and

          (e) any reissues, reexaminations or extensions of United States and
              foreign patents described in (a), (b) or (c) above.

      1.3 A "LICENSED PRODUCT" shall mean any product or part thereof which:

          (a) is covered in whole or in part by a claim that has not expired or
              been held invalid by a court of competent jurisdiction or by a
              pending claim after January 1, 1997, contained in the PATENT
              RIGHTS in the country in which any such product or part thereof is
              made, used or sold; or

          (b) is manufactured by using a process or is employed to practice a
              process which is covered in whole or in part by a claim that has
              not expired or been held invalid by a court of competent
              jurisdiction or by a pending claim after January 1, 1997,
              contained in the PATENT RIGHTS in the country in which any
              LICENSED PROCESS is used or in which such product or part thereof
              is used or sold.

      1.4 "A LICENSED PROCESS" shall mean any process which is covered in whole
or in part by a claim that has not expired or been held invalid by a court of
competent jurisdiction or by a pending claim after January 1, 1997, contained in
the PATENT RIGHTS.

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      1.5 A "LICENSED SERVICE" shall mean any fee-bearing service performed by
LICENSEE or any sublicensee which uses a LICENSED PRODUCT or practices a
LICENSED PROCESS.

      1.6 "COMBINATION PRODUCTS(S)" or "SERVICES(S)" shall mean a product or
service that includes a LICENSED PRODUCT or LICENSED SERVICE sold in combination
with other component(s) whose manufacture, use or sale by an unlicensed party
would not constitute an infringement of the PATENT RIGHTS.

      1.7 "NET SALES" shall mean LICENSEE'S (and its sublicensees') billings to
a third party for LICENSED PRODUCTS, LICENSED PROCESSES and LICENSED SERVICES
produced hereunder less the sum of the following:

          (a) discounts allowed in amounts customary in the trade;

          (b) sales, tariff duties and/or use taxes directly imposed and with
              reference to particular sales;

          (c) outbound transportation prepaid or allowed;

          (d) insurance;

          (e) amounts allowed or credited on returns; and

          (f) bad debts.

Sales between LICENSEE and any of its affiliates or any of its sublicensees, or
between any of said affiliates or sublicensees, shall not be included in such
computation. If the LICENSED PRODUCT or SERVICE is sold together with one or
more other components in order to provide a COMBINATION PRODUCT or SERVICE, the
NET SALES, as defined above, shall be multiplied by a fraction, the numerator of
which shall be the cost of the LICENSED PRODUCT or SERVICE contained in such
COMBINATION PRODUCT or SERVICE, and the denominator of which shall be the total
cost of the COMBINATION PRODUCT or SERVICE, the cost in

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

each case to be determined in accordance with LICENSEE'S regular accounting
practice, consistently applied. No deductions shall be made for commissions paid
to individuals, whether they be with independent sales agencies or regularly
employed by LICENSEE and on its payroll, or for cost of collections. LICENSED
PRODUCTS shall be considered "sold" upon the earlier of receipt of payment or
six months after billed out or invoiced.

      1.8 "FIELD OF USE" shall mean all applications in the breast and
urological fields, including repair, growth, replacement, augmentation and
regeneration of structures, organs or tissues of the breast and genito-urinary
system or the creation, restoration, augmentation, limitation or elimination of
such functions of said systems, including integrally associated tissues (native
or non native) such as muscle, cartilage, blood vessels, nerves and lymphatic
and endocrine system, and components, where the genito-urinary system includes
the kidney, ureter, bladder, urethra, prostrate, vas deferens, seminal vesicles,
testes, penis and other male and female genito-urinary tissues.

      1.9 "[**] PATENT RIGHTS" shall mean PATENT RIGHTS related to M.I.T. Case
No. [**], "[**]" by Keith Paige, Linda Cima, Charles Vacanti and Anthony Atala
as listed in Appendix A, including all divisionals, continuations and
continuation-in-part applications directed to the subject matter claimed in the
parent applications.

                               ARTICLE 2 - GRANT

      2.1 M.I.T. hereby grants to LICENSEE the exclusive worldwide right and
license under the PATENT RIGHTS to make, have made, use, lease and sell the
LICENSED PRODUCTS and LICENSED SERVICES and to practice the LICENSED PROCESSES
in the FIELD OF USE to the end of the term for which the PATENT RIGHTS are
granted.

      2.2 M.I.T. also grants to LICENSEE a first option to add to the PATENT
RIGHTS of this Agreement any patents, patent applications and inventions owned
by M.I.T and/or Children's Hospital (including those jointly owned with third
parties) which are conceived or

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

reduced to practice either solely or jointly with others by researchers
associated with the laboratories of (a) Professor Robert S. Langer at M.I.T. or
Children's Hospital, (b) Dr. Joseph P. Vacanti at Children's Hospital and/or (c)
Dr. Anthony Atala at Children's Hospital within four (4) years of the Effective
Date which are dominated by any filed or issued claims of PATENT RIGHTS. This
option shall be restricted to the FIELDS OF USE. M.I.T. shall have the duty to
notify LICENSEE within three (3) months of receipt of a written disclosure of
any such invention. This option shall expire six (6) months from the date at
which M.I.T. notifies LICENSEE of the invention. LICENSEE shall pay to M.I.T. a
License Issue Fee to be negotiated, but not to exceed [**] Dollars ($[**] for
each invention under this Paragraph 2.2 on which a patent application is filed,
excluding additional payments for continuations, divisionals and
continuations-in-part applications which shall be directed to subject matter
specifically described in the original patent application as of the Effective
Date, and all continuations, divisionals and continuation-in-part applications
based on MIT Case [**]. This option shall be subject to the rights of any
sponsor of the research leading to the invention.

      2.3 LICENSEE agrees that LICENSED PRODUCTS leased or sold in the United
States shall be, to the extent legally and practically feasible, manufactured
substantially in the United States.

      2.4 M.I.T. and Children's Hospital reserves the right to practice under
the PATENT RIGHTS for its own noncommercial research purposes.

      2.5 LICENSEE shall have the right to enter into sublicensing agreements
for the rights, privileges and licenses granted hereunder. Upon any termination
of this Agreement, sublicensees' rights shall also terminate, subject to
Paragraph 13.6 hereof

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

      2.6 LICENSEE agrees that any sublicenses granted by it shall provide that
the obligations to M.I.T. of Articles 2, 5, 7, 8, 9, 10, 12, 13, and 15 of this
Agreement shall be binding upon the sublicensee as if it were a party to this
Agreement. LICENSEE further agrees to attach copies of these Articles to
sublicense agreements.

      2.7 LICENSEE agrees to forward to M.I.T. a copy of any and all sublicense
agreements promptly upon execution by the parties.

      2.8 The license granted hereunder shall not be construed to confer any
rights upon LICENSEE by implication, estoppel or otherwise as to any technology
not described in any patent or patent application in the PATENT RIGHTS or
addable to the PATENT RIGHTS pursuant to Paragraph 2.2 hereof

      2.9 M.I.T. also grants to LICENSEE a nonexclusive worldwide right and
license to use any unpublished know-how and data owned or controlled by M.I.T.
and/or Children's Hospital as of the date of this Agreement required to practice
the rights granted in Paragraphs 2.1 and 2.2 hereof, and M.I.T. shall make such
know-how and data available to LICENSEE upon request to the extent practicable.

      2.10 Special Provisions Relating to [**] PATENT RIGHTS. Pursuant to the
provisions of Paragraph 2.1 hereof M.I.T. has granted LICENSEE rights to the
[**] PATENT RIGHTS in the FIELD OF USE defined in Paragraph 1.8 hereof With
respect to the [**] PATENT RIGHTS only, M.I.T. and LICENSEE further agree as
follows:

          (a) M.I.T. hereby grants to LICENSEE exclusive rights to the [**]
              PATENT RIGHTS only, in all other fields of use, under the terms
              and conditions of this Agreement.

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

          (b) Should M.I.T. or LICENSEE receive a written request from a capable
              third party for a license to use the [**] PATENT RIGHTS in a field
              of use other than the FIELD OF USE defined in Paragraph 1.8
              hereof, which does not compete with the LICENSED PRODUCTS or
              LICENSED SERVICES already offered for sale by LICENSEE or in the
              process of being developed so as to be available for sale within
              [**] as demonstrated by LICENSEE to the reasonable satisfaction of
              M.I.T., LICENSEE agrees to negotiate in good faith to grant a
              sublicense to said third party. If such negotiation has not been
              successfully completed within [**] from the date LICENSEE first
              receives such request, M.I.T. shall have the right to grant a
              license to said third party for said field of use under
              substantially similar, or less favorable, terms to those contained
              herein. If M.I.T. grants a license under this provision, M.I.T.
              agrees to share [**] Percent ([**]%) of its Net Royalties (defined
              as royalties and license fees after the deduction of (1) a [**]
              Percent ([**]%) administrative fee, and (2) a [**] Percent ([**]%)
              inventors payment) with LICENSEE.

                           ARTICLE 3 - DUE DILIGENCE

      3.1 LICENSEE shall use its reasonable best efforts to bring LICENSED
PRODUCTS and/or LICENSED SERVICES to market through a diligent development
program for exploitation of the PATENT RIGHTS.

      3.2 In addition:

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

          (a) LICENSEE shall use its best efforts to introduce the first
              LICENSED PRODUCT or LICENSED SERVICE to commercial sale by [**].

          (b) LICENSEE shall use its best efforts to introduce to market
              additional LICENSED PRODUCTS or LICENSED SERVICES within [**] of
              demonstration of the scientific and technical feasibility of that
              particular LICENSED PRODUCT or LICENSED SERVICE, the demonstration
              of its clinical effectiveness, and the receipt of required
              approvals (if any are required) of regulatory authorities, or,
              within [**] of the demonstration of scientific, technical and
              clinical feasibility to complete a sublicense agreement for the
              marketing of the LICENSED PRODUCT or LICENSED SERVICE with a
              competent third party that shall commit the third party to use its
              best efforts to bring the LICENSED PRODUCT or LICENSED SERVICE to
              market within [**] of the sublicense agreement.

      3.3 LICENSEE acknowledges that the primary objective of M.I.T. and
Children's Hospital with respect to the technology of this License Agreement is
to promote development and marketing of LICENSED PRODUCTS and LICENSED SERVICES
for the public good. Toward this end, M.I.T. shall have the right to terminate
this Agreement pursuant to Paragraph 13.3 hereof if LICENSEE fails to perform in
accordance with Paragraph s 3.1 or 3.2(a) above or if LICENSEE suspends its
diligence in performance of any of the development obligations of this Agreement
for more than three (3) months because of business circumstances such as lack of
funds, merger, acquisition, or the like. Failure to perform in accordance with
Paragraph 3.3 (b) here of shall only give M.I.T. the right to take back rights
granted hereunder as to the particular LICENSED PRODUCT or LICENSED SERVICE, and
products or services which are directly

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competitive to, or replacements of that LICENSED PRODUCT or LICENSED SERVICE,
not introduced or sublicensed, or at M.I.T.'s discretion the fight to bring a
willing sublicense prospect to LICENSEE. However, if LICENSEE can demonstrate to
the satisfaction of M.I.T., at M.I.T.'s sole discretion, that circumstances
beyond LICENSEE's control precluded LICENSEE from fulfilling its diligence
obligations, and that it is unlikely that any third party could overcome these
circumstances better than LICENSEE, then M.I.T. shall not exercise its
termination rights under this Paragraph for one year from the date at which
M.I.T. gives notice of termination and if LICENSEE reestablishes diligence
towards its objectives during this one year period, any prior lack of diligence
will be deemed cured.

                             ARTICLE 4 - ROYALTIES

      4.1 For the rights, privileges and license granted hereunder, LICENSEE has
paid to M.I.T. a License Issue Fee of One Hundred Thousand Dollars ($100,000)
and issued to M.I.T. 519,883 shares of its Common Stock par value $0.01 per
share, and shall pay additional royalties to M.I.T. in the manner hereinafter
provided to of the PATENT RIGHTS or until this Agreement shall be terminated:

          (a) Licensee Maintenance Fees of Fifty Thousand Dollars ($50,000) per
              year payable on June 1, 1996 and on June 1 of each year
              thereafter; provided, however, that Running Royalties subsequently
              due on NET SALES for said year, if any, shall be creditable
              against the Licensee Maintenance Fee for said year. License
              Maintenance Fees paid in excess of Running Royalties shall not be
              creditable to Running Royalties for future years.

          (b) Running Royalties in an amount equal to Three Percent (3%) of
              NET SALES of the LICENSED PRODUCTS and LICENSED SERVICES leased or
              sold by and/or for LICENSEE.

          (c) Royalties representing a share of sublicensing revenue received by
              LICENSEE for LICENSED PRODUCTS or LICENSED SERVICES sold by the
              sublicensee equal to:

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              (i)     Fifty Percent (50%) if only the PATENT RIGHTS are
                      sublicensed; or

              (ii)    Twenty-five Percent (25%) if the sublicense revenue
                      includes revenue received for the PATENT RIGHTS
                      sublicensed in conjunction with products developed by
                      LICENSEE and/or substantial technology developed by
                      LICENSEE;

                      but in no event shall royalties be less than one and one-
                      half percent (1 1/2%) of the NET SALES of the LICENSED
                      PRODUCTS or LICENSED SERVICES sold by sublicensee;

                      provided further that an assignment pursuant to paragraph
                      11 of a this Agreement shall not obligate LICENSEE to make
                      payments to M.I.T. under this paragraph 4.1(c).

          (d) (i)     Except as set forth in Paragraph 4.1(d)(iii) hereof,
                      M.I.T. shall be entitled to preemptive rights regarding
                      (A) the issuance or sale by LICENSEE of any shares of any
                      class of its capital stock; (B) the issuance of any
                      obligations, evidences of indebtedness or other securities
                      of LICENSEE convertible into or exchangeable for, or
                      carrying or accompanied by any rights to receive, purchase
                      or subscribe to, any shares of any class of its capital
                      stock; or (C) the issuance of any right of subscription to
                      or right to receive, or any warrant or option for the
                      purchase of, any of the foregoing Securities (the
                      Securities set forth in (A), (B) and (C) herein referred
                      to as the "Securities").

              (ii)    Prior to any issuance described in Paragraph 4.1(d)(i)
                      hereof, LICENSEE shall give M.I.T. at least 30 days'
                      notice, and M.I.T. shall have the right by notifying
                      LICENSEE within 15 days after receipt of the notice
                      regarding the proposed issuance, sale or grant, to
                      purchase, on the same terms as those of the proposal, a
                      proportion of such Securities equal to M.I.T.'s
                      percentage ownership of Common Stock of LICENSEE on a
                      record date not more than 30 days prior to such issuance,
                      sale or grant. The price or prices for such Securities
                      shall not be less favorable to M.I.T. than the price or
                      prices at which such dealers are proposed to be offered
                      for sale or granted to others, without deduction of the
                      expenses of, and compensation for, the sale, underwriting
                      or purchase of such Securities by underwriters or dealers
                      as may be paid by LICENSEE.

              (iii)   Notwithstanding anything contained herein to the contrary,
                      the provisions of Paragraphs 4.1(d)(i) and (ii) hereof
                      shall not apply to the issuance, sale or grant by LICENSEE
                      of any Securities (A) to a bank or other financial
                      institution in connection with the incurrence of bona fide
                      indebtedness by LICENSEE or (B) as compensation to
                      persons, including employees, officers, directors, agents
                      and consultants of LICENSEE, pursuant to employment or
                      consulting contracts approved by the Board of Directors of
                      LICENSEE or specific resolutions or benefit plans adopted
                      by the Board of Directors of LICENSEE.

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

              (iv)    M.I.T. may transfer Fifty Percent (50%) of its premptive
                      right to purchase Securities as provided herein to
                      Children's Hospital.

          (e) For the additional rights relating to [**] PATENT RIGHTS granted
              pursuant to Paragraph 2.10 hereof, LICENSEE has paid to M.I.T. a
              License Fee of Thirty Thousand Dollars ($30,000) and shall pay to
              M.I.T.:

              (i)     License Maintenance Fees of Ten Thousand Dollars ($10,000)
                      per year, due on June 1, 1997 and each June 1 thereafter,
                      in addition to the License Maintenance Fees due under
                      Paragraph 4.1(b) hereof Running Royalties for all fields
                      of use for all LICENSED PRODUCTS and LICENSED PROCESSES
                      under this Agreement shall be creditable against this
                      License Maintenance Fee as specified in Paragraph 4.1(b)
                      hereof

              (ii)    Running Royalties in all fields of use shall be the same
                      as specified in Paragraph 4.1(c) hereof.

      4.2 All payments due hereunder shall be subject to deduction of taxes or
other fees which may be imposed by any government which are paid by LICENSEE.

      4.3 No multiple royalties shall be payable because any LICENSED PRODUCT,
its manufacture, use, lease or sale are or shall be covered by more than one
PATENT RIGHTS patent application or PATENT RIGHTS patent licensed under this
Agreement.

      4.4 Royalty payments shall be paid in United States dollars in Cambridge,
Massachusetts, or at such other place as M.I.T. may reasonably designate
consistent with the laws and regulations controlling in any foreign country. If
any currency conversion shall be required in connection with the payment of
royalties hereunder, such conversion shall be made by using the exchange rate
prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the
calendar quarterly reporting period to which such royalty payments relate.

      4.5 If no patent claims to M.I.T. Case [**] of the PATENT RIGHTS are
allowed in the United States by January 1, 1997, then no royalties or license
maintenance fees which mature after said date shall be due unless and until such
claims are allowed, except if the LICENSED PRODUCT or SERVICE falls under an
issued patent of another M.I.T. Case licensed in this

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

Agreement. If such claims to M.I.T. Case [**] are subsequently allowed after
such suspension of royalties, Running Royalties shall thereafter be due on NET
SALES of LICENSED PRODUCTS or SERVICES sold after said allowance of claims, and
License Maintenance Fees that mature after said allowance of claim shall also be
due.

      4.6 If after January 1, 1997 claims have been allowed but said claims are
not as broad as the first claim of USSN [**] of Case [**] (as filed), then
M.I.T. and LICENSEE shall meet to renegotiate the Royalty Rates and License
Maintenance Fees in good faith based on the claims that have been allowed and
claims of other patent that have been added to the PATENT RIGHTS of this
Agreement. Similarly, if at any time prior to January 1, 1997 all U.S. patent
prosecution on Case [**] is completed or abandoned, such that no unallowed or
unissued claims are pending, and no claim has been allowed or issued that is as
broad as the first claim of USSN [**] of Case [**] (as filed), then M.I.T. and
LICENSEE shall meet at that time to renegotiate the Royalty Rates and License
Maintenance Fees based on the claims that have been allowed and claims of other
patents which have been added to the PATENT RIGHTS of this Agreement.

      4.7 In the event LICENSEE is required to make payments (including without
limitation royalties, option fees or license fees) to one or more third parties,
other than M.I.T., its affiliates, successors or assigns, to obtain a license or
similar right necessary to make, use or sell LICENSED PRODUCTS or to practice or
otherwise make use of the LICENSED PROCESSES, LICENSEE may deduct [**] Percent
([**]%) of such payments from royalties thereafter payable to M.I.T., provided,
however, that in no event shall the royalties due M.I.T. be reduced by more than
[**] ([**]) nor reduced below [**] Percent ([**]%) of NET SALES of the LICENSED
PRODUCTS and LICENSED SERVICES.

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                        ARTICLE 5 - REPORTS AND RECORDS

      5.1 LICENSEE shall keep full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to M.I.T. hereunder. Said books of account shall be kept at
LICENSEE's principal place of business or the principal place of business of the
appropriate division of LICENSEE to which this Agreement relates. Said books and
the supporting data shall be open at all reasonable times and upon reasonable
notice for three (3) years following the end of the calendar year to which they
pertain, to the inspection of a certified public accountant designated by M.I.T.
for the sole purpose of verifying LICENSEE's royalty statement or compliance in
other-respects with this Agreement.

      5.2 Prior to the year in which LICENSEE makes the first commercial sale of
a LICENSED PRODUCT or LICENSED SERVICE, LICENSEE shall deliver yearly reports to
M.I.T. within sixty (60) days after the end of each year giving the particulars
of the business conducted by LICENSEE and its sublicensees during the preceding
year which are pertinent. After the first commercial sale of a LICENSED PRODUCT
or LICENSED SERVICE such reports shall be delivered quarterly within sixty (60)
days after the end of each calendar quarter for the preceding quarter. All such
reports shall give particulars of the business pertinent to a royalty accounting
under this Agreement, including at a minimum:

          (a) number of LICENSED PRODUCTS and LICENSED SERVICES manufactured and
              sold by LICENSEE and all sublicensees;

          (b) total billings for LICENSED PRODUCTS and LICENSED SERVICES sold by
              LICENSEE and all sublicensees;

          (c) revenue received from sublicensees for LICENSED PRODUCTS and
              LICENSED SERVICES;

          (d) deductions applicable as provided in Paragraph 1.6 hereof,

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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

          (e) total royalties due; and

          (f) names and addresses of all sublicensees of LICENSEE.

      5.3 With each such report submitted, LICENSEE shall pay to M.I.T. the
royalties due and payable under this Agreement. If no royalties shall be due,
LICENSEE shall so report.

      5.4 On or before the ninetieth (90th) day following the close of
LICENSEE's fiscal year, LICENSEE shall provide M.I.T. with LICENSEE's certified
financial statements for the preceding fiscal year including, at a minimum, a
Balance Sheet and an Operating Statement.

      5.5 The royalty payments set forth in this Agreement and amounts due under
Article 6 shall, if overdue, bear interest until payment at a per annum rate
[**] percent ([**]%) above the prime rate in effect at the Chase Manhattan Bank
(N.A.) on the due date. The payment of such interest shall not foreclose M.I.T.
from exercising any other rights it may have as a consequence of the lateness of
any payment.

                         ARTICLE 6 - PATENT PROSECUTION

      6.1 M.I.T. and Children's Hospital shall apply for, seek prompt issuance
of, and maintain during the term of this Agreement the PATENT RIGHTS in the
United States and in those foreign countries listed in Appendix B hereto and in
any other foreign country at LICENSEE's request. Appendix B may be amended by
verbal agreement of both parties, such agreement to be confirmed in writing
within ten (10) days. The prosecution, filing and maintenance of all PATENT
RIGHTS patents and applications shall be the primary responsibility of LICENSEE
to the extent that such primary responsibility has not been previously granted
by M.I.T. to Advanced Tissue Sciences, Inc. ("ATS") provided, however, that
MI.T. and Children's Hospital shall have reasonable opportunities to advise
LICENSEE and shall cooperate with LICENSEE in such prosecution, filing and
maintenance, and further provided that LICENSEE shall not abandon any
substantive claims in the PATENT RIGHTS

                                      -15-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

without prior permission of M.I.T. or Children's Hospital. In cases where ATS
has the primary responsibility for such prosecution, M.I.T. and Children's
Hospital agree to grant to LICENSEE their rights to advise ATS on prosecution
matters that in LICENSEE's view could affect LICENSEE's rights in the PATENT
RIGHTS in the FIELDS OF USE.

      6.2 LICENSEE shall reimburse M.I.T. (or Children's Hospital as
appropriate) for filing, prosecution and maintenance of the following Patent
Rights:

          (a) For M.I.T. Case Nos. [**],[**],[**],[**],[**],[**],[**] and
              [**];[**] percent ([**]%) of all patent costs incurred for these
              cases before the Effective Date of this Agreement and during any
              period in which ATS is licensed. to these cases. If the ATS
              license is terminated, LICENSEE shall reimburse M.I.T. for all
              patenting expenses for these cases incurred thereafter if licensed
              only to LICENSEE, and a reasonable share of patenting costs during
              any period when there are other licenses to said Patent Rights. To
              the best of M.I.T.'s knowledge, all such costs as have been
              incurred prior to the Effective Date of this Agreement are set
              forth in a letter from M.I.T. to LICENSEE dated the Effective
              Date;

          (b) For M.I.T. Case Nos. [**],[**],[**], and [**]:[**] Percent ([**]%)
              of all patenting costs, whether incurred before or during the
              period of this Agreement. To the best of M.I.T.'s knowledge, all
              such costs as have been incurred prior to the Effective Date of
              this Agreement are set forth in a letter from M.I.T. to LICENSEE
              dated the Effective Date;

          (c) For M.I.T. Case Nos. [**],[**],[**],[**] and [**], and any new
              PATENT RIGHTS added pursuant to Paragraph 2.2 hereof or otherwise
              by amendment: [**] Percent ([**]%) of all patenting costs
              (including those prior to licensing) if licensed only to LICENSEE,
              and a reasonable share of patenting costs during any period when
              there are other licensees to said Patent Rights.

          (d) For M.I.T. Case [**]: It is understood that MIT has another
              licensee to this case, outside the field of use of medical
              applications, who is responsible for patenting costs for this
              case. Said licensee wishes its identity to remain confidential.
              LICENSEE agrees that if this other license is terminated, LICENSEE
              shall be responsible for all patenting costs incurred thereafter.
              Licensee shall also be responsible for all patenting costs for any
              future divisionals, continuations or other derivatives of the
              Patent Rights of this case (if any) which are directed solely to
              medical applications.

                                      -16-
<PAGE>

      6.3 If M.I.T. or a third party licensee decides to discontinue paying the
prosecution or maintenance costs of a case in the PATENT RIGHTS, LICENSEE shall
have the right but not the obligation to assume the patenting costs to prevent
abandonment of the rights to such case.

      6.4 In the event that M.I.T. or a third party licensee does not elect to
file for patent protection on an invention covered by Paragraph 2.2 hereof,
LICENSEE shall have the right to prepare and file appropriate applications on
such inventions in the name of M.I.T, the costs to be borne by LICENSEE in
accordance with Paragraph 6.2(c) hereof

                            ARTICLE 7 - INFRINGEMENT

      7.1 LICENSEE and M.IT. shall inform the other promptly in writing of any
alleged infringement of the PATENT RIGHTS in the FIELDS OF USE by a third party
and of any available evidence thereof.

      7.2 During the term of this Agreement, LICENSEE shall have the right, but
shall not be obligated, to prosecute at its own expense all infringements of the
PATENT RIGHTS in the FIELDS OF USE and, in furtherance of such right, M.I.T.
hereby agrees that LICENSEE may include M.I.T. as a party plaintiff in any such
suit without expense to M.I.T. The total cost of any such infringement action
commenced or defended solely by LICENSEE shall be borne by LICENSEE. No
settlement, consent judgment or other voluntary final disposition of the suit
may be entered into without the consent of M.I.T., which consent shall not
unreasonably be withheld.

      7.3 If within six (6) months after learning of any alleged infringement,
LICENSEE shall have been unsuccessful in persuading the alleged infringer to
desist and shall not have brought and shall not be diligently prosecuting an
infringement action, or if LICENSEE shall notify M.I.T. at anytime prior thereto
of its intention not to bring suit against any alleged infringer, then, and in
those events only, M.I.T. shall have the right, but shall not be obligated, to

                                      -17-
<PAGE>

prosecute at its own expense any infringement of the PATENT RIGHTS, and M.I.T.
may, for such purposes, use the name of LICENSEE as party plaintiff. M.I.T.
shall indemnify LICENSEE against any order for costs that may be made against
LICENSEE in such proceedings. In the event M.I.T. shall undertake the
enforcement and/or defense of the patent rights by litigation, M.I.T. shall keep
any recovery or damages for patent infringement derived therefrom.

      7.4 In the event that LICENSEE shall undertake the enforcement and/or
defense of the PATENT RIGHTS by litigation, LICENSEE may withhold up to Fifty
Percent (50%) of the payments otherwise thereafter due M.I.T. under Article 4
hereof and apply the same toward reimbursement of up to half of LICENSEE's
expenses, including reasonable attorneys' fees, in connection therewith. Any
recovery of damages by LICENSEE for each such suit shall be applied first in
satisfaction of any unreimbursed expenses and legal fees of LICENSEE relating to
such suit, and next toward reimbursement of M.I.T. for any payments under
Article 4 past due or withheld and applied pursuant to this Article 7. The
balance remaining from any such recovery shall be divided between LICENSEE and
M.I.T. in the proportion of 95%/5%.

      7.5 In the event that M.I.T. (or any third party licensee) shall undertake
the enforcement and/or defense of the PATENT RIGHTS outside the FIELDS OF USE of
this License Agreement, then LICENSEE shall have the right, at its own expense,
to participate in such enforcement or defense, but shall have no rights to any
compensation derived therefrom, except to the extent LICENSEE's legal costs are
awarded.

      7.6 In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the PATENT RIGHTS shall be brought against LICENSEE,
M.I.T., at

                                      -18-
<PAGE>

its option, shall have the right within thirty (30) days after commencement of
such action, to intervene and take over the sole defense of the action at its
own expense.

      7.7 In any infringement suit that either party may institute to enforce
the PATENT RIGHTS pursuant to this Agreement, the other party hereto shall, at
the request and expense of the party initiating such suit, cooperate in all
respects and, to the extent possible, have its employees testify when requested
and make available relevant records, papers, information, samples, specimens,
and the like.

      7.8 LICENSEE, during the exclusive period of this Agreement, shall have
the sole right in accordance with the terms and conditions herein to sublicense
any alleged infringer for future use of the PATENT RIGHTS.

                ARTICLE 8 - PRODUCT LIABILITY AND REPRESENTATION

          (a) LICENSEE shall indemnify, defend and hold harmless M.I.T. and
              Children's Hospital, their trustees, officers, medical and
              professional staff, employees, and agents and their respective
              successors, heirs and assigns (the "Indemnities"), against any
              liability, damage, loss or expense (including reasonable
              attorney's fees and expenses of litigation) incurred by or imposed
              upon the Indemnitees or any one of them in connection with any
              claims, suits, actions, demands or judgments arising out of any
              theory of product liability (including, but not limited to,
              actions in the form of tort, warranty, or strict liability)
              concerning any product, process or service made, used or sold
              pursuant to any right or license granted under this Agreement.

          (b) LICENSEE's indemnification under (a) above shall not apply to any
              liability, damage, loss or expense to the extent that it is
              directly attributable to the negligent activities, reckless
              misconduct or intentional rnisconduct of the Indemnitees or if any
              employee of M.I.T. or Children's Hospital shall use a LICENSED
              PRODUCT or LICENSED PROCESS on humans without with the express
              written permission of LICENSEE.

          (c) LICENSEE agrees, at its own expense, to provide attorneys
              reasonably acceptable to the Institution to defend against any
              actions brought or filed against any party indemnified hereunder
              with respect to the subject of indemnity contained herein, whether
              or not such actions are rightfully brought.

                                      -19-
<PAGE>

          (d) This Section 8.1 shall survive expiration or termination of this
              Agreement.

      8.2 Insurance

          (a) Beginning at the time as any such product, process or service is
              being commercially distributed or sold (other than for the purpose
              of obtaining regulatory approvals) by LICENSEE or by a
              sublicensee, affiliate or agent of LICENSEE, LICENSEE shall, at
              its sole cost and expense, procure and maintain comprehensive
              general liability insurance in amounts not less than $2,000,000
              per incident and $2,000,000 annual aggregate and naming the
              Indemnitees as additional insureds. Such comprehensive general
              liability insurance shall provide (i) product liability coverage
              and (ii) broad form contractual liability coverage for LICENSEE's
              indemnification under Section 8.1 of this Agreement. If LICENSEE
              elects to self-insure all or part of the limits described above
              (including deductibles or retentions which are in excess of
              $250,000 annual aggregate), such self-insurance program must be
              acceptable to M.I.T. and Children's Hospital and the Risk
              Management Foundation of the Harvard Medical Institutions, Inc.
              The minimum amount of insurance coverage required under this
              Section 8.2 shall not be construed to create a limit of LICENSEE's
              liability with respect to its indemnification under Section 8.1 of
              this Agreement.

          (b) LICENSEE shall provide M.I.T. with written evidence of such
              insurance upon request of M.I.T. LICENSEE shall provide M.I.T.
              with written notice at least fifteen (15) days prior to the
              cancellation, non-renewal or material change in such insurance; if
              LICENSEE does not obtain replacement insurance providing
              comparable coverage within such fifteen (15) day period, M.I.T.
              shall have the right to terminate this Agreement effective at the
              end of such fifteen (15) day period without notice of any
              additional waiting periods.

          (c) LICENSEE shall maintain such comprehensive general liability
              insurance during

              (i)   the period that any such product process or service is being
                    commercially distributed or sold (other than for the purpose
                    of obtaining regulatory approvals) by LICENSEE or by a
                    sublicensee, affiliate or agent of LICENSEE, and

              (ii)  a reasonable period after the period referred to in (c)(i)
                    above which in no event shall be less than fifteen (15)
                    years.

          (d) This Section 8.2 shall survive expiration or termination of this
              Agreement.

                                      -20-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

      8.3 M.I.T. represents and warrants that it owns the United States and
corresponding foreign patents and applications included within the PATENT RIGHTS
of Appendix A, and that, to the best of its knowledge, the claims of the PATENT
RIGHTS of Appendix A are valid, patentable and enforceable. M.I.T. further
represents and warrants that it co-owns certain of the PATENT RIGHTS with
Children's Hospital, and that Children's Hospital has empowered M.I.T.
unilaterally to grant the licenses hereunder as evidenced by the agreement
attached hereto as Appendix C. M.I.T. represents and warrants that it is free of
any obligations preventing M.I.T. from providing to LICENSEE the rights and
licenses granted herein. M.I.T.'s and Children's Hospital's total liability for
such representations and those of Paragraph 8.4 hereof is limited to the extent
of patent costs, license fees, license maintenance fees, and royalties paid to
M.I.T. by LICENSEE under this Agreement.

      8.4 M.I.T. hereby represents that, to the best of its knowledge as of the
Effective Date of this Agreement, there do not exist any M.I.T. or Children's
Hospital patents or pending patents, other than the PATENT RIGHTS of this
Agreement which would be infringed by the practice of the PATENT RIGHTS of this
Agreement as taught in the PATENT RIGHTS of M.I.T. Case [**] as originally filed
or which would otherwise prevent the practice of any of the claims described in
the patents and patent applications fisted in M.I.T. Case [**] as originally
filed. If, however, such M.I.T. or Children's Hospital patents or patent
applications are subsequently found to have existed prior to that date, or if
such M.I.T. or Children's Hospital patents or patent applications exist during
the term of the license of PATENT RIGHTS granted hereunder, M.I.T. shall grant
to LICENSEE, to the extent then-existing agreements with third parties allow, a
fully paid-up nonexclusive license to such patents and/or patent applications,
to the extent necessary for the practice of the PATENT RIGHTS of this Agreement.

                                      -21-
<PAGE>

      8.5 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, M.I.T.
MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS
OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR
PENDING.

                          ARTICLE 9 - EXPORT CONTROLS

      It is understood that M.I.T. is subject to United States laws and
regulations controlling the export of technical data, computer software,
laboratory prototypes and other commodities (including the Arms Export Control
Act, as amended, and the Export Administration Act of 1979), and that its,
obligations hereunder are contingent on compliance with applicable United States
export laws and regulations. The transfer of certain technical data and
commodities may require a license from the cognizant agency of the United States
Government and/or written assurances by LICENSEE that LICENSEE shall not export
data or commodities to certain foreign countries without prior approval of such
agency. M.I.T. neither represents that a license shall not be required nor that,
if required, it shall be issued.

                         ARTICLE 10 - NON-USE OF NAMES

      LICENSEE shall not use the names or trademarks of the Massachusetts
Institute of Technology or Children's Hospital, nor any adaption thereof nor the
names of any of their employees; in any advertising, promotional or sales
literature without prior written consent obtained from M.I.T., Children's
Hospital, or said employee, in each case, except that LICENSEE may state that it
is licensed by M.I.T. under one or more of the patents and/or applications
comprising the PATENT RIGHTS.

                                      -22-
<PAGE>

                            ARTICLE 11 - ASSIGNMENT

      This Agreement may be assigned only in connection with (a) a change in
name or legal status of LICENSEE that does not affect the nature of its business
activities or (b) the sale of substantially all the assets of the business to
which the PATENT RIGHTS relates or a separable business unit related to a
particular LICENSED PRODUCT or LICENSED SERVICE with the written permission of
M.I.T., which shall not be unreasonably withheld, or (c) otherwise with the
written permission of M.I.T., which shall not be unreasonably withheld.

                        ARTICLE 12 - DISPUTE RESOLUTION

      12.1 Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, or in
connection with the Agreement including any dispute relating to patent validity
or infringement, which the parties shall be unable to resolve within sixty (60)
days shall be mediated in good faith. The party raising such dispute shall
promptly advise the other party of such claim, dispute or controversy in a
writing which describes in reasonable detail the nature of such dispute. By not
later than five (5) business days after the recipient has received such notice
of dispute, each party shall have selected for itself a representative who shall
have the authority to bind such party, and shall additionally have advised the
other party in writing of the name and title of such representative. By not
later than ten (10) business days after the date of such notice of dispute, such
representatives shall schedule a date for a mediation hearing with the Cambridge
Dispute Settlement Center or Endispute Inc. in Cambridge, Massachusetts. The
parties shall enter into good faith mediation and shall share the costs equally.
If the representatives of the parties have not been able to resolve the dispute
within fifteen (15) business days after such mediation hearing, the parties
shall have the right to pursue any other

                                      -23-
<PAGE>

remedies legally available to resolve such dispute in either the Courts of the
Commonwealth of Massachusetts or in the United States District Court for the
District of Massachusetts, to whose jurisdiction for such purposes M.I.T. and
LICENSEE each hereby irrevocably consents and submits.

      12.2 Notwithstanding the foregoing, nothing in this Article shall be
construed to waive any rights or timely performance of any obligations existing
under this Agreement.

                            ARTICLE 13 - TERMINATION

      13.1 Unless sooner terminated in a manner herewith provided, this
Agreement and the licenses herein granted shall continue in force until the
last-to-expire of the patents included in the PATENT RIGHTS.

      13.2 Should LICENSEE fail to make any payment whatsoever due and payable
to M.I.T. hereunder, M.I.T. shall have the right to terminate this Agreement
effective on sixty (60) days' prior written notice, unless LICENSEE shall make
all such payments to M.I.T. within said sixty (60) day period. Upon the
expiration of the sixty (60) day period, if LICENSEE shall not have made all
such payments to M.I.T. or, in the case of a dispute as to royalties due,
commenced the dispute resolution procedures contemplated by Article 12 hereof,
the rights, privileges and license granted hereunder shall automatically
terminate.

      13.3 Upon any material breach or default of this Agreement by LICENSEE,
other than those occurrences set out in Paragraph 13.1 and 13.2 hereof, which
shall always take precedence in that order over any material breach or default
referred to in this Paragraph 13.3, M.I.T. shall have the right to terminate
this Agreement and the rights, privileges and license granted hereunder
effective on ninety (90) days prior written notice to LICENSEE. Such termination
shall become automatically effective unless LICENSEE shall have cured any such
material breach or default prior to the expiration of the ninety (90) day
period.

                                      -24-
<PAGE>

      13.4 LICENSEE shall have the right to terminate this Agreement at any time
on ninety (90) days' prior written notice to M.I.T., and upon payment of all
amounts due M.I.T. through the effective date of the termination.

      13.5 Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination. LICENSEE and any sublicensee
thereof may, however, after the effective date of such termination, sell all
LICENSED PRODUCTS and LICENSED SERVICES, and complete LICENSED PRODUCTS in the
process of manufacture at the time of such termination and sell the same,
provided that LICENSEE shall pay to M.I.T. the Running Royalties thereon as
required by Article 4 hereof and shall submit the reports required by Article 5
hereof on the sales of LICENSED PRODUCTS and LICENSED SERVICES.

      13.6 Upon termination of this Agreement for any reason, any sublicense not
then in default shall have the right to seek a license from M.I.T. M.I.T. agrees
to negotiate such licenses in good faith under reasonable terms and conditions.

                         ARTICLE 14 - PAYMENTS, NOTICES
                            AND OTHER COMMUNICATIONS

      Any payment, notice or other communication pursuant to this Agreement
shall be sufficiently made or given on the date of mailing if sent to such party
by certified first class mail, postage prepared, addressed to it at its address
below or as it shall designate by written notice given to the other party:

In the case of M.I.T.:

                 Director
                 Technology Licensing Office
                 Massachusetts Institute of Technology
                 Room E32-300
                 Cambridge, Massachusetts 02139

                                      -25-
<PAGE>

In the case of LICENSEE:

                 Mr.  Bruce Parker
                 President
                 Parker Medical Assoc.
                 2401 Distribution Street
                 Charlotte, N.C.  28203

                     ARTICLE 15 - MISCELLANEOUS PROVISIONS

      15.1 This Agreement shall be construed, governed, interpreted and applied
in accordance with the laws of the Commonwealth of Massachusetts, U.S.A., except
that questions affecting the construction and effect of any patent shall be
determined by the law of the country in which the patent was granted.

      15.2 The parties hereto acknowledge that this Agreement sets forth the
entire Agreement and understanding of the parties hereto as to the subject
matter hereof, and shall not be subject to any change or modification except by
the execution of a written instrument subscribed to by the parties hereto.

      15.3 The provisions of this Agreement are severable, and in the event that
any provisions of this Agreement shall be determined to be invalid or
unenforceable under any controlling body of the law, such invalidity or
unenforceability shall not in any way affect the validity or enforceability of
the remaining provisions hereof.

      15.4 LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United
States with all applicable United States patent numbers. All LICENSED PRODUCTS
shipped to or sold in other countries shall be marked in such a manner as to
conform with the patent laws and practice of the country of manufacture or sale.

      15.5 The failure of either party to assert a right hereunder or to insist
upon compliance with any term or condition for this Agreement shall not
constitute a waiver of that right or excuse a similar subsequent failure to
perform any such term or condition by the other party.

                                      -26-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

      15.6 A party to this Agreement shall be excused from liability for delay
in the performance of any of its obligations hereunder if such delay is due to
causes beyond its reasonable control including, without limitation, acts of God,
fires, earthquakes, strikes and labor disputes, acts of war, or intervention of
any governmental authority, but any such delay or failure shall be remedied by
such party as soon as is reasonably possible.

      15.7 Special Provisions Relating to AMS. M.I.T. has reviewed the Research
and Development Agreement (the "R&D Agreement") and the Supply and Marketing
Agreement (the "S&M Agreement") between LICE . NSEE and American Medical
Systems, Inc. ("AMS") (copies of which have been delivered to M.I.T.), and:

          (a) M.I.T. hereby agrees that AMS is deemed to be a sublicensee under
              this Agreement and that the licenses granted to AMS pursuant to
              the R&D Agreement and the S&M Agreement meet the sublicense
              requirements of the License Agreement.

          (b) For purposes of transactions and other matters under or to the
              extent affecting the rights and obligations of the parties under
              the R&D Agreement and the S&M Agreement only, the provisions of
              this Agreement are amended and supplemented as follows:

              (i)     "NET SALES" has the same definition as Net Sales under the
                      S&M Agreement.

              (ii)    With respect to distribution of LICENSED PRODUCTS and
                      LICENSED SERVICES (as such terms are defined in this
                      Agreement) under or pursuant to the S&M Agreement or
                      Section 9.4 of the R&D Agreement, Running Royalties will
                      be equal to the greater of [**] percent ([**]%) of Net
                      Sales, as defined in the S&M Agreement or [**] ([**]) of
                      royalties accrued to LICENSEE on such Net Sales, and no
                      royalties will be due on the Transfer Price, as defined in
                      the S&M Agreement paid to LICENSEE therefor. Annual and
                      quarterly reports under Paragraph 5.2 hereof will be due
                      ninety (90) days after the end of the applicable calendar
                      year or quarter. AMS financial statements will be
                      sufficient for purposes of this Agreement if certified by
                      the chief financial officer or controller of AMS as
                      prepared in accordance with generally accepted accounting
                      principles consistently applied by AMS and if limited to
                      transactions resulting in Running Royalties.

                                      -27-
<PAGE>

              (iii)   In the event M.I.T. issues any notice under Paragraph 2.2,
                      13.2 or 13.3 hereof, M.I.T. will simultaneously deliver a
                      copy thereof to AMS by certified first class mail, postage
                      prepaid, addressed as follows or as otherwise designated
                      by AMS by written notice to M.I.T.:

                                   American Medical Systems, Inc.
                                   10700 Bren Road West
                                   Minneapolis, Minnesota 55343
                                   Attn: David Booth, President

              (iv)    M.I.T. may terminate this Agreement pursuant to Paragraph
                      13.2 or 13.3 hereof with respect to the applications
                      within the FIELD OF USE (as defined in this Agreement)
                      other than tissue engineering applications in the human
                      urological field without terminating this Agreement with
                      respect to tissue engineering applications in the human
                      urological field within the FIELD OF USE. In the event of
                      any failure to make any payment under this Agreement or
                      other material breach or default of this Agreement that
                      does not relate to tissue engineering applications in the
                      human urological field within the FIELD OF USE, M.I.T.
                      will not terminate this Agreement with respect to tissue
                      engineering applications in the human urological field
                      within the FIELD OF USE.

              (v)     Any termination of this Agreement with respect to tissue
                      engineering applications in the human urological field
                      within the FIELD OF USE by LICENSEE pursuant to Paragraph
                      13.4 hereof requires the prior written consent of AMS to
                      be effective.

              (vi)    This Agreement will not be modified in any manner
                      adversely affecting tissue engineering applications in the
                      human urological field within the FIELD OF USE without the
                      prior written consent of AMS, which is an intended third
                      party beneficiary of the provisions of this Paragraph 15.7
                      as so amended and supplemented as a sublicensee hereunder.
                      Without limiting the generality of the foregoing, any
                      modification of this Agreement by addition of patent
                      rights under Paragraph 2.2 hereof will not require such
                      written consent.

                                      -28-
<PAGE>

      IN WITNESS WHEREOF, the parties have duly executed this Amended and
Restated Agreement the day and year set forth below.

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

By /s/ Lita Nelson
   ---------------
Name Lita L. Nelson
     --------------
Title Director Technology Licensing Office
      ------------------------------------

Date: July 1, 1996

REPROGENESIS, INC.

By /s/ A. Bruce Parker
   -------------------
Name: A. Bruce Parker
Title: President

Date: July 1, 1996

                                      -29-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                                         APPENDIX

UNITED STATES PATENT RIGHTS

M.I.T. Case 3946
"Novel Non-Peptide Bioerodible Polymers based on Naturally occurring X-Amino
Acids"
By Joachim Kohn and Robert S. Langer
U.S. Patent 4,638,0451    Issued 01/20/87

M.I.T. Case 4051
"The use of Biodegradable Poly (Iminocarbonates) as Biomaterials for Medical
Applications"
By Joachim Kohn and Robert S. Langer
U.S.  Patent 4,806,621    Issued 02/21/89

M.I.T. Case [**]
"[**]"
By Joseph P. Vacanti and Robert S. Langer
U.S.S.N. [**]             Filed [**]
U.S.S.N. [**]             Filed [**]
U.S.S.N. [**]             Filed [**]
PCT/US[**]                Filed [**]
JAP S.N. [**]             Filed [**]
EPC S.N. [**]             Filed [**]

M.I.T. Case [**]
"[**]"
By Abraham J. Domb, Robert S. Langer, Ernest G. Cravalho, Gerson Gollomb, Edith
Mathiowitz and Cato T. Laurencin
U.S.S.N. [**]             Filed [**]
U.S.S.N. [**]             Filed [**]
JP S.N.___                Filed [**]
EPC [**]                  Filed [**]
CAN [**]                  Filed [**]

M.I.T. Case 4874
"Neomorphogenesis of Cartilage"
By Robert S. Langer, Charles A. Vacanti and Joseph P. Vacanti
U.S. Patent 5,041,138     Issued 08/20/91
U.S.S.N. 90/02091         Filed 04/16/90
PCT S.N. PCT IUS 509,952  Filed 04/16/90

M.I.T. Case [**]
"[**]"
By Lynt Johnson, Robert S. Langer and Joseph P. Vacanti
U.S.S.N. [**]             Filed [**]
U.S.S.N. [**]             Filed [**]
NO S.N.                   Filed [**]

                                      -30-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

KR S.N.                 Filed [**]
JP S.N. 1-[**]          Filed [**]
F1 S.N.                 Filed [**]
EPC S.N. [**]           Filed [**]
CAN S.N. [**]           Filed [**]
AU S.N. [**]            Filed [**]

M.I.T. Case [**]
"[**]"
By Robert S. Langer, Antonios G. Mikos and Georgios Sarakfnos
To be filed at M.I.T.'s discretion.

M.I.T. Case No. [**]
"[**]"
By Robert S. Langer, Jr. and Joseph P. Vacanti
U.S.S.N. [**]           Filed [**]
PCT S.N. PCT/LJS/[**]   Filed [**]

M.I.T. Case No. [**] (CMCC #[**])
"[Neomorphogenesis of Urological Structures In Vivo From Cell]"
By Anthony Atala, Michael R. Freeman, Robert S. Langer and Joseph Vacanti
U.S.S.N. [**]           Filed [**]
U.S.S.N. [**]           Filed [**]
PCT S.N. PCT/US[**]     Filed [**]

M.I.T. Case No. [**] (CMCC [**])
"[**]"
By J. Vacanti and R. Langer

M.I.T. Case No. [**] (CMCC [**])
"[**]"
By J. Vacanti, J. Upton and R. Ortiz-Colberg

M.I.T. Case No. [**] (CMCC [**])
"[**]"
By K. Paige, L Cima, T. Atala and C. Vacanti
U.S.S.N. [**]           Filed [**]
PCT S.N. PCT/US[**]     Filed [**]
JAP S.N. [**]           Filed [**]
EPC S.N. [**]           Filed [**]
CAN S.N. [**]           Filed [**]
AUS S.N. [**]           Filed [**]

M.I.T. Case No. [**] (CMCC [**])
"[**]"
By A. Atala, A. Vacanti, L. Cima, and J. Vacanti

                                      -31-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

M.I.T Case No. [**] CMCC #[**]
"[**]"
By A. Atala, R. S. Langer and Joseph Vacanti

M.I.T. Case [**] CMCC #[**]
"[**]"
By A. Atala, R. S. Langer and Joseph Vacanti

MIT Case [**]
"[**]"
By R. Langer, A. Mikos, D. Ingber and J. Vacanti
U.S.S.N. [**]           Filed [**]
PCT S.N. PCT/US[**]     Filed [**]

MIT Case [**]
"[**]"
By A. Mikos, R. Langer
U.S.S.N. [**]           Filed [**]

M.I.T.  Case No. [**]
"[**]"
By A. Atala,
U.S.S.N. [**]           Filed [**]
U.S.S.N.  ________      Filed [**]

                                      -32-
<PAGE>

                                   APPENDIX B

      Foreign countries in which PATENT RIGHTS shall be filed, prosecuted and
maintained in accordance with Article 6:

Canada
Great Britain
France
Germany
Italy

                                      -33-
<PAGE>

      This Amendment is to the License Agreement dated July 1, 1996 between
M.I.T. and REPROGENESIS, INC. The parties thereto now further agree as follows:

      1.  M.I.T. acknowledges that Reprogenesis has used reasonable efforts to
          meet the milestone of paragraph 3.2(a) of the License Agreement, and
          although a LICENSED PRODUCT or LICENSED SERVICE will not be introduced
          by July 1, 1999, M.I.T. will not use this fact to attempt termination
          of the License Agreement under paragraph 3.3.

      2.  Paragraph 3.2(a) of the License Agreement shall be amended to read:

                  3.2 (a) LICENSEE shall use best efforts to introduce the first
                  LICENSD PRODUCT or LICENSED SERVICE to commercial sale by
                  July 1, 2002.

      Agreed to for:

MASSACHUSETTS INSTITUTE OF TECHNOLOGY       REPROGENESIS, INC.

By:  /s/ Lita Nelson                        By:  /s/ Daniel R. Omstead
     ---------------                             ---------------------

Name: Lita Nelston                          Name: Daniel R. Omstead

Title: Director Technology                  Title: President

Licensing Office

Date: June 9, 1999                          Date: 6/9/99

                                       -1-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                                SECOND AMENDMENT
                  TO THE AMENDED AND RESTATED LICENSE AGREEMENT

      This Second Amendment with the Effective Date of February 22, 2000 is to
the Amended and Restated License Agreement dated July 1, 1996 between M.I.T. and
REPROGENESIS, INC. ("License Agreement").

      Pursuant to Paragraph 2.2 of the License Agreement, the parties thereto
further agree as follows:

      1. The inventions(s) disclosed and claimed in the following applications
      shall be added to the PATENT RIGHTS as defined in Paragraph 1.2 of the
      License Agreement:

            M.I.T. Case No. [**] (CMCC [**])
            "[**]"
            by Anthony Atala
            U.S. Provisional Application No. [**]
            Filed October 31, 1997
            PCT Application No. PCT/US[**]
            Filed [**]

      2. LICENSEE shall pay to M.I.T. a License Issue Fee of [**] ($[**]) for
      the above-identified rights.

      3. In addition to Paragraph 3.2 of the License Agreement, LICENSEE agrees
      to the following Due Diligence Milestones specific to the development of
      LICENSED PRODUCTS which fall under M.I.T. Case No. [**] (CMCC [**]):

          (a) LICENSEE shall file an IDE, IND, or equivalent on a LICENSED
              PRODUCT within [**] of the Effective Date of this Second
              Amendment.

          (b) LICENSEE shall maintain a clinical development program in
              accordance with industry standards for comparable products until
              market approval.

          (c) LICENSEE shall introduce a LICENSED PRODUCT in the bladder field
              to the market within [**] of the Effective Date of this Second
              Amendment.

      4. This Amendment is made as a part of the settlement of a disagreement
      concerning the proper scope of Paragraph 2.2 of the License Agreement and
      is not to be taken as either an admission of or denial by M.I.T. (for
      itself or on behalf of the Children's Medical Center Corporation) that
      CMCC Cases [**], and/or [**] are dominated by the claims of the M.I.T.
      Case No. [**] as originally filed.

      5. Any option rights LICENSEE may have under Paragraph 2.2 of the License
      Agreement to CMCC Cases [**],[**],[**], and [**] and Children's Hospital's
      right to license these cases shall be modified in accordance with the
      Agreements dated February 22, 2000, attached to this Second Amendment for
      reference purposes only.

                                       -1-
<PAGE>

      Agreed to for:

MASSACHUSETTS INSTITUTE OF
TECHNOLOGY                                 REPROGENESIS, INC.

By: /s/ Lita Nelsen                        By: /s/ Daniel R. Homestead
   --------------------------------------     ----------------------------------

Name:   Lita Nelsen                        Name:   Daniel R. Homestead
     ------------------------------------       --------------------------------

Title: Director Technology License Office  Title:  President
      -----------------------------------        -------------------------------

Date:  2/22/00                             Date:   2/22/00
     ------------------------------------       --------------------------------

                                      -2-<PAGE>

                                                                   Exhibit 10.34

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                                                                    CONFIDENTIAL

                      MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                                       and

                               REPROGENESIS, INC.

                            PATENT LICENSE AGREEMENT

                                   (EXCLUSIVE)
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

Patent Exclusive                                 IA/ra: [**].Reprogenesis
                                                        Date: October 30, 1996

                                    TABLE OF CONTENTS

WITNESSETH...................................................................1

1 - DEFINITIONS..............................................................2

2 - GRANT....................................................................4

3 - DILIGENCE................................................................6

4 - ROYALTIES................................................................7

5 - REPORTS AND RECORDS......................................................9

6 - PATENT PROSECUTION......................................................11

7 - INFRINGEMENT............................................................11

8 - PRODUCT LIABILITY.......................................................13

9 - EXPORT CONTROLS.........................................................15

10 - NON-USE OF NAMES.......................................................15

11 - ASSIGNMENT.............................................................16

12 - DISPUTE RESOLUTION.....................................................16

13 - TERMINATION............................................................17

14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS.............................18

15 - MISCELLANEOUS PROVISIONS...............................................19

APPENDIX A..................................................................20
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                      MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                                       and

                               REPROGENESIS, INC.

                            PATENT LICENSE AGREEMENT

      This Agreement is made and entered into this 7th day of November, 1996,
(the "EFFECTIVE DATE") by and between the MASSACHUSETTS INSTITUTE OF TECHNOLOGY,
a corporation duly organized and existing under the laws of the Commonwealth of
Massachusetts and having its principal office at 77 Massachusetts Avenue,
Cambridge, Massachusetts 02139, U.S.A. (hereinafter referred to as "M.I.T."),
and REPROGENESIS, INC., a corporation duly organized under the laws of Texas and
having its principal office at 10 Sylvan Drive, Suite 27, St. Simons Island,
Georgia 31522, U.S.A. (hereinafter referred to as "LICENSEE").

                                   WITNESSETH

      WHEREAS, M.I.T. is the owner of certain PATENT RIGHTS (as later defined
herein) relating to M.I.T. Case No. 4521, "Controlled Release Systems Containing
Heparin and Growth Factors" by Elazer Edelman, Robert Langer, Michael Klagsburn
and Edith Mathiowitz, U.S. Patent No. 5,100,668, Issued March 31, 1992, and
M.I.T. Case No. [**], "[**]" by Elazer Edelman, Aruna Natha and Matthew Nugent
and has the right to grant licenses under said PATENT RIGHTS, subject only to a
royalty-free, nonexclusive license heretofore granted to the United States
Government;

      WHEREAS, M.I.T. desires to have the PATENT RIGHTS developed and
commercialized to benefit the public and is willing to grant a license
thereunder;

      WHEREAS, LICENSEE has represented to M.I.T., to induce M.I.T. to enter
into this Agreement, that LICENSEE is experienced in the development,
production, manufacture, marketing and sale of products similar to the LICENSED
PRODUCT(s) (as later defined herein)
<PAGE>

and/or the use of the LICENSED PROCESS(es) (as later defined herein) and that it
shall commit itself to a thorough, vigorous and diligent program of exploiting
the PATENT RIGHTS so that public utilization shall result therefrom; and

      WHEREAS, LICENSEE desires to obtain a license under the PATENT RIGHTS upon
the terms and conditions hereinafter set forth.

      WHEREAS, LICENSEE and M.I.T. entered into a separate royalty bearing
License Agreement dated December 23, 1993.

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto agree as follows:

                                1 - DEFINITIONS

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

      1.1. "LICENSEE" shall include a related company of REPROGENESIS, INC., the
voting stock of which is directly or indirectly at least Fifty Percent (50%)
owned or controlled by REPROGENESIS, INC., an organization which directly or
indirectly controls more than Fifty Percent (50%) of the voting stock of
REPROGENESIS, INC. and an organization, the majority ownership of which is
directly or indirectly common to the ownership of REPROGENESIS, INC.

      1.2. "PATENT RIGHTS" shall mean all of the following M.I.T. intellectual
property:

          a.  the United States patent applications listed in Appendix A, and
              divisionals, continuations and claims of continuation-in-part
              applications which shall be directed to subject matter supported
              by such patent applications, and the resulting patents;

          b.  any patents resulting from reissues or reexaminations of the
              United States patents described in a. above;

          c.  the Foreign patents listed in Appendix A;

                                      -2-
<PAGE>

          d.  the Foreign patent applications listed in Appendix A, and
              divisionals, continuations and claims of continuation-in-part
              applications which shall be directed to subject matter supported
              by such Foreign patent applications, and the resulting patents;

          e.  Foreign patent applications filed after the EFFECTIVE DATE and
              divisionals, continuations and claims of continuation-in-part
              applications which shall be directed to subject matter
              specifically supported by such patent applications, and the
              resulting patents; and

          f.  any Foreign patents, resulting from equivalent Foreign procedures
              to United States reissues and reexaminations, of the Foreign
              patents described in c. above.

      1.3 A "LICENSED PRODUCT" shall mean any product or part thereof which:

          a.  is covered in whole or in part by a claim that has not expired or
              been held invalid by a court of competent Jurisdiction or by a
              pending claim contained in the PATENT RIGHTS in the country in
              which any such product or part thereof is made, used or sold; or

          b.  is manufactured by using a process or is employed to practice a
              process which is covered in whole or in part by a claim that has
              not expired or been held invalid by a court of competent
              jurisdiction or by a pending claim contained in the PATENT RIGHTS
              in the country in which any LICENSED PROCESS is used or in which
              such product or part thereof is used or sold.

      1.4 A "LICENSED PROCESS" shall mean any process which is covered in whole
or in part by a claim that has not expired or been held invalid by a court of
competent jurisdiction or by a pending claim contained in the PATENT RIGHTS.

      1.5 A "LICENSED SERVICE" shall mean any fee-bearing service performed by
LICENSEE or any sublicensee which uses a LICENSED PRODUCT or practices a
LICENSED PROCESS.

      1.6 "NET SALES" shall mean LICENSEE's (and its sublicensees') billings to
a third party for LICENSED PRODUCTS, LICENSED PROCESSES and LICENSED SERVICES
produced hereunder less the sum of the following:

          a.  discounts allowed in amounts customary in the trade;

                                      -3-
<PAGE>

          b.  sales, tariff duties and/or use taxes directly imposed and with
              reference to particular sales;

          c.  outbound transportation prepaid or allowed;

          d.  insurance;

          e.  amounts allowed or credited on returns; and

          f.  bad debts.

      Sales between LICENSEE and any of its affiliates or any of its
sublicensees, or between any of said affiliates or sublicensees, shall not be
included in such computation. No deductions shall be made for commissions paid
to individuals, whether they be with independent sales agencies or regularly
employed by LICENSEE and on its payroll, or for cost of collections. LICENSED
PRODUCTS shall be considered "sold" upon the earlier of receipt of payment or
six months after billed out or invoiced.

      1.7 "TERRITORY" shall mean worldwide.

      1.8 "FIELD OF USE" shall mean all.

                                   2 - GRANT

      2.1 M.I.T. hereby grants to LICENSEE the right and license in the
TERRITORY for the FIELD OF USE to practice under the PATENT RIGHTS and, to the
extent not prohibited by other patents, to make, have made, use, lease, offer
for sale, sell and import LICENSED PRODUCTS and LICENSED SERVICES, and to
practice the LICENSED PROCESSES, until the expiration of the last to expire of
the PATENT RIGHTS, unless this Agreement shall be sooner terminated according to
the terms hereof.

      2.2 LICENSEE agrees that LICENSED PRODUCTS leased or sold in the United
States shall be manufactured substantially in the United States.

                                      -4-
<PAGE>

      2.3 In order to establish a period of exclusivity for LICENSEE, M.I.T.
hereby agrees that it shall not grant any other license to make, have made, use,
lease, offer for sale, sell and import LICENSED PRODUCTS or LICENSED SERVICES;
or to utilize LICENSED PROCESSES subject to the royalty-free, nonexclusive
license rights of the United States Government per FAR 52.227-11, in the
TERRITORY for the FIELD OF USE during the period of time commencing with the
EFFECTIVE DATE and terminating with the last to expire of the PATENT RIGHTS.

      2.4 M.I.T. reserves the right to practice under the PATENT RIGHTS for
noncommercial research purposes.

      2.5 LICENSEE shall have the right to enter into sublicensing agreements
for the rights, privileges and licenses granted hereunder. Upon any termination
of this Agreement, sublicensees' rights shall also terminate, subject to
Paragraph 13.6 hereof.

      2.6 LICENSEE agrees to incorporate terms and conditions substantively
similar to Articles 2, 5.1, 7.1, 7.2, 7.3, 7.5, 7.6, 8, 9, 10, 12 and 15 of this
Agreement into its sublicense agreements, that are sufficient to enable LICENSEE
to comply with this Agreement.

      2.7 LICENSEE agrees to forward to M.I.T. a copy of any and all sublicense
agreements promptly upon execution by the parties.

      2.8 LICENSEE shall not receive from sublicensees anything of value in lieu
of cash payments in consideration for any sublicense under this Agreement,
without the express prior written permission of M.I.T.

      2.9 Nothing in this Agreement shall be construed to confer any rights upon
LICENSEE by implication, estoppel or otherwise as to any technology or patent
rights of M.I.T.

                                      -5-
<PAGE>

or any other entity other than the PATENT RIGHTS, regardless of whether such
patent rights shall be dominant or subordinate to any PATENT RIGHTS.

                                 3 - DILIGENCE

      3.1 LICENSEE shall use its reasonable best efforts to bring LICENSED
PRODUCTS and/or LICENSED SERVICES to market through a diligent development
program for exploitation of the PATENT RIGHTS.

      3.2 In addition:

          a.  LICENSEE shall use its best efforts to introduce the first
              LICENSED PRODUCT or LICENSED SERVICE to commercial sale by January
              1, 2002.

          b.  LICENSEE shall use its best efforts to introduce to market
              additional LICENSED PRODUCTS or LICENSED SERVICES within one year
              of demonstration of the scientific and technical feasibility
              of that particular LICENSED PRODUCT or LICENSED SERVICE, the
              demonstration of its clinical effectiveness, and the receipt of
              required approvals (if any are required) of regulatory
              authorities, or, within six (6) months of the demonstration of
              scientific, technical and clinical feasibility to complete a
              sublicense agreement for the marketing of the LICENSED PRODUCT or
              LICENSED SERVICE with a competent third party that shall commit
              the third party to use its best efforts to bring the LICENSED
              PRODUCT or LICENSED SERVICE to market within one year of the
              sublicense agreement.

      3.3 LICENSEE acknowledges that the primary objective of M.I.T. with
respect to the technology of this License Agreement is to promote development
and marketing of LICENSED PRODUCTS and LICENSED SERVICES for the public good.
Toward this end, M.I.T. shall have the right to terminate this Agreement
pursuant to Paragraph 13.3 hereof if LICENSEE fails to perform in accordance
with Paragraphs 3.1 or 3.2(a) above or if LICENSEE suspends its diligence in
performance of any of the development obligations of this Agreement for more
than three (3) months because of business circumstances such as lack of funds,
merger, acquisition, or the like. Failure to perform in accordance with
Paragraph 3.3(b) hereof shall only give M.I.T. the right to take back rights
granted hereunder as to the particular LICENSED PRODUCT or LICENSED

                                      -6-
<PAGE>

SERVICE, and products or services which are directly competitive to, or
replacements of that LICENSED PRODUCT or LICENSED SERVICE, not introduced or
sublicensed, or at M.I.T.'s discretion the right to bring a willing sublicense
prospect to LICENSEE. However, if LICENSEE can demonstrate to the satisfaction
of M.I.T., at M.I.T.'s sole discretion, that circumstances beyond LICENSEE's
control precluded LICENSEE from fulfilling its diligence obligations, and that
it is unlikely that any third party could overcome these circumstances better
than LICENSEE, then M.I.T. shall not exercise its termination rights under this
Paragraph for one year from the date at which M.I.T. gives notice of termination
and if LICENSEE reestablishes diligence towards its objectives during this one
year period, any prior lack of diligence will be deemed cured.

                                 4 - ROYALTIES

      4.1 For the rights, privileges and license granted hereunder, LICENSEE
shall pay royalties to M.I.T. in the manner hereinafter provided to the end of
the term of the PATENT RIGHTS or until this Agreement shall be terminated:

          a.  License Issue Fee of Twenty Thousand Dollars ($20,000), which
              said License Issue Fee shall be deemed earned and due immediately
              upon the EFFECTIVE DATE.

          b.  Patent Issue Fee of Thirty Five Thousand Dollars ($35,000), which
              shall be due upon issuance of the first patent claims of M.I.T.
              Case No. 6584, "Inhibition of Vascular Occlusion Following
              Vascular Intervention" by Elazer Edelman, Aruna Natha and Matthew
              Nugent.

          c.  License Maintenance Fees of Fifteen Thousand Dollars ($15,000) per
              year payable on January 1, 1999 and on January I of each year
              thereafter until the issuance of the first patent claims, and
              License Maintenance Fees of Twenty Five Thousand Dollars ($25,000)
              per year payable on each January 1 after the issuance of the first
              patent claims, provided, however, License Maintenance Fees may be
              credited to Running Royalties subsequently due on NET SALES for
              each said year, if any. License Maintenance Fees paid in excess of
              Running Royalties shall not be creditable to Running Royalties for
              future years.

                                      -7-
<PAGE>

          d.  Running Royalties in an amount equal to Three Percent (3%) of NET
              SALES of the LICENSED PRODUCTS, LICENSED PROCESSES and LICENSED
              SERVICES used, leased or sold by and/or for LICENSEE and/or its
              sublicensees; provided however, if LICENSEE is also obligated to
              pay royalties under the License Agreement dated December 23, 1993
              for the same LICENSED PRODUCT, LICENSED PROCESSES and LICENSED
              SERVICES, the Running Royalties due under this paragraph shall be
              reduced to One Half of One Percent (0.5%) of NET SALES of the
              LICENSED PRODUCT, LICENSED PROCESSES and LICENSED SERVICES used,
              Leased or sold by and/or for LICENSEE and/or its sublicensees.

          e.  Royalties representing a share of sublicensing revenue including,
              but not limited to, sublicense issue fees, received by LICENSEE
              for LICENSED PRODUCTS, LICENSED PROCESSES or LICENSED SERVICES
              sold by the sublicensee equal to:

              (i)     Fifty Percent (50%) if only the PATENT RIGHTS are
                      sublicensed; or

              (ii)    Twenty Five Percent (25%) if the sublicense revenue
                      includes revenue received for the PATENT RIGHTS
                      sublicensed in conjunction with products developed by
                      LICENSEE and/or substantial technology developed by
                      LICENSEE; but in no event shall royalties be less than
                      half of the applicable running royalty rate specified in
                      4.1d.

      4.2 All payments due hereunder shall be paid in full, without deduction of
taxes or other fees which may be imposed by any government, except as otherwise
provided in Paragraph 1.5(b).

      4.3 No multiple royalties shall be payable because any LICENSED PRODUCT,
its manufacture, use, lease or sale are or shall be covered by more than one
PATENT RIGHTS patent application or PATENT RIGHTS patent licensed under this
Agreement.

      4.4 Royalty payments shall be paid in United States dollars in Cambridge,
Massachusetts, or at such other place as M.I.T. may reasonably designate
consistent with the laws and regulations controlling in any foreign country. If
any currency conversion shall be required in connection with the payment of
royalties hereunder, such conversion shall be made

                                      -8-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

by using the exchange rate prevailing at the Chase Manhattan Bank (N.A.) on the
last business day of the calendar quarterly reporting period to which such
royalty payments relate.

      4.5 In the event LICENSEE is required to make payments (including without
limitation royalties, option fees or license fees) to one or more third parties,
other than M.I.T., its affiliates, successors or assigns, to obtain a license or
similar right necessary to make, use or sell LICENSED PRODUCTS or to practice or
otherwise make use of the LICENSED PROCESSES and LICENSED SERVICES, LICENSEE may
deduct [**] Percent ([**]%) of such payments from royalties thereafter payable
to M.I.T., provided, however, that in no event shall the royalties due M.I.T. be
reduced by more than [**] Percent ([**]%) of NET SALES of the LICENSED PRODUCTS,
LICENSED PROCESSES or LICENSED SERVICES.

                            5 - REPORTS AND RECORDS

      5.1 LICENSEE shall keep full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to M.I.T. hereunder. Said books of account shall be kept at
LICENSEE's principal place of business or the principal place of business of the
appropriate division of LICENSEE to which this Agreement relates. Said books and
the supporting data shall be open at all reasonable times for five (5) years
following the end of the calendar year to which they pertain, to the inspection
of M.I.T. or its agents for the purpose of verifying LICENSEE's royalty
statement or compliance in other respects with this Agreement. Should such
inspection lead to the discovery of a greater than Ten Percent (10%) discrepancy
in reporting to M.I.T.'s detriment, LICENSEE agrees to pay the full cost of such
inspection.

      5.2 LICENSEE shall deliver to M.I.T. true and accurate reports, giving
such particulars of the business conducted by LICENSEE and its sublicensees
under this Agreement as shall be pertinent to diligence under Article 3 and
royalty accounting hereunder:

                                      -9-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

          a.  before the first commercial sale of a LICENSED PRODUCT, LICENSED
              PROCESS or LICENSED SERVICES, annually, on January 31 of each
              year; and

          b.  after the first commercial sale of a LICENSED PRODUCT, LICENSED
              PROCESS or LICENSED SERVICES, quarterly, within sixty (60) days
              after March 31, June 30, September 30 and December 31, of each
              year.

      These reports shall include at least the following:

          a.  number of LICENSED PRODUCTS manufactured, leased and sold by
              and/or for LICENSEE and all sublicensees;

          b.  accounting for all LICENSED PROCESSES and/or LICENSED SERVICES
              used or sold by and/or for LICENSEE and all sublicensees;

          c.  accounting for NET SALES, noting the deductions applicable as
              provided in Paragraph 1.5;

          d.  Running Royalties due under Paragraph 4.1(c);

          e.  royalties due on other payments from sublicensees under paragraph
              4.1(d);

          f.  total royalties due; and

          g.  names and addresses of all sublicensees of LICENSEE.

      5.3 With each such report submitted, LICENSEE shall pay to M.I.T. the
royalties due and payable under this Agreement. If no royalties shall be due,
LICENSEE shall so report.

      5.4 On or before the ninetieth (90th) day following the close of
LICENSEE's fiscal year, LICENSEE shall provide M.I.T. with LICENSEE's certified
financial statements for the preceding fiscal year including, at a minimum, a
balance sheet and an income statement.

      5.5 The amounts due under Articles 4 and 6 shall, if overdue, bear
interest until payment at a per annum rate [**] Percent ([**]%) above the prime
rate in effect at the Chase Manhattan Bank (N.A.) on the due date. The payment
of such interest shall not foreclose M.I.T. from exercising any other rights it
may have as a consequence of the lateness of any payment.

                                      -10-
<PAGE>

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                             6 - PATENT PROSECUTION

      6.1 After the EFFECTIVE DATE, LICENSEE shall have the primary
responsibility for applying for, seeking prompt issuance of, and maintaining the
PATENT RIGHTS in M.I.T.'s name. LICENSEE shall seek strong, broad claims in
M.I.T.'s best interest. LICENSEE shall not abandon any major claim of the PATENT
RIGHTS without prior permission from M.I.T., such permission not to be
unreasonably withheld. Appendix B is a list of the foreign countries in which
patent applications corresponding to the United States patent applications
listed in Appendix A shall be filed. Appendix B may be amended by mutual
agreement of both parties. LICENSEE may abandon any PATENT RIGHTS if LICENSEE
notifies M.I.T. in writing in sufficient time for M.I.T. to maintain the PATENT
RIGHTS, and in such case, LICENSEE's rights under these PATENT RIGHTS shall
cease with such notification.

      6.2 Payment of all fees and costs relating to the filing, prosecution and
maintenance of the PATENT RIGHTS shall be the responsibility of LICENSEE,
whether such fees and costs were incurred before or after the EFFECTIVE DATE.
(As of May 21, 1996, such fees and costs for which M.I.T. has been billed equal
approximately [**] Dollars ($[**])). LICENSEE shall pay such fees and costs to
M.I.T. within thirty (30) days of invoicing; late payments shall accrue interest
and shall be subject to Paragraph 5.5.

                                7 - INFRINGEMENT

      7.1 LICENSEE shall inform M.I.T. promptly in writing of any alleged
infringement of the PATENT RIGHTS by a third party and of any available evidence
thereof.

      7.2 M.I.T. shall have the right, but shall not be obligated, to prosecute
at its own expense all infringements of the PATENT RIGHTS and, in furtherance of
such right, LICENSEE hereby agrees that M.I.T. may include LICENSEE as a party
plaintiff in any such suit, without expense to LICENSEE. The total cost of any
such infringement action commenced

                                      -11-
<PAGE>

or defended solely by M.I..T. shall be borne by M.I.T., and M.I.T. shall keep
any recovery or damages for past infringement derived therefrom.

      7.3 If within six months after having been notified of an alleged
infringement, M.I.T. shall have been unsuccessful in persuading the alleged
infringer to desist and shall not have brought and shall not be diligently
prosecuting an infringement action, or if M.I.T. shall notify LICENSEE at any
time prior thereto of its intention not to bring suit against any alleged
infringer in the TERRITORY for the FIELD OF USE, then, and in those events only,
LICENSEE shall have the right, but shall not be obligated, to prosecute at its
own expense any infringement of the PATENT RIGHTS in the TERRITORY for the FIELD
OF USE, and LICENSEE may, for such purposes, use the name of M.I.T. as party
plaintiff; provided, however, that such right to bring such an infringement
action shall remain in effect only during the EXCLUSIVE PERIOD. No settlement,
consent judgment or other voluntary final disposition of the suit may be entered
into without the consent of M.I.T., which consent shall not unreasonably be
withheld. LICENSEE shall indemnify M.I.T. against any order for costs that may
be made against M.I.T. in such proceedings.

      7.4 In the event that LICENSEE shall undertake litigation for the
enforcement of the PATENT RIGHTS, or the defense of the PATENT RIGHTS under
Paragraph 7.5, LICENSEE may withhold up to Fifty Percent ([50]%) of the payments
otherwise thereafter due M.I.T. under Article 4 hereunder and apply the same
toward reimbursement of up to half of LICENSEE's expenses, including reasonable
attorneys' fees, in connection therewith. Any recovery of damages by LICENSEE
for each such suit shall be applied first in satisfaction of any unreimbursed
expenses and legal fees of LICENSEE relating to such suit, and next toward
reimbursement of M.I.T. for any payments under Article 4 past due or withheld
and applied

                                      -12-
<PAGE>

pursuant to this Article 7. The balance remaining from any such recovery shall
be divided equally between LICENSEE and M.I.T.

      7.5 In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the PATENT RIGHTS shall be brought against M.I.T. or
LICENSEE, M.I.T., at its option, shall have the right, within thirty (30) days
after commencement of such action, to take over the sole defense of the action
at its own expense. If M.I.T. shall not exercise this right, LICENSEE may take
over the sole defense at LICENSEE's sole expense, subject to Paragraph 7.4.

      7.6 In any infringement suit as either party may institute to enforce the
PATENT RIGHTS pursuant to this Agreement, the other party hereto shall, at the
request and expense of the party initiating such suit, cooperate in all respects
and, to the extent possible, have its employees testify when requested and make
available relevant records, papers, information, samples, specimens, and the
like.

      7.7 LICENSEE, during the EXCLUSIVE PERIOD, shall have the sole right in
accordance with the terms and conditions herein to sublicense any alleged
infringer in the TERRITORY for the FIELD OF USE for future use of the PATENT
RIGHTS. Any upfront fees as part of such a sublicense shall be shared equally
between LICENSEE and M.I.T.; other revenues shall be treated per Article 4.

                             8 - PRODUCT LIABILITY

      8.1 LICENSEE shall at all times during the term of this Agreement and
thereafter, indemnify, defend and hold M.I.T., its trustees, directors,
officers, employees and affiliates, harmless against all claims, proceedings,
demands and liabilities of any kind whatsoever, including legal expenses and
reasonable attorneys' fees, arising out of the death of or injury to any person
or persons or out of any damage to property, resulting from the production,

                                      -13-
<PAGE>

manufacture, sale, use, lease, consumption or advertisement of the LICENSED
PRODUCT(s) and/or LICENSED PROCESS(es) or arising from any obligation of
LICENSEE hereunder.

      8.2 LICENSEE shall obtain and carry in full force and effect commercial,
general liability insurance, including product liability and errors and
omissions insurance, which shall protect LICENSEE and M.I.T. with respect to
events covered by Paragraph 8.1 above. Such insurance shall be written by a
reputable insurance company authorized to do business in the Commonwealth of
Massachusetts, shall list M.I.T. as an additional named insured thereunder,
shall be endorsed to include product liability coverage and shall require thirty
(30) days written notice to be given to M.I.T. prior to any cancellation or
material change thereof. The limits of such insurance shall not be less than
Three Million Dollars ($3,000,000) per occurrence with an aggregate of One
Million Dollars ($1,000,000) for personal injury including death; One Million
Dollars ($1,000,000) per occurrence with an aggregate of Three Million Dollars
($3,000,000) for property damage; and One Million Dollars ($1,000,000) per
occurrence with an aggregate of three Million Dollars ($3,000,000) for errors
and omissions. LICENSEE shall provide M.I.T. with Certificates of Insurance
evidencing the same.

      8.3 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, M.I.T., ITS
TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, AND AFFILIATES MAKE NO REPRESENTATIONS
AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT
NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING, AND THE ABSENCE OF LATENT
OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL
BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY M.I.T. THAT THE
PRACTICE BY LICENSEE OF THE LICENSE

                                      -14-
<PAGE>

GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. IN NO
EVENT SHALL M.I.T., ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES
BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER
M.I.T. SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW
OF THE POSSIBILITY OF THE FOREGOING.

                              9 - EXPORT CONTROLS

      LICENSEE acknowledges that it is subject to United States laws and
regulations controlling the export of technical data, computer software,
laboratory prototypes and other commodities (including the Arms Export Control
Act, as amended and the United States Department of Commerce Export
Administration Regulations). The transfer of such items may require a license
from the cognizant agency of the United States Government and/or written
assurances by LICENSEE that LICENSEE shall not export data or commodities to
certain foreign countries without prior approval of such agency. M.I.T. neither
represents that a license shall not be required nor that, if required, it shall
be issued.

                             10 - NON-USE OF NAMES

      LICENSEE shall not use the names or trademarks of the Massachusetts
Institute of Technology or Lincoln Laboratory, nor any adaptation thereof, nor
the names of any of their employees, in any advertising, promotional or sales
literature without prior written consent obtained from M.I.T., or said employee,
in each case, except that LICENSEE may state that it is licensed by M.I.T. under
one or more of the patents and/or applications comprising the PATENT RIGHTS.

                                      -15-
<PAGE>

                                11 - ASSIGNMENT

      This Agreement may be assigned only in connection with:

          a.  a change in name or legal status of LICENSEE that does not affect
              the nature of its business activities, or

          b.  the sale of substantially all the assets of the business to which
              the PATENT RIGHTS relates or a separable business unit related to
              a particular LICENSED PRODUCT or LICENSED SERVICE with the written
              permission of M.I.T., which shall not be unreasonably withheld, or

          c.  otherwise with the written permission of M.I.T., which shall not
              be unreasonably withheld.

                            12 - DISPUTE RESOLUTION

      12.1 Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, or in
connection with the Agreement, including any dispute relating to patent validity
or infringement, which the parties shall be unable to resolve within sixty (60)
days shall be mediated in good faith. The party raising such dispute shall
promptly advise the other party of such claim, dispute or controversy in a
writing which describes in reasonable detail the nature of such dispute. By not
later than five (5) business days after the recipient has received such notice
of dispute, each party shall have selected for itself a representative who shall
have the authority to bind such party, and shall additionally have advised the
other party in writing of the name and title of such representative. By not
later than ten (10) business days after the date of such notice of dispute, the
party against whom the dispute shall be raised shall select a mediation firm in
the Boston area and such representatives shall schedule a date with such firm
for a mediation hearing. The parties shall enter into good faith mediation and
shall share the costs equally. If the representatives of the parties have not
been able to resolve the dispute within

                                      -16-
<PAGE>

fifteen (15) business days after such mediation hearing, then any and all
claims, disputes or controversies arising under, out of, or in connection with
this Agreement, including any dispute relating to patent validity or
infringement, shall be resolved by final and binding arbitration in Boston,
Massachusetts under the rules of the American Arbitration Association, or the
Patent Arbitration Rules if applicable, then obtaining. The arbitrators shall
have no power to add to, subtract from or modify any of the terms or conditions
of this Agreement, nor to award punitive damages. Any award rendered in such
arbitration may be enforced by either party in either the courts of the
Commonwealth of Massachusetts or in the United States District Court for the
District of Massachusetts, to whose jurisdiction for such purposes M.I.T. and
LICENSEE each hereby irrevocably consents and submits.

      12.2 Notwithstanding the foregoing, nothing in this Article shall be
construed to waive any rights or timely performance of any obligations existing
under this Agreement.

                                13 - TERMINATION

      13.1 If LICENSEE shall cease to carry on its business, this Agreement
shall terminate upon notice by M.I.T.

      13.2 Should LICENSEE fail to make any payment whatsoever due and payable
to M.I.T. hereunder, M.I.T. shall have the right to terminate this Agreement
effective on thirty (30) days' notice, unless LICENSEE shall make all such
payments to M.I.T. within said thirty (30) day period. Upon the expiration of
the thirty (30) day period, if LICENSEE shall not have made all such payments to
M.I.T., the rights, privileges and license granted hereunder shall automatically
terminate.

      13.3 Upon any material breach or default of this Agreement by LICENSEE
(including, but not limited to, breach or default under Paragraph 3.3), other
than those occurrences set out in Paragraphs 13.1 and 13.2 hereinabove, which
shall always take precedence in that order over any

                                      -17-
<PAGE>

material breach or default referred to in this Paragraph 13.3, M.I.T. shall have
the right to terminate this Agreement and the rights, privileges and license
granted hereunder effective on ninety (90) days' notice to LICENSEE. Such
termination shall become automatically effective unless LICENSEE shall have
cured any such material breach or default prior to the expiration of the ninety
(90) day period.

      13.4 LICENSEE shall have the right to terminate this Agreement at any time
on six (6) months' notice to M.I.T., and upon payment of all amounts due M.I.T.
through the effective date of the termination.

      13.5 Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination; and Articles 1, 8, 9, 10, 12,
13.5, 13.6, and 15 shall survive any such termination. LICENSEE and any
sublicensee thereof may, however, after the effective date of such termination,
sell all LICENSED PRODUCTS, and complete LICENSED PRODUCTS in the process of
manufacture at the time of such termination and sell the same, provided that
LICENSEE shall make the payments to M.I.T. as required by Article 4 of this
Agreement and shall submit the reports required by Article 5 hereof.

      13.6 Upon termination of this Agreement for any reason, any sublicensee
not then in default shall have the right to seek a license from M.I.T. M.I.T.
agrees to negotiate such licenses in good faith under reasonable terms and
conditions.

                14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

      Any payments, notice or other communication pursuant to this Agreement
shall be sufficiently made or given on the date of mailing if sent to such party
by certified first class mail, return receipt requested, postage prepaid,
addressed to it at its address below or as it shall designate by written notice
given to the other party:

                                      -18-
<PAGE>

            In the case of M.I.T.:

            Director
            Technology Licensing Office
            Massachusetts Institute of Technology
            77 Massachusetts Avenue, Room E32-300
            Cambridge, Massachusetts 02139

            In the case of LICENSEE:

            President
            REPROGENESIS, INC.
            10 Sylvan Drive
            Suite 27
            St. Simons Island, GA 31522

                         15 - MISCELLANEOUS PROVISIONS

      15.1 All disputes arising out of or related to this Agreement, or the
performance, enforcement, breach or termination hereof, and any remedies
relating thereto, shall be construed, governed, interpreted and applied in
accordance with the laws of the Commonwealth of Massachusetts, U.S.A., except
that questions affecting the construction and effect of any patent shall be
determined by the law of the country in which the patent shall have been
granted.

      15.2 The parties hereto acknowledge that this Agreement sets forth the
entire Agreement and understanding of the parties hereto as to the subject
matter hereof, and shall not be subject to any change or modification except by
the execution of a written instrument signed by the parties.

      15.3 The provisions of this Agreement are severable, and in the event that
any provisions of this Agreement shall be determined to be invalid or
unenforceable under any controlling body of the law, such invalidity or
unenforceability shall not in any way affect the validity or enforceability of
the remaining provisions hereof.

      15.4 LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United
States with all applicable United States patent numbers. All LICENSED PRODUCTS
shipped to or

                                      -19-
<PAGE>

sold in other countries shall be marked in such a manner as to conform with the
patent laws and practice of the country of manufacture or sale.

      15.5 The failure of either party to assert a right hereunder or to insist
upon compliance with any term or condition of this Agreement shall not
constitute a waiver of that right or excuse a similar subsequent failure to
perform any such term or condition by the other party.

      IN WITNESS WHEREOF, the parties have duly executed this Agreement the day
and year set forth below.

MASSACHUSETTS INSTITUTE OF
   TECHNOLOGY                              REPROGENESIS, INC.

By /s/ Lita Nelsen                         By /s/ A. Bruce Parker
   -------------------------------------      ---------------------------------

Name Lita Nelsen                           Name   A. Bruce Parker
    ------------------------------------       --------------------------------

Title Director Technology License Office   Title  President
     -----------------------------------        -------------------------------

Date  11-5-96                              Date   11-7-96
    ------------------------------------       --------------------------------

                                      -20-
<PAGE>

                                   APPENDIX A

                       PATENT RIGHTS on the EFFECTIVE DATE

  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

UNITED STATES PATENT RIGHTS
M.I.T. Case No. 4521
"Controlled Release Systems Containing Heparin and Growth Factors"
By Elazer Edelman, Robert Langer, Michael Klagsburn and Edith Mathiowitz
U.S. Patent No. 5,100,668
Issued March 31, 1992

M.I.T. Case No. [**]
Title: "[**]"
By Elazer Edelman, Aruna Natha and Matthew Nugent
U.S. Serial No. [**]
Filed on [**]

FOREIGN PATENT RIGHTS

M.I.T. Case No. [**]
PCT Serial No. [**] Filed on [**]

                                      -21-

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