Document:

exv10w1

 

EXHIBIT 10.1

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS *. A
COMPLETE, UNREDACTED VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

DATED
1st

March 2005

(1) BIOTECHNOLOGY
RESEARCH CORPORATION LIMITED

 (2) GERON CORPORATION

_________________________________________

JOINT VENTURE AGREEMENT

_________________________________________

Baker & Mc. Kenzie

14th Floor Hutchison House

Hong Kong

Telephone: (852) 2846-1888

Fax: (852) 2846-0476

 

 

THIS AGREEMENT is made on the 1st day of March 2005 (the “Effective Date”)

BETWEEN:

	(1)  	BIOTECHNOLOGY RESEARCH CORPORATION LIMITED, a company incorporated under the laws of
Hong Kong whose registered office is at The Hong Kong University of Science and
Technology, Clear Water Bay, Kowloon, Hong Kong (“BRC”).

	(2)  	GERON CORPORATION, a company incorporated under the laws of the state of Delaware
whose registered office is at 230 Constitution Drive, Menlo Park, California 94025, United
States of America ( “Geron”).

RECITALS:

	(A)  	BRC and Geron wish to establish a joint venture company in Hong Kong (the “Company”),
for the purposes of carrying on the Business (as defined below).
The primary objective of the Company shall be to be commercially
successful. The secondary objective of the Company shall be to promote and grow the biotechnology
industry and drug development in Hong Kong.
	 
	(B)  	The details of the Company immediately before Completion (as defined below) are set
out in Schedule 1.
	 
	(C)  	The Shareholders now wish to invest in and operate the Company as a joint venture for
the purposes and on the terms set out below.
	 
	(D)  	Each of the Parties enters into this Agreement in consideration of each of the other
Parties entering into this Agreement and accepting the terms, undertakings
and covenants contained herein.

TERMS AGREED:

	1.  	Definitions and Interpretation

	1.1  	In this Agreement and the Recitals, where the context so admits, the following words
and expressions shall have the following meanings:

	 	 	 
	“Affiliated Company”

	 	means in relation to any company, any
Associated Company of such company and
any company in which such company or any
holding company of such company holds or
controls directly or indirectly not less than
20% of the issued share capital;

2

 

	 	 	 
	“Agreed Accounting Policies”

	 	means the accounting policies as set out in
Schedule 6, with such amendments as may
from time to time be agreed in writing by
the Shareholders;
	 
	 	 
	“Ancillary Agreements”

	 	means the BRC Licence Agreement, the
BRC Services Agreement, the Geron
Licence Agreement and the Geron Services
Agreement;
	 
	 	 
	“Articles of Association”

	 	means the Articles of Association of the
Company, a copy of which is attached as
Schedule 3 and any reference to an “Article”
shall be a reference to that article of the
Articles of Association;
	 
	 	 
	“A Share”

	 	means a class A share of US$1 par value in
the share capital of the Company having the
rights and benefits and being subject to the
restrictions set out in the Articles of
Association, which initially shall have the
same rights, benefits and restrictions as a B
Share (except as to the rights of conversion
and redemption that attach only to B
Shares);
	 
	 	 
	“Associated Company”

	 	means, in relation to any company, any
subsidiary or holding company of that
company or any other subsidiary of such
holding company (and for this purpose,
HKUST shall be deemed to be a holding
company of BRC until such time as when
BRC ceases to be a subsidiary of HKUST);
	 
	 	 
	“Background IP”

	 	means present or future Intellectual Property
other than the Existing IP, a licence under
which is necessary for the development
and/or commercialisation of products in the
Field of Use;
	 
	 	 
	“Board”

	 	means the Company’s board of directors;

3

 

	 	 	 
	“BRC Background IP”

	 	means Background IP owned by or licensed
to BRC or HKUST or any Affiliated
Companies Controlled by BRC or HKUST,
under which BRC or such Affiliated
Company of BRC or HKUST is legally
permitted to grant licences;
	 
	 	 
	“BRC Director”

	 	means a Director appointed by BRC
pursuant to Clause 5.1;
	 
	 	 
	“BRC Existing IP”

	 	means Existing IP owned by or licensed to
BRC or HKUST or any Affiliated
Companies Controlled by BRC or HKUST
under which BRC, HKUST or such
Affiliated Company of BRC or HKUST is
legally permitted to grant licences;
	 
	 	 
	“BRC Licence Agreement”

	 	means the licence agreement to be entered
into between the Company and BRC in the
form attached hereto as Schedule 8;
	 
	 	 
	“BRC Services Agreement”

	 	means the services agreement to be entered
into between the Company and BRC in the
form attached hereto as Schedule 9;
	 
	 	 
	“B Share”

	 	means a class B Share of US$1 par value in
the share capital of the Company having the
rights and benefits and being subject to the
restrictions set out in the Articles of
Association, which initially shall have the
same rights, benefits and restrictions as an A
Share (except as to the rights of conversion
and redemption that attach only to B
Shares);
	 
	 	 
	“Business”

	 	means the business of the Company as
described in Clause 4 and such other
business as the Shareholders may agree from
time to time (in accordance with Clause 6.1)
should be carried on by the Company;
	 
	 	 
	“Business Day”

	 	means a day (other than a Saturday or a
Sunday) on which banks are open for
business in both Hong Kong and California;

4

 

	 	 	 
	“Collaboration Inventions”

	 	means any and all inventions, discoveries,
improvements, modifications, innovations,
or Intellectual Property (including without
limitation materials and rights therein),
whether or not patentable, that are made,
created, developed, discovered, conceived,
or reduced to practice (i) by an employee of
the Company or of either BRC or Geron or
any of the Affiliated Companies Controlled
by either BRC or Geron in the course of
activities in the Collaboration Program, or
(ii) by a Third Party or an Affiliated
Company of either BRC or Geron which is
not Controlled by either BRC or Geron in
the performance of a contract in support of
the Collaboration Program (but only to the
extent that the Company, BRC or Geron or
their relevant Affiliated Companies has
rights in such invention);
	 
	 	 
	“Collaboration Product”

	 	means any product that is described in, is
claimed in, incorporates or contains any
Collaboration Technology;
	 
	 	 
	“Collaboration Program”

	 	means the research, development,
commercialization, and other activities of
the Parties under this Agreement;
	 
	 	 
	“Collaboration Technology”

	 	means Background IP, Existing IP and
Collaboration Inventions;
	 
	 	 
	“Companies Ordinance”

	 	means the Companies Ordinance (Chapter
32 of the Laws of Hong Kong);
	 
	 	 
	“company”

	 	means any company or body corporate
wherever incorporated;
	 
	 	 
	“Completion”

	 	means completion of the matters referred to
in Schedule 2;
	 
	 	 
	“Completion Date”

	 	means a date agreed in writing by the Parties
for Completion to take place;

5

 

	 	 	 
	“Control”

	 	a person or persons (each a “controller”)
shall be taken to have Control of another
person (“the controlled person”) if one or
more of the controllers, whether by law or in
fact, has, or is entitled to acquire, the right or
the power to secure directly or indirectly
that the controlled person’s affairs are
conducted in accordance with the wishes of
the controller and in particular, but without
prejudice to the generality of the foregoing,
if one or more of the controllers holds:
	 
	 	 

	 	 	 	 	 
	

	 	(i)
	 	the greater part of the share capital of
the controlled person or of the voting
rights attaching to the controlled
person’s shares; or
	 
	 	 	 	 
	

	 	(ii)
	 	the power to control the composition
of any board of directors or
governing body of the controlled
person;
	 
	 	 	 	 

	 	 	 
	

	 	For the purposes of the foregoing and
without limitation there shall be attributed to
any controller:

	 	 	 	 	 
	

	 	(i)
	 	any rights or powers which another
person possesses on his behalf or is
or may be required to exercise on his
direction or behalf; and
	 
	 	 	 	 
	

	 	(ii)
	 	all rights and powers of any body
corporate of which any controller
alone or together with another or
other controllers has control or of
any two or more such bodies
corporate;

	 	 	 
	

	 	and a “change in Control” shall be deemed
to have occurred if any person having
previously controlled the relevant person,
ceases to do so, or if any person acquires
Control of the relevant person;

6

 

	 	 	 
	“Deadlock”

	 	means any situation which has persisted for
not less than 90 days in which, by virtue of a
substantial disagreement in good faith
amongst the Shareholders, whether at Board
or Shareholder level or both, and which is
manifested by the inability of the Board (or
the Shareholders, as the case may be) at
three (3) consecutive regular or special
meetings to approve an action, the failure to
approve which:

	 	 	 	 	 
	

	 	 	 	(i) makes it impossible or
impracticable for the Company to
conduct the Business, or
	 
	 	 	 	 
	

	 	 	 	(ii) makes it impossible or
impracticable for the Company to
obtain additional capital necessary to
sustain the operations of the
Company, or
	 
	 	 	 	 
	

	 	 	 	(iii) makes it impossible or
impracticable for the Company to
comply with its material obligations
under any material agreements under
which it is bound.

	 	 	 
	

	 	The Deadlock shall be deemed to have
arisen upon written notice of Deadlock
given by one Shareholder to the other(s) no
earlier than the expiry of the 90-day period
referred to above;
	 
	 	 
	“Deed of Adherence”

	 	means a deed in the form attached as
Schedule 4 pursuant to which a transferee or
allottee of Shares agrees to be bound by all
the terms of this Agreement as if it had been
a signatory;
	 
	 	 
	“Default Notice”

	 	means the written notice given by the non-
defaulting Shareholder to the Defaulter of
the occurrence of an Event of Default;

7

 

	 	 	 
	“Defaulter”

	 	means with respect to an Event of Default,
the Shareholder who has committed or
suffered the Event of Default;
	 
	 	 
	“Derivative Compound”

	 	means any molecule or substance derived by
or on behalf of the Company from any
Existing Compound, including, without
limitation, any modification, purification,
analog, or synthetic reproduction of any
Existing Compound;
	 
	 	 
	“Director”

	 	means any director of the Company from
time to time;
	 
	 	 
	“Effective Date”

	 	means the date of this Joint Venture
Agreement as specified on the first page
hereof;
	 
	 	 
	“Event of Default”

	 	means the occurrence of any of the
following:
	 
	 	 
	

	 	(i) if (A) a proceeding is commenced in a
court of competent jurisdiction and is not
dismissed within 30 days, or an order is
made by a court of competent jurisdiction or
an effective resolution is passed, for the
winding-up, insolvency, administration,
reorganisation, reconstruction, dissolution or
bankruptcy of the Defaulter (in each case,
other than in the course of a bona fide
reorganisation or restructuring whilst
solvent, including without limitation by
merger, consolidation, or sale of assets) or
for the appointment of a liquidator, receiver,
administrator, trustee or similar officer of
the Defaulter or of all or substantially all of
its business or assets; (B) the Defaulter stops
or suspends payments to its creditors
generally or is unable or admits its inability
to pay its debts as they fall due or enters into
any composition or other arrangement with
its creditors or is declared or becomes
bankrupt or insolvent; or (C) a creditor takes
possession of all or substantially all of the

8

 

	 	 	 
	

	 	business or assets of the Defaulter or any
execution or other legal process is enforced
against all or substantially all of the business
or assets of the Defaulter and is not
discharged within 30 days;
	 
	 	 
	

	 	(ii) if the Defaulter is in material breach of
its obligations hereunder (or under any of
the Ancillary Agreements) and such breach,
if capable of remedy, has not been remedied
to the reasonable satisfaction of the other
Shareholder (or of the Company, in the case
of the Ancillary Agreements) at the expiry
of 60 days following receipt by the
Defaulter of written notice from the non-
defaulting Shareholder specifying the breach
and reasonably indicating the steps required
to be taken to remedy the failure;
	 
	 	 
	

	 	(iii) if the Defaulter ceases to carry on its
business or any substantial part thereof, or
disposes of, or any governmental or other
authority expropriates, all or substantially all
of its business or assets, provided that this
shall not apply to a bona fide reorganisation
or restructuring of the Defaulter whilst
solvent (including without limitation by
merger or consolidation or sale of assets); or

	 
	 	 
	

	 	
(iv) if the Defaulter disagrees with the other
Shareholder in bad faith in order to create a
Deadlock, and either (a) gives a written
notice of Deadlock to the other Shareholder
based on such bad faith disagreement, or (b)
persists in such bad faith disagreement for
60 days after written notice by the other
Shareholder that such other Shareholder
believes the Defaulter’s disagreement is in
bad faith;
	 
	 	 
	“Existing Compounds”

	 	means the compounds described in Schedule
12;

9

 

	 	 	 
	“Existing IP”

	 	means the Intellectual Property that exists on
the Effective Date to the extent it is directed
to TA or TA Compounds;
	 
	 	 
	“Expert”

	 	has the meaning given to it in Clause 19.1;
	 
	 	 
	“Field of Use”

	 	means the use of TA for Human
Therapeutics;
	 
	 	 
	“Funding Schedule”

	 	means the funding schedule in Schedule 7
which sets out the capital contributions to be
made by each of BRC and Geron to the
Company and the timing of such
contributions;
	 
	 	 
	“Geron Background IP”

	 	means Background IP owned by or licensed
to Geron or any of the Affiliated Companies
Controlled by Geron, under which Geron or
such Affiliated Company is legally
permitted to grant licences or sublicences (as
the case may be);
	 
	 	 
	“Geron Director”

	 	means a Director appointed by Geron
pursuant to Clause 5.1;
	 
	 	 
	“Geron Existing IP”

	 	means Existing IP owned by or licensed to
Geron or any of the Affiliated Companies
Controlled by Geron, under which Geron or
such Affiliated Company is legally
permitted to grant licences or sublicences (as
the case may be);
	 
	 	 
	“Geron Licence Agreement”

	 	means the licence agreement dated as of the
date hereof between the Company and
Geron in the form attached hereto as
Schedule 10;
	 
	 	 
	“Geron Services Agreement”

	 	means the services agreement dated as of the
date hereof between the Company and
Geron in the form attached hereto as
Schedule 11;
	 
	 	 
	“HKUST”

	 	means The Hong Kong University of
Science and Technology;

10

 

	 	 	 
	“holding company”

	 	has the meaning attributed to it in section 2
of the Companies Ordinance;
	 
	 	 
	“Hong Kong”

	 	means the Hong Kong Special
Administrative Region of the People’s
Republic of China;
	 
	 	 
	“Human Therapeutics”

	 	means any therapeutic or prophylactic
products or applications of products the
marketing, use or sale of which in the U. S.
requires approval by the U.S. Food and
Drug Administration of any such product as
a therapeutic or prophylactic drug, biologic
or combination product;
	 
	 	 
	“Intellectual Property”

	 	means patents, registered designs, design
rights, knowhow, trade marks, service
marks, copyrights, trade secrets and other
confidential information, Internet domain
names of any level, design rights, rights in
circuit layouts, topography rights, business
names, registrations of, applications to
register (including without limitation patent
applications) and rights to apply for
registration of any of the aforesaid items,
rights in the nature of any of the aforesaid
items in any country, rights in the nature of
unfair competition rights and rights to sue
for passing off;
	 
	 	 
	“Joint Operating Committee”

	 	has the meaning given to it in Clause 5.11;
	 
	 	 
	“Licensed Geron Products”

	 	means any and all products within the Field
of Use that are sold by Geron or its
sublicensees and (a) contain or incorporate
any Existing Compound or Derivative
Compound, or (b) are created, developed, or
result from the use of any Existing
Compound or Derivative Compound, or
further purification thereof, or from the use
of any Geron Trade Secret (as defined in the
Geron Licence Agreement);

11

 

	 	 	 
	“Net”

	 	means, in relation to revenue, gross revenue
received by the seller, less any applicable
sales and value added taxes but excluding
income tax and in the case of revenue from
sales of products less (a) government-
imposed duties, (b) trade or cash discounts
and rebates, and (c) shipping, insurance and
freight costs borne by the seller and
reflected in the relevant invoice;
	 
	 	 
	“Operations Plan”

	 	means the most recent operations plan of the
Company approved by the Shareholders in
accordance with Clause 14.3, with the first
operations plan of the Company to be
prepared and presented to the Shareholders
for approval before the commencement date
of Phase I;
	 
	 	 
	“Parties”

	 	means the parties to this Agreement and
“Party” means any one of them including
any other person who becomes a
Shareholder of the Company and who agrees
to be bound by the provisions of this
Agreement by executing a Deed of
Adherence;
	 
	 	 
	“Phase I”

	 	means the period commencing on the date of
commencement of work under the Phase I
Work Plan and ending on the date of the
completion of the Phase I Work Plan;
	 
	 	 
	“Phase I Work Plan”

	 	means the work plan for Phase I agreed
between BRC and Geron attached hereto as
Schedule 13 as such work plan may be
modified pursuant to this Agreement;
	 
	 	 
	“Phase II”

	 	means the period commencing on the date of
commencement of work under the Phase II
Work Plan and ending on the date of the
completion of the Phase II Work Plan;
	 
	 	 
	“Phase II Work Plan”

	 	means the preliminary draft of the work plan
for Phase II agreed between BRC and Geron
attached hereto as Schedule 14, as such

12

 

	 	 	 
	

	 	work plan may be modified pursuant to this
Agreement;
	 
	 	 
	“PRC”

	 	means the People’s Republic of China (but
excluding, for the purposes of this
Agreement, Hong Kong, Macau and
Taiwan);
	 
	 	 
	“Prescribed Price”

	 	means the price per Share (as of the date of
the written notice specified under either
Clause 8.2, Clause 12.3.1 or Clause 12.4.1)
(i) as agreed by the Shareholders, or (ii) in
the event the Shareholders do not agree on
the Prescribed Price per Share within 30
days of the relevant written notice, as
determined by an Expert in accordance with
Clause 19 below;
	 
	 	 
	“Prospective Purchaser”

	 	has the meaning given to it in paragraph (C)
of Schedule 5;
	 
	 	 
	“Purchase Notice”

	 	has the meaning given to it in paragraph (E)
of Schedule 5;
	 
	 	 
	“Recipient”

	 	has the meaning given to it in paragraph (C)
of Schedule 5;
	 
	 	 
	“Relevant Percentage”

	 	means, in relation to a Shareholder, a
fraction, the numerator of which is the total
number of Shares held by that Shareholder
at the time in question and the denominator
of which is the total number of Shares in
issue at that time;
	 
	 	 
	“Relevant Shares”

	 	has the meaning given to it in paragraph (C)
of Schedule 5;
	 
	 	 
	“SIAC”

	 	means the Singapore International
Arbitration Centre;
	 
	 	 
	“Share”

	 	means any share (of whatever class or
denomination) in the share capital from time
to time of the Company;

13

 

	 	 	 
	“Shareholder”

	 	means any registered holder of one or more
Shares from time to time;
	 
	 	 
	“subsidiary”

	 	has the meaning attributed to it in section 2
of the Companies Ordinance;
	 
	 	 
	“TA”

	 	means directly or indirectly inducing the
expression, or increasing the level of
expression, or otherwise increasing the
activity of endogenous telomerase in a cell
or organism;
	 
	 	 
	“TA Compounds”

	 	means compounds that induce TA, including
the Existing Compounds;
	 
	 	 
	“Third Party”

	 	means any person other than BRC, Geron or
any of their Affiliated Companies;
	 
	 	 
	“Third Party Interest”

	 	means and includes any interest or equity of
any person (including any right to acquire,
option or right of pre-emption), voting
arrangement, mortgage, charge, pledge, bill
of sale, lien, deposit, hypothecation,
assignment or any other encumbrance,
priority or security interest or arrangement
or interest under any contract or trust or any
other Third Party interest of whatsoever
nature over or in the relevant property;
	 
	 	 
	“Transfer Notice”

	 	has the meaning given to it in paragraph (C)
of Schedule 5;
	 
	 	 
	“Transferor”

	 	has the meaning given to it in paragraph (C)
of Schedule 5;
	 
	 	 
	“U.S.”

	 	means the United States of America; and
	 
	 	 
	“US$”

	 	means United States dollars, the lawful
currency of the United States of America.

	1.2  	Save where the context otherwise requires words and phrases the definitions of which
are contained or referred to in the Companies Ordinance shall be construed as having the
meaning thereby attributed to them.

14

 

	1.3  	Any references, express or implied, to statutes or statutory provisions shall be
construed as references to those statutes or provisions as respectively amended or
re-enacted or as their application is modified from time to time by other provisions
(whether before or after the date hereof) and shall include any statutes or provisions of
which they are re-enactments (whether with or without modification) and any orders,
regulations, instruments or other subordinate legislation under the relevant statute or
statutory provision. References to sections of consolidating legislation shall wherever
necessary or appropriate in the context be construed as including references to the
sections of the previous legislation from which the consolidating legislation has been
prepared.
	 
	1.4  	References to any document (including this Agreement) are references to that document
as amended, consolidated, supplemented, novated or replaced from time to time;
	 
	1.5  	References in this Agreement to recitals, clauses, paragraphs and schedules are to
clauses and paragraphs in and recitals and schedules to this Agreement (unless the context
otherwise requires). The Recitals and Schedules to this Agreement shall be deemed to form
part of this Agreement.
	 
	1.6  	Headings are inserted for convenience only and shall not affect the construction of
this Agreement.
	 
	1.7  	References to the Shareholders and the Company include their respective successors
and permitted assigns.
	 
	1.8  	References to “persons” shall include any individual, any form of body corporate,
unincorporated association, firm, partnership, joint venture,
consortium, association, organisation or trust (in each case whether or not having a
separate legal personality).
	 
	1.9  	References to writing shall include any methods of reproducing words in a legible and
non-transitory form.
	 
	1.10  	The masculine gender shall include the feminine and neuter and the singular number
shall include the plural and vice versa.
	 
	1.11  	A document expressed to be “ in the approved terms ” means a document the terms of
which have been approved by or on behalf of the Shareholders and a copy of which has been
signed for the purposes of identification by or on behalf of the Shareholders.
	 
	1.12  	In construing this Agreement:

15

 

	 	1.12.1  	the rule known as the ejusdem generis rule shall not apply and, accordingly,
general words introduced by the word “other” shall not be given a restrictive
meaning by reason of the fact that they are preceded by words indicating a
particular class of acts, matters or things; and
	 
	 	1.12.2  	general words shall not be given a restrictive meaning by reason of the fact
that they are followed by particular examples intended to be embraced by the
general words.

	2.  	Conditions
	 
	2.1  	This Agreement is conditional upon:

	 	2.1.1  	the passing by the directors of BRC and the directors of Geron of a
resolution approving this Agreement;
	 
	 	2.1.2  	all necessary approvals and consents to the execution of this
Agreement and the performance of the transactions hereby contemplated being
obtained;
	 
	 	2.1.3  	BRC entering into the BRC Services Agreement;
	 
	 	2.1.4  	HKUST and BRC entering into the BRC Licence Agreement;
	 
	 	2.1.5  	Geron entering into the Geron Licence Agreement and the Geron
Services Agreement; and
	 
	 	2.1.6  	the Company having been duly incorporated with the details set out
in Schedule 1.

	2.2  	BRC and Geron shall use all reasonable endeavours to ensure that the conditions set
out in Clause 2.1 shall be fulfilled by the date referred to in Clause 2.3.
	 
	2.3  	If the conditions set out in Clause 2.1 shall not have been fulfilled or waived in
writing by BRC and Geron within 30 days after the Effective Date, this Agreement (other
than Clauses 1, 17, 21, 25, 29, 30, 31 and 34) shall, subject to the liability of either
Shareholder to the other in respect of any breaches of the terms hereof, including the
obligations under Clause 2.2 antecedent thereto, be null and void and of no effect.
	 
	3.  	Subscription for Shares and Completion
	 
	3.1  	BRC and Geron shall make their respective capital contributions to the Company in
accordance with the provisions of the Funding Schedule.

16

 

	3.2  	Completion, subject to the satisfaction or waiver of the provisions of Clause 2,
shall take place on the Completion Date at the time and place agreed by the Parties when
all (but not some only) of the events described in Schedule 2 shall be
performed.
	 
	3.3  	If, in any respect, any of the provisions of Schedule 2 are not complied with on the
Completion Date by any of the Parties, the remaining Party may at its option defer
Completion until 1 April 2005 (and so that the provisions of this Clause shall apply to
Completion as so deferred). Unless in such circumstances the remaining Party so defers
Completion, this Agreement shall terminate on the Completion Date, but without prejudice
to any claim which any Party may have against any other Party for breach of contract.
	 
	4.  	The Business
	 
	4.1  	The Parties shall procure that the Business shall be the carrying on of the following
activities: to conduct research, development and commercialisation of Intellectual
Property and technology in the Field of Use, including without limitation the development
and commercialisation of the Collaboration Products.
	 
	4.2  	The Business shall be conducted during Phase I and Phase II in accordance with the
Phase I Work Plan and the Phase II Work Plan respectively. The first Operations Plan shall
be prepared and presented to the Shareholders for approval before the commencement date of
Phase I. After the end of Phase II, the Business shall be conducted in accordance with the
business plan approved by the Shareholders from time to time. Each of the Parties shall
use its respective reasonable endeavours, without being required to incur any financial
obligation (other than as expressly set out in this Agreement), to promote the interests
of the Company, to ensure that the Company conducts the Business with energy and
efficiency and to facilitate the promotion of the Business. Each Shareholder hereby
covenants with the other Shareholder that it shall at all times act in good faith towards
the other in connection with this Agreement and in relation to the conduct of the Business
and the interests of the Company, and further, shall act in what it reasonably believes to
be the best interest of the Company and not act contrary to what it reasonably believes to
be the interests of the Company or the Company’s conduct of the Business.
	 
	5.  	Directors
	 
	5.1  	The maximum number of Directors shall be six, unless otherwise agreed in writing by
the Shareholders. For so long as BRC and Geron each own 50% of the total issued Shares,
BRC shall be entitled to appoint and at any time remove or substitute three BRC Directors
and Geron shall be entitled to appoint and at any

17

 

	   	time remove or substitute three Geron Directors. At such times as a Shareholder owns (i) at
least 10% but less than 25% of the total issued Shares, such Shareholder shall be entitled
to appoint and at any time remove or substitute one Director; (ii) at least 25% but not
more than 40% of the total issued Shares, such Shareholder shall be entitled to appoint and
at any time remove or substitute two Directors; (iii) more than 40% but less than 60% of
the total issued Shares, such Shareholder shall be entitled to appoint and at any time
remove or substitute three Directors; (iv) at least 60% but not more than 75% of the total
issued Shares, such Shareholder shall be entitled to appoint and at any time remove or
substitute four Directors; (v) more than 75% but not more than 90% of the total issued
Shares, such Shareholder shall be entitled to appoint and at any time remove or substitute
five Directors; and (vi) more than 90% of the total issued Shares, such
Shareholder shall be entitled to appoint and at any time remove or substitute six
Directors.
	 
	5.2  	A Shareholder may appoint or remove a Director by depositing written notice at the
Company’s registered office and by sending a copy of the same to the other Shareholder.
	 
	5.3  	In the event that any Shareholder disposes of all its Shares, such Shareholder shall
immediately procure the resignation of all the Directors at the time holding office by
reason of their nomination by such Shareholder. In the event that the Relevant Percentage
of a Shareholder falls below any of the relevant shareholding thresholds set out in Clause
5.1, such Shareholder shall comply with Clause 5.1 and immediately procure the resignation
of the relevant number of Director(s) at the time holding office by reason of their
nomination by such Shareholder.
	 
	5.4  	Any Shareholder removing a Director in accordance with this Clause 5 and the relevant
provisions of the Articles of Association shall be responsible for and shall hold harmless
the other Shareholder and the Company from and against any claim for damages, loss of
office, wrongful dismissal or otherwise arising out of such removal and any reasonable
costs and expenses incurred in defending such proceedings including, but without prejudice
to the generality of the foregoing, legal costs actually incurred.
	 
	5.5  	The Board shall meet at least once every financial quarter and as required in
accordance with and subject to the Articles of Association. At each meeting of the Board
and in respect of each resolution proposed to the Board each Director shall have one vote.
Subject to Clause 5.10, Clause 5.11 and Clause 6.1, all resolutions of the Board shall be
passed by simple majority vote.
	 
	5.6  	Unless waived by a majority of the Directors, not less than seven days’ notice, which
period of notice shall be exclusive of the day on which the notice is served or deemed to
be served and the day for which the meeting is called, of all

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	   	meetings of the Board shall be given to each Director and shall be accompanied by an agenda
of the business to be transacted at such meeting together with all papers to be circulated
or presented to the same. Within no more than ten days after each such meeting, a certified
copy of the minutes of that meeting shall be delivered to each Director.
	 
	5.7  	The chairman of the Board (the “Chairman”) shall at all times be a Director, with
each of Geron and BRC rotating to have the right to appoint and remove the Chairman every
twelve months. The first Chairman shall be appointed by Geron. In the case of an equality of votes at any meeting of the Board or of the Shareholders, the
Chairman shall not be entitled to a second or casting vote.
	 
	5.8  	No meeting of the Board may proceed to business nor transact any business unless a
quorum is present at the start of and throughout such meeting. A quorum of the Board shall
be two BRC Directors and two Geron Directors present in person or represented by an
alternate. In the event that a quorum of the Directors is not so present at the start of
and throughout a duly convened Board meeting, that meeting shall be adjourned to the same
time and place on the same day in the next week or as otherwise agreed by a simple
majority of the Directors and a quorum at such adjourned meeting shall consist of two BRC
Directors and two Geron Directors present in person or represented by an alternate. In the
event that
a quorum of the Directors is not so present at the start of and throughout such duly
adjourned Board meeting, that meeting shall be further adjourned to the same time and place
on the same day in the next week or as otherwise agreed by a simple majority of the
Directors and a quorum at such adjourned meeting shall consist of any three Directors
present in person or represented by an alternate.
	 
	5.9  	Each Director may in accordance with and subject to the Articles of Association,
appoint an alternate to represent him at meetings of the Board which he is unable to
attend. Such alternate shall be entitled to attend and vote at meetings of the Board and
to be counted in determining whether a quorum is present. Each alternate director shall
have one vote for every Director whom he represents in addition to any vote of his own.
	 
	5.10  	Subject only to Clause 6.1, a resolution of the Board shall be validly passed if the
text of the resolution has been signed or approved by each Director or his alternate in
accordance with the Articles. Such resolution shall be sent to each Director and shall
require a response within a period specified in the notice of such resolution, being not
less than seven days after its date of despatch and no resolution shall take effect until
the expiry of such period unless a majority of the Board has waived this requirement.
	 
	5.11  	Subject only to Clause 6, the business of the Company shall be managed by the Board
which may delegate any of its powers, including the day-to-day running of

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	   	the Business, to a joint operating committee (the “Joint Operating Committee”) as described
in Clause 7. The Joint Operating Committee shall, in the exercise of the powers so
delegated, conform to any regulations that may be imposed on it by the Board. If the Board
so authorises or requests, auditors, consultants, advisers and employees shall be permitted
to attend and speak at meetings of the Board, but not to vote.
	 
	5.12  	Directors may participate in a meeting of the Board by means of telephone conference,
video conferencing or similar communications equipment whereby all persons participating
in the meeting can hear each other and such participation shall constitute presence in
person.
	 
	5.13  	Each Shareholder hereby consents to receiving not less than seven days’ notice (or
such shorter notice as consented to by the Shareholders in writing) of each Shareholders’
meeting, which period of notice shall be exclusive of the day on which the notice is
served or deemed to be served and the day for which the meeting is called and each such
notice shall specify the business to be transacted thereat. The quorum for Shareholders’
meetings shall be at least one duly authorised representative of BRC and at least one duly
authorised representative of Geron, with each Share having one vote. A quorum must be
present at the beginning of and throughout each meeting. In the event that a quorum of
Shareholders is not present at the start of and throughout a duly convened Shareholders’
meeting, that meeting shall be adjourned to the same time and place on the same day in the
next week and a quorum at such adjourned meeting shall consist of at least one duly
authorised representative of BRC and at least one duly authorised representative of Geron,
with each Share having one vote. In the event that a quorum of Shareholders is not present
at the start of and throughout such duly adjourned Shareholders’ meeting, that meeting
shall be further adjourned to
the same time and place on the same day in the next week and a quorum at such adjourned
meeting shall consist of the duly authorised representative of any Shareholder present at
such adjourned meeting. The Chairman shall preside as chairman at every Shareholders’
meeting. Questions arising at any Shareholders’ meeting shall be decided by a simple
majority vote of those present or participating via other permitted means and entitled to
vote, except where a greater majority is required by the Articles of Association, any
agreement between the Shareholders or by any relevant law and in the case of an equality of
votes, the Chairman shall not have a casting vote. Shareholders may participate in a
Shareholders’ meeting by means of telephone conference, video conferencing or similar
communications equipment whereby all persons participating in the meeting can hear each
other and such participation shall constitute presence in person or by proxy or
representative. Shareholders’ resolutions may be passed by circular resolutions signed by
or on behalf of all the Shareholders.

20

 

	5.14  	Each Shareholder shall exercise or refrain from exercising any voting rights or other
powers of control so as to ensure the passing of any and every resolution necessary or
desirable to procure that the affairs of the Company are conducted in accordance with the
provisions of this Agreement and otherwise to give full effect to the provisions of this
Agreement and likewise to ensure that no resolution is passed which does not accord with
such provisions.
	 
	5.15  	The remuneration (if any) of the Directors shall be determined by, and subject to the
unanimous approval of, the Shareholders.
	 
	6.  	Prior Approval Required for Certain Board and Shareholders Actions
	 
	6.1  	Following Completion and save as otherwise provided in this Agreement, the
Shareholders shall exercise all voting rights and other powers of control available to
them in relation to the Company to procure that the Company and/or the Board shall not,
without the prior written approval of BRC and Geron:

	 	6.1.1  	make or agree to make any change to the authorised or issued share
capital from time to time of the Company or grant any option over or interest in,
or issue any instrument carrying rights of conversion into, any other security or
share of the Company or redeem or purchase any of its own shares or effect any
other re-organisation of its share capital;
	 
	 	6.1.2  	permit the registration of any person as a shareholder (whether by
way of subscription or transfer) other than as permitted by this Agreement;
	 
	 	6.1.3  	make any change to the Company’s Memorandum or Articles of
Association;
	 
	 	6.1.4  	create or, where appropriate, issue any fixed or floating charge,
debenture, lien (other than a lien arising by operation of law or in the ordinary
course of business) or other mortgage, encumbrance or security over the whole or
any part of the undertaking, business, property or assets (tangible or intangible)
of the Company, except for the purpose of securing the indebtedness of the Company
to its bankers for sums borrowed in the ordinary and proper course of the
Business;
	 
	 	6.1.5  	permit the Company to incur any indebtedness in excess of that
provided in the Operations Plan;
	 
	 	6.1.6  	make any loan or advance or give any credit (other than normal
trade credit) to any person;

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	 	6.1.7  	give any guarantee, indemnity or security to secure the liabilities or obligations
of any person;
	 
	 	6.1.8  	except as otherwise specifically provided for in the Operations Plan,
(i) sell, transfer, lease, assign, dispose of or part with control of any
interest in all or any material part of the undertaking, business, property or assets
(tangible or intangible) of the Company (whether by a single transaction or a series of
transactions) or contract to do so or
(ii) acquire or contract to acquire any business, property or assets
(tangible or intangible) or any interest therein which would, following such acquisition
constitute a material part of the business, property or assets of the Company;
	 
	 	6.1.9  	set up or close down any branch or office or create, acquire or dispose of any
subsidiary or of any shares or any security or any interest in any subsidiary;
	 
	 	6.1.10  	take or agree to take any leasehold interest in, or licence over, any land;
	 
	 	6.1.11  	enter into any partnership or profit sharing agreement or joint venture with any person;
	 
	 	6.1.12  	approve the semi-annual operations plan, budget and capital expenditure programme or
make any substantial alteration to the Operations Plan including any material change to
the nature and/or geographical area of the Business or take or ratify any action
materially in conflict with the Operations Plan;
	 
	 	6.1.13  	acquire, purchase or subscribe for any shares, loan stock, debentures, mortgages or
securities (or any interest therein) or any other interest in any person;
	 
	 	6.1.14  	grant any power of attorney, delegate directors’ powers (other than as provided in this
Agreement) or fail to comply with any guidelines or directives issued by the Board which
are consistent with the remainder of this Agreement;
	 
	 	6.1.15  	enter into, vary or terminate any contract or transaction for the disposal or licensing
to any other person of any rights in respect of Collaboration Inventions or whereby any
person would or might receive remuneration calculated by reference to its income or
profits;

22

 

	 	6.1.16  	make any composition or arrangement with its creditors, move for insolvency,
receivership or administration or do or permit or suffer to be done any act or thing
whereby the Company may be wound up (whether voluntarily or compulsorily), save as
otherwise expressly provided for in this Agreement;
	 
	 	6.1.17  	declare or make any dividend or other distribution in cash or in specie and whether out
of revenue profits, capital profits or capital reserves save as required by Clause 15;
	 
	 	6.1.18  	commence the prosecution or defence of, or settle, any legal or arbitration proceedings
other than routine debt collection, except for any such action which involves a
Shareholder or any of its Associated Companies and in such case, such Shareholder and its
nominated Directors shall not be permitted to vote on such matters;
	 
	 	6.1.19  	enter into, vary or terminate any of the Ancillary Agreements (other than in accordance
with its terms), any agreement between the Company and any of
the Shareholders or any of the Associated Companies of any Shareholder;
	 
	 	6.1.20  	establish, cancel, or vary the terms of any pension, retirement, profit sharing, share
option, profit related, bonus or incentive scheme;
	 
	 	6.1.21  	enter into, effect or vary any claim, disclaimer, surrender, election or consent of a
material nature for tax purposes;
	 
	 	6.1.22  	change its name or trade under any corporate or trade name;
	 
	 	6.1.23  	change its financial year, auditors or registered office;
	 
	 	6.1.24  	factor or assign any of its book debts;
	 
	 	6.1.25  	open or close any bank account or change the terms of the mandate of any bank account of
the Company;
	 
	 	6.1.26  	adopt the annual accounts or, otherwise than as required by law, amend the Agreed
Accounting Policies;
	 
	 	6.1.27  	engage or agree to engage any person as an employee of the Company, set the terms of
employment of any such person or vary or terminate the terms of employment of any employee
of the Company;
	 
	 	6.1.28.  	make any gift or political or charitable donation;

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	 	6.1.29  	file an IND, NDA, or similar application or filing with any U.S. or foreign
regulatory agency;
	 
	 	6.1.30  	repay any loan made by any Shareholder to the Company, other than pro rata with
repayments by the Company of other loans made by the other Shareholders or other
than in accordance with the Operations Plan;
	 
	 	6.1.31  	incur any capital expenditure or liability in excess of US$100,000 (or the
equivalent in any other currency) per transaction, or which when aggregated with
previous transactions of a similar nature in any 12 month period would exceed
US$100,000 (or the equivalent in any other currency) for that 12 month period,
unless expressly provided for in the Operations Plan;
	 
	 	6.1.32  	enter into any reorganization, recapitalization, reconstruction of share capital
or consolidation or any scheme of arrangement of the Company; and
	 
	 	6.1.33  	make any calls upon the Shareholders in respect of all or any part of the monies
unpaid on the Shares held by them respectively.

	6.2.  	The Parties shall procure that the Company shall (so far as it is legally able to do
so) observe and comply with the provisions, prohibitions and restrictions in this Clause
6.
	 
	7.  	Joint Operating Committee
	 
	7.1  	The Joint Operating Committee shall consist of two representatives of Geron (one of
whom shall serve as Chair) and two representatives of BRC, and shall communicate
frequently (at least monthly) in formal or informal meetings and/or telephone conferences.
	 
	7.2  	Subject to the final authority of the Board, the Joint Operating Committee shall
oversee and provide day-to-day management of all aspects of the Collaboration Program and
of the development and commercialisation of the Collaboration Products, including without
limitation the plans for conducting preclinical and clinical research and development,
manufacturing, obtaining regulatory approvals, and sales and marketing of the
Collaboration Products. The Joint Operating
Committee shall (i) implement the Phase I Work Plan and the Phase II Work Plan as approved
by the Board, including defining the specific projects or tasks to be performed,
determining the best place to perform each project or task (whether at the Company, Geron,
BRC, or elsewhere), determining the appropriate funding

24

 

	   	and personnel for each, and monitoring and otherwise managing the performance of each
project or task; (ii) if appropriate in the Joint Operating Committee’s judgment, propose
modifications to the Phase I Work Plan and/or the Phase II Work Plan and submit them to the
Board for approval; and (iii) perform such other functions as are assigned to it by the
Board.
	 
	7.3  	The Joint Operating Committee shall seek to achieve unanimity on all issues coming
before it. In the event that the Joint Operating Committee is unable to reach a unanimous
decision on any issue, then the matter shall be decided by a simple majority vote and in
the case of an equality of votes, the Chair of the Joint Operating Committee shall not
have a casting vote. If the vote on a matter before the Joint Operating Committee is a
tie, any member of the Joint Operating Committee may refer the matter to the Board for
decision by a written notice to the Board, with copies to the members of the Board and the
Joint Operating Committee, that describes the matter as presented to the Joint Operating
Committee.
	 
	8.  	Finance
	 
	8.1  	In the event that the Company’s financial resources are at any stage insufficient to
satisfy its working capital requirements as determined by the Board, the Shareholders will
at the option of the Board be offered the opportunity, but without any obligation, to
either:

	 	8.1.1  	advance loans to the Company on a pro rata basis in accordance with
their then Relevant Percentage (a “New Advance”); or
	 
	 	8.1.2  	subscribe for additional Shares on a pro rata basis in accordance
with their then Relevant Percentage (as “New Subscription”).

	8.2  	If either Shareholder (an “Electing Shareholder”) elects not to make a New Advance or
a New Subscription in accordance with this Clause 8 within a period of twenty-one days
from the Board’s call therefor, then the other Shareholder shall have the right, upon
written notice to the Board and to the Electing Shareholder, to make both its own New
Advance or New Subscription and the New Advance or New Subscription of the Electing
Shareholder, at the Prescribed Price per Share in the case of New Subscriptions, as of the
date of such written notice, and the Shareholders shall procure that the necessary
authorisations are given and steps taken for such Shares to be allotted and issued to such
other Shareholder.
	 
	8.3  	Save as provided in this Clause 8 and the Funding Schedule, no Shareholder undertakes
to provide any loan or share capital to the Company nor to give any

25

 

	   	guarantee, security or indemnity in respect of any of the liabilities or obligations of the Company.
	 
	9.  	Transfer of Shares
	 
	9.1  	No transfer of any Share to any other party shall be registered before the end of Phase II
without the express written consent of the non-transferor Shareholder (to be granted or
withheld in its sole discretion) and thereafter only if:

	 	9.1.1  	the proposed transferee (if not already bound by the provisions of this
Agreement) has entered into a Deed of Adherence; and
	 
	 	9.1.2  	such transfer is made in compliance with this Clause 9 and the provisions
contained in Schedule 5; and
	 
	 	9.1.3  	except where the transfer is in accordance with Clause 9.2, the transferor
assigns and the transferee accepts an assignment of the benefit of all or, in the case
of a transfer of part of the Shares of a Shareholder a proportionate part, of any
loans made to the Company by the transferor or any of its Associated Companies and for
the time being outstanding and assumes all the obligations of the transferor in
respect of all, or a proportionate part, of any guarantee given by the transferor on
behalf of the Company

	   	and save as otherwise provided in this Agreement no Shareholder shall otherwise sell,
transfer or dispose of any Share or Shares or any interest therein or create any Third
Party Interest in respect thereof.
	 
	9.2  	Notwithstanding Clause 9.1, the Parties agree that a transfer of all of the Shares owned by a
Shareholder to a transferee who is and remains either (i) a wholly-owned subsidiary of the
ultimate holding company of the transferor Shareholder; (ii) the ultimate holding company of
the transferor Shareholder; or (iii) a wholly-owned subsidiary of the transferor Shareholder,
shall be permitted provided that:

	 	9.2.1  	the obligations of the transferor Shareholder under this Agreement will
remain unaffected by the proposed transfer;
	 
	 	9.2.2  	the transferee executes a Deed of Adherence contemporaneously with such
transfer; and
	 
	 	9.2.3  	the Shares will be re-transferred to the transferor Shareholder (or, at the
election of the transferor Shareholder by prior written notice to the other
Shareholder, to another transferee that is either (i) a wholly-owned subsidiary of the
ultimate holding company of the transferor

26

 

	 	   	Shareholder; (ii) the ultimate holding company of the transferor Shareholder;
or (iii) a wholly-owned subsidiary of the transferor Shareholder, in which case
this Clause 9.2 shall apply to such transfer of Shares to another transferee)
immediately upon the relevant transferee ceasing to be either a wholly-owned
subsidiary of the ultimate holding company of the transferor Shareholder, the
ultimate holding company of the transferor Shareholder or a wholly-owned
subsidiary of the transferor Shareholder, as the case may be.

	   	Each Shareholder shall provide to the other such information as the other may reasonably
require to ascertain that the transferee has not ceased to be such a wholly-owned
subsidiary.
	 
	9.3  	The Shareholders will procure that the Directors shall register any transfer of Shares which
complies with the provisions of this Clause and Schedule 5.
	 
	10.  	Undertakings not to Compete
	 
	10.1  	Each of the Shareholders undertakes to and with the Company and the other Shareholder that
for as long as it owns any Shares and for a period of * months
thereafter (“the Period”):

	 	10.1.1  	it shall not and it shall procure that none of its Associated Companies shall, other
than by means of the Company, either on its own account or in conjunction with or on
behalf of any other person, carry on or be engaged, concerned or interested directly
or indirectly whether as shareholder, director, employee, partner, agent or otherwise
in carrying on any activity or business within the Field of Use;
	 
	 	10.1.2  	without the prior written consent of the other Shareholder granted specifically with
respect to the individual(s) in question, it shall not and it shall procure that none
of its Associated Companies shall either on its own account or in conjunction with or
on behalf of any other person, employ, solicit or entice away or attempt to employ,
solicit or entice away from the Company or other Shareholder or any Associated Company
of the other Shareholder any person who is or shall have been at the date of, or
within one year prior to, the commencement of the Period an officer, manager,
consultant or employee of the

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

27

 

	 	   	Company or other Shareholder or any Associated Company of the other
Shareholder including but not limited to any person who had been seconded to
the Company, whether or not such person would commit a breach of contract by
reason of leaving such employment, provided that nothing in this Clause 10.1.2
shall restrict a Shareholder or its Associated Companies from (a) continuing as
the employer of any person who is appointed a director or officer of the
Company or who is seconded to the Company, or (b) with respect to any person
who is seconded to the Company, re-employing or continuing to employ such
person after the expiry of the agreed term of their secondment; and
	 
	 	10.1.3  	it shall not in relation to any trade, business or company use a name, word or
symbol or its Chinese equivalent in such a way as to be capable of or likely to be
confused with the name or symbol of the Company and shall use all reasonable
endeavours to procure that no such name shall be used by any person with which it is
connected.

	10.2  	Each and every obligation under this Clause 10 shall be treated as a separate obligation and
shall be severally enforceable as such, and in the event of any obligation or obligations
being or becoming unenforceable in whole or in part, such part or parts as are unenforceable
shall be deleted from this Clause, and any such deletion shall not affect the enforceability
of all such parts of this Clause as remain not so deleted.
	 
	10.3  	While the restrictions contained in this Clause 10 are considered by the Parties to be
reasonable in all the circumstances, it is recognised that restrictions of the nature in
question may fail for technical reasons and accordingly it is hereby agreed and declared that
if any of such restrictions shall be adjudged to be void as going beyond what is reasonable in
all the circumstances for the protection of the interest of the Parties but would be valid if
part of the wording thereof were deleted or the periods thereof reduced or the range of
activities or area dealt with thereby reduced in scope the said restriction shall apply with
such modifications as may be necessary to make it valid and effective.
	 
	11.  	Deadlock
	 
	11.1  	In the event of a Deadlock and the issue by a Shareholder to the other of a notice in writing
confirming that a Deadlock exists, the Shareholders shall, if either Shareholder so requests:

	 	11.1.1  	within 28 days of the date of such request make or concur in the making of, or
procure that their appointees on the Board shall make, a

28

 

	 	   	statutory declaration in the terms mentioned in the relevant statute to place
the Company in members’ voluntary liquidation (if the state of the Company’s
affairs admits of the making of such a declaration);
	 
	 	11.1.2  	subsequently within the period specified by the relevant statute, convene an
Extraordinary General Meeting of the Company to consider the matter from which the
Deadlock arose and the passing of a special or extraordinary resolution to place the
Company in members’ voluntary liquidation (if such a declaration as is mentioned in
Clause 11.1.1 has been made) or (in any other case) in creditors’ voluntary
liquidation; and
	 
	 	11.1.3  	where the state of the Company’s affairs does not admit of the making of such a
declaration as is mentioned in Clause 11.1.1, convene a meeting of the Company’s
creditors in accordance with the relevant statute to place the Company in creditors’
voluntary liquidation.

	11.2  	If at the Extraordinary General Meeting referred to in Clause 11.1.2, no resolution is
carried in relation to the matter from which the Deadlock arose by reason of an equality of
votes for and against any proposal for dealing with such matter, the Shareholders shall vote
in favour of the special or extraordinary (as the case may be) resolution for winding up the
Company.
	 
	11.3  	Immediately upon the commencement of the winding up of the Company in accordance with Clause
11.1 or Clause 11.2 above, the Ancillary Agreements shall be deemed to be terminated in
accordance with the termination provisions thereof and Geron shall grant the following rights:

	 	11.3.1  	Geron shall grant to BRC, HKUST and the Associated Companies of HKUST a
non-exclusive, non-transferable and fully paid-up licence to use, reproduce and
exploit for research purposes (i) all Geron Existing IP; and (ii) all Geron Background
IP (including without limitation trade secrets and knowhow) which has been made
available to the Company prior to the commencement of the winding up of the Company;
and
	 
	 	11.3.2  	(i) Geron shall grant to BRC the right to receive royalties equal to *% of Geron’s
Net worldwide annual revenues (generated after the date of such grant) from sales of
Licensed Geron Products or from sublicences granted by Geron under the Geron Existing
IP and/or the Geron

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

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Background IP in the Field of Use until the total amount of such royalty
payments received by BRC has equalled the excess of BRC’s cash contributions to
the Company over Geron’s cash contributions to the Company, which royalty
payments will be reduced to zero percent on a country-by-country basis when the
relevant patents under the Geron Existing IP and the Geron Background IP
expire; and (ii) Geron shall grant to BRC the right to receive royalties equal
to *% of Geron’s subsequent Net worldwide annual revenues from sales of
Licensed Geron Products or from sublicences granted by Geron under the Geron
Existing IP and/or the Geron Background IP in the Field of Use after the total
amount of royalty payments received by BRC under (i) above has exceeded the
excess of BRC’s cash contributions to the Company over Geron’s cash
contributions to the Company, but so that the relevant royalty payments under
this sub-paragraph (ii) will be reduced to zero percent on a country-by-country
basis when the relevant patents under the Geron Existing IP and the Geron
Background IP expire.

	11.4  	For the purposes of Clause 11.3.1, 12.3.2(a) and 12.4.2, the Parties acknowledge and agree
that the licence granted by Geron for research purposes includes, without limitation, the
following rights:

	 	11.4.1  	the right to publish the results of such research;
	 
	 	11.4.2  	the right to own all Intellectual Property arising from such research and to file
patent applications in respect of all such Intellectual Property; and
	 
	 	11.4.3  	the right to commercialise all Intellectual Property arising from such research. The
Parties acknowledge that it is possible that commercialisation of such Intellectual
Property may require a licence under other Intellectual Property owned or controlled
by Geron (including, for example, Geron Existing IP or Geron Background IP), and that
nothing in this Clause 11.4 shall be interpreted as granting the licensee any
commercialisation rights under any of that other Intellectual Property.

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

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	11.5  	Geron shall pay to BRC the royalties specified in Clauses 11.3.2, 12.3.2(b) and 12.3.2(c)
on a quarterly basis within 60 days after the end of each calendar quarter. All payments
shall be made by wire transfer to the bank account designated by BRC in writing from time to
time and shall be considered received on the date such funds actually are received in the
account. Geron shall be solely responsible for any and all payments due from its
sublicencees. With each payment Geron shall provide BRC with a written report that includes,
for each calendar quarter, on a product-by-product and country-by-country basis: (i) the
identity and quantity of Licensed Geron Products sold by Geron or its sublicencees; (ii) the
identity of the countries in which such sales have been made; (iii) the gross and Net revenues
from such sales; and (iv) the gross and Net sublicence revenues received by Geron on a
sublicence-by-sublicence basis. After the first such report of sales with respect to any
country, the reports shall include that country whether or not Geron or its sublicencees have
engaged in any sales in that country during said quarter. Geron shall provide a copy of its
audited financial statements for each relevant financial year to BRC as soon as practicable
after they are prepared together with a written statement from a director or officer of Geron
certifying the amount of the royalties payable to BRC in respect of such financial year. Any
discrepancy as to the amount of royalties payable as shown by the audited financial statements
for the relevant financial year shall be promptly corrected, within five (5) Business Days
after such audited financial statements are made available to Geron, by payment or refund by
either Geron or BRC (as appropriate) of the difference in the amount of royalties payable,
together with the accrued interest. All payments of royalties by Geron to BRC hereunder shall
be made in US$, without any set-off, deduction or withholding of any kind. If Geron is
overdue with any payment of royalties to BRC hereunder, then Geron shall be liable to pay
interest on the overdue amount at an annual rate of 3% above the prevailing prime lending rate
of The Hongkong and Shanghai Banking Corporation Limited, which interest shall accrue on a
daily basis from the due date for payment until BRC has received payment of all outstanding
sums in full.
	 
	11.6  	Geron shall keep proper and adequate records and accounts of revenues in sufficient detail to
enable the amounts payable to BRC under Clause 11 and Clause 12.3 to be reasonably determined.
Geron shall require its sublicencees to keep such records as required by this Clause 11.6 and
shall be solely responsible to BRC for such sublicencees’ compliance with this Clause 11.6.
Upon reasonable notice to Geron, BRC shall have the right to have an independent certified
public accountant, selected by BRC and reasonably acceptable to Geron, and under an
appropriate obligation of confidentiality, audit Geron’s and Geron’s sublicencees’ records
pertaining to sales and sublicences in the Field of Use to verify the amounts payable pursuant
to this Agreement; provided, however, that such audit: (i) shall take place
during normal business hours; (ii) shall not take

31

 

	   	place more frequently than once a year; and (iii) shall not cover such records for more
than the preceding five (5) years. Such audit shall be at BRC’s expense unless Geron has
paid BRC less than ninety percent (90%) of the amount determined to be due for any full
calendar year, in which case Geron shall reimburse BRC for all expenses related to such
audit. Any discrepancy between the amount of royalties payable as shown by the results of
such audit and the amount of royalties actually paid shall be promptly corrected, within
ten (10) Business Days after the results of such audit are made available to Geron, by
payment or refund, by either Geron or BRC (as appropriate) of the difference in the amount
of royalties payable, together with the accrued interest. Geron shall (and shall require
its sublicencees to) preserve and maintain all such records and accounts required for audit
for a period of at least five (5) years after the quarter to which such records and
accounts apply.
	 
	11.7  	If Geron or any other person is required by any law or regulation to make any deduction or
withholding (on account of tax or otherwise) from any payment, Geron shall, or (as the case
may be) shall procure that its sublicensee or such other person shall, together with such
payment, pay such additional amount as will ensure that BRC receives (free and clear of any
tax or other deductions or withholdings) the full amount which it would have received if no
such deduction or withholding had been required. Geron shall forward to BRC with its royalty
report copies of official receipts or other evidence showing that the full amount of any such
deduction or withholding has been paid over to the relevant taxation or other authority.
	 
	12.  	Termination
	 
	12.1  	This Agreement shall become effective as of the Effective Date and shall continue in full
force and effect until terminated in accordance with the provisions herein.
	 
	12.2  	In the event that either Shareholder shall commit or suffer an Event of Default, the
Defaulter shall within five Business Days of the occurrence of such Event of Default notify
the non-defaulting Shareholder in writing and the non-defaulting Shareholder shall (whether or
not such notice is given by the Defaulter) be entitled but not obliged to give a Default
Notice to the Defaulter.
	 
	12.3  	In the event a Default Notice is given pursuant to Clause 12.2 and the Defaulter is Geron,
BRC may elect to do either (but not both) of the following:

	 	12.3.1  	BRC may exercise a call option to purchase all, but not less than all, of Geron’s
Shares (a “Call Option”) by serving on Geron, within 30 days of the later of either
the date a Default Notice is served on the Defaulter or the expiration of any
applicable cure period for the relevant Event of Default without such Event of Default
(if capable of

32

 

	 	   	remedy) having been remedied to the reasonable satisfaction of BRC (or of the
Company in the case of the Ancillary Agreements), written notice (a “Call
Option Notice”) of its wish to exercise the Call Option. Upon service of a
valid Call Option Notice in accordance with this Agreement, Geron shall be
bound to sell all of its Shares to BRC at the Prescribed Price. Completion of
the purchase of all of Geron’s Shares shall take place no later than 14 days
after the date on which the Prescribed Price applicable thereto shall have been
determined or, if later, the date on which all governmental and other consents
necessary for the purchase of such Shares have been obtained. On the date of
completion of the purchase of all of Geron’s Shares, Geron and the Company
shall enter into the Amendment to Licence Agreement (a copy of which is
attached hereto as Schedule 10-A) to amend the Geron Licence Agreement; or
	 
	 	12.3.2  	BRC may exercise an option to wind up the Company in accordance with Clauses 11.1
and 11.2 (a “Wind Up Option”) by serving on Geron, within 30 days of the later of
either the date a Default Notice is served on the Defaulter or the expiration of any
applicable cure period for such Event of Default without such Event of Default (if
capable of remedy) having been remedied to the reasonable satisfaction of BRC (or of
the Company, in the case of the Ancillary Agreements), written notice (a “Wind Up
Notice”) of its wish to exercise the Wind Up Option. Upon service of a valid Wind Up
Notice in accordance with this Agreement, the Ancillary Agreements shall be deemed to
be terminated in accordance with the termination provisions thereof and Geron shall
grant the following rights:

	 	(a)  	Geron shall grant to BRC, HKUST and the Associated
Companies of HKUST a non-exclusive, non-transferable and fully paid-up
licence to use, reproduce and exploit for research purposes, (i) all Geron
Existing IP; and (ii) all Geron Background IP (including without
limitation trade secrets and knowhow) which has been made available to the
Company prior to the commencement of the winding up of the Company; and;
	 
	 	(b)  	Geron shall grant to BRC the right to receive
royalties equal to *% of Geron’s Net worldwide annual revenues (generated
after the date of such grant) from sales of Licensed Geron Products or
from sublicences granted by Geron under the

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

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	 	   	Geron Existing IP and/or the Geron Background IP in the Field of
Use until the total amount of such royalty payments received by BRC
has equalled the excess of BRC’s cash contributions to the Company
over Geron’s cash contributions to the Company, which royalty payments
will be reduced to zero percent on a country-by-country basis when the
relevant patents under the Geron Existing IP and the Geron Background
IP expire; and
	 
	 	(c)  	Geron shall grant to BRC the right to receive
royalties equal to *% of Geron’s subsequent Net worldwide annual revenues
from sales of Licensed Geron Products or from sublicences granted by Geron
under the Geron Existing IP and/or Geron Background IP in the Field of Use
after the total amount of royalty payments received by BRC under (b) above
has exceeded the excess of BRC’s cash contributions to the Company
compared with Geron’s cash contributions to the Company, but so that the
relevant royalty payments under this sub-paragraph (c) will be reduced to
zero percent on a country-by-country basis when the relevant patents under
the Geron Existing IP and the Geron Background IP expire.

	12.4  	In the event a Default Notice is given pursuant to Clause 12.2 and the Defaulter is BRC,
Geron may elect to do either (but not both) of the following:

	 	12.4.1  	Geron may exercise a Call Option to purchase all, but not less than all, of BRC’s
Shares by serving on BRC, within 30 days of the later of either the date a Default
Notice is served on the Defaulter or the expiration of any applicable cure period for
such Event of Default without such Event of Default (if capable of remedy) having been
remedied to the reasonable satisfaction of Geron (or the Company, in the case of the
Ancillary Agreements), a Call Option Notice. Upon service of a valid Call Option
Notice in accordance with this Agreement, BRC shall be bound to sell all of its Shares
to Geron at the Prescribed Price. Completion of the purchase of all of BRC’s Shares
shall take place no later than 14 days after the date on which the Prescribed Price
applicable thereto shall have been determined or, if later, the date on which all
governmental and other consents necessary for the purchase of such Shares have been
obtained. Effectively upon the completion of the purchase of all of BRC’s Shares, the
Geron Licence Agreement shall be amended as mutually agreed between Geron and the
Company; or

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

34

 

	 	12.4.2  	Geron may exercise a Wind Up Option by serving on BRC, within 30 days of the
later of either the date a Default Notice is served on the Defaulter or the expiration
of any applicable cure period for such Event of Default without such Event of Default
(if capable of remedy) having been remedied to the reasonable satisfaction of Geron
(or the Company, in the case of the Ancillary Agreements), a Wind Up Notice. Upon
service of a valid Wind Up Notice in accordance with this Agreement, (a) the Ancillary
Agreements shall be deemed to be terminated in accordance with the termination
provisions thereof; and (b) Geron shall grant to BRC, HKUST and the Associated
Companies of HKUST a non-exclusive, non-transferable and fully paid-up licence to use,
reproduce and exploit for research purposes, (i) all Geron Existing IP; and (ii) all
Geron Background IP which had been used by the Company in accordance with the Geron
Licence Agreement prior to the commencement of the winding up of the Company; and
(iii) any Geron Background IP to the extent necessary to use, reproduce and exploit
the Geron Existing IP.

	13.  	Effect of Winding Up of the Company or a Shareholder Transferring its Shares
	 
	13.1  	Save as otherwise provided herein, if the Company is placed in winding up pursuant to the
provisions of Clause 11 or Clause 12 or otherwise, then:

	 	13.1.1  	the Ancillary Agreements shall be deemed to be terminated in accordance with the
termination provisions thereof; and
	 
	 	13.1.2  	the provisions of this Agreement (other than Clauses 1, 10, 11.3-11.6,12, 13, 16,
17, 18, 19, 21, 23, 24, 29, 30, 31 and 34) shall cease to have effect save as may be
necessary to give effect to the provisions of Clause 11 and Clause 12 or in relation
to any antecedent claims which may have arisen between the Parties.

	13.2  	Save as otherwise provided herein if a Party ceases to be a Shareholder by reason of the
transfer of all of its Shares to another Shareholder or person, whether pursuant to Clause 12
or otherwise, then the provisions of this Agreement (other than Clauses 1, 10, 12, 13, 16, 17,
18, 19, 21, 23, 24, 29, 30, 31 and 34) shall cease to have effect in relation to the former
Shareholder save as may be necessary to give effect to the provisions of Clauses 11 and 12
respectively or in relation to any antecedent claims which may have arisen between the
Parties.
	 
	14.  	Undertakings Regarding the Operations of the Company
	 
	14.1  	Each of the Shareholders shall procure that the Company shall:

35

 

	 	14.1.1  	maintain with a well established and reputable insurer adequate liability insurance
against all risks usually insured against by companies carrying on the same or similar
business to the Business;
	 
	 	14.1.2  	keep books of account and therein make true and complete entries of all its dealings
and transactions of and in relation to the Business and, where applicable, the
business of the Company; such books of account and all other records and documents
relating to the business affairs of the Company shall be open to inspection by each of
the Shareholders during normal business hours and on reasonable prior notice and they
shall be permitted to take and remove copies thereof;
	 
	 	14.1.3  	provide each Shareholder with such periodic management accounts and reports as may
be agreed upon by the Shareholders, in a form acceptable to the Shareholders;
	 
	 	14.1.4  	prepare such accounts in respect of each accounting period as are required by
statute such accounts being prepared on an historical cost basis and using the Agreed
Accounting Policies and procure that such accounts are audited as soon as practicable
and in any event not later than 4 months after the end of the relevant accounting
period; and
	 
	 	14.1.5  	keep each of the Shareholders fully informed as to all its financial and business
affairs and in particular shall provide each of the Shareholders with full details of
any actual or prospective material change in such affairs as soon as such details are
available.

	14.2  	The Shareholders shall procure that not later than 30 days before the beginning of each
semi-annual financial period, the Board prepares and delivers to them a draft operations plan,
incorporating the proposed semi-annual budget and cash flow forecast for the next semi-annual
financial period.
	 
	14.3  	The Shareholders shall within such 30 day period approve the draft operations plan, subject
to any amendments which they deem appropriate, whereupon it shall become the Operations Plan
for that semi-annual financial period.
	 
	14.4  	At any time during a semi-annual financial period, the Board may propose to the Shareholders
changes to the Operations Plan, to which they shall respond within 30 days of receipt of each
such proposal.

36

 

	15.  	Distribution Policy

Unless otherwise expressly agreed by each of the Shareholders in writing and in compliance with the
applicable laws, the Parties shall procure that the Company distributes to the Shareholders by way
of dividend in respect of each of its accounting periods such amount, if any, as shall be
determined from time to time by the Board. Any such distribution shall be made within 120 days of
the end of the financial year in question or, if later, 21 days after the date of the auditor’s
report on the relevant accounts, provided that nothing in this Clause 15 shall require the Company
to declare any dividend, and that in no event shall the Company declare a dividend of an amount
which would prevent it from retaining sufficient working capital to enable it to carry on business
in a prudent and business-like manner.

	16.  	Warranties
	 
	16.1  	Each of BRC and Geron represents and warrants to the other that:

	 	16.1.1  	It is duly incorporated;
	 
	 	16.1.2  	It has the power to enter into and to exercise its rights and to perform its
obligations under this Agreement;
	 
	 	16.1.3  	It has taken and will take all necessary action to authorise the execution of and
the performance of its obligations under this Agreement;
	 
	 	16.1.4  	The obligations expressed to be assumed by it under this Agreement are legal, valid
and binding;
	 
	 	16.1.5  	Neither the execution nor performance of this Agreement will contravene any
provision of:

	 	(a)  	Any existing law, treaty or regulation;
	 
	 	(b)  	Its memorandum and articles of association or
equivalent constitutive documents; or
	 
	 	(c)  	Any obligation (contractual or otherwise) which is
binding upon it, or upon any of its assets.

	17.  	Confidentiality
	 
	17.1  	Each Shareholder undertakes to the other and to the Company that it will not and will procure
that its respective officers, employees, agents, subsidiaries and other

37

 

	   	persons under its Control and the respective officers, employees and agents of each such
person, will not during the period of this Agreement, and after its termination (for
whatever reason but subject to Clause 18.8 in the event of the winding up of the Company):

	 	17.1.1  	save in the proper course of the provision of services on behalf of the Company, use
or divulge to any person, or publish or disclose or permit to be published or
disclosed, any secret or confidential information relating to the Company or any of
the other Shareholders which it has received or obtained, or may receive or obtain
(whether or not, in the case of documents, they are marked as confidential); and/or
	 
	 	17.1.2  	other than as required by the Company and save as specifically allowed herein,
retain, duplicate or remove from the premises of the Company information relating to
the Company or the other Shareholder in whatever form (whether written, or recorded in
some other form, or oral) which is supplied by the Company or the other Shareholder to
it or which comes to its notice during the period of this Agreement,

PROVIDED THAT the obligations of this Clause shall not apply to:

	 	(i)  	the disclosure of information which the recipient can
reasonably demonstrate is in the public domain through no fault of its own;
	 
	 	(ii)  	the disclosure of information which the recipient can
reasonably demonstrate was in its possession prior to the date of this
Agreement without any confidentiality obligations, as evidenced by written
documents in its files;
	 
	 	(iii)  	the disclosure of information where the disclosure is
required by law, pursuant to a court order or by any recognised stock exchange
or governmental or other regulatory body when the Party concerned shall, if
practicable, supply an advance copy of the required disclosure to the other
Parties and incorporate any additions or amendments reasonably requested by
them;
	 
	 	(iv)  	the disclosure of information in confidence to any
professional adviser to any of the Parties for the purposes of obtaining
advice or assistance in connection with its obligations or rights, or the
obligations or rights of any other Shareholder or the Company hereunder or
pursuant to any of the Ancillary Agreements; or

38

 

	 	(v)  	the disclosure of information in confidence to or by any
adviser to any of the Parties for the purposes of giving or obtaining advice
or acting on behalf of the relevant Party in connection with a matter where
disclosure of information is permitted pursuant to the provisions hereof; or
	 
	 	(vi)  	the disclosure of information by any Party to a potential
purchaser of all or any of its Shares which is not a competitor of the Company
and which has entered into obligations of confidentiality similar to those
contained in this Clause.

	17.2  	For the purposes of this Clause 17,
“information” includes, without limitation, the
following:

	 	17.2.1  	information concerning the affairs or property of the Company or the other
Shareholder or any business property or transaction in which the Company or the other
Shareholder may be or may have been concerned or interested;
	 
	 	17.2.2  	the names and addresses of any client of the Company or the other Shareholder;
	 
	 	17.2.3  	information on the terms of this Agreement; or
	 
	 	17.2.4  	information relating to the business methods of the Company or the other
Shareholder.

	18.  	Intellectual Property
	 
	18.1  	Subject to the rights of Third Parties in Intellectual Property, the Company shall own all
Collaboration Inventions generated by or on behalf of the Company, its employees, secondees
and contractors and sub-contractors in the course of carrying out the Business.
	 
	18.2  	In the case of a Collaboration Invention made by employees, agents or contractors of a
Shareholder (alone or in collaboration with others), such Shareholder shall assign to the
Company all its right, title and interest in such Collaboration Invention.
	 
	18.3  	The Shareholders shall procure that the Company shall ensure that, and the Shareholders shall
reasonably co-operate to ensure that, employees and secondees (and any contractors and
sub-contractors) of the Company shall, where necessary, have agreed to assign to the Company
(or assign to the relevant Shareholder for

39

 

	   	assignment to the Company under Clause 18.2) their interest in any Collaboration Inventions
generated by them in the course of the Business.
	 
	18.4  	The Shareholders shall reasonably co-operate to ensure that the Company uses all reasonable
endeavours to procure the employees and secondees (and any contractors and sub-contractors) of
the relevant Shareholder to fully disclose and record all Collaboration Inventions to enable
the Company to fully collect, protect, exploit and commercialise the Collaboration Inventions.
	 
	18.5  	The Shareholders shall reasonably co-operate to ensure that the Company procures that, where
necessary, written and irrevocable waivers of any such moral or other non-transferable rights
have been given by the employees and secondees (and any contractors and sub-contractors) of
the Company and the Shareholders, as the case may be.
	 
	18.6  	Without limiting any other provision of this Agreement, the Shareholders acknowledge and
agree that during the continuance of this Agreement, the Collaboration Inventions shall not be
sold, transferred, assigned, licensed or otherwise disposed of by a Shareholder or any member
of the Company except in accordance with Clause 6.1.15.
	 
	18.7  	Each of the Shareholders agrees that any Collaboration Technology owned by a Shareholder or
any of its Associated Companies which is made available for the use of the Company (under the
BRC Licence Agreement, the Geron Licence Agreement, or otherwise) shall remain the property of
the relevant Shareholder or its Associated Company.
	 
	18.8  	Each Shareholder shall do all things reasonably necessary, co-operate in good faith and
provide such assistance as may be necessary and do all things as may be required to disclose,
protect, maintain, enforce and/or transfer or assign the Collaboration Inventions, and shall
procure that employees and secondees (and any contractors and sub-contractors) of the relevant
members of the Company shall co-operate in the provision of such assistance including
preparing and signing all forms, applications, documents, agreements and deeds to give effect
to and complete the transactions, assignments, and licences contemplated by this Clause 18.
	 
	18.9  	Upon the commencement of the winding up of the Company, but subject to any other written
agreement between the Shareholders, the Company’s interests in the Collaboration Inventions
and in the Company’s confidential information shall be assigned to BRC and Geron jointly and
become jointly owned by BRC and Geron, each of whom shall be free to use, reproduce, exploit
and commercialise such interests, and to grant licences to Third Parties to do so, without any
obligation to account to the other.

40

 

	18.10  	The provisions of this Clause 18 shall survive any termination of this Agreement.
	 
	19.  	Expert Determination of Certain Matters
	 
	19.1  	Each of BRC and Geron shall in good faith use its best endeavours to agree upon the
Prescribed Price within 30 days of the written notice specified under either Clause 8.2,
Clause 12.3.1 or Clause 12.4.1. In the absence of agreement by BRC and Geron within such 30
day period, the Prescribed Price for purposes of Clause 8 shall be determined by a director of
an independent investment bank of international repute (the “Expert”) who shall be selected
(i) by agreement of the Shareholders, or (ii) if the Shareholders fail to agree within ten
(10) Business Days after either Shareholder requests such selection, by two investment bankers
(with each Shareholder having the right to designate one), who shall notify the Shareholders
promptly upon making such selection, or (iii) upon request of either BRC or Geron if the two
designated investment bankers fail to agree on the appointment of the Expert within ten (10)
Business Days after the expiration of the ten (10) Business Day period in sub-clause (ii)
above, by the Chairman of SIAC.
	 
	19.2  	The Expert shall determine the Prescribed Price in accordance with the following procedures:

	 	19.2.1  	Within five (5) Business Days after selection of the Expert, each Shareholder may
submit to the Expert and to the other Shareholder in writing its proposal for the
Prescribed Price (“Proposal”);
	 
	 	19.2.2  	Within five (5) Business Days after each Shareholder has submitted its Proposal to
the Expert, each Shareholder may submit to the Expert and to the other Shareholder
concise written facts and arguments (not more than 20 pages) in support of its
position;
	 
	 	19.2.3  	Within ten (10) Business Days after the date for submission of such written facts
and arguments, the Expert may, in his discretion, hold a single meeting with both
Shareholders, at a place determined by the Expert and lasting not more than one day,
in which to hear directly from the Shareholders and ask them any questions he wishes;
	 
	 	19.2.4  	Within ten (10) Business Days after such meeting (or, in the absence of a meeting,
after the expiry of the 5 Business Day period for the submission of written facts and
arguments), the Expert shall determine the Prescribed Price, based on his professional
judgment, and in making his determination, the Expert may, at his sole discretion,

41

 

	 	   	decide whether or not to take into consideration the Shareholders’ Proposals
and written submissions;
	 
	 	19.2.5  	The Expert shall act as an expert and not as an arbitrator and his written
determination shall be final and binding on the Shareholders. The Expert shall make
his working papers relating thereto available to each Shareholder upon request; and
	 
	 	19.2.6  	The costs and expenses of the Expert shall be borne by the Shareholders according to
the Relevant Percentages.

	20.  	Mutual Co-operation
	 
	20.1  	Each of the Shareholders agrees that it will use all reasonable endeavours to promote the
business and profitability of the Company.
	 
	20.2  	Each of the Parties shall do and execute or procure to be done and executed all such acts,
deeds, documents and things as may be within its power including in relation to the
Shareholders (without prejudice to the generality of the foregoing) the passing of resolutions
(whether by the Board or in general meeting or any class meeting of the Company) to give full
effect to this Agreement and to procure that all provisions of this Agreement are observed and
performed.
	 
	20.3  	Each of the Shareholders agrees with the other that this Agreement is entered into between
them and will be performed by each of them in a spirit of mutual co-operation, trust and
confidence and that it will use all means reasonably available to it (including its voting
power whether direct or indirect, in relation to the Company) to give effect to the objectives
of this Agreement and to ensure compliance by the Company with its obligations.
	 
	20.4  	Each Shareholder undertakes with the other that whilst it remains a Shareholder, it will not
(except as expressly provided for in this Agreement) cast any of the voting rights exercisable
in respect of any of the Shares held by it in accordance with the directions, or subject to
the consent of, any other person (other than an Associated Company or in the case of BRC,
other than The Hong Kong Jockey Club Charities Trust or an Associated Company).
	 
	21.  	Restrictions on Announcements
	 
	   	Each of the Parties undertakes that it will not (save as required by law or any applicable
regulatory body) make any announcement in connection with this Agreement unless the other
Parties shall have given their respective consents to such announcement (which consents may
not be unreasonably withheld and may

42

 

	   	     be given either generally or in a specific case or cases and may be subject to conditions).

	22.  	No Partnership
	 
	   	Nothing contained or implied in this Agreement shall constitute or be deemed to constitute
a partnership between the Parties and save as expressly agreed herein none of the Parties
shall have any authority to bind or commit any other Party.
	 
	23.  	Conflict with Articles of Association
	 
	   	The Shareholders hereby agree that if and to the extent that the Articles of Association
conflict with the provisions of this Agreement, this Agreement shall prevail for so long as
it is in force and each Shareholder shall take all such further steps as may be necessary
or requisite to ensure that the provisions of this Agreement shall prevail, including
without limitation assisting, on request by either Shareholder, in convening a general
meeting and voting in favor of amendments to the Articles of Association to conform with
the terms of this Agreement.
	 
	24.  	Remedies
	 
	   	Each Party acknowledges and agrees that if any of them shall breach the warranties,
representations, indemnities, covenants, agreements, undertakings, and obligations (for the
purposes of this Clause referred to as the “Agreed Terms”) on each of their parts contained
in this Agreement or any other agreement entered into pursuant to it, damages may not be an
adequate remedy in which case the Agreed Terms shall be enforceable by injunction, order
for specific performance or such other equitable relief as a court of competent
jurisdiction may see fit to award.
	 
	25.  	Costs
	 
	   	Each Party shall pay its own costs and disbursements of and incidental to the preparation
and execution of this Agreement.
	 
	26.  	Assignment
	 
	   	Save as otherwise provided herein, the benefits and obligations conferred by this Agreement
upon each of the Parties are personal to that Party and shall not be, and shall not be
capable of being, assigned, delegated, transferred or otherwise disposed of save with the
written consent of each of the other Parties. Notwithstanding the foregoing provisions,
Geron may assign this Agreement and the benefits and obligations thereof in connection with
the merger or

43

 

	   	consolidation of Geron with another company, or the sale of all or substantially all of its
assets (or of the portion of its business related to the subject matter of this Agreement)
provided that Geron notifies BRC and the Company in writing prior to any such merger or
consolidation or sale.
	 
	27.  	Entire Agreement
	 
	   	This Agreement (together with any documents referred to herein or executed
contemporaneously by the Parties in connection herewith) constitutes the whole agreement
between the Parties and supersedes any previous agreements, arrangements or understandings
between them relating to the subject matter hereof. Each of the Parties acknowledges that
it is not relying on any statements, warranties or representations given or made by any of
them relating to the subject matter hereof, save as expressly set out in this Agreement.
	 
	28.  	Variation
	 
	   	No variation or amendment to this Agreement shall be effective unless in writing signed by
authorised representatives of each of the Parties.
	 
	29.  	Notices
	 
	   	Any notice required to be given by any Party to any other Party may be made (i) by hand
delivery by Federal Express or comparable private courier service to the other Party’s
address given herein or such other address as may from time to time be notified for this
purpose or (ii) by facsimile transmission to a facsimile number notified in writing by the
other Party for this purpose. Any properly addressed notice served by hand shall be deemed
to have been served on delivery and any notice served by facsimile transmission shall be
deemed to have been served when received, as shown by a confirmed transmission report.
	 
	30.  	Waiver
	 
	   	No failure of any Party to exercise, and no delay in exercising, any right or remedy in
respect of any provision of this Agreement shall operate as a waiver of such right or
remedy.
	 
	31.  	Severability
	 
	   	If any provision or part of a provision of this Agreement or its application to any Party,
shall be, or be found by any authority of competent jurisdiction to be, invalid or
unenforceable, such invalidity or unenforceability shall not affect the other provisions or
parts of such provisions of this Agreement, all of which shall remain in full force and
effect.

44

 

	32.  	Counterparts
	 
	   	This Agreement may be entered into on separate engrossments, each of which when so executed
and delivered shall be an original but each engrossment shall together constitute one and
the same instrument and shall take effect from the time of execution of the last
engrossment.
	 
	33.  	Survival of Provisions
	 
	   	All of the provisions of this Agreement shall remain in full force and effect
notwithstanding Completion (except insofar as they set out obligations which have been
fully performed at Completion).
	 
	34.  	Governing Law and Dispute Resolution
	 
	34.1  	This Agreement shall be governed by and construed in accordance with the laws of Hong Kong.
	 
	34.2  	In the event of any dispute arising out of or in connection with this Agreement, including
any question regarding its existence, validity, breach or termination, the Parties shall
attempt in good faith to reach a resolution satisfactory to all Parties. In the event the
Parties do not reach such a resolution within thirty (30) days after the relevant dispute
arises (or such longer period as the Parties may agree in writing), then any Party may, by
written notice to the other Parties, demand arbitration, and the relevant dispute shall be
referred to and finally resolved by arbitration in Singapore in accordance with the
Arbitration Rules of SIAC for the time being in force which rules are deemed to be
incorporated by reference into this Clause. The tribunal for any arbitration shall consist of
three arbitrators to be appointed by the Chairman of SIAC. The language of the arbitration
shall be English. Judgment on the award rendered by the arbitrators may be entered in any
court having jurisdiction thereof.

45

 

Schedule 1

Details of the Company Immediately Prior to Completion

	 	 	 
	Name:

	 	TA Therapeutics Limited
	 
	 	 
	Authorised Share Capital:

	 	US$36,000 divided into 36,000 Shares of US$1 each
	 
	 	 
	Issued Share Capital:

	 	US$1 divided into 1 Share of US$1 each

	 	 	 
	Shareholder

	 	Number of Shares
	 
	 	 
	Biotechnology Research Corporation Limited

	 	one (1)

46

 

Schedule 2

Completion

	   	On the Completion Date:
	 
	1.  	The Parties will procure that a meeting of the Board shall be held to approve and pass
resolutions substantially in the form specified in draft minutes in the approved terms
(including resolutions to approve the issue of the A Shares and B Shares as referred to in
this Schedule 2 and to adopt the Articles of Association);

	2.	(i) 	 BRC shall deliver to the Company an unconditional application in writing for the
allotment to it for cash (a) at par of * A Shares and * B Shares and shall pay US$11,997 to
the Company in full payment for the said A Shares and B Shares and the Company shall accept
such subscriptions and shall credit such Shares as fully paid; (b) at an issue price of
US$5,988,002 of * A Share and shall pay US$1 to the Company in part payment for the said A
Share and the Company shall accept such subscription as so partly paid up; and (c) at an issue
price of either US$* if BRC does not make the BRC Phase II Contribution and US$* if BRC does
make the BRC Phase II Contribution of one B Share and shall pay US$* to the Company in part
payment for the said B Share and the Company shall accept such subscription as so partly paid
up;
	 
	 	(ii)  	Geron shall deliver to the Company an unconditional application in writing
for the allotment to it for cash (a) at par of * A Shares and * B Shares and shall pay
US$11,998 to the Company in full payment for the said A Shares and B Shares and the
Company shall accept such subscriptions and shall credit such Shares as fully paid;
(b) at an issue price of US$1,988,002 of * A Share and shall pay US$1 to the Company
in part payment for the said A Share and the Company shall accept such subscription as
so partly paid up; and (c) at an issue price of either US$* if Geron does not make the
Geron Phase II Contribution and US$* if Geron does make the Geron Phase II
Contribution of * B Share and shall pay US$1 to the Company in part payment for the
said B Share and the Company shall accept such subscription as so partly paid up;
	 
	 	(iii)  	BRC shall deliver duly executed copies of the BRC Licence Agreement and the
BRC Services Agreement;

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

47

 

	 	(iv)  	Geron shall deliver duly executed copies of the Geron Licence Agreement and the
Geron Services Agreement; and
	 
	 	(v)  	the Company shall deliver duly executed copies of the BRC Licence
Agreement, the BRC Services Agreement, the Geron Licence Agreement and the Geron
Services Agreement.

	3.  	Subject to completion of the matters referred to in paragraph 2 above, the Parties shall
procure that:

	 	(i)  	The initial nominees of BRC and the initial nominees of Geron shall be
appointed as BRC Directors and Geron Directors respectively; and
	 
	 	(ii)  	the Parties who are also parties to the any of the Ancillary Agreements shall
enter into the relevant Ancillary Agreements and the Shareholders shall procure that
their relevant Associated Companies and the Company enters into the same.

48

 

Schedule 3

The Articles of Association

THE COMPANIES ORDINANCE (Chapter 32)

Company Limited by Shares

Articles of Association

of

TA Therapeutics Limited

Preliminary

	1.  	The regulations contained in Table “A” in the First Schedule to the Companies Ordinance (Cap.
32) shall not apply to the Company.
	 
	2.  	In these Articles, unless the context requires otherwise:

“Affiliated Company” means in relation to any Member, any Associated Company of such Member
and any company in which such Member or any holding company of such Member holds or
controls directly or indirectly not less than 20% of the issued share capital;

“Articles” means the Articles of Association of the Company for the time being in force;

“A Share” means a class A share of US$1 par value in the share capital of the Company
having the rights and benefits and subject to the restrictions set out in these Articles;

“Associated Company” means, in relation to any Member, any subsidiary or holding company of
that Member or any other subsidiary of such holding company;

“BRC” means Biotechnology Research Corporation Limited, a company incorporated under the
laws of Hong Kong;

1

 

“BRC Conversion Event” means either (i) BRC has given notice in writing to Geron and the
Company (within the period specified in any agreement in writing between the Members for
such notice to be valid) that the total share premium payable for its partly paid B Share
shall be US$* and has paid up such premium in full in cash to the Company, and Geron has
given notice in writing to BRC and the Company (within the period specified in any
agreement in writing between the Members for such notice to be valid) that the total share
premium payable for its partly paid B Share shall be US$*; or (ii) BRC has paid to the
Company an aggregate share premium of US$* in respect of its * partly paid B Share if BRC
has given (or is deemed to have given pursuant to any agreement in writing between the
Members) prior notice in writing to Geron and the Company that the total share premium
payable for its partly paid B Share shall be US$*;

“B Share” means a class B share of US$1 par value in the share capital of the Company
having the rights and benefits and subject to the restrictions set out in these Articles;

“Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for
business in both Hong Kong and California;

“Chairman” means the chairman of the board of directors of the Company;

“Collaboration Inventions” means any and all inventions, discoveries, improvements,
modifications, innovations, or Intellectual Property (including without limitation
materials and rights therein), whether or not patentable, that are made, created,
developed, discovered, conceived, or reduced to practice (i) by an employee of the Company
or of either BRC or Geron or any of the Affiliated Companies Controlled by either BRC or
Geron in the course of activities in the Collaboration Program, or (ii) by a Third Party or
an Affiliated Company of either BRC or Geron which is not Controlled by either BRC or Geron
in the performance of a contract in support of the Collaboration Program (but only to the
extent that the Company, BRC or Geron or their relevant Affiliated Companies has rights in
such invention);

“Collaboration Program” means the research, development, commercialisation and other
activities of the Company;

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

2

 

“Control” a person or persons (each a “controller”) shall be taken to have Control of
another person (“the controlled person”) if one or more of the controllers, whether by law
or in fact, has, or is entitled to acquire, the right or the power to secure directly or
indirectly that the controlled person’s affairs are conducted in accordance with the wishes
of the controller and in particular, but without prejudice to the generality of the
foregoing, if one or more of the controllers holds:

	 	(a)  	the greater part of the share capital of the controlled person or of the
voting rights attaching to the controlled person’s shares; or
	 
	 	(b)  	the power to control the composition of any board of directors or governing
body of the controlled person;

For the purposes of the foregoing and without limitation there shall be attributed to any
controller:

	 	(a)  	any rights or powers which another person possesses on his behalf or is or
may be required to exercise on his direction or behalf; and
	 
	 	(b)  	all rights and powers of any body corporate of which any controller alone or
together with another or other controllers has control or of any two or more such
bodies corporate;

and a “change in Control” shall be deemed to have occurred if any person having previously
controlled the relevant person, ceases to do so, or if any person acquires Control of the
relevant person;

“Conversion Event” means either a BRC Conversion Event or a Geron Conversion Event, as the
case may be;

“Directors” means the Directors of the Company for the time being, the sole Director or as
the case may be the Directors assembled as a board or a committee of the board;

“Geron” means Geron Corporation, a company incorporated under the laws of the State of
Delaware;

3

 

“Geron Conversion Event” means either (i) both Geron has given notice in writing to BRC and
the Company (within the period specified in any agreement in writing between the Members
for such notice to be valid) that the total share premium payable for its partly paid B
Share shall be US$* and has paid up such premium in full in cash to the Company, and BRC
has given notice in writing to Geron and the Company (within the period specified in any
agreement in writing between the Members for such notice to be valid) that the total share
premium payable for its partly paid B Share shall be US$*; or (ii) Geron has paid to the
Company an aggregate share premium of US$* in respect of its * partly paid B Share if Geron
has given (or is deemed to have given pursuant to any agreement in writing between the
Members) prior notice in writing to BRC and the Company that the total share premium
payable for its partly paid B Share shall be US$*;

“Hong Kong” shall have the same meaning as defined in the Interpretation and General
Clauses Ordinance (Cap.1);

“Intellectual Property” means patents, registered designs, design rights, knowhow, trade
marks, service marks, copyrights, trade secrets and other confidential information,
Internet domain names of any level, design rights, rights in circuit layouts, topography
rights, business names, registrations of, applications to register (including without
limitation patent applications) and rights to apply for registration of any of the
aforesaid items, rights in the nature of any of the aforesaid items in any country, rights
in the nature of unfair competition rights and rights to sue for passing off;

“Member” means a person who is registered as the holder of shares in the capital of the
Company;

“Memorandum of Association” means the Memorandum of Association of the Company for the time
being in force;

“Month” means calendar month;

“Office” means the registered office for the time being of the Company;

“Ordinance” means the Companies Ordinance (Cap. 32) as modified from time to time;

“Paid up” or “paid” includes credited as paid up or paid;

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

4

 

“Redemption Event” means the last to occur (determined in accordance with any
agreement in writing between the Members) of the following events: (i) BRC has paid to the
Company an aggregate share premium of US$* in respect of its *partly paid B Share if BRC
has given prior notice in writing to Geron and the Company (within the period specified in
any agreement in writing between the Members for such notice to be valid) that the total
share premium payable for its partly paid B Share shall be US$*; (ii) BRC has paid to the
Company an aggregate share premium of US$* in respect of its * partly paid B Share if BRC
has given (or is deemed to have given pursuant to any agreement in writing between the
Members) prior notice in writing to Geron and the Company that the total share premium
payable for its partly paid B Share shall be US$*; (iii) BRC fails to pay to the Company an
aggregate share premium of US$* in respect of its * partly paid B Shares in accordance with
the timetable set out in any agreement in writing between the Members, if BRC has given (or
is deemed to have given pursuant to any agreement in writing between the Members) prior
notice in writing to Geron and the Company that the total share premium payable for its
partly paid B Share shall be US$*; (iv) Geron has paid to the Company an aggregate share
premium of US$* in respect of its * partly paid B Share if Geron has given prior notice in
writing to BRC and the Company (within the period specified in any agreement in writing
between the Members for such notice to be valid) that the total share premium payable for
its partly paid B Share shall be US$*; (v) Geron has paid to the Company an aggregate share
premium of US$* in respect of its * partly paid B Share if Geron has given (or is deemed to
have given pursuant to any agreement in writing between the Members) prior notice in
writing to BRC and the Company that the total share premium payable for its partly paid B
Share shall be US$*; or (vi) Geron fails to pay to the Company an aggregate share premium
of U$* in respect of its * partly paid B Share in accordance with the timetable set out in
any agreement in writing between the Members, if Geron has given (or is deemed to have
given pursuant to any agreement in writing between the Members) prior notice in writing to
BRC and the Company that the total share premium payable for its partly paid B Share shall
be US$*;

“Register” means the register of Members to be kept pursuant to Ordinance;

“Related Company” means any company that is the Company’s subsidiary or holding
company or a subsidiary of the Company’s holding company;

“Reserve Director” means a person nominated as a reserve Director of the Company under
section 153A(6) of the Ordinance;

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

5

 

“Seal” means the common seal of the Company or, where appropriate, any official seal
for use in any particular state, country or territory outside Hong Kong or, where
appropriate, any securities seal for use by the Company in accordance with the Ordinance;

“Secretary” means any person appointed to perform the duties of the Secretary of the
Company and includes any person appointed to perform such duties temporarily and any duly
appointed assistant Secretary;

“Third Party” means any person other than BRC, Geron or any of their Affiliated Companies;

“US$” means United States dollars, the lawful currency of the United States of America;

“Year” means calendar year.

Any provision of these Articles that refers (in whatever words) to:

(a) the Directors;

(b) the Board of Directors;

(c) a majority of the Directors; or

(d) a specified number of percentage of the Directors of the Company

shall, unless the context otherwise requires, apply with necessary modifications in case
the Company has only one Director.

Any provision of these Articles that refers (in whatever words) to:

(a) the Members;

(b) a majority of Members; or

(c) a specified number or percentage of Members of the Company

shall, unless the context otherwise requires, apply with necessary modifications in case
the Company has only one Member.

Wherever any provision of these Articles (except a provision for the appointment of a
proxy) requires that a communication as between the Company, its Directors or Members be
effected in writing, the requirement may be satisfied by the communication being given in
the form of an electronic record unless the person to whom the communication is given
signifies refusal to communications being given to him in that form.

6

 

Expressions used in these Articles referring to “writing” or “written” shall, unless the
contrary intention appears, be construed as including references to printing, lithography,
photography and other modes of representing or reproducing words in a visible form.

Unless the context otherwise requires, words or expressions used in these Articles shall
have the same meaning as in the Ordinance or any statutory modification thereof in force at
the date at which these Articles become binding on the Company.

The singular includes the plural and vice versa. Words importing any gender
include the other genders.

The headings shall not affect the construction of these Articles.

Private Company

	3.  	The Company shall be a private company, and accordingly the following provisions shall have
effect:-

	 	(a)  	the Company shall not offer any of its shares or debentures to the public for
subscription;
	 
	 	(b)  	the number of Members (not including persons who are in the employment of the
Company and persons who, having been formerly in the employment of the Company, were
while in that employment, and have continued after the determination of that
employment to be, Members) shall not at any time exceed fifty provided that where two
or more persons hold one or more shares in the Company jointly, they shall, for the
purposes of this Article, be treated as a single Member; and
	 
	 	(c)  	the right to transfer shares in the Company shall be restricted in the manner
hereinafter provided.

Shares

	4.  	Subject to the provisions of the Ordinance (and in particular section 57B thereof) and of the
Articles relating to new shares, all unissued shares in the Company including any new shares
created upon an increase of capital shall be under the control of the Directors who may offer,
allot, grant options over or otherwise dispose of them to such persons, on such terms and
conditions and at such times as the Directors shall in their sole and absolute discretion
think fit, but so that no shares shall be issued at a discount, except in accordance with the
provisions of the Ordinance.

7

 

	5.  	Subject to the provisions, if any, in that regard in the Memorandum of Association or these
Articles, and without prejudice to any special rights previously conferred on the holders of
existing shares, any share may be issued with such preferred, deferred, or other special
rights, or such restrictions, whether in regard to dividend, voting, return of share capital,
or otherwise, as the Company may from time to time by special resolution determine, (or, in
the absence of any such determination or so far as the same shall not make specific provision,
as the Directors may determine) and any A Share, B Share, preference share or any other share
may, with the sanction of a special resolution, be issued on the terms that it is, or at the
option of the Company is liable, to be redeemed.

	6.  	The rights conferred upon the holders of the shares of any class shall not, unless otherwise
expressly provided by the terms of issue of the shares of that class, be deemed to be varied
by the creation or issue of further shares ranking pari passu therewith.

Class Rights

	7.  	The following rights shall attach to the A Shares and the B Shares:
	 
	7.1  	As regards ranking
	 
	   	A Shares and B Shares shall rank pari passu with each other in all respects.
	 
	7.2  	As regards voting
	 
	   	Each holder of A Shares and B Shares present in person or by proxy or (in the case of a corporation) by authorised
representative at a general meeting of the Company shall have:

	 	(a)  	on a show of hands, one vote; and
	 
	 	(b)  	on a poll, the number of votes equal to the number of A Shares and B Shares
registered in its name in the register of members of the Company for which the nominal
amount and the amount of any premium thereon due at the time of the poll have been
paid.

	7.3  	As regards conversion

	 	7.3.1  	Conversion upon occurrence of Conversion Event. Upon the occurrence
of a BRC Conversion Event, each B Share held by BRC shall be automatically converted
without the payment of any additional consideration into a fully paid A Share by such
B Share being deemed to be reclassified as an A Share. Upon the occurrence of a Geron
Conversion Event, each B Share held by Geron shall be automatically converted

8

 

	 	   	without the payment of any additional consideration into a fully paid A Share by
such B Share being deemed to be reclassified as an A Share.
	 
	 	7.3.2  	Number of A Shares upon conversion. The number of A Shares to which
a holder of B Shares shall be entitled upon conversion following the occurrence of the
relevant Conversion Event shall be equal to the number B Shares held by such holder of
B Shares immediately prior to the occurrence of the relevant Conversion Event.
	 
	 	7.3.3  	Mechanism for conversion.
	 
	 	(a)  	The reclassification of a B Share into an A Share pursuant to this Article
7.3 shall not require any action or resolution of the directors, the holder of such
Share or any other person. No payment shall be required from the holder of such B

Shares to be so converted.
	 
	 	(b)  	The Company shall not be obliged to issue a certificate(s) evidencing the A
Shares into which the B Shares are converted unless the holder of the B Shares: (i)
delivers the certificate(s) evidencing the B Shares to be converted to the Company; or
(ii) notifies the Company that such certificate(s) have been lost, stolen or destroyed
and executes an agreement satisfactory to the Company to indemnify the Company from
any loss that it may incur in connection with such certificate(s). Upon conversion of
any B Shares into A Shares pursuant to Article 7.3.1 and delivery of the
certificate(s) evidencing the B Shares so converted by their holder to the Company (or
the indemnity agreement referred to in (ii) above), the Company shall promptly deliver
to such holder a certificate(s) in respect of the A Shares into which such conversion
has been effected in the name as shown on the certificate(s) evidencing the B Shares
so surrendered to the Company.
	 
	 	7.3.4  	Sufficient authorised share capital. The Company shall ensure that
at all times there is a sufficient number of unissued A Shares in its authorised share
capital in order to satisfy the conversion rights of the B Shares pursuant to Article
7.3.1.
	 
	 	7.3.5  	Entry into register of members. Upon the conversion of the B Shares
into A Shares, the Company shall enter such Member in its register of members in
respect of the relevant number of A Shares arising from such conversion.

	7.4  	As regards redemption

	 	7.4.1  	Redemption Dates. Subject to the provisions of this Article 7.4 and
applicable laws, each B Share shall be redeemed by the Company upon

9

 

	 	   	the occurrence of the Redemption Event. As soon as practicable after the date of
occurrence of the Redemption Event and all relevant entries having been made in the
Register in respect of any automatic conversion and reclassification of B Shares
into A Shares pursuant to Article 7.3, the Company shall give notice in writing to
each holder of B Shares specifying the date of redemption of the B
Shares (the
“Redemption Date”), which shall be as soon as practicable after (but in any event
no later than ten Business Days after) the date of occurrence of the Redemption
Event or the day on which any conditions required for such redemption to take place
as provided for in the Companies Ordinance shall have been satisfied. Subject to
the provisions of this Article 7.4, any B Shares which are not converted into A
Shares pursuant to the provisions of Article 7.3 on or before the Redemption Date
shall be redeemed. Notwithstanding Articles 7.1 and 7.2, with effect from the date
of occurrence of the Redemption Event in respect of B Shares pursuant to this
Article 7.4.1, the B Shares to be redeemed shall cease to confer any rights to
attend or vote at general meetings of the Company in respect of B Shares, or to
rank for any dividend in respect of B Shares declared on or after the date of
occurrence of the Redemption Event, or to have any right to participate in any
return of capital in respect of B Shares in excess of their par value in any
winding up of the Company.
	 
	 	7.4.2  	Redemption Price. The B Shares to be redeemed pursuant to Article
7.4.1 shall be redeemed at a price (the “Redemption
Price”) equal to their * *.
	 
	 	7.4.3  	Redemption Price is debt due and payable. Commencing from the
Redemption Date, the Redemption Price shall become a debt due and payable by the
Company to the relevant holder(s) of the B Shares and the Company shall, subject to
receipt of the relevant share certificate(s) or an indemnity in lieu thereof in a form
reasonably satisfactory to the Company, pay the Redemption Price to the relevant
holder(s) of the B Shares.
	 
	 	7.4.4  	Mechanism for Redemption. On the Redemption Date, each holder of
the B Shares to be redeemed shall deliver to the Company the certificate(s) for such B
Shares and the Company shall cancel the same.

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

10

 

7.5 When Shares Fully Paid. If any share is issued partly paid and, by the terms and
conditions on which such share is issued, the amount of any premium payable on such share is to be
determined by the holder of such share at any time following such issue in accordance with any
agreement in writing between all of the Members, then such share shall be deemed to be fully paid
when the nominal amount, and the premium thereon as determined by the holder in accordance with any
agreement in writing between all of the Members and such terms of issue, shall have been paid
thereon.

7.6 Calls and Forfeiture. If any share is issued partly paid and, by the terms and
conditions on which such share is issued, the amount of any premium payable on such share is to be
determined by the holder of such share in accordance with any agreement in writing between all of
the Members at any time following such issue, then the Company shall not be entitled to make a call
in respect of such share in excess of the amount of the nominal amount of such share and the
premium thereon as determined by the holder in accordance with any agreement in writing between all
of the Members and such terms of issue, and the Company shall not be entitled to forfeit such share
if the amounts due thereon in respect of the nominal amount, and the premium thereon as determined
by the holder in accordance with any agreement in writing between all of the Members and such terms
of issue, shall have been paid.

7.7 Winding-up. If (a) any share is issued partly paid and, by the terms and conditions on
which the share is issued, the amount of any premium payable on such share is to be determined by
the holder of such share in accordance with any agreement in writing between all of the Members at
any time following such issue, and (b) a winding up of the Company (whether voluntarily or
otherwise) shall be commenced before the holder of the share has given notice to the Company of its
election that the premium payable on the share shall be the lowest amount which such Member may by
such terms of issue elect to be payable as the premium payable on such share, and the period
specified in any agreement in writing between the Members for the giving of notice of such election
has not expired, then the premium payable on such share shall, with effect from the commencement of
such winding up and (notwithstanding such terms of issue) without any notice in writing being
required from such Member, be deemed to be the lowest amount which such Member would have been
entitled by such terms of issue to elect to be payable as the premium payable on such share.

Redemption and Purchase of Shares

	8.	(A)  	 Subject always to the provisions of the Ordinance, the Company may:

	 	(i)	issue shares which are to be redeemed or are liable to be
redeemed at the option of the Company or holder;
	 
	 	(ii)	purchase its own shares (including any redeemable shares);
and

11

 

	 	 (iii)  	make a payment in respect of the redemption or purchase of
its own shares otherwise than out of profits or the proceeds of a fresh issue
of its shares.

	 	(B)  	Subject to the provisions of Article 7, a share which is liable to be
redeemed may be redeemed by the holder or the Company giving not less than thirty
days’ notice in writing of the intention to redeem such shares specifying the date of
such redemption which must be a Business Day.
	 
	 	(C)  	Subject to the provisions of Article 7, the amount payable on such redemption
on each share so redeemed shall be the * * of such share.
	 
	 	(D)  	Subject to the provisions of Article 7, any share in respect of which notice
of redemption has been given shall not be entitled to participate in the profits of
the Company in respect of the period after the date specified as the date of
redemption in the notice of redemption.
	 
	 	(E)  	The redemption or purchase of any share shall not be deemed to give rise to
the redemption or purchase of any other share.
	 
	 	(F)  	At the date specified in the notice of redemption or purchase, the holder of
the shares being redeemed or purchased shall be bound to deliver up to the Company at
its registered office the certificate thereof for cancellation and thereupon the
Company shall pay to him the redemption or purchase monies in respect thereof.
	 
	 	(G)  	The Directors may when making payments in respect of redemption or purchase
of shares in accordance with the provisions of this Article, if authorised by the
terms of issue of the shares being redeemed or purchased or with the agreement of the
holder of such shares, make such payment either in cash or in specie.

General

	9.  	Except as required by law, no person shall be recognised by the Company as holding any share
upon any trust, and the Company shall not be bound by or be compelled in any way to recognise
(even when having notice thereof) any equitable, contingent, future or partial interest in any
share or any other rights in respect of any share except an absolute right to the entirety
thereof in the registered holder.

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

12

 

	10.  	Subject always to the provisions of the Ordinance, the Directors may exercise the power of
the Company to purchase or otherwise acquire its own shares and/or warrants upon such terms
and subject to such conditions as the Directors may deem fit.

	11.  	Subject always to the provisions of the Ordinance, the Company may give financial assistance
for the purpose of or in connection with a purchase made or to be made by any person of, or a
subscription for, any shares in the capital of the Company or its holding company, or for the
purpose of or in connection with reducing or discharging any liability so incurred.

Register and Share Certificates

	12.  	The Directors shall cause to be kept a Register and there shall be entered therein the
particulars required under the Ordinance.

	13.	(A)  	Every person whose name is entered as a Member in the Register shall, without payment, be
entitled to a certificate under seal specifying the share or shares held by him and the amount
paid up thereon, provided that in respect of a share or shares held jointly by several persons
the Company shall not be bound to issue more than one certificate, and delivery of a
certificate for a share to one of several joint holders shall be sufficient delivery to all.
	 
	 	(B)  	If a share certificate is defaced, lost or destroyed, it may be renewed on
payment of such fee, if any, not exceeding one dollar, and on such terms, if any, as
to evidence and indemnity, as the Directors think fit.

	14.  	If any share shall stand in the names of two or more persons, the person first named in the
Register shall be deemed the sole holder thereof as regards service of notices and, subject to
the provisions of the Articles, all or any other matters connected with the Company, except
the transfer of such share.

Lien

	15.  	The Company shall have a first and paramount lien on every share (not being a fully paid
share) for all moneys (whether presently payable or not) called or payable at a fixed time in
respect of that share, and the Company shall also have a first and paramount lien on all shares (other than fully paid shares) standing registered in the name of a single person for
all monies presently payable by him or his estate to the Company and whether the same shall
have been incurred before or after notice to the Company of any equitable or other interest of
any person other than such Member and whether the period for the payment or discharge of the
same shall have actually arrived or not and notwithstanding that the same are joint debts or
liabilities of such Member or his estate

13

 

	   	and any other person, whether a Member or not. Notwithstanding the foregoing, the Directors
may at any time declare any share to be wholly or in part exempt from the provisions of this
Article. The Company’s lien, if any, on a share shall extend to all dividends, bonuses and
distributions payable in respect thereof.
	 
	16.  	The Company may sell, in such manner as the Directors think fit, any shares on which the
Company has a lien, but no sale shall be made unless some sum in respect of which the lien
exists is presently payable, nor until the expiration of 14 days after a notice in writing,
stating and demanding payment of such part of the amount in respect of which the lien exists
as is presently payable, has been given to the registered holder for the time being of the
share, or the person entitled thereto by reason of the death, mental disorder or bankruptcy of
the registered holder.

	17.  	For giving effect to any such sale the Directors may authorise some person to transfer the shares sold to the purchaser thereof. The purchaser shall be registered as the holder of the shares comprised in any such transfer and he shall not be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or
invalidity in the proceedings in reference to the sale.

	18.  	The net proceeds of the sale shall be received by the Company and applied in payment of such
part of the amount in respect of which the lien exists as is presently payable, and the
residue shall (subject to a like lien for sums not presently payable as existed upon the shares prior to the sale) be paid to the person entitled to the shares at the date of the
sale.

Calls on Shares

	19.  	Subject to the provisions of Article 7 and Article 102(gg), the Directors may from time to
time, or at times determined in accordance with any agreement in writing between the Members,
make such calls as they think fit upon the Members in respect of all or any part of the monies
unpaid on the shares held by them respectively (whether on account of the nominal value of the shares and/or by way of premiums) and not by the conditions of allotment thereof made payable
at fixed times and each Member shall (subject to receiving at least 14 days’ notice specifying
the time or times of payment) pay to the Company at the time or times so specified the amount
called on his shares. A call shall be deemed to have been made when the resolution of the
Directors authorising such call is passed and may be made payable by instalments. A call may
be revoked or postponed as the Directors may determine. A person upon whom a call is made
shall remain liable on such call notwithstanding any subsequent transfer of the shares in
respect of which the call was made.

	20.  	The joint holders of a share shall be jointly and severally liable to pay all calls and
instalments due in respect of such share or other monies due in respect thereof.

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	21.  	The Directors may from time to time at their discretion extend the time fixed for any call
and may extend such time as regards all or any of the Members whom, by reason of residence
outside Hong Kong or other cause, the Directors may deem entitled to any such extension.

	22.  	If a sum called in respect of a share is not paid before or on the day appointed for payment
thereof, the person from whom the sum is due shall pay interest upon the sum at the rate of 20
per cent per annum from the day appointed for the payment thereof to the time of the actual
payment, but the Directors shall be at liberty to waive payment of that interest wholly or in
part.

	23.  	No holder of a partly paid share shall be entitled to receive any dividend or bonus or to be
present and vote (save as proxy for another Member who is entitled) at any general meeting,
either personally or by proxy or authorised representative or be reckoned in a quorum or to
exercise any other privilege as a holder of a share unless all calls and instalments due from
him to the Company in respect of such partly paid share, whether alone or jointly with any
other person, together with interest and expenses (if any) shall have been paid.

	24.  	Any sum (whether on account of the nominal value of the share or by way of premium) which by
the terms of issue of a share becomes payable upon allotment or at any fixed date or on dates
determined in accordance with any agreement in writing between the Members shall for all the
purposes of the Articles be deemed to be a call duly made, notified and payable on the date on
which by the terms of issue the same becomes payable. In case of non-payment all the relevant
provisions of the Articles as to payment of interest, forfeiture or otherwise shall apply as
if such sum had become payable by virtue of a call duly made and notified.

	25.  	The Directors may make arrangements on the issue of shares for differences in the amount of
calls to be paid and in the times of payment between one holder and another.

	26.  	The Directors may, if they think fit, receive from any Member willing to advance the same all
or any part of the monies uncalled and unpaid upon any shares held by him and upon all or any
of the monies so advanced may (until the same would, but for such advance, become presently
payable) pay interest at such rate (not exceeding, without the sanction of the Company in
general meeting, 6 per cent per annum) as may be agreed upon between the Member paying the sum
in advance and the Directors. The Directors may at any time repay the amount so advanced or
any part thereof upon giving to such Member not less than one month’s notice in writing of
their intention to do so, unless before the expiration of such notice the amount proposed to
be repaid shall have been called up on the shares in respect of which it was advanced in which
event the same shall be applied in or towards satisfaction of the call under the applicable
provisions of the Articles.

15

 

Forfeiture of Shares

	27.  	If a Member fails to pay in full any call or instalment of a call on the day appointed for
the payment thereof, the Directors may at any time thereafter serve a notice on him requiring
payment of so much of the call or instalment as is unpaid, together with any interest which
may have accrued and which may accrue up to the date of payment and all other costs, charges
and expenses incurred or suffered by the Company in connection with the failure to pay any
call.

	28.  	The notice shall name a further day (not earlier than 14 days after the date of service of
the notice) on or before which the payment required by the notice is to be made, and shall
state that in the event of non-payment at or before the time appointed the shares in respect
of which the call was made will be liable to be forfeited.

	29.  	If the requirements of any such notice as aforesaid are not complied with, any share in
respect of which the notice has been given may at any time thereafter, before the payment
required by the notice has been made, be forfeited by a resolution of the Directors to that
effect. Such forfeiture shall include all dividends declared in respect of the forfeited
 shares but not paid before forfeiture. The Directors may accept a surrender of any share
liable to be forfeited hereunder and, in such case, references in these Articles to forfeiture
shall include surrender.

	30.  	Until cancelled in accordance with the requirements of the Ordinance, any share so forfeited
shall be deemed to be the property of the Company and may be sold, reallotted or otherwise
disposed of either to the person who was, before the forfeiture, the holder thereof or
entitled thereto or to any other person on such terms and in such manner as the Directors
think fit and at any time before a sale or disposition thereof the forfeiture may be cancelled
on such terms as the Directors think fit.

	31.  	A person whose shares have been forfeited shall cease to be a Member in respect of the
forfeited shares, but shall, notwithstanding, remain liable to pay to the Company all monies
which, at the date of forfeiture, were presently payable by him to the Company in respect of
the shares (together with interest thereon at the rate of 20 per cent per annum from the date
of forfeiture if the Directors think fit to enforce payment of such interest and all other
costs, charges and expenses incurred and suffered by the Company in connection with the
failure to pay any call), but his liability shall cease if and when the Company shall receive
payment in full of all such monies in respect of the shares. For the purposes of this
Article, any sum which by the terms of issue of a share is payable thereon at a fixed time or
at a time determined in accordance with any agreement in writing between the Members which
time is subsequent to the date of forfeiture, whether on account of the nominal value of the
share and/or by way of premium, shall, notwithstanding that such time has not yet arrived be
deemed to be payable at the date of forfeiture and the same shall become due and payable
immediately

16

 

	   	upon the forfeiture but interest thereon shall only be payable in respect of any period between
the said fixed time and, if later, the date of actual payment.
	 
	32.  	A statement in writing from a Director or the Secretary that a share in the Company has been
duly forfeited or surrendered on a date stated in the statement, shall be conclusive evidence
of the facts therein stated as against all persons claiming to be entitled to the share. The
Company may receive the consideration, if any, given for the share on any sale or disposition
thereof and may, subject to the restrictions contained in the Articles execute a transfer of
the share in favour of the person to whom the share is sold or disposed of, and he shall
thereupon be registered as the holder of the share, and shall not be bound to see to the
application of the purchase money, if any, nor shall his title to the share be affected by any
irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal
of the share.
	 
	33.  	When any share shall have been forfeited, notice of the resolution shall be given to the
Member in whose name it stood immediately prior to the forfeiture and an entry of the
forfeiture, with the date thereof, shall forthwith be made in the Register.

	 	 	 	 	 
	34.

	 	(A)
	 	Notwithstanding any such forfeiture as aforesaid, the Directors may at any time, before
any shares so forfeited shall have been sold, reallotted or otherwise disposed of, permit the
shares forfeited to be redeemed upon the terms of payment of all calls and interest due upon
and expenses incurred in respect of the shares and upon such further terms (if any) as they
think fit.
	 
	 	 	 	 
	

	 	(B)
	 	The forfeiture of a share shall not prejudice the right of the Company to any
call already made or instalment payable thereon.
	 
	 	 	 	 
	

	 	(C)
	 	The provisions of these Articles as to forfeiture shall apply in the case of
non-payment of any sum which, by the terms of issue of a share, becomes payable at a
fixed time or at a time determined in accordance with any agreement in writing between
the Members, whether on account of the nominal value of the share or by way of
premium, as if the same had been payable by virtue of a call duly made and notified.

Transfer of Shares

	 	 	 	 	 
	35.

	 	(A)
	 	All transfers of shares shall be effected by transfer in writing in any usual or common
form or in any other form acceptable to the Directors and may be under hand only.
	 
	 	 	 	 
	

	 	(B)
	 	The instrument of transfer shall be signed by or on behalf of both the
transferor and the transferee.

17

 

	 	 	 	 	 
	

	 	(C)
	 	The transferor shall remain the holder of the shares concerned until the name
of the transferee is entered in the Register in respect thereof.
	 
	 	 	 	 
	36.

	 	(A)
	 	The Directors in their absolute discretion and without assigning any reason therefor may
decline to register any transfer of shares which are not fully paid and shall refuse to
register any transfer of shares if registration thereof would cause the number of Members to
exceed the number permitted under these Articles. The Directors shall not register a transfer
to a person who is known to them to be an infant, bankrupt or person of unsound mind provided
that the Directors shall not be bound to enquire into the age or soundness of mind of any
transferee or whether or not he is a bankrupt.
	 
	 	 	 	 
	

	 	(B)
	 	Save as provided in paragraph (I) of this Article and subject to any
agreement in writing between all of the Members no transfer or disposal of any shares
or any interest in any shares shall be made by a Member except in compliance with the
following provisions of this Article and no Member shall otherwise sell, mortgage,
charge or otherwise dispose of or encumber any shares or assign or otherwise purport
to deal with the beneficial interest therein or any right in relation thereto separate
from the legal interest.
	 
	 	 	 	 
	

	 	(C)
	 	A Member shall be entitled to transfer its shares to a Third Party who has
made a bona fide offer therefor provided that before transferring its shares such
Member (the “Transferor”) shall give a notice in
writing (a “Transfer Notice”) to the
other Member (the “Recipient”) that it desires to transfer the same. The Transfer
Notice shall specify:

	 	(i)  	the number of shares which the Transferor wishes to transfer
(which may be all or part only of the shares then held by the Transferor) (the
“Relevant Shares”);
	 
	 	(ii)  	the name of the Third Party who has made the bona fide offer
for the Relevant Shares (the “Prospective Purchaser”);
	 
	 	(iii)  	the price which the Prospective Purchaser has offered for
the Relevant Shares; and
	 
	 	(iv)  	details of any other material terms of the offer made by the
Prospective Purchaser and any other material terms or circumstances known to
the Transferor which affect or may affect the offer.

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	 	(D)
	 	The Recipient may within a period of one month after the Transfer Notice is
given require the Transferor to produce to it such further evidence as it may
reasonably require to enable it to establish the bona fides of the offer by the
Prospective Purchaser.
	 
	 	 	 	 
	

	 	(E)
	 	The Recipient shall be entitled within a period of three months after the
Transfer Notice is given, or, if later, the provision to it of such further evidence,
to serve a purchase notice (a “Purchase Notice”) on the Transferor requiring it to
sell the Relevant Shares to it at the same price and on the same terms as those
offered by the Prospective Purchaser (as set out in the Transfer Notice).
	 
	 	 	 	 
	

	 	(F)
	 	Subject to paragraph (H) of this Article, if the Recipient serves a Purchase
Notice within the said three month period referred to in paragraph (E), the Transferor
shall be bound upon payment to transfer such of the Relevant Shares to the Recipient
as he has applied for. The purchase shall be completed at a place and time to be
appointed by the Directors being not less than three days nor more than ten days after
the Purchase Notice is served and the Directors shall be bound to register the
transfer.
	 
	 	 	 	 
	

	 	(G)
	 	If the Recipient has not served a Purchase Notice within the period referred
to in paragraph (E), the Transferor shall be entitled to sell the Relevant Shares to
the Prospective Purchaser at the price and on the terms set out in the Transfer Notice
provided that if such sale is not completed within six months after the Transfer
Notice is given the right to sell the Relevant Shares to the Prospective Purchaser
shall lapse. The Directors shall be bound to register a transfer effected pursuant to
this paragraph (G).
	 
	 	 	 	 
	

	 	(H)
	 	If Purchase Notices shall have been served in respect of part only of the
Relevant Shares, the Transferor shall be entitled to sell the remaining Relevant
Shares to the Prospective Purchaser in accordance with the provisions of paragraph (G)
of this Article or by notice in writing to the Recipient may withdraw all the Relevant
Shares from sale in which event the Transfer Notice shall be deemed to have been
withdrawn and no transfers shall take place.
	 
	 	 	 	 
	

	 	(I)
	 	The restrictions contained in paragraph (B) of this Article shall not apply
to any transfer:

	 	(i)  	by any Member of all of its shares to (i) a wholly-owned
subsidiary of the ultimate holding company of the transferor Member; (ii) the
ultimate holding company of the transferor Member; or (iii) a wholly-owned
subsidiary of the transferor Member; or

19

 

	 	(ii)  	by the sole Member; or
	 
	 	(iii)  	to which the consent in writing of all the Members for the
time being is given.

	 	 	 	 	 
	 

	 	(J)
	 	For the purpose of ensuring that a transfer of shares is a permitted transfer
or that no circumstances have arisen whereby a Transfer Notice is required to be given
or to be deemed to have been given hereunder the Directors may from time to time
require any Member or any person named as transferee in any transfer lodged for
registration to furnish to the Company such reasonable information and evidence as the
Directors may think fit regarding any matter which they may deem relevant to such
purpose. Failing such information or evidence being furnished to the reasonable
satisfaction of the Directors within a reasonable time after request, the Directors
shall be entitled to refuse to register the transfer in question or (in case no
transfer is in question) to require by notice in writing that a Transfer Notice be
given in respect of the shares concerned. If such information or evidence discloses
that a Transfer Notice ought to have been given in respect of any shares the Directors
may by notice in writing require that a Transfer Notice be given in respect of the
shares concerned.

	37.  	Every instrument of transfer shall be left at the Office for registration accompanied by the
certificate of the shares to be transferred and such other evidence as the Directors may
require to prove the title of the transferor or his right to transfer the shares. If the
Directors refuse to register a transfer they shall within 2 months after the date on which the
transfer was lodged with the Company send to the transferor and transferee notice of the
refusal. All instruments of transfer which are registered may be retained by the Company but
any instrument of transfer which the Directors may decline to register shall (except in the
case of fraud) be returned to the person depositing the same together with the share
certificate within 2 months after the date on which the transfer was lodged with the Company.

	38.  	The Register may be closed during such time or times as the Directors may from time to time
think fit (not exceeding a total of 30 days in any year).

Untraced Shareholders

	39.  	The Company may sell any shares in the Company if:

	 	 	 	 	 
	 

	 	(i)
	 	all cheques or warrants, being not less than 3 in total number, or any sum
payable in cash to the holder of such shares in respect of them sent in the manner
authorised by these Articles have remained uncashed for a period of 12 years;

20

 

	 	 	 	 	 
	

	 	(ii)
	 	the Company has not at any time during the relevant period received any
indication of the existence of the Member or of any person who is entitled to such
shares; and
	 
	 	 	 	 
	

	 	(iii)
	 	the Company has caused an advertisement to be inserted in at least one
leading English language and one leading Chinese language daily Hong Kong newspaper
giving notice of its intention to sell such shares and a period of 3 months has
elapsed since the date of such advertisement.
	 
	 	 	 	 
	 	 	To give effect to any such sale the Directors may authorise any person to transfer the said
shares and an instrument of transfer signed or otherwise executed by or on behalf of such
person shall be as effective as if it has been executed by the registered holder or the
person entitled by transmission to such shares, and the purchaser shall not be bound to see
to the application of the purchase monies nor shall his title to the shares be affected by
any irregularity or invalidity in the proceedings relating to the sale. The net proceeds
of the sale shall belong to the Company and upon receipt by the Company of such net
proceeds it shall become indebted to the former Member for an amount equal to such net
proceeds. No trust shall be created in respect of such debt and no interest shall be
payable in respect of it and the Company shall not be required to account for any monies
earned from the net proceeds which may be employed in the business of the Company or as it
thinks fit. Any sale under this Article shall be valid and effective notwithstanding that
the Member holding the shares sold is dead, bankrupt or otherwise under any legal
disability or incapacity.

Transmission of Shares

	40.  	In case of the death of a Member, the survivor or survivors where the deceased was a joint
holder, and the legal personal representatives of the deceased where he was a sole holder,
shall be the only persons recognised by the Company as having any title to his interest in the
share provided that nothing herein contained shall release the estate of the deceased (whether
a sole or joint holder) from any liability in respect of any share which had been jointly held
by him with other persons.

	41.  	Any person to whom the right to any share has been transmitted by operation of law may, upon
such evidence being produced as may from time to time properly be required by the Directors
and subject as hereinafter provided, elect either to be registered himself as holder of the
share or to have some person nominated by him registered as the transferee thereof, but the
Directors shall, in either case, have the same right to decline or suspend registration as
they would have had in the case of a transfer of the share by that Member before the event
giving rise to the transmission. The merger of any two or more corporations under the laws of
one or more foreign countries or states shall constitute a transmission by operation of law
for the purposes of this Article.

21

 

	42.  	If the person so becoming entitled shall elect to be registered himself, whether in whole or
in part, he shall deliver or send to the Company a notice in writing signed by him stating
that he so elects. If he shall elect to have another person registered, he shall testify his
election by executing to that person a transfer of the relevant shares. All the limitations,
restrictions and provisions of the Articles (except paragraphs (B) – (I) (inclusive) of
Article 36) relating to the right to transfer and the registration of transfers of shares
shall be applicable to any such notice or transfer as aforesaid as if the transmission had not
occurred and the notice or transfer were a transfer signed by the registered holder.

	43.  	Any person to whom the right to any share has been transmitted by operation of law shall be
entitled to the same dividends and other advantages to which he would be entitled if he were
the registered holder of the share. Provided always that the Directors may at any time give
notice requiring any such person to elect either to be registered himself or to transfer the
share, and if the notice is not complied with within 90 days the Directors may thereafter
withhold payment of all dividends, bonuses or other monies payable in respect of the share
until the requirements of the notice have been complied with but, subject to the requirements
of Article 66 being met, such person may vote at meetings of the Company.

	44.  	Any person to whom the right to any shares in the Company has been transmitted by operation
of law shall, if the Directors refuse to register the transfer, be entitled to call on the
Directors to furnish within 28 days a statement of the reasons for the refusal.

Alteration of Capital

	45.  	Subject to Article 102, the Company may from time to time by ordinary resolution increase the
share capital by such sum, to be divided into shares of such amount, as the resolution shall
prescribe.

	46.  	Except so far as otherwise provided by the conditions of issue or by these Articles, any new shares issued as a consequence of an alteration of capital shall be subject to the same
provisions with reference to the payments of calls and instalments, liens, transfer,
transmission, forfeiture, cancellation, surrender, voting and otherwise as the shares in the
original capital.

47. Subject to Article 102, the Company may by ordinary resolution:-

	 	(a)  	consolidate and divide all or any of its share capital into shares of a
larger amount than its existing shares;
	 
	 	(b)  	sub-divide its existing shares, or any of them, into shares of a smaller
amount than is fixed by the Memorandum of Association subject, nevertheless, to the
provisions of section 53(1)(d) of the Ordinance; and

22

 

	 	(c)  	cancel any shares which, at the date of the passing of the resolution, have
not been taken or agreed to be taken by any person.

	48.  	Subject to Article 102, the Company may by special resolution reduce its share capital, any
capital redemption reserve fund or any share premium account in any manner prescribed by law.

General Meetings

	49.  	The Company shall in each year hold a general meeting as its annual general meeting in
addition to any other meetings in that year, and shall specify the meeting as such in the
notices calling it, and not more than 15 months shall elapse between the date of one annual
general meeting of the Company and that of the next. Provided that so long as the Company
holds its first annual general meeting within 18 months of its incorporation, it need not hold
it in the year of its incorporation or in the following year. The annual general meeting
shall be held at such time and place as the Directors shall appoint. All general meetings
other than annual general meetings shall be called extraordinary general meetings.

	50.  	The Directors may, whenever they think fit, convene an extraordinary general meeting, and
extraordinary general meetings shall also be convened on such requisition, or in default may
be convened by such requisitionists, as provided by section 113 of the Ordinance. If at any
time there are not within Hong Kong sufficient Directors capable of acting to form a quorum,
any Director or any 2 Members who are entitled to attend and vote at a general meeting may
convene an extraordinary general meeting in the same manner as nearly as possible as that in
which a meeting may be convened by the Directors.

Notice of General Meetings

	51.  	An annual general meeting and a meeting called for the passing of a special resolution shall
be called by 21 days’ notice in writing at the least, and a meeting of the Company other than
an annual general meeting or a meeting for the passing of a special resolution shall be called
by 14 days’ notice in writing at the least or such shorter notice as consented to by the
Members in writing. The notice shall be exclusive of the day on which it is served or deemed
to be served and of the day for which it is given, and shall specify the place, the day and
the hour of meeting and, in case of special business, the general nature of that business.
The notice convening an annual general meeting shall specify the meeting as such and the
notice convening a meeting to pass a special resolution shall specify the intention to propose
the relevant resolution as a special resolution.

23

 

	52.  	All business shall be deemed special that is transacted at an extraordinary general meeting
and at an annual general meeting, with the exception of sanctioning a dividend, the reading,
consideration and adoption of accounts, balance sheets, and the reports of the Directors and
the auditors, the election of Directors in the place of those retiring at the meeting, the
appointment of the auditors (where special notice of the resolution for such appointment is
not required by the Ordinance) and the fixing, or the determination of the method of fixing,
of the remuneration of the auditors.

	53.  	Subject to the foregoing Article, the notice of every general meeting shall be given in the
manner hereinafter mentioned or in such other manner, if any, as may be prescribed by the
Company in general meeting to such persons as are under the Articles entitled to receive such
notices from the Company provided that subject to the provisions of the Ordinance a meeting of
the Company shall, notwithstanding that it is called by shorter notice than that specified in
this Article, be deemed to have been duly called if it is so agreed:

	 	(a)  	in the case of a meeting called as the annual general meeting, by all the
Members entitled to attend and vote thereat; and
	 
	 	(b)  	in the case of any other meeting, by a majority in number of the Members
having a right to attend and vote at the meeting, being a majority together holding
not less than 95 per cent in nominal value of the shares giving that right.

	54.  	The accidental omission to give notice of a meeting to, or the non-receipt of notice of a
meeting by, any person entitled to receive notice shall not invalidate the proceedings at any
meeting.

	55.  	In cases where instruments of proxy are or are to be sent out with notices, the accidental
omission to send such instruments of proxy to or the non-receipt of such instruments of proxy
by any person entitled to receive notice shall not invalidate any resolution passed or any
proceedings at any such meeting.

Proceedings at General Meetings

	56.  	For all purposes the quorum for a general meeting shall be at least one duly authorised
representative of BRC and at least one duly authorised representative of Geron. If the
Company has only one Member, the sole Member present in person or by proxy shall constitute a
quorum. No business shall be transacted at any general meeting unless the requisite quorum
shall be present at the commencement of the meeting provided that the absence of a quorum
shall not preclude the appointment, choice or election of a chairman which shall not be
treated as part of the business of the meeting.

24

 

	57.  	If within 15 minutes from the time appointed for the meeting a quorum is not present, the
meeting shall stand adjourned to the same day in the next week and at such time and place as
shall be decided by the Directors and if at the adjourned meeting a quorum is not present
within 15 minutes from the time appointed for the meeting, at least one duly authorised
representative of BRC and at least one duly authorised representative of Geron shall be a
quorum and may transact the business for which the meeting was called. In the event that a
quorum is not present at the start of and throughout such duly adjourned meeting of the
Members, that meeting shall be further adjourned to the same time and place on the same day in
the next week and a quorum at such adjourned meeting shall consist of the duly authorised
representative(s) of any Member or Members present at such adjourned meeting and the business
for which the meeting was called may be transacted.

	58.  	Each Director shall be entitled to attend and speak at any general meeting of the Company and
at any separate meeting of the holders of any class of shares in the Company.

	59.  	The Chairman shall preside as chairman at every general meeting of the Company. If at any
meeting the Chairman is not present within 15 minutes after the time appointed for holding the
meeting, the Member or Members present shall choose one of their number to be chairman.

	60.  	The chairman may, with the consent of any meeting at which a quorum is present and shall if
so directed by the meeting, adjourn the meeting from time to time (or sine die) and from place
to place, but no business shall be transacted at any adjourned meeting other than the business
left unfinished at the meeting from which the adjournment took place. Where a meeting is
adjourned sine die, the time and place for the adjourned meeting shall be fixed by the
Directors. When a meeting is adjourned for 21 days or more, not less than 7 days’ notice of
the adjourned meeting shall be given in like manner as in the case of the original meeting.
Save as aforesaid it shall not be necessary to give any notice of an adjournment or of the
business to be transacted at an adjourned meeting.

	61.  	At any general meeting a resolution put to the vote of the meeting shall be decided on a show
of hands, unless a poll is (before or on the declaration of the result of the show of hands)
demanded by any Member entitled to vote present in person or by proxy or representative and,
unless a poll is so demanded, a declaration by the chairman that a resolution has, on a show
of hands, been carried, or carried unanimously, or by a particular majority, or lost, and an
entry to that effect in the book of the proceedings of the Company, shall be conclusive
evidence of the fact, without proof of the number or proportion of the votes recorded in
favour of or against that resolution.

	62.  	If an amendment shall be proposed to any resolution under consideration but shall in good
faith be ruled out of order by the Chairman of the meeting the proceedings on the

25

 

	   	substantive resolution shall not be invalidated by any error in such ruling. In the case of a
resolution duly proposed as a special resolution no amendment thereto (other than a mere
clerical amendment to correct a patent error) may in any event be considered or voted upon.

	63.  	All questions submitted to a meeting shall be decided by a majority of votes except where a
greater majority is required by the Articles or by the Ordinance or by any agreement in
writing between the Members. In the event of an equality of votes the Chairman shall not have
a casting vote.

	64.  	A poll demanded on the election of a chairman or on a question of adjournment shall be taken
forthwith at the meeting and without adjournment. A poll demanded on any other question shall
be taken at such time (being not later than 30 days after the date of the demand) and place as
the chairman of the meeting directs and the result of the poll shall be deemed to be the
resolution of the meeting at which the poll was demanded. The demand for a poll may be
withdrawn with the consent of the chairman at any time before the close of the meeting or the
taking of the poll, whichever is the earlier.

	 	 	 	 	 	 	 	 	 
	65.

	 	(A)
	 	 	Subject to the provisions of the Ordinance, a resolution in writing signed by all Members
for the time being entitled to receive notice of and attend and vote at general meetings (or
being corporations, by a Director thereof or by their duly authorised representative) shall be
treated as a resolution duly passed at a general meeting of the Company duly convened and
held, and, where relevant, as a special resolution so passed. Any such resolution may consist
of several documents in the like form, each signed by one or more persons.
	 
	 	 	 	 	 	 	 	 
	

	 	(B)
	 	 	Subject to the provisions of the Ordinance, all general meetings may be held
by means of video conference or by other lawful electronic means and in such manner as
may be agreed by the Company in general meeting. All the provisions in these Articles
as to general meetings shall, mutatis mutandis, be applicable.
	 
	 	 	 	 	 	 	 	 
	

	 	(C)
	 	 	(1	)	 	Where the Company has only one Member and that Member takes any decision
that may be taken by the Company in general meeting and that has effect as if agreed
by the Company in general meeting, he shall (unless that decision is taken by way of a
written resolution agreed in accordance with section 116B of the Ordinance) provide
the Company with a written record of that decision within 7 days after the decision is
made.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	(2	)	 	Where the sole Member provides the Company with a written
record of a decision in accordance with Article 65(C)(1), that record shall be

26

 

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	sufficient evidence of the decision having been taken by the sole Member.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	(3	)	 	The Company shall cause a record of all written records
provided to the Company in accordance with this Article to be entered into a
book kept for that purpose in the same way as minutes of proceedings of a
general meeting of the Company.

Votes of Members

	66.  	Subject to the rights or restrictions for the time being attached to any class or classes of shares, on a show of hands every Member present in person or by proxy or representative shall
have one vote, and on a poll every Member present in person or by proxy or representative
shall have one vote for each share of which he is the holder and which is paid up as to all
amounts due on such share. A person entitled to cast more than one vote upon a poll need not
use all his votes or cast all the votes he uses in the same way.

	67.  	Any person entitled under Article 42 to be registered as a Member may vote at any general
meeting in respect thereof in the same manner as if he were the registered holder of such shares provided that at least 48 hours before the time of the holding of the meeting or
adjourned meeting (as the case may be) at which he proposes to vote, he shall satisfy the
Directors of his right to be registered as the holder of such shares or the Directors shall
have previously admitted his right to vote at such meeting in respect thereof.

	68.  	In the case of joint holders the vote of the senior who tenders a vote, whether in person or
by proxy or by representative, shall be accepted to the exclusion of the votes of the other
joint holders; and for this purpose seniority shall be determined by the order in which the
names stand in the Register. Several executors or administrators of a deceased Member in
whose name any share stands shall for the purposes of this Article be deemed joint holders
thereof.

	69.  	If (a) any objection shall be raised to the qualification of any voter or (b) any votes have
been counted which ought not to have been counted or which might have been rejected or (c) any
votes are not counted which ought to have been counted, the objection or error shall not
vitiate the decision of the meeting or adjourned meeting on any resolution unless the same is
raised or pointed out at the meeting or, as the case may be, the adjourned meeting at which
the vote objected to is given or tendered or at which the error occurs. Any objection or
error shall be referred to the chairman of the meeting and shall only vitiate the decision of
the meeting on any resolution if the chairman decides that the same may have affected the
decision of the meeting. The decision of the chairman on such matters shall be final and
conclusive.

27

 

	70.  	Any Member entitled to attend and vote at a meeting of the Company shall be entitled to
appoint another person as his proxy to attend and vote instead of him. On a poll votes may be
given either personally or by proxy. A proxy need not be a Member of the Company. A Member
may appoint more than one proxy to attend on the same occasion.

	71.  	The instrument appointing a proxy shall be in writing under the hand of the appointor or of
his attorney duly authorised in writing, or, if the appointor is a corporation, either under
seal, or under the hand of an officer or attorney duly authorised. The signature on such
instrument need not be witnessed.

	72.  	The instrument appointing a proxy and the power of attorney or other authority, if any, under
which it is signed or a notarially certified copy of that power or authority shall be
deposited:

	 	(a)  	not less than 48 hours before the meeting at the Office or at the place or
one of such places (if any) as maybe specified for the purpose in or by way of note to
the notice convening the meeting or in any notice of any adjourned meeting or, in
either case, in any document sent therewith or in the instrument of proxy issued by
the Company; or
	 
	 	(b)  	immediately before the commencement of the meeting or adjourned meeting or
poll to which the proxy relates (as the case may be) at which the person named in the
instrument proposes to vote at the place at which the meeting or adjourned meeting is
convened and in default the instrument of proxy shall not be treated as valid.
Delivery of an instrument appointing a proxy shall not preclude a Member from
attending and voting in person at the meeting or poll concerned.

	73.  	No instrument appointing a proxy shall be valid after the expiration of 12 months from the
date of its execution unless it states that it is valid, for all meetings whatsoever until
revoked with the exception that any instrument may be used at any adjournment of the meeting
for which it was originally intended.

	74.  	The instrument appointing a proxy to vote at a general meeting shall be deemed to confer
authority to demand or join in demanding a poll and to vote on any amendment of a resolution
put to the meeting for which it is given as the proxy thinks fit.

	75.  	A vote given in accordance with the terms of an instrument of proxy shall be valid
notwithstanding the previous death of the principal or the revocation of the proxy or transfer
of the share in respect of which the proxy is given provided that no intimation in writing of
the death, revocation or transfer has been received at the Office or such other place as was
specified for the deposit of proxies or by the chairman of the meeting before the vote is
given.

28

 

	76.  	An instrument appointing a proxy may be in any usual or common form or in any other form
which the Directors may approve and may be expressed to be valid for a particular meeting or
generally until revoked.

	77.  	Any corporation which is a Member may, by resolution of its directors or other governing
body, authorise such person as it thinks fit to act as its representative at any meeting or of
any class of Members, and the person so authorised shall be entitled to exercise the same
powers on behalf of the corporation which he represents as that corporation could exercise if
it were an individual Member.

Directors

	78.  	Unless otherwise determined by the Company in general meeting, the number of Directors shall
not be less than the minimum required by the Ordinance nor more than six. The first Directors
shall be determined in writing by the subscriber to the Memorandum of Association. A Director
shall not be required to hold any shares in the Company by way of qualification.

	 	 	 	 	 
	79.

	 	(A)
	 	For so long as BRC and Geron each hold 50% of the total issued shares which carry voting
rights at general meetings of the Company, each of BRC and Geron may at any time and from time
to time by notice in writing signed by him or them delivered to the Office appoint and/or
remove or substitute any three persons as Directors. Any such notice may be signed on behalf
of a corporate Member by a director thereof or by its duly authorised representative. Any
such notice may consist of several documents in the like form, each signed by one or more
persons. At such times as a Member owns (i) at least 10% but less than 25% of the total
issued shares, such Member shall be entitled to appoint and at any time remove or substitute
one Director; (ii) at least 25% but not more than 40% of the total issued shares, such Member
shall be entitled to appoint and at any time remove or substitute two Directors; (iii) more
than 40% but less than 60% of the total issued shares, such Member shall be entitled to
appoint and at any time remove or substitute three Directors; (iv) at least 60% but not more
than 75% of the total issued shares, such Member shall be entitled to appoint and at any time
remove or substitute four Directors; (v) more than 75% but not more than 90% of the total
issued shares, such Member shall be entitled to appoint and at any time remove or substitute
five Directors; and (vi) more than 90% of the total issued shares, such Member shall be
entitled to appoint and at any time remove or substitute six Directors.
	 
	 	 	 	 
	

	 	(B)
	 	Subject to the provisions of paragraph (A) above, the Company in general
meeting may by ordinary resolution appoint any person to be a Director for such term
as may be resolved or remove any existing Director. Special notice is required of a
resolution to remove a Director or to appoint

29

 

	 	 	 	 	 
	

	 	 	 	somebody in place of a Director so removed at the meeting at which he is removed in
accordance with the Ordinance.
	 
	 	 	 	 
	

	 	(C)
	 	Subject to the provisions of paragraph (A) above, the Directors may appoint
any person to be a Director as an additional Director or to fill a casual vacancy
provided that any person so appointed shall hold office only until the conclusion of
the next following annual general meeting and shall then be eligible for re-election.
	 
	 	 	 	 
	

	 	(D)
	 	Any appointment of a Director pursuant to this Article shall be ineffective
if such appointment would have the result that the number of Directors exceeds the
number fixed in accordance with Article 78.

	80.  	The Directors shall be entitled to receive by way of remuneration for their services such sum
as shall from time to time be determined by all the Members, such sum (unless otherwise
unanimously directed by the Members) to be divided amongst the Directors in such proportions
and in such manner as the Directors may agree or, failing agreement, equally, except that if
any Director holding office for less than the whole of the relevant period in respect of which
the remuneration is paid shall only rank in such division in proportion to the time during
such period for which he has held office.

	81.  	Any Director who holds any executive office or who serves on any committee, or who otherwise
performs services which in the opinion of the Directors are outside the scope of the ordinary
duties of a Director, may be paid such extra remuneration by way of salary, commission or
otherwise as the Directors may determine.

	82.  	The Directors may repay to any Director all such reasonable expenses as he may incur in
attending and returning from meetings of the Directors or of any committee of the Directors or
general meetings or otherwise in or about the business of the Company.

	83.  	The office of a Director shall be vacated if the Director:

	 	(a)  	becomes bankrupt or has a receiving order made against him or suspends
payment or makes any arrangement or composition with his creditors generally;
	 
	 	(b)  	becomes a lunatic or of unsound mind or a patient for any purpose of any
statute relating to mental health and the Directors resolve that his office be
vacated;
	 
	 	(c)  	(not being a Director appointed to an office in the management or business of
the Company under Article 88(A) whose contract precludes resignation) resigns his
office by notice in writing to the Company;

30

 

	 	(d)  	is convicted of an indictable offence;
	 
	 	(e)  	has his office vacated or becomes prohibited from being a Director under any
of the provisions of the Ordinance or any order made under the Ordinance;
	 
	 	(f)  	absents himself from the meetings of the Directors during a continuous period
of 6 months, without special leave for absence from the Directors and his alternate
Director (if any) shall not during such period have attended in his stead and the
Directors pass a resolution that his office be vacated by reason of such absence; or
	 
	 	(g)  	shall be removed from office by a Member or the Members in accordance with
Article 79(A) or (B).

	84.  	The Company shall keep a register in which there shall be entered the particulars required by
the Ordinance in respect of the Directors, the Secretary and reserve Director, and shall from
time to time notify the Registrar of Companies of any change that takes place in such
particulars as required by the Ordinance.

Powers and Duties of Directors

	85.  	The business of the Company shall be managed by the Directors who, without limiting the
generality of the foregoing, may pay all expenses incurred in setting up and registering the
Company and may exercise all such powers of the Company as are not required, by the Ordinance
or by the Articles, to be exercised by the Company in general meeting subject, nevertheless,
to such regulations as may be prescribed by the Company in general meeting being not
inconsistent with any of the Articles or the provisions of the Ordinance; but no regulation
made by the Company in general meeting shall invalidate any prior act of the Directors which
would have been valid if that regulation had not been made. The general powers given by this
Article shall not be limited or restricted by any special authority or power given to the
Directors by any other Article. A meeting of the Directors at which a quorum is present may
exercise all powers exercisable by the Directors.

	86.  	The Directors may establish and maintain or procure the establishment and maintenance of any
contributory or non-contributory pension or superannuation funds or death or disability
benefits for the benefit of, or give or procure the giving of donations, gratuities, pensions,
allowances or emoluments to, any persons who are or were at any time in the employment or
service of the Company or of any company which is a subsidiary of the Company or is allied or
associated with the Company or with any such subsidiary company or who are or were at any time
Directors or officers of the Company or of any such other company as aforesaid and holding or
who have held any salaried employment or office in the Company or such other company and the
wives,

31

 

	   	widows, families and dependants of any such persons. The Directors may also establish and
subsidise or subscribe to any institutions, associations, clubs or funds calculated to be for
the benefit of or to advance the interests and well-being of the Company or of any such other
company as aforesaid or of any such persons as aforesaid and may make payments for or towards
the insurance of any such persons as aforesaid and subscribe or guarantee money for charitable
or benevolent objects or for any exhibition or for any public, general or useful object. The
Directors may do all or any of the matters aforesaid, either alone or in conjunction with any
such other company as aforesaid. Any Director holding any such employment or office shall be
entitled to participate in and retain for his own benefit any such donation, gratuity, pension,
allowance or emolument.
	 
	87.  	The Directors may from time to time and at any time by power of attorney or otherwise appoint
any company, firm or person or any fluctuating body of persons, whether nominated directly by
the Directors, to be the attorney or attorneys of the Company for such purposes and with such
powers, authorities and discretions (not exceeding those vested in or exercisable by the
Directors under the Articles) and for such period and subject to such conditions as they may
think fit, and any such power of attorney may contain such provisions for the protection and
convenience of persons dealing with any such attorney as the Directors may think fit, and may
also authorise any such attorney to sub-delegate all or any of the powers, authorities and
discretions vested in him.

	 	 	 	 	 
	88.

	 	(A)
	 	The Directors may from time to time appoint one or more of their body to the office of
managing director or joint managing director on such terms and for such period as they may
determine and, without prejudice to the terms of any contract entered into in any particular
case, may at any time revoke any such appointment. Such appointment shall automatically
determine if the holder ceases to be a Director but without prejudice to any claim for damages
for breach of any contract of service between him and the Company.
	 
	 	 	 	 
	

	 	(B)
	 	The Directors may entrust to and confer upon a managing director or joint
managing director any of the powers exercisable by them as Directors upon such terms
and conditions and with such restrictions as they think fit, and either collaterally
with or to the exclusion of their own powers and may from time to time revoke,
withdraw, alter or vary all or any of such powers. The managing director or joint
managing directors shall receive such remuneration (either by way of salary,
commission, participation in profits, or otherwise howsoever) as the Directors may
determine.

	89.  	The Directors shall cause minutes to be duly entered in books provided for the purpose:

	 	(a)  	  of all appointments of officers made by the Directors;

32

 

	 	(b)  	of the names of the Directors present at each meeting of the Directors and of
any committee of Directors;
	 
	 	(c)  	of all declarations made or notices given by any Director (either generally
or specially) of his interest in any contract or proposed contract or of his holding
of any office or property whereby any conflict of duty or interest may arise; and
	 
	 	(d)  	of all resolutions, written records and proceedings of general meetings of
the Company and of meetings of the Directors and any committee of Directors;

and any such minutes of any general meeting of the Company or any meeting of the Directors
or of any committee of Directors shall be signed by the chairman of such meeting or by the
chairman of the next succeeding meeting and if so signed shall be receivable as prima facie
evidence of the matters stated therein.

Borrowing Powers

	90.  	The Directors may exercise all powers of the Company to borrow money, to give guarantees and
to mortgage or charge the undertaking, property and uncalled capital of the Company and to
issue debentures and other securities, whether outright or as collateral security for any
debt, liability or obligation of the Company or of any third party.

Directors’ Interests

	 	 	 	 	 
	91.

	 	(A)
	 	A Director may be or become a director or other officer of, or otherwise interested in,
any company promoted by the Company or in which the Company may be interested as vendor,
shareholder or otherwise and, subject to the Ordinance, no such Director shall be accountable
to the Company for any remuneration or benefits received by him as a director or officer of,
or from his interest in, such other company unless the Company otherwise directs. The
Directors may exercise the voting powers conferred by the shares in any other company held or
owned by the Company or exercisable by them as directors of such other company in such manner
in all respects as they think fit (including the exercise thereof in favour of any resolution
appointing themselves or any of them as directors or other officers of such company) and any
Director may vote in favour of the exercise of such voting rights in the manner aforesaid
notwithstanding that he may be, or about to be, appointed a director or other officer of such
a company and that as such he is or may become interested in the exercise of such voting
rights in the manner aforesaid.

33

 

	 	 	 	 	 
	

	 	(B)
	 	A Director may hold other office or place of profit under the Company (other
than the office of auditor) in conjunction with his office of Director for such period
and on such terms as to remuneration (whether by way of salary, commission,
participation in profits or otherwise) as the Directors may determine and no Director
or intending Director shall be disqualified by his office from contracting with the
Company either with regard to his tenure of any such office or place of profit or as
vendor, purchaser or otherwise nor shall any such contract or any contract or
arrangement entered into by or on behalf of the Company in which any Director is in
any way interested (whether or not such contract or arrangement is with any person,
company or partnership of or in which any Director shall be a member) be liable to be
avoided on that account nor shall any Director so contracting or being so interested
be liable to account to the Company for any profit realised by any such contract or
arrangement by reason of such Director holding that office or of the fiduciary
relationship thereby established provided that such Director shall forthwith disclose
the nature of his interest in any contract or arrangement in which he is interested as
required by and subject to the provisions of the Ordinance and the Articles. A
Director may vote in respect of any resolution concerning his own appointment as the
holder of any office or place of profit with the Company (including the arrangement or
variation of the terms thereof or the termination thereof).
	 
	 	 	 	 
	

	 	(C)
	 	A Director who is in any way, whether directly or indirectly, materially
interested in a contract, arrangement or transaction or proposed contract,
arrangement or transaction with the Company and which is of significance in relation
to the Company’s business shall declare the nature of his interest at the earliest
meeting of the Directors at which it is practicable for him to do so, in accordance
with the Ordinance. A general notice to the Directors by a Director stating that, by
reason of facts specified in the notice, he is to be regarded as interested in
contracts, arrangements or transactions or proposed contracts, arrangements or
transactions of any description which may subsequently be made or contemplated by the
Company shall be deemed for the purposes of this Article to be a sufficient
declaration of his interest, so far as attributable to those facts, in relation to
any contract, arrangement or transaction or proposed contract, arrangement or
transaction of that description which may subsequently be made or contemplated by the
Company, but no such general notice shall have effect in relation to any contract,
arrangement or transaction or proposed contract, arrangement or transaction unless it
is given before the date on which the question of entering into the same is first
taken into consideration on behalf of the Company.
	 
	 	 	 	 
	

	 	(D)
	 	Provided such disclosure is made as aforesaid, a Director shall be entitled
to vote in respect of any contract or arrangement in which he is interested and

34

 

	 	 	 	 	 
	

	 	 	 	to be counted in the quorum present at the meeting at which such contract or
arrangement is considered.
	 
	 	 	 	 
	

	 	(E)
	 	If any question shall arise at any meeting as to the materiality of a
Director’s interest or the significance of a contract, arrangement or transaction or
proposed contract, arrangement or transaction or as to the entitlement of any Director
to vote or form part of a quorum and such question is not resolved by his voluntarily
agreeing to abstain from voting, such question shall be referred to the chairman of
the meeting and his ruling in relation to any Director (other than himself) shall be
final and conclusive except in a case where the nature or extent of the interests of
the Director concerned as known to such Director have not been fairly disclosed.
	 
	 	 	 	 
	

	 	(F)
	 	The Company may by Ordinary Resolution suspend or relax the provisions of
this Article to any extent or ratify any transaction not duly authorised by reason of
a contravention of this Article.
	 
	 	 	 	 
	

	 	(G)
	 	Any Director may act by himself or his firm in a professional capacity for
the Company, and he or his firm shall be entitled to remuneration for professional
services as if he were not a Director provided that nothing herein contained shall
authorise a Director or his firm to act as auditor to the Company.

	 	 	 	 	 	 	 	 	 
	 

	 	 (H)
	 	 	(1	)	 	Subject to the provisions of Article 91(H)(2), in case the Company has
only one Member and the Company enters into a contract with that Member and that
Member is also a Director of the Company, unless the contract is in writing, the terms
of the contract shall be set out in a written memorandum within 7 days after the
contract is made and the memorandum shall be kept at the same place where the books
containing the minutes of the meetings of the Directors are kept.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	(2	)	 	Article 91(H)(1) does not apply to contracts entered into in
the ordinary course of the Company’s business.

Proceedings of Directors

	92.  	The Directors may meet together for the dispatch of business, adjourn, and otherwise regulate
their meetings, at least once every financial quarter and as they think fit. At any time any
Director may, and the Secretary on requisition of any Director shall, summon a meeting of
Directors. Any Director may waive notice of any meeting and any such waiver may be given
prospectively or retrospectively. Subject to Article 93(A) and Article 102, questions arising
at any meeting shall be decided by resolution passed by a simple majority of votes and in the
event, of an equality of votes the Chairman shall not have a second or casting vote.

35

 

	 	 	 	 	 
	93.

	 	(A)
	 	A resolution in writing signed by all the Directors for the
time being shall be as valid and effectual as if it had been
passed at a meeting of the Directors duly convened and held.
Any such resolution may consist of several documents in like
form each signed by one or more of the Directors.

	 	 	 	 	 	 	 	 	 
	

	 	(B)
	 	 	(1	)	 	In case the Company has only one
Director and that Director takes
any decision that may be taken in a
meeting of the Directors and that
has effect as if agreed in a
meeting of the Directors, he shall
(unless that decision is taken by
way of a resolution in writing)
provide the Company with a written
record of that decision within 7
days after the decision is made in
accordance with the Ordinance.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	(2	)	 	Where the Director provides the Company with a written record
of a decision, that record shall be sufficient evidence of the decision having
been taken by the Director.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	(3	)	 	The Company shall cause a record of all written records
provided to the Company to be entered into a book kept for that purpose in the
same way as minutes of proceedings of a meeting of the Directors.

	94.  	Meetings of the Directors may be held by means of conference telephone, video conference or
by such lawful electronic means and in such manner as may be agreed by the Directors. All the
provisions in these Articles as to Directors’ meetings shall, mutatis mutandis, be applicable.

	95.  	No meeting of the Directors may proceed to business nor transact any business unless a quorum
is present at the start and throughout such meeting. The quorum of a Directors’ meeting shall
be two Directors appointed by BRC and two Directors appointed by Geron, present in person or
represented by an alternate. In the event that a quorum of the Directors is not so present at
the start of and throughout a duly convened meeting of Directors, that meeting shall be
adjourned to the same time and place on the same day in the next week or as otherwise agreed
by a simple majority of the Directors and a quorum at such adjourned meeting shall consist of
two Directors appointed by BRC and two Directors appointed by Geron present in person or
represented by an alternate. In the event that a quorum of the Directors is not so present at
the start of and throughout such duly adjourned meeting of Directors, that meeting shall be
further adjourned to the same time and place on the same day in the next week or as otherwise
agreed by a simple majority of the Directors and a quorum at such adjourned meeting shall
consist of any three Directors present in person or represented by an alternate . Any
Director who ceases to be a Director at a Directors’ meeting may continue to be present and to
act as a Director and be counted in the quorum until the termination of the Directors’ meeting
if no other Director objects and if otherwise a quorum of Directors would not be present.

36

 

	96.  	The continuing Directors may act notwithstanding any vacancy in their body, but, if and so
long as their number is reduced below the number fixed by or pursuant to the Articles as the
necessary quorum of Directors, the continuing Directors may act for the purpose of increasing
the number of Directors to that number, or of summoning a general meeting of the Company, but
for no other purpose.

	97.  	The Chairman shall at all times be a Director, with each of Geron and BRC rotating to have
the right to appoint and remove the Chairman every twelve months. In the case of an equality
of votes at any meeting of the Board or of the Members, the Chairman shall not be entitled to
a second or casting vote. If at any meeting the Chairman is not present within 10 minutes
after the time appointed for holding the same, the Directors present may choose one of their
number to be chairman of the meeting.

	98.  	The Directors may delegate any of their powers to committees consisting of such member or
members of their body as they think fit; any committee so formed shall in the exercise of the
powers so delegated conform to any regulations that may be imposed on it by the Directors.

	99.  	A committee may elect a chairman of its meetings; if no such chairman is elected, or if at
any meeting the chairman is not present within 10 minutes after the time appointed for holding
the same, the members present may choose one of their number to be chairman of the meeting.

	 	 	 	 	 
	100.

	 	(A)
	 	All acts done by any such committee in conformity with such regulations and in fulfilment
of the purposes for which it is appointed, but not otherwise, shall have the like force and
effect as if done by the Directors and the Directors shall have power, with the consent of the
Company in general meeting, to remunerate the members of any special committee and charge such
remuneration to the current expenses of the Company.
	 
	 	 	 	 
	

	 	(B)
	 	The meetings and proceedings of any such committee consisting of two or more
members shall be governed by the provisions herein contained for regulating the
meetings and proceedings of the Directors including Articles 92 to 94 so far as the
same are applicable thereto and are not replaced by any regulations imposed by the
Directors pursuant to Article 98.

	101.  	All acts bona fide done by any meeting of the Directors or of a committee of Directors or by
any person acting as a Director shall, notwithstanding that it be afterwards discovered that
there was some defect in the appointment of any such Director or person acting as aforesaid or
that they or any of them were or was disqualified, be as valid as if every such person had
been duly appointed and was qualified to be a Director or member of such committee.

37

 

Prior Approval Required for Certain Actions of Directors and Members

	102.  	Subject to any agreement in writing between the Members, the Company and/or the Directors
shall not, without the prior written approval of BRC and Geron:

	 	(a)  	make or agree to make any change to the authorised or issued share capital
from time to time of the Company or grant any option over or interest in, or issue any
instrument carrying rights of conversion into, any other security or share of the
Company or redeem or purchase any of its own shares or effect any other
re-organisation of its share capital;
	 
	 	(b)  	permit the registration of any person as a Member (whether by way of
subscription or transfer) other than as permitted by any agreement in writing between
the Members;
	 
	 	(c)  	make any change to the Memorandum of Association or the Articles;
	 
	 	(d)  	create or, where appropriate, issue any fixed or floating charge, debenture,
lien (other than a lien arising by operation of law or in the ordinary course of
business) or other mortgage, encumbrance or security over the whole or any part of the
undertaking, business, property or assets (tangible or intangible) of the Company,
except for the purpose of securing the indebtedness of the Company to its bankers for
sums borrowed in the ordinary and proper course of the Business;
	 
	 	(e)  	permit the Company to incur any indebtedness in excess of that provided in
the operations plan of the Company approved by the Members;
	 
	 	(f)  	make any loan or advance or give any credit (other than normal trade credit)
to any person;
	 
	 	(g)  	give any guarantee, indemnity or security to secure the liabilities or
obligations of any person;
	 
	 	(h)  	except as otherwise specifically provided for in the operations plan of the
Company approved by the Members, (i) sell, transfer, lease, assign, dispose of or part
with control of any interest in all or any material part of the undertaking, business,
property or assets (tangible or intangible) of the Company (whether by a single
transaction or a series of transactions) or contract to do so or (ii) acquire or
contract to acquire any business, property or assets (tangible or intangible) or any
interest therein which would, following such acquisition constitute a material part of
the business, property or assets of the Company;

38

 

	 	(i)  	set up or close down any branch or office or create, acquire or dispose of
any subsidiary or of any shares or any security or any interest in any subsidiary;
	 
	 	(j)  	take or agree to take any leasehold interest in, or licence over, any land;
	 
	 	(k)  	enter into any partnership or profit sharing agreement or joint venture with
any person;
	 
	 	(l)  	approve the semi-annual operations plan, budget and capital expenditure
programme or make any substantial alteration to the operations plan of the Company
approved by the Members including any material change to the nature and/or
geographical area of the business of the Company as approved by the Members, or take
or ratify any action materially in conflict with the operations plan of the Company
approved by the Members;
	 
	 	(m)  	acquire, purchase or subscribe for any shares, loan stock, debentures,
mortgages or securities (or any interest therein) or any other interest in any person;
	 
	 	(n)  	grant any power of attorney, delegate directors’ powers (other than as
provided in any agreement in writing between the Members) or fail to comply with any
guidelines or directives issued by the board of Directors which are consistent with
any agreement in writing between the Members;
	 
	 	(o)  	enter into, vary or terminate any contract or transaction for the disposal or
licensing to any other person of any rights in respect of Collaboration Inventions or
whereby any person would or might receive remuneration calculated by reference to its
income or profits;
	 
	 	(p)  	make any composition or arrangement with its creditors, move for insolvency,
receivership or administration or do or permit or suffer to be done any act or thing
whereby the Company may be wound up (whether voluntarily or compulsorily), save as
otherwise expressly provided for in any agreement in writing between the Members;
	 
	 	(q)  	declare or make any dividend or other distribution in cash or in specie and
whether out of revenue profits, capital profits or capital reserves save as required
by any agreement in writing between the Members;
	 
	 	(r)  	commence the prosecution or defence of, or settle, any legal or arbitration
proceedings other than routine debt collection, except for any such action which
involves a Member or any of its Associated Companies and in such

39

 

	 	   	case, such Member and its nominated Directors shall not be permitted to vote on
such matters;

	 	(s)  	enter into, vary or terminate any of the agreements between the Company and
any of the Members or any of the Associated Companies of any Member;
	 
	 	(t)  	establish, cancel, or vary the terms of any pension, retirement, profit
sharing, share option, profit related, bonus or incentive scheme;
	 
	 	(u)  	enter into, effect or vary any claim, disclaimer, surrender, election or
consent of a material nature for tax purposes;
	 
	 	(v)  	change its name or trade under any corporate or trade name;
	 
	 	(w)  	change its financial year, auditors or registered office;
	 
	 	(x)  	factor or assign any of its book debts;
	 
	 	(y)  	open or close any bank account or change the terms of the mandate of any bank
account of the Company;
	 
	 	(z)  	adopt the annual accounts or, otherwise than as required by law, amend the
accounting policies of the Company agreed by the Members;
	 
	 	(aa)  	engage or agree to engage any person as an employee of the Company, set the
terms of employment of any such person or vary or terminate the terms of employment of
any employee of the Company;
	 
	 	(bb)  	make any gift or political or charitable donation;
	 
	 	(cc)  	file an IND, NDA, or similar application or filing with any U.S. or foreign
regulatory agency;
	 
	 	(dd)  	repay any loan made by any Member to the Company, other than pro rata with
repayments by the Company of other loans made by the other Members or other than in
accordance with the operations plan of the Company approved by the Members;

	 	(ee)  	incur any capital expenditure or liability in excess of US$100,000 (or the
equivalent in any other currency) per transaction, or which when aggregated with
previous transactions of a similar nature in any 12 month period would exceed
US$100,000 (or the equivalent in any other

40

 

currency) for that 12 month period, unless expressly provided for in the operations
plan of the Company approved by the Members;

	 	(ff)  	enter into any reorganization, recapitalization, reconstruction of share
capital or consolidation or any scheme of arrangement of the Company; and
	 
	 	(gg)  	make any calls upon the Members in respect of all or any part of the monies
unpaid on the shares held by them respectively.

Alternate Directors

	 	 	 	 	 
	103.

	 	(A)
	 	A Director may at any time by notice in writing delivered to the Office or at a meeting
of the Directors appoint any person (including another Director) to be an alternate Director
in his place. Any person so appointed under this Article shall (except when absent from Hong
Kong) be entitled to receive notices of and to attend and vote at meetings of the Directors
and be counted towards a quorum and generally at such meetings to perform all the functions of
his appointor as a Director and shall automatically vacate his office on the expiration of the
term for or the happening of the event until which he is by the terms of his appointment to
hold office or which, were he a Director, would cause him to vacate such office or if the
appointor in writing revokes the appointment or himself ceases for any reason to hold office
as a Director. An appointment of an alternate Director under this Article shall not prejudice
the right of the appointor to receive notices of and to attend and vote at meetings of the
Directors and the powers of the alternate Director shall automatically be suspended during
such time as the Director appointing him is himself present in person at a meeting of the
Directors.
	 
	 	 	 	 
	

	 	(B)
	 	An alternate Director shall (subject to his giving to the Company an address
at which notices may be served on him) be entitled (in addition to his appointor) to
receive and (in lieu of his appointor) to waive notices of meetings of the Directors
and of any committee of the Directors of which his appointor is a member and shall be
entitled to attend and vote as a Director and be counted in the quorum at any such
meeting at which his appointor is not personally present and generally at such meeting
to perform all functions of his appointor as a Director and for the purposes of the
proceedings at such meeting the provisions of these Articles shall apply as if he
(instead of his appointor) were a Director. If he shall be himself a Director and
shall attend any such meeting as an alternate for more than one Director, he shall be
counted in the quorum separately in respect of himself (if a Director) and in respect
of each Director for whom he is an alternate (but so that nothing in this provision
shall enable a

41

 

	 	 	 	 	 
	

	 	 	 	meeting to be constituted when only one person is physically present) and his
voting rights shall be cumulative and he need not use all his votes or cast all the
votes he uses in the same way. His signature to any resolution in writing of the
Directors or of any such committee and his attestation of the affixing of the Seal
shall be as effective as the signature and attestation of his appointor. An
alternate Director shall not (save as aforesaid) have power to act as a Director
nor shall he be deemed to be a Director for the purposes of these Articles.
	 
	 	 	 	 
	

	 	(C)
	 	An alternate Director shall be entitled to contract and be interested in and
benefit from contracts or arrangements or transactions and to be repaid expenses and
to be indemnified to the same extent mutatis mutandis as if he were a Director but he
shall not be entitled to receive from the Company in respect of his appointment as
alternate Director any remuneration except only such part (if any) of the remuneration
otherwise payable to his appointor as such appointor may by notice in writing to the
Company from time to time direct.
	 
	 	 	 	 
	

	 	(D)
	 	Section 153B(1) of the Ordinance shall not apply to an alternate Director
appointed pursuant to these Articles.

Reserve Director

	 	 	 	 	 
	104.

	 	(A)
	 	In case the Company has only one Member and that Member is the sole Director of the
Company, subject to the Ordinance, the Company may in general meeting, notwithstanding
anything in these Articles, nominate a person (other than a body corporate) who has attained
the age of 18 years as a reserve Director of the Company to act in the place of the sole
Director in the event of his death.
	 
	 	 	 	 
	

	 	(B)
	 	The nomination of a person as a reserve Director of the Company ceases to be
valid if:

	 	(a)  	before the death of the Director in respect of whom he was
nominated,

	 	(i)  	he resigns as reserve Director; or
	 
	 	(ii)  	the Company in general meeting revokes the
nomination; or

	 	(b)  	the Director in respect of whom he was nominated ceases to be
the sole Member and sole Director of the Company for any reason other than the
death of that Director.

42

 

	 	 	 	 	 
	 

	 	(C)
	 	Subject to compliance with the conditions set out in Article 104(D), in the
event of the death of the Director in respect of whom the reserve Director is
nominated, the reserve Director shall be deemed to be a Director of the Company for
all purposes until such time as:

	 	(a)  	a person is appointed as a Director of the Company in
accordance with these Articles; or
	 
	 	(b)  	he resigns from his office of Director,

	 	 	 	 	 
	 

	 	 	 	whichever is the earlier.
	 
	 	 	 	 
	

	 	(D)
	 	The conditions referred to in Article 104(C) are:

	 	(a)  	the nomination of the reserve Director has not ceased to be
valid under Article 104(B); and
	 
	 	(b)  	the reserve Director is not prohibited by law from acting as
a Director of the Company.

	 	 	 	 	 
	 

	 	(E)
	 	The provisions in these Articles relating to the resignation of Directors
apply to a reserve Director appointed under this Article.

Secretary

	 	 	 	 	 
	105.

	 	(A)
	 	The Secretary shall be appointed by the Directors for such term, at such remuneration and
upon such conditions as they may think fit and any Secretary so appointed may be removed by
them. Anything by the Ordinance or the Articles required or authorised to be done by or to
the Secretary, may be done by or to any assistant or deputy secretary or if there is no
assistant or deputy secretary capable of acting, by or to any officer of the Company
authorised generally or specially in that behalf by the Directors. In the event that the
Secretary appointed is a corporation, it may act and sign by the hand of any one or more of
its Directors or officers duly authorised.
	 
	 	 	 	 
	

	 	(B)
	 	The Secretary shall, if an individual, ordinarily reside in Hong Kong and, if
a body corporate, have its registered office or a place of business in Hong Kong. In
case the Company has only one Director, the sole Director shall not also be the
Secretary of the Company and the Company shall not have as its Secretary a body
corporate the sole Director of which is the sole Director of the Company.

43

 

	 	 	 	 	 
	

	 	(C)
	 	A provision of the Ordinance or the Articles requiring or authorising a thing
to be done by or to a Director and the Secretary shall not be satisfied by its being
done by or to the same person acting both as Director and as, or in place of, the
Secretary.

Cheques

	106.  	All cheques, promissory notes, drafts, bills of exchange, and other negotiable or
transferable instruments, and all receipts for moneys paid to the Company, shall be signed,
drawn, accepted, endorsed or otherwise executed, as the case may be, in such manner as the
Directors shall from time to time by resolution determine.

The Seal

	107.  	The Directors shall provide for safe custody of the Seal which shall only be used with the
authority of the Directors or of a committee authorised by the Directors in that behalf; and
every instrument to which the Seal shall be affixed shall be signed by one Director or the
Secretary or by some other person appointed by the Directors for the purpose.

	108.  	The Company may exercise the powers conferred by the Ordinance with regard to having an
official seal for use outside Hong Kong and such powers shall be vested in the Directors.

Dividends and Reserves

	109.  	The Company in general meeting may declare dividends, but no dividend shall exceed the amount
recommended by the Directors.

	110.  	The Directors may from time to time pay to the Members such interim dividends as appear to
the Directors to be justified by the profits of the Company.

	111.  	No dividend shall be paid otherwise than out of profits available for the purpose and in
accordance with the Ordinance.

	112.  	The Company may upon the recommendation of the Directors by ordinary resolution direct
payment of a dividend in whole or in part by the distribution of specific assets (and in
particular of paid up shares or debentures of any other company) and the Directors shall give
effect to such resolution, and where any difficulty arises in regard to such distribution, the
Directors may settle the same as they think expedient and fix the value for distribution of
such specific assets or any part thereof and may determine that cash payments shall be made to
any Member upon the footing of the value so fixed in order to adjust the rights of all parties
and may vest any such specific assets in trustees as may seem expedient to the Directors.

44

 

	113.  	Subject to the rights of persons, if any, entitled to shares with special rights as to
dividends, all dividends shall be declared and paid according to the amounts paid or credited
as paid on the shares in respect whereof the dividend is paid, but no amount paid on a share
in advance of calls shall be treated for the purposes of this Article as paid on the share.
All dividends shall be apportioned and paid proportionately to the amounts paid or credited as
paid on the shares during any portion or portions of the period in respect of which the
dividend is paid; but if any share is issued on terms providing that it shall rank for
dividend as from a particular date such share shall rank for dividend accordingly. The
Directors may deduct from any dividend payable to any Member all sums of money (if any)
presently payable by him to the Company on account of calls or otherwise in relation to the shares of the Company.
	 
	114.  	The Directors may, before recommending any dividend, set aside out of the profits of the
Company such sums as they think proper as a reserve or reserves which shall, at the discretion
of the Directors, be applicable for meeting contingencies, or for equalizing dividends, or for
any other purpose to which the profits of the Company may be properly applied, and pending
such application may, at the like discretion, either be employed in the business of the
Company or be invested in such investments (other than shares of the Company) as the Directors
may from time to time think fit and the Directors may also without placing the same to reserve
carry forward any profits.
	 
	115.  	If several persons are registered as joint holders of any share, any one of them may give an
effectual receipt for any dividend or other moneys payable on or in respect of the share.
	 
	116.  	Any dividend may be paid by cheque or warrant sent through the post to the registered address
of the Member or person entitled thereto or in the case of joint holders to any one of such
joint holders at his registered address or to such person at such address as the Member or
person entitled or such joint holders (as the case may be) may direct. Every such cheque or
warrant shall be made payable to the order of the person to whom it is sent or to the order of
such other person as the Member or person entitled or such joint holders (as the case may be)
may direct.
	 
	117.  	No dividend shall bear interest against the Company.
	 
	118.  	The Directors may, with the sanction of a resolution of the Company, capitalise any sum
standing to the credit of any of the Company’s reserve accounts (including share premium
account and capital redemption reserve fund) or any sum standing to the credit of any profit
and loss account or otherwise available for distribution by appropriating such sum to the
holders of shares in the proportions in which such sum would have been divisible amongst them
had the same been a distribution of profits by way of dividend and applying such sum on their
behalf in or towards paying up any amount for the time being unpaid on any shares held by them
respectively or in paying up in full unissued

45

 

	   	shares (or, subject to any special rights previously conferred on any shares or class of shares
for the time being issued, unissued shares of any other class not being redeemable shares) for
allotment and distribution credited as fully paid up to and amongst them in the proportion
aforesaid, or partly in the one way and partly in the other. Notwithstanding the foregoing, the
share premium account and a capital redemption reserve fund may, for the purposes of this
Article, only be applied in the paying up of unissued shares to be allotted to Members as fully
paid bonus shares. The Directors may do all acts and things considered necessary or expedient
to give effect to any such capitalisation, with full power to the Directors to make such
provisions as they think fit for the case of shares becoming distributable in fractions
(including provisions whereby the benefit of fractional entitlements accrue to the Company
rather than to the Members concerned). The Directors may authorise any person to enter on
behalf of all the Members interested into an agreement with the Company providing for any such
capitalisation and matters incidental thereto and any agreement made under such authority shall
be effective and binding on all concerned.
	 
	119.  	       The payment by the Directors of any unclaimed dividend or other moneys payable on or in
respect of a share into a separate account shall not constitute the Company a trustee in
respect thereof and any dividend unclaimed after a period of 12 years from the date of
declaration of such dividend shall be forfeited and shall revert to the Company.

Record Dates

	120.  	       Notwithstanding any other provision of these Articles the Company or the Directors may fix
any date as the record date for any dividend, distribution, allotment or issue and such record
date may be on or at any time before or after any date on which such dividend, distribution,
allotment or issue is declared, paid or made.

Accounts

	121.  	       The Directors shall cause proper books of account to be kept with respect to:

	 	(a)  	all sums of money received and expended by the Company and the matters in
respect of which the receipt and expenditure takes place;
	 
	 	(b)  	all sales and purchases of goods by the Company; and
	 
	 	(c)  	the assets and liabilities of the Company.

Proper books shall not be deemed to be kept if there are not kept such books of account as
are necessary to give a true and fair view of the state of the Company’s affairs and to
explain its transactions.

46

 

	122.  	The books of account shall be kept at the Office or, subject to the Ordinance, at such other
place or places as the Directors think fit, and shall always be open to the inspection of any
Director.
	 
	123.  	The Directors shall from time to time determine whether and to what extent and at what times
and places and under what conditions or regulations the accounts and books of the Company or
any of them shall be open to the inspection of Members not being Directors, and no Member (not
being a Director) shall have any right of inspecting any account or book or document of the
Company except as conferred by statute or authorised by the Directors or by the Company in
general meeting.
	 
	124.  	The Directors shall from time to time, in accordance with sections 122, 124 and 129D of the
Ordinance, cause to be prepared and to be laid before the Company in general meeting such
profit and loss accounts, balance sheets, group accounts (if any) and reports as are referred
to in those sections.
	 
	125.  	Subject to section 129G of the Ordinance, a copy of every balance sheet (including every
document required by law to be annexed thereto) which is to be laid before the Company in
general meeting, together with a copy of the Directors’ report and a copy of the auditors’
report, shall not less than 21 days before the date of the meeting be sent to every Member,
and every holder of debentures of the Company and to all persons other than Members or holders
of debentures of the Company, being persons entitled to receive notices of general meetings of
the Company provided that this Article shall not require a copy of those documents to be sent
to any person of whose address the Company is not aware or to more than one of the joint
holders of any shares or debentures.

Branch Registers

	126.  	The Company may exercise the powers conferred by the Ordinance and may cause to be kept in
any place outside Hong Kong a branch register of Members. The Board of Directors may, subject
to the Ordinance, make or vary from time to time such provisions as it thinks fit respecting
the keeping of any such branch register and the transfer of shares to, on or from any such
branch register and shall comply with the requirements of any local law.

Audit

	127.  	Auditors shall be appointed and their duties regulated in accordance with the Ordinance.

47

 

Notices

	128.  	Any notice or other communication (except the appointment of a Secretary) between the
Company, any Director or Member may be given personally or effected in writing or by any other
means in the form of an electronic record at the recipient’s postal or electronic address. A
Member who (having no registered address in Hong Kong) has not supplied to the Company an
address, cable, telex, or electronic address for the service of notices shall not be entitled
to receive notices from the Company.
	 
	129.  	Where a notice is sent:

	 	(a)  	by post, service of the notice shall be deemed to be effected by properly
addressing, prepaying, and posting a letter containing the notice, and to have been
effected in the case of a notice of a meeting sent to a Member at his registered
address in Hong Kong at the expiration of 48 hours after the letter containing the
same is posted, and in any other case at the time at which the letter would be
delivered in the ordinary course of post, provided always that notices despatched to
addresses outside Hong Kong shall be sent by air mail; or
	 
	 	(b)  	by telex when despatched with confirmed answerback (in the case of any notice
made by telex); or
	 
	 	(c)  	by telegraph or cable, 24 hours after delivery to the telegraph or cable
company; or
	 
	 	(d)  	by facsimile or electronic means, on transmission provided that the
transmission records reveal that the facsimile or electronic means has no error or
break.

	130.  	A notice may be given by the Company to the joint holders of a share by giving the notice to
the joint holder named first in the Register in respect of the share.
	 
	131.  	A notice may be given by the Company to the persons entitled to a share in consequence of the
death or bankruptcy of a Member by sending it to them, or by the title of representatives of
the deceased, or trustee of the bankrupt, or by any like description, by the means set out in
Articles 128 and 129, supplied for the purpose by the persons claiming to be so entitled, or
by giving the notice in any manner in which the same might have been given if the death or
bankruptcy had not occurred.
	 
	132.  	Any person who, by operation of law, transfer or other means whatsoever, becomes entitled to
any share shall be bound by every notice in respect of such share which, prior to his name and
address being entered in the Register, shall have been duly given to the person from whom he
derived his title to such share.

48

 

Destruction of Documents

	133.  	The Company may destroy:

	 	(a)  	any share certificate which has been cancelled at any time after the expiry of one
year from the date of such cancellation;
	 
	 	(b)  	any dividend mandate or any variation or cancellation thereof or any
notification of change of name or address at any time after the expiry of 2 years from
the date of such mandate, variation, cancellation or notification was recorded by the
Company;
	 
	 	(c)  	any instrument of transfer of shares which has been registered at any time
after the expiry of six years from the date of registration; and
	 
	 	(d)  	any other document on the basis of which any entry in the Register is made at
any time after the expiry of 6 years from the date an entry in the Register was first
made in respect of it; and it shall conclusively be presumed in favour of the Company
that every share certificate so destroyed was a valid certificate duly and properly
cancelled and that every instrument of transfer so destroyed was a valid and effective
instrument duly and properly registered and that every other document destroyed
hereunder was a valid and effective document in accordance with the recorded
particulars thereof in the books or records of the Company, provided always that:-

	 	(i)  	the foregoing provisions of this Article shall apply only to
the destruction of a document in good faith and without express notice to the
Company that the preservation of such document was relevant to a claim;
	 
	 	(ii)  	nothing contained in this Article shall be construed as
imposing upon the Company any liability in respect of the destruction of any
such document earlier than as aforesaid or in any case where the conditions of
proviso (a) above are not fulfilled; and
	 
	 	(iii)  	references in this Article to the destruction of any
document include references to its disposal in any manner.

Winding Up

	134.  	If the Company is wound up and the assets available for distribution amongst the Members as
such are insufficient to repay the whole of the paid-up capital, such assets

49

 

	   	shall be distributed so that as nearly as may be the losses shall be borne by the Members in
proportion to the capital paid up or which ought to have been paid up at the commencement of
the winding up on the shares held by them respectively. If in a winding up the assets
available for distribution among the Members are more than sufficient to repay the whole of the
capital paid up at the commencement of the winding up, the excess shall be distributed amongst
the Members in proportion to the nominal capital at the commencement of the winding up paid up
by them respectively. This Article shall not add to or detract from the rights of the holders
of shares issued upon special terms and conditions.
	 
	135.  	No fee or commission shall be paid by the Company to any Director or liquidator upon any sale
or realisation of the Company’s undertaking or assets or any part thereof except with the
sanction of a general meeting convened by notice specifying the fee or commission proposed to
be paid.
	 
	136.  	If the Company shall be wound up (whether voluntarily or otherwise) the liquidator may, with
the sanction of a special resolution of the Company and any other sanction required by the
Ordinance, divide amongst the Members in specie or kind the whole or any part of the assets of
the Company (whether they shall consist of property of the same kind or not) and may, for such
purpose, set such value as he deems fair upon any property to be divided as aforesaid and may
determine how such division shall be carried out as between the Members or different classes
of Members. The liquidator may, with the like sanction, vest the whole or any part of such
assets in trustees upon such trusts for the benefit of the contributories as the liquidator,
with the like sanction, shall think fit, but so that no Member shall be compelled to accept
any shares or other securities whereon there is any liability.

Indemnity

		
	137. (A) 	Subject to the provisions of and so far as may be permitted by the Ordinance, the Company
may indemnify any officer of the Company against all costs, charges, losses, expenses and
liabilities which he may sustain or incur in or about the execution and discharge of his
duties or in relation thereto including any liability incurred by him:

	 	(a)  	in defending any proceedings, whether civil or criminal, in
which judgment is given in his favour or in which he is acquitted; or
	 
	 	(b)  	in connection with any application under section 358 of the
Ordinance in which relief is granted to him by the court.

	 	(B)  	The Company may purchase and maintain for any officer of the Company:

50

 

	 	(a)  	insurance against any liability to the Company, a related
company or any other party in respect of any negligence, default, breach of
duty or breach of trust (save for fraud) of which he may be guilty in relation
to the Company or a related company; and
	 
	 	(b)  	insurance against any liability incurred by him in defending
any proceedings, whether civil or criminal, taken against him for any
negligence, default, breach of duty or breach of trust (including fraud) of
which he may be guilty in relation to the Company or a related company.

	 	(C)  	Subject to section 165 of the Ordinance, if any Director and/or other person
shall become personally liable for the payment of any sum primarily due from the
Company, the Directors may execute or cause to be executed any mortgage, charge, or
security over or affecting the whole or any part of the assets of the Company by way
of indemnity to secure the Director and/or person so becoming liable as aforesaid from
any loss in respect of such liability.

51

 

Schedule 4

Deed of Adherence

DATE:

By this Deed we

having our registered office at

of

intending to become a shareholder of [           ] Limited (“the Company”) hereby agree with
the Company and each of its shareholders to comply with and to be bound by all of the provisions of
a Joint Venture Agreement dated [           ] 2005 between Biotechnology Research Corporation
Limited and Geron Corporation (a copy of which has been delivered to us and which we have
initialled and attached hereto for identification) in all respects as if we were a party to such
Agreement and were named therein as a Shareholder with the same rights and obligations as the
transferor Shareholder from whom we intend to acquire shares in the Company, and a Party and on the
basis that references therein to each of Shareholder and Party include a separate reference to us.

This Deed shall be governed by and construed in accordance with the laws of Hong Kong.

IN WITNESS WHEREOF this Deed has been executed by us and is intended to be and is hereby delivered
on the date appearing at the head hereof.

	 	 	 	 	 	 	 
	THE COMMON SEAL

	 	 	)	 	 	 
	of [                ]

	 	 	)	 	 	 
	was affixed to this Deed

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 

	 	 	 
	

	 	 
	

	 	Director
	 
	 
	 	 
	

	 	 
	

	 	Director/Secretary

52

 

Schedule 5

Pre-Emption Provisions

	(A)  	The Directors in their absolute discretion and without assigning any reason therefor may
decline to register any transfer of shares which are not fully paid and shall refuse to
register any transfer of shares if registration thereof would cause the number of Shareholders
to exceed the number permitted under the Articles of Association. The Directors shall not
register a transfer to a person who is known to them to be an infant, bankrupt or person of
unsound mind provided that the Directors shall not be bound to enquire into the age or
soundness of mind of any transferee or whether or not he is a bankrupt.
	 
	(B)  	Save as provided in paragraph (I) of this Schedule and subject to any agreement between all
of the Shareholders no transfer or disposal of any shares or any interest in any shares shall
be made by a Shareholder except in compliance with the following provisions of this Schedule
and no Shareholder shall otherwise sell, mortgage, charge or otherwise dispose of or encumber
any shares or assign or otherwise purport to deal with the beneficial interest therein or any
right in relation thereto separate from the legal interest.
	 
	(C)  	A Shareholder shall be entitled to transfer its shares to a Third Party who has made a bona
fide offer therefor provided that before transferring its shares such Shareholder (the
“Transferor”) shall give a notice in writing (a “Transfer Notice”) to the other Shareholder
(the “Recipient”) that it desires to transfer the same. The Transfer Notice shall specify:

	 	(a)  	the number of shares which the Transferor wishes to transfer (which may be
all or part only of the shares then held by the Transferor) (the “Relevant Shares”);
	 
	 	(b)  	the name of the Third Party who has made the bona fide offer for the Relevant
Shares (the “Prospective Purchaser”);
	 
	 	(c)  	the price which the Prospective Purchaser has offered for the Relevant
Shares; and
	 
	 	(d)  	details of any other material terms of the offer made by the Prospective
Purchaser and any other material terms or circumstances known to the Transferor which
affect or may affect the offer.

	(D)  	The Recipient may within a period of one month after the Transfer Notice is given require the
Transferor to produce to it such further evidence as it may reasonably

53

 

	   	require to enable it to establish the bona fides of the offer by the Prospective Purchaser.
	 
	(E)  	The Recipient shall be entitled within a period of three months after the Transfer Notice is
given, or, if later, the provision to it of such further evidence, to serve a purchase notice
(a “Purchase Notice”) on the Transferor requiring it to sell the Relevant Shares to it at the
same price and on the same terms as those offered by the Prospective Purchaser (as set out in
the Transfer Notice).
	 
	(F)  	Subject to paragraph (H) of this Schedule, if the Recipient serves a Purchase Notice within
the said three month period referred to in paragraph (E), the Transferor shall be bound upon
payment to transfer such of the Relevant Shares to the Recipient as he has applied for. The
purchase shall be completed at a place and time to be appointed by the Directors being not
less than three days nor more than ten days after the Purchase Notice is served and the
Directors shall be bound to register the transfer.
	 
	(G)  	If the Recipient has not served a Purchase Notice within the period referred to in paragraph
(E), the Transferor shall be entitled to sell the Relevant Shares to the Prospective Purchaser
at the price and on the terms set out in the Transfer Notice provided that if such sale is not
completed within six months after the Transfer Notice is given the right to sell the Relevant
Shares to the Prospective Purchaser shall lapse. The Directors shall be bound to register a
transfer effected pursuant to this paragraph (G).
	 
	(H)  	If Purchase Notices shall have been served in respect of part only of the Relevant Shares,
the Transferor shall be entitled to sell the remaining Relevant Shares to the Prospective
Purchaser in accordance with the provisions of paragraph (G) of this Schedule or by notice in
writing to the Recipient may withdraw all the Relevant Shares from sale in which event the
Transfer Notice shall be deemed to have been withdrawn and no transfers shall take place.
	 
	(I)  	The foregoing provisions of this Schedule shall not apply to any transfer to which the
consent in writing of all the Shareholders for the time being is given.

 

 

Schedule 6

Agreed Accounting Policies 

The Company’s accounts shall be maintained in accordance with Generally Accepted Accounting
Principles (“GAAP”) of Hong Kong. The Company shall produce quarterly and annual financial
statements in accordance with Hong Kong GAAP and separate quarterly and annual financial statements
in accordance with U.S. GAAP.

The Company shall provide quarterly financial information to Geron by the 12th calendar day
following the end of each calendar quarter and annual financial information by the 20th calendar
day following the end of each calendar year, so as to permit Geron to prepare any necessary
consolidating or consolidated financial statements. The Company shall engage a “Big Four” public
accounting firm to be its auditors and conduct an annual audit of financial information as of and
for the year ended December 31. At Geron’s reasonable request, the Company shall adopt such
policies or procedures with respect to internal controls, conduct such audits, if any, and provide
to Geron such documents and information, if any, as are reasonably necessary to permit Geron to
comply and its external auditor to assess Geron’s compliance with Section 404 of the U.S.
Sarbanes-Oxley Act of 2002 with respect to Geron’s consolidated financial statements, provided that
the Company shall have no obligation to do so to the extent doing so would violate Hong Kong GAAP.

 

 

Schedule 7

Funding Schedule

1. Phase I

	1.1  	During Phase I, BRC shall contribute US$6,000,000 to the Company (as payment towards its
partly paid A Share and payable in 6 equal quarterly payments at the beginning of each quarter
commencing from the commencement date of Phase I as shown in the Phase I Work Plan) to fund
development work of the Company pursuant to the Phase I Work Plan.
	 
	1.2  	During Phase I, Geron shall contribute US$2,000,000 to the Company for the Phase I Work Plan,
after BRC has contributed to the Company all of the US$6,000,000 pursuant to paragraph 1.1 (as
payment towards its partly paid A Share and payable in 2 equal quarterly payments commencing
three months after the date BRC has contributed a total of US$6,000,000 to the Company).
	 
	2.  	Phase II
	 
	2.1  	In addition to the payment in paragraph 1.1 above, BRC shall contribute an additional
aggregate sum of US$* of Phase II as payment towards its partly paid B Share.
	 
	2.2  	BRC may (but is not required to) contribute US$* to the Company for the Phase II Work Plan
(the “BRC Phase II Contribution”). BRC shall notify Geron and the Company in writing within
30 days after completion of Phase I whether it will make the BRC Phase II Contribution. BRC
shall be deemed to have elected to make the BRC Phase II Contribution if Geron and the Company
have not received written notice from BRC within such 30 day period stating that BRC will not
make this contribution. The BRC Phase II Contribution, if made, will be made as payment
towards its partly paid B Share and will be payable in 5 equal payments every 45 days
commencing 30 days after the date of commencement of Phase II.
	 
	2.3  	If BRC makes the BRC Phase II Contribution, all of the B Shares owned by BRC shall be
automatically converted into an equal number of new A Shares.
	 
	2.4  	Geron may (but is not required to) contribute to the Company US$2,000,000 for the Phase II
Work Plan (the “Geron Phase II Contribution”). Within 30 days after BRC has either (i) made
the BRC Phase II Contribution or (ii) notified Geron within the 30 day period described in
paragraph 2.2 above of its decision not to

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

 

 

make the BRC Phase II Contribution , whichever is later, Geron shall notify BRC and
the Company in writing whether it will make the Geron Phase II Contribution. Geron shall
be deemed to have elected to make the Geron Phase II Contribution if BRC and the Company
have not received written notice from Geron within such 30 day period stating that Geron
will not make this contribution. The Geron Phase II Contribution, if made, will be made as
payment towards its partly paid B Share and will be payable in 2 equal payments every 45
days commencing 45 days after the date of the last payment by BRC pursuant to paragraph 2.2
of this Schedule 7.

	2.5  	If Geron makes the Geron Phase II Contribution, all of the B Shares owned by Geron shall be
automatically converted into an equal number of A Shares.
	 
	2.6  	Subject to the completion of the automatic conversion of B Shares pursuant to paragraph 2.3
and/or paragraph 2.5 (if any, as the case may be), and as soon as practicable which in any
event shall be no later than ten (10) Business Days after either (i) BRC completes, or
notifies Geron of its election not to make, the BRC Phase II Contribution, or BRC fails to
complete the BRC Phase II Contribution in accordance with the timetable set out in paragraph
2.2 after BRC has elected or deemed to have elected to make the BRC Phase II Contribution, or
(ii) Geron completes, or notifies BRC of its election not to make, the Geron Phase II
Contribution, or Geron fails to complete the Geron Phase II Contribution in accordance with
the timetable set out in paragraph 2.4 after Geron has elected or deemed to have elected to
make the Geron Phase II Contribution, or (iii) BRC has contributed an aggregate sum of US$* to
the Company in accordance with paragraph 2.1 above, whichever is later, all outstanding B
Shares shall be redeemed by the Company and each of BRC and Geron shall cooperate with each
other and the Company and do and execute all such further acts, deeds, documents and things as
may be necessary for the Company to redeem all outstanding B Shares within such ten Business
Day period. In the event both BRC and Geron elect not to make their respective Phase II
Contributions, all of the B Shares owned by BRC and Geron shall be automatically converted
into an equal number of A Shares.
	 
	2.7  	By way of illustration only and subject at all times to the other provisions of this
Agreement (inclusive of the other provisions of this Schedule 7), immediately after the
conversion and/or redemption of all the B Shares:

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

 

 

	2.7.1  	if both BRC and Geron had either (i) made their respective contributions in
paragraphs 2.2 and 2.4 above or (ii) elect not to make their respective contributions
in paragraphs 2.2 and 2.4 above, each of BRC and Geron shall own 50% of the total
issued Shares (being 12,000 A Shares out of a total of 24,000 A Shares);
	 
	2.7.2  	if BRC did not make its contribution under paragraph 2.2 above but Geron did
make its contribution under paragraph 2.5 above, BRC shall own 25% of the total issued
Shares (being 4,000 A Shares out of a total of 16,000 A Shares) and shall be entitled
to appoint and remove up to two Directors and Geron shall own 75% of the total issued
Shares (being 12,000 A Shares out of a total of 16,000 A Shares) and shall be entitled
to appoint and remove up to four Directors; and
	 
	2.7.3  	if Geron did not make its contribution under paragraph 2.5 above but BRC did
make its contribution under paragraph 2.2 above, BRC shall own 60% of the total issued
Shares (being 12,000 A Shares out of a total of 20,000 A Shares) and shall be entitled
to appoint and remove up to four Directors and Geron shall own 40% of the total issued
Shares (being 8,000 A Shares out of a total of 20,000 A Shares) and shall be entitled
to appoint and remove up to two Directors.

 

 

Schedule 8

BRC Licence Agreement 

This Licence Agreement (the “Agreement”), effective 21st March, 2005, (the “Effective Date”), is
between Biotechnology Research Corporation Limited, a Hong Kong corporation whose registered office
is at The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong
(“BRC”), The Hong Kong University of Science and Technology, a Hong Kong corporation having a place
of business at Clear Water Bay, Kowloon, Hong Kong (“HKUST”), and TA Therapeutics Limited, a Hong
Kong limited company whose registered office is at The Hong Kong University of Science and
Technology, Clear Water Bay, Kowloon, Hong Kong (“Newco”).

RECITALS

WHEREAS, BRC and/or HKUST owns or controls certain natural materials, and substances derived
therefrom, as well as trade secrets and other Intellectual Property related to such natural
materials and substances or related to telomerase activation;

WHEREAS, BRC and Geron Corporation (“Geron”) have formed Newco to develop telomerase activation for
human therapeutic applications, pursuant to a Joint Venture Agreement dated March 1, 2005 (the “JV
Agreement”);

WHEREAS, under the JV Agreement BRC agrees to enter into and procure HKUST to enter into this
Agreement to grant to Newco licences in respect of the BRC Intellectual Property described above
including, without limitation, the BRC Background IP and the BRC Existing IP;

WHEREAS, the BRC Existing IP and the BRC Background IP include Intellectual Property that may be
owned or controlled by HKUST;

NOW, THEREFORE, BRC, HKUST and Newco agree as follows:

AGREEMENT

1. Definitions.

As used throughout this Agreement, the following terms shall have the meanings set forth below.
Capitalized terms not defined in this Agreement shall have the meanings set forth in the JV
Agreement.

1.1. “Derivative Compound” means any molecule or substance derived by or on behalf of Newco
from any Existing Compound, including, without limitation, any modification, purification,
analog, or synthetic reproduction of any Existing Compound.

 

 

1.2. “Existing Compound” shall have the meaning set forth in the JV Agreement.

1.3. “Field of Use” shall have the meaning set forth in the JV Agreement.

1.4. “BRC Background IP” shall have the meaning set forth in the JV Agreement. BRC
Background IP includes, without limitation, the HKUST Background IP.

1.5. “BRC Existing IP” shall have the meaning set forth in the JV Agreement. BRC Existing
IP includes, without limitation, the Existing IP set forth in Exhibit A to this Agreement
and the HKUST Existing IP.

1.6. “BRC Trade Secrets” means any and all information provided by BRC or HKUST to Newco
hereunder which, at the time of disclosure, qualifies as a trade secret within the meaning
of the Uniform Trade Secrets Act, including, without limitation, information regarding the
identity, source, structure and composition of any Existing Compound.

1.7. “HKUST Background IP” means present or future Intellectual Property other than the
HKUST Existing IP, (i) which is owned by or licensed to HKUST or any of the Affiliated
Companies Controlled by HKUST, under which HKUST or such Affiliated Company is legally
permitted to grant licences or sublicences as the case may be, and (ii) a licence under
which is necessary for the development and/or commercialisation of products in the Field of
Use.

1.8. “HKUST Existing IP” means the Intellectual Property that exists on the Effective Date
to the extent it is directed to TA or TA Compounds and that is owned by or licensed to
HKUST or any of the Affiliated Companies Controlled by HKUST, under which HKUST or such
Affiliated Company is legally permitted to grant licences or sublicences as the case may
be. HKUST Existing IP includes, without limitation, the Existing IP set forth in Exhibit B
to this Agreement.

1.9. “Human Therapeutics” shall have the meaning set forth in the JV Agreement.

1.10. “Licensed Products” means any and all products within the Field of Use that (a)
contain or incorporate any Existing Compound or Derivative Compound, (b) are created,
developed, or result from the use of any Existing Compound or Derivative Compound, or
further purification thereof, or from the use of any BRC Trade Secret, or (c) would, but
for the rights granted hereunder, infringe one or more Valid Claims of any BRC Existing IP
or BRC Background IP.

1.11. “Territory” means the entire world.

Page 2

 

 

1.12. “Valid Claim” means an unexpired claim in a pending patent application or in a
granted or issued patent which has not been revoked, abandoned, disclaimed or withdrawn, or
held unenforceable, unpatentable or invalid by a court of competent jurisdiction, or
unappealable or unappealed within the time allowed for appeal; and which has not been
rendered unenforceable.

2. Grant of Licence.

2.1. BRC Existing IP. BRC and HKUST hereby grant, and each of them procures that the
Affiliated Companies Controlled by it shall grant, to Newco, on the terms and conditions of
this Agreement, a fully paid-up exclusive licence in respect of the BRC Existing IP,
throughout the Territory and in the Field of Use, to develop, make, have made, use, sell or
have sold, commercialise or otherwise exploit the Licensed Products. Newco shall have the
right to grant sublicences under the licence granted in this Section 2.1, provided that
Newco shall remain responsible for the compliance by the sublicencee with all applicable
terms of this Agreement.

2.2. BRC Background IP. BRC and HKUST hereby grant, and each of them procures that the
Affiliated Companies Controlled by it shall grant, to Newco, on the terms and conditions of
this Agreement, a fully paid-up non-exclusive licence in respect of the BRC Background IP,
throughout the Territory and in the Field of Use, to develop, make, have made, use, sell or
have sold, commercialise or otherwise exploit the Licensed Products in the Field of Use.
Newco shall have the right to grant sublicences under the licence granted in this Section
2.2 but only to sublicencees under the licence granted in Section 2.1 and for use only in
connection with such sublicencee’s exercise of the sublicence to develop, make, have made,
use, sell or have sold Licensed Products in the Field of Use, provided that Newco shall
remain responsible for the compliance by the sublicencee with all applicable terms of this
Agreement.

2.3. Associated Obligations. The licences granted under Sections 2.1 and 2.2, and any
sublicenses granted thereunder, are subject to the terms and conditions of any licence
agreements under which the licensor holds the BRC Existing IP or BRC Background IP in
question, to the extent such terms and conditions apply to such licences or sublicences,
including without limitation any applicable royalty, reporting, and indemnification
provisions. BRC and HKUST have provided to Newco copies of the licence agreements
applicable to the BRC Existing IP, and upon Newco’s request will provide copies of any
license agreements applicable to any BRC Background IP that BRC or Newco identifies is
being used by Newco.

3. Patent Prosecution and Defense. BRC (or HKUST with respect to BRC Background IP owned by
HKUST) shall have the sole right to control the preparation, filing, prosecution and maintenance of
the BRC Existing IP and the BRC Background IP and other legal proceedings relating thereto, at
BRC’s expense and in BRC’s sole discretion, provided that BRC or HKUST, as the case may be, will
consider in good faith Newco’s interests in making any decision with respect to BRC Existing IP
that materially affects Newco’s interests.

Page 3

 

 

4. Use of Name and Logo. If and to the extent that any Licensed Products marketed by Newco
and its permitted sublicencees have been developed using Intellectual Property of BRC or HKUST,
such products will indicate that they are marketed under licence from BRC or HKUST (as the case may
be). In such cases, product packaging and marketing materials will be submitted to BRC or HKUST
(as the case may be) for review and approval (which approval will not be unreasonably withheld or
delayed) with respect to use of the name and logo of BRC or HKUST (as the case may be), at least
thirty (30) days prior to use or dissemination by Newco. BRC or HKUST (as the case may be) shall
be deemed to have approved the use of the name and logo of BRC or HKUST (as the case may be) in
respect of the submitted product packaging and marketing materials, unless Newco receives written
notice from BRC or HKUST (as the case may be) within 14 days of Newco’s submission rejecting such
use of the name and logo of BRC or HKUST (as the case may be) by Newco. Any other use of the name
“BRC,” “Biotechnology Research Corporation”, “HKUST” or “Hong Kong University of Science and
Technology” or the logo of BRC or HKUST, or the name of any employee of BRC or HKUST, will require
the written agreement of BRC or HKUST (as the case may be).

5. Compliance with Law; Government Approvals. In its development and marketing of Licensed
Products and its other activities under this Agreement, Newco shall comply in all respects with all
applicable laws and regulations. Newco shall obtain all governmental approvals necessary for the
research, development, testing, production, distribution, sale, and use of Licensed Products in the
Field of Use.

6. Confidentiality.

6.1. Confidential Information. “Confidential Information” means all non-public and/or
proprietary information owned or possessed by the disclosing party and specifically
designated as such. Confidential Information includes, without limitation, any methods,
techniques and processes, and technical and scientific data, unpublished findings,
biological material, know-how, specifications, patent applications, algorithms, programs,
designs, drawings, and formulae, and engineering, manufacturing, marketing, development,
sales, research, operations, financial and business plans and data disclosed by a party to
the other party hereunder. Confidential Information of BRC and/or HKUST (as the case may
be) includes, without limitation, BRC Trade Secrets. Each party shall ensure that written
confidential information is marked “confidential” or with a comparable marking and that
confidential information not disclosed in writing is reduced to writing and marked as
“confidential” or with a comparable marking within thirty (30) days of disclosure, provided
that information (other than scientific know-how and scientific techniques) exchanged by
the parties hereunder or otherwise that relates to the business or operations of Newco
shall be treated as confidential whether or not so marked.

6.2. Confidentiality Obligations. In the course of this Agreement, any of the parties may
disclose Confidential Information to any other party. Except as expressly set forth in
this Agreement, during the Term of this Agreement or a period of four (4) years from
receipt thereof, whichever is longer, the recipient of

Page 4

 

 

the Confidential Information will use such information only for purposes of performing its
obligations and/or exercising its rights under this Agreement, and will not disclose such
information except to its employees and consultants and, in the case of Newco, permitted
sublicencees, for those purposes. Each of the parties will ensure that its employees,
consultants or permitted sublicencees who receive access to the other party’s Confidential
Information are legally obligated to maintain the confidentiality of such Confidential
Information, and such party shall be responsible for the compliance of its employees,
consultants or permitted sublicencees. Each party represents to the others that the terms
of this Section 6 do not conflict with any of the representing party’s obligations to any
other person or entity. For the avoidance of doubt, this Section 6 shall not affect or
limit Newco’s right to fully exercise or use the licences granted under this Agreement
according to the terms of such licenses.

6.3. Exceptions to Confidentiality. The restrictions on use and disclosure of Confidential
Information shall not apply to information to the extent any of the following is true:

	 	(a)  	the information is now, or hereafter becomes, through no act
or failure to act on the part of the recipient, generally known or available
to the public;
	 
	 	(b)  	the information is known by the recipient or is already in
the possession of the recipient before it receives the information from the
disclosing party;
	 
	 	(c)  	the information is furnished to the recipient by a third
party who did not acquire the information directly or indirectly from the
disclosing party under an obligation of confidentiality to the disclosing
party or otherwise under circumstances in which such third party did not have
the legal right to acquire and furnish to the recipient the information in
question;
	 
	 	(d)  	the information is independently developed by the recipient
without use or knowledge of the Confidential Information;
	 
	 	(e)  	the information is required by law or by order of any court
or governmental authority to be disclosed by the recipient. In the event of
such compulsory disclosure, however, the recipient shall use reasonable
efforts to give the disclosing party sufficient advance written notice to
enable it to seek a protective order or other remedy to protect such
Confidential Information. The recipient shall use reasonable efforts to
disclose only the minimum Confidential Information required to be disclosed,
whether or not a protective order or other remedy is in place;

Page 5

 

 

	 	(f)  	the information is made available by the disclosing party to
a third party without similar restrictions; or
	 
	 	(g)  	the information (i) does not relate to the business or
operations of Newco or is scientific know-how or scientific techniques and
(ii) is not disclosed in writing or reduced to writing and marked as
“confidential” or with a comparable marking within thirty (30) days of
disclosure.

7. Term and
Termination.

7.1. Term. The term of this Agreement shall begin on the Effective Date and expire when all
Valid Claims under the BRC Existing IP and the BRC Background IP have expired in every
country and jurisdiction in the Territory. In any country or jurisdiction which does not
have any Valid Claims under the BRC Existing IP or the BRC Background IP, Newco shall be
entitled to fully exploit the BRC Existing IP and the BRC Background IP in such country or
jurisdiction without any restriction or payment of royalties in any form arising under this
Agreement.

7.2. Termination. This Agreement may be terminated:

	 	(a)  	by BRC upon sixty (60) days written notice to Newco for
Newco’s material breach of this Agreement, unless such breach is cured to
BRC’s reasonable satisfaction within said sixty (60) day period; or
	 
	 	(b)  	by Newco upon sixty (60) days written notice to BRC and HKUST
for BRC’s or HKUST’s material breach of this Agreement or BRC’s breach of the
JV Agreement, unless such breach is cured to Newco’s reasonable satisfaction
within said sixty (60) day period; or
	 
	 	(c)  	by either BRC or HKUST upon written notice to Newco if Newco
files a voluntary petition in bankruptcy (or similar proceedings) or an
involuntary petition (or similar proceedings) is filed against it and not
dismissed within sixty (60) days of filing; or
	 
	 	(d)  	by Newco upon written notice to BRC and HKUST if either of
BRC or HKUST files a voluntary petition in bankruptcy (or similar proceedings)
or an involuntary petition (or similar proceedings) is filed against either of
them and not dismissed within sixty (60) days of filing.

In addition, this Agreement shall automatically
and immediately terminate as provided in Clause
13.1.1 of the JV Agreement if Newco is placed
in winding up pursuant to the provisions of
Clause 11 or 12 of the JV Agreement or
otherwise.

7.3. Effect of Termination.

Page 6

 

 

7.3.1. Termination of this Agreement shall not release either party from any
obligation accrued prior to such termination.

7.3.2. Effective upon termination of this Agreement for any reason, the licence
rights granted to Newco under this Agreement and all sublicences under such licence
rights shall terminate.

7.3.3.
Survival, Articles 1, 4, 5, 6 and 9 and Sections 7.3 and 10 hereof shall
survive expiration or termination of this Agreement for any reason.

8. Notices.

Any notice required to be given by a party to any other party may be made (i) by hand delivery by
Federal Express or comparable private courier service to the other party’s address given herein or
such other address as may from time to time be notified for this purpose or (ii) by facsimile
transmission to a facsimile number notified in writing by the other party for this purpose. Any
properly addressed notice served by hand shall be deemed to have been served on delivery and any
notice served by facsimile transmission shall be deemed to have been served when received, as shown
by a confirmed transmission report.

9. Representations and Warranties; Indemnification.

9.1. BRC’s Representations and Warranties. Each of BRC and HKUST affirmatively represents
and warrants, to and for the benefit of Newco, that the following statements are true and
accurate in all respects in respect of itself as of the Effective Date:

9.1.1. each of HKUST and BRC has all necessary rights, powers and authority to
enter into this Agreement, including without limitation the right to grant the
licences (or sublicences, as the case may be) contained herein;

9.1.2. each of HKUST’s and BRC’s performance under this Agreement, including
without limitation the grant of the licences contained herein, does not conflict
with or create a breach or a default of any law, order of a court, governmental
agency, contract, or other obligation with any third party;

9.1.3. to the best of HKUST’s and BRC’s knowledge and belief, neither the BRC
Existing IP nor the BRC Background IP is subject to any liens or similar
encumbrances and no party holds a valid security interest in any of the BRC
Existing IP or the BRC Background IP; and

9.1.4. there are no other licences or assignments granted by HKUST or BRC or any
Affiliated Company Controlled by BRC or Affiliated Company Controlled by HKUST in
effect in respect of the BRC Existing IP in the Field of Use.

Page 7

 

 

9.2. BRC’s Disclaimers. Each of HKUST and BRC expressly disclaims and does not represent,
warrant or otherwise guarantee Newco that:

9.2.1. any Intellectual Property licensed hereunder will not be held invalid or
unenforceable or that they will be of any particular scope;

9.2.2. anything made, used, or disposed of under any license granted in this
Agreement is or will be free from infringement of patents, copyrights, and other
rights of third parties;

9.2.3. actions or suits against third parties for infringement of any Intellectual
Property licensed hereunder which may be filed by BRC or HKUST will be brought or
prosecuted; or

9.2.4. by implication, estoppel, or otherwise any licenses or rights under patents
or other rights of BRC or HKUST or third parties other than expressly provided
herein are granted to Newco. EXCEPT AS EXPRESSLY SET FORTH HEREIN, EACH OF HKUST
AND BRC MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE INTELLECTUAL
PROPERTY LICENSED HEREUNDER, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS
FOR ANY PARTICULAR PURPOSE OR THAT INTELLECTUAL PROPERTY LICENSED HEREUNDER DOES
NOT INFRINGE ANY PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY.

9.3. Newco’s Representations and Warranties. Newco affirmatively represents and warrants
to and for the benefit of BRC and HKUST that the following statements are true and accurate
in all respects as of the Effective Date:

9.3.1. Newco has all necessary rights, powers and authority to enter into this
Agreement.

9.3.2. Newco’s performance under this Agreement does not conflict with or create a
breach or a default of any law, order or a court or governmental agency, contract,
or other obligation with any third party.

9.4. BRC’s Indemnification. Each of BRC and HKUST severally shall indemnify and hold
harmless Newco and its directors, officers and employees (collectively the “Newco
Indemnified Parties”) harmless against any and all liability, loss, damage, claim or
expense, including reasonable attorney’s fees and costs (collectively the “Indemnified
Losses”) arising out of or in connection with any breach by it of any of the
representations and warranties made by it in this Section 9.

9.5. Newco’s Indemnification. Newco agrees that it shall indemnify and hold harmless BRC
and HKUST and their respective directors, officers and employees (collectively the “BRC
Indemnified Parties”) harmless against any and all

Page 8

 

 

Indemnified Losses arising out of or in connection with any breach by Newco of any
representations or warranties made by Newco in this Section 9 and any and all Indemnified
Losses resulting from any use by Newco or Newco’s employees or sublicencees or customers of
the Licensed Products, Existing Compounds and Derivative Compounds; provided, however, that
Newco’s obligation to indemnify shall not apply to the extent that the Indemnified Losses
result from (i) the gross negligence or willful misconduct of a BRC Indemnified Party, or
(ii) breach by BRC or HKUST of any term of this Agreement. Subject to the other provisions
of this Section 9.5, Newco’s indemnification obligation includes, but is not limited to,
indemnification for any product liability claims against the Licensed Products.

9.6. Indemnity Procedures. Promptly after becoming aware of a claim, the indemnified party
shall provide written notice to the indemnifying party. Delay in providing such notice
shall relieve the indemnifying party of its obligations only if the indemnifying party’s
ability to defend against such claim is thereby materially impaired. The indemnifying
party shall have the right to assume and control the defense of the claim at its own
expense. The indemnified party shall have the right to participate in, but not to control,
such defense at its own expense. If the indemnifying party does not assume the defense of
the claim, the indemnified party may defend the claim at the indemnifying party’s expense.
The indemnified party shall not settle or compromise the claim without the prior written
consent of the indemnifying party, and the indemnifying party shall not settle or
compromise the claim in any manner which would have an adverse effect on the indemnified
party without the consent of the indemnified party. No consent required hereunder shall be
unreasonably withheld or delayed. The indemnified party shall reasonably cooperate with
the indemnifying party and shall make available to the indemnifying party all pertinent
information available to the indemnified party, all at its own expense.

9.7. Insurance. Newco shall, at its sole cost and expense, insure its activities under
this Agreement, and obtain and keep in force liability insurance in such amounts as may be
customary in the industry. Such insurance coverage shall not in any way limit the
liability of Newco. From and after the time Newco first uses a Licensed Product to treat a
human being (whether in a research or a commercial setting), the BRC Indemnified Parties
shall be endorsed as additional named insureds under the coverage referred to above. Upon
request by BRC or HKUST not more than once annually, Newco shall furnish BRC and HKUST with
certificates of insurance showing compliance with all requirements. Newco shall be
responsible for ensuring that its permitted sublicencees obtain and maintain in force
insurance in amounts equivalent to those required of Newco hereunder.

10. Newco Inventions. Nothing in this Agreement shall give BRC or HKUST any ownership or
licence rights or any obligations with respect to new inventions made by or on behalf of Newco,
including without limitation inventions that represent improvements to the BRC Existing IP and/or
the BRC Background IP. Each of HKUST and BRC acknowledges and agrees that, as provided in the JV
Agreement and subject to the rights

Page 9

 

 

of third parties, Newco will own all Collaboration Inventions (as that term is defined in the JV
Agreement) generated by or on behalf of Newco, its employees, secondees and contractors and
sub-contractors in the course of carrying out Newco’s business, including without limitation
Collaboration Inventions that represent improvements to the BRC Existing IP and/or the BRC
Background IP.

11. Miscellaneous.

11.1. Governing Law. This Agreement shall be governed and construed in accordance with the
laws of Hong Kong without regard to its rules regarding conflict of laws.

11.2. Consistency with JV Agreement. The provisions of this Agreement are intended to be
consistent with the provisions of the JV Agreement. In the event of any conflict or
inconsistency between this Agreement and the JV Agreement, the provisions of the JV
Agreement shall prevail and each party shall take all such further steps as may be
necessary or requisite to ensure that the provisions of the JV Agreement shall prevail.

11.3. Severability; Waiver. In the event that any provision(s) of this Agreement is
determined to be invalid or unenforceable, the remainder of the Agreement shall remain in
full force and effect. The failure of a party to enforce any provision shall not be a
waiver of the right to thereafter enforce that provision or any other provision or right.

11.4. Assignment. This Agreement shall not be assigned by any party without the prior
written consent of the other parties, except as part of a sale or transfer, by way of
merger or otherwise, of all or substantially all of the business assets of such party (or,
if such party is organized in divisions or other distinct business units, all of the
business assets of a division or unit engaged in activities in the Field of Use), and
provided further that the assignee agrees to be bound in writing by all the terms of this
Agreement in place of the assignor, and the assignor agrees to remain responsible for the
obligations of the assignee pursuant to the terms set forth herein.

11.5. Binding Upon Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of successors in interest and assigns of BRC, HKUST and Newco subject to
the limitations on assignment.

11.6. Counterparts. This Agreement may be fully executed in two (2) original counterparts,
each of which shall be deemed an original.

11.7. Entire Agreement. This Agreement and the JV Agreement constitute the entire agreement
between the parties, both oral and written, with respect to the subject matter hereof. No
amendment hereto shall be effective unless made in writing and executed by duly authorized
representatives of BRC, HKUST and Newco.

Page 10

 

 

IN WITNESS THEREOF, BRC, HKUST and Newco have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first written above.

	 	 	 	 	 	 	 
	BIOTECHNOLOGY
RESEARCH 

CORPORATION LIMITED	TA THERAPEUTICS LIMITED
	 
	 	 	 	 	 	 
	By:

	 	/s/ Roland Chin
	 	By:
	 	/s/ Chu Ching-wu
	

	 	 
	 	 	 	 
	

	 	Roland Chin
	 	 	 	Chu Ching-wu
	

	 	Director
	 	 	 	Director
	 
	 	 	 	 	 	 
	THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/. T. Eastham	 	 	 	 
	

	 	 	 	 	 	 

Page 11

 

 

Exhibit A

BRC Existing IP

NIL

Page 12

 

 

Exhibit B

HKUST Existing IP

NIL

Page 13

 

 

Schedule 9

BRC Services
Agreement

This Services Agreement (the “Agreement”), effective 21st March, 2005, (the “Effective
Date”), is between Biotechnology Research Corporation Limited, a Hong Kong corporation whose
registered office is at The Hong Kong University of Science and Technology, Clear Water Bay,
Kowloon, Hong Kong (“BRC”) and TA Therapeutics Limited, a Hong Kong limited company whose
registered office is at The Hong Kong University of Science and Technology, Clear Water Bay,
Kowloon, Hong Kong (“Newco”).

RECITALS

WHEREAS, BRC and Geron Corporation (“Geron”) have formed Newco to develop telomerase activation for
human therapeutic applications, pursuant to a Joint Venture Agreement dated March 1, 2005 (the “JV
Agreement”);

WHEREAS, under the JV Agreement BRC agrees to enter into this Agreement to perform certain services
for Newco;

NOW, THEREFORE, BRC and Newco agree as follows:

AGREEMENT

1. Definitions.

Capitalized terms not defined in this Agreement shall have the meanings set forth in the JV
Agreement.

2. Services.

2.1. Business Services. From time to time Newco and BRC may agree on certain business,
administrative, management or professional services (“Business Services”) that BRC will
perform or cause to be performed for Newco in accordance with the Operations Plan. The
scope, period of performance, expected cost, and other terms and conditions for such
Business Services, as agreed upon by Newco and BRC, will be set forth in a Business
Services Addendum to this Agreement, signed by both parties. The parties contemplate that
a separate Business Services Addendum will typically be executed for each distinct category
of Business Services.

2.2. Scientific Services. From time to time Newco and BRC may agree on certain scientific
research and development work (“Scientific Services”) that BRC will perform or cause to be
performed for Newco in accordance with the Operations Plan. The scope, period of
performance, expected cost, and other terms and conditions for such Scientific Services, as
agreed upon by Newco and BRC, will be set forth in a Scientific Services Addendum to this
Agreement, signed by both

1

 

parties. The parties contemplate that a separate Scientific Services Addendum will
typically be executed for each distinct research and development project.

2.3. Performance of Services. BRC will perform all Business Services and Scientific
Services (collectively, “Services”) in accordance with this Agreement and each applicable
Business Services Addendum or Scientific Services Addendum (each an “Addendum” and
collectively “Addenda”). BRC warrants that the Services shall be provided with reasonable
skill and care and the same degree of care and diligence that BRC uses for similar
activities on its own behalf and shall conform to standards generally observed in the
biotechnology industry for similar services and shall be provided with reasonable skill and
care. BRC will use commercially reasonable efforts to provide the Services in a timely
manner.

2.4. Personnel. BRC will use qualified and experienced personnel with the necessary skills
and expertise to perform all Services to be performed under this Agreement.

2.5. Third Party Contractors. BRC may engage qualified third-party contractors,
consultants or service providers (including but not limited to HKUST and Affiliated
Companies Controlled by HKUST) to perform, or assist BRC in performing, the Services, but
only if and to the extent specifically authorized by the applicable Addendum. BRC will
remain responsible for the due performance of the Services.

3. Payment for Services.

3.1. Direct Cost Reimbursement. In consideration for the Services, Newco will pay BRC the
Direct Cost (as defined in Section 3.2 below) of the Services provided, up to the monetary
limit specified in the applicable Addendum. BRC shall not exceed, and Newco shall have no
obligation to pay any amounts in excess of any monetary limit stated in the applicable
Addendum unless approved in writing in advance by Newco.

3.2. Definition of Direct Costs. The “Direct Cost” of Services shall mean the sum of the
following:

     (a) Salaries and wages of BRC’s employees employed in the performance of the
Services. Labor charges will be based on time sheets approved by the respective
employee’s supervisor or such other method as is appropriate for the type of
service provided and customarily used by BRC;

     (b) BRC’s actual cost of employee benefits for such employees (calculated on a
pro rata basis by reference to the actual time they are employed in the performance
of the Services);

2

 

     (c) BRC’s actual cost for third-party contractors, consultants and service
providers authorized pursuant to Section 2.5;

     (d) BRC’s actual cost for supplies purchased for use in the performance of the
Services;

     (e) A percentage of BRC’s actual cost for common supplies, calculated based on
the allocation method used by BRC for such supplies for government grants;

     (f) BRC’s actual cost for equipment purchased which is substantially dedicated
for use in performance of the Services and specifically authorized in the
applicable Addendum, and for maintenance of such equipment;

     (g) BRC’s reasonable travel and related expenses incurred in connection with
the performance of the Services by employees whose salaries and wages are
chargeable under subsection (a) above who have been reimbursed under BRC’s usual
practice and in accordance with BRC’s travel policy, provided that the travel has
been approved in advance by Newco in the applicable Addendum or otherwise in
writing;

     (e) Other reasonable out-of-pocket expenses incurred by BRC that are necessary
for the proper performance of the Services and which have been approved in advance
by Newco in the applicable Addendum or otherwise in writing.

3.3. Billing and Payment. BRC shall submit a monthly invoice to Newco for each calendar
month on or before the fifteenth (15th) Business Day of the following calendar month. Each
such invoice shall state separately for each Addendum the Direct Cost of Services provided
in such month under such Addendum. Newco will pay BRC the amount due under each invoice
within thirty (30) calendar days after receipt of the invoice.

4. Limitations on Services.

4.1. No Representation or Warranty. The parties acknowledge that BRC is not in the
business of providing the Services as set forth in this Agreement, and is entering into
this Agreement as an accommodation to Newco in connection with the JV Agreement. EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN AN ADDENDUM, BRC does not make any express or
implied representations, warranties or guarantees relating to the Services to be provided
hereunder or the quality or results of such services. EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT OR IN AN ADDENDUM, ALL SERVICES PROVIDED HEREUNDER ARE PROVIDED TO NEWCO ON AN
“AS IS” BASIS WITHOUT WARRANTY OF ANY KIND. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT
OR IN AN

3

 

ADDENDUM, BRC HEREBY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, INCLUDING
WITHOUT LIMITATION THE IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

4.2. Alternatives. If BRC reasonably believes it is unable to provide any of the Services
because of a failure to obtain necessary consents, licences, sublicences or approvals or
because of illegality or another cause beyond BRC’s control, the parties shall cooperate to
determine the best alternative approach. Until such alternative approach is found or the
problem is otherwise resolved to the satisfaction of the parties, BRC shall use
commercially reasonable efforts to continue providing the Services. To the extent an
agreed-upon alternative approach requires payment above and beyond that which is included
in BRC’s charge for the Services in question, Newco shall be responsible for any such
payment only if Newco agrees in advance in writing, provided that if Newco does not agree
to be responsible for such payment, BRC will not be required to pursue such alternative
approach.

5. Term and Termination.

5.1. Term. The term of this Agreement shall begin on the Effective Date and expire on the
eighth (8th) anniversary of the Effective Date, unless earlier terminated as provided
below.

5.2. Termination of Agreement. This Agreement and all Addenda shall be terminated
automatically, as provided in Clause 13.1.1 of the JV Agreement, if Newco is placed in
winding up pursuant to the provisions of Clause 11 or Clause 12 of the JV Agreement or
otherwise. In addition, this Agreement may be terminated as follows:

5.2.1. By Newco, upon ten (10) days written notice, if BRC is in material breach of
its obligations under this Agreement or any Addendum and such breach, if capable of
remedy, has not been remedied to the reasonable satisfaction of Newco at the expiry
of 60 days following receipt by BRC of a notice in writing from Newco notifying BRC
of such breach and reasonably indicating the steps required to be taken to remedy
the failure;

5.2.2. By Newco, upon ten (10) days written notice, if BRC ceases to be a
Shareholder of Newco;

5.2.3. By BRC, upon ten (10) days written notice, if Newco is in material breach of
its obligations under this Agreement or any Addendum and such breach, if capable of
remedy, has not been remedied to the reasonable satisfaction of BRC at the expiry
of 60 days following receipt by Newco of a notice in writing from BRC notifying
Newco of such breach and Default Notice reasonably indicating the steps required to
be taken to remedy the failure;

4

 

5.2.4. By BRC, upon sixty (60) days written notice, if BRC ceases to be a
Shareholder of Newco.

5.3. Termination of Addendum. Any Addendum may be terminated as follows, unless such
Addendum provides otherwise:

5.3.1. By Newco, upon thirty (30) days written notice, with or without cause.

5.3.2. By Newco, upon ten (10) days written notice, if BRC is in material breach of
its obligations under such Addendum and such breach, if capable of remedy, has not
been remedied to the reasonable satisfaction of Newco at the expiry of 60 days
following receipt by BRC of a notice in writing from Newco notifying BRC of such
breach and reasonably indicating the steps required to be taken to remedy the
failure;

5.3.3. By BRC, upon ten (10) days written notice, if Newco is in material breach of
its obligations under such Addendum and such breach, if capable of remedy, has not
been remedied to the reasonable satisfaction of BRC at the expiry of 60 days
following receipt by Newco of a notice in writing from BRC notifying Newco of such
breach and reasonably indicating the steps required to be taken to remedy the
failure.

5.3.4. By BRC, upon sixty (60) days’ written notice, if BRC ceases to have
available the personnel or resources required to perform the Services under such
Addendum, provided that this section 5.3.4 will not apply with respect to personnel
or resources designated by BRC as being dedicated to the performance of the
Services.

5.4. Upon any termination of an Addendum, BRC shall immediately cease performance of
services in respect of such Addendum and Newco shall be liable only for Direct Costs in
respect of such Services up to the effective date of termination, and Direct Costs to be
incurred after the effective date of termination to the extent that BRC is legally
obligated to incur them and is unable to cancel the obligation despite reasonable efforts.

5

 

6. Indemnification and Limitation of Liability.

6.1. Indemnification. BRC shall indemnify, defend, and hold harmless Newco and its
officers, directors, employees and agents (each person or entity, an “Indemnified Person”),
from any liability, loss, claim, expense, proceeding, action and/or damage incurred by the
Indemnified Person by reason of any act performed or omitted to be performed by BRC, its
officers, directors, employees and/or agents in connection with the Services, including
reasonable attorneys’ fees and costs and any amounts expended in the settlement of any such
claims of liability, loss, or damage and which arises out of or in relation to or by reason
of:

	 	(a)  	the negligence, recklessness or intentional misconduct of BRC, its officers,
directors, employees and/or agents in the provisions of the Services; or
	 
	 	(b)  	any act or omission of BRC, its officers, directors, employees and/or agents
outside the prescribed or authorized scope of the Services as defined by the
applicable Addendum.

6.2. Limitation of Liability. IN NO EVENT WILL BRC BE LIABLE TO NEWCO FOR INDIRECT OR
CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS.

7. Intellectual Property.

7.1. Subject to the rights of Third Parties in Intellectual Property, Newco shall own all
Collaboration Inventions generated by BRC and/or its employees in the course of carrying
out the Services.

7.2. In the case of Collaboration Inventions made by employees or agents of BRC (alone or
in collaboration with others), BRC shall assign to Newco all its right, title and interest
in such Collaboration Inventions.

7.3. BRC shall ensure that its employees and agents shall, where necessary, agree to
assign to Newco (or assign to BRC for assignment to Newco under Section 7.2) their interest
in any Collaboration Inventions generated by them in the course of carrying out the
Services.

7.4. BRC shall use all reasonable endeavours to procure its employees and agents to fully
disclose and record all Collaboration Inventions to enable Newco to fully collect, protect,
exploit and commercialise the Collaboration Inventions.

7.5. BRC shall procure that, where necessary, written and irrevocable waivers of any such
moral or other non-transferable rights in respect of the Collaboration Inventions have been
given by its employees and agents in favour of Newco.

6

 

7.6. BRC shall do all things reasonably necessary, co-operate in good faith and provide
such assistance as may be necessary and do all things as may be required to disclose,
protect, maintain, enforce and/or transfer or assign the Collaboration Inventions, and
shall procure that its employees and agents shall co-operate in the provision of such
assistance including preparing and signing all forms, applications, documents, agreements
and deeds to give effect to and complete the transactions, assignments, and licences
contemplated by this Section 7.

7.7. The provisions of this Section 7 shall survive any termination of this
Agreement.

8. Confidentiality.

8.1. Confidential Information. “Confidential Information” means all non-public and/or
proprietary information owned or possessed by the disclosing party and specifically
designated as such. Confidential Information includes, without limitation, any methods,
techniques and processes, and technical and scientific data, unpublished findings,
biological material, know-how, specifications, patent applications, algorithms, programs,
designs, drawings, and formulae, and engineering, manufacturing, marketing, development,
sales, research, operations, financial and business plans and data disclosed by a party to
the other party hereunder. Each party shall ensure that written confidential information
is marked “confidential” or with a comparable marking and that confidential information not
disclosed in writing is reduced to writing and marked as “confidential” or with a
comparable marking within thirty (30) days of disclosure, provided that information (other
than scientific know-how and scientific techniques) exchanged by the parties hereunder or
otherwise that relates to the business or operations of Newco shall be treated as
confidential whether or not so marked.

8.2 Confidentiality Obligations. In the course of this Agreement, either or both of the
parties may disclose Confidential Information to the other. Except as expressly set forth
in this Agreement, during the term of this Agreement or a period of four (4) years from
receipt thereof, whichever is longer, the recipient of the Confidential Information will
use such information only for purposes of performing its obligations and/or exercising its
rights under this Agreement, and will not disclose such information except to its employees
and consultants. Each of the parties will ensure that its employees or consultants who
receive access to the other party’s Confidential Information are legally obligated to
maintain the confidentiality of such Confidential Information, and such party shall be
responsible for the compliance of its employees or consultants. Each party represents to
the other that the terms of this Section 8 do not conflict with any of the representing
party’s obligations to any other person or entity.

7

 

8.3 Exceptions to Confidentiality. The restrictions on use and disclosure of Confidential
Information shall not apply to information to the extent any of the following is true:

	 	(a)  	the information is now, or hereafter becomes, through no act
or failure to act on the part of the recipient, generally known or available
to the public;

	 	(b)  	the information is known by the recipient or is already in
the possession of the recipient before it receives the information from the
disclosing party;
	 
	 	(c)  	the information is furnished to the recipient by a third
party who did not acquire the information directly or indirectly from the
disclosing party under an obligation of confidentiality to the disclosing
party or otherwise under circumstances in which such third party did not have
the legal right to acquire and furnish to the recipient the information in
question;

	 	(d)  	the information is independently developed by the recipient
without use or knowledge of the Confidential Information;
	 
	 	(e)  	the information is required by law or by order of any court
or governmental authority to be disclosed by the recipient. In the event of
such compulsory disclosure, however, the recipient shall use reasonable
efforts to give the disclosing party sufficient advance written notice to
enable it to seek a protective order or other remedy to protect such
Confidential Information. The recipient shall use reasonable efforts to
disclose only the minimum Confidential Information required to be disclosed,
whether or not a protective order or other remedy is in place;
	 
	 	(f)  	the information is made available by the disclosing party to
a third party without similar restrictions; or
	 
	 	(g)  	the information (i) does not relate to the business or
operations of Newco or is scientific know-how or scientific techniques and
(ii) is not disclosed in writing or reduced to writing and marked as
“confidential” or with other comparable marking within thirty (30) days of
disclosure.

9. Publication. Except as otherwise specified in the applicable Addendum, publication of results,
records, or other information arising out of or relating to Services will be permitted only with
the prior written consent of Newco’s Joint Operating Committee. Newco may withhold that consent if
Newco believes that such publication or disclosure may compromise or adversely impact Newco’s
product development efforts, competitive position, or business. If BRC wishes to make such a
publication or disclosure, it will

8

 

submit a draft manuscript or disclosure for review by Newco at least forty-five (45) days prior to
the date of submission for publication or public disclosure. Newco will, within forty-five (45)
days after all members of Newco’s Joint Operating Committee have received the draft, communicate to
BRC in writing its decision to:

(i) consent to the publication or disclosure as submitted without changes; or

(ii) consent to the publication or disclosure provided that specified information is
deleted, or that publication or disclosure is delayed for a period, not to exceed sixty
(60) days, sufficient to permit Newco to file any desire patent applications, or both; or

(iii) withhold consent to the publication or disclosure.

Any publication arising out of or relating to this Agreement shall recognise intellectual
contributions by co-authorship and/or acknowledgement, in accordance with applicable academic
norms.

10.
Miscellaneous.

10.1. Independent Contractor. BRC and Newco agree that, in performing its obligations
under this Agreement, BRC shall be an independent contractor, and that neither BRC nor any
of its employees or agents shall be deemed for any purpose to be an employee or agent of
Newco and BRC shall not hold itself out as such. Nothing in this Agreement shall be deemed
to give BRC any right or power to bind Newco to any obligation.

10.2. Governing Law; Dispute Resolution. The validity, construction and enforceability of
this Agreement shall be governed by and construed in accordance with the laws of Hong Kong
without regard to choice of law provisions. Any dispute arising out of this Agreement
shall be resolved as provided in Clause 34.2 of the JV Agreement.

10.3 Notice. Any notice required to be given by either party to the other party may be
made (i) by hand delivery by Federal Express or comparable private courier service to the
other party’s address given herein or such other address as may from time to time be
notified for this purpose or (ii) by facsimile transmission to a facsimile number notified
in writing by the other party for this purpose. Any properly addressed notice served by
hand shall be deemed to have been served on delivery and any notice served by facsimile
transmission shall be deemed to have been served when received, as shown by a confirmed
transmission report.

10.4 Severability. If any provision in this Agreement shall be found or be held to be
invalid or unenforceable then the meaning of said provision shall be construed, to the
extent feasible, so as to render the provision enforceable, and if

9

 

no feasible interpretation would save such provision, it shall be severed from the
remainder of this Agreement which shall remain in full force and effect unless the severed
provision is essential and material to the rights or benefits received by either party. In
such event, the parties shall use best efforts to negotiate, in good faith, a substitute,
valid and enforceable provision or agreement which most nearly effects the parties’ intent
in entering into this Agreement.

10.5 No Waiver. No waiver of any term or condition of this Agreement shall be valid or
binding on a party unless the same shall have been set forth in a written document,
specifically referring to this Agreement and duly signed by the waiving party. The failure
of a party to enforce at any time any of the provisions of this Agreement, or the failure
to require at any time performance by the other party of any of the provisions of this
Agreement, shall in no way be construed to be a present or future waiver of such
provisions, nor in any way affect the ability of a party to enforce each and every such
provision thereafter.

10.6 Assignment. This Agreement may not be assigned without the written consent of both
of the parties to this Agreement. Any assignment not in conformance with this Section 10.6
shall be null, void and of no legal effect. This Agreement shall inure to the benefit of,
and shall be binding upon, the parties and their respective permitted successors and
assigns.

10.7 Counterparts. This Agreement may be executed in any number of counterparts, and each
counterpart shall constitute an original instrument, but all such separate counterparts
shall constitute only one and the same instrument.

10.8 Force Majeure. Neither party shall be liable for any delay in performing any of its
obligations under this Agreement to the extent that such delay is directly caused by any
occurrence which is beyond the reasonable control of the party so delaying, including,
without limitation, delays arising out of acts of God, acts or orders of any government
agency or instrumentality thereof, acts of public enemy, riots, embargoes, strikes,
casualties or accidents, deliveries of materials, transportation or shortage of cars,
trucks, fuel, power, labor or materials, interruption of or delay in transportation,
unavailability of, interruption of or delay in telecommunications, or any other causes,
circumstances or contingencies within or without the United States of America which are
beyond the reasonable control of such party and such party shall be entitled (subject to
giving the other party full particulars of the circumstances in question and to using its
best endeavours to resume full performance without avoidable delay) to a reasonable
extension of time for the performance of such obligations. Notwithstanding the occurrence
of any force majeure event, this Agreement shall continue in full force for the remainder
of its term and any renewals thereof.

10.9 Variation. No variation or amendment to this Agreement shall be effective unless in
writing signed by authorized representatives of each of the parties.

10

 

IN WITNESS WHEREOF, the parties hereto have executed this Services Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 
	TA THERAPEUTICS LIMITED	 	BIOTECHNOLOGY RESEARCH
	 	 	 	 	CORPORATION LIMITED
	 
	 	 	 	 	 	 
	By:

	/s/ Chu Ching-wu
	By:
	/s/ Roland Chin
	 	 	 	 	 	 	 
	

	     Chu Ching-wu	 	 	      Roland Chin
	

	     Director
	 	 	      Director

11

 

Schedule 10

Geron Licence Agreement 

This Licence Agreement (the “Agreement”), effective 21st March, 2005, (the “Effective Date”), is
between Geron Corporation, a Delaware corporation having a place of business at 230 Constitution
Drive, Menlo Park, California 94025 (“Geron”) and TA Therapeutics Limited, a Hong Kong limited
company whose registered office is at The Hong Kong University of Science and Technology, Clear
Water Bay, Kowloon, Hong Kong (“Newco”).

RECITALS

WHEREAS, Geron owns or controls certain natural materials, and substances derived therefrom,
demonstrating telomerase activation properties in skin and other cells, as well as trade secrets
and other Intellectual Property related to such natural materials and substances or related to
telomerase activation;

WHEREAS, Geron and Biotechnology Research Corporation Limited (“BRC”) have formed Newco to develop
telomerase activation for human therapeutic applications, pursuant to a Joint Venture Agreement
dated March 1, 2005 (the “JV Agreement”);

WHEREAS, under the JV Agreement Geron agrees to enter into this Agreement to grant to Newco
licences in respect of the Geron Intellectual Property described above including, without
limitation, the Geron Background IP and the Geron Existing IP;

NOW, THEREFORE, Geron and Newco agree as follows:

AGREEMENT

1. Definitions.

As used throughout this Agreement, the following terms shall have the meanings set forth below.
Capitalized terms not defined in this Agreement shall have the meanings set forth in the JV
Agreement.

1.1. “Derivative Compound” means any molecule or substance derived by or on behalf of Newco
from any Existing Compound, including, without limitation, any modification, purification,
analog, or synthetic reproduction of any Existing Compound.

1.2. “Existing Compound” shall have the meaning set forth in the JV Agreement.

1.3. “Field of Use” shall have the meaning set forth in the JV Agreement.

1.4. “Geron Background IP” shall have the meaning set forth in the JV Agreement.

 

 

1.5. “Geron Existing IP” shall have the meaning set forth in the JV Agreement. Geron
Existing IP includes, without limitation, the Existing IP set forth in Exhibit A to this
Agreement.

1.6. “Geron Trade Secrets” means any and all information provided by Geron to Newco
hereunder which, at the time of disclosure, qualifies as a trade secret within the meaning
of the Uniform Trade Secrets Act, including, without limitation, information regarding the
identity, source, structure and composition of any Existing Compound.

1.7. “Human Therapeutics” shall have the meaning set forth in the JV Agreement.

1.8. “Licensed Products” means any and all products within the Field of Use that (a)
contain or incorporate any Existing Compound or Derivative Compound, (b) are created,
developed, or result from the use of any Existing Compound or Derivative Compound, or
further purification thereof, or from the use of any Geron Trade Secret or (c) would, but
for the rights granted hereunder, infringe one or more Valid Claims of any Geron Existing
IP or Geron Background IP.

1.9. “Territory” means the entire world.

1.10. “Valid Claim” means an unexpired claim in a pending patent application or in a
granted or issued patent which has not been revoked, abandoned, disclaimed or withdrawn, or
held unenforceable, unpatentable or invalid by a court of competent jurisdiction, or
unappealable or unappealed within the time allowed for appeal; and which has not been
rendered unenforceable.

2. Grant of Licence.

	 	2.1.  	Geron Existing IP. Geron hereby grants, and procures that the Affiliated Companies
Controlled by Geron shall grant, to Newco, on the terms and conditions of this Agreement, a
fully paid-up exclusive licence in respect of the Geron Existing IP, throughout the
Territory and in the Field of Use, to develop, make, have made, use, sell or have sold,
commercialise or otherwise exploit the Licensed Products. Newco shall have the right to
grant sublicences under the licence granted in this Section 2.1, provided that Newco shall
remain responsible for the compliance by the sublicencee with all applicable terms of this
Agreement.
	 
	 	2.2.  	Geron Background IP. Geron hereby grants, and procures that the Affiliated Companies
Controlled by Geron shall grant, to Newco, on the terms and conditions of this Agreement, a
fully paid-up non-exclusive licence in respect of the Geron Background IP, throughout the
Territory and in the Field of Use, for use only in connection with Newco’s exercise of the
licence granted under Section 2.1 to develop, make, have made, use, sell or have sold,
commercialise or otherwise exploit the Licensed Products in the Field of Use. Newco shall
have the right to grant sublicences under the licence granted in this Section 2.2 but only
to sublicencees under the licence granted in Section 2.1 and for use only in connection
with such sublicencee’s exercise of the sublicence to develop, make,

Page 2

 

	 	   	have made, use, sell or have sold Licensed Products in the Field of Use, provided that
Newco shall remain responsible for the compliance by the sublicencee with all applicable
terms of this Agreement.
	 
	 	2.3  	Associated Obligations. The licenses granted under Sections 2.1 and 2.2, and any
sublicenses granted thereunder, are subject to the terms and conditions of any licence
agreements under which the licensor holds the Geron Existing IP or Geron Background IP in
question, to the extent such terms and conditions apply to such licences or sublicences,
including without limitation any applicable royalty, reporting, and indemnification
provisions. Geron has provided to Newco copies of the licence agreements applicable to
the Geron Existing IP, and upon Newco’s request will provide copies of any license
agreements applicable to any Geron Background IP that Geron or Newco identifies is being
used by Newco.

3. Patent Prosecution and Defense. Geron shall have the sole right to control the
preparation, filing, prosecution and maintenance of the Geron Existing IP and the Geron Background
IP and other legal proceedings relating thereto, at Geron’s expense and in Geron’s sole discretion,
provided that Geron will consider in good faith Newco’s interests in making any decision with
respect to Geron Existing IP that materially affects Newco’s interests.

4. Use of Name and Logo. If and to the extent that any Licensed Products marketed by Newco
and its permitted sublicencees have been developed using Intellectual Property of Geron, such
products will indicate that they are marketed under licence from Geron. In such cases, product
packaging and marketing materials will be submitted to Geron for review and approval (which
approval will not be unreasonably withheld or delayed) with respect to use of the Geron name and
logo, at least thirty (30) days prior to use or dissemination by Newco. Geron shall be deemed to
have approved the use of the Geron name and logo in respect of the submitted product packaging and
marketing materials, unless Newco receives written notice from Geron within 14 days of Newco’s
submission rejecting such use of the Geron name and logo by Newco. Any other use of the name
“Geron” or the Geron logo, or the name of any Geron employee, will require Geron’s written
agreement.

5. Compliance with Law; Government Approvals. In its development and marketing of Licensed
Products and its other activities under this Agreement, Newco shall comply in all respects with all
applicable laws and regulations. Newco shall obtain all governmental approvals necessary for the
research, development, testing, production, distribution, sale, and use of Licensed Products in the
Field of Use.

6. Confidentiality.

6.1. Confidential Information. “Confidential Information” means all non-public and/or
proprietary information owned or possessed by the disclosing party and specifically
designated as such. Confidential Information includes, without limitation, any methods,
techniques and processes, and technical and scientific

Page 3

 

data, unpublished findings, biological material, know-how, specifications, patent
applications, algorithms, programs, designs, drawings, and formulae, and engineering,
manufacturing, marketing, development, sales, research, operations, financial and business
plans and data disclosed by a party to the other party hereunder. Confidential Information
of Geron includes, without limitation, Geron Trade Secrets. Each party shall ensure that
written confidential information is marked “confidential” or with a comparable marking and
that confidential information not disclosed in writing is reduced to writing and marked as
“confidential” or with a comparable marking within thirty (30) days of disclosure, provided
that information (other than scientific know-how and scientific techniques) exchanged by
the parties hereunder or otherwise that relates to the business or operations of Newco
shall be treated as confidential whether or not so marked.

6.2. Confidentiality Obligations. In the course of this Agreement, either or both of the
parties may disclose Confidential Information to the other. Except as expressly set forth
in this Agreement, during the Term of this Agreement or a period of four (4) years from
receipt thereof, whichever is longer, the recipient of the Confidential Information will
use such information only for purposes of performing its obligations and/or exercising its
rights under this Agreement, and will not disclose such information except to its employees
and consultants and, in the case of Newco, permitted sublicencees, for those purposes.
Each of the parties will ensure that its employees, consultants or permitted sublicencees
who receive access to the other party’s Confidential Information are legally obligated to
maintain the confidentiality of such Confidential Information, and such party shall be
responsible for the compliance of its employees, consultants or permitted sublicencees.
Each party represents to the other that the terms of this Section 6 do not conflict with
any of the representing party’s obligations to any other person or entity. For the
avoidance of doubt, this Section 6 shall not affect or limit Newco’s right to fully
exercise or use the licences granted under this Agreement according to the terms of such
licenses.

6.3. Exceptions to Confidentiality. The restrictions on use and disclosure of Confidential
Information shall not apply to information to the extent any of the following is true:

	 	(a)  	the information is now, or hereafter becomes, through no act
or failure to act on the part of the recipient, generally known or available
to the public;
	 
	 	(b)  	the information is known by the recipient or is already in
the possession of the recipient before it receives the information from the
disclosing party;
	 
	 	(c)  	the information is furnished to the recipient by a third
party who did not acquire the information directly or indirectly from the
disclosing party under an obligation of confidentiality to the

Page 4

 

	 	   	disclosing party or otherwise under circumstances in which such third
party did not have the legal right to acquire and furnish to the recipient
the information in question;
	 
	 	(d)  	the information is independently developed by the recipient
without use or knowledge of the Confidential Information;
	 
	 	(e)  	the information is required by law or by order of any court
or governmental authority to be disclosed by the recipient. In the event of
such compulsory disclosure, however, the recipient shall use reasonable
efforts to give the disclosing party sufficient advance written notice to
enable it to seek a protective order or other remedy to protect such
Confidential Information. The recipient shall use reasonable efforts to
disclose only the minimum Confidential Information required to be disclosed,
whether or not a protective order or other remedy is in place;
	 
	 	(f)  	the information is made available by the disclosing party to
a third party without similar restrictions; or
	 
	 	(g)  	the information (i) does not relate to the business or
operations of Newco or is scientific know-how or scientific techniques and
(ii) is not disclosed in writing or reduced to writing and marked as
“confidential” or with a comparable marking within thirty (30) days of
disclosure.

7. Term and Termination.

7.1. Term. The term of this Agreement shall begin on the Effective Date and expire when all
Valid Claims under the Geron Existing IP and the Geron Background IP have expired in every
country and jurisdiction in the Territory. In any country or jurisdiction which does not
have any Valid Claims under the Geron Existing IP or the Geron Background IP, Newco shall
be entitled to fully exploit the Geron Existing IP and the Geron Background IP in such
country or jurisdiction without any restriction or payment of royalties in any form arising
under this Agreement.

7.2. Termination. This Agreement may be terminated:

	 	(a)  	by Geron upon sixty (60) days written notice to Newco for
Newco’s material breach of this Agreement, unless such breach is cured to
Geron’s reasonable satisfaction within said sixty (60) day period; or
	 
	 	(b)  	by Newco upon sixty (60) days written notice to Geron for
Geron’s material breach of this Agreement or Geron’s breach of the JV
Agreement, unless such breach is cured to Newco’s reasonable satisfaction
within said sixty (60) day period; or

Page 5

 

	 	(c)  	by either party upon written notice to the other party if the
other party files a voluntary petition in bankruptcy (or similar proceedings)
or an involuntary petition (or similar proceedings) is filed against it and
not dismissed within sixty (60) days of filing.

In addition, this Agreement shall automatically and immediately terminate as
provided in Clause 13.1.1 of the JV Agreement if Newco is placed in winding up
pursuant to the provisions of Clause 11 or 12 of the JV Agreement or otherwise.

7.3. Effect of Termination.

7.3.1. Termination of this Agreement shall not release either party from any
obligation accrued prior to such termination.

7.3.2. Effective upon termination of this Agreement for any reason, the licence
rights granted to Newco under this Agreement and all sublicences under such licence
rights shall terminate.

7.3.3. Survival. Articles 1, 4, 5, 6 and 9 and Sections 7.3 and 10 hereof shall
survive expiration or termination of this Agreement for any reason.

8. Notices.

Any notice required to be given by a party to the other party may be made (i) by hand delivery by
Federal Express or comparable private courier service to the other party’s address given herein or
such other address as may from time to time be notified for this purpose or (ii) by facsimile
transmission to a facsimile number notified in writing by the other party for this purpose. Any
properly addressed notice served by hand shall be deemed to have been served on delivery and any
notice served by facsimile transmission shall be deemed to have been served when received, as shown
by a confirmed transmission report.

9. Representations and Warranties; Indemnification.

9.1. Geron’s Representations and Warranties. Geron affirmatively represents and warrants,
to and for the benefit of Newco, that the following statements are true and accurate in all
respects as of the Effective Date:

9.1.1. Geron has all necessary rights, powers and authority to enter into this
Agreement, including without limitation the right to grant the licences or
sublicences (as the case may be) contained herein;

9.1.2. Geron’s performance under this Agreement, including without limitation the
grant of the licences contained herein, does not conflict with or create a breach
or a default of any law, order of a court, governmental agency, contract, or other
obligation with any third party;

Page 6

 

9.1.3. to the best of Geron’s knowledge and belief, neither the Geron Existing IP
nor the Geron Background IP is subject to any liens or similar encumbrances and no
party holds a valid security interest in any of the Geron Existing IP or the Geron
Background IP; and

9.1.4. there are no other licences or assignments granted by Geron or any
Affiliated Company Controlled by Geron in effect in respect of the Geron Existing
IP in the Field of Use..

9.2. Geron’s Disclaimers. Geron expressly disclaims and does not represent, warrant or
otherwise guarantee Newco that:

9.2.1. any Intellectual Property licensed hereunder will not be held invalid or
unenforceable or that they will be of any particular scope;

9.2.2. anything made, used, or disposed of under any license granted in this
Agreement is or will be free from infringement of patents, copyrights, and other
rights of third parties;

9.2.3. actions or suits against third parties for infringement of any Intellectual
Property licensed hereunder which may be filed by Geron will be brought or
prosecuted; or

9.2.4. by implication, estoppel, or otherwise any licenses or rights under patents
or other rights of Geron or third parties other than expressly provided herein are
granted to Newco. EXCEPT AS EXPRESSLY SET FORTH HEREIN, GERON MAKES NO WARRANTY,
EXPRESS OR IMPLIED, WITH RESPECT TO THE INTELLECTUAL PROPERTY LICENSED HEREUNDER,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR
THAT INTELLECTUAL PROPERTY LICENSED HEREUNDER DOES NOT INFRINGE ANY PATENTS OR
OTHER INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY.

9.3. Newco’s Representations and Warranties. Newco affirmatively represents and warrants
to and for the benefit of Geron that the following statements are true and accurate in all
respects as of the Effective Date:

9.3.1. Newco has all necessary rights, powers and authority to enter into this
Agreement.

9.3.2. Newco’s performance under this Agreement does not conflict with or create a
breach or a default of any law, order or a court or governmental agency, contract,
or other obligation with any third party.

9.4. Geron’s Indemnification. Geron shall indemnify and hold harmless Newco and its
directors, officers and employees (collectively the “Newco Indemnified Parties”) harmless
against any and all liability, loss, damage, claim or expense,

Page 7

 

including reasonable attorney’s fees and costs (collectively the “Indemnified Losses”)
arising out of or in connection with any breach by Geron of any representations and
warranties made by Geron in this Section 9.

9.5. Newco’s Indemnification. Newco agrees that it shall indemnify and hold harmless Geron
and its directors, officers and employees (collectively the “Geron Indemnified Parties”)
harmless against any and all Indemnified Losses arising out of or in connection with any
breach by Newco of any representations or warranties made by Newco in this Section 9 and
any and all Indemnified Losses resulting from any use by Newco or Newco’s employees or
sublicencees or customers of the Licensed Products, Existing Compounds and Derivative
Compounds; provided, however, that Newco’s obligation to indemnify shall not apply to the
extent that the Indemnified Losses result from, (i) the gross negligence or willful
misconduct of a Geron Indemnified Party, or (ii) breach by Geron of any term of this
Agreement. Subject to the other provisions of this Section 9.5, Newco’s indemnification
obligation includes, but is not limited to, indemnification for any product liability
claims against the Licensed Products.

9.6. Indemnity Procedures. Promptly after becoming aware of a claim, the indemnified party
shall provide written notice to the indemnifying party. Delay in providing such notice
shall relieve the indemnifying party of its obligations only if the indemnifying party’s
ability to defend against such claim is thereby materially impaired. The indemnifying
party shall have the right to assume and control the defense of the claim at its own
expense. The indemnified party shall have the right to participate in, but not to control,
such defense at its own expense. If the indemnifying party does not assume the defense of
the claim, the indemnified party may defend the claim at the indemnifying party’s expense.
The indemnified party shall not settle or compromise the claim without the prior written
consent of the indemnifying party, and the indemnifying party shall not settle or
compromise the claim in any manner which would have an adverse effect on the indemnified
party without the consent of the indemnified party. No consent required hereunder shall be
unreasonably withheld or delayed. The indemnified party shall reasonably cooperate with
the indemnifying party and shall make available to the indemnifying party all pertinent
information available to the indemnified party, all at its own expense.

9.7. Insurance. Newco shall, at its sole cost and expense, insure its activities under
this Agreement, and obtain and keep in force liability insurance in such amounts as may be
customary in the industry. Such insurance coverage shall not in any way limit the
liability of Newco. From and after the time Newco first uses a Licensed Product to treat a
human being (whether in a research or a commercial setting), the Geron Indemnified Parties
shall be endorsed as additional named insureds under the coverage referred to above. Upon
request by Geron not more than once annually, Newco shall furnish Geron with certificates
of insurance showing compliance with all requirements. Newco shall be responsible for
ensuring that its permitted sublicencees obtain and maintain in force insurance in amounts
equivalent to those required of Newco hereunder.

Page 8

 

10. Newco Inventions.

Nothing in this Agreement shall give Geron any ownership or licence rights or any obligations with
respect to new inventions made by or on behalf of Newco, including without limitation inventions
that represent improvements to the Geron Existing IP and/or the Geron Background IP. Geron
acknowledges and agrees that, as provided in the JV Agreement and subject to the rights of third
parties, Newco will own all Collaboration Inventions (as that term is defined in the JV Agreement)
generated by or on behalf of Newco, its employees, secondees and contractors and sub-contractors in
the course of carrying out Newco’s business, including without limitation Collaboration Inventions
that represent improvements to the Geron Existing IP and/or the Geron Background IP.

11. Miscellaneous.

11.1. Governing Law. This Agreement shall be governed and construed in accordance with the
laws of Hong Kong without regard to its rules regarding conflict of laws.

11.2. Consistency with JV Agreement. The provisions of this Agreement are intended to be
consistent with the provisions of the JV Agreement. In the event of any conflict or
inconsistency between this Agreement and the JV Agreement, the provisions of the JV
Agreement shall prevail and each party shall take all such further steps as may be
necessary or requisite to ensure that the provisions of the JV Agreement shall prevail.

11.3. Severability; Waiver. In the event that any provision(s) of this Agreement is
determined to be invalid or unenforceable, the remainder of the Agreement shall remain in
full force and effect. The failure of a party to enforce any provision shall not be a
waiver of the right to thereafter enforce that provision or any other provision or right.

11.4. Assignment. This Agreement shall not be assigned by either party without the prior
written consent of the other party, except as part of a sale or transfer, by way of merger
or otherwise, of all or substantially all of the business assets of such party (or, if such
party is organized in divisions or other distinct business units, all of the business
assets of a division or unit engaged in activities in the Field of Use), and provided
further that the assignee agrees to be bound in writing by all the terms of this Agreement
in place of the assignor and the assignor agrees to remain responsible for the obligations
of the assignee pursuant to the terms set forth herein.

11.5. Binding Upon Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of successors in interest and assigns of Geron and Newco subject to the
limitations on assignment.

11.6. Counterparts. This Agreement may be fully executed in two (2) original counterparts,
each of which shall be deemed an original.

Page 9

 

11.7. Entire Agreement. This Agreement and the JV Agreement constitute the entire agreement
between the parties, both oral and written, with respect to the subject matter hereof. No
amendment hereto shall be effective unless made in writing and executed by duly authorized
representatives of Geron and Newco.

IN WITNESS THEREOF, Geron and Newco have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first written above.

	 	 	 	 	 	 	 
	GERON CORPORATION	 	TA THERAPEUTICS LIMITED
	 
	 	 	 	 	 	 
	By:

	 	/s/ David L. Greenwood
	 	By:
	 	/s/ Chu Ching-wu
	 	 	 	 	 	 	 
	

	 	David L. Greenwood
	 	 	 	Chu Ching-wu
	

	 	Executive Vice President and
	 	 	 	Director
	

	 	Chief Financial Officer	 	 	 	 

Page 10

 

Exhibit A

Geron Existing IP

PCT Applications (U.S. and Overseas)

	 	 	 	 	 	 
	 
	 	 Title	 	 	Number	 
	 	Compositions and Methods for Increasing Telomerase Activity

	 	 	PCT/US04/20277	 
	 	Compositions and Methods for Skin Conditioning

	 	 	PCT/US04/20338	 
	 	Formulations Containing Astragalus Extracts and Uses Thereof

	 	 	PCT/US04/20363	 
	 

U.S. Patents

	 	 	 	 	 	 	 	 
	 
	 	 Title	 	 	Number	 
	 	Method for Screening for Agents Which Increase Telomerase
Activity in a Cell

	 	 	 	5,830,644	 	 
	 	Methods for Measuring Telomere Length

	 	 	 	5,741,677	 	 
	 	Methods for Measuring Telomere Length

	 	 	 	5,834,193	 	 
	 	Methods for Screening for Agents which Modulate Telomere Length

	 	 	 	5,686,245	 	 
	 	Methods of Screening for Compounds that Derepress or Increase
Telomerase Activity

	 	 	 	6,007,989	 	 
	 	Telomerase Activity Assays

	 	 	 	5,629,154	 	 
	 	Telomerase Activity Assays

	 	 	 	5,804,380	 	 
	 	Telomerase Activity Assays

	 	 	 	5,837,453	 	 
	 	Telomerase Activity Assays

	 	 	 	5,863,726	 	 
	 	Telomerase Activity Assays

	 	 	 	5,891,639	 	 
	 	Therapy and Diagnosis of Conditions Related to Telomere Length
and/or Telomerase Activity

	 	 	 	5,707,795	 	 
	 

Overseas Patents and Applications

	 	 	 	 	 	 	 	 	 
	 
	 	Jurisdiction	 	 	Title	 	 	Number	 
	 	Australia

	 	 	Human Telomerase Catalytic Subunit: Diagnosis
	 	 	65518/01	 
	 

Page 11

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Jurisdiction	 	 	Title	 	 	Number	 
	 	 	 	 	 	 	 	 	 
	 	

	 	 	and Therapeutic Methods	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Brazil

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	PI9712254-8
	 
	 	 	 	 	 	 	 	 	 
	 	Canada

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	 	2,267,664	 	 
	 	 	 	 	 	 	 	 	 
	 	China

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	 	97180256.4	 	 
	 	 	 	 	 	 	 	 	 
	 	Hong Kong

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	 	01107160.8	 	 
	 	 	 	 	 	 	 	 	 
	 	Korea

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	 	1019997002838	 	 
	 	 	 	 	 	 	 	 	 
	 	Norway

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	 	19991588	 	 
	 	 	 	 	 	 	 	 	 
	 	Singapore

	 	 	Human Telomerase Catalytic Subunit:	 	 	 	 	 	 
	 	 

	 	 	Diagnosis and Therapeutic Methods
	 	 	 	94355	 	 
	 	 	 	 	 	 	 	 	 
	 	Australia

	 	 	Methods for Measuring Telomere Length
	 	 	 	697882	 	 
	 	 	 	 	 	 	 	 	 
	 	Canada

	 	 	Methods for Measuring Telomere Length
	 	 	 	2,196,898	 	 
	 	 	 	 	 	 	 	 	 
	 	Hong Kong

	 	 	Methods for Measuring Telomere Length
	 	 	 	98112560.8	 	 
	 	 	 	 	 	 	 	 	 
	 	Japan

	 	 	Methods for Measuring Telomere Length
	 	 	 	9-502170	 	 
	 	 	 	 	 	 	 	 	 
	 	Mexico

	 	 	Methods for Measuring Telomere Length
	 	 	 	201219	 	 
	 	 	 	 	 	 	 	 	 
	 	Australia

	 	 	Telomerase Activity Assays
	 	 	 	682082	 	 
	 	 	 	 	 	 	 	 	 
	 	Australia

	 	 	Telomerase Activity Assays
	 	 	 	723767	 	 
	 	 	 	 	 	 	 	 	 
	 	Austria

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Belgium

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Canada

	 	 	Telomerase Activity Assays
	 	 	 	2,173,872	 	 
	 	 	 	 	 	 	 	 	 
	 	Denmark

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Europe

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	France

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Germany

	 	 	Telomerase Activity Assays
	 	 	 	69424797.9	 	 
	 	 	 	 	 	 	 	 	 

Page 12

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Jurisdiction	 	 	Title	 	 	Number	 
	 	 	 	 	 	 	 	 	 
	 	Greece

	 	 	Telomerase Activity Assays
	 	 	 	3034249	 	 
	 	 	 	 	 	 	 	 	 
	 	Hong Kong

	 	 	Telomerase Activity Assays
	 	 	 	1011384	 	 
	 	 	 	 	 	 	 	 	 
	 	Ireland

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Italy

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Japan

	 	 	Telomerase Activity Assays
	 	 	 	2875394	 	 
	 	 	 	 	 	 	 	 	 
	 	Luxembourg

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Monaco

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Netherlands

	 	 	Telomerase Activity Assays
	 	 	 	0610260	 	 
	 	 	 	 	 	 	 	 	 
	 	Portugal

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Spain

	 	 	Telomerase Activity Assays
	 	 	 	2147602	 	 
	 	 	 	 	 	 	 	 	 
	 	Sweden

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	Switzerland

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 
	 	United Kingdom

	 	 	Telomerase Activity Assays
	 	 	 	0728207	 	 
	 	 	 	 	 	 	 	 	 

Page 13

 

 

Schedule 10-A

Amendment to Geron Licence Agreement 

(Pursuant to Clause 12)

This Amendment to Licence Agreement (the “Agreement”), effective ___, 2005 (the “Effective
Date”), is between Geron Corporation, a Delaware corporation having a place of business at 230
Constitution Drive, Menlo Park, California 94025 (“Geron”) and TA Therapeutics Limited, a Hong Kong
limited company whose registered office is at The Hong Kong University of Science and Technology,
Clear Water Bay, Kowloon, Hong Kong (“Newco”).

RECITALS

WHEREAS, Geron and Biotechnology Research Corporation Limited formed Newco to develop telomerase
activation for human therapeutic applications, pursuant to a Joint Venture Agreement dated March 1,
2005 (the “JV Agreement”);

WHEREAS, pursuant to the JV Agreement Geron and Newco entered into a Licence Agreement dated as of
March 21, 2005 (the “Licence Agreement”);

WHEREAS, pursuant to Clause 12.3.1 of the JV Agreement, Geron and Newco now wish to amend the
Licence Agreement;

NOW, THEREFORE, Geron and Newco agree as follows:

1. The definition of “Territory” in Section 1.9 of the Licence Agreement is amended to read as
follows:

	 	1.9  	“Territory” means means the People’s Republic of China, Hong Kong, Macau,
India, Indonesia, Cambodia, Korea, Laos, Malaysia, Burma, the Philippines, Singapore,
Taiwan, Thailand and Vietnam.

2. Section 1 of the Licence Agreement is amended to add the following new definitions as Sections
1.11, 1.12 and 1.13:

	 	1.11  	“Net Sales Revenues” means any and all gross revenues, other than Net
Sublicence Revenues, received by Newco on account of the sale or transfer of Licensed
Products by Newco, less amounts actually paid or payable by Newco with respect to: (a)
any applicable sales and value added taxes and any government-imposed duties
(excluding income taxes or franchise taxes), (b) trade or cash discounts and rebates,
and (c) shipping, insurance and freight costs (to the extent reflected in the relevant
invoice).
	 
	 	1.12  	“Net Sublicence Revenues” means any and all gross revenues, other than Net
Sales Revenues, received by Newco for or on account of the grant of a sublicence of
any of the rights granted under the Licence Agreement, less:

Page 1

 

	 	   	any applicable sales and value added taxes and any government-imposed duties
(excluding income taxes). Net Sublicence Revenues include, without limitation,
upfront fees or equity, milestone payments, annual licence fees, success fees,
share of profits, and royalty payments, but exclude payment by a third party of
Newco’s expenses for research employees and laboratory supplies and equipment
directly related to research and development of Licensed Products.
	 
	 	1.13  	“Newco Revenues” means Net Sales Revenues and Net Sublicence Revenues.

3. Section 7.2 of the Licence Agreement is deleted in its entirety and replaced by the following
new Section 7.2:

7.2 Termination. This Agreement may be terminated:

	 	(a)  	by Geron upon sixty (60) days written notice to Newco for
Newco’s breach of this Agreement, unless such breach is cured to Geron’s
reasonable satisfaction within said sixty (60) day period, or
	 
	 	(b)  	by Newco upon sixty (60) days written notice to Geron for
Geron’s breach of this Agreement, unless such breach is cured to Newco’s
reasonable satisfaction within said sixty (60) day period, or
	 
	 	(c)  	by either party upon written notice to the other party if the
other party files a voluntary petition in bankruptcy or an involuntary
petition is filed against it and not dismissed within sixty (60) days of
filing.

4. A new Section 12 is added at the end of the Licence Agreement, reading as follows:

	 	12.  	Diligence, Reports and Publications.
	 
	 	  	12.1 Diligence. Within thirty (30) days of the effective date of this Amendment to
the Licence Agreement, Newco will deliver to Geron a development plan (the
“Development Plan”) that will include Newco’s research and development and
commercialization work plans for the development and commercialization of Licensed
Products and a description of proposed Licensed Products. Newco may make
reasonable amendments to the Development Plan from time to time to reflect the
results of its development work, provided that the amended Development Plan
continues to include all the elements described in the previous sentence and that
Newco provides Geron promptly with a copy of any amended Development Plan. Newco
will diligently pursue the development and commercialization of Licensed Products
in the Field of Use as set forth in and in accordance with the timeline in the
then-current Development Plan. Newco’s noncompliance in a material respect with
the

Page 2

 

	 	   	Development Plan shall be deemed a material breach of the Licence Agreement,
provided that failure to achieve an objective by a deadline for reasons beyond
Newco’s control and in spite of Newco’s diligent efforts shall not be deemed a
material breach. For purposes of this provision, if Newco’s noncompliance with the
Development Plan consists of a failure to take an action or achieve an objective by
a deadline, Newco may cure such noncompliance by taking such action or achieving
such objective within the 60-day notice period.
	 
	 	  	12.2 Development Reports. On each anniversary of the effective date of this
Amendment to the Licence Agreement, Newco will provide Geron with an annual
progress report summarizing its activities under the Development Plan, its progress
in bringing Licensed Products to market and accomplishing the Development Plan, and
any departures or anticipated departures from the Development Plan.

5. A new Section 13 is added at the end of the Licence Agreement, to read as follows:

     13. Royalties and Revenue Sharing.

	 	  	13.1 Newco shall pay to Geron a royalty equal to * percent (*%) of Newco Revenues
generated after the date of this Agreement. If Newco receives Newco Revenues in the
form of non-cash consideration (other than equity securities of a third party) for
any Licensed Product sold or otherwise transferred to an independent third party
hereunder, Newco will pay Geron the royalty computed in accordance with the
previous sentence, based upon the fair market value of such non-cash consideration
on the date of its receipt by Newco. If Newco receives Newco Revenues in the form
of equity securities of a third party, Newco will transfer to Geron * percent (*%)
of the number of shares of such equity securities. Notwithstanding the foregoing,
Geron shall not be entitled to any royalties on either (a) Net Sales Revenues for
any Licensed Products that are made, used, and sold in a country or jurisdiction in
which (i) there has never been any Valid Claims under the Geron Existing IP and any
applicable Geron Background IP, or (ii) in which all Valid Claims under the Geron
Existing IP and any applicable Geron Background IP have expired, or (b) Net
Sublicence Revenues in respect of any such country or jurisdiction.
	 
	 	   	Newco shall pay to Geron the royalties specified in Section 13.1 on a quarterly
basis within 60 days after the end of each calendar quarter. With each payment
Newco shall provide Geron with a written report that includes, for each calendar
quarter, on a product-by-product and country-by-country basis: (i) the identity and
quantity of Licensed Products sold by

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

Page 3

 

	 	   	Newco or its sublicensees; (ii) the identity of the countries in which such
sales have been made; (iii) the gross and Net Sales Revenues from such sales; and
(iv) the gross and Net Sublicence Revenues received by Newco, on a
sublicence-by-sublicence basis. After the first such report of sales with respect
to any country, the reports shall include that country whether or not Newco or its
sublicensees have engaged in any sales in that country during said quarter. Newco
shall provide a copy of its audited financial statements for each relevant
financial year to Geron as soon as practicable after they are prepared together
with a written statement from a director or officer of Newco certifying the amount
of the royalties payable to Geron in respect of such financial year. Any
discrepancy as to the amount of royalties payable as shown by the audited financial
statements for the relevant financial year shall be promptly corrected, within five
(5) Business Days after such audited financial statements are made available to
Newco, by payment or refund by either Geron or BRC (as appropriate) of the
difference in the amount of royalties payable, together with the accrued interest.
All payments of royalties by Newco to Geron hereunder shall be made in US$, without
any set-off, deduction or withholding of any kind. If Newco is overdue with any
payment of royalties to Geron hereunder, then Newco shall be liable to pay interest
on the overdue amount at an annual rate of 3% above the prevailing prime lending
rate of The Hongkong and Shanghai Banking Corporation Limited, which interest shall
accrue on a daily basis from the due date for payment until Geron has received
payment of all outstanding sums in full.
	 
	 	  	13.2 Payments Generally. All payments shall be made in U.S. dollars by wire
transfer to the account designated by Geron to Newco in writing from time to time
and shall be considered received on the date such funds actually are received in
the account. Newco shall be solely responsible for any and all payments due from
its sublicensees.
	 
	 	  	13.3 Non-U.S. Sales – Conversion and Withholding.
	 
	 	  	(a) Royalties shall be calculated in the currency in which they are received by
Newco, and converted into U.S. dollars and paid in U.S. dollars on the basis of the
average of the closing spot selling exchange rates on the last Business Day of the
calendar quarter as reported by the Wall Street Journal. If the Wall Street
Journal ceases to publish currency exchange rates, the parties shall agree to an
alternate reference.
	 
	 	  	(b) If Newco or any other person is required by any law or regulation to make any
deduction or withholding (on account of tax or otherwise) from any payment, Newco
shall, or (as the case may be) shall procure that its sublicensee or such other
person shall, together with such payment, pay such additional amount as will ensure
that Geron receives (free and clear of any tax or other deductions or withholdings)
the full amount which it would have received if no such deduction or withholding
had been

Page 4

 

	 	  	required. Newco shall forward to Geron with its royalty report copies of official
receipts or other evidence showing that the full amount of any such deduction or
withholding has been paid over to the relevant taxation or other authority.
	 
	 	  	13.4 Records and Audit. Newco shall keep proper and adequate records and accounts
of Net Sales Revenues and Net Sublicence Revenues in sufficient detail to enable
the amounts payable to Geron under this Section 13 to be reasonably determined.
Newco shall require its sublicensees to keep such records as required by this
Section 13.4 and shall be solely responsible to Geron for such sublicensees’
compliance with this Section 13.4. Upon reasonable notice to Newco, Geron shall
have the right to have an independent certified public accountant, selected by
Geron and reasonably acceptable to Newco, and under an appropriate obligation of
confidentiality, audit Newco’s and Newco’s sublicensees’ records pertaining to
Licensed Products during normal business hours to verify the amounts payable
pursuant to this Agreement; provided, however, that such audit: (i)
shall not take place more frequently than once a year; and (ii) shall not cover
such records for more than the preceding five (5) years. Such audit shall be at
Geron’s expense unless Newco has paid Geron less than ninety percent (90%) of the
amount determined to be due for any full calendar year, in which case Newco shall
reimburse Geron for all expenses related to such audit. Any discrepancy between
the amount of royalties payable as shown by the results of such audit and the
amount of royalties actually paid shall be promptly corrected, within ten (10)
Business Days after the results of such audit are made available to Newco, by
payment or refund, by either Geron or Newco (as appropriate) of the difference in
the amount of royalties payable, together with accrued interest. Newco shall (and
shall require its sublicensees to) preserve and maintain all such records and
accounts required for audit for a period of at least five (5) years after the
quarter to which such records and accounts apply.

6. In all other respects, the Licence Agreement remains unchanged and in full force and effect.

IN WITNESS THEREOF, Geron and Newco have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first written above.

	 	 	 	 	 	 	 	 	 	 	 
	GERON CORPORATION	 	TA THERAPEUTICS LIMITED
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 

Page 5

 

Schedule 11

Geron Services Agreement 

This Services Agreement (the “Agreement”), effective 21st March, 2005, (the “Effective
Date”), is between Geron Corporation, a Delaware corporation having a place of business at 230
Constitution Drive, Menlo Park, California 94025 (“Geron”) and TA Therapeutics Limited, a Hong Kong
limited company whose registered office is at The Hong Kong University of Science and Technology,
Clear Water Bay, Kowloon, Hong Kong (“Newco”).

RECITALS

WHEREAS, Geron and Biotechnology Research Corporation Limited (“BRC”) have formed Newco to develop
telomerase activation for human therapeutic applications, pursuant to a Joint Venture Agreement
dated March 1, 2005 (the “JV Agreement”);

WHEREAS, under the JV Agreement Geron agrees to enter into this Agreement to perform certain
services for Newco;

NOW, THEREFORE, Geron and Newco agree as follows:

AGREEMENT

1. Definitions.

Capitalized terms not defined in this Agreement shall have the meanings set forth in the JV
Agreement.

2. Services.

2.1. Business Services. From time to time Newco and Geron may agree on certain business,
administrative, management or professional services (“Business Services”) that Geron will
perform or cause to be performed for Newco in accordance with the Operations Plan. The
scope, period of performance, expected cost, and other terms and conditions for such
Business Services, as agreed upon by Newco and Geron, will be set forth in a Business
Services Addendum to this Agreement, signed by both parties. The parties contemplate that
a separate Business Services Addendum will typically be executed for each distinct category
of Business Services.

2.2. Scientific Services. From time to time Newco and Geron may agree on certain
scientific research and development work (“Scientific Services”) that Geron will perform or
cause to be performed for Newco in accordance with the Operations Plan. The scope, period
of performance, expected cost, and other terms and conditions for such Scientific Services,
as agreed upon by Newco and

 1

 

Geron, will be set forth in a Scientific Services Addendum to this Agreement, signed by
both parties. The parties contemplate that a separate Scientific Services Addendum will
typically be executed for each distinct research and development project.

2.3. Performance of Services. Geron will perform all Business Services and Scientific
Services (collectively, “Services”) in accordance with this Agreement and each applicable
Business Services Addendum or Scientific Services Addendum (each an “Addendum” and
collectively “Addenda”). Geron warrants that the Services shall be provided with
reasonable skill and care and the same degree of care and diligence that Geron uses for
similar activities on its own behalf and shall conform to standards generally observed in
the biotechnology industry for similar services and Geron will use commercially reasonable
efforts to provide the Services in a timely manner.

2.4. Personnel. Geron will use qualified and experienced personnel with the necessary
skills and expertise to perform all Services to be performed under this Agreement.

2.5. Third Party Contractors. Geron may engage qualified third-party contractors,
consultants or service providers to perform, or assist Geron in performing, the Services,
but only if and to the extent specifically authorized by the applicable Addendum. Geron
will remain responsible for the due performance of the Services.

3. Payment for Services.

3.1. Direct Cost Reimbursement. In consideration for the Services, Newco will pay Geron
the Direct Cost (as defined in Section 3.2 below) of the Services provided, up to the
monetary limit specified in the applicable Addendum. Geron shall not exceed, and Newco
shall have no obligation to pay any amounts in excess of any monetary limit stated in the
applicable Addendum unless approved in writing in advance by Newco.

3.2. Definition of Direct Costs. The “Direct Cost” of Services shall mean the sum of the
following:

     (a) Salaries and wages of Geron’s employees employed in the performance of the
Services. Labor charges will be based on time sheets approved by the respective
employee’s supervisor or such other method as is appropriate for the type of
service provided and customarily used by Geron;

     (b) Geron’s actual cost of employee benefits for such employees (calculated on
a pro rata basis by reference to the actual time they are employed in the
performance of the Services);

2

 

     (c) Geron’s actual cost for third-party contractors, consultants and service
providers authorized pursuant to Section 2.5;

     (d) Geron’s actual cost for supplies purchased for use in the performance of
the Services;

     (e) A percentage of Geron’s actual cost for common supplies, calculated based
on the allocation method used by Geron for such supplies for government grants;

     (f) Geron’s actual cost for equipment purchased which is substantially
dedicated for use in performance of the Services and specifically authorized in the
applicable Addendum, and for maintenance of such equipment;

     (g) Geron’s reasonable travel and related expenses incurred in connection with
the performance of the Services by employees whose salaries and wages are
chargeable under sub-section (a) above who have been reimbursed under Geron’s usual
practice and in accordance with Geron’s travel policy, provided that the travel has
been approved in advance by Newco in the applicable Addendum or otherwise in
writing;

     (h) Other reasonable out-of-pocket expenses incurred by Geron that are
necessary for the proper performance of the Services and which have been approved
in advance by Newco in the applicable Addendum or otherwise in writing.

3.3. Billing and Payment. Geron shall submit a monthly invoice to Newco for each calendar
month on or before the fifteenth (15th) Business Day of the following calendar month. Each
such invoice shall state separately for each Addendum the Direct Cost of Services provided
in such month under such Addendum. Newco will pay Geron the amount due under each invoice
within thirty (30) calendar days after receipt of the invoice.

4. Limitations on Services.

4.1. No Representation or Warranty. The parties acknowledge that Geron is not in the
business of providing the Services as set forth in this Agreement, and is entering into
this Agreement as an accommodation to Newco in connection with the JV Agreement. EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN AN ADDENDUM, Geron does not make any express or
implied representations, warranties or guarantees relating to the Services to be provided
hereunder or the quality or results of such services. EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT OR IN AN ADDENDUM, ALL SERVICES PROVIDED HEREUNDER ARE PROVIDED TO NEWCO ON AN
“AS IS” BASIS WITHOUT WARRANTY OF ANY KIND. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT
OR IN AN

 3

 

ADDENDUM, GERON HEREBY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, INCLUDING
WITHOUT LIMITATION THE IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

4.2. Alternatives. If Geron reasonably believes it is unable to provide any of the
Services because of a failure to obtain necessary consents, licences, sublicences or
approvals or because of illegality or another cause beyond Geron’s control, the parties
shall cooperate to determine the best alternative approach. Until such alternative
approach is found or the problem is otherwise resolved to the satisfaction of the parties,
Geron shall use commercially reasonable efforts to continue providing the Services. To the
extent an agreed-upon alternative approach requires payment above and beyond that which is
included in Geron’s charge for the Services in question, Newco shall be responsible for any
such payment only if Newco agrees in advance in writing, provided that if Newco does not
agree to be responsible for such payment, Geron will not be required to pursue such
alternative approach.

5. Term and Termination.

5.1. Term. The term of this Agreement shall begin on the Effective Date and expire on the
eighth (8th) anniversary of the Effective Date, unless earlier terminated as provided
below.

5.2. Termination of Agreement. This Agreement and all Addenda shall be terminated
automatically, as provided in Clause 13.1.1 of the JV Agreement, if Newco is placed in
winding up pursuant to the provisions of Clause 11 or Clause 12 of the JV Agreement or
otherwise. In addition, this Agreement may be terminated as follows:

5.2.1. By Newco, upon ten (10) days written notice, if Geron is in material breach
of its obligations under this Agreement or any Addendum and such breach, if capable
of remedy, has not been remedied to the reasonable satisfaction of Newco at the
expiry of 60 days following receipt by Geron of a notice in writing from Newco
notifying Geron of such breach and reasonably indicating the steps required to be
taken to remedy the failure;

5.2.2. By Newco, upon ten (10) days written notice, if Geron ceases to be a
Shareholder of Newco;

5.2.3. By Geron, upon ten (10) days written notice, if Newco is in material breach
of its obligations under this Agreement or any Addendum and such breach, if capable
of remedy, has not been remedied to the reasonable satisfaction of Geron at the
expiry of 60 days following receipt by Newco of a notice in writing from Geron
notifying Newco of such

4

 

breach and Default Notice reasonably indicating the steps required to be taken to
remedy the failure;

5.2.4. By Geron, upon sixty (60) days written notice, if Geron ceases to be a
Shareholder of Newco.

5.3.
Termination of Addendum. Any Addendum may be terminated as follows, unless such
Addendum provides otherwise:

5.3.1. By Newco, upon thirty (30) days written notice, with or without cause.

5.3.2. By Newco, upon ten (10) days written notice, if Geron is in material breach
of its obligations under such Addendum and such breach, if capable of remedy, has
not been remedied to the reasonable satisfaction of Newco at the expiry of 60 days
following receipt by Geron of a notice in writing from Newco notifying Geron of
such breach and reasonably indicating the steps required to be taken to remedy the
failure;

5.3.3. By Geron, upon ten (10) days written notice, if Newco is in material breach
of its obligations under such Addendum and such breach, if capable of remedy, has
not been remedied to the reasonable satisfaction of Geron at the expiry of 60 days
following receipt by Newco of a notice in writing from Geron notifying Newco of
such breach and reasonably indicating the steps required to be taken to remedy the
failure.

5.3.4. By Geron, upon sixty (60) days’ written notice, if Geron ceases to have
available the personnel or resources required to perform the Services under such
Addendum, provided that this section 5.3.4 will not apply with respect to personnel
or resources designated by Geron as being dedicated to the performance of the
Services .

5.4. Upon any termination of an Addendum, Geron shall immediately cease performance of
services in respect of such Addendum and Newco shall be liable only for Direct Costs in
respect of such Services up to the effective date of termination, and Direct Costs to be
incurred after the effective date of termination to the extent that Geron is legally
obligated to incur them and is unable to cancel the obligation despite reasonable efforts.

6. Indemnification and Limitation of Liability.

6.1. Indemnification. Geron shall indemnify, defend, and hold harmless Newco and its
officers, directors, employees and agents (each person or entity, an “Indemnified Person”),
from any liability, loss, claim, expense, proceeding, action and/or damage incurred by the
Indemnified Person by reason of any act performed or omitted to be performed by Geron, its
officers, directors, employees and/or agents in connection with the Services, including
reasonable attorneys’

 5

 

fees and costs and any amounts expended in the settlement of any such claims of liability,
loss, or damage and which arises out of or in relation to or by reason of:

	 	(a)  	the negligence, recklessness or intentional misconduct of Geron, its
officers, directors, employees and/or agents in the provisions of the Services; or
	 
	 	(b)  	any act or omission of Geron, its officers, directors, employees and/or
agents outside the prescribed or authorized scope of the Services as defined by the
applicable Addendum.

6.2. Limitation of Liability. IN NO EVENT WILL GERON BE LIABLE TO NEWCO FOR INDIRECT OR
CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS.

7. Intellectual Property.

7.1. Subject to the rights of Third Parties in Intellectual Property, Newco shall own all
Collaboration Inventions generated by Geron and/or its employees in the course of carrying
out the Services.

7.2. In the case of Collaboration Inventions made by employees or agents of Geron (alone
or in collaboration with others), Geron shall assign to Newco all its right, title and
interest in such Collaboration Inventions.

7.3. Geron shall ensure that its employees and agents shall, where necessary, agree to
assign to Newco (or assign to Geron for assignment to Newco under Section 7.2) their
interest in any Collaboration Inventions generated by them in the course of carrying out
the Services.

7.4. Geron shall use all reasonable endeavours to procure its employees and agents to
fully disclose and record all Collaboration Inventions to enable Newco to fully collect,
protect, exploit and commercialise the Collaboration Inventions.

7.5. Geron shall procure that, where necessary, written and irrevocable waivers of any
such moral or other non-transferable rights in respect of the Collaboration Inventions have
been given by its employees and agents in favour of Newco.

7.6. Geron shall do all things reasonably necessary, co-operate in good faith and provide
such assistance as may be necessary and do all things as may be required to disclose,
protect, maintain, enforce and/or transfer or assign the Collaboration Inventions, and
shall procure that its employees and agents shall co-operate in the provision of such
assistance including preparing and signing all forms, applications, documents, agreements
and deeds to give effect to and complete the transactions, assignments, and licences
contemplated by this Section 7.

 6

 

7.7. The provisions of this Section 7 shall survive any termination of this
Agreement.

8. Confidentiality.

8.1. Confidential Information. “Confidential Information” means all non-public and/or
proprietary information owned or possessed by the disclosing party and specifically
designated as such. Confidential Information includes, without limitation, any methods,
techniques and processes, and technical and scientific data, unpublished findings,
biological material, know-how, specifications, patent applications, algorithms, programs,
designs, drawings, and formulae, and engineering, manufacturing, marketing, development,
sales, research, operations, financial and business plans and data disclosed by a party to
the other party hereunder. Each party shall ensure that written confidential information
is marked “confidential” or with a comparable marking and that confidential information not
disclosed in writing is reduced to writing and marked as “confidential” or with a
comparable marking within thirty (30) days of disclosure provided that information (other
than scientific know-how and scientific techniques) exchanged by the parties hereunder or
otherwise that relates to the business or operations of Newco shall be treated as
confidential whether or not so marked.

8.2. Confidentiality Obligations. In the course of this Agreement, either or both of the
parties may disclose Confidential Information to the other. Except as expressly set forth
in this Agreement, during the term of this Agreement or a period of four (4) years from
receipt thereof, whichever is longer, the recipient of the Confidential Information will
use such information only for purposes of performing its obligations and/or exercising its
rights under this Agreement, and will not disclose such information except to its employees
and consultants. Each of the parties will ensure that its employees or consultants who
receive access to the other party’s Confidential Information are legally obligated to
maintain the confidentiality of such Confidential Information, and such party shall be
responsible for the compliance of its employees or consultants. Each party represents to
the other that the terms of this Section 8 do not conflict with any of the representing
party’s obligations to any other person or entity.

8.3. Exceptions to Confidentiality. The restrictions on use and disclosure of
Confidential Information shall not apply to information to the extent any of the following
is true:

	 	(a)  	the information is now, or hereafter becomes, through no act
or failure to act on the part of the recipient, generally known or available
to the public;
	 
	 	(b)  	the information is known by the recipient or is already in
the possession of the recipient before it receives the information from the
disclosing party;

7

 

	 	(c)  	the information is furnished to the recipient by a third
party who did not acquire the information directly or indirectly from the
disclosing party or under an obligation of confidentiality to the disclosing
party or otherwise under circumstances in which such third party did not have
the legal right to acquire and furnish to the recipient the information in
question;
	 
	 	(d)  	the information is independently developed by the recipient
without use or knowledge of the Confidential Information;
	 
	 	(e)  	the information is required by law or by order of any court
or governmental authority to be disclosed by the recipient. In the event of
such compulsory disclosure, however, the recipient shall use reasonable
efforts to give the disclosing party sufficient advance written notice to
enable it to seek a protective order or other remedy to protect such
Confidential Information. The recipient shall use reasonable efforts to
disclose only the minimum Confidential Information required to be disclosed,
whether or not a protective order or other remedy is in place;
	 
	 	(f)  	the information is made available by the disclosing party to
a third party without similar restrictions; or
	 
	 	(g)  	the information (i) does not relate to the business or
operations of Newco or is scientific know-how or scientific techniques and
(ii) is not disclosed in writing or reduced to writing and marked as
“confidential” or with other comparable marking within thirty (30) days of
disclosure.

9. Publication. Except
as otherwise specified in the applicable Addendum, publication of results,
records, or other information arising out of or relating to Services will be permitted only with
the prior written consent of Newco’s Joint Operating Committee. Newco may withhold that consent if
Newco believes that such publication or disclosure may compromise or adversely impact Newco’s
product development efforts, competitive position, or business. If Geron wishes to make such a
publication or disclosure, it will submit a draft manuscript or disclosure for review by Newco at
least forty-five (45) days prior to the date of submission for publication or public disclosure.
Newco will, within forty-five (45) days after all members of Newco’s Joint Operating Committee have
received the draft, communicate to Geron in writing its decision to:

(i) consent to the publication or disclosure as submitted without changes; or

(ii) consent to the publication or disclosure provided that specified information is
deleted, or that publication or disclosure is delayed for a period, not to exceed sixty
(60) days, sufficient to permit Newco to file any desire patent applications, or both; or

 8

 

(iii) withhold
consent to the publication or disclosure.

Any publication arising out
of or relating to this Agreement shall recognise intellectual
contributions by co-authorship and/or acknowledgement, in accordance with applicable academic
norms.

10. Miscellaneous.

10.1 Independent Contractor. Geron and Newco agree that, in performing its obligations
under this Agreement, Geron shall be an independent contractor, and that neither Geron nor
any of its employees or agents shall be deemed for any purpose to be an employee or agent
of Newco and Geron shall not hold itself out as such. Nothing in this Agreement shall be
deemed to give Geron any right or power to bind Newco to any obligation.

10.2 Governing Law; Dispute Resolution. The validity, construction and enforceability of
this Agreement shall be governed by and construed in accordance with the laws of Hong Kong
without regard to choice of law provisions. Any dispute arising out of this Agreement
shall be resolved as provided in Clause 34.2 of the JV Agreement.

10.3 Notice. Any notice required to be given by either party to the other party may be
made (i) by hand delivery by Federal Express or comparable private courier service to the
other party’s address given herein or such other address as may from time to time be
notified for this purpose or (ii) by facsimile transmission to a facsimile number notified
in writing by the other party for this purpose. Any properly addressed notice served by
hand shall be deemed to have been served on delivery and any notice served by facsimile
transmission shall be deemed to have been served when received, as shown by a confirmed
transmission report.

10.4 Severability. If any provision in this Agreement shall be found or be held to be
invalid or unenforceable then the meaning of said provision shall be construed, to the
extent feasible, so as to render the provision enforceable, and if no feasible
interpretation would save such provision, it shall be severed from the remainder of this
Agreement which shall remain in full force and effect unless the severed provision is
essential and material to the rights or benefits received by either party. In such event,
the parties shall use best efforts to negotiate, in good faith, a substitute, valid and
enforceable provision or agreement which most nearly effects the parties’ intent in
entering into this Agreement.

10.5 No Waiver. No waiver of any term or condition of this Agreement shall be valid or
binding on a party unless the same shall have been set forth in a written document,
specifically referring to this Agreement and duly signed by the waiving party. The failure
of a party to enforce at any time any of the provisions of this Agreement, or the failure
to require at any time performance by the other party of

 9

 

any of the provisions of this Agreement, shall in no way be construed to be a present or
future waiver of such provisions, nor in any way affect the ability of a party to enforce
each and every such provision thereafter.

10.6 Assignment. This Agreement may not be assigned without the written consent of both
of the parties to this Agreement. Any assignment not in conformance with this Section 10.6
shall be null, void and of no legal effect. This Agreement shall inure to the benefit of,
and shall be binding upon, the parties and their respective permitted successors and
assigns.

10.7. Counterparts. This Agreement may be executed in any number of counterparts, and each
counterpart shall constitute an original instrument, but all such separate counterparts
shall constitute only one and the same instrument.

10.8. Force Majeure. Neither party shall be liable for any delay in performing any of its
obligations under this Agreement to the extent that such delay is directly caused by any
occurrence which is beyond the reasonable control of the party so delaying, including,
without limitation, delays arising out of acts of God, acts or orders of any government
agency or instrumentality thereof, acts of public enemy, riots, embargoes, strikes,
casualties or accidents, deliveries of materials, transportation or shortage of cars,
trucks, fuel, power, labor or materials, interruption of or delay in transportation,
unavailability of, interruption of or delay in telecommunications, or any other causes,
circumstances or contingencies within or without the United States of America which are
beyond the reasonable control of such party and such party shall be entitled (subject to
giving the other party full particulars of the circumstances in question and to using its
best endeavours to resume full performance without avoidable delay) to a reasonable
extension of time for the performance of such obligations. Notwithstanding the occurrence
of any force majeure event, this Agreement shall continue in full force for the remainder
of its term and any renewals thereof.

10.9. Variation. No variation or amendment to this Agreement shall be effective unless in
writing signed by authorized representatives of each of the parties.

IN WITNESS WHEREOF, the parties hereto have executed this Services Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	TA THERAPEUTICS LIMITED	 	GERON CORPORATION
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Chu Ching-Wu
	 	By:
	 	/s/ David L. Greenwood	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 
	

	 	Chu Ching-wu
	 	 	 	David L. Greenwood	 	 	 	 
	

	 	Director
	 	 	 	Executive Vice President and	 	 	 	 
	

	 	 	 	 	 	Chief Financial Officer	 	 	 	 

 10

 

Schedule 12

Existing Compounds

GRN140665

GRN139951

 

 

Schedule 13

Phase I Work Plan

Objectives

	A.  	*

	 
	B.  	*

A.     Strategy
for Drug Development

	 	1.  	*

	 
	 	2.  	*

	 
	 	3.  	*

	 
	 	4.  	*

	 
	 	5.  	*

B.     Strategy
 for Discovery Research

	 	1.  	*

	 
	 	2.  	*

	 
	 	3.  	*

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

 

 

A. Drug Development Workplan

	*  	 
	 
	o  	*

	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *

	*  	*
	 
	o  	*

	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *

o *

	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *

	o  	*

	 	   	Ø *
	 
	 	   	Ø *

	o  	*

	 	   	Ø *
	 
	 	   	Ø *

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

 

 

	o  	*

	 	   	Ø *
	 
	 	   	Ø *
	 
	 	   	Ø *

	o  	*

	 	   	Ø *
	 
	 	   	Ø *

o *

B. Discovery Research Workplan

	*  	 
	 
	1.  	*

	 	a.  	*
	 
	 	b.  	*
	 
	 	c.  	*

	2.  	*

	 	a.  	*

	3.  	*

	 	a.  	*

     i. *

     ii. *

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

 

 

Job Descriptions for TA JV

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Phase I FTEs (#)	 	 	Responsibilities	 	 	Requirements	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	*	 
	 	 

	 	 	•      *
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	 
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	 
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	 	 
	 	 

	 	 	•      *
	 	 	 	 
	 	 

	 	 	•      *
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•      *
	 	 	•      *	 
	 	 

	 	 	•      *
	 	 	 	 
	 	 	 	 	 	 	 	 	 

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

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Discovery Research Phase	 	 	 	 	 	 	 
	 	I&II FTEs (#)	 	 	Responsibilities	 	 	Requirements	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 

	 	 	•       *
	 	 	•      *	 
	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 

	 	 	•       *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 

	 	 	 
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 

	 	 	•       *
	 	 	•      *	 
	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	•      *	 
	 	 	 	 	 	 	 	 	 

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

 

 

Schedule 14

Phase II Work Plan

Drug Development Workplan:

	 	 	 
	*
	 	 
	 
	 	 
	o     *
	 	 
	

	 	Ø     *
	

	 	Ø     *
	 
	 	 
	o     *
	 	 
	

	 	Ø     *
	

	 	Ø     *
	

	 	Ø     *
	

	 	Ø     *
	 
	 	 
	o     *
	 	 
	

	 	Ø     *
	

	 	Ø     *
	

	 	Ø     *
	

	 	Ø     *
	 
	 	 
	o     *
	 	 
	 
	 	 
	o     *
	 	 

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

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Phase II FTEs (#)	 	 	Responsibilities	 	 	Requirements	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	*
	 	 	*	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	*	 
	 	 

	 	 	•       *
	 	 	 	 
	 	 

	 	 	•       *
	 	 	 	 
	 	 

	 	 	•       *
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	•       *
	 	 	*	 
	 	 

	 	 	•       *
	 	 	 	 
	 	 

	 	 	•       *
	 	 	 	 
	 	 

	 	 	•       *
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	*

	 	 	 
	 	 	 	 
	 	 	 	 	 	 	 	 	 

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

 

 

IN WITNESS whereof this Agreement has been executed by the Parties and is intended to be and
is hereby delivered on the date appearing at the head hereof.

	 	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	BIOTECHNOLOGY

	 	 	)	 	 	/s/ Roland Chin	 	 
	RESEARCH CORPORATION

	 	 	)	 	 	 	 	 
	LIMITED

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	  /s/ Connie SO Yan-yan
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by David Greenwood

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	GERON CORPORATION

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	/s/ David L. Greenwood
 	 
	 	David Greenwood 	 
	 	Executive Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 
	/s/ James Griffiths	 	 
	 	 	 
	Witness
	 	 	 	 
	Name: James B. Griffiths, Solicitor	 	 
	Address: 1105 – 1009 Jardine House	 	 
	

	 	1 Connaught Place
	 	 
	

	 	Hong Kong.
	 	 
	Occupation:exv10w2

 

EXHIBIT 10.2

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS *. A
COMPLETE, UNREDACTED VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

Execution Copy

FORMATION AND SHAREHOLDERS AGREEMENT

     This FORMATION AND SHAREHOLDERS AGREEMENT (“Agreement”) is made as of April 5, 2005, by and
among stART Licensing, Inc., a Delaware corporation (the “Company”), Exeter Life Sciences, Inc., an
Arizona corporation (“Exeter”) and Geron Corporation, a Delaware corporation (“Geron”) (each of
Exeter and Geron, a “Shareholder” and, together, the “Shareholders”; each of the Shareholders and
the Company, a “Party” and, collectively, the “Parties”).

RECITALS

     A. The Shareholders wish to form an entity for the purpose of managing their Intellectual
Property interests and related rights in the Field.

     B. Exeter has formed and wholly owns the Company. At the Closing (as defined below) Geron
wishes to contribute certain assets into the Company in exchange for shares in the Company. Exeter
wishes to contribute certain assets and cash into the Company in exchange for additional shares of
the Company’s common stock.

     C. The Shareholders now desire to make such contributions to the Company, and the Company
desires to accept such contributions, in each case on the terms set forth herein, and the
Shareholders wish to set forth certain understandings with respect to the management and operation
of the Company.

     NOW THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties hereby agree as follows:

AGREEMENT

1. Definitions

     1.1 “Acquisition Preferred Stock” is defined in Section 3.2(d).

     1.2 “Affiliate” means any Person: (a) that is controlled by, controls, or is under common
control with a Party (collectively, a “Controlled Person”); or (b) that is controlled by, controls,
or is under common control with any such Controlled Person, in each case for so long as such
control continues. For purposes of this definition, “control” shall mean the possession, directly
or indirectly, of power to direct or cause the direction of management or policies

Confidential

1

 

(whether through ownership of securities or other ownership interests, by contract or
otherwise), provided however, that two companies shall not be deemed to be under common control by
virtue of the possession by one Person of such power with respect to both companies if (i) such
Person exercises such power solely through delegates, e.g., members of the board of directors of
each such company, and (ii) the delegates for the two companies are different, and (iii)
neither the delegates nor the Person attempts to coordinate the exercise of such power by the two
delegates. For the purpose of this Agreement, the Company shall not be considered an “Affiliate”
of either Shareholder.

     1.3 “Annual Plan” means an executive-level business operations plan that sets forth in
reasonable detail: (a) the Company’s current operational status; (b) the Company’s performance
goals for the next succeeding fiscal year, including business development, sales, and marketing
goals; (c) a comparative description of the Company’s business results for the previous year and
its performance goals for the next fiscal year; (d) a budget (including, anticipated revenues and
expenses of the Company, and assumptions for such anticipated revenues and expenses) for the next
fiscal year; (e) an expenditure budget, including details of the anticipated capital expenditures,
borrowing requirements, a cash-flow forecast consistent with the above-capital expenditures,
revenues and expenses) for the upcoming fiscal year; (f) any financing or capital requirements
necessary to achieve the Company’s business and operational goals for the next fiscal year; and (g)
the identity of any Exeter Affiliate proposed to act as a contractor for or otherwise provide
services to the Company, together with a budget for amounts to be paid to each Exeter Affiliate,
such a plan to be as approved each year and revised from time to time by the Board.

     1.4 “Applicable Law” means, as to any Person, any statute, law, rule, regulation, directive,
treaty, judgment, order, decree or injunction of any Governmental Authority that is applicable to
or binding upon such Person or any of its properties.

     1.5 “* Acquisition” is defined in Section 3.2(d).

     1.6 “Bankrupt Party” is defined in Section 8.2.

     1.7 “Board” means the board of directors of the Company.

     1.8 “Breaching Party” is defined in Section 8.2.

     1.9 “Bylaws” means the bylaws of the Company substantially in the form of attached Exhibit
1.9, as amended from time to time.

     1.10 “Business” is defined in Section 2.

     1.11 “Business Day” means a day on which commercial banks in both Arizona and California are
generally open to conduct their regular banking business.

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

Confidential

2

 

     1.12 “Certificate” means the certificate of incorporation of the Company substantially in the form
of attached Exhibit 1.12, as amended from time to time.

     1.13 “Change of Control” means a Party’s (i) sale, lease, or other disposition of all or
substantially all of its assets, rights or businesses or license or sale of substantially all of
its intellectual property, or the acquisition of a Party by, or merger, consolidation,
reorganization, business combination of a Party into or with another entity in which the
stockholders of a Party immediately prior to such acquisition, merger, consolidation,
reorganization or business combination do not own a majority of the outstanding voting shares of
the surviving, purchasing, or newly resulting business entity (a “Merger Transaction”); or (ii) any
transaction or series of related transactions to which a Party is a party in which in excess of
fifty percent (50%) of a Party’s voting power is transferred, provided, however, any consolidation,
business combination, or merger effected exclusively to change the domicile of a Party and the
issuance of shares by the Party in a transaction whose primary purpose is to raise capital for a
Party and does not involve any Merger Transaction, shall not be deemed a Change of Control.

     1.14 “Claim Notice” is defined in Section 10.2.

     1.15 “Closing” shall mean the closing of the transactions contemplated by Section 4.1.

     1.16 “Closing Date” is defined in Section 4.1.

     1.17 “Common Stock” is defined in Section 3.2(a).

     1.18 “Company” is defined in the first paragraph of this Agreement.

     1.19 “Company Intellectual Property” means the Initial Intellectual Property and any
additional Intellectual Property acquired by the Company.

     1.20 “Company Interest” means, as to any Person, the percentage interest represented by the
Securities (on an as-converted to Common Stock basis) then held by such Person divided by all then
outstanding Securities (on an as-converted to Common Stock basis).

     1.21 “Confidential Information” is defined in Section 6.2.

     1.22 “Contribution and License Agreement” means the Contribution and License Agreement, dated
as of the date hereof, among Geron, Exeter and the Company in a form agreed upon by the
Shareholders, as amended from time to time, and to be effective on the Closing Date.

     1.23 “Deadlock Event” is defined in Section 6.6.

     1.24 “Default Notice Period” is defined in Section 8.3

     1.25 “Default Ratio” is defined in Section 8.3

     1.26 “Defaulted Shares” is defined in Section 8.3

Confidential

3

 

     1.27 “Director” means a director of the Company with the powers and duties specified in the
General Corporation Law and the Certificate.

     1.28 “Disclosing Party” is defined in Section 6.2.

     1.29 “Effective Date” means the date of this Agreement.

     1.30 “Exeter Payment Breach” is defined in Section 8.3(c).

     1.31 “Exeter Purchase Price” shall mean the aggregate amount of * DOLLARS ($*) of which *
DOLLARS ($*) shall be provided to the Company at the Closing in accordance with Section 4.1 and a
total of * DOLLARS ($*) shall be provided to the Company, from time to time, in accordance with
Section 3.2(b).

     1.32 “FDA Approval” means a final public announcement, statement or notification by the FDA
permitting meat or milk from cloned animals to enter the human food chain, without imposing new
restrictions that are projected by the Board of NewCo (without requirement for Supermajority
Approval) to delay commercialization of meat or milk obtained from cloned animals for the
consumption by humans by more than 12 months; provided that if new restrictions that are projected
to cause such delay are imposed by the FDA in connection with such announcement, statement or
notification, “FDA Approval” shall mean the first bona fide commercial sale of milk or meat from a
cloned animal for human consumption complying with such new restrictions.

     1.33 “FDA Approval Payment” is defined in Section 3.2(c).

     1.34 “Field” is defined in the Contribution and License Agreement.

     1.35 “FMV” means the fair market value of the Company or the Securities subject to a proposed
Transfer, as determined by appraisal pursuant to Section 9.7.

     1.36 “General Corporation Law” means the law of the State of Delaware including any applicable
provision of Title 8 of the Delaware Code, or any successor statute, as from time to time amended
and in effect from time to time.

     1.37 “Governmental Authority” means any domestic or foreign government, governmental
authority, court, tribunal, agency or other regulatory, administrative or judicial agency,
commission or organization, and any subdivision, branch or department of any of the foregoing.

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

Confidential

4

 

     1.38 “GSC Field” means the cloning, development, making, using, selling, offering to sell,
importing or exporting of feline and canine animals and Endangered Species (as well as any
transgenic variants or enhancements thereto) for personal, business or commercial purposes.
Specifically excluded from the GSC Field is the cloning of such animals for all purposes related to
veterinary or human medical therapies, including, but not limited to, the production of
biopharmaceutical agents, proteins, peptides and polypeptides in milk, and production of
immunoglobulin in the blood of Bos taurus and Bos indicus, for pharmaceutical, nutraceutical or
other use; provided, however, GSC may make transgenic cloned animals whereby gene therapy has been
employed to correct a particular medical or health defect in that animal. “Endangered Species,” as
used in this definition, means any species that is or has ever been (i) extinct or (ii) classified
as threatened, vulnerable or in danger of extinction throughout all or a significant portion of its
range by any governmental or international authority, treaty, law or regulation or (iii) classified
under the guidelines of the Convention of International Trade of Endangered Species of Wild Fauna
and Flora.

     1.39 “Indemnified Party” and “Indemnifying Party” are defined in Section 10.1.

     1.40 “Initial Intellectual Property” means the Intellectual Property contributed to the
Company pursuant to the Contribution and License Agreement.

     1.41 “Intellectual Property” means throughout the world, any rights with respect to
intellectual property and includes (i) patents, patent applications and other patent rights; (ii)
copyrights, author’s rights, related rights (including without limitation so-called “neighboring
rights” and “sui generis” rights), database rights and similar rights; (iii) rights in, to and
under trade secrets and other rights with respect to confidential or proprietary information; (iv)
rights in, to and under trademarks, trade names, trade dress, and service marks or similar rights
with respect to identification of source or origin; (v) other rights with respect to inventions,
inventor’s certifications, invention disclosures, discoveries, improvements, know-how, formulae,
algorithms, processes, technical information and other technology; (vi) other intellectual and
industrial property rights, whether or not subject to statutory registration or protection; and
(vii) all rights under any license or other arrangement with respect to the foregoing.

     1.42 “Interested Director Provisions” is defined in Section 11.6.

     1.43 “License Consents” means written consents (in form and substance acceptable to the
Shareholders) from (a) the Roslin Institute (“Roslin”) pursuant to that certain Agreement, by and
among Roslin, Geron and the Company, entered into contemporaneously with this Agreement, and
attached hereto as Exhibit 1.43(a), and (b) Roslin pursuant to that certain Agreement, by
and among Roslin, Exeter and the Company, entered into contemporaneously with this Agreement, and
attached hereto as Exhibit 1.43(b).

     1.44 “Manager” is defined in Section 5.11.

     1.45 “Management Services Agreement” means the Management Services Agreement, dated as of the
date hereof, between the Company and the Manager, as approved by Geron, and to be effective on the
Closing Date.

 
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     1.46 “Material Adverse Effect” means, as to any Person, any event, occurrence, fact,
condition, change or effect that is materially adverse to the business, operations, prospects,
results of operations, condition (financial or otherwise), properties or assets of such Person
considered as a whole.

     1.47 “New Securities” shall mean shares of Common Stock, and any rights, options or warrants
to acquire Common Stock and any securities that are, or may become, convertible into or
exchangeable for Common Stock; provided, however, that the term “New Securities”
does not include (i) Common Stock of the Company issued to the Shareholders at the Closing; or (ii)
Common Stock issued in connection with any stock split or stock dividend of the Company.

     1.48 “Non-Bankrupt Party” is defined in Section 8.2.

     1.49 “Non-Breaching Party” is defined in Section 8.3.

     1.50 “Non Disclosure Agreements” shall mean the Mutual Confidentiality Agreement between
Exeter Life Sciences and Geron Corporation dated August 1, 2003.

     1.51 “Offer Notice” is defined in Section 9.2(a).

     1.52 “Party” and “Parties” are defined in the opening paragraph of this Agreement.

     1.53 “Person” means a natural individual, Governmental Authority, partnership, firm,
corporation, or other business association.

     1.54 “Predetermined Acquisition Guidelines” means the written Intellectual Property
acquisition guidelines developed by the Company and approved by Supermajority Approval.

     1.55 “Pre-existing License Agreements” is defined in the Contribution and License Agreement.

     1.56 “Preferred Stock” means the Acquisition Preferred Stock and any other shares of preferred
stock issued by the Company to a Shareholder.

     1.57 “Preferred Stock Repurchase Agreement” means the Preferred Stock Repurchase Agreement,
dated the date hereof, between Exeter and Geron, for the repurchase by Exeter of the shares of
Series P Preferred Stock of Exeter held by Geron and warrants held by Geron exercisable for shares
of Series P Preferred Stock of Exeter.

     1.58 “Pro Rata” means pro rata based on the relative Company Interests of the relevant
Shareholders.

     1.59 “Receiving Party” is defined in Section 6.2.

     1.60 “Related Documents” is defined in Section 11.6.

 
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     1.61 “Shareholder” and “Shareholders” are defined in the opening paragraph of this Agreement.

     1.62 “Securities” means all outstanding shares of Common Stock or Preferred Stock.

     1.63 “Selling Party” is defined in Section 9.2(a).

     1.64 “Subsidiary” shall mean any partnership, firm, corporation, or other business association
(a) that is controlled by a Shareholder (“Direct Subsidiary”); or (b) that is controlled by any
such Direct Subsidiary, in each case for so long as such control continues. For purposes of this
definition, “control” shall mean the possession, directly or indirectly, of power to direct or
cause the direction of management or policies (whether through ownership of securities or other
ownership interests, by contract or otherwise). For the purpose of this Agreement, the Company
shall not be considered a “Subsidiary” of either Shareholder.

     1.65 “Successor in Interest” is defined in Section 9.1.

     1.66 “Supermajority Approval” is defined in Section 5.7.

     1.67 “Third-Party Licensor” is defined in the Contribution and License Agreement.

     1.68 “Transaction Documents” means this Agreement, the Management Services Agreement, the
Contribution and License Agreement, the Preferred Stock Repurchase Agreement and the License
Consents.

     1.69 “Transfer” is defined in Section 9.1.

     1.70 “ViaGen Field” means Field as defined in the CT Agreement (as defined in the Contribution
and License Agreement) and further limited to the following species: bovine; porcine; and equine.

2. Business of Company

     The purpose of the Company is to be an intellectual property holding company that manages,
prosecutes, maintains and exploits the Company Intellectual Property (as amended or modified by
Supermajority Approval from time to time, the “Business”).

3. Establishment and Capitalization of the Company

     3.1 Establishment. The Company has been organized as a California corporation and, as
of the Effective Date, is a wholly owned subsidiary of Exeter.

     3.2 Capitalization.

          (a) Initial Capitalization. The Company’s initial authorized capital stock consists
of (i) 40,000 shares of Common Stock, par value $0.001 per share, (the “Common Stock”), of which,
on the Effective Date, 100 fully paid and non-assessable shares are issued and outstanding and held
by Exeter and (ii) 10,000 shares of Preferred Stock, par value $0.001 per

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share. No dividends or other distributions shall be paid with respect to any shares of Common
Stock that are not fully paid and non-assessable. Shares of Common Stock that are not fully paid
and non-assessable may be transferred pursuant to Section 9.1, provided that in the case of a
transfer by Exeter to an Affiliate, Exeter shall remain liable to the Company for the payment of
the remainder of the Exeter Purchase Price in accordance with the terms hereof. At the Closing,
the Company shall issue shares of Common Stock as follows:

               (i) Exeter Closing Subscription. On the Closing Date, Exeter shall subscribe for
4,910 partly paid and assessable shares of Common Stock (the “Exeter Closing Stock”), representing
in the aggregate, with the shares owned by Exeter on the date hereof, a fifty and one-tenth percent
(50.1%) Company Interest. The Exeter Closing Stock shall be assessable in accordance with Section
1.30.

               (ii) Geron Closing Subscription. On the Closing Date, Geron shall subscribe for 4,990
shares of Common Stock, representing in the aggregate a forty nine and nine-tenths percent (49.9%)
Company Interest.

          (b) Contribution of Remainder of Exeter Purchase Price. Exeter agrees to contribute
the remainder of the Exeter Purchase Price from time to time as required to fund the Annual Plan
but in any event within twenty four (24) months following the Closing Date.

          (c) FDA Approval Payment. Upon FDA Approval, the Parties agree that Geron shall be
entitled to receive * DOLLARS ($*) from Exeter (the “FDA Approval Payment”). Within ten (10)
Business Days of FDA Approval, Exeter agrees to pay * DOLLARS ($*) to Geron.

          (d) Acquisition Preferred Stock. In the event that the Board, by Supermajority
Approval, considers it in the best interest of the Company to cause the Company to acquire certain
rights to * * (*) technology, including rights held by * (with the scope of such
rights to be as approved by the Board, the “* Acquisition”) the Shareholders agree that up to *
DOLLARS ($*) of the cost of such acquisition shall be financed through the issuance of preferred
stock to Exeter on the terms set forth in this subsection (the “Acquisition Preferred Stock”). Any
remaining cost of such acquisition shall be paid from the operating capital of the Company, subject
to Supermajority Approval. The Company will issue such number of shares of Acquisition Preferred
Stock to Exeter, based on the amount actually contributed to the Company by Exeter to fund the *
Acquisition, as reflects a $* price for shares representing a * % Company Interest. The terms of
the Acquisition Preferred Stock will be set forth in a Statement of Designation adopted by
Supermajority Approval of the Board, and shall conform to the requirements of this subsection as
more fully described in Attachment 1. The Acquisition Preferred Stock shall not be entitled to
dividends, except on a pro rata basis with the Common Stock. The Acquisition Preferred Stock will
generally have the same voting rights as the Common Stock. The Acquisition Preferred Stock shall
be preferentially repaid to Exeter out of proceeds or available cash at the time that a liquidity
opportunity is presented to the Company’s shareholders (e.g., IPO, private equity recapitalization,
sale of the company).

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

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Following payment of such liquidation preference, the Acquisition Preferred Stock will share
on a pro rata basis with the Common Stock in any remaining proceeds.

          (e) Future Investments. Subject to Section 3.3, the Manager, pursuant to the terms of
the Management Services Agreement, shall be responsible for coordinating and arranging any
additional equity and/or debt financings from third parties necessary to sustain the operations of
the Company, as determined by the Board. The Shareholders shall be under no obligation to provide
additional capital or to loan money to, or to guarantee any borrowings of, the Company for any
purpose whatsoever.

     3.3 Preemptive Rights. Other than with respect to the Acquisition Preferred Stock,
each Shareholder shall have a preemptive right to purchase up to its Pro Rata share of any New
Securities. The Company agrees to notify each Shareholder in writing of any proposed issuance of
New Securities to which such preemptive rights apply, setting forth the terms of such offering.
Each Shareholder shall notify the other Shareholder and the Company, within twenty (20) Business
Days after receipt of such notice, of its decision to participate in any proposed issuance of New
Securities (failure to so respond during such period constituting an election not to participate).

4. Closing; Conditions Precedent

     4.1 Closing. The Closing shall take place as soon as practicable after all conditions
set forth in Article 4 are met or waived. On the date of such Closing (“Closing Date”):

          (a) The Parties shall enter into this Agreement, the Contribution and License Agreement, the
Preferred Stock Repurchase Agreement and the License Consents, and Exeter and the Company shall
enter into the Management Services Agreement.

          (b) Exeter shall pay * DOLLARS ($*) in immediately available funds of the Exeter Purchase
Price to the Company.

          (c) The Company shall issue and deliver to each Shareholder share certificates representing
the shares of Common Stock subscribed for pursuant to Section 3.2(a).

          (d) The Company shall pay FOUR MILLION DOLLARS ($4,000,000) to Geron.

          (e) The closing of the transactions contemplated by the Preferred Stock Repurchase Agreement
shall take place.

          (f) Each of the Parties shall deliver to the other Party a certificate from an officer of such
Party confirming (a) the certificate of incorporation and bylaws of such Party and (b) resolutions
of its board of directors approving the Transaction Documents and the transactions contemplated
hereby and thereby.

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

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          (g) The Parties shall deliver such other certificates, instruments or documents required
to be delivered at or prior to Closing pursuant to the provisions of this Agreement and the
Transaction Documents.

          (h) The Parties shall have approved the Annual Plan for the initial fiscal year (2005).

     4.2 Conditions Precedent to the Obligations of the Parties. The Closing shall be
subject to the satisfaction, on or before the Closing Date, of the following conditions precedent:

          (a) No order shall have been entered, and not vacated, by a court or administrative agency of
competent jurisdiction in any action or proceeding which enjoins, restrains or prohibits
consummation of any transaction contemplated by this Agreement.

          (b) All consents, approvals and other action by, all notices to and all filings with all
Governmental Authorities that are required to have been obtained, taken or made in connection with
the execution, delivery and performance of this Agreement by the Parties shall have been obtained,
undertaken or made, as the case may be.

          (c) No claim, action or other proceeding shall be pending or threatened by any Governmental
Authority or private person before any court or administrative agency which (in the opinion of
reputable counsel) creates any reasonable possibility that the consummation of any transaction
contemplated by this Agreement will be restrained, enjoined or otherwise prevented, or result in
any damages being recovered or other relief obtained against any of the Parties.

     4.3 Conditions Precedent to the Obligations of Exeter. The obligations of Exeter to
subscribe for the Common Stock in accordance with Section 3.2(a) shall be subject to the
satisfaction, on or before the Closing Date, of the following conditions precedent:

          (a) The representations and warranties of Geron in Section 7.2 and of the Company in Section
7.3 shall have been true and correct as of the date made and shall be true and correct as of the
Closing Date as if remade as of such date, Exeter shall have received certificates signed by duly
authorized officers of Geron, certifying to that effect with respect to the representations and
warranties of Geron in Section 7.2, and Geron shall have performed or complied in all material
respects with all obligations and covenants required by this Agreement to be performed or complied
with by it through the Closing Date.

     4.4 Conditions Precedent to the Obligations of Geron. The obligations of Geron to
subscribe for the Common Stock in accordance with Section 3.2(a) shall be subject to the
satisfaction, on or before the Closing Date, of the following conditions precedent:

          (a) The representations and warranties of Exeter in Section 7.1 and of the Company and Exeter
in Section 7.3 shall have been true and correct as of the date made and shall be true and correct
as of the Closing Date as if remade as of such date, Geron shall have received certificates signed
by duly authorized officers of Exeter certifying to that effect with respect to the representations
and warranties of Exeter in Section 7.1, and Exeter shall have performed or

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complied in all material respects with all obligations and covenants required by this
Agreement to be performed or complied with by it through the Closing Date.

5. Operation and Management of the Company

     5.1 Operation of the Company; Access to Information.

          (a) Each Shareholder agrees to take all actions necessary to ensure that the Company shall be
operated in accordance with the terms of this Agreement, including, without limitation, to vote (or
to execute consents, as applicable) all Securities held by it (and to cause all Securities held by
its permitted transferees under Section 9 that are Affiliates to be voted) and to cause the
Directors nominated by it to vote to effect the terms hereof.

          (b) After the Closing Date, either Shareholder may have in its possession or under its control
(or the control of persons or firms that have rendered services to or otherwise done business with
it) books, records, contracts, instruments, data and other information (collectively,
“Information”) that may prove necessary or desirable to the Manager in connection with performing
its services hereunder. Accordingly, at all times after the Closing Date, (a) each Shareholder
agrees to provide to the Manager, upon the Manager’s written request, at all reasonable times, full
and complete access to (including access to persons or firms possessing), and duplication rights
with respect to, any and all such Information as the Manager may reasonably request and require in
the conduct of the Business, and (b) each Shareholder agrees to use its best efforts to make
available to the Manager, upon the Manager’s written request, its officers, directors, employees
and agents as witnesses to the extent that such persons may reasonably be required in connection
with any legal, administrative or other proceedings in which the Company may from time to time be
involved. Information shall include, without limitation, information sought for prosecution,
maintenance, and protection of patents, audit, accounting, claims, litigation and tax purposes as
well as for, as applicable, purposes of fulfilling disclosure and reporting obligations under
federal securities laws.

          (c) In the event that, at the written request of the Company, a Shareholder makes available
any of its personnel to provide material substantive services to the Company with respect to the
Company’s day-to-day operations, such Shareholder shall be reimbursed for providing such services
in accordance with this subsection. A Shareholder will not be compensated pursuant to this
subsection for services provided to the Company in its role as a Shareholder, including (i) for
making available its personnel to serve as Directors or officers of the Company, and (ii) for the
services provided by the Directors or officers to the Company in their capacity as such. In
addition, a Shareholder will not be reimbursed for services provided pursuant to this subsection
for the first six months following the Closing Date, or for any services contemplated to be
provided at no charge by the Contribution and License Agreement. Upon receiving a written request
for services or advice from the Manager on behalf of the Company, a Shareholder may respond in
writing that it believes the request to be for material substantive services outside the scope of
its duties as a Shareholder, and indicate a proposed hourly rate at which its personnel would
perform such services, together with an estimate of the amount of time it would expect such
services to take. The Manager may then engage the personnel of such Shareholder to perform such
services on the terms set forth in the proposal, or elect to obtain such services elsewhere. For
the avoidance of doubt, in the event of any conflict

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between this Section 5.1(c) and any provision of either the Management Services Agreement or
the Contribution and License Agreement regarding the provision of services by the Shareholders to
the Company, the applicable provisions of such other agreements shall be controlling.

     5.2 No Conflicting Voting Arrangements. Each Shareholder agrees not to grant any
proxy or enter into or agree to be bound by any voting trust with respect to the Securities held by
it nor shall any Stockholder enter into any stockholder agreements or arrangements of any kind with
any Person with respect to the Securities if compliance with such proxy, voting trust, agreement or
arrangement would entail non-compliance with this Agreement (whether or not such agreements and
arrangements are with the other Shareholder). The foregoing prohibition includes, but is not
limited to, agreements or arrangements with respect to the acquisition, disposition or voting of
shares of Securities.

     5.3 Board of Directors. The Company will be managed by the Board in accordance with
the terms of this Agreement and Applicable Law. For so long as both Shareholders continue to hold
shares of Securities, the Board shall consist of five (5) Directors, three (3) of whom (including
the Chairman) shall be nominated by Exeter, and two (2) of whom shall be nominated by Geron. In
the event of purchase by Geron of Defaulted Shares as set forth in Section 8.3(c), representation
of the Shareholders on the Board may, at Geron’s request if provided in writing within sixty (60)
days of such purchase, be modified to reflect the proportionate ownership interests of the
Shareholders in the Company.

     5.4 Removal; Reappointment of Directors. Any Director may be removed for cause in
accordance with Applicable Law. In addition, each Shareholder having the right to nominate a
Director pursuant to this Section 5 shall also have the right, in its sole discretion, to remove
such Director at any time, effective upon delivery to the Company of written notice from such
Shareholder removing the Director or Directors it nominated with a copy to the other Shareholder.
In the case of a vacancy in the office of a Director for any reason (including removal pursuant to
the preceding sentence), the vacancy shall be filled by the Shareholder that nominated the Director
in question. Notwithstanding anything to the contrary herein, if a Shareholder no longer holds any
shares of Securities, the other Shareholder (“Continuing Shareholder”) shall have the right to
remove all Directors previously nominated and appointed by the other Shareholder pursuant to
Sections 5.3 and 5.4 and fill such vacancies with Directors nominated by such Continuing
Shareholder.

     5.5 Quorum. The Bylaws of the Company shall provide that the presence of a majority
of all Directors, provided that at least one Director nominated by each of Exeter and Geron are
part of such majority, shall constitute a quorum for the transaction of business by the Board and
that resolutions of the Board may be adopted only upon the affirmative vote of at least a majority
of the members of the Board present, unless a different vote is required by law, the Certificate of
the Company, the Bylaws or this Agreement.

     5.6 Board Meetings. The Bylaws shall provide that at least forty eight (48) hours
notice shall be given to each member of the Board and each committee thereof prior to any meeting
of the Board unless such notice shall have been waived in accordance with the General Corporation
Law. The Bylaws shall provide that each Shareholder shall have the authority to convene Board
meetings, including the authority to specify the time and place of such meetings.
 
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The Company shall pay the reasonable travel expenses incurred by Directors in attending any
Board meeting.

     5.7 Supermajority Consent of the Board. In addition to matters entrusted to the Board
under Applicable Law and pursuant to the other provisions of this Agreement, any of the actions
described in attached Exhibit 5.7 shall require the approval and consent of at least four
(4) Directors (a “Supermajority Approval”).

     5.8 Executive Officers.

          (a) President. The Company shall have one President, or similarly titled executive
officer (the “President”), who shall be the chief executive officer of the Company and who shall be
responsible for the day-to-day operations of the Company. The President shall be elected by the
Board from among the candidates nominated by the Manager. The President shall be appointed for a
two-year term, subject, in the case of a President who is an employee or board member of the
Manager or an Affiliate of the Manager, to the right of the Manager to remove and replace the
President at any time with the consent of the Board (which consent shall not be unreasonably
withheld).

          (b) Other Officers. The Company shall have a secretary and a treasurer, with such
duties as are set forth in the Bylaws or in the General Corporation Law. The Board or the
President may also appoint one or more vice-presidents, assistant secretaries, assistant
treasurers, and such other officers and agents with such powers and duties as it or he shall deem
necessary.

     5.9 Shareholders’ Meetings. The shareholders of the Company shall receive notice of
each shareholders’ meeting at least twenty (20) Business Days before the scheduled date of such
meeting. The Company shall have at least one shareholders’ meeting each calendar year. Such
meeting will take place at such time and place as is determined by the Board.

     5.10 Quorum for Shareholders Meetings; Voting. The Bylaws shall provide that the
presence of shareholders representing a majority of the Company Interests, provided that both
Exeter and Geron are part of such majority, shall constitute a quorum at all meetings of the
shareholders, and no meeting of the shareholders shall be validly convened or constituted unless a
quorum is present at such meeting. The Bylaws shall provide that a quorum is required for any vote
to be taken, and that the departure of a shareholder during a meeting may cause the loss of a
quorum. If a quorum is present, the affirmative vote of the majority of the shares represented at
the meeting and entitled to vote on a matter shall be the act of the Shareholders, unless the vote
of a greater number or voting by classes is required by law.

     5.11 Manager. The day-to-day operations of the Company shall be managed by a manager,
appointed by Supermajority Approval (the “Manager”). The Manager shall initially be Exeter. The
duties, rights and obligations of the Manager shall be as described in the Management Services
Agreement.

     5.12 Financial Matters.

          (a) Fiscal Year. The Company’s fiscal year shall end on December 31 of each year.

 
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          (b) Annual Plan. The Manager shall prepare and submit to the Board for its review and
approval a draft version of the Annual Plan no later than November 1 of each year and the final
version of the Annual Plan no later than December 1 of each year. The Manager may submit a
mid-term revision to any Annual Plan to the Board for approval. The Board shall cause the Company
to conduct its operations in accordance with the Annual Plan as in effect from time to time. In
the event that the Board shall not approve a final Annual Plan prior to January 1 of a given year,
then the Annual Plan in effect for the preceding year shall remain in effect until a new Annual
Plan is approved. If a new Annual Plan is not approved prior to June 30 of the applicable year,
then a Deadlock shall be deemed to have occurred.

          (c) Financial Statements and Accounting Records. Financial statements for the
Company, including, without limitation, a balance sheet, income statement, statement of cash flows
and statement of shareholders’ equity, shall be submitted by the Company to each of the
Shareholders (a) within thirty (30) days after the end of each fiscal quarter for such quarter, and
(b) within sixty (60) days after the end of each fiscal year for such year. Each of the annual
financial statements shall be audited and certified by a nationally recognized accounting firm
retained by the Manager on behalf of the Company. All financial statements shall be prepared at
the cost of the Company, shall be prepared in reasonable detail and in accordance with generally
accepted accounting principles, and shall contain such financial data as the Shareholders may
reasonably request in order to keep the Shareholders advised of the Company’s financial status
(although interim statements need not include footnotes and may be subject to year-end
adjustments). The Manager shall provide the Shareholders with such financial information as the
Shareholders may reasonably request for purposes of complying with their periodic reporting
obligations under U.S. securities law and shall cooperate with the Shareholders in connection with
complying with such obligations.

     5.13 Dividends. Subject to applicable law, the Shareholders agree, with respect to
each fiscal quarter, that if, on the last day of such fiscal quarter, the Company maintains
reserves in the form of cash or short term investments (“Cash on Hand”) equal to at least $* (the
“Retained Operating Capital”), then the Company shall distribute dividends to the Shareholders
within sixty (60) days following the end of such fiscal quarter. Such dividends shall be equal to
the amount by which Cash on Hand exceeds Retained Operating Capital, and shall be distributed on a
Pro Rata basis. Notwithstanding the foregoing, the Shareholders may, by Supermajority Approval of
the Board, agree that no such dividend shall be distributed with respect to any given fiscal
quarter.

     5.14 Access to Company Records. During the regular office hours of the Company, and
upon reasonable notice to the Manager, each Shareholder that maintains at least a ten percent (10%)
Company Interest shall have (a) full access to all facilities, books of account, and corporate and
financial records of the Company, and (b) the right to make copies from such books and records at
its own expense. Any information obtained by the Shareholders through exercise of rights granted
under this Section 5.14 shall, to the extent constituting Confidential Information hereunder, be
subject to the confidentiality provisions set forth in Section 6.2.

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

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6. Additional Covenants

     6.1 Additional Covenants of the Company.

          (a) The Company shall, promptly following the Closing, enter into a written agreement with
Viable Genetics, LLC (“Viable”), effective as of the Closing Date, pursuant to which the
Pre-existing License Agreement between Viable and Geron shall be amended to expand the licensed
field and licensed Intellectual Property to include all equine applications and uses and other
Intellectual Property licensable by the Company as of the Closing Date, in each case in territories
not then exclusively licensed, * $* (* $*). Amendment of any other terms and conditions of the
Pre-existing License Agreement shall be subject to approval by Supermajority Approval of the Board
of the Company, and acceptance by Viable.

          (b) The Company shall, promptly following the Closing, enter into a written agreement with
ViaGen, Inc. (“ViaGen”), effective as of the Closing Date, pursuant to which the Company shall
grant to ViaGen a nonexclusive sublicense under Intellectual Property licensable by the Company in
the field and territory described in the Pre-existing License Agreement between Geron and Viable
(as amended pursuant to Section 6.1(a) above) and on the same economic terms (excluding Section 4.1
(equity)) and other generally similar terms and conditions as Viable’s Pre-existing License
Agreement with Geron (as amended pursuant to Section 6.1(a) above) but excluding Section 12.2
(earlier agreement). Inclusion, omission or amendment of any other terms and conditions for the
foregoing ViaGen agreement shall be subject to approval by Supermajority Approval of the Board of
the Company, and acceptance by ViaGen.

          (c) The Company shall, promptly following Closing, enter into a written agreement with Genetic
Savings and Clone, Inc. (“GSC”), effective as of the Closing Date, pursuant to which the Company
shall grant to GSC a nonexclusive sublicense under Intellectual Property licensable by the Company
in the GSC Field. Such agreement shall include an upfront payment of * dollars ($*); other terms
and conditions shall be subject to approval by Supermajority Approval of the Board of the Company,
and acceptance by GSC.

     6.2 Confidentiality. The Parties recognize that, in connection with the performance of
this Agreement, any Party (in such capacity, the “Disclosing Party”) may disclose “Confidential
Information” (as defined below) to the other Party or the Company (the “Receiving Party”). For
purposes of this Agreement “Confidential Information” means (i) proprietary information (whether
owned by the Disclosing Party or a third party to whom the Disclosing Party owes a non-disclosure
obligation) regarding the Disclosing Party’s or any third party’s business that is marked as
confidential at the time of disclosure to the Receiving Party, or if in oral or in other intangible
form or in any form that is not so marked, that is identified as confidential at the time of such
disclosure and summarized in writing and transmitted to the Receiving Party within thirty (30) days
of such disclosure; (ii) all proprietary information and material disclosed by the Disclosing Party
in any form to the Receiving Party (x) with respect to a Shareholder, in its official capacity as a
member of the Board or as a shareholder of the Company and (y) at meetings of the Board, in the
case of clause (x) or clause (y), regardless of whether such

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

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information is marked or reduced to writing and (iii) all Confidential Information disclosed
prior to the Effective Date pursuant to the Non Disclosure Agreements. Notwithstanding anything to
the contrary set forth in the prior sentence, “Confidential Information” shall not include
information that: (A) was known to the Receiving Party at the time of the disclosure by the
Disclosing Party as indicated by the Receiving Party’s contemporaneous written records; (B) has
become publicly known through no wrongful act of the Receiving Party; (C) has rightfully been
received by the Receiving Party from a third party without a duty of confidentiality; or (D) was
independently developed by the Receiving Party without reference to the Disclosing Party’s
Confidential Information. The Receiving Party agrees (x) not to use any such Confidential
Information for any purpose other than in the performance of its obligations under this Agreement
or any Transaction Document and (y) not to disclose any such Confidential Information, except (1)
to its employees who are reasonably required to have the Confidential Information in connection
herewith or with any of the other Transaction Documents, (2) to its agents, representatives,
lawyers, outsourcers, service providers and other advisers that have a need to know such
Confidential Information, (3) to Persons in connection with a financing, strategic partnership,
merger, acquisition, investment or proposed financing, strategic partnership, merger, acquisition
or investment where such Persons are subject to an obligation of confidentiality at least
comparable to that set forth in this Section 6.2, and (4) pursuant to, and to the extent of, a
request or order by a Governmental Authority or as otherwise required by applicable law, provided,
however, that prior to any such requested or ordered disclosure, the Receiving Party shall give the
Disclosing Party reasonable advance notice of any such disclosure and shall cooperate with the
Disclosing Party in protecting against any such disclosure and/or obtaining a protective order
narrowing the scope of such disclosure and/or use of the Confidential Information of the Disclosing
Party. The Receiving Party shall take the same degree of care that it uses to protect its own
confidential and proprietary information and materials of similar nature and importance (but in no
event less than reasonable care) to protect the confidentiality and avoid the unauthorized use or
disclosure of the Confidential Information of the Disclosing Party.

     6.3 Confidentiality of Agreement; Publicity. Each Party agrees that the terms and
conditions of this Agreement and the Transaction Documents shall be treated as confidential
information and that no reference thereto shall be made by a Shareholder without the prior written
consent of the other Shareholder (which consent shall not be unreasonably withheld) or by the
Company without the prior written consent of both Shareholders (which consent shall not be
unreasonably withheld) except (a) as required by Applicable Law including, without limitation, by
the Securities and Exchange Commission (“SEC”), provided that in the event either
Shareholder determines that such disclosure is required (including the filing of this Agreement or
any Transaction Document as an exhibit or attachment to any filing with or submission to the SEC),
such disclosing Shareholder shall timely notify the other Shareholder and will give such other
Shareholder a reasonable opportunity to discuss the necessity and form of such disclosure within
the time frame provided by securities law and applicable regulatory requirements, including any
application for confidential treatment, (b) to such Party’s accountants, banks, financing sources,
lawyers and other professional advisors, provided that such parties undertake in writing (or are
otherwise bound by rules of professional conduct) to keep such information strictly confidential,
(c) in connection with the enforcement of this Agreement, or (d) in connection with a financing,
strategic partnership, merger, acquisition, investment or proposed financing, strategic
partnership, merger, acquisition or investment. Any

 
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public announcement concerning this Agreement or the subject matter hereof shall be subject to
the prior written consent of both Shareholders. Such consent shall not be unreasonably withheld or
delayed by either Shareholder. Prior to any such public announcement, the Shareholder wishing to
make the announcement will submit a draft of the proposed announcement to the other Shareholder in
sufficient time to enable the other Shareholder to consider and comment thereon, provided
that if such other Shareholder does not respond within ten (10) Business Days after receipt of such
draft in accordance with the provisions of Section 11.2, then such Shareholder shall be deemed to
have approved such announcement.

     6.4 Noncompetition; Obligation to Disclose NewCo Opportunities.

          (a) Noncompetition. Each Shareholder agrees that, for so long as this Agreement
remains in effect, neither it, nor any of its Subsidiaries, shall directly or indirectly establish,
operate, participate in the management of, or acquire an equity interest in a Person, other than
the Company, that is principally, or as one of the substantial components of its business, engaged
in licensing out Intellectual Property in the Field. The Parties acknowledge that Viable Genetics,
LLC (“Viable”) and ViaGen, Inc. (“ViaGen”), are Subsidiaries of Exeter as of the Effective Date,
and that Viable and ViaGen own, license and exploit certain Intellectual Property in the Field.
The Parties agree that Viable and ViaGen may continue to own, license and exploit such existing
Intellectual Property following the Effective Date of this Agreement, but that ViaGen and Viable
shall thereafter and for so long as ViaGen and Viable, respectively, remain a Subsidiary of Exeter,
be subject to this Section 6.4 in all other respects.

Notwithstanding the foregoing, nothing in subsection (a) shall preclude either Shareholder or its
Subsidiaries from acquiring an interest not exceeding two percent (2%) of the outstanding shares of
a publicly traded company or ten percent (10%) of the outstanding shares of a non-publicly-traded
company, solely for investment purposes, or maintaining or increasing such Shareholder’s equity
ownership in the entities set forth on Schedule 6.4 or in successor entities as a result of
mergers, acquisitions, or similar transactions involving such entities.

          (b) Obligation to Disclose NewCo Opportunities. Each Shareholder agrees that neither
it nor its Subsidiaries shall acquire (including without limitation by obtaining an exclusive
license), or grant licenses to, Intellectual Property in the Field unless such Shareholder or one
of its Subsidiaries has first offered to the Company such acquisition or license grant opportunity
in accordance with the procedures set forth in subsection (c) below and, if offered, the Company
has rejected such offer in accordance with such subsection. If the Company rejects an offer of
rights controlled by the Shareholder or any of its Subsidiaries in accordance with subsection (c),
the Shareholder and its Subsidiaries may not thereafter offer such rights to a third party on
financial and other material commercial terms that, when viewed as a whole, are more favorable to
the third party than those terms offered to the Company, without first offering such more favorable
terms to the Company.

          (c) Procedure for Disclosing NewCo Opportunities. Each Licensor agrees to make
reasonable commercial efforts to disclose to NewCo, in sufficient detail, any opportunities of
which it or one of its Subsidiaries becomes aware to acquire, or grant licenses to, Intellectual
Property in the Field, to the extent disclosable without violating fiduciary or confidentiality
obligations to third parties (provided that each Licensor shall make reasonable commercial

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efforts to ensure that it is not precluded by confidentiality obligations from disclosing to
NewCo such opportunities of which Licensor first becomes aware after the Effective Date), so as to
afford NewCo a reasonable opportunity to negotiate for such rights. NewCo shall have ten (10) days
from receipt of a written notice disclosing such opportunity (the “Option Notice”) or such shorter
period as may be required under the circumstances, as clearly indicated on the Option Notice, (the
“Option Period”) to provide a written response to the Licensor indicating its desire to pursue such
opportunity. In the event that NewCo opts to pursue such opportunity, NewCo shall have ninety (90)
days to negotiate with the third party to license or acquire the Intellectual Property in the Field
(the “Negotiation Period”). In the event that NewCo is engaging in good faith efforts to complete
the negotiations at the end of the ninety (90) day period but has not completed such negotiations,
the Negotiation Period shall be extended for a further ninety (90) days, at which time it shall
expire unless NewCo and the applicable Licensor otherwise mutually agree in writing. Licensor and
its Subsidiaries may proceed to pursue the opportunity if NewCo indicates in writing that it does
not wish to pursue the opportunity or if NewCo fails to respond within the Option Period or to the
extent NewCo does not enter a binding agreement with such third party within the Negotiation Period
(and in any such case, NewCo shall be deemed to have rejected such opportunity).

          (d) Exception. Notwithstanding the foregoing, nothing in this Section 6.4 shall
preclude either Shareholder or its Subsidiaries from granting licenses to Intellectual Property in
the Field to (i) Affiliates, (ii) third parties in connection with a Shareholder’s or any of its
Subsidiaries’ development, commercialization and provision of products and services, and (iii)
contract service providers, and licensing in and acquiring Intellectual Property from entities in
(i), (ii) and (iii), in each case without disclosing or first offering such opportunity to the
Company.

          (e) License. Notwithstanding the foregoing, (i) with respect to Intellectual Property
in the Field internally developed by ViaGen or Viable, whether alone or with others, Viable’s and
ViaGen’s respective obligations to offer or grant licenses to such Intellectual Property to NewCo
shall exclude the ViaGen Field in North America, and (ii) with respect to opportunities to acquire
or license third-party Intellectual Property offered to NewCo by ViaGen or Viable and with respect
to which NewCo would not otherwise have the opportunity to acquire or license (i.e. the opportunity
to acquire or license such rights was neither known to NewCo nor, within ten (10) days of being
presented to NewCo by ViaGen or Viable, broadly publicly disclosed or otherwise offered to NewCo
independently of ViaGen or Viable), NewCo shall, upon obtaining rights to such Intellectual
Property, grant to ViaGen and Viable (if requested by ViaGen or Viable within sixty (60) days after
its receipt of written notification from NewCo stating that NewCo has obtained such rights) a
nonexclusive license in the ViaGen Field and worldwide (or a lesser territory, if requested) on
most favored nation terms and other commercially reasonable terms negotiated by the parties in good
faith, taking into account the benefit accorded to NewCo, by provision by ViaGen or Viable, of the
opportunity to acquire or license such third party Intellectual Property. If NewCo obtains an
exclusive license to such rights, such sublicense shall, if requested by ViaGen or Viable within
sixty (60) days after its receipt of written notification from NewCo stating that NewCo has
obtained such exclusive rights, be exclusive in the ViaGen Field for a period of two (2) years (or
such lesser period as may be requested by ViaGen or Viable) from its effective date, for which
exclusivity ViaGen/Viable and NewCo shall negotiate in good faith commercially reasonable terms.
After

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such two-year period of exclusivity the sublicense shall convert to a nonexclusive license,
and thereafter NewCo shall, subject to the terms and conditions of its agreement with the
third-party licensor and any other agreements, have unrestricted rights to grant further
sublicenses.

          (f) Survival. In the event that this Agreement is terminated due to breach of
Sections 3.2(b), 6.2, 6.3, 6.4 or 9.1 by a Shareholder, such Shareholder’s obligations pursuant to
this Section 6.4 shall remain in effect for a period of twelve (12) months following such
termination.

     6.5 Remedies. Each Shareholder acknowledges and agrees that (i) its obligations under
Sections 6.2, 6.3 and 6.4 are necessary and reasonable to protect the other Shareholder and the
other Shareholder’s business, (ii) any violation of these provisions could cause irreparable injury
to the other Shareholder for which money damages would be inadequate, and (iii) as a result, the
other Shareholder shall be entitled to injunctive relief against a breach or a threatened breach
of the provisions of Sections 6.2, 6.3 and 6.4 without the necessity of proving actual damages.
The Shareholders agree that the remedy set forth in this Section 6.5 is in addition to and in no
way precludes any other remedies or actions that may be available under this Agreement or under
Applicable Law.

     6.6 Deadlock Resolution.

          (a) If any disagreement among the Shareholders results in the inability of the Board at any
regular or special meeting to approve a particular action (including without limitation an action
requiring Supermajority Approval), and such failure to approve:

               (i) makes it impossible or impracticable for the Company to conduct the Business, or

               (ii) makes it impossible or impracticable for the Company to obtain additional capital
necessary to sustain the operations of the Company, or

               (iii) makes it impossible or impracticable for the Company to comply with its material
obligations, if any, under the Pre-Existing License Agreements assumed by the Company, and other
material agreements under which it is bound and such non-compliance has a Material Adverse Effect
on the Company, then, upon written notice given by either Shareholder to the other Shareholder, a
deadlock event (a “Deadlock Event”) shall be deemed to have occurred.

          (b) Mutual Consultation. In the event of a Deadlock Event or a Breach Notice, the
Shareholders shall engage in mutual good faith negotiations to resolve the deadlock matter within
forty-five (45) days following the Board meeting described in Section 6.6(a). If such mutual good
faith negotiations do not resolve such matter within such 45-day period (and any extension of such
period to which both Shareholders agree), then the Shareholders agree to submit to mediation
pursuant to subsection (c) below.

          (c) Mediation. If, after mutual consultation in accordance with subsection (b) above,
the Shareholders are unable to resolve the deadlock matter or the subject of the Breach Notice, the
Shareholders will engage a neutral mediator who will be charged with assisting the

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Shareholders to reach a mutually agreeable resolution of the applicable Deadlock Event subject
of the Breach Notice by non-binding mediation under the then current Commercial Mediation
Procedures for the American Arbitration Association. The mediation shall take place in Phoenix,
Arizona. The mediator shall be chosen by mutual reasonable agreement of the Shareholders and the
mediator’s fees shall be borne equally by the Shareholders. In the event that a mediator cannot be
agreed upon by the Shareholders, each Shareholder shall choose a mediator and such
Shareholder-selected mediators shall together unanimously choose a final neutral mediator who will
conduct the mediation. Each Shareholder shall separately bear the fees of its selected mediator
and all Shareholders shall equally bear the fees of the final mediator. The Shareholders agree to
participate in the mediation in good faith and use best efforts to resolve the disputed matter
within six (6) months after the end of the forty-five day period described in subsection (b) above.
If, in the event of a Deadlock Event, the Shareholders are unable to resolve the dispute through
such non-binding mediation, then, upon written notice given by either Shareholder to the other
Shareholder, an unresolved deadlock (a “Deadlock”) shall be deemed to have occurred. In the event
of a matter covered by a Breach Notice, after completion of mediation such matter shall be
submitted for resolution by arbitration in accordance with Section 8.2(b) and Section 11.1.

          (d) Financing Deadlock. In the event that the Deadlock involves the need of the
Company for additional capital (a “Financing Deadlock”), either Shareholder may seek appraisal to
determine the per-share FMV of the Company’s then issued and outstanding Securities pursuant to the
procedure described in Section 9.7. Each Shareholder shall have twenty (20) business days to
review the resulting FMV and agree to either (a “Financing Plan”) (i) contribute its Pro Rata share
of the amount of working capital needed to fund the operations of the Company through the end of
the next fiscal year according to the most current budget and plan adopted by the Board (the
“Financing Amount”) or (ii) accept proportionate dilution due to an increased capital contribution
of the other Shareholder, if such Shareholder is prepared to make such investment, or a third
Shareholder acceptable to the other Shareholder in order for the Company to receive the full
Financing Amount. In the event that one Shareholder does not agree to the Financing Plan (the
“Non-Funding Shareholder”), then the other Shareholder (the “Funding Shareholder”) shall have the
right to purchase all, but not less than all, of the Non-Funding Shareholder’s then-owned
Securities for a cash price per share equal to fifty percent (50%) of the FMV of such Securities,
and the Non-Funding Shareholder shall have the obligation to sell its Securities to the Funding
Shareholder. In the event the Funding Shareholder elects to acquire the Securities of the
Non-Funding Shareholder, it shall also have the obligation to either contribute the Financing
Amount to the Company, or arrange for the contribution of the Financing Amount to the Company by a
third Shareholder. Any purchase of Securities pursuant to this Section 6.6(d) shall be consummated
as soon as reasonably practicable, and in any event within sixty (60) days, following the date of
determination of FMV. The Shareholders agree to cooperate in good faith with respect to all
actions necessary and appropriate to effect such consummation, including, without limitation, the
execution of all reasonably requested documentation and the acquisition of all required approvals
and consents from, and the making of all required applications, notifications or filings to or
with, Governmental Authorities. The purchase price for such Securities shall be paid in cash in
full on the closing of the acquisition.

          (e) Security Purchase Option. Unless a Funding Shareholder seeks appraisal and
exercises its right to purchase the Non-Funding Shareholders’ Securities pursuant to subsection

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(d) above, in the event of a Deadlock the procedures set forth in this subsection (e) shall
apply. Either Shareholder may seek appraisal to determine the per-share FMV of the Company’s then
issued and outstanding Securities pursuant to the procedure described in Section 9.7. Within
fifteen (15) days after the written appraisal is provided to each Shareholder, each Shareholder
shall have the option, but not the obligation, to submit a written, unconditional offer to purchase
all, but not less than all, of the other Shareholder’s then-owned Securities for a cash price per
share at least equal to the FMV of such Securities. Each Shareholder may submit only one such
offer. If only one Shareholder submits such an offer, the Shareholder submitting the offer shall
have the right and obligation to purchase the other Shareholder’s Securities and the Shareholder
receiving the offer shall have the right and obligation to sell its Securities to the other
Shareholder. If both Shareholders submit such an offer, the Shareholder submitting the higher
per-share offer shall have the right and obligation to purchase the other Shareholder’s Securities
and the Shareholder submitting the lower per-share offer shall have the right and obligation to
sell its Securities to the other Shareholder. Any purchase of Securities pursuant to this Section
6.6(e) shall be consummated as soon as reasonably practicable, and in any event within sixty (60)
days, following the date of determination of FMV. The Shareholders agree to cooperate in good
faith with respect to all actions necessary and appropriate to effect such consummation, including,
without limitation, the execution of all reasonably requested documentation and the acquisition of
all required approvals and consents from, and the making of all required applications,
notifications or filings to or with, Governmental Authorities. The purchase price for such
Securities shall be paid in cash in full on the closing of the acquisition.

          (f) Dissolution and Liquidation. If a Deadlock occurs and (i) no offer is submitted
as provided in Section 6.6(e) or the Funding Shareholder does not exercise its right to purchase
the Non-Funding Shareholders’ Securities pursuant to Section 6.6(d) and (ii) the Deadlock is not
resolved by other mutually agreeable means, either Shareholder shall have the right, exercisable by
delivery of written notice of such exercise to the other Shareholder and the Company, to cause the
dissolution and liquidation of the Company. In the event that a Shareholder exercises its right to
cause the Company’s dissolution and liquidation pursuant to this Section 6.6(f), the Shareholders
shall promptly (and shall cause any transferee of such Shareholder to) (i) vote (or execute written
consents, as applicable) their Securities to dissolve and liquidate the Company, (ii) cause the
Board to approve the Company’s dissolution and liquidation, (iii) cause the Company’s debts to be
paid to the extent the Company’s assets are available to do so and cause the remaining assets to be
distributed to the Shareholders (including as specified in the Contribution and License Agreement),
and (iv) take such other actions as may be required under Applicable Law to complete the
dissolution and liquidation of the Company.

          (g) Actions Subsequent to a Deadlock. In the event of a Deadlock, the Shareholders
shall cause the Company to maintain and preserve its business and operate in the ordinary course
pending the completion of the steps set forth herein to the extent practical in light of the nature
of the Deadlock.

     6.7 Regulatory Approvals. The Manager shall be primarily responsible for assisting
the Company to obtain such approvals, consents and similar actions from Governmental Authorities as
may be necessary or appropriate in order to consummate the transactions contemplated under the
Transaction Documents. Each Shareholder shall provide such assistance as the Manager may
reasonably request in connection with such consents and approvals.

 
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     6.8 Additional Company Covenant. The Company shall not Engage In any Competing AT
Business in any Restricted Territory until expiration or termination of the Noncompetition Period,
as such terms are defined in the Noncompetition Agreement among Exeter, Revivicor Holdings, Inc.
and Revivicor, Inc. dated as of February 24, 2004.

7. Warranties of the Parties

     7.1 Warranties of Exeter. Exeter hereby represents and warrants to Geron that, as of
the Effective Date, the following statements are and shall be true and correct:

          (a) Organization. Exeter is a corporation duly organized and validly existing under
the laws of Arizona. Exeter has the corporate power and authority to enter into and perform this
Agreement and the Transaction Documents to which Exeter is a party.

          (b) Authorization. All corporate action on the part of Exeter necessary for the
authorization, execution and delivery of this Agreement and the Transaction Documents to which
Exeter is a party and for the performance of all of its obligations hereunder and thereunder has
been taken, and this Agreement and such Transaction Documents, when fully executed and delivered,
shall each constitute a valid, legally binding and enforceable obligation of Exeter.

          (c) Government and Other Consents. No consent, authorization, license, permit,
registration or approval of, or exemption or other action by, any Governmental Authority, or any
other Person, is required in connection with Exeter’s execution, delivery and performance of this
Agreement or the Transaction Documents to which Exeter is a party, or if any such consent is
required Exeter has satisfied any applicable requirements.

          (d) Effect of Agreement. Exeter’s execution, delivery and performance of this
Agreement and the Transaction Documents to which Exeter is a party will not (i) violate the
certificate of incorporation of Exeter or any provision of Applicable Law, (ii) violate any
judgment, order, writ, injunction or decree of any court applicable to Exeter, (iii) have any
effect on the compliance of Exeter with any applicable licenses, permits or authorizations which
would materially and adversely affect Exeter, (iv) result in the breach of, give rise to a right of
termination, cancellation or acceleration of any obligation with respect to (presently or with the
passage of time), or otherwise be in conflict with, any term of, or affect the validity or
enforceability of any agreement or other commitment to which Exeter is a party and which would
materially and adversely affect Exeter, or (v) result in the creation of any lien, pledge,
mortgage, claim, charge or encumbrance upon any assets of Exeter.

          (e) Litigation. There are no actions, suits or proceedings pending or, to Exeter’s
knowledge, threatened, against Exeter before any Governmental Authority which question Exeter’s
right to enter into or perform this Agreement or the Transaction Documents to which Exeter is a
party, or which question the validity of this Agreement or any of the other Transaction Documents.

     7.2 Warranties of Geron. Geron hereby represents and warrants to Exeter that, as of
the Effective Date, the following statements are and shall be true and correct:

 
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          (a) Organization. Geron is a corporation duly organized and validly existing under
the laws of Delaware. Geron has the corporate power and authority to enter into and perform this
Agreement and the Transaction Documents to which Geron is a party.

          (b) Authorization. All corporate action on the part of Geron necessary for the
authorization, execution and delivery of this Agreement and the Transaction Documents to which
Geron is a party and for the performance of all of its obligations hereunder and thereunder has
been taken, and this Agreement and such Transaction Documents, when fully executed and delivered,
shall each constitute a valid, legally binding and enforceable obligation of Geron.

          (c) Government and Other Consents. No consent, authorization, license, permit,
registration or approval of, or exemption or other action by, any Governmental Authority, or any
other Person, is required in connection with Geron’s execution, delivery and performance of this
Agreement or the Transaction Documents to which Geron is a party, or if any such consent is
required Geron has satisfied any applicable requirements.

          (d) Effect of Agreement. Geron’s execution, delivery and performance of this
Agreement and the Transaction Documents to which Geron is a party will not (i) violate the
certificate of incorporation of Geron or any provision of Applicable Law, (ii) violate any
judgment, order, writ, injunction or decree of any court applicable to Geron, (iii) have any effect
on the compliance of Geron with any applicable licenses, permits or authorizations which would
materially and adversely affect Geron, (iv) result in the breach of, give rise to a right of
termination, cancellation or acceleration of any obligation with respect to (presently or with the
passage of time), or otherwise be in conflict with, any term of, or affect the validity or
enforceability of any agreement or other commitment to which Geron is a party and which would
materially and adversely affect Geron, or (v) result in the creation of any lien, pledge, mortgage,
claim, charge or encumbrance upon any assets of Geron.

          (e) Litigation. There are no actions, suits or proceedings pending or, to Geron’s
knowledge, threatened, against Geron before any Governmental Authority which question Geron’s right
to enter into or perform this Agreement or the Transaction Documents to which Geron is a party, or
which question the validity of this Agreement or any of the other Transaction Documents.

     7.3 Warranties of the Company. Exeter and the Company, severally and not jointly,
each hereby represent and warrant to Geron that, as of the Effective Date, the following statements
are and shall be true and correct:

          (a) Organization. The Company is a corporation duly organized and validly existing
under the laws of Delaware. The Company has the corporate power and authority to enter into and
perform this Agreement and the Transaction Documents to which the Company is a party. The Company
is a wholly owned subsidiary of Exeter, it has not transacted any business and was formed for the
purposes of consummating the transactions contemplated by this Agreement.

          (b) Authorization. All corporate action on the part of the Company necessary for the
authorization, execution and delivery of this Agreement and the Transaction Documents to

 
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which the Company is a party and for the performance of all of its obligations hereunder and
thereunder has been taken, and this Agreement and such Transaction Documents, when fully executed
and delivered, shall each constitute a valid, legally binding and enforceable obligation of the
Company.

          (c) Government and Other Consents. No consent, authorization, license, permit,
registration or approval of, or exemption or other action by, any Governmental Authority, or any
other Person, is required in connection with the Company’s execution, delivery and performance of
this Agreement or the Transaction Documents to which the Company is a party, or if any such consent
is required the Company has satisfied any applicable requirements.

          (d) Effect of Agreement. The Company’s execution, delivery and performance of this
Agreement and the Transaction Documents to which the Company is a party will not (i) violate the
certificate of incorporation of the Company or any provision of Applicable Law, (ii) violate any
judgment, order, writ, injunction or decree of any court applicable to the Company, (iii) have any
effect on the compliance of the Company with any applicable licenses, permits or authorizations
which would materially and adversely affect the Company, (iv) result in the breach of, give rise to
a right of termination, cancellation or acceleration of any obligation with respect to (presently
or with the passage of time), or otherwise be in conflict with, any term of, or affect the validity
or enforceability of any agreement or other commitment to which the Company is a party and which
would materially and adversely affect the Company, or (v) result in the creation of any lien,
pledge, mortgage, claim, charge or encumbrance upon any assets of the Company.

          (e) Litigation. There are no actions, suits or proceedings pending or, to the
Company’s knowledge, threatened, against the Company before any Governmental Authority which
question the Company’s right to enter into or perform this Agreement or the Transaction Documents
to which the Company is a party, or which question the validity of this Agreement or any of the
other Transaction Documents.

8. Term and Termination

     8.1 Term. This Agreement shall be effective as of the Effective Date, and shall
continue in effect until terminated pursuant to Section 8.2.

     8.2 Termination. This Agreement shall terminate in accordance with any of the
following:

          (a) Upon the mutual written agreement of the Shareholders.

          (b) By a Shareholder, pursuant to written notice (a “Breach Notice”) to the other Shareholder
(i) if any representation or warranty of the other Shareholder set forth herein was not true and
correct in any material respect when made, in which case such Breach Notice shall only be effective
as provided herein if given prior to the one-year anniversary of the Closing, or (ii) if the other
Shareholder materially breaches any material provision of this Agreement or of the Contribution and
License Agreement and such breach continues for a period of ninety (90) days after the delivery of
the Breach Notice. Such Breach Notice to the other Shareholder (the “Breaching Party”) shall
describe the default in reasonable detail and shall be effective only

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after the Shareholders have completed the dispute resolution procedures set forth in Sections
6.6(b) and 6.6(c) and it is determined by an arbitral panel in accordance with Section 11.1(b) that
such breach shall terminate this Agreement or entitle the non-breaching Shareholder to terminate
this Agreement, exercise its rights under Section 8.3(a) or suspend performance under this
Agreement.

          (c) By a Shareholder (the “Non-Bankrupt Party”), effective immediately upon written notice to
the other Shareholder (the “Bankrupt Party”), in the event of (i) the filing of a petition by or
against the Bankrupt Party under any provision of the Bankruptcy Reform Act, Title 11 of the United
States Code, as amended or recodified from time to time, or under any similar law relating to
bankruptcy, insolvency or other relief for debtors, (ii) appointment of a receiver, trustee,
custodian or liquidator of or for all or any part of the assets or property of the Bankrupt Party,
(iii) the insolvency of the Shareholder, or (iv) the making of a general assignment for the benefit
of creditors by the Bankrupt Party.

          (d) At such time as one Shareholder acquires all of the outstanding Securities of the other
Shareholder, effective upon the closing of such acquisition.

     8.3 Effect.

          (a) If an event described in Section 8.2(b) occurs then, in addition to any rights, remedies
or claims available to the non-breaching Shareholder (the “Non-Breaching Party”) in equity or under
law, the Non-Breaching Party shall have the right to buy 100% of the Breaching Party’s Securities
at a price equal to fifty percent (50%) of the FMV of such Securities.

          (b) If an event described in Section 8.2(c) occurs, the Non-Bankrupt Party shall have the
right to terminate this Agreement and, at the option of the Non-Bankrupt Party, (i) buy up to 100%
of the Bankrupt Party’s Securities at a price equal to the FMV of such Securities, or (ii) cause
the Company to be dissolved and liquidated in accordance with the procedures described in Section
6.6(f).

          (c) In the event that Exeter fails to contribute the remainder of the Exeter Purchase Price in
accordance with Section 3.2(b), and such failure continues for thirty (30) days (the “Default
Notice Period”) following written notice of such failure from Geron (an “Exeter Payment Breach”),
then Geron shall have the right, in the alternative to exercise of its rights under Sections 8.2(b)
and 8.3(a), to acquire from Exeter such number of shares of Common Stock (the “Defaulted Shares”)
equal to the Default Ratio multiplied by the number of shares of Common Stock then held by Exeter.
The “Default Ratio” shall equal the unpaid portion of the Exeter Purchase Price divided by the
Exeter Purchase Price. The consideration for the acquisition of the Defaulted Shares will be
payment by Geron to the Company of the unpaid portion of the Exeter Purchase Price. In the event
Geron wishes to exercise its right to acquire the Defaulted Shares, it shall notify the Company and
Exeter in writing within ten (10) business days following the end of the Default Notice Period, and
the closing of such repurchase shall occur within the next thirty (30) days.

     8.4 Continuing Liability; Survival. Termination of this Agreement for any reason
shall not release either Shareholder or the Company from any liability or obligation which has
 
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already accrued as of the effective date of such termination, and shall not constitute a
waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies
or claims, whether for damages or otherwise, which a Shareholder or the Company may have hereunder,
at law, equity or otherwise or which may arise out of or in connection with such termination. The
rights and obligations of the Parties under Sections 6.2, 6.3, 6.4 (to the extent provided
therein), 8, 9.7 and 11 shall survive any termination of this Agreement.

     8.5 Return of Confidential Information. Upon the termination of this Agreement, each
Party, at its own cost, shall promptly return to the Disclosing Party any and all documents and
materials constituting or containing Confidential Information of the Disclosing Party which are in
its possession or control, or at its option, shall destroy such documents and materials and certify
such destruction in writing to the Disclosing Party.

9. Transfer Restrictions

     9.1 General Restriction. Subject to Sections 9.2 and 9.6, for so long as this
Agreement remains in effect, and except as otherwise specifically provided in this Agreement or
agreed to in writing by the other Shareholder, each Shareholder agrees not to sell, transfer,
assign, hypothecate or in any way alienate (“Transfer”) any Securities, or any right or interest
therein, except to the following (each, a “Successor in Interest”) (1) to an Affiliate of such
Shareholder, or (2) to a Person in connection with a Change of Control, provided that if such
Person is a substantial competitor of the Company or the other Shareholder Supermajority Approval
of the Board is required before the transfer. In the case of any Transfer permitted hereunder, the
transferring Shareholder shall deliver to the other Shareholder (a) at least ten (10) Business Days
prior to such Transfer, a written notice stating its intention to Transfer Securities, the name and
share ownership of the transferee, the number of Securities to be Transferred, and the price and
other material terms and conditions of the Transfer, and (b) on or prior to the effective date of
the Transfer and in a form reasonably acceptable to the other Shareholder and its counsel, the
transferee’s written acknowledgment of and agreement to be bound by, and to vote the transferred
Securities at all times in accordance with, the terms of this Agreement.

     9.2 Permitted Transfers.

          (a) General. Except as permitted under Section 9.1, in the event a Shareholder (the
“Selling Party”) desires to Transfer all or any portion of its Securities to any Person, the
Selling Party shall first provide written notice (an “Offer Notice”) to the other Shareholder of
its desire to Transfer. Such Offer Notice shall specify, among other things, the Person to whom
the Selling Party wishes to Transfer, the Securities to be Transferred, and the price and other
material terms and conditions of the proposed Transfer. The other Shareholder shall then have the
right to exercise either (i) the right of first refusal set forth in Section 9.2(b), or (ii) the
co-sale right set forth in Section 9.2(c).

          (b) Right of First Refusal.

               (i) On receipt of an Offer Notice, the other Shareholder shall have the right, upon written
notice to the Selling Party within thirty (30) days following the receipt of

 
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such notice, to purchase at the same price and other terms and conditions set forth in the
Offer Notice, all, but not less than all, of its Pro Rata share of the Securities subject thereto.

               (ii) If the right of first refusal described in Section 9.2(b)(i) is duly exercised, then,
upon notice of such exercise the Selling Party shall be legally obligated to sell, and any electing
Shareholder shall be legally obligated to purchase, the Securities described in the Offer Notice on
the terms and conditions set forth therein. The Parties shall cooperate in good faith with respect
to all actions necessary and appropriate to promptly effect such purchase and sale, including,
without limitation, the execution of all reasonably requested documentation and the acquisition of
all required approvals and consents from, and the making of all required applications,
notifications or filings to or with, Governmental Authorities.

               (iii) If the right of first refusal described in Section 9.2(b)(i) is not duly exercised,
then, subject to Section 9.2(c), the Selling Party shall have the right, for sixty (60) days
following the expiration (or earlier termination) of the applicable exercise period, to sell the
subject Securities to the Person set forth in the Offer Notice, on the terms and conditions
specified therein; provided, that prior to such sale the purchaser agrees in writing to be
bound, from and after its purchase, by this Agreement, upon which the Selling Party shall be
released from its obligations and liabilities hereunder with respect to the Transferred Securities
(except for any liability or obligation accrued as of such date).

          (c) Co-sale Right. If the right of first refusal described in Section 9.2(b) is not
exercised by the Shareholder receiving the Offer Notice as provided therein, such Shareholder shall
have the right to participate in the Transfer of Securities (at the same price and other terms and
conditions set forth in the Offer Notice) by written notice to the Selling Party within thirty (30)
days following receipt of such notice. Upon exercise of such co-sale right, the exercising
Shareholder shall be entitled to sell a number of Securities which is equal to the product of (x)
such Shareholder’s Company Interest, and (y) the number of Securities which the Selling Party
proposes to Transfer (and there shall be a corresponding reduction in the number of Securities
which the Selling Party may include in the proposed Transfer).

     9.3 Board Approval; Legends. All Transfers of Securities shall be subject to approval
by the Board. Each Shareholder shall cause its Board nominee to vote in favor of any proposed
Transfer complying with the foregoing terms of this Section 9 and to vote against any proposed
Transfer that fails to do so (including in any vote required pursuant to Exhibit 5.7).

     9.4 Endorsement of Certificates.

          (a) In addition to any other legend which the Company may deem advisable under the Securities
Act and state securities laws, the certificates representing all shares of outstanding Securities,
other than shares issued through a Public Offering or in compliance with Rule 144 promulgated under
the Securities Act (“Rule 144”), shall be endorsed at all times with a legend substantially similar
to the following:

     THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS
ON TRANSFER AND CERTAIN RESTRICTIONS ON VOTING CONTAINED IN THE FORMATION AND

 
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SHAREHOLDERS AGREEMENT, DATED APRIL 5, 2005, AMONG START LICENSING, INC. (THE
“COMPANY”) AND CERTAIN STOCKHOLDERS LISTED ON THE SIGNATURE PAGES THEREOF. A COPY OF THE
ABOVE REFERENCED AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER
HEREOF UPON WRITTEN REQUEST.

     THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT.

          (b) The obligations of the Shareholders shall be binding upon each Person to whom such
Shareholder transfers Securities except for sales of the Securities pursuant to an effective
registration statement under the Securities Act (a “Public Offering”) or in compliance with Rule
144. Prior to consummation of any transfer of Securities, other than a transfer pursuant to a
Public Offering or in compliance with Rule 144, the transferor shall deliver to the Company an
opinion of counsel reasonably satisfactory to the Company stating that, in the opinion of such
counsel, such transfer complies with all applicable state and Federal securities laws and does not
require that the Securities transferred be registered under any applicable state or Federal
securities law.

     9.5 Improper Transfer. Any attempt to transfer any shares of Securities otherwise
than in accordance with this Agreement shall, to the fullest extent permitted by law, be null and
void and, to the fullest extent permitted by law, neither the Company nor any transfer agent of the
Securities shall give any effect to such attempted transfer in its stock records.

     9.6 Prohibitions on Transfers to Substantial Competitors. Notwithstanding anything to
the contrary in this Agreement, no Shareholder shall directly or indirectly Transfer to any Person
who is a substantial competitor of the Company or the other Shareholder any Securities,
provided that a Transfer, directly or indirectly, of all or a portion of Exeter’s
Securities (including through a Change of Control of Exeter), by the ultimate beneficial owner or
owners of Exeter as of the Effective Date, (i) for estate planning purposes, (ii) by operation of a
trust instrument, will or similar document, or (iii) by operation of law, in each case to a trust,
foundation or similar entity, shall not be deemed to be a Transfer to a substantial competitor.

     9.7 Appraisal Procedure. Prior to any Transfer of Securities pursuant to Section 6.6
or 8.3, the FMV of the Securities being Transferred shall be determined by the appraisal procedure
described in this Section 9.7.

          (a) Appointment of Appraisers. (1) Each of the Shareholders shall appoint an
appraiser (i.e., total of two appraisers) within thirty (30) days of the date of receipt by the
recipient Shareholder of the notice required pursuant to Section 6.6 or 8.3, as applicable, in
connection with the proposed Transfer. Such two appraisers shall appoint a third appraiser. Each
appraiser appointed hereunder shall be reputable, independent of and not affiliated with either
Shareholder (or any Affiliate of either Shareholder), shall have experience in the Field, and

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shall be qualified to appraise the fair market value of the Company and the selling
Shareholder’s Securities.

          (b) Appraisal. Each appraiser appointed pursuant to this Section 9.7 shall promptly
render a written good faith appraisal of the FMV per share of the Securities proposed to be sold.
FMV will be the arithmetical average of the two appraisals that are closest to each other.
Notwithstanding the foregoing, if a Shareholder fails to appoint an appraiser, the appraiser
appointed by the other Shareholder shall conduct the appraisal alone, and FMV shall be as
determined by such appraiser.

          (c) Timing. Appraisers shall be instructed to complete their appraisals as promptly
as possible and, in any event, within thirty (30) days after the appointment of the final
appraiser, and to provide their written appraisal at the same time to both Shareholders. Each
Shareholder shall take all actions reasonably necessary to cause the appraisers to complete the
appraisal process in an expeditious and competent manner within such period.

          (d) Effect of Appraisal; Costs. Any determination of FMV pursuant to this Section 9.7
shall be conclusive and binding upon each of the Shareholders for purposes of the Transfer in
question. Each Shareholder shall bear its Pro Rata share of the costs of any appraisal done
pursuant hereto, unless such appraisal is required pursuant to Section 8.3, in which case the
Breaching Party shall bear one hundred percent (100%) of the costs of such appraisal.

     9.8 Use of Corporate Name; Trademarks and Logos. No Party (nor any of its controlled
Affiliates) shall, either during the term of this Agreement or thereafter, utilize (except as
permitted by applicable law), register or seek to register the corporate name, trademarks or logos
of any other Party, or any similar corporate name, trademark or logo, for any purpose whatsoever,
without the prior written consent of such Party.

10. Indemnification

     10.1 Indemnification. Each Shareholder (in such capacity, the “Indemnifying Party”)
shall indemnify, defend and hold harmless the other Shareholder and such Shareholder’s officers,
directors, employees, shareholders and agents (each an “Indemnified Party”), from and against any
and all claims, demands, liabilities, costs, damages, expenses (including, without limitation,
attorneys’ fees and expenses), and causes of action of any nature whatsoever (collectively,
“Losses”) arising from or in any way related to any breach of any representation or warranty made
by the Indemnifying Party hereunder. The representations and warranties shall survive the Closing
until the twelve-month anniversary of the Closing Date (the “Survival Date”), provided, that any
claim for indemnification based upon a breach of any such representation or warranty and asserted
prior to the Survival Date by written notice in accordance with Section 10.2 shall survive until
final resolution of such claim. The obligations of the Indemnifying Party under this Section 10
shall survive any termination of this Agreement.

     10.2 Indemnification Procedures. If any lawsuit or enforcement action is filed
against an Indemnified Party with respect to which such Indemnified Party is entitled to
indemnification under this Section 10 or an Indemnified Party becomes aware of any fact, condition
or event which may give rise to Losses for which indemnification may be sought under this Section
10,

 
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then such Indemnified Party shall give notice thereof (a “Claim Notice”) to the Indemnifying
Party against whom indemnity is sought as promptly as practicable. The failure of an Indemnified
Party to give a timely Claim Notice hereunder shall not affect its rights to indemnification
hereunder, except to the extent that the Indemnifying Party demonstrates that such failure actually
damaged the Indemnifying Party. If within fifteen (15) days after receipt of the Claim Notice the
Indemnifying Party acknowledges in writing to the Indemnified Party that Indemnifying Party is
obligated under the terms of its indemnity hereunder in connection with such lawsuit or action (or
that it will defend under a reservation of rights), then the Indemnifying Party shall be entitled,
at its own cost, risk and expense, (a) to take control of the defense and investigation of such
lawsuit or action, (b) to employ and engage attorneys of its own choice to handle and defend the
same unless the named parties to such action or proceeding include both the Indemnifying Party and
the Indemnified Party and such Indemnified Party has been advised in writing by counsel that there
may be one or more legal defenses available to the Indemnified Party that are different from or
additional to those available to the Indemnifying Party, in which event, the Indemnified Party
shall be entitled, at the Indemnifying Party’s cost and expense, to retain separate counsel of its
own choosing, and (c) to compromise or settle such claim, which compromise or settlement shall be
made only with the prior written consent of the Indemnified Party, such consent not to be
unreasonably withheld. In connection with the Indemnifying Party’s defense of the Indemnified
Party as described in the foregoing sentence, the Indemnified Party shall (at the Indemnifying
Party’s cost and expense) cooperate in all reasonable respects with the Indemnifying Party and its
attorneys in the investigation, trial and defense of such lawsuit or action and any appeal arising
therefrom; provided, however, that the Indemnified Party may, at its own cost,
participate in the investigation, trial and defense of such lawsuit or action and any appeal
arising therefrom. The Shareholders shall cooperate with each other in any notifications to
insurers. If the Indemnifying Party fails to assume the defense of such claim within fifteen (15)
business days after receipt of the Claim Notice, then the Indemnified Party (upon delivering notice
to such effect to the Indemnifying Party) shall have the right (but not the obligation) to
undertake, at the Indemnifying Party’s cost and expense, the defense, compromise or settlement of
such claim on behalf of, and for the account and risk of, the Indemnifying Party. In the event the
Indemnified Party assumes the defense of the claim, the Indemnified Party will keep the
Indemnifying Party timely informed of the progress of any such defense, compromise or settlement,
provided that any such compromise or settlement shall be made only with the prior written
consent of the Indemnifying Party, such consent not to be unreasonably withheld. The Indemnifying
Party shall be liable for any settlement of any action effected pursuant to and in accordance with
this Section 10 and for any final judgment (subject to any right of appeal), and the Indemnifying
Party agrees to indemnify and hold harmless the Indemnified Party from and against any Losses by
reason of such settlement or judgment.

11. General Provisions

     11.1 Governing Law; Dispute Resolution.

          (a) Governing Law. The validity, construction and enforceability of this Agreement
shall be governed by and construed and interpreted in accordance with the laws of the State of
California, irrespective of the conflict of laws principles of the State of California, as to all
matters, except to the extent that the Delaware Corporation Law is applicable to the terms

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and provisions hereof, and to such extent this Agreement shall be construed and interpreted in
accordance with the laws of the State of Delaware.

          (b) Dispute Resolution. Except as provided for Deadlocks pursuant to Section 6.6, and
with respect to Breach Notices, provided prior negotiations and mediation as set forth in Section
6.6 fail to resolve such Breach Notice, any controversy, claim or dispute arising out of or related
to this Agreement or to the breach or interpretation thereof (a “Dispute”) shall be solely and
exclusively settled by confidential, binding arbitration in accordance with the then-current
commercial arbitration rules of the American Arbitration Association, subject to the terms and
conditions of this Section 11.1. Any Party may initiate the arbitration of a Dispute by sending
written notice of such election to the other Parties clearly marked “Arbitration Demand” (the
“Arbitration Demand”). The Dispute shall be adjudicated by three (3) neutral and impartial
arbitrators. In the event that only two Parties are parties to the dispute, each Party shall
nominate one arbitrator within thirty (30) days after the other Party’s receipt of the Arbitration
Demand, and the two arbitrators so named will then, within ninety (90) days of the receipt of the
Arbitration Demand, jointly appoint the third arbitrator, who shall serve as chairperson of the
arbitration tribunal; provided that if the two arbitrators cannot agree within such period on a
third arbitrator, the American Arbitration Association shall appoint the third arbitrator. In the
event that three Parties are parties to the dispute, each Party shall appoint one arbitrator and
the American Arbitration Association shall appoint one of them to serve as chairperson of the
arbitration tribunal. The decision of the arbitration tribunal shall be final and binding upon the
parties to the dispute, and may be entered in any competent court for judicial acceptance of such
an award and order of enforcement. All costs of the arbitration and arbitrators shall be shared
equally by the parties to the dispute, but each Party shall be responsible for the costs of its own
legal and other representatives and witnesses. The arbitrators shall not have the right or
authority to award punitive damages to any Party. Notwithstanding anything to the contrary in this
Section 11.1, each Party may, and expressly reserves the right to, seek judicial relief from any
court of competent jurisdiction in order to obtain an injunction or other equitable relief or to
enforce the provisions of Sections 6.2, 6.3, 6.4 or 6.8 or to otherwise obtain temporary relief
pending the outcome of the arbitration. Arbitration will take place in Phoenix, Arizona. The
Parties agree that the arbitration proceedings and its contents shall be kept confidential, except
as may otherwise be required by applicable law.

          (c) Consent to Jurisdiction. Each of the Parties irrevocably submits to the
jurisdiction of (i) the Superior Court of the State of Arizona, Maricopa County, (ii) the United
States District Court in Phoenix, Arizona, for the District of Arizona, (iii) the Superior Court of
the State of California, San Francisco County, and (iv) the United States District Court in San
Francisco, California, for the Northern District of California, for the purposes of any suit,
action or other proceeding not foreclosed by binding arbitration under Section 11.1(b). Each of the
Parties further agrees that service of any process, summons, notice or document by United States
registered mail to such Party’s respective address set forth below shall be effective service of
process for any action, suit or proceeding in Arizona or California with respect to any matters to
which it has submitted to jurisdiction in this Section 11.1(c). Each of the Parties irrevocably
and unconditionally waives any objection to the laying of venue of any action, suit or other
proceeding not foreclosed by binding arbitration under Section 11.1(b) in (i) the Superior Court of
the State of Arizona, Maricopa County, (ii) the United States District Court in Phoenix, Arizona,
for the District of Arizona, (iii) the Superior Court of the State of California, San

 
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Francisco County, and (iv) the United States District Court in San Francisco, California, for
the Northern District of California, and hereby further irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such action, suit or other proceeding
brought in any such court has been brought in an inconvenient forum.

     11.2 Notices and Other Communications. Any and all notices required or otherwise
contemplated to be made under this Agreement shall be in writing and in English and shall be
provided by one or more of the following means and shall be deemed to have been duly given (a) if
delivered personally, when received, (b) if transmitted by facsimile, on the first (1st) Business
Day following receipt of a transmittal confirmation, or (c) if by overnight courier service, on the
second (2nd) Business Day following the date of deposit with such courier service, or such earlier
delivery date as may be confirmed in writing to the sender by such courier service. All such
notices shall be addressed as follows:

If to Exeter:

4455 East Camelback Road

Suite B100

Phoenix, AZ 85018

Attention: Jonathan Thatcher

with copies (which copy shall not constitute notice) to:

stART Licensing, Inc.

4455 East Camelback Road

Suite B100

Phoenix, AZ 85018

Attention: Manager

and

Morrison & Foerster LLP

425 Market Street

San Francisco, CA 94105

Attention: John Campbell, Esq.

Telephone: 415-268-7000

Facsimile: 415-268-7522

If to Geron:

230 Constitution Drive

Menlo Park, CA 94025

Attention: Chief Executive Officer

with a copy (which copy shall not constitute notice) to:

stART Licensing, Inc.

4455 East Camelback Road

Suite B100

Phoenix, AZ 85018

Attention: Manager

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and

230 Constitution Drive

Menlo Park, CA 94025

Attention: General Counsel

If to the Company:

stART Licensing, Inc.

4455 East Camelback Road

Suite B100

Phoenix, AZ 85018

Attention: Manager

with a copy (which copy shall not constitute notice) to:

12357A Riata Trace Pkwy, Suite 100

Austin, Texas 78727

Attention: Scott Davis

and

Geron at the address first set forth above

or to such other address or facsimile number as a Party may have specified to the other Parties in
writing delivered in accordance with this Section 11.2.

     11.3 Severability. If any provision in this Agreement shall be found or be held to be
invalid or unenforceable then the meaning of said provision shall be construed, to the extent
feasible, so as to render the provision enforceable, and if no feasible interpretation would save
such provision, it shall be severed from the remainder of this Agreement which shall remain in full
force and effect unless the severed provision is essential and material to the rights or benefits
received by any Party. In such event, the Parties shall use best efforts to negotiate, in good
faith, a substitute, valid and enforceable provision or agreement which most nearly effects the
Parties’ intent in entering into this Agreement.

     11.4 References; Subject Headings. Unless otherwise indicated, references to Sections
and Exhibits herein are to Sections of, and Exhibits to, this Agreement. The subject headings of
the Sections of this Agreement are included for the purpose of convenience of reference only, and
shall not affect the construction or interpretation of any of its provisions.

     11.5 Further Assurances. The Parties shall each perform such acts, execute and
deliver such instruments and documents, and do all such other things as may be reasonably necessary
to accomplish the transactions contemplated in this Agreement.

     11.6 Expenses. Each of the Parties will bear its own costs and expenses, including,
without limitation, fees and expenses of legal counsel, accountants, brokers, consultants and other
representatives used or hired in connection with the negotiation and preparation of this Agreement
and consummation of the transactions contemplated hereby. All such expenses incurred by the
Company shall be borne by the Company to the maximum extent permitted by

 
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Applicable Law including, without limitation, expenses relating to the formation of the
Company whether incurred by the Company or Exeter, any transfer taxes for transfer of the Company
stock to the Shareholders, registration charges, taxes, fees and expenses relating to required
governmental or regulatory approvals, notary fees and legal fees and expenses.

     11.7 No Waiver. No waiver of any term or condition of this Agreement shall be valid
or binding on a Party unless the same shall have been set forth in a written document, specifically
referring to this Agreement and duly signed by the waiving Party. The failure of a Party to
enforce at any time any of the provisions of this Agreement, or the failure to require at any time
performance by one or both of the other Party of any of the provisions of this Agreement, shall in
no way be construed to be a present or future waiver of such provisions, nor in any way affect the
ability of a Party to enforce each and every such provision thereafter.

     11.8 Entire Agreement; Amendments. The terms and conditions contained in this
Agreement (including the Exhibits hereto) and the Transaction Documents constitute the entire
agreement between the Parties and supersede all previous agreements and understandings, whether
oral or written, between the Parties with respect to the subject matter hereof. No agreement or
understanding amending this Agreement shall be binding upon any Party unless set forth in a written
document which expressly refers to this Agreement and which is signed and delivered by duly
authorized representatives of each Party.

     11.9 Assignment. No Party shall have the right to assign its rights or obligations
under this Agreement except, in the case of the Shareholders, in connection with a transfer of all
of such Shareholder’s Securities in a manner permitted hereunder, under terms reasonably acceptable
to the non-assigning Shareholder and providing for the assignee to be bound by the terms hereof,
and for the assigning Shareholder to remain liable for the assignee’s performance of its
obligations hereunder. Any assignment not in conformance with this Section 11.9 shall be null,
void and of no legal effect. This Agreement shall inure to the benefit of, and shall be binding
upon, the Parties and their respective successors and permitted assigns.

     11.10 No Agency. The Parties are independent contractors. Nothing contained herein
or done in pursuance of this Agreement shall constitute either Party the agent of the other Party
for any purpose or in any sense whatsoever.

     11.11 No Beneficiaries. Nothing herein express or implied, is intended to or shall be
construed to confer upon or give to any person, firm, corporation or legal entity, other than the
Parties and their Affiliates who hold Securities, any interests, rights, remedies or other benefits
with respect to or in connection with any agreement or provision contained herein or contemplated
hereby.

     11.12 Effective Date of Transaction Documents. The Transaction Documents (other than
this Agreement and the Certificate) shall become effective concurrently with consummation of the
transactions described in Section 4.1.

     11.13 Counterparts. This Agreement may be executed in any number of counterparts, and
each counterpart shall constitute an original instrument, but all such separate counterparts shall
constitute only one and the same instrument.

 
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     11.14 Incidental and Consequential Damages. No Party nor its Affiliates will be
liable to any of the other Parties under any contract, negligence, strict liability or other theory
for any indirect, incidental or consequential damages (including without limitation lost profits)
with respect to a breach of this Agreement or any Transaction Document.

     11.15 Representation. Each of the Parties understands, acknowledges and agrees that:

          (a) Morrison & Foerster LLP (“M&F”) has acted as legal counsel to Exeter in connection with
the preparation of this Agreement and the Transaction Documents.

          (b) M&F does not represent and has not been engaged to protect or represent the interests of
any Party other than Exeter. Such other Parties have been afforded the opportunity to engage and
seek the advice of independent legal counsel in connection with this Agreement and the Transaction
Documents.

          (c) Actual or potential conflicts of interest exist, may exist, may have existed or may
hereafter exist among the Parties.

     11.16 Waiver of Interested Director Provisions of Delaware General Corporation Law.
Both Geron and Exeter recognize that each of them may be providing services to the Company and that
Exeter in particular initially has been retained as Manager of the Company pursuant to the
Management Services Agreement. The parties have provided for approval of various actions by the
Board, either by simple majority of the Board or in certain instances by a supermajority of the
Board. It is the intention of the parties that approval by the Board of any transaction between
the Company and either Geron or Exeter as provided in this Agreement, in the Management Services
Agreement and in other documents related thereto (the “Related Documents”), whether by a simple
majority or where required by a supermajority, is intended to represent the only approval necessary
for the transaction in question to satisfy any and all board or shareholder approval requirements
of Section 144 of the Delaware General Corporation Law (the “Interested Director
Provisions”). Each of Exeter and Geron hereby (i) irrevocably waive on behalf of themselves and
their successors and assigns any and all claims they may now or in the future have as shareholders
of the Company to advance any claim or seek relief under the Interested Director Provisions with
respect to any transaction that has been approved under the terms this Agreement, the Management
Services Agreement and the Related Documents and (ii) agree that directors nominated by the other
of them may vote on all matters that may come before the Board and have such votes counted in
determining whether or not Board approval of any matter has been obtained

[Signature page follows]

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     IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives
to execute this Formation and Shareholders Agreement as of the Effective Date.

	 	 	 	 
	EXETER LIFE SCIENCES, INC.

 	 
	By:  	/s/ Jonathan Thatcher
 	 
	 	Name:  	Jonathan Thatcher 	 
	 	Title:  	 	 
	 
	GERON CORPORATION

 	 
	By:  	/s/ David J. Earp
 	 
	 	Name:  	David Earp 	 
	 	Title:  	 	 
	 
	START LICENSING, INC.

 	 
	By:  	/s/ Scott Davis
 	 
	 	Name:  	Scott Davis 	 
	 	Title:  	 	 
	 

[Signature Page to Formation and Shareholders Agreement]

Confidential

 

 

FORMATION AND SHAREHOLDERS AGREEMENT

by and among

Exeter Life Sciences, Inc.

Geron Corporation

and

stART Licensing, Inc.

April 5, 2005

 
Confidential

 

 

EXHIBIT 5.7

Actions Requiring Supermajority

Board Approval

     Notwithstanding any other provision of this Agreement, each of the following actions will
require the consent of at least four (4) Directors present at any meeting called and held in
accordance with the terms of this Agreement:

     (1) The approval of the Annual Plan;

     (2) Any expenditure by the Company for capital goods that is not specifically contemplated by
the Annual Plan and involves a payment, in a single transaction or series of related transactions,
exceeding the greater of (1) $* or (2) * percent (* %) of the Company’s revenues in the Company’s
most recently completed fiscal year;

     (3) Any borrowing of funds by the Company if it is not specifically contemplated by the Annual
Plan and, after giving effect thereto, the Company has obligations for borrowed money exceeding the
greater of (1) $* or (2) * percent (* %) of the Company’s revenues in the Company’s most recently
completed fiscal year, and any guarantee by the Company of the obligations of a third Person for
borrowed money; and

     (4) Any grant of a pledge, charge, lien, mortgage or other encumbrance over or in respect of
the Company’s assets except (1) to secure the borrowing of funds permitted under the preceding
item, or (2) arising from capital leases or other transactions in the ordinary course of the
Company’s business and not material, in the aggregate, to the Company’s operations.

     (5) Except as set forth in Section 5.13, any declaration or payment of any dividend or other
distribution with respect to Securities;

     (6) Any merger or consolidation of the Company, whether or not the Company is the surviving
entity;

     (7) Any sale or other disposition, other than in the ordinary course of business, of assets
representing more than * % by value of the Company’s assets, other than pursuant to Section 6.6(f);

     (8) Any investment by the Company in, or acquisition of, another entity;

     (9) Any new issuance of Securities to any Person except as provided in this Agreement;

     (10) Subject to the exceptions set forth in Section 9.1, any transfer of Securities, other
than pursuant to Sections 6.6(d), 6.6(e) and 8.3;

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

Confidential

 

 

     (11) Adoption or amendment of the Certificate or the Bylaws;

     (12) Adoption or amendment of the Statement of Designation;

     (13) Any entry into or any material change in any transaction between the Company, on the one
hand, and either Party, on the other hand, other than any transaction involving a license of
Intellectual Property;

     (14) Any entry into, or rejection, termination or modification of, inbound or outbound
Intellectual Property licenses or sublicenses to (a) a Shareholder or an Affiliate of a Shareholder
(except to the extent provided in Section 6.1) or (b) a substantial competitor of either
Shareholder or of an Affiliate of either Shareholder;

     (15) Adoption or amendment of the Predetermined Acquisition Guidelines;

     (16) Any acquisition of Intellectual Property other than in accordance with the Predetermined
Acquisition Guidelines;

     (17) Except as set forth in Sections 6.6(f) and 8.3(b), the liquidation or dissolution of the
Company; or

     (18) The * Acquisition.

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

 Confidential

 

 

Attachment 1

Terms of Acquisition Preferred Stock

	 	 	 
	Dividend Rights:

	 	Any dividends shall be paid on a pro rata basis
to the holders of the Acquisition Preferred Stock
and the Common Stock on an as-converted basis.
	 
	 	 
	Liquidation Preference:

	 	In the event of any liquidation, dissolution or
winding up of the Company, the holders of the
Acquisition Preferred Stock shall be entitled to
receive, prior to any distribution to the holders
of the Common Stock, an amount equal to the
Purchase Price plus all declared but unpaid
dividends thereon (the “Preference Amount”).
After the full Preference Amount on all
outstanding shares of Acquisition Preferred Stock
has been paid, any remaining funds and assets of
the Company legally available for distribution to
shareholders shall be distributed pro rata among
the holders of the Common Stock and the
Acquisition Preferred Stock on an as-converted
basis.
	 
	 	 
	

	 	A merger or consolidation of the Company in which
its shareholders do not retain a majority of the
voting power in the surviving corporation, the
sale of all or substantially all the Company’s
assets, and a public offering of shares of Common
Stock of the Company shall each be deemed to be a
liquidation, dissolution or winding up of the
Company.
	 
	 	 
	Redemption:

	 	The Acquisition Preferred Stock shall not be
unilaterally redeemable at the option of the
Company or the holders.
	 
	 	 
	Conversion Rights:

	 	The holders of the Acquisition Preferred Stock
shall have the right to convert their Preferred
Stock into shares of Common Stock at any time.
The total number of shares of Common Stock into
which the Acquisition Preferred Stock may be
converted initially will be determined by
dividing the Purchase Price by the conversion
price. The initial conversion price will be the
Purchase Price (i.e., a 1-to-1 initial conversion
ratio). The conversion price will be subject to
adjustment to reflect stock dividends, stock
splits and similar events and as provided in
“Antidilution Provisions” below.

 Confidential

 

 

	 	 	 
	Antidilution Provisions:

	 	The conversion price of the Acquisition Preferred
Stock shall be subject to adjustment on a
broad-based weighted average basis for issuances
at a purchase price less than the then-effective
conversion price with carve-outs for issuances of
Common Stock reserved for issuance to employees,
consultants, officers or directors pursuant to
stock purchase or stock option plans or
agreements or other incentive stock arrangements
approved by the Board (“Incentive Pool”);
issuances in connection with the exercise or
conversion of exercisable or convertible
securities that are outstanding as of the closing
or are subsequently issued pursuant to a
carve-out; issuances in connection with
acquisitions; issuances which are approved by the
affirmative vote of a majority of the Board of
Directors as not being subject to the
antidilution provisions; and issuances to
strategic partners, all subject to standard
limitations. Proportional adjustments shall be
made to the conversion price for stock splits,
stock dividends and other recapitalizations.
	 
	 	 
	Voting Rights:

	 	Each share of Acquisition Preferred Stock shall
carry a number of votes equal to the number of
shares of Common Stock then issuable upon its
conversion into Common Stock. The Acquisition
Preferred Stock shall generally vote together
with the Common Stock and not as a separate
series or class, except as provided by law or as
provided in “Protective Provisions” below.
	 
	 	 
	Protective Provisions:

	 	Consent of the holders of a majority of the
outstanding Acquisition Preferred Stock, voting
separately as a separate series shall be required
for: (i) any amendment or change of the rights,
preferences, privileges or powers of, or the
restrictions that provide for the benefit of, the
Acquisition Preferred Stock that adversely
affects such shares; (ii) any increase or
decrease in the number of authorized shares of
the Acquisition Preferred Stock; (iii) any action
that authorizes, creates or issues shares of any
class of stock having preferences superior to or
on parity with the Acquisition Preferred Stock;
and (iv) any action that reclassifies any
outstanding shares of Acquisition Preferred
Stock.

Confidential

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