Document:

Exhibit 10.8

 

NONEXCLUSIVE SUBLICENSE AND
SPONSORED RESEARCH AGREEMENT

 

between

 

ADVANCED CELL TECHNOLOGY, INC.

 

and

 

CHARLES RIVER LABORATORIES, INC.

 

This Nonexclusive Sublicense and Sponsored
Research Agreement (the “Agreement”) is made and entered into as of June 29,
2001 (the “Effective Date”) by and between Advanced Cell Technology, Inc., a
Delaware corporation with its principal place of business at One Innovation
Drive, Worcester, Massachusetts 01605 (“ACT”) and Charles River Laboratories,
Inc., a Delaware Corporation with its principle place of business at 251
Ballardvale Street, Wilmington, Massachusetts 01887 (“CHARLES RIVER,” and
together with ACT, the “parties”).  As
set forth below, the University of Massachusetts (the “University”) has agreed to
be bound by certain provisions of this Agreement.

 

RECITALS

 

WHEREAS,
CHARLES RIVER is a supplier of laboratory animals for scientific research and
provides certain rodents as well as related
products and services to academic, governmental and industrial researchers; and

 

WHEREAS, the parties recognize that certain rats and
mice that are useful for scientific research can be difficult to breed; and

 

WHEREAS, ACT owns or has licensed with a
sublicensable interest the ACT Patent Rights and the ACT Technology (as defined
below) which includes certain scientific methods and techniques for cloning
animals that may be valuable in improving the economics of breeding such
rodents; and

 

WHEREAS, CHARLES RIVER wishes to use cloning
techniques for purposes related to its business including, without limitation,
improving the efficiency rates of producing certain rodents and/or selecting
for gender in certain rodents; and

 

WHEREAS,
CHARLES RIVER and ACT are mutually interested in evaluating, developing and
using the ACT Patent Rights and the ACT Technology for these purposes; and

 

WHEREAS,
CHARLES RIVER desires to obtain a non-exclusive sublicense from ACT under the
ACT Patents Rights and the ACT Technology, and to sponsor research at ACT
directed to evaluating, developing and using the ACT Patent Rights and the ACT
Technology for the purpose of improving the efficiency rates of producing
certain rodents and/or selecting for gender in certain rodents; and

 

 

WHEREAS,
ACT is willing to grant such a sublicense to CHARLES RIVER, and to perform such
sponsored research, upon the terms and conditions set forth below; and

 

WHEREAS,
the sublicense of ACT’S rights under the
UMASS Patent Rights (as defined below) to CHARLES RIVER under this
Agreement shall be subject to the relevant terms of the UMASS License (as
defined below);

 

NOW
THEREFORE, in consideration of the mutual covenants, agreements,
representations, and warranties contained in this Agreement, and other good and
valuable consideration, the adequacy and receipt of which is hereby
acknowledged, ACT and CHARLES RIVER agree as follows:

 

1.                                      DEFINITIONS.  As
used in this Agreement, the following terms shall have the meanings set forth
below.

 

1.1                              “ACT Developments” means Developments that are conceived,
discovered, invented, developed, created, made or reduced to practice solely by
ACT.

 

1.2                              “ACT Licensed Property” means the ACT Patent Rights and the ACT Technology
provided, however, that ACT
Licensed Property shall not include ACT Patent Rights or ACT Technology (i)
acquired after the Effective Date as a result of or in connection with a merger
or acquisition with or by another entity, or (ii) obtained on terms which
prohibit the license contemplated by Section 3.1.

 

1.3                              “ACT Patent Rights” means the patents and patent applications
identified on Schedule A-l attached hereto, all divisionals, continuations, and
continuations-in-part that derive from the identified patent applications
(including from the patent applications for the identified patents), foreign
filings related to the foregoing patents and patent applications, and any
patents issuing on said applications together with all reissues,
reexaminations, extensions and substitutions thereof.  The parties agree that Schedule A-l may from
time to time be amended after the Effective Date to reflect changes thereto.

 

1.4                              “ACT Technology” means the following which are owned or
controlled by ACT during the term of this Agreement which are useful, necessary
or required to clone rats or mice in the Charles River Field: confidential
information, knowledge and data, including but not limited to, inventions
(whether patentable or not), trade secrets, ideas, designs, drawings, know-how,
processes, techniques and like technological information.

 

1.5                              “Affiliate” means any corporation, company, partnership,
joint venture and/or firm which controls, in whatever country organized, that
is controlled by or is under common control with a party.  For purposes of this definition, “control”
means (a) in the case of corporate entities, direct or indirect ownership of
more than fifty percent (50%) of the stock or shares entitled to vote for the
election of directors; and (b) in the case of non-corporate entities, direct or
indirect ownership of more than fifty percent (50%) of the equity interest with
the power to direct the management and policies of such noncorporate entities.

 

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1.6                               “Charles River Developments”
means Developments that are
conceived, discovered, invented, developed, created, made or reduced to
practice solely by CHARLES RIVER.

 

1.7                               “Charles River Field” means the cloning of rats and mice, excluding
rats or mice cloned from cells that have been intentionally genetically
modified subsequent to the removal; of the cells from the donor animal, for all
purposes related to the development, manufacture, production, use, marketing or
sale of products and services useful for scientific research.

 

1.8                               “Charles River Licensed
Property” means the Charles
River Patent Rights and the Charles River Technology provided, however, that Charles River Licensed Property
shall not include Charles River Patent Rights or Charles River Technology (i)
acquired after the Effective Date as a result of or in connection with a merger
or acquisition with or by another entity, or (ii) obtained on terms which
prohibit the license contemplated by Section 3.2.

 

1.9                               “Charles River Patent
Rights” means the patents
and patent applications identified on Schedule A-2 attached hereto, all
divisionals, continuations, and continuations-in- part that derive from the
identified patent applications (including from the patent applications for the
Identified patents), foreign filings related to the foregoing patents and
patent applications, and any patents issuing oh said applications together with
all reissues, reexaminations, extensions and substitutions thereof.  The parties agree that Schedule A-2 may from
time to time be amended after the Effective Date to reflect changes thereto.

 

1.10                         “Charles River Technology” means the following which are owned or
controlled by CHARLES RIVER during the Research Period which are useful,
necessary or required for ACT to conduct the Research Project: confidential
information, knowledge and data, including but not limited to, inventions
(whether patentable or not), trade secrets, ideas, designs, drawings, know-how,
processes, techniques and like technological information.

 

1.11                         “Confidential Information” includes, without limitation, any scientific,
technical, financial, customer, trade business or other information disclosed
by one party to the other, or by CHARLES RIVER to the University, whether
directly or through ACT, which is specifically designated by the disclosing
party as confidential or proprietary, or which, under all of the given circumstances,
ought reasonably to be treated as confidential information of the disclosing
party.  Such information may be disclosed
in oral, visual or written form (including magnetic, optical or other media).  Each party’s Confidential Information
specifically includes without limitation the respective party’s business plans
and business practices, the terms of this Agreement, scientific knowledge,
research and development or know-how, processes, inventions, techniques, formulae,
products and product plans, business operations, customer requirements,
designs, sketches, photographs, drawings, specifications, reports, studies,
findings, data, plans or other records, biological materials, software,
margins, payment terms and sales forecasts, volumes and activities, designs,
computer code, technical information, costs, pricing, financing, business opportunities,
personnel, and information of ACT or CHARLES RIVER relating to the ACT Licensed
Property or the Charles River Licensed Property, as applicable.  Licensed Products or Licensed Services.  Confidential Information does not include
information which (a) was known to the receiving party at the time it was
disclosed, other than by previous disclosure by the disclosing party, as
evidenced by the written records of the receiving party at the time of

 

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disclosure;
(b) is at the time of disclosure or later becomes publicly known other than
through a breach of this Agreement; (c) is lawfully and in good faith made
available to the receiving party by a third party who, to the receiving party’s
knowledge after inquiry, did not derive it from the disclosing party and who
imposed no obligation of confidence on the receiving party; or (d) is developed
by the receiving party independent of any disclosure by the disclosing party,
as evidenced by the written records of the receiving party.

 

1.12                        “Developments” include, without limitation, discoveries,
inventions, developments, patents and patent rights, know-how, trade secrets,
techniques, methodologies, modifications, innovations, improvements, writings,
documentation, data and rights (whether or not protectible under state,
federal, or foreign patent, trademark, copyright or similar laws) that were or
are conceived, discovered, invented, developed, created, made or reduced to
practice by ACT or CHARLES RIVER, as applicable, during the term of this
Agreement.

 

1.13                        “FDA” means the United States Food and Drug
Administration.

 

1.14                        “Joint Developments” means all Developments conceived, discovered,
invented, developed, created, made or reduced to practice jointly by both
parties in the Charles River Field.

 

1.15                        “Joint Patent Rights” means any and all patents and patent
applications covering Joint Developments which exist as of the Effective Date
or which come into existence during the term of this Agreement, together with
reissues, extensions (or other governmental acts which effectively extend the
period of exclusivity by the patent holder), substitutions, confirmations, registrations,
revalidations, additions, continuations, continuations-in-part, divisions, or
foreign counterparts of or to the foregoing patent rights.  Joint Patent Rights include, without
limitation, the patents and patent applications to be listed on Schedule A-3 to
be attached to this Agreement, which schedule will thereafter be revised from
time to time to reflect changes thereto.

 

1.16                        “Licensed Product” means any product that cannot be developed,
manufactured, used, or sold without (i) infringing one or more claims under the
ACT Patent Rights, or (ii) using or incorporating some portion of the ACT
Technology.  Without limiting the
generality of the foregoing, and by way of illustration but not limitation,
Licensed Products include cloned rats or mice in the Charles River Field and
the progeny (“Progeny”) of such rats and mice.

 

1.17                        “Licensed Service” means any service that cannot be developed or
performed without using at least one process that (i) infringes one or more
claims under the ACT Patent Rights, or (ii) uses some portion of the ACT
Licensed Property.

 

1.18                        “Net Sales” means the total invoice price charged on all
sales by CHARLES RIVER of Licensed Products and/or Licensed Services in any
country after deducting, to the extent not already deducted, normal and
customary trade, dealer, quantity, and cash discounts actually allowed;
allowances for credits granted on account of rejections, returns, or price reductions;
governmental sales taxes and other charges imposed on such sales; and freight, insurance,
customs, duties, and other landing charges.  In the event any product is sold as a component
of a combination of functional elements, net sales price for purposes of
determining royalty payments on such combination shall be calculated by
multiplying the average per unit net sales price of the Licensed Product
portion of the combination when sold separately in the

 

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applicable
country during the accounting period in which the sale was made by the number
of units of product sold as part of such combination product.  In addition, Net Sales shall include the
amount of any milestone payment received based on the performance of CHARLES
RIVER in connection with the development of Licensed Products and/or Licensed
Services.

 

In
any transfers of Licensed Products between CHARLES RIVER and an Affiliate, Net
Sales shall be calculated based on the final sale of the Licensed Product to an
independent third party.  In the event
that CHARLES RIVER or an Affiliate receives non-monetary consideration for any
Licensed Products or Licensed Services, Net Sales shall be calculated based on
the fair market value of such consideration.  In the event that CHARLES RIVER or its
Affiliates use or dispose of a Licensed Product in the provision of a
commercial service other than a Licensed Service, the Licensed Product shall be
considered sold and the Net Sales shall be calculated based on the sales price
of the Licensed Product to an independent third party or, in the absence of
such sales, on the fair market value of the Licensed Product as determined by
the parties in good faith.

 

1.19                         “Principal Investigator” means an employee of ACT who has primary responsibility
for the performance of the Research Project.  The Principal Investigator is identified in
Section 2.1 below.

 

1.20                         “Research Period” shall mean the period commencing on the
Effective Date of this Agreement and terminating on the second anniversary of
the Effective Date or such earlier date as the Research Project is completed or
terminated.  The Research Period may be
extended by the mutual written consent of the duly authorized representatives
of CHARLES RIVER and ACT.

 

1.21                         “Research Project” means the research project and budget
described in Schedule B (“Description of Research Project”), which ACT
agrees to perform under the terms and conditions of this Agreement.

 

1.22                         “Research Results” means all data, test results, laboratory
notes, techniques, know-how, and any other research results that are obtained
in the performance of the Research Plan.  Research Results do not include any
Developments or other intellectual property (whether patentable inventions,
copyrighted or copyrightable works, trademarks or service marks) based on the
Research Results.

 

1.23                         “Technical Representative” means an individual designated by CHARLES RIVER
as its principal technical representative for consultation and communications
with ACT and the Principal Investigator.  The Technical Representative is identified in
Section 2.1 below.

 

1.24                         “UMASS License” means the Exclusive License Agreement between
ACT and the University dated April 16, 1996, together with any amendments
thereto.

 

1.25                         “UMASS
Patent Rights” means ACT Patent Rights licensed by ACT from the University
under the UMASS License.

 

1.26                         “Valid Claim”
means a claim of an issued patent which has not lapsed or become abandoned
or declared invalid or unenforceable by a court of competent jurisdiction or an

 

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administrative
agency from which no appeal can be or has been taken within the time allowed
for that appeal.

 

The use herein of the plural shall include the singular and vice versa and the use of the masculine
shall include the feminine.  Additional
terms may be defined throughout this Agreement.

 

2.                                     SPONSORED RESEARCH

 

2.1                                 Steering Committee; Principal Investigator
and Technical Representative.
Except as otherwise specifically set forth in this Section 2, the Research
Project shall be conducted under the guidance of a steering committee composed
of the Principal Investigator, the Technical Representative and one additional
representative from each of CHARLES RIVER and ACT (which additional
representatives are identified on Schedule C attached hereto) (the “Steering
Committee”), which shall generally oversee, review and monitor the progress of
the Research Project.  The Principal
Investigator shall be Jose Cibelli.  If
Jose Cibelli ceases to serve as Principal Investigator for any reason, ACT will
promptly notify CHARLES RIVER, and ACT and CHARLES RIVER shall use good faith
efforts to identify a mutually acceptable replacement within sixty (60) days.  If a suitable replacement Principal
Investigator can not be identified within the sixty-day period, CHARLES RIVER
shall have the right to terminate this Agreement as provided in Section 5.2.  The Technical Representative shall be Rebecca
Menapace.  CHARLES RIVER may change its
Technical Representative upon thirty (30) days written notice to ACT.  Either party may replace its representatives
identified on Schedule C at any time, upon written notice and mutual
agreement of the parties.

 

2.2                                 Performance of Research Project. The Research Project shall be conducted at
and coordinated from the facilities of ACT under the supervision and direction
of the Principal Investigator.  ACT shall
be responsible for the administrative management of the Research Project.  As soon as practicable after the Effective
Date, ACT shall assemble and maintain a qualified team of laboratory, technical
and other personnel necessary to support ACT’s obligations hereunder (the “Project
Team”) under the supervision and direction of the Principal Investigator to
commence and conduct the Research Project.  The Technical Representative may consult
informally with the Principal Investigator, both in person and by telephone,
regarding the performance of the Research Project, and the Technical
Representative shall have reasonable access to the Project Team and ACT’s
facilities where the Research Project is being conducted, but the exact time and
manner of such access shall be determined by the Principal Investigator; provided,
however, that the Principal Investigator shall cooperate in good faith with the
members of the Steering Committee to implement the Research Project and to
resolve any issues which may arise related to the implementation of the
Research Project.  ACT shall use
reasonable commercial efforts to complete the Research Project within the
Research Period; however, ACT makes no warranties regarding the completion of
the Research Project or the achievement of any particular results.

 

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2.3                                 Research Funding and Payment to ACT. (a) In consideration of ACT’s performance of
the Research Project, CHARLES RIVER agrees to pay to ACT sponsored research
payments as follows:

 

(i)                                     CHARLES RIVER shall pay ACT One Hundred
Twenty Five Thousand Dollars ($125,000) upon the signing of this Agreement by
the parties;

 

(ii)                                 CHARLES RIVER shall pay ACT One Hundred
Thousand Dollars ($100,000) six (6) months after the Effective Date of this
Agreement;

 

(iii)                              CHARLES RIVER shall pay ACT One Hundred
Twenty Five Thousand Dollars ($125,000) thirteen (13) months after the
Effective Date of this Agreement; and

 

(iv)                            CHARLES RIVER shall pay ACT One Hundred
Twenty Five Thousand Dollars ($125,000) eighteen (18) months after the
Effective Date of this Agreement;

 

provided,
however, that the payments set forth in clauses (iii) and (iv) above shall be
contingent upon CHARLES RIVER’s reasonable satisfaction with the research
conducted during the period commencing on the Effective Date of this Agreement
and ending on the first anniversary of the Effective Date (the “Initial
Research Period”), including CHARLES RIVER’s satisfactory review of the
progress reports for such Period.  In the
event CHARLES RIVER is not reasonably satisfied with the research conducted
during the Initial Research Period, CHARLES RIVER may terminate the Research
Project by notifying ACT in writing within thirty (30) days after the first
anniversary of the Effective Date of its dissatisfaction with the research
conducted during the Initial Research Period and the termination of the
Research Project.

 

(b)                               In no event will CHARLES RIVER be liable for
any payment in excess of Four Hundred Seventy Five Thousand Dollars ($475,000)
except as mutually agreed by the parties hereto in writing.

 

2.4                              Reports. ACT shall prepare and provide to CHARLES RIVER written progress reports
summarizing the status of the Research Project within thirty (30) days after
the end of each calendar quarter during the Research Period (each, a “Report”).
 The Report shall include all Research
Results, including laboratory notebooks maintained in accordance with customary
practice and issues related to the conduct of Research Project during the
preceding quarter.  During the Research
Period, and at the convenience of the Principal Investigator, the Technical Representative
shall have reasonable access to such records.  Within ninety (90) days after the expiration
or termination of the Research Period, the Principal Investigator shall deliver
to CHARLES RIVER a final report describing all significant Research Results in
reasonable detail; provided, however, that the Principal Investigator may
extend this ninety-day deadline with the consent of CHARLES RIVER, which
consent shall not be unreasonably withheld.

 

2.5                              Access and Information; Periodic Meetings of
Steering Committee, During
the Research Period, and at the convenience of the Principal Investigator, ACT
shall provide the Technical Representative on an ongoing basis with such access
to the Project Team and ACT facilities, and with such technical information,
assistance and know-how, as may be necessary to enable CHARLES RIVER to review
and evaluate the progress of the Research Project.  During the Research Period the Steering
Committee shall meet at least once every three (3) months to discuss the
Research Project.  Any decisions of the
Steering Committee shall require an affirmative vote of two-thirds of members.

 

2.6                              Materials to be Provided by Charles River. CHARLES RIVER shall provide, at

 

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no
cost to ACT, the materials as set forth in Schedule D for use by ACT in
performing the Research Project.

 

2.7                                 Use of Funds. ACT shall use the funds provided under this
Section 2 solely in support of the activities by the Principal Investigator and
the Project Team in support of the Research Project.

 

2.8                                 Ownership of Equipment. Upon termination or expiration of this
Agreement, ACT shall retain title to all equipment purchased or fabricated by
ACT with funds provided by CHARLES RIVER pursuant to Section 2.3 hereof.

 

2.9                                 Compliance with Law. ACT agrees that all studies, research, and
testing done by, or on behalf of, CHARLES RIVER under this Agreement shall be
performed in strict compliance with all applicable laws, rules and regulations
governing the conduct of studies, research and testing at the site where such
studies, research and testing are being conducted.

 

2.10                          Acknowledgment of Risks Associated with
Research Project. ACT and
CHARLES RIVER acknowledge, understand and agree that the subject of the
Research Project is experimental, that its characteristics and functionality
are not fully understood, and that there may be substantial risks associated
with the unknown properties of the products of the Research Project or any
other associated materials.

 

2.11                           Publications. During the term of this Agreement, ACT and
CHARLES RIVER each acknowledge the other party’s interest in publishing certain
of the Research Results to obtain recognition within the scientific community
and to advance the state of scientific knowledge.  Each party also recognizes the mutual interest
in obtaining valid patent protection and maintaining as confidential any
nonpatentable materials or methods which would have commercial value when
undisclosed.  Consequently, either party,
its employees or consultants wishing to make a publication (including any oral
disclosure made without obligation of confidentiality) relating to any work
performed as part of the Research Project (the Publishing Party) shall transmit
to the other party (the Reviewing Party) a copy of the proposed written
publication at least sixty (60) days prior to submission for publication, or an
outline of such oral disclosure at least thirty (30) days prior to
presentation.  The Reviewing Party shall
have the right (a) to propose modifications to the publication for patent or
other reasons; and (b) to request a delay in publication in order to protect
patentable information.  If the Reviewing
Party requests such a delay, the Publishing Party shall delay submission or
presentation of the publication for a period of fourteen (14) days to enable
patent applications protecting each party’s rights in such information to be filed
in accordance with Section 7 below.  Upon
the expiration of sixty (60) days or thirty (30) days from transmission to the
Reviewing Party, the Publishing Party shall be free to proceed with the written
publication or the presentation, respectively, unless the Reviewing Party has
requested the delay described above.  The
Parties expressly agree that research grant proposals submitted to governmental
authorities or non-profit organizations shall not be subject to review under
this Section.  ACT and CHARLES RIVER
agree to recognize each other in any publications arising out of the Research
Project, as appropriate.

 

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3.                                      GRANT OF RIGHTS.

 

3.1                                 (a) License Grant from ACT to CHARLES
RIVER. Subject to the terms of this Agreement, ACT hereby grants to CHARLES
RIVER a nonexclusive, royalty-bearing, worldwide license under its commercial
rights in the ACT Licensed Property and in the Joint Patent Rights to develop,
make, have made, import, use, sell and have sold Licensed Products in the
Charles River Field and to develop and perform Licensed Services in the Charles
River Field.  To the extent this grant
includes a sublicense of any UMASS Patent Rights, such sublicense is subject to
the relevant terms of the UMASS License as it may be amended from time to time,
provided that in the event of any inconsistency between the UMASS License and
Section 3.1(d) hereof, Section 3.1(d) hereof shall govern.  The parties acknowledge, understand and agree
that the license “to have made” and “to have sold” granted herein means only
that CHARLES RIVER may contract with a third party or parties to develop,
manufacture or sell Licensed Products on behalf of CHARLES RIVER.

 

(c) Retained Rights. To the extent the University, the federal
government or any other parties have rights in the ACT Licensed Property
pursuant to Article 2 of the UMASS License, the license granted hereunder is
subject to such rights.

 

(d) The UMASS License. CHARLES RIVER acknowledges that a portion
of the ACT Patent Rights licensed to CHARLES RIVER hereunder are owned by the
University and are licensed to ACT under the UMASS License.  ACT and the University represent and warrant
to CHARLES RIVER and CHARLES RIVER agrees that, in the event the UMASS License
is terminated for any reason pursuant to the provisions of the UMASS License,
(i) CHARLES RIVER will thereafter make any payments due to ACT directly to the
University, and (iii) promptly following such termination, CHARLES RIVER and
the University will enter into a direct license agreement reflecting the
applicable terms of this Agreement and the UMASS License.  ACT acknowledges that any payments so made by
CHARLES RIVER to the University shall be credited against any payments due and
payable to ACT hereunder.  For the
avoidance of doubt, ACT and the University agree that the references to “Sublicensees”
in Section 8.5 of the UMASS License shall not apply to CHARLES RIVER and shall
not be construed as vitiating clause (i) of this Section 3.1(d).  ACT and the University agree that the
provisions of Section 2.2 of the UMASS Agreement providing for the automatic
assignment to the University of sublicensees granted by ACT under said Section
2.2 shall not apply to the sublicense by ACT to CHARLES RIVER under this
Agreement, and that the provisions of this Section 3.l(d) shall govern in the
event that the UMASS License is terminated.  ACT and the University agree that CHARLES
RIVER will not be bound by any amendment to the UMASS License that affects
CHARLES RIVER’S rights under this Agreement in any material respect, unless
CHARLES RIVER agrees in writing to such amendment.

 

3.2                                 License Grant and Right of First Option from
CHARLES RIVER to ACT. Subject
to the terms of this Agreement, CHARLES RIVER hereby grants to ACT (i) a non-exclusive,
non-transferable (except as provided in Section 13.1), non-sublicenseable
license, under the Charles River Licensed Property, to use the Charles River
Licensed Property to perform the Research Project, and (ii) a right of first
option, exercisable on one occasion only at any time up to and including the
third anniversary of the Effective Date (as provided below) to an exclusive
sublicense with the right to further sublicense (provided, however, that no
further

 

9

 

sublicense shall be granted
to a principal competitor of Charles River in the Field of commercial rodent
breeding for laboratory research purposes, including without limitations,
Taconic Farms or Harlan Sprague Dawley, without the prior written consent of
Charles River) to use the Charles River Patent Rights outside the Charles River
Field for the cloning of rats and mice cloned from cells that have been
intentionally genetically modified subsequent to the removal of cells from the
donor animal, for purposes related to the development, manufacture, production,
use, marketing or sale of products and services useful for scientific research
(the “Genetically Modified Rodent Field”) at a royalty rate of six percent (6%)
of the net sales received by ACT for products or services sold by ACT in the
Genetically Modified Rodent Field.  CHARLES
RIVER shall notify ACT in writing of its intention to enter into a sublicense
of the Charles River Patent Rights for the Genetically Modified Rodent Field.  ACT shall then have a period of thirty (30)
days to notify CHARLES RIVER in writing of its desire and willingness to enter
into an exclusive sublicense of the Charles River Patent Rights for the
Genetically Modified Rodent Field.  If
ACT so notifies CHARLES RIVER, then ACT and CHARLES RIVER shall negotiate in
good faith for not more than thirty (30) days to reach agreement on the terms
of the exclusive sublicense (other than the financial terms that are set forth
above), which sublicenses shall require the approval of Tufts University.  If, by the end of such thirty (30) day period,
ACT and CHARLES RIVER have not reached agreement, CHARLES RIVER shall be free
to enter into sublicenses with third parties for the license of the Charles
River Patent Rights for the Genetically Modified Rodent Field, and ACT’s rights
under this Section 3.2 shall thereupon terminate.

 

3.3                                Developments.

 

(a)                                   ACT Developments. ACT agrees, on a periodic basis (not less
than semiannually), to provide to CHARLES RIVER with a written report of all
ACT Developments, provided that such reports shall be deemed Confidential
Information subject to the provisions of Section 8 of this Agreement, and all
such ACT Developments, whether or not patentable, relevant to the Charles River
Field, are and shall be considered ACT Licensed Property and automatically
licensed to CHARLES RIVER pursuant to Section 3.l(a).

 

(b)                                  Charles River Developments. CHARLES RIVER agrees, on a periodic basis (not
less than semiannually), to provide ACT with a written report of all Charles
River Developments, provided that such reports shall be deemed Confidential
Information subject to the provisions of Section 8 of this Agreement, and all
such Charles River Developments, whether or not patentable, are and shall be
automatically licensed to ACT pursuant to Section 3.2.

 

3.4                                Right of First Option and Right of First
Refusal. (a) ACT hereby
grants to CHARLES RIVER a right of first option, exercisable on one occasion
only at any time up to and including the third anniversary of the Effective
Date (as provided below), to convert the nonexclusive license granted to
CHARLES RIVER pursuant to Section 3.1(a) to an exclusive license (the “First
Option Right”) at an exercise price not to exceed the difference between all amounts
that have actually been paid hereunder by CHARLES RIVER at the time of its
exercise of the option described herein (except for the sponsored research
payments under Section 2.3) and $1,000,000.  ACT shall notify CHARLES RIVER in writing of
its intention to enter into an additional license of the ACT Licensed Property
in the Charles River Field with a third party CHARLES RIVER shall then have a
period of thirty (30) days to notify ACT in writing of its

 

10

 

desire and willingness to
enter into an exclusive license of the ACT Licensed Property in the Charles
River Field.  If CHARLES RIVER so
notifies ACT, then ACT and CHARLES RIVER shall negotiate in good faith for not
more than thirty (30) days to reach agreement on the terms of the exclusive
license, which license shall be subject to the approval of the University. (The
parties agree that the terms of the exclusive license will include (i)
financial terms that provide for a $10,000 minimum annual royalty payment and
an increase in the royalty rate from 6% to 9% in the event that CHARLES RIVER’s
sales for any particular cloned rodent model exceeds $5,000,000 per year and
(ii) other terms typical and customary for an exclusive license of this type).  If, by the end of such thirty (30) day period,
ACT and CHARLES RIVER have not reached agreement, ACT shall be free to enter
into non-exclusive licenses with third parties for the license of the ACT
Licensed Property in the Charles River Field, and CHARLES RIVER’s rights under
this Section 3.4 (a) shall thereupon terminate.

 

(b) Notwithstanding anything to the contrary contained in this
Agreement, CHARLES RIVER hereby grants to ACT a right of first refusal to
acquire or obtain any sublicense, license, contract or any other agreement that
CHARLES RIVER proposes to enter into for the use of the Licensed Property in
connection with the development or manufacture of Licensed Products (the “First
Refusal Right”).  CHARLES RIVER shall
promptly notify ACT in writing of its intention to enter into such an agreement
with a third party, and CHARLES RIVER’s notice to ACT shall describe in
reasonable detail the terms of the proposed agreement with said third party.  ACT may exercise the First Refusal Right upon
written notice to CHARLES RIVER within ninety (90) days after ACT’s receipt of
CHARLES RIVER’s notice described above.  In
the event ACT exercises the First Refusal Right, ACT and CHARLES RIVER shall
attempt to negotiate in good faith an agreement on terms and pricing which are
the same as those offered to such third party in all material respects.  If ACT and CHARLES RIVER are unable to reach
agreement within ninety (90) days after the date upon which ACT exercised the
First Refusal Right (the “Negotiation Period”), then CHARLES RIVER will be free
to proceed with an agreement with said third party on terms no less favorable
to such third party than were communicated to ACT in the notice described above
within a period of one (1) year after the Negotiation Period.

 

4.                                   OBLIGATIONS RELATING TO
COMMERCIALIZATION.

 

4.1                             Charles River Diligence Requirements. CHARLES RIVER shall use diligent efforts to
develop Licensed Products or Licensed Services and to introduce Licensed
Products or Licensed Services into the commercial market; thereafter, CHARLES
RIVER shall make Licensed Products or Licensed Services reasonably available to
the public.  Without limiting the
generality of the foregoing, CHARLES RIVER shall fulfill the following
obligations:

 

(a)                              at its expense and for a period of two years
from the Effective Date, CHARLES RIVER shall commit a minimum of Four Hundred
Seventy Five Thousand Dollars ($475,000.00) to product research and development
directed to commercialization of Licensed Product and/or Licensed Services in
the Field.

 

(b)                             not later than two (2) years after the
conclusion of the Research Project, CHARLES RIVER must make first commercial
sale of a cloned mouse as a Licensed Product.

 

11

 

(c)                                  not later than two (2) years after the
conclusion of the Research Project, CHARLES RIVER must make first commercial
sale of a cloned rat as a Licensed Product.

 

4.2                                 Summary Reports.

 

(a)                                  Reports by CHARLES RIVER. CHARLES RIVER shall maintain complete and
accurate records of Licensed Products and Licensed Services that are made,
used, sold or performed by CHARLES RIVER under this Agreement.  Not later than May 1st of each year
following the Effective Date, CHARLES RIVER shall furnish ACT and the
University with an executive summary report on the progress of its efforts
during the prior year to develop and commercialize Licensed Products or
Licensed Services, including without limitation research and development
efforts, efforts to obtain regulatory approval, marketing efforts (including
Licensed Products and Licensed Services made, used, sold or performed) and
sales figures, provided that such reports shall be deemed Confidential
Information subject to the provisions of Section 8 of this Agreement.

 

4.3                                 Failure to Fulfill Obligations. In the event that ACT determines that
CHARLES RIVER has not fulfilled its obligations under this Section 4, ACT shall
furnish CHARLES RIVER with written notice of such determination.  Within sixty (60) days after receipt of such notice,
CHARLES RIVER shall either (i) fulfill the relevant obligation or (ii)
negotiate with ACT a mutually acceptable schedule of revised obligations,
failing which ACT shall have the right immediately upon written notice to
CHARLES RIVER to terminate this Agreement.

 

5.                                    TERM AND TERMINATION.

 

5.1                               General. The license granted by ACT to CHARLES RIVER under Section 3.1(a) will
commence on the Effective Date and, unless sooner terminated as provided
herein, continue until the expiration of all ACT Patent Rights, whereupon the
license hereunder to CHARLES RIVER shall become paid-up and royalty free.

 

5.2                               Termination for Cause. This Agreement may be terminated by either
party for breach by the other party of any material obligation arising
hereunder, by giving thirty (30) days prior written notice to the other party
specifying the cause of the termination; provided, however, that if the breach
is cured within the thirty (30) day period, the notice shall be withdrawn and shall
be of no effect.

 

5.3                               Survival of Obligations; Return of
Confidential Information. Notwithstanding
any termination of this Agreement, the obligations of the parties under Section
8, as well as under any other provisions which by their nature are intended to
survive any such termination, shall survive and continue in force.  Upon any termination of this Agreement, each
party shall promptly return to the other party all written Confidential
Information, and all copies thereof, to the other party.

 

5.4                               Additional Termination Provisions. The foregoing termination rights are in addition
to any termination rights that may be provided elsewhere in this Agreement.

 

12

 

6.                                      PAYMENTS.

 

6.1                               License Fee. CHARLES RIVER shall pay to ACT an initial License Fee of TEN THOUSAND
DOLLARS ($10,000.00), one hundred percent (100%) of which payment shall be deemed
earned and shall be due fifteen (15) days after the Effective Date.  The License Fee is not refundable and is not
creditable against other payments due to ACT under this Agreement.

 

6.2                               Royalties, Reports and Records.

 

(a)                                For each Licensed Product or Licensed Service
sold by CHARLES RIVER, CHARLES RIVER shall pay to ACT of the following
royalties or the royalty set out in Section 6.2(b):

 

(1)                               Six percent (6%) of the Net Sales of Licensed
Products or Licensed Services sold by CHARLES RIVER so long as the Licensed
Product or Licensed Service, where sold would, but for this Agreement, infringe
a Valid Claim of any ACT Patent Right which is licensed exclusively to CHARLES
RIVER in such country, provided, however, that where the Licensed Products sold
are the Progeny of cloned rats or mice that are Licensed Products, the royalty
shall be three percent (3%) of the Net Sales of such Progeny; or

 

(2)                               Two percent (2%) of the Net Sales of Licensed
Products or Licensed Services (or one percent (1%) of the Net Sales Price of
Progeny) sold by CHARLES RIVER which do not infringe a Valid Claim of any ACT
Patent Right exclusively licensed to CHARLES RIVER in such country but
incorporate or utilize to a substantial degree ACT Technology.  Such royalty shall be paid for (i) ten (10)
years from first commercial sale of a Licensed Product or Licensed Service on a
country-by-country basis, where sales of Licensed Products or Licensed Services
amount to eighty percent (80%) or more of total sales of products or services
(including sales of Licensed Products or Licensed Services) employing similar
technology in such country, or (ii) seven (7) years from first commercial sale
of a Licensed product or Licensed Service on a country-by-country basis where
sales of Licensed Products or Licensed Services amount to less than eighty
percent (80%) of total sales of products or services (including sales of
Licensed Products or Licensed Services) employing similar technology, in such
country, or

 

(b)                           In the case of a pending patent application,
royalties shall be paid at the royalty rate set forth in Section 6.2(a)(l)
for four (4) years from first commercial sale of Licensed Products or Licensed
Services or until the patent has issued, whichever occurs earlier.  If the patent does not issue within four (4)
years from first commercial sale of Licensed Products or Licensed Services,
royalties shall be payable at the royalty rate set forth in Section 6.2(a)(2) for
the remainder of the applicable period set forth therein or until the patent
issues, whichever occurs earlier.  If the
patent does not issue before the end of the applicable period in Section 6.2(a)(2),
then royalties shall cease at the time and will only be required thereafter if
the patent issues prior to the expiration of this Agreement in which case
royalties will be payable at the rate set forth in Section 6.2(a)(1).

 

(c)                            Notwithstanding anything in this Agreement to
the contrary, royalties shall not be payable for a patent licensed hereunder
beyond the life of such patent.

 

13

 

6.3                                 Payments in U.S. Dollars. All payments due under this Agreement shall
be payable in United States dollars.  Conversion
of foreign currency to U.S. dollars shall be made at the conversion rate
reported in The Wall Street Journal on the last working day of the calendar quarter
to which the payment relates.  Such
payments shall be without deduction of exchange, collection, or other charges.

 

6.4                                 Audit Rights

 

(a)                                   CHARLES RIVER shall submit a report to ACT
quarterly within 45 days after the end of each calendar quarter during the term
of this Agreement stating in each such report the aggregate sales and payments
with respect to Licensed Products and Licensed Services during the preceding
calendar quarter and the royalty amounts as provided herein.  Such reports shall also include a statement of
any credits claimed hereunder (including without limitation any applicable
credits claimed) during the preceding calendar quarter.  The payment of royalty amounts shall be made
concurrently with such reports.

 

(b)                                  CHARLES RIVER shall keep full, complete, true
and accurate books of account containing all particulars relating to the
manufacture and sales with respect to Licensed Products and Licensed Services,
and any allowed credits, which may be necessary to ascertain and verify the
royalties payable to ACT.  Said books and
accounts shall be kept at CHARLES RIVER’s principal place of business for the
five years next following the end of the calendar year to which they pertain.

 

(c)                                   At the request of ACT or the University, but
not more than once in each calendar year, CHARLES RIVER shall permit an
independent certified public accountant selected by the ACT or the University
(or the University’s internal accountants) to have access, during regular
business hours of the CHARLES RIVER, to such records to determine, for any calendar
quarter commencing not more than three years prior to the date of such request,
the completeness and accuracy of such books and records, and the accuracy of
reports submitted to ACT and/or payments made to ACT.  If any such inspection discloses an error in
any royalty payment, CHARLES RIVER shall pay to the other party, within thirty
(30) days of the discovery of the error, (a) all deficiencies in royalty
payments, (b) interest on such deficiencies from the date such royalty payment
was due until the date paid at the rate equal to one and one-half percent (1
1/2%) per month, and (c) if such error is in excess of five percent (5%) of any
royalty payment, the cost of the audit.  In
all other cases, the costs of the audit shall be paid for by the party
conducting the audit.  All information
disclosed pursuant to an audit shall be deemed Confidential Information subject
to the provision of Section 8 hereof.

 

7.                                    PROPRIETARY RIGHTS.

 

7.1                                Ownership.

 

(a)                                 ACT. ACT or its licensor(s) shall own the ACT Patent Rights, ACT Technology
and the ACT Developments.

 

(b)                                CHARLES RIVER. CHARLES RIVER or its licensor(s) shall own
the Charles River Patent Rights and the Charles River Developments.

 

14

 

(c)                                   Joint Developments and Joint Patent Rights. The parties shall jointly own all Joint
Developments and Joint Patent Rights.

 

7.2                                 ACT Patent Rights.

 

(a)                                   ACT shall be solely responsible for the
continued prosecution of pending patent applications included in the ACT Patent
Rights and the issuance of such applications after allowance.  The prosecution, filing and maintenance of all
patents and applications shall be the responsibility of ACT.  Additionally, ACT shall pay all government
fees in any given country required to maintain the ACT Patent Rights; and shall
submit evidence to CHARLES RIVER upon request that such fees have been timely
paid.

 

(b)                                  The parties agree to notify each other in
writing of any actual or threatened infringement by a third party of the ACT
Patent Rights or of any claim of invalidity, unenforceability, or
non-infringement of the ACT Patent Rights.  ACT shall have the sole responsibility to
prosecute or defend such claims, as applicable.  CHARLES RIVER shall if requested provide
reasonable assistance to ACT at ACT’s expense, in connection with the prosecution
or defense of such claims.

 

7.3                                 Charles River Patent Rights.

 

(a)                                   CHARLES RIVER shall be solely responsible for
the continued prosecution of pending patent applications included in the
Charles River Patent Rights and the issuance of such applications after
allowance.  The prosecution, filing and
maintenance of all patents and applications shall be the responsibility of
CHARLES RIVER.  Additionally, CHARLES
RIVER shall pay all government fees in any given country required to maintain
the Patent Rights; and shall submit evidence to ACT upon request that such fees
have been timely paid.

 

(b)                                  The parties agree to notify each other in
writing of any actual or threatened infringement by a third party of the
Charles River Patent Rights or of any claim of invalidity, unenforceability, or
non-infringement of the Patent Rights.  CHARLES
RIVER shall have the sole responsibility to prosecute or defend such claims, as
applicable.  ACT shall if requested provide
reasonable assistance to CHARLES RIVER at CHARLES RIVER’s expense, in connection
with the prosecution or defense of such claims.

 

7.4                                 Joint Patent Rights.

 

(a)                                   Responsibility; Costs. ACT will retain primary responsibility for
filing, prosecution and maintenance of the Joint Patent Rights in all
countries, using patent counsel approved by CHARLES RIVER, which approval shall
not be unreasonably withheld or delayed.  The costs of such filing, prosecution and
maintenance shall be borne equally by CHARLES RIVER and ACT, except that
CHARLES RIVER will bear all of such costs in any countries where CHARLES RIVER
requests patent protection, but where ACT did not otherwise intend to seek
protection.  If either party fails to pay
its share of such costs with respect to any Joint Patent Rights, its license
from the other party under Section 3 with
respect to such Joint Patent Rights shall be automatically revoked, but the
license from such party to the other party with respect to such Joint Patent
Rights shall remain effective.

 

15

 

(b)                                  Consultation; Abandonment. CHARLES RIVER’s patent counsel shall be
given a reasonable opportunity to comment on all proposed patent filings (“Filings”)
and responses (“Responses”) to patent office actions or other patent office
communications (collectively, “Office Communications”) with respect to Joint
Patent Rights.  In the case of Filings,
and in the case of Office Communications to which ACT must respond in a period
of time equal to or exceeding sixty (60) days (including extensions), ACT shall
deliver its proposed Filing or Response to CHARLES RIVER for comment not later
than sixty (60) days prior to the final patent office deadline for such Filing
or Response, and ACT will not unreasonably refuse to accept any suggestions of
CHARLES RIVER’s patent counsel regarding such Filing or Response, provided that
CHARLES RIVER’s patent counsel provides such comments to ACT’s patent counsel
not less than thirty (30) days prior to the final patent office deadline for
such Filing or Response.  In the case of
Office Communications to which ACT must respond in less than sixty (60) days,
which deadline may not be extended, ACT shall deliver its proposed Response to
CHARLES RIVER for comment not later than ten (10) days after ACT’s receipt of
such Office Communication, and ACT will not unreasonably refuse to accept any
suggestions of CHARLES RIVER’s patent counsel regarding such Response, provided
that CHARLES RIVER’s patent counsel provides such comments to ACT’s patent
counsel not less than ten (10) days prior to the final patent office deadline
for such Response.  To the extent that
any such patent matter relates solely to the Charles River Field and not to the
ACT Field, CHARLES RIVER’s patent counsel will have the final right to
determine the resolution of the matter.  ACT
will not allow any patent or patent application within the Joint Patent Rights
to become expired or abandoned without giving CHARLES RIVER the right to assume
responsibility for such patent or patent application, and if CHARLES RIVER so
elects, ACT will assign such patent or patent application to CHARLES RIVER, and
CHARLES RIVER will thereafter assume control thereof and all expenses related
thereto.

 

(c)                                   Defense of Joint Patent Rights. CHARLES RIVER and ACT will consult with one
another in the event of a third party claim that a patent within the Joint
Patent Rights is invalid, unenforceable, or non-infringing.  ACT will have the first right to control the
defense of such claim at its expense, but CHARLES RIVER will have the right to
share in the control of the defense by sharing 50% of the costs thereof, but ACT shall have the final decision
in the event of a disagreement regarding the conduct of the defense.  If ACT elects not to defend, CHARLES RIVER may
do so at its expense and under its control, but shall have the right to offset
such expenses against royalties otherwise due to ACT.  Notwithstanding the foregoing, neither party will
enter into a settlement that admits the invalidity, unenforceability, or
non-infringement of any Joint Patent Rights without consent of the other party.

 

(d)                                  Prosecution of Infringers of Joint Patent
Rights. ACT shall have the
first right to prosecute infringers of the Joint Patent Rights in all Fields
other than the Charles River Field at its expense, and shall retain all
recoveries arising out of such prosecutions by ACT.  CHARLES RIVER shall have the right to
prosecute such infringers if ACT elects not to do so, at its expense, and shall
retain all recoveries arising out of such prosecutions by CHARLES RIVER.  CHARLES RIVER shall have the first right to
prosecute infringers of the Joint Patent Rights in the Charles River Field at
its expense, and shall retain all recoveries arising out of such prosecutions
by CHARLES RIVER.  ACT shall have the
right to prosecute such infringers if CHARLES RIVER elects not to do so, at its
expense, and shall retain all recoveries arising out of such prosecutions by
ACT.  Neither party will enter into a
settlement that admits the invalidity,

 

16

 

unenforceability,
or non-infringement of any Joint Patent Rights without consent of the other party.

 

7.5                                 Cooperation. CHARLES RIVER and ACT shall cooperate fully in the preparation,
filing, prosecution, and maintenance of all ACT Patent Rights and Joint Patent
Rights.  Such cooperation includes,
without limitation (i) promptly executing all papers and instruments or
requiring employees of ACT or CHARLES RIVER to execute such papers and
instruments as reasonable and appropriate so as to enable ACT or CHARLES RIVER
to file, prosecute and maintain such Patent Rights in any country; and (ii)
promptly informing the other party of matters that may affect the preparation,
filing, prosecution, or maintenance of any such Patent Rights (such as becoming
aware of an additional inventor who is not listed as an inventor in a patent
application).

 

8.                                    CONFIDENTIAL INFORMATION AND
PUBLICATIONS.

 

8.1.                             Use and Nondisclosure of Confidential
Information. (a) Neither
party or the University will disclose or make available to any person outside
its organization the disclosing party’s Confidential Information, except that
CHARLES RIVER will have the right to disclose ACT’s Confidential Information
consisting of ACT Technology to third parties to which sublicensing is
permitted under Section 3.l(b), provided that such third parties agree to be
bound to protect the confidentiality of such Confidential Information.  Each party may disclose the other party’s
Confidential Information to persons within its organization and that of its
Affiliates to the extent necessary to further the purposes of this Agreement,
provided that all such persons are bound to protect the confidentiality of such
Confidential Information.  Each party may
disclose the other party’s Confidential Information if required by law or
governmental authority, provided that prior notice of any such disclosure is
given to the other party and that the disclosing party cooperates with the
other party in seeking protective orders or other restrictions on disclosure.

 

(b) Except to the extent expressly authorized by this Agreement or by
other prior written consent by the disclosing party, each party shall during
the term of this Agreement and thereafter: (i) treat as confidential all
Confidential Information of the other party; (ii) not use such Confidential
Information except as authorized herein or otherwise authorized in writing,
(iii) implement reasonable procedures to prohibit the disclosure, unauthorized
duplication, misuse or removal of the other party’s Confidential Information;
(iv) not disclose such Confidential Information to any third party, and (v)
only disclose the Confidential Information to those of its employees who have
need to know such Confidential Information in order to exercise the rights and
fulfill the obligations set forth herein.  Without limiting the foregoing, each of the
parties shall protect the Confidential Information using at least the same
procedures and degree of care that it uses to prevent the disclosure of its own
confidential information of like importance, but in no event less than
reasonable care.  Each party shall return
the Confidential Information to the other party upon termination of the
Agreement or upon the request of the other party.  Except as expressly provided in this
Agreement, no ownership or license right is granted in any Confidential
Information.

 

8.2                             Injunctive Relief. The parties acknowledge and agree that any
breach of the confidentiality obligations imposed by this Section 8 will
constitute immediate and irreparable

 

17

 

harm to the party disclosing
the Confidential Information and/or its successors and assigns, which cannot
adequately and fully be compensated by money damages and will warrant, in
addition to all other rights and remedies afforded by law, injunctive relief,
specific performance, and/or other equitable relief.  The disclosing party’s rights and remedies
hereunder are cumulative and not exclusive.  The disclosing party shall also be entitled to
receive from the receiving party the costs of enforcing this Section 80, including
reasonable attorneys’ fees and expenses of litigation.

 

8.3                                Survival. The obligations of the parties under this Section 8 shall survive any
expiration or termination of this Agreement.

 

9.                                     REPRESENTATIONS AND WARRANTIES.

 

9.1                                 Representations and Warranties by ACT. ACT represents and warrants to CHARLES
RIVER that:

 

(a)                                  ACT owns or has a licensable interest in the
ACT Licensed Property and has the right to grant to CHARLES RIVER the license
set forth above;

 

(b)                                 ACT has provided CHARLES RIVER with a copy of
the UMASS License, as amended, with certain terms redacted, and ACT represents
and warrants that the said copy is a true and complete (except as redacted)
copy of the UMASS License as of the Effective Date; and

 

(c)                                  the execution of this Agreement and
performance of the transactions contemplated by such agreements have been
approved by the ACT Board of Directors and will not conflict with or result in
any breach of any of the terms, conditions or provisions of, or constitute a
default under, any agreement to which ACT is a party or by which ACT is bound.

 

9.2                                 Representation and Warranty by CHARLES RIVER. CHARLES RIVER represents and warrants to
ACT that:

 

(a)                                 CHARLES RIVER owns or has a licensable
interest in the Charles River Licensed Property and has the right to grant to
ACT the license set forth above; and

 

(b)                                the execution of this Agreement and
performance of the transactions contemplated by such agreements have been
approved by the Charles River Board of Directors and will not conflict with or
result in any breach of any of the terms, conditions or provisions of, or
constitute a default under, any agreement to which CHARLES RIVER is a party or
by which CHARLES RIVER is bound.

 

9.3                                 Disclaimer. ACT does not make any representation or warranty as to the validity or
scope of the ACT Licensed Property, nor does ACT make any representation or
warranty that the exercise of the rights granted to CHARLES RIVER with respect
to the ACT Licensed Property will not infringe the patent or other intellectual
property rights of any third party.

 

18

 

10.                             INDEMNIFICATION.

 

10.1                         Indemnification by ACT. ACT agrees to defend, indemnify and hold
harmless CHARLES RIVER and the University, and their Affiliates, agents, directors,
officers and employees, at ACT’s cost and expense, from and against any and all
losses, costs, liabilities, damages, fees and expenses, including reasonable
attorneys’ fees and expenses with respect to claims by third parties arising
out of any breach by ACT of any representation or warranty contained in Section
9.

 

10.2                         Indemnification by CHARLES RIVER. CHARLES RIVER agrees to defend, indemnify
and hold harmless ACT and the University, and their Affiliates, agents,
directors, officers and employees, at CHARLES RIVER’s cost and expense, from
and against any and all losses, costs, liabilities, damages, fees and expenses,
including reasonable attorneys’ fees and expenses incurred or imposed upon any
of the indemnified parties in connection with any claims (including third party
claims), suits, actions, demands or judgments:

 

(a)                                arising out of any breach by CHARLES RIVER of
any representation or warranty contained in Section 9; or

 

(b)                               arising out of the death or injury to any
person or persons or out of any damage to property resulting from or otherwise
attributable to the making, using, development, testing, registration,
distribution and/or sale by or through CHARLES RIVER of any Licensed Products
or Licensed Services under this Agreement, but excepting any claims that the
ACT Licensed Property infringes the patent or other intellectual property
rights of any third party.

 

10.3                         Indemnification Claims. Each party shall give the other party
prompt notice of any claim for which indemnification under this Section 10 is
or may be applicable and will cooperate with the indemnifying party in the
defense or settlement of such claim at the indemnifying party’s expense.  The indemnifying party shall be required to
provide and be entitled to control the defense of any claim covered hereunder
(including the right to settle it at the sole discretion of the indemnifying
party) with counsel reasonably satisfactory to the other party which may, at
its own expense, participate in the defense of any claim after the indemnifying
party assumes control of the defense thereof.  The indemnification obligations in this
Section 10 shall not apply to amounts paid in settlement of such claim if such
settlement is effected without the consent of the indemnifying party, which
consent shall not be unreasonably withheld or delayed.  The failure of the indemnified party to
deliver notice to the indemnifying party promptly after the commencement of any
such action, if prejudicial to the indemnifying party’s ability to defend such
action, shall relieve the indemnifying party of any liability to the indemnified
party under this Section 10, but the failure to promptly deliver notice to the indemnifying
party will not relieve it of any liability that it may have to the indemnified
party other than under this Section 10.

 

11.                             LIMITATION OF LIABILITY.  IN NO
EVENT SHALL EITHER PARTY (OR ITS AFFILIATES, SHAREHOLDERS, DIRECTORS, OFFICERS,
EMPLOYEES, OR AGENTS) BE LIABLE FOR ANY SPECIAL, INDIRECT, RELIANCE,
INCIDENTAL, EXEMPLARY, COVER, OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF
PROFITS AND

 

19

 

GOODWILL, EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, REGARDLESS OF THE
THEORY OF LIABILITY.

 

12.                              INSURANCE.  Each party
shall obtain and maintain, at all times during the term of this Agreement,
general liability insurance with appropriate bodily injury, death and property
damage limits.  Upon request, a party
shall furnish a certificate of insurance signed by an authorized representative
of its insurance underwriter evidencing such coverage and providing for at
least thirty (30) days’ prior written notice of any cancellation, termination
or reduction of coverage.

 

13.                              MISCELLANEOUS.

 

13.1                        Assignment.
This Agreement, and the rights and obligations thereunder, may not be assigned
or transferred, in whole or in part, by either party without the prior written
consent of the other party, except that (a) either party may assign this
Agreement to an Affiliate, provided that such party remains primarily liable
and/or responsible for the performance of such obligations, and provided
further that such Affiliate agrees to be bound to the terms and conditions of
this Agreement, and (b) either party may assign this agreement in connection
with the merger, consolidation or sale of all or substantially all of the
assets of such party which pertain to the subject matter of this Agreement.

 

13.2                        Notices.
Any payment, notice or other communication required or otherwise given pursuant
to this Agreement shall be in writing and delivered by hand or sent by
nationally recognized overnight delivery service, prepaid registered or
certified air mail, or by facsimile confirmed by prepaid first class,
registered or certified mail letter, and shall be deemed to have been properly
served to the addressee upon receipt of such written communication.

 

Addresses: In the
case of CHARLES RIVER, the proper address for communications shall be:

 

	
   

  	
  Charles River Laboratories, Inc.

  
	
   

  	
  251 Ballardvale Street

  
	
   

  	
  Wilmington, Massachusetts 01887

  
	
   

  	
  Attn:

  	
  Dennis Shaughnessy, Esq., Senior Vice President,

  
	
   

  	
   

  	
  Corporate Development, General Counsel and Secretary

  
	
   

  	
  Fax:

  	
  978-658-7132

  

 

and in the case of ACT,
the proper address for communications and all payments shall be:

 

	
   

  	
  Advanced Cell Technology, Inc.

  
	
   

  	
  One Innovation Drive

  
	
   

  	
  Worcester, Massachusetts 01605

  
	
   

  	
  Attn:

  	
  Michael D. West, Ph.D., President

  
	
   

  	
  Fax:

  	
  508-756-0931

  

 

20

 

 

	
  with a copy to:

  
	
   

  
	
   

  	
  Pierce Atwood

  
	
   

  	
  One Monument Square

  
	
   

  	
  Portland, Maine 04101

  
	
   

  	
  Attn: William L. Worden, Esq.

  
	
   

  	
  Fax:   207-791-1350

  

 

13.3                           Choice
of Law. This Agreement is subject to and governed by the laws of the Commonwealth
of Massachusetts, without regard to principles of conflicts of law thereof,
except that questions affecting the construction and effect of any patent shall
be determined by the law of the country in which the patent was granted.

 

13.4                           Dispute
Resolution. Any dispute arising under this Agreement which is not promptly
settled by the parties shall be referred to the Chief Executive Officers of the
parties.  The Chief Executive Officers
will meet for negotiations within fifteen (15) days of such referral.  If the dispute has not been resolved within
thirty (30) days (which period may be extended by mutual agreement), subject to
any rights to injunctive relief and unless otherwise specifically provided for
herein, any dispute will be submitted to binding arbitration.  The arbitration shall be conducted before a
single arbitrator in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (AAA), which shall administer the arbitration and act
as appointing authority.  The arbitration
shall take place in Boston, Massachusetts, and shall be the exclusive forum for
resolving such dispute, controversy or claim.  The decision of the arbitrator shall be final
and binding upon the parties.  Notwithstanding
anything contained above to the contrary, each party shall have the right to
institute judicial proceedings against the other party in order to enforce the
instituting party’s rights hereunder through specific performance, injunction or
similar equitable relief.

 

13.5                           Compliance
with Law by CHARLES RIVER. CHARLES RIVER shall comply with all local,
state, federal and international laws and regulations relating to the
development, manufacture, use, and sale of Licensed Products and Licensed
Services.  CHARLES RIVER shall comply
with the following:

 

(a)                                CHARLES
RIVER shall obtain all necessary approvals from the FDA and any similar governmental
authorities of any foreign jurisdiction in which CHARLES RIVER intends to make,
use, or sell Licensed Products or to perform Licensed Services.

 

(b)                               CHARLES
RIVER shall comply with all United States laws and regulations controlling the
export of certain commodities and technical data, including without limitation
all Export Administration Regulations of the United States Department of
Commerce.  Among other things, these laws
and regulations prohibit, or require a license for, the export of certain types
of commodities and technical data to specified countries.  CHARLES RIVER hereby gives written assurance
that it will comply with all United States export control laws and regulations,
that it bears sole responsibility for any violation of such laws and
regulations, and that it will indemnify, defend, and hold ACT harmless (in
accordance with Section 10.2) for the consequences of any such violation.

 

21

 

(c)                                 To
the extent that any invention claimed in the Licensed Property has been
partially funded by the United States government, and only to the extent
required by applicable laws and regulations, CHARLES RIVER agrees that any
Licensed Products used or sold in the United States will be manufactured
substantially in the United States or its territories.  Current law provides that if domestic
manufacture is not commercially feasible under the circumstances, ACT and/or
the University may seek a waiver of this requirement from the relevant federal
agency on behalf of CHARLES RIVER and, upon CHARLES RIVER’s request, shall
cooperate with CHARLES RIVER in seeking such a waiver.

 

13.6                         No
Encumbrances. CHARLES RIVER will not create or incur or cause to be incurred
or to exist any lien, encumbrance, mortgage, pledge, charge, restriction or
other security interest of any kind upon the ACT Licensed Property without the
prior written consent of the University and ACT.

 

13.7                         Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original but all of which together shall constitute one and
the same instrument.

 

13.8                         Headings.
All headings contained in this Agreement are for convenience of reference only
and shall not be considered in construing this Agreement.

 

13.9                         Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the
parties and their respective permitted successors and assigns.  The parties acknowledge that the University is
a third party beneficiary of the applicable provisions of Sections 3.1, 4.2(a),
6.4(c), 7.2, 10.1, 10.2, 13.5(c), 13.6, 13.9, and 13.13 hereof, with the right
to enforce such provisions against the applicable party.

 

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

 

13.11                   Severability.
In the event that any one or more of the provisions contained in this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Agreement, and all other provisions shall remain in
full force and effect.  If any of the
provisions of this Agreement is held to be excessively broad or invalid,
illegal or unenforceable in any jurisdiction, it shall be reformed and
construed by limiting and reducing it so as to be enforceable to the maximum
extent permitted by law in conformance with its original intent.

 

13.12               Entire
Agreement. This Agreement, together with the UMASS License, constitute the
entire agreement of the parties with regard to its subject matter, and
supersedes all previous written or oral representations, agreements and
understandings between the parties.  The parties
acknowledge and agree that there are no representations, warranties,
arrangements, promises or agreements outstanding between them, whether oral or
in writing, other than those contained or referred to in this Agreement or the
UMASS License.

 

22

 

13.13                   Publicity.
Neither party, nor any of its Affiliates, shall originate any publicity, news
release or other public announcement (“Announcements”), written or oral,
relating to this Agreement or the existence of an arrangement between the
parties, without the prior written approval of the other party, which approval
shall not be unreasonably withheld, except as otherwise required by law.  Any references to the University in such
Announcements shall be subject to the approval of the University.  The foregoing notwithstanding, ACT and CHARLES
RIVER shall have the right to make such Announcements without the consent of
the other party or the University, as applicable, in any prospectus, offering
memorandum, or other document or filing required by securities laws or other
applicable law or regulation, provided that such party shall have given the
other party or the University, as applicable, at least ten (10) days’ prior written
notice of the proposed text for the purpose of giving the other party or the
University, as applicable, the opportunity to comment on such text.

 

13.14                   No
Implied Licenses. No implied licenses are granted pursuant to the terms of this
Agreement.  No license rights shall be
created by implication or estoppel.

 

13.15                  No
Agency. Nothing herein shall be deemed to constitute either party as the
agent or representative of the other party, or both parties as joint venturers
or partners for any purpose.  Each party
shall be an independent contractor, not an employee or partner of the other
party, and the manner in which each party renders its services under this
Agreement shall be within its sole discretion.  Neither party shall be responsible for the
acts or omissions of the other party, and neither party will have authority to
speak for, represent or obligate the other party in any way without prior
written authority from the other party.

 

13.16                 Non-Solicitation.
During the term of this Agreement and for a period of one (1) year thereafter,
neither party may.  solicit any person
who is employed by or a consultant to the other party or any Affiliate of such
party to terminate such person’s employment by or consultancy to such party or
such Affiliate.  As used herein, the term
“solicit” shall include, without limitation, requesting, encouraging, assisting
or causing, directly or indirectly, any such employee or consultant to
terminate such person’s employment with or consultancy to such party or
Affiliate.

 

13.17                 Product
Marking. To the extent commercially feasible and permitted by law, and consistent
with prevailing business practices, all Licensed Products (or the packaging or
product label of such Licensed Product(s))manufactured or sold by or through
CHARLES RIVER under this Agreement will be marked with the number of each
issued patent that applies to such product.

 

23

 

IN
WITNESS WHEREOF, the parties hereto and the University
have caused this Agreement to be executed the day and year first written above.
 The persons signing below warrant their
authority to sign the Agreement.

 

	
  ADVANCED CELL TECHNOLOGY, INC.

  	
  CHARLES RIVER LABORATORIES

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Michael West

  	
   

  	
  By:

  	
    /s/ Dennis R. Shaughnessy

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
    Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    MICHAEL WEST

  	
   

  	
   

  	
    Dennis R. Shaughnessy

  	
   

  
	
   

  	
  Printed
  Name

  	
   

  	
   

  	
    Printed
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    PRES & CEO

  	
   

  	
   

  	
    Senior Vice President

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
    Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    6-30-01

  	
   

  	
   

  	
    June 29, 2001

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  	
    Date

  	
   

  

 

CONSENT AND AGREEMENT

 

For value received, the University hereby (a) consents to the
sublicense by ACT to CHARLES RIVER of the UMASS Patent Rights under this
Agreement, and (b) agrees to be bound by the applicable provisions of Sections
3.1, 4.2(a), 6.4(c), 8.1, and 13.5 hereof.

 

THE UNIVERSITY OF
MASSACHUSETTS

 

 

	
  By:

  	
    /s/ William S. Rosenberg

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    William S. Rosenberg, Ph.D.

  	
   

  
	
   

  	
  Printed
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    Deputy Executive Director, CVIP

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    July 2, 2001

  	
   

  
	
   

  	
  Date

  	
   

  

 

24Exhibit
10.9

 

NONEXCLUSIVE
SUBLICENSE AGREEMENT

 

between

 

CYAGRA,
INC.,

 

ADVANCED
CELL TECHNOLOGY, INC.,

 

A.C.T.
GROUP, INC.

 

and

 

GOYAIKE,
S.A.

 

This Nonexclusive Sublicense Agreement (the “Agreement”)
is made and entered into as of this 20th day of November,
2001 (the “Effective Date”) by and between Cyagra, Inc., a Delaware
corporation with a place of business at One Innovation Drive, Worcester,
Massachusetts 01605 (“CYAGRA”), Advanced Cell Technology, Inc., a Delaware
corporation with a place of business at One Innovation Drive, Worcester,
Massachusetts 01605 (“ACT INC”), A.C.T. Group, Inc., a Delaware
corporation with a place of business at One Innovation Drive, Worcester,
Massachusetts 01605(“ACT GROUP,” together with CYAGRA, ACT INC and respective
current and future Affiliates, the “Licensors”) and Goyaike, S.A., an Argentina
corporation with a place of business at Av, do Mayo 701, Piso 16, 1084 Buenos
Aires, Argentina (“GOYAIKE,” together with Licensors, the “parties”).  As set forth below, the University of
Massachusetts (the “University”) has agreed to be bound by certain provisions
of this Agreement.

 

RECITALS

 

WHEREAS, Licensors own or have licensed with
a sublicensable interest the CYAGRA Patent Rights and the CYAGRA Technology (as
defined below), which includes certain scientific methods and techniques for
cloning animals that may be valuable in the Field of Agriculture (as defined
below);

 

WHEREAS, GOYAIKE desires to obtain a
non-exclusive license and sublicense from the Licensors under the CYAGRA
Patents Rights and the CYAGRA Technology to use the CYAGRA Patent Rights and
the CYAGRA Technology for the purpose of developing and selling certain
products and performing certain services in the Field of Agriculture;

 

WHEREAS, Licensors are willing to grant such
a license and sublicense to GOYAIKE upon the terms and conditions set forth
below;

 

WHEREAS, the sublicense of ACT INC’s and
CYAGRA’s rights under the UMASS Rights (as defined below) to GOYAIKE under this
Agreement shall be subject to the relevant terms of the UMASS License (as
defined below);

 

 

WHEREAS, the sublicense of ACT INC’s and
CYAGRA’s rights under the TUFTS Rights (as defined below) to GOYAIKE under this
Agreement shall be subject to the relevant terms of the TUFTS License (as
defined below); and

 

WHEREAS, the sublicense of ACT GROUP’s rights
under the LIU Rights (as defined below) to GOYAIKE under this Agreement shall
be subject to the relevant terms of the LIU License (as defined below).

 

NOW THEREFORE, in consideration of the mutual
covenants, agreements, representations, and warranties contained in this
Agreement, and other good and valuable consideration, the adequacy and receipt
of which is hereby acknowledged, Licensors and GOYAIKE agree as follows:

 

1.                                      DEFINITIONS.  As used
in this Agreement, the following terms shall have the meanings set forth below.

 

1.1                                 “Affiliate” means any corporation, company,
partnership, joint venture and/or firm which controls, in whatever country
organized, that is controlled by or is under common control with a party.  For purposes of this definition, “control”
means (a) in the case of corporate entities, direct or indirect ownership
of more than fifty percent (50%) of the stock or shares entitled to vote for
the election of directors; and (b) in the case of non-corporate entities,
direct or indirect ownership of more than fifty percent (50%) of the equity
interest with the power to direct the management and policies of such
noncorporate entities.

 

1.2                                 “Confidential
Information” includes,
without limitation, any scientific, technical, financial, customer, trade
business or other information disclosed by one party to the other, or by GOYAIKE
to the University, whether directly or through CYAGRA, which is specifically designated
by the disclosing party as confidential or proprietary, or which, under all of
the given circumstances, ought reasonably to be treated as confidential
information of the disclosing party; provided, however, that the University’s
obligation to treat information disclosed to the University as confidential
shall be limited to information which is specifically designated by the disclosing
party as confidential or proprietary or words of similar import.  Such information may be disclosed in oral,
visual or written form (including magnetic, optical or other media).  Each party’s Confidential Information
specifically includes without limitation the respective party’s business plans
and business practices, the terms of this Agreement, scientific knowledge, research
and development or know-how, processes, inventions, techniques, formulae,
products and product plans, business operations, customer requirements,
designs, sketches, photographs, drawings, specifications, reports, studies,
findings, data, plans or other records, biological materials, software,
margins, payment terms and sales forecasts, volumes and activities, designs, computer
code, technical information, costs, pricing, financing, business opportunities,
personnel, and information of CYAGRA or GOYAIKE, as applicable, relating to the
CYAGRA Licensed Property or Licensed Products or Licensed Services.  Confidential Information does not include
information which (a) was known to the receiving party at the time it was
disclosed, other than by previous disclosure by the disclosing party, as
evidenced by the written records of the receiving party at the time of
disclosure; (b) is at the time of disclosure or later becomes publicly
known other than through a breach of this Agreement; (c) is lawfully and
in good faith made available to the receiving party by a third party who, to
the receiving party’s knowledge

 

2

 

after inquiry,
did not derive it from the disclosing party and who imposed no obligation of
confidence on the receiving party; or (d) is developed by the receiving
party independent of any disclosure by the disclosing party, as evidenced by
the written records of the receiving party.

 

1.3                                 “CYAGRA Developments” means the following that are
conceived, discovered, invented, developed, created, made, reduced to practice
by, acquired by or licensed to Licensors during the term of this Agreement and
which are related, useful, necessary or required to develop or manufacture
cloned, transgenic, non-human animals, and the cells and tissues from those animals,
excluding avian and equine species; discoveries, inventions, developments,
patents, patent applications and patent rights, know-how (including know-how
related to the production of cloned transgenic cattle, goats, sheep, pigs and
any other future transgenic non-human animal, and the cells and tissues from
those animals, excluding avian and equine species), materials, trade secrets,
ideas, designs, drawings, techniques, methodologies, processes, modifications, innovations,
improvements, writings, documentation, data and other rights (whether or not protectible
under United States or foreign patent, copyright or similar laws), but
excluding any such rights or technology that are hereafter acquired by
Licensors subject to a restriction that would prevent or prohibit the licensing
thereof to GOYAIKE: provided, however, that Licensors agree that (a) Licensors
shall exercise reasonable efforts to avoid any such restrictions in any future
acquisition of such rights or technology and (b) Licensors shall notify
GOYAIKE in writing prior to entering into such restrictions.

 

1.4                                 “CYAGRA Licensed
Property” means the
CYAGRA Patent Rights, CYAGRA Developments and the CYAGRA Technology.

 

1.5                                 “CYAGRA Patent Rights” means all patents and patent
applications which are owned or controlled by or licensed to Licensors which
are related, useful, necessary or required to develop or manufacture cloned,
transgenic, non-human animals, excluding avian and equine species, and the
cells and tissues from those animals, including, but not limited to, the
patents and patent applications identified on Schedule A attached hereto
and the rights thereunder, all divisionals, continuations,
continuations-in-part, reissues, reexaminations, extensions, substitutions, and
foreign counterparts thereof.  The
parties agree that Schedule A may from time to time be amended after the
Effective Date to reflect updates thereto.

 

1.6                                 “CYAGRA Technology” means the following which are owned or controlled by or
licensed to Licensors which are related, useful, necessary or required to
develop or manufacture cloned, transgenic, non-human animals and the cells and
tissues from those animals, excluding avian and equine species: confidential
information, knowledge and data, including but not limited to, inventions,
trade secrets, ideas, designs, drawings, know-how (including know-how related
to the production of cloned transgenic cattle, goats, sheep, pigs and any other
future transgenic non-human animal, and the cells and tissues from those
animals, excluding avian and equine species), materials, processes, techniques,
methodologies, like technological information and other rights (whether or not
protectible under United States or foreign patent, copyright or similar laws).

 

1.7                                 “Field of Agriculture” means the production of food or
fiber, and rendering of services or uses that relate to the production of such
products.  Specifically excluded from the
Field of Agriculture are all purposes related to medical therapies, including,
but not limited to,

 

3

 

the production
of biopharmaceutical agents, proteins, peptides and polypeptides in milk for
pharmaceutical, nutraceutical or other use.

 

1.8                                 “Licensed Product” means any product that (i) cannot be developed, manufactured,
used, or sold without infringing one or more Valid Claims under the CYAGRA Patent
Rights, or (ii) uses or incorporates some portion of the CYAGRA Technology
or the CYAGRA Developments.  Without
limiting the generality of the foregoing, and by way of illustration but not
limitation, Licensed Products include cloned cattle, goats, sheep and pigs in the
Field of Agriculture, the progeny of such animals and semen, ova or embryos
obtained from such animals.

 

1.9                                 “Licensed Service” means any service that (i) cannot be developed or
performed without using at least one process, method or use that infringes one
or more Valid Claims under the CYAGRA Patent Rights or (ii) uses some
portion of the CYAGRA Technology or the CYAGRA Developments.

 

1.10                           “LIU License” means the “Terms for Exclusive License Agreement” between ACT
GROUP and Dr. Chengyu Liu dated December 20, 2000.

 

1.11                           “LIU Rights”
means CYAGRA Patent Rights and CYAGRA Technology that are owned or controlled
by or licensed to, or become owned or controlled by or licensed to ACT GROUP
under the LIU License.

 

1.12                           “Net Sales” means the total invoice price earned on all sales by GOYAIKE
(or by any third party on behalf of GOYAIKE) of Licensed Products and/or
Licensed Services in any country in the Territory after deducting, to the
extent not already deducted, normal and customary trade, dealer, quantity, and
cash discounts actually allowed; allowances for credits granted on account of
rejections, returns, or price reductions; governmental sales taxes and other
charges imposed on such sales; and freight, insurance, customs, duties, and
other landing charges.  In the event any
product is sold as a component of a combination of functional elements, net
sales price for purposes of determining royalty payments on such combination
shall be calculated by multiplying the average per unit net sales price of the
Licensed Product portion of the combination when sold separately in the
applicable country in the Territory during the accounting period in which the
sale was made by the number of units of product sold as part of such
combination product.  In addition, Net
Sales shall include the amount of any milestone payment received based on the
performance of GOYAIKE in connection with the development of Licensed Products
and/or Licensed Services.

 

In any transfers of Licensed Products between
GOYAIKE and an Affiliate, Net Sales shall be calculated based on the final sale
of the Licensed Product to an independent third party by such Affiliates.  In the event that GOYAIKE or an Affiliate or
Sublicensee receives non-monetary consideration for any Licensed Products or
Licensed Services, Net Sales shall be calculated based on the fair market value
of such consideration.  In the event that
GOYAIKE or its Affiliates or Sublicensees use or dispose of a Licensed Product
in the provision of a commercial service other than a Licensed Service, the
Licensed Product shall be considered sold and the Net Sales shall be calculated
based on the sales price of the Licensed Product to an independent third party
or, in the absence of such sales, on the fair market value of the Licensed

 

4

 

Product as
determined by the parties in good faith.

 

1.13                           “Territory” means the countries and jurisdictions located in South America.

 

1.14                           “TUFTS License” means the License Agreement between CYAGRA’s parent ACT INC and
Tufts University dated May 31, 2001.

 

1.15                           “TUFTS Rights” means Cyagra Patent Rights and CYAGRA Technology that are owned
or controlled by or licensed to, or become owned or controlled by or licensed
to ACT INC (and as an “Affiliate” of ACT INC under the TUFTS License, to
CYAGRA) from Tufts University under the TUFTS License.

 

1.16                           “UMASS License” means the Exclusive License Agreement between CYAGRA’s parent
ACT INC and the University dated April 16, 1996, as amended by the
Amendment to Exclusive License Agreement dated September 1, 1997 and the
Second Amendment to Exclusive License Agreement dated May 31, 2000.

 

1.17                           “UMASS Rights” means CYAGRA Patent Rights and CYAGRA Technology that are owned
or controlled by or licensed to, or become owned or controlled by or licensed
to ACT INC (and, as an “Affiliate” of ACT INC under the UMASS License, to
CYAGRA) from the University under the UMASS License.

 

1.18                           “Valid Claim” means a claim of an issued patent which has not expired, lapsed
or become abandoned or declared invalid or unenforceable by a court of
competent jurisdiction or an administrative agency from which no appeal can be
or has been taken within the time allowed for that appeal.

 

The use herein of the plural shall include
the singular and vice versa and the use of the masculine shall
include the feminine.  Additional terms
may be defined throughout this Agreement.

 

2.                                      GRANT OF RIGHTS.

 

2.1                                 (a) License
Grant. (1) Subject to the terms of this Agreement, the Licensors
hereby grant to GOYAIKE a nonexclusive, royalty-bearing, perpetual license
under its rights in the CYAGRA Licensed Property to develop, make, have made,
import, export (to countries or territories located within the Territory), use
and sell Licensed Products in the Territory in the Field of Agriculture and to
develop and perform Licensed Services in the Territory in the Field of
Agriculture.  The parties acknowledge,
understand and agree that the license granted herein does not include the right
to grant further sublicenses to or under the CYAGRA Licensed Property; provided,
however, GOYAIKE shall have the right to grant a sublicense to a third
party to develop and manufacture the Licensed Products and to develop and
perform Licensed Services on behalf of GOYAIKE.  The parties further acknowledge, understand
and agree that purchasers (i.e., end users) of Licensed Products shall
have the right to use the Licensed Products.

 

(2)                                  To
the extent the license granted in 2.1(a) above includes a sublicense of

 

5

 

any UMASS
Rights, such sublicense is subject to the relevant terms of the UMASS License
as it may be amended from time to time, provided  that (i) as
provided in Section 2.1(b) below, the UMASS License may not be
amended in a manner that materially and adversely affects the rights and
benefits extended to GOYAIKE hereunder without the prior written consent of
GOYAIKE and (ii) in the event of any inconsistency between the UMASS
License and Section 2.1(b) hereof, Section 2.1(b) hereof
shall govern.  Licensors agree to provide
GOYAIKE with prior written notice of any amendments to the UMASS License.

 

(3)                                  To
the extent the license granted in 2.1(a) above includes a sublicense of any
TUFTS Rights, such sublicense is subject to the relevant terms of the TUFTS
License as it may be amended from time to time, provided that the TUFTS License
may not be amended in a manner that materially and adversely affects the rights
and benefits extended to GOYAIKE hereunder without the prior written consent of
GOYAIKE.

 

(4)                                  To
the extent the license granted in 2.1(a) above includes a sublicense of any
LIU Rights, such sublicense is subject to the relevant terms of the LIU License
as it may be amended from time to time, provided that the LIU License may not
be amended in a manner that materially and adversely affects the rights and
benefits extended to GOYAIKE hereunder without the prior written consent of
GOYAIKE.

 

(b) The UMASS License. GOYAIKE
acknowledges that portions of the CYAGRA Licensed Property licensed to GOYAIKE
hereunder are owned by the University and are licensed to CYAGRA and ACT INC
under the UMASS License.  Licensors and
the University represent and warrant to GOYAIKE and GOYAIKE agrees that, in the
event CYAGRA ceases to be an “Affiliate” of ACT INC as that term is defined in
the UMASS License, (i) GOYAIKE will thereafter make any payments due to
CYAGRA directly to ACT INC, and (ii) promptly following such change in
status of CYAGRA under the UMASS License, the parties will amend this Agreement
to reflect ACT INC’s status as the sole sublicensor of the UMASS Rights
hereunder.  CYAGRA, ACT INC and the
University further represent and warrant to GOYAIKE, and GOYAIKE agrees that,
in the event the UMASS License is terminated for any reason pursuant to the
provisions of the UMASS License, (i) GOYAIKE will thereafter make any
payments due to CYAGRA directly to the University during the Term of this
Agreement, and (ii) promptly following such termination of the UMASS
License, Licensors, GOYAIKE and the University shall take all necessary steps
for GOYAIKE to directly license the CYAGRA Licensed Property from the
University in a license agreement that reflects the applicable terms of this
Agreement and the UMASS License.  Licensors
acknowledge that any payments so made by GOYAIKE to the University shall be
credited against any payments due and payable to CYAGRA hereunder.  For the avoidance of doubt, CYAGRA, ACT INC and
the University agree that the references to “Sublicensees” in Section 8.5
of the UMASS License shall not apply to GOYAIKE and shall not be construed as
vitiating the provisions of this Section 2.1(b), CYAGRA, ACT INC and the
University agree that the provisions of Section 2.2 of the UMASS Agreement
providing for the automatic assignment to the University of sublicensees
granted by CYAGRA under said Section 2.2 shall not apply to the sublicense
by CYAGRA to GOYAIKE under this Agreement, and that the provisions of this Section 2.1(b) shall
govern in the event that CYAGRA ceases to be an “Affiliate” of ACT INC (as that
term is defined in the UMASS License) or the UMASS License is terminated.  CYAGRA, ACT INC and the University agree that
GOYAIKE will not be bound by any amendment to the UMASS License

 

6

 

that adversely
affects GOYAIKE’s rights under this Agreement in any material respect, unless
GOYAIKE agrees in writing to such amendment.

 

(c) The TUFTS License. GOYAIKE
acknowledges that portions of the CYAGRA Licensed Property licensed to GOYAIKE
hereunder are owned by TUFTS University and are licensed to CYAGRA and ACT INC
under the TUFTS License.  ACT INC and
CYAGRA represent and warrant to GOYAIKE and GOYAIKE agrees that, in the event
CYAGRA ceases to be an “Affiliate” of ACT INC as that term is defined in the
TUFTS License, (i) GOYAIKE will thereafter, subject to Section 2.1(c)(ii),
make any payments due to CYAGRA directly to ACT INC, and (ii) promptly
following such change in status of CYAGRA under the TUFTS License, the parties
will amend this Agreement to reflect ACT INC’s status as the sole sublicensor
of the TUFTS Rights hereunder.  GOYAIKE
acknowledges and understands that in the event the TUFTS License is terminated
pursuant to the provisions of the TUFTS License, GOYAIKE’s sublicense of the
TUFTS Rights shall, at the option of Tufts University, terminate or be assigned
to Tufts University pursuant to the terms and conditions of the TUFTS License.

 

2.2                                 CYAGRA
Developments. Licensors agree, on a periodic basis (not less than semi
annually) during the term of this Agreement, to provide to GOYAIKE a written
report of all CYAGRA Developments, provided that such reports shall be deemed
Confidential Information subject to the provisions of Section 7 of this
Agreement, and all such CYAGRA Developments, whether or not patentable, related
to the Field of Agriculture, are and shall be considered CYAGRA Licensed
Property and automatically licensed to GOYAIKE pursuant to Section 2.1(a).

 

2.3                                 Technology
Training. (a) In connection with the license granted in Section 2.1(a)
above, CYAGRA agrees that it will, promptly after the Effective Date of this
Agreement, provide GOYAIKE with all information, data and training relating to
the CYAGRA Licensed Property as may be reasonably necessary to allow GOYAIKE to
exploit said license.  Training (the “Technology
Training Program”) will be provided to GOYAIKE as follows: (1) Two GOYAIKE
scientists will visit CYAGRA’s facilities in Worcester, Massachusetts, USA, for
up to six weeks at a time mutually agreed upon by the parties, for training in
the use of the CYAGRA Licensed Property.  Travel and lodging (including meals and local
transportation) expenses incurred by the GOYAIKE scientists will be paid by
GOYAIKE; the costs associated with the training of the scientists will be paid
by CYAGRA. (2) Subsequent to the training described in (1) above, and
at a time mutually agreed upon by the parties, at least one CYAGRA scientist or
technician trained in the field of nuclear transfer (expected to be Dr. Cibelli)
will spend up to two weeks at GOYAIKE’s facilities to complete training of
GOYAIKE personnel in the use of the CYAGRA Licensed Property.  Travel, lodging and all other reasonable expenses
incurred by the CYAGRA scientist or technician in connection with providing the
training will be paid by GOYAIKE. (3) GOYAIKE agrees that it will,
consistent with the technical advice of CYAGRA’s scientists and technicians,
upgrade its laboratory facilities to permit the practice of the CYAGRA Licensed
Property. It is anticipated that the upgrade of GOYAIKE’s laboratory facilities
will include at a minimum the purchase of two micro-manipulator microscopes.

 

(b) The Technology Training Program will
be completed upon completion of the foregoing.  CYAGRA agrees, however, to continue to provide
reasonable additional training to GOYAIKE personnel at GOYAIKE’s expense, from
time to time in the United States or at

 

7

 

GOYAIKE’s
facilities as mutually agreed upon by the parties, subject to CYAGRA’s prior
business needs and obligations, in connection with GOYAIKE’s use of the CYAGRA
Technology.

 

3.                                      OBLIGATIONS RELATING TO COMMERCIALIZATION.

 

3.1                                 GOYAIKE
Diligence Requirements. GOYAIKE shall use reasonable efforts to develop
Licensed Products or Licensed Services and to introduce Licensed Products or
Licensed Services into the commercial market; thereafter, GOYAIKE shall make
Licensed Products or Licensed Services reasonably available to the public.

 

3.2                                 Summary
Reports by GOYAIKE. GOYAIKE shall maintain complete and accurate records of
Licensed Products and Licensed Services that are made, used, sold or performed
by GOYAIKE (or on behalf of GOYAIKE) under this Agreement.  Not later than May 1st of each
year following the Effective Date, GOYAIKE shall furnish Licensors and the University
with an executive summary report on the progress of its efforts during the
prior year to develop and commercialize Licensed Products or Licensed Services,
including without limitation research and development efforts, efforts to
obtain regulatory approval, marketing efforts (including Licensed Products and
Licensed Services made, used, sold or performed) and sales figures, provided that
such reports shall be deemed Confidential Information subject to the provisions
of Section 7 of this Agreement.

 

4.                                      TERM AND TERMINATION.

 

4.1                                 General.
The license granted by Licensors to GOYAIKE under Section 2.1(a) will
commence on the Effective Date and shall remain in effect unless sooner
terminated as provided herein.

 

4.2                                 Termination
by GOYAIKE. This Agreement may be terminated by GOYAIKE at any time without
cause by giving sixty (60) days prior written notice to the Licensors.  Upon termination, GOYAIKE shall have no
further obligations to pay any royalties, other than to submit a final report
and to pay any royalty payments that may be due and payable at termination.

 

4.3                                 Termination
for Cause. This Agreement may be terminated by either party at any time in
the event that the other party is in default or breach of any material
provision of this Agreement, by giving thirty (30) days prior written notice to
the other party specifying the cause of the termination; provided, however,
that if the breach is cured within the thirty (30) day period, the notice shall
be withdrawn and shall be of no effect.

 

4.4                                 Termination
for Infringement. GOYAIKE may immediately terminate this Agreement with
respect to any Licensed Product or Licensed Service on written notice to
Licensors in the event that such Licensed Product or Licensed Service becomes
subject to any claim that such Licensed Product or Licensed Service infringes
the intellectual property right of any third party.

 

4.5                                 Termination
for Change in Law. GOYAIKE may immediately terminate this Agreement on
written notice to Licensors in the event that there are any changes in law that
may

 

8

 

have material
adverse effect on GOYAIKE’s right to develop, make, have made, import, export,
use and sell Licensed Products and to develop and perform Licensed Services.

 

4.6                                 Termination
of UMASS License, TUFTS License or LIU License. GOYAIKE may immediately
terminate this Agreement on written notice to Licensors in the event that the UMASS
License, TUFTS License or LIU License is terminated.

 

4.7                                 Termination
of TUFTS Rights or LIU Rights. GOYAIKE may immediately terminate its
sublicense of the TUFTS Rights or the LIU Rights at any time on written notice
to Licensors.

 

4.8                                 Survival
of Obligations; Return of Confidential Information. Notwithstanding any
termination of this Agreement, the obligations of the parties under Section 7,
as well as under any other provisions which by their nature are intended to
survive any such termination, shall survive and continue in force.  Upon any termination of this Agreement, each
party shall promptly return to the other party all written Confidential
Information, and all copies, summaries, notes or extracts thereof, to the other
party.

 

4.9                                 Existing
Stock. In the event that this Agreement terminates or expires, GOYAIKE
shall retain limited rights to sell any Licensed Products existing or under
production at the time of termination or expiration and to provide any Licensed
Services related to such Licensed Products, subject to the terms of this
Agreement.

 

4.10                           Additional
Termination Provisions. The foregoing termination rights are in addition to
any termination rights that may be provided elsewhere in this Agreement.

 

5.                                      PAYMENTS.

 

5.1                                 License
Fee. GOYAIKE shall pay to CYAGRA an initial license fee of TWO HUNDRED
FIFTY THOUSAND DOLLARS ($250,000.00) (the “Initial License Fee”), one hundred
percent (100%) of which payment shall be deemed earned and shall be due and
payable to CYAGRA on the Effective Date.  The License Fee is not refundable and is not
creditable against other payments due to CYAGRA under this Agreement.

 

5.2                                 Royalties,
Reports and Records.

 

(a) For each Licensed Product or
Licensed Service sold by GOYAIKE (or by any third party on behalf of GOYAIKE),
GOYAIKE shall pay to CYAGRA on a quarterly basis, as provided in Section 5.5(a) below,
the royalties described in this Section 5.2(a), or the royalty set forth
below in Section 5.2(b), as applicable:

 

(1) In the event that there is a Valid
Claim under any CYAGRA Patent Right in a country within the Territory, GOYAIKE
shall pay five and one-half percent (51/2%) of the Net
Sales of Licensed Products or Licensed Services sold by GOYAIKE (or by any
third party on behalf of GOYAIKE) in such country; or

 

(2) In the event that there is no Valid
Claim under any CYAGRA Patent Right in a country within the Territory, GOYAIKE
shall pay five percent (5%) of the Net Sales

 

9

 

of Licensed
Products or Licensed Services sold by GOYAIKE (or by any third party on behalf
of GOYAIKE) in such country that incorporates or utilizes CYAGRA Technology.

 

(b) In the case of a pending patent
application, royalties shall be paid at the royalty rate set forth in Section 5.2(a)(2).
 Upon issuance of the patent royalties
shall be payable at the royalty rate set forth in Section 5.2(a)(1).

 

(c) The obligation of GOYAIKE to pay
royalties pursuant to Section 5.2(a)(1) on sales of Licensed Products and
Licensed Services shall terminate on a country-by-country basis concurrently
with the expiration or termination of the last applicable patent within the
CYAGRA Patent Rights in the country in which the Licensed Product or Licensed
Services is manufactured, sold or performed.

 

(d) If GOYAIKE fails to timely make any
payment required under this Section 5.2, such failure, not cured within thirty
(30) of receiving a written notice of such failure to make a payment, shall
constitute a breach of a material provision under this Agreement and CYAGRA shall
have the right to terminate this Agreement in accordance with Section 4.2
hereof.

 

5.3                                 Minimum
Royalty. Commencing on the fifth full calendar year of this Agreement (i.e.,
the calendar year 2007), GOYAIKE shall be subject to minimum annual royalties
for each remaining calendar year of the term of this Agreement.  The amount of the minimum royalty shall be One
Hundred Fifty Thousand ($150,000) dollars for the 2007 calendar year and shall
thereafter increase at the rate of $50,000 per calendar year, but in no event
to exceed Five Hundred Thousand ($500,000) dollars per calendar year.  For the avoidance of doubt, the amount of the
annual minimum royalty for each year calendar year shall be as follows
(payable, as noted below, no later than forty-five (45) days following the end
of each applicable calendar year):

 

	
  Calendar
  Year

  	
   

  	
  Amount of Minimum Royalty Per Year

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  $

  	
  150,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  $

  	
  200,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  $

  	
  250,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  $

  	
  300,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  $

  	
  350,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
  $

  	
  400,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2013

  	
   

  	
  $

  	
  450,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2014 and throughout the remaining calendar
  years of the term of this Agreement

  	
   

  	
  $

  	
  500,000.00

  	
   

  

 

In the event that the annual royalties paid
by GOYAIKE for the applicable year is less

 

10

 

than the
minimum royalty due for such year, GOYAIKE shall pay the difference to CYAGRA
no later than forty-five (45) days following the end of each applicable
calendar year.  In the event that the
annual royalties paid by GOYAIKE for the applicable year is equal to or greater
than the minimum royalty due for such year, then GOYAIKE shall have satisfied
the minimum royalty obligations for such year.  Waiver of any payment of the minimum annual
royalty by CYAGRA shall not be construed as a waiver of any subsequent payment
of the minimum annual royalty.  If
GOYAIKE fails to make the payment to satisfy the minimum royalty obligations
hereunder within said forty-five (45) day period, such failure shall constitute
a breach of GOYAIKE’s obligations under this Agreement and CYAGRA shall have
the right to terminate this Agreement in accordance with Section 4.3
hereof.

 

5.4                                 Payments
in U.S. Dollars. All payments due under this Agreement shall be paid to
CYAGRA in Worcester, Massachusetts, U.S.A., and shall be made in United States currency
without deduction for taxes, assessments, exchanges, collection or other
charges of any kind; provided, however, that any withholding tax required to be
withheld by GOYAIKE on royalty payments under the laws of any country in the
Territory for the account of CYAGRA will be promptly paid by GOYAIKE for and on
behalf of CYAGRA to the appropriate governmental authority, and GOYAIKE will
furnish CYAGRA with proof of payment of such tax.  Any such tax actually paid on behalf of CYAGRA
may be deducted from royalty payments due CYAGRA to the extent that such taxes
are allowable as a direct credit to CYAGRA against U.S. income taxes levied on
such amounts.  Conversion of foreign
currency to U.S. dollars shall be made at the conversion rate reported in The
Wall Street Journal on the last working day of the calendar quarter to which
the payment relates.

 

5.5                                 Reports

 

(a) GOYAIKE shall submit a report,
verified once a year by an independent certified public accountant reasonably
acceptable to CYAGRA, to CYAGRA quarterly within 45 days after the end of each
calendar quarter during the term of this Agreement stating in each such report
the aggregate sales and payments with respect to Licensed Products and Licensed
Services during the preceding calendar quarter and the royalty amounts as
provided herein.  Without limiting the
generality of the foregoing, such reports shall include at least the following:

 

(1)                                  number
of Licensed Products manufactured, used, sold or imported by or on behalf of
GOYAIKE;

 

(2)                                  total
billings for Licensed Products sold and Licensed Services performed by GOYAIKE;

 

(3)                                  deductions
claimed (as provided in Section 1.10); and

 

(4)                                  the
names and addresses of all parties making Licensed Products on behalf of
GOYAIKE.

 

The payment of
royalty amounts shall be made concurrently with such reports.

 

(b)                                 GOYAIKE
shall keep full, complete, true and accurate books of account

 

11

 

containing all
particulars relating to the manufacture and sales with respect to Licensed
Products and Licensed Services, and any allowed credits, which may be necessary
to ascertain and verify the royalties payable to CYAGRA.  Said books and accounts shall be kept at
GOYAIKE’s principal place of business for the five years next following the end
of the calendar year to which they pertain.

 

5.6                                 Most
Favored Licensee. Licensors acknowledge and agree that the prices and other
economic terms herein (when taken as a whole) are and will be at least as
favorable as the prices and other economic terms (when taken as a whole)
offered by Licensors to any Similar Licensee.  In the event that Licensors enter into an
agreement with a Similar Licensee that is inconsistent with Section 5 above,
then this Agreement shall be deemed appropriately and immediately amended to
provide price and economic terms to GOYAIKE that are at least as favorable to
the terms provided to such Similar Licensee.  Licensors shall provide GOYAIKE with a true
and correct copy of all agreements entered into with Similar Licensees for
purposes of verifying the statements and covenants set forth in this Section and
amending this Agreement in accordance herewith.  For purposes of this Section, “Similar
Licensee” shall mean any person or entity under license from the Licensors,
other than GOYAIKE, that makes, uses or sells any Licensed Products or provides
Licensed Services in the Territory in a manner similar to the manner in which
GOYAIKE makes, uses or sells any Licensed Products or performs the Licensed
Services, in each case, in the Territory and in the Field of Agriculture.

 

6.                                      PROPRIETARY RIGHTS.

 

6.1                                 Ownership.
CYAGRA or its licensor(s) shall own the CYAGRA Patent Rights, the CYAGRA
Technology and the CYAGRA Developments.

 

6.2                                 CYAGRA
Patent Rights.

 

(a) Subject to the terms of the TUFTS License; (1) Licensors
shall be solely responsible for the continued prosecution of pending patent
applications included in the CYAGRA Patent Rights and the issuance of such
applications after allowance; (2) the prosecution, filing and maintenance
of all patents and applications shall be the responsibility of Licensors; and (3) Licensors
shall pay all government fees in any given country required to maintain the
CYAGRA Patent Rights, and shall submit evidence to GOYAIKE upon request that such
fees have been timely paid.

 

(b) In the event that Licensors desire to abandon any CYAGRA
Patent Rights within the CYAGRA Licensed Property, Licensors shall provide
GOYAIKE with reasonable prior written notice of such abandonment or decline of
responsibility, and GOYAIKE shall have the right, at its expense, to prepare,
file, prosecute and maintain the relevant CYAGRA Patent Rights in the
jurisdiction selected by GOYAIKE.  With
respect to the LIU Rights, the TUFTS Rights and the UMASS Rights, GOYAIKE’s
rights under this Section 6.2(b) shall be subject to (1) the
rights of the University under the UMASS License (including Section 6
thereof), (2) the rights of Chengyu Liu under the LIU License, and (3) the
rights of Tufts University under the TUFTS License (including Article 6
thereof), as applicable.

 

12

 

(c) In the event that the Licensors decline to assume the
responsibility for obtaining protection for any new invention that may be
useful to GOYAIKE, CYAGRA shall provide GOYAIKE with reasonable prior written
notice of such abandonment or decline of responsibility.

 

(d) The parties agree to notify each other in writing of any
actual or threatened infringement by a third party of the CYAGRA Patent Rights,
of any claim of invalidity, unenforceability, or non-infringement of the CYAGRA
Patent Rights, or of any actual or threatened misappropriation of the CYAGRA
Technology or the CYAGRA Developments.  Licensors
shall have the sole responsibility to prosecute or defend such claims, as
applicable.  GOYAIKE shall if requested
provide reasonable assistance to Licensor at Licensor’s expense, in connection
with the prosecution or defense of such claims.

 

(e) In the event that Licensors fail to initiate an infringement
action within a reasonable time after they become aware of the basis for such
action, or to answer a declaratory judgment action within a reasonable time
after such action is filed, GOYAIKE shall have the right to prosecute such
infringement or answer such declaratory judgment action, at its sole expense.  In the event GOYAIKE exercises its rights
hereunder to proceed with any such prosecution with any such prosecution or
defense, GOYAIKE shall keep Licensors fully informed of the status of any such
proceedings, shall consult with Licensors regarding the course of such
proceedings and shall not enter into any settlement agreements, consent orders
or agreements, judgments or other arrangements or understandings of any nature
relating to such proceedings that admits the invalidity, unenforceability or
non-infringement of any CYAGRA Licensed Property or that would adversely effect
the then current or future rights of Licensors without the express prior
written consent of Licensors, such consent not to be unreasonably withheld or
delayed.  In the event GOYAIKE abandons
such proceedings, then Licensors shall have the right to take control of any
such proceedings at their sole expense upon notification to GOYAIKE, and
GOYAIKE shall cooperate fully with Licensors in substituting Licensors for GOYAIKE
in any such proceeding in the most timely and cost effective manner reasonably possible
and shall otherwise cooperate with Licensors in effecting a smooth transition
in any such proceeding.  With respect to
the LIU Rights, the TUFTS Rights and the UMASS Rights, GOYAIKE’s rights under
this Section 6.2(e) shall be subject to (1) the rights of the
University under the UMASS License (including Section 6 thereof), (2) the
rights of Chengyu Liu under the LIU License, and (3) the rights of Tufts
University under the TUFTS License (including Article 7 thereof), as
applicable.

 

7.                                      CONFIDENTIAL INFORMATION AND PUBLICATIONS.

 

7.1. Use and Nondisclosure of Confidential
Information. (a) Neither party or the University will disclose or make
available to any person outside its organization the disclosing party’s
Confidential Information.  Each party may
disclose the other party’s Confidential Information to persons within its
organization and that of its Affiliates to the extent necessary to further the
purposes of this Agreement, provided that all such persons are bound to protect
the confidentiality of such Confidential Information.  Each party may disclose the other party’s
Confidential Information if required by law or governmental authority, provided
that prior notice of any such disclosure is given to the other party and that
the disclosing party cooperates with the other party in seeking protective
orders or other restrictions on disclosure.

 

13

 

(b) Except to the extent expressly authorized by this Agreement or
by other prior written consent by the disclosing party, each party shall during
the term of this Agreement and thereafter: (i) treat as confidential all
Confidential Information of the other party; (ii) not use such
Confidential Information except as authorized herein or otherwise authorized in
writing, (iii) implement reasonable procedures to prohibit the disclosure,
unauthorized duplication, misuse or removal of the other party’s Confidential
Information; (iv) not disclose such Confidential Information to any third
party, and (v) only disclose the Confidential Information to those of its
employees who have need to know such Confidential Information in order to
exercise the rights and fulfill the obligations set forth herein.  Without limiting the foregoing, each of the
parties shall protect the Confidential Information using at least the same
procedures and degree of care that it uses to prevent the disclosure of its own
confidential information of like importance, but in no event less than
reasonable care.  Each party shall return
the Confidential Information to the other party upon termination of the
Agreement or upon the request of the other party.  Except as expressly provided in this
Agreement, no ownership or license right is granted in any Confidential
Information.

 

7.2                                 Injunctive
Relief. The parties acknowledge and agree that any breach of the confidentiality
obligations imposed by this Section 7 will constitute immediate and
irreparable harm to the party disclosing the Confidential Information and/or
its successors and assigns, which cannot adequately and fully be compensated by
money damages and will warrant, in addition to all other rights and remedies
afforded by law, injunctive relief, specific performance, and/or other
equitable relief.  The disclosing party’s
rights and remedies hereunder are cumulative and not exclusive.  The disclosing party shall also be entitled to
receive from the receiving party the costs of enforcing this Section 7,
including reasonable attorneys’ fees and expenses of litigation.

 

7.3                                 Survival.
The obligations of the parties under this Section 7 shall survive any expiration
or termination of this Agreement.

 

8.                                      REPRESENTATIONS AND WARRANTIES.

 

8.1                                 Representations
and Warranties by Licensors. Licensors represent and warrant to GOYAIKE
that:

 

(a) Licensors own or have a licensable interest in the CYAGRA
Licensed Property and have the right to grant to GOYAIKE the license set forth
above;

 

(b) Licensors have provided GOYAIKE with a copy of the UMASS
License, as amended, with certain terms redacted, and Licensors represent and
warrant that the said copy is a true and complete (except as redacted) copy of
the UMASS License as of the Effective Date;

 

(c) Licensors have provided GOYAIKE with a copy of the TUFTS
License, and Licensors represent and warrant that the said copy is a true and
complete copy of the TUFTS License as of the Effective Date;

 

(d) Licensors have provided GOYAIKE with a copy of the LIU
License, and Licensors represent and warrant that the said copy is a true and
complete copy of the LIU

 

14

 

License as of
the Effective Date;

 

(e) the execution of this Agreement and performance of the
transactions contemplated hereby have been approved by the CYAGRA Board of
Directors and will not conflict with or result in any breach of any of the
terms, conditions or provisions of, or constitute a default under, any
agreement to which Licensors are parties or by which Licensors are bound, including
the UMASS License, TUFTS License and LIU License.

 

(f) Licensors have obtained all necessary consents to grant to
GOYAIKE the license set forth above;

 

(g) the CYAGRA Licensed Property are valid and enforceable; and

 

(h) the exercise of the rights and license granted to GOYAIKE
under this Agreement, including the manufacture, use or sale of the Licensed
Product or Licensed Services shall not infringe or misappropriate the
intellectual property rights of any third party.

 

8.2                                 Representation
and Warranty by GOYAIKE. GOYAIKE represents and warrants to CYAGRA that the
execution of this Agreement and performance of the transactions contemplated by
this Agreement have been approved by the GOYAIKE Board of Directors and will
not conflict with or result in any breach of any of the terms, conditions or
provisions of, or constitute a default under, any agreement to which GOYAIKE is
a party or by which GOYAIKE is bound or any laws or regulations to which
GOYAIKE is subject.

 

8.3                                 Disclaimer.
Except as set forth in Section 8.1 above, Licensors do not make any representations
or warranties that the Licensed Property has any applications, uses or other attributes
of any commercial nature, GOYAIKE having made its own determination as to the usefulness
of the Licensed Property to GOYAIKE and GOYAIKE’s intended application(s) of the
Licensed Property and any related business based on such due diligence as
GOYAIKE has deemed necessary.

 

9.                                      INDEMNIFICATION.

 

9.1                                 Indemnification
by Licensors. Licensors shall defend, indemnify and hold harmless GOYAIKE,
the University, Tufts University and Chengyu Liu, and their Affiliates, trustees,
agents, directors, officers and employees, at Licensors’ cost and expense, from
and against any and all losses, costs, liabilities, damages, fees and expenses,
including reasonable attorneys’ fees and expenses incurred or imposed upon any
of the indemnified parties in connection with any claims (including third party
claims), suits, actions, demands or judgments

 

(a) arising out of any breach by Licensors of any representation
or warranty provisions; or

 

(b) arising out of any third party claim asserted against GOYAIKE
based on the alleged infringement of a patent or other protected intellectual
property right based on a Licensed Product or a Licensed Service.

 

9.2                                 Indemnification
by GOYAIKE. GOYAIKE shall defend, indemnify and hold

 

15

 

harmless
Licensors, the University, Tufts University and Chengyu Liu, and their
Affiliates, trustees, agents, directors, officers and employees, at GOYAIKE’s
cost and expense, from and against any and all losses, costs, liabilities,
damages, fees and expenses, including reasonable attorneys’ fees and expenses
incurred or imposed upon any of the indemnified parties in connection with any
claims (including third party claims), suits, actions, demands or judgments:

 

(a) arising out of any breach by GOYAIKE of any representation or
warranty provisions; or

 

(b) arising out of the death or injury to any person or persons or
out of any damage to tangible property resulting from or otherwise attributable
to the making, using, development, testing, registration, distribution and/or
sale by or through GOYAIKE of any Licensed Products or Licensed Services under
this Agreement.

 

9.3                                 Indemnification
Claims. Each party shall give the other party prompt notice of any claim
for which indemnification under this Section 9 is or may be applicable and
will cooperate with the indemnifying party in the defense or settlement of such
claim at the indemnifying party’s expense.  The indemnifying party shall be required to
provide and be entitled to control the defense of any claim covered hereunder
(including the right to settle it at the sole discretion of the indemnifying
party) with counsel reasonably satisfactory to the other party which may, at
its own expense, participate in the defense of any claim after the indemnifying
party assumes control of the defense thereof.  The indemnification obligations in this Section 9
shall not apply to amounts paid in settlement of such claim if such settlement
is effected without the consent of the indemnifying party, which consent shall
not be unreasonably withheld or delayed.  The failure of the indemnified party to
deliver notice to the indemnifying party promptly after the commencement of any
such action, if materially prejudicial to the indemnifying party’s ability to
defend such action, shall relieve the indemnifying party of any liability to
the indemnified party under this Section 9, but the failure to promptly
deliver notice to the indemnifying party will not relieve it of any liability
that it may have to the indemnified party other than under this Section 9.

 

10.                               LIMITATION OF LIABILITY. IN NO EVENT SHALL ANY PARTY (OR ITS
AFFILIATES, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, OR AGENTS) BE LIABLE
FOR ANY SPECIAL, INDIRECT, RELIANCE, INCIDENTAL, EXEMPLARY, COVER, OR
CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS AND GOODWILL, EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, REGARDLESS OF THE
THEORY OF LIABILITY.

 

11.                               INSURANCE. Each party shall obtain and maintain, at all
times during the term of this Agreement, general liability insurance with
appropriate bodily injury, death and property damage limits.  Upon request, a party shall furnish a
certificate of insurance signed by an authorized representative of its
insurance underwriter evidencing such coverage and providing for at least thirty
(30) days’ prior written notice of any cancellation, termination or reduction
of coverage.

 

12.                               MISCELLANEOUS.

 

12.1                           Assignment.
This Agreement, and the rights and obligations thereunder, may not

 

16

 

be assigned or
transferred, in whole or in part, by either party without the prior written
consent of the other party, except that (a) Licensors may freely assign
their rights under this Agreement, including without limitation CYAGRA’s rights
to receive payments required to be made by GOYAIKE, provided  that,
upon GOYAIKE receiving written notice to make payments to a third party,
GOYAIKE shall have no further obligation to make such payments to CYAGRA, and
CYAGRA shall indemnify and hold GOYAIKE harmless from and against any losses
based on claims by such third party other than claims based on non-payment of
undisputed amounts owed to such third party, (b) Licensors may assign this
Agreement to an Affiliate, provided that Licensors remain primarily liable
and/or responsible for the performance of such obligations, and provided
further that such Affiliate agrees to be bound to the terms and conditions of
this Agreement, and (c) either party may assign this Agreement in
connection with the sale of all or substantially all of the assets of such
party which pertain to the subject matter of this Agreement; provided, however,
that any assignment by GOYAIKE pursuant to this clause (c) shall be
subject to the consent of the University, which consent shall not be
unreasonably withheld or delayed.

 

12.2                           Notices.
Any payment, notice or other communication required or otherwise given pursuant
to this Agreement shall be in writing and delivered by internationally
recognized overnight delivery service, or by facsimile confirmed by prepaid
certified air mail addressed to the parties at the following addresses or such
other addresses as a party may furnish to another party in accordance with this
paragraph.  Such notices, payments or
other communications shall be deemed to have been properly served to the
addressee upon receipt of such written communication.

 

	
   

  	
  In the case of GOYAIKE, the proper address for communications shall
  be:

  
	
   

  	
   

  
	
   

  	
   

  	
  Goyaike, S.A.

  
	
   

  	
   

  	
  Av, do Mayo 701, Piso 16

  
	
   

  	
   

  	
  Buenos Aires, Argentina

  
	
   

  	
   

  	
  Attn:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Shearman & Sterling

  
	
   

  	
   

  	
  599 Lexington Avenue

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telecopy: (212) 848-7179

  
	
   

  	
   

  	
  Attention: Alfred J. Ross, Esq.

  
				

 

in the case of A.C.T. GROUP, the proper address for communication shall
be:

 

	
   

  	
   

  	
  A.C.T. Group, Inc.

  
	
   

  	
   

  	
  One Innovation Drive

  
	
   

  	
   

  	
  Worcester, Massachusetts 01605

  
	
   

  	
   

  	
  Telecopy: 508-756-0931

  
	
   

  	
   

  	
  Attention: Michael D. West, Ph.D., President

  

 

17

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pierce Atwood

  
	
   

  	
   

  	
  One Monument Square

  
	
   

  	
   

  	
  Portland, Maine 04101

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telecopy: (207) 791-1350

  
	
   

  	
   

  	
  Attention: William L. Worden, Esq.

  

 

in the case of ACT INC, the proper address for communications shall be:

 

	
   

  	
   

  	
  Advanced Cell Technology, Inc.

  
	
   

  	
   

  	
  One Innovation Drive

  
	
   

  	
   

  	
  Worcester, Massachusetts 01605

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telecopy: 508-756-0931

  
	
   

  	
   

  	
  Attention: Michael D. West, Ph.D., President

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pierce Atwood

  
	
   

  	
   

  	
  One Monument Square

  
	
   

  	
   

  	
  Portland, Maine 04101

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telecopy: (207) 791-1350

  
	
   

  	
   

  	
  Attention: William L. Worden, Esq.

  

 

and in the case of CYAGRA, the proper address for communications and
all payments shall be:

 

	
   

  	
   

  	
  Cyagra, Inc.

  
	
   

  	
   

  	
  One Innovation Drive

  
	
   

  	
   

  	
  Worcester, Massachusetts 01605

  
	
   

  	
   

  	
  Attn: Michael D. West, Ph.D., President

  
	
   

  	
   

  	
  Fax:  508-756-0931

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pierce Atwood

  
	
   

  	
   

  	
  One Monument Square

  
	
   

  	
   

  	
  Portland, Maine 04101

  
	
   

  	
   

  	
  Attn: William L. Worden, Esq.

  
	
   

  	
   

  	
  Fax:  207-791-1350

  

 

12.3                           Choice
of Law; Submission to Jurisdiction. This Agreement is subject to and

 

18

 

governed by
the laws of the Commonwealth of Massachusetts, without regard to principles of
conflicts of law thereof, except that questions affecting the construction and
effect of any patent shall be determined by the law of the country in which the
patent was granted.  The parties
irrevocably and expressly submit to the exclusive jurisdiction of the courts
(state and federal) of the Commonwealth of Massachusetts, United States of
America and the courts competent to hear appeals from those courts for the
resolution of any disputes arising in connection with this Agreement.

 

12.4                           Compliance
with Law by GOYAIKE. GOYAIKE shall comply in all material respects with all
material local, state, federal and international laws and regulations relating
to the development, manufacture, use, and sale of Licensed Products and
Licensed Services in the Territory.  Without
limitation of the foregoing, GOYAIKE shall comply with the following:

 

(a) GOYAIKE shall obtain all necessary approvals from any
governmental authorities of any foreign jurisdiction in which GOYAIKE intends
to make, use, or sell Licensed Products or to perform Licensed Services in the
Territory.

 

(b) GOYAIKE shall comply in all material respects with any and all
material applicable local, state, federal and international laws and regulations
relating to the Licensed Products and Licensed Services, and the CYAGRA Patent
Rights, Technology and Developments in the Territory, including without
limitation all material export or import regulations and rules now in
effect or as may be issued from time to time by any governmental authority
which has jurisdiction relating to the export of Licensed Products or Licensed
Services and any technology relating thereto.

 

12.5                           Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original but all of which together shall constitute one and
the same instrument.

 

12.6                           Headings.
All headings contained in this Agreement are for convenience of reference only
and shall not be considered in construing this Agreement.

 

12.7                           Binding
Effect. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective permitted successors and assigns.  The parties acknowledge that (1) the
University is a third party beneficiary of the applicable provisions of
Sections 2.1, 3.2, 5.5, 9.1, 9.2, 12.4, 12.6, 2.11 and 12.15 hereof, with the
right to enforce such provisions against the applicable party, (2) Tufts
University is a third party beneficiary of Sections 2.1, 3.2, 5.5, 9.1, 9.2,
12.4,12.6, 2.11 and 12.15 hereof with the right to enforce such provisions
against the applicable party, and (3) Chengyu Liu is a third party
beneficiary of Sections 2.1, 3.2, 5.5, 9.1, 9.2, 12.4, 12.6, and 12.15 hereof.

 

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

 

12.9                           Severability.
In the event that any one or more of the provisions contained in this

 

19

 

Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Agreement, and all other provisions shall remain in
full force and effect.  If any of the provisions
of this Agreement is held to be excessively broad or invalid, illegal or
unenforceable in any jurisdiction, it shall be reformed and construed by
limiting and reducing it so as to be enforceable to the maximum extent
permitted by law in conformance with its original intent.

 

12.10                     Entire
Agreement. This Agreement, together with the UMASS License, constitute the
entire agreement of the parties with regard to its subject matter, and
supersedes all previous written or oral representations, agreements and
understandings between the parties.  The
parties acknowledge and agree that there are no representations, warranties,
arrangements, promises or agreements outstanding between them, whether oral or
in writing, other than those contained or referred to in this Agreement or the
UMASS License.

 

12.11                     Publicity.
Neither party, nor any of its Affiliates, shall originate any publicity, news
release or other public announcement (“Announcements”), written or oral,
relating to this Agreement or the existence of an arrangement between the
parties, without the prior written approval of the other party, which approval
shall not be unreasonably withheld, except as otherwise required by law.  Any references to the University or Tufts
University in such Announcements shall be subject to the approval of the
University or Tufts University, as applicable.  The foregoing notwithstanding, Licensors and
GOYAIKE shall have the right to make such Announcements without the consent of
the other party, the University or Tufts University, as applicable, in any
prospectus, offering memorandum, or other document or filing required by
securities laws or other applicable law or regulation, provided that such party
shall have given the other party or the University, as applicable, at least ten
(10) days’ prior written notice of the proposed text for the purpose of
giving the other party or the University, as applicable, the opportunity to
comment on such text.

 

12.12                     No Implied
Licenses. No implied licenses are granted pursuant to the terms of this
Agreement.  No license rights shall be
created by implication or estoppel.

 

12.13                     No Agency.
Nothing herein shall be deemed to constitute either party as the agent or
representative of the other party, or both parties as joint venturers or partners
for any purpose.  Each party shall be an
independent contractor, not an employee or partner of the other party, and the
manner in which each party renders its services under this Agreement shall be within
its sole discretion.  Neither party shall
be responsible for the acts or omissions of the other party, and neither party
will have authority to speak for, represent or obligate the other party in any
way without prior written authority from the other party.

 

12.14                     Non-Solicitation.
During the term of this Agreement and for a period of one (1) year thereafter,
neither party may solicit any person who is employed by or a consultant to the other
party or any Affiliate of such party to terminate such person’s employment by
or consultancy to such party or such Affiliate.  As used herein, the term “solicit” shall
include, without limitation, requesting, encouraging, assisting or causing,
directly or indirectly, any such employee or consultant to terminate such
person’s employment with or consultancy to such party or Affiliate.

 

20

 

12.15                     Product
Marking. To the extent commercially feasible and permitted by law, and
consistent with prevailing business practices, all Licensed Products (or the
packaging or product label of such Licensed Product(s)) manufactured or sold by
or through GOYAIKE under this Agreement will be marked with the number of each
issued patent that applies to such product.

 

 

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY
BEEN LEFT BLANK]

 

21

 

IN WITNESS WHEREOF,
the parties hereto and the University have caused this Agreement to be executed
the day and year first written above.  The
persons signing below warrant their authority to sign the Agreement.

 

 

	
  GOYAIKE, S.A.

  	
  GOYAIKE, S.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Richard Hösel

  	
   

  	
  By:

  	
    /s/ Alejandro Cantarelli

  
	
   

  	
  Signature

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RICHARD HÖSEL

  	
   

  	
   

  	
    ALEJANDRO CANTARELLI

  
	
   

  	
  Printed Name

  	
   

  	
   

  	
  Printed Name

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Attorney In Fact

  	
   

  	
   

  	
    ATTORNEY IN FACT

  
	
   

  	
  Title

  	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    11.20.01

  	
   

  	
   

  	
    11.20.01

  
	
   

  	
  Date

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CYAGRA, INC.

  	
   

  	
  ADVANCED
  CELL TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Michael West

  	
   

  	
  By:

  	
    /s/ Michael West

  
	
   

  	
  Signature

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    MICHAEL WEST

  	
   

  	
   

  	
    MICHAEL WEST

  
	
   

  	
  Printed Name

  	
   

  	
   

  	
  Printed Name

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    PRESIDENT

  	
   

  	
   

  	
    PRESIDENT

  
	
   

  	
  Title

  	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    11-20-01

  	
   

  	
   

  	
    11-20-01

  
	
   

  	
  Date

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A.C.T.
  GROUP, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael West

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MICHAEL WEST

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PRESIDENT

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11-20-01

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  	
   

  

 

22

 

CONSENT
AND AGREEMENT

 

For value received, the University hereby (a) consents to the
sublicense by ACT INC and CYAGRA to GOYAIKE of the UMASS Rights under this
Agreement, and (b) agrees to be bound by the applicable provisions of
Sections 2.1, 3.2 and 7.1 hereof.

 

THE UNIVERSITY OF MASSACHUSETTS

 

 

	
  By:

  	
    /s/ Joseph F. X. McGuirl

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Joseph F. X. McGuirl

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Executive Director, CVIP

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    November 19, 2001

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  	
   

  

 

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]