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                                                                   EXHIBIT 10.13

                               LICENSE AGREEMENT

     This Agreement, made and entered into as of this 29th day of June 1995
(the "Effective Date") by and between THE JOHNS HOPKINS UNIVERSITY, a
corporation duly organized and existing under the laws of the State of Maryland
and having its principal place of business at Charles and 34th Streets,
Baltimore, Maryland 21218, U.S.A. (hereinafter referred to as "JOHNS HOPKINS")
and SANGAMO BIOSCIENCES, INC. a corporation duly organized under the laws of
Delaware and having its principal office at P.O. Box 334, Ross, California
94957 (hereinafter referred to as "LICENSEE").

                                   WITNESSETH

     WHEREAS, JOHNS HOPKINS is the owner of certain Patent Rights (as later
defined herein) relating to inventions from its laboratories directed by
Srinivasan Chandrasegaran, Ph.D. concerning custom design and development of
novel DNA-binding proteins for uses, including but not limited to laboratory
reagents, clinical diagnostics and therapeutics and has the right to grant
licenses under said Patent Rights, subject only to certain march-in-rights
retained by the United States Government, including royalty-free, nonexclusive
licenses;

     WHEREAS, JOHNS HOPKINS desires to have the Patent Rights utilized in the
public interest and is willing to grant a license thereunder;

     WHEREAS, JOHNS HOPKINS and LICENSEE are parties to a Research Agreement
having even date herewith (Appendix D);

     WHEREAS, JOHNS HOPKINS is acting herein for itself;

     WHEREAS, LICENSEE has represented JOHNS HOPKINS to induce JOHNS

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HOPKINS to enter into this Agreement that LICENSEE shall commit itself to a
thorough, vigorous and diligent program of exploiting the Patent Rights so that
public utilization shall result therefrom;

     WHEREAS, Dr. Chandrasegaran will continue to have full academic freedom to
continue his scientific investigations and interactions with his colleagues; and

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

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

                            ARTICLE I - DEFINITIONS

     For the purposes of this Agreement, in addition to other terms defined
herein, the following words and phrases shall have the following meanings:

     1.1  "LICENSEE" shall mean SANGAMO BIOSCIENCES and any Subsidiary of
SANGAMO BIOSCIENCES.

     1.2  "Subsidiary" shall mean any corporation, company or other entity more
than fifty percent (50%) of whose voting stock is owned or controlled directly
or indirectly by SANGAMO BIOSCIENCES; any parent corporation, company or other
entity which owns, directly or indirectly, more than fifty percent (50%) of the
voting stock of SANGAMO BIOSCIENCES; and any corporation, company or other
entity in which such parent corporation, company or other entity owns, directly
or indirectly, more than fifty percent (50%) of the voting stock.

     1.3  "Patent Rights" shall mean the inventions disclosed and claimed in
the United States and foreign patents and/or patent applications listed in
Appendix A.

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     1.4  A "Licensed Product" shall mean any product or part thereof which:

          (a)  is covered in whole or in part by an issued, valid, enforceable,
               unexpired claim or a pending claim contained in the Patent Rights
               in the country in which any Licensed Product is made, used or
               sold;

          (b)  is manufactured by using a process which is covered in whole or
               in part by a valid, enforceable, issued, unexpired claim or a
               pending claim contained in the Patent Rights in the country in
               which any Licensed Process is used or in which the Licensed
               Product is used or sold.

     1.5  A "Licensed Process" shall mean any process which is covered in whole
or in part by a valid, enforceable, issued, unexpired claim or a pending claim
contained in the Patent Rights.

     1.6  "Net Sales" shall mean the invoiced sales price of Licensed Products
to an end-user that is not a Subsidiary or a sublicensee in a country in which
such sales would infringe a valid claim contained in the Patent Rights in such
country after deducting:

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

          (b)  Sales taxes, tariffs, duties, use taxes and/or other
               governmental levies directly imposed and with reference to
               particular sales;

          (c)  Outbound transportation prepaid or allowed; and

          (d)  Amounts allowed or credited on returns.

No deductions shall be made for commissions paid to individuals whether they be
with independent sales agencies or regularly employed by LICENSEE and on its
payroll, or for cost of collections. Licensed Products shall be considered
"sold" when billed out or invoiced.

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     1.7  "Invention" shall mean custom designed novel DNA-binding proteins.

                               ARTICLE II - GRANT

     2.1  JOHNS HOPKINS hereby grants to LICENSEE the exclusive worldwide right
and license to make, have made, use, lease and sell the Licensed Products, and
to practice the Licensed Processes, including the right to grant sublicenses,
subject to 35USC200-211 and the regulations promulgated thereunder, to the end
of the term for which the Patent Rights are granted by the applicable
governmental authority, unless sooner terminated as hereinafter provided (the
"Term"). JOHNS HOPKINS reserves the non-transferable royalty-free right to
practice the subject matter of any claim within the Patent Rights for its own
internal purposes. If Dr. Chandrasegaran leaves JOHNS HOPKINS, he shall have
the non-transferable, royalty-free right to practice any claim within the
Patent Rights for his own academic purposes.

     2.2  In order to establish a period of exclusivity for LICENSEE, JOHNS
HOPKINS hereby agrees that it shall not grant any other license to make, have
made, use, lease or sell Licensed Products or to practice Licensed Processes
except for its internal research activities during the period of time (the
"Exclusive Period") commencing with the Effective Date of this Agreement and
terminating with expiration of the last-to-expire patent licensed under this
Agreement, unless converted earlier to a nonexclusive license pursuant to
Paragraph 4.4 hereof or pursuant to a requirement by the United States
Government in accordance with 35USC200-211.

     2.3  LICENSEE shall have the right to sublicense all or any part of this
license. LICENSEE agrees that any sublicenses granted by it shall provide that
the obligations to JOHNS HOPKINS of Articles II, VIII, IX, X, XIII, XV, and
Paragraphs 5.1 and 5.2 of this

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Agreement shall be binding upon the sublicensees as if it were a party to this
Agreement. LICENSEE further agrees to attach copies of these Articles to
sublicense agreements.

     2.4  LICENSEE agrees to forward to JOHNS HOPKINS a copy of any and all
fully executed sublicense agreements, and further agrees to forward to JOHNS
HOPKINS, quarterly, pursuant to Paragraph 5.2 a copy of such reports received
by LICENSEE from its sublicensees during the preceding twelve (12) month period
under the sublicense as shall be pertinent to a royalty accounting under said
sublicense agreements.

     2.5  Subject to Sections 2.6, 2.7 and 15.7 below, the license granted
hereunder shall not be construed to confer any rights upon LICENSEE by
implication, estoppel or otherwise as to any technology not specifically set
forth in Appendix A, Appendix B, Appendix C, and Appendix D hereof.

     2.6  JOHNS HOPKINS hereby also grants to LICENSEE a right of first
negotiation at then commercially reasonable terms, to obtain an exclusive
license to any Inventions, as previously defined, developed during the term of
this Agreement and any extension thereof and pursuant to any Research Agreement
between the parties hereto (Appendix D). JOHNS HOPKINS shall promptly give
LICENSEE written notice of any such Inventions, as defined, and LICENSEE shall
have one hundred and twenty (120) days from the date of receipt of such notice
to give JOHNS HOPKINS written notice of its intent to exercise such option and
complete negotiations. JOHNS HOPKINS shall not negotiate with any third party
regarding these Inventions during the period of LICENSEE's right to negotiate.
During the term of this Agreement and any extension thereof, Dr. Chandrasegaran
shall be free to pursue any scientific investigations of his choice through
collaboration with colleagues. Should any such collaboration involve a Licensed
Product or Licensed Process, JOHNS HOPKINS will take the initiative of promptly
communicating

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with these colleagues for the purpose of using its reasonable best efforts to
have such colleagues agree to be bound by the terms of this Agreement with
regard to Licensed Products and Licensed Processes.

     2.7  Appendix B attached hereto contains ideas conceived by Dr.
Chandrasegaran for developing laboratory reagents, diagnostics, and
pharmaceuticals relating to chimeric restriction endonucleases. Dr.
Chandrasegaran shall give written notice of any Invention resulting under the
Advanced Technology Program within sixty (60) days of the completion of the
funding of such program. Any Invention resulting in whole or in part from said
ideas which are made pursuant to an award under the Advanced Technology Program
where a grant application was filed on March 29, 1995 (Appendix C) shall be
assigned to LICENSEE pursuant to Section 15.7 below and Dr. Chandrasegaran will
be named as sole inventor unless another individual makes a creative input to
said Invention. LICENSEE shall have the first right of negotiation, under then
commercially reasonable terms, to obtain an exclusive, royalty-bearing license
under any Invention resulting from said ideas in Appendix B made by Dr.
Chandrasegaran with funding from a source other than the Advanced Technology
Program grant.

                          ARTICLE III - DUE DILIGENCE

     3.1  In order to assure the diligent development of the Licensed Products
and Licensed Processes, LICENSEE shall either fulfill the due diligence
milestones set forth in Paragraph 3.2 below or make the minimum royalty
payments set forth in Paragraph 3.3 below.

     3.2  LICENSEE's due diligence milestones shall be a follows:

          (a)  Within six (6) months from the date of this Agreement, LICENSEE
               shall deliver a business plan describing a program for the
               development of the Patent Rights.

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          (b)  Within four (4) years from the Effective Date of this Agreement,
               LICENSEE shall have spent or caused to be spent, either directly
               by LICENSEE or indirectly pursuant to agreements entered into by
               LICENSEE (including Research Agreement funding and grant funding
               provided by or associated with LICENSEE to JOHNS HOPKINS), a
               total of One Million Dollars ($1,000,000) on activities relating
               to the research and development, marketing, sale, manufacture,
               lease and use of Licensed Products and Licensed Processes. All
               amounts expended on Licensed Products and Licensed Processes
               shall be credited toward the above indicated amounts, including
               but not limited to salaries, overhead salaries, overhead,
               capital, equipment, consulting fees and cost of materials.

          (c)  Within four (4) years from the Effective Date of this Agreement,
               LICENSEE shall submit an Experimental Plan for, and begin
               experimental work on, an appropriate testing program for at least
               one (1) Licensed Product. Such Experimental Plan shall be
               sufficiently detailed and comprehensive that, in the good faith
               opinion of LICENSEE and its counselors, the Plan shall, if
               successful, be reasonably adequate to support a credible and
               potentially successful Investigative New Drug (IND) application
               to the U.S. Food and Drug Administration within seven (7) years
               from the Effective Date of this Agreement.

          (d)  Within seven (7) years of the Effective Date of this Agreement,
               LICENSEE shall have submitted a complete Investigative New Drug
               application to the U.S. FDA, such IND to be supported with
               appropriate studies and other toxicity and safety tests as may be
               required by the FDA.

          (e)  Within three (3) years of the Effective Date of this Agreement,
               LICENSEE shall have made a first commercial sale of at least one
               (1) Licensed Product.

     3.3  In the event that LICENSEE has failed to meet any particular due
diligence milestone set forth in Paragraph 3.2 above on or before the date set
forth therein with respect to each such milestone, JOHNS HOPKINS shall notify
LICENSEE thereof and LICENSEE shall have ninety (90) days following such
notification either to establish to the

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reasonable satisfaction of JOHNS HOPKINS that it has met such milestone or to
make the initial penalty payment referred to in Paragraph 3.4 below.

     3.4  In the event that LICENSEE shall have failed to establish its
achievement of any particular milestone to the reasonable satisfaction of JOHNS
HOPKINS as set forth in Paragraph 3.3 above, JOHNS HOPKINS shall have the right
to terminate this Agreement, unless LICENSEE shall make to JOHNS HOPKINS the
following penalty payments:

          (a)  To maintain the exclusive rights granted herein on an exclusive
               basis as set forth in Paragraph 2.2, the amount of      *
                                 in the year of the breach and       *
                                 annually thereafter until the breach is cured;
               with such amount increasing to               *
                          annually commencing the eighth year following the
               Effective Date of this Agreement.

          (b)  To maintain its rights granted herein without the exclusivity
               provisions of Paragraph 2.2, the sum of          *
                                 in the year of the breach and       *
                                          per year thereafter until cured.

     The penalty payments described in (a) and (b) above shall only be due
within thirty (30) days following the failure of LICENSEE to achieve a
milestone or cure such failure within the ninety (90) days set forth in
Paragraph 3.3 above. LICENSEE's obligation to make such penalty payments shall
terminate when the applicable milestone has been met.

                             ARTICLE IV - ROYALTIES

     4.1  For the rights, privileges and license granted hereunder, LICENSEE
shall pay to JOHNS HOPKINS in the manner hereinafter provided for so long as
LICENSEE by its activities would, but for the licenses granted herein, infringe
a valid, enforceable claim of an unexpired Patent Right or until this Agreement
shall be terminated as hereinafter

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

          (a)  At the time that LICENSEE closes financing equal to a total
               cumulative equity investment of at least Five Hundred Thousand
               Dollars ($500,000) ("Initial Financing"), LICENSEE shall issue to
               JOHNS HOPKINS that number of common units equal to that portion
               of the total number of common and preferred units issued with
               respect to the first Five Hundred Thousand Dollars ($500,000) in
               equity capital invested in the LICENSEE multiplied by 0.075. If
               the preferred units issued in any financing have antidilution
               protection, JOHNS HOPKINS shall be entitled to equivalent
               protection for its common units. JOHNS HOPKINS shall also be
               entitled, at its sole option, to invest its own funds in the
               second and any subsequent round of investment funding at a price
               per unit which is the same price as is offered to other second
               round investors, for up to a total number of shares such that
               JOHNS HOPKINS' share of equity in the Company would remain at
               seven-and-one-half percent (7.5%).

          (b)  At the time that the cumulative equity capital invested in the
               Company is equal to Two Million Dollars ($2,000,000), LICENSEE
               shall pay to JOHNS HOPKINS:

               (i)  a License Issue Fee of                *
                                  *                 of said License Issue Fee
                    shall be considered an Administrative Signing Fee); and

               (ii) shall commence annual maintenance fees of        *
                            *        due on January 1 of each year following the
                    financing date.

          (c)  LICENSEE shall also pay to JOHNS HOPKINS a running royalty on
               Licensed Products during the Exclusive Period for such products
               as follows:

               (i)  For sales by LICENSEE and it Subsidiaries:

                    (1)  for reagent products,               *
                                    *          of Net Sales;        *
                                              *               of Net Sales; and
                                                 *

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

                    (2)  for diagnostic products,        *        of Net Sales;
                              *        of Net Sales; and        *
                              *   of Net Sales in excess of    *
                              *   ; and

                    (3)  for therapeutic products,           *
                            *  of Net Sales;       *     of Net Sales; and
                            *  of Net Sales in excess of     *
                            *  .

               (ii) for sales by sublicensees:

                    (1)  for reagents products, the greater of  *  of Net Sales
                         or       *            sublicense royalties received by
                         LICENSEE;

                    (2)  for diagnostic products, the greater of  *   of Net
                         Sales or    *        of          *        sublicense
                         royalties received by LICENSEE; and

                    (3)  for therapeutic products, the greater of    *    of Net
                         Sales or       *       of sublicense royalties received
                         by LICENSEE.

          (d)  LICENSEE shall pay to JOHNS HOPKINS  *  of initial License Fees
               (excluding all other forms of payment including, but not limited
               to, research funding) LICENSEE receives from all sublicensees.

          (e)  During the nonexclusive period for any Licensed Product, LICENSEE
               shall pay to JOHNS HOPKINS a running royalty on the Net Sales of
               such Licensed Products sold by LICENSEE, its Subsidiaries and its
               sublicensees equal to    *       the royalty set forth in (c)
               above for sales during the Exclusive Period.

     4.2  No multiple royalties shall be payable because any Licensed Product,
its

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* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   11
manufacture, lease or sale are or shall be covered by more than one patent
application or patent licensed under this Agreement or acquired under a license
pursuant to Paragraph 2.6 or 2.7. If a Licensed Product is covered by this
Agreement and a License Agreement pursuant to Paragraph 2.6 and/or 2.7 the
highest applicable royalty rate will apply. If, as to any Licensed Product,
LICENSEE is required to pay a royalty to any third party, the royalty rates set
forth in Paragraph 4.1 shall be reduced by        *       of the royalty rates
paid to the third party, but in no event shall the rates in Paragraph 4.1 be
reduced by more than          *         .

     4.3  Royalty payments shall be paid in United States dollars in Baltimore,
Maryland, at the time and in the manner provided in Article V below. If any
currency conversion shall be required in connection with the payment of
royalties hereunder, such conversion shall be made by using the exchange rate
prevailing at the Bank of America Corporation on the last business day of the
calendar quarterly reporting period to which such royalty payments relate.

     4.4  At the end of the first calendar year beginning after the first
commercial sale of a Licensed Product by LICENSEE, a subsidiary, or a
     *     , and each calendar year thereafter (hereinafter "Royalty Year"),
LICENSEE shall pay JOHNS HOPKINS the greater of royalties payable pursuant to
Paragraph 4.1(c) or a minimum annual royalty according to the following
schedule:

  At the End of the First Royalty Year  -               *

  At the End of the Second Royalty Year -               *

  At the End of the Third and Through
  the Ninth Royalty Year                -               *

  At the End of the Tenth and Each
  Subsequent Royalty Years              -               *

Said minimum annual royalty shall be paid to JOHNS HOPKINS within thirty (30)
days of

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* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
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the end of each Royalty Year. Failure by LICENSEE to pay the minimum annual
royalty required by this Paragraph 4.4 shall give JOHNS HOPKINS the right to
convert the exclusive license granted by this Agreement to a nonexclusive
license.

                        ARTICLE V - REPORTS AND RECORDS

     5.1  LICENSEE shall keep full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to JOHNS HOPKINS hereunder. Said books of account shall be kept
at LICENSEE's principal place of business or the principal place of business of
the appropriate Division of LICENSEE to which this Agreement relates. Said
books and the supporting data shall be open at all reasonable times for five
(5) years following the end of the calendar year to which they pertain, to the
inspection of JOHNS HOPKINS or its agents for the purpose of verifying
LICENSEE's royalty statement or compliance in other respects with this
Agreement.

     5.2  Commencing with the first commercial sale of a Licensed Product,
LICENSEE, within sixty (60) days after March 31, June 30, September 30 and
December 31, of each year, shall deliver to JOHNS HOPKINS true and accurate
reports, giving such particulars of the business conducted by LICENSEE, its
Subsidiaries and its sublicensees during the preceding three-month period under
this Agreement as shall be pertinent to a royalty accounting hereunder. These
shall include at least the following:

          (a)  All Licensed Products manufactured and sold.

          (b)  Total billings for Licensed Products sold.

          (c)  Accounting for all Licensed Processes used or sold.

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               (d)  Deductions applicable as provided in Paragraph 1.6.

               (e)  Total royalties due.

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

Where reasonably practical, LICENSEE shall, to the best of its knowledge,
subcategorize the Licensed Products sold so as to assign the royalties paid to
individual patent(s) of Appendix A. Such subcategorization shall be for JOHNS
HOPKINS administrative purposes only and shall in no way affect any obligations
of any part or the amounts of royalties to be paid under this Agreement. Until
there has been a first commercial sale of a Licensed Product, the LICENSEE
shall give an annual report of LICENSEE's efforts to achieve a first commercial
sale.

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

     5.4  The royalty payments set forth in this Agreement shall, if overdue,
bear interest until payment at a per annum rate           *            the
prime rate in effect at Bank of America on the due date. The payment of such
interest shall not foreclose JOHNS HOPKINS from exercising any other rights it
may have as a consequence of the lateness of any payments.

                        ARTICLE VI - PATENT PROSECUTION

     6.1  JOHNS HOPKINS represents that Appendix A, as amended from
time-to-time, contains an accurate and complete listing of the patent
applications and issued patents included within the Patent Rights. JOHNS
HOPKINS agrees to promptly amend Appendix A within thirty (30) days of any new
Invention made pursuant to the ATP.

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* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
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     6.2  JOHNS HOPKINS warrants that it has the right to grant the rights and
licenses granted herein to LICENSEE free and clear of all liens and
encumbrances, except to the extent set forth in Article XII.

     6.3  Within ninety (90) days of the completion of the financing set forth
in Paragraph 4.1(b), LICENSEE shall reimburse JOHNS HOPKINS for
previously-incurred as well as future expenses paid to third parties relating
to drafting, filing, prosecuting and maintaining U.S. and foreign patent
applications and patents included in the Patent Rights; provided, however, if
such reimbursement amount exceeds Fifty Thousand Dollars ($50,000), then the
amount above $50,000 shall be due twenty-four (24) months from the date of the
initial payment, JOHNS HOPKINS shall, on LICENSEE's request and expense, file,
prosecute, and maintain appropriate additional foreign patent applications and
patents directed to the inventions which will be included in the Patent Rights
and LICENSEE shall be licensed thereunder. If LICENSEE elects not to pay
expenses associated with filing, prosecuting, and maintaining U.S. and foreign
patent applications and patents directed to the inventions, JOHNS HOPKINS may
file, prosecute, and maintain such U.S. and foreign patent applications and
patents at its own expense and LICENSEE shall not be licensed thereunder.

     6.4  With regard to substantive correspondence, patent applications and
patents included in the Patent Rights, JOHNS HOPKINS shall in a timely manner
send LICENSEE (a) copies of all proposed patent applications and correspondence
to the respective patent office, give LICENSEE an opportunity to comment
thereon, and incorporate such changes as reasonably requested by LICENSEE; and
(b) copies of correspondence from the patent office.

     6.5  JOHNS HOPKINS shall reasonably respond to LICENSEE's request for

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change in outside patent counsel.

                           ARTICLE VII - INFRINGEMENT

     7.1  Each party to this Agreement shall promptly notify the other party in
writing of any alleged infringement and of any available evidence of
infringement by a third party of any patents within the Patent Rights of which
it becomes aware.

     7.2  During the term of this Agreement, LICENSEE shall have the right, but
shall not be obligated, to prosecute at its own expense any such infringements
of the Patent Rights and, in furtherance of such right, LICENSEE hereby agrees
that JOHNS HOPKINS may join LICENSEE as a party plaintiff in any such suit,
without expense to JOHNS HOPKINS, provided, however, that such right to bring
an infringement action shall remain in effect only for so long as the license
granted herein remains exclusive. No settlement, consent judgment or other
voluntary final disposition of the suit may be entered into without the consent
of JOHNS HOPKINS, which consent shall not unreasonably be withheld. LICENSEE
shall indemnify JOHNS HOPKINS against any order for costs or other expenses
that may be made against JOHNS HOPKINS in such proceedings. The total cost of
any such infringement action commenced or defended solely by LICENSEE shall be
borne by LICENSEE, and LICENSEE shall keep any recovery damages for past
infringement derived therefrom, after payments to JOHNS HOPKINS of the royalty
rate set forth in Paragraph 4.1(c)(i) applied to the sum of the recovery,
damages or any other amount received in any form of disputation and/or in
settlement of any infringement or alleged infringement of the Patent Rights
remaining after LICENSEE has reimbursed itself for all costs, including legal
costs, associated with the prosecution.

     7.3  If within six (6) months after having been notified of any alleged
infringement,

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LICENSEE shall have been unsuccessful in persuading the alleged infringer to
desist and shall not have brought and shall not be diligently prosecuting any
infringement action, or if LICENSEE shall notify JOHNS HOPKINS at any time
prior thereto of its intention not to bring suit against any alleged
infringer, then, JOHNS HOPKINS shall have the right, but shall not be obligated
to prosecute at its own expense any infringement of the Patent Rights, and
JOHNS HOPKINS may, for such purposes, use the name of LICENSEE as party
plaintiff without expense to LICENSEE, and JOHNS HOPKINS shall keep any
recovery or damages derived therefrom.

     7.4  In the event that a declaratory judgment action alleging invalidity
or noninfringement of any of the Patent Rights shall be brought against
LICENSEE, JOHNS HOPKINS at its option, shall have the right, within thirty (30)
days after commencement of such action, to intervene and participate in the
defense of the action at their own expense.

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

     7.6  LICENSEE, during the Exclusive Period of this Agreement, shall have
the sole right in accordance with the terms and conditions herein to sublicense
any alleged infringer under the Patent Rights to avoid future infringements.
Amounts received from any such sublicensee constituting retroactive royalties
shall be considered amounts received in settlement and accounted for under
Paragraph 7.2 above. Otherwise, amounts received from such sublicensee shall be
treated in accordance with Paragraph

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4.1(c) above.

                            ARTICLE VIII - LIABILITY

     8.1  Inasmuch as JOHNS HOPKINS will not, under the provisions of this
Agreement or otherwise, have control over the manner in which LICENSEE, or its
Subsidiaries or its agents or its sublicensees or those operating for its
account, or third parties who purchase Licensed Products from any of the
foregoing entities, practice any invention encompassed by the license granted
herein, LICENSEE shall defend and hold JOHNS HOPKINS, it trustees, officers,
employees, students, and affiliates harmless as against any judgments, fees,
expenses or other costs (including reasonable attorneys' fees) arising from or
incidental to any product liability or other lawsuit brought as a consequence
of the practice of said invention by any of the foregoing entities, whether or
not JOHNS HOPKINS is named as party defendant in any such lawsuit. LICENSEE
shall have the right to defend such a product liability lawsuit with counsel of
its own choosing and JOHNS HOPKINS will cooperate in the defense of such action
at LICENSEE's expense. Practice of the Invention encompassed by the license
granted herein by a Subsidiary or an agent or a sublicensee, or a third party
on behalf of or for the account of LICENSEE or by a third party who purchases
Licensed Products from any of the foregoing shall be considered LICENSEE's
practice of said invention for purposes of this Paragraph 8.1. The provisions
of this Paragraph 8.1 shall survive termination of this Agreement.

     8.2  LICENSEE shall maintain or cause to be maintained, prior to the first
planned use of Licensed Products or Licensed Processes in humans, product
liability insurance or other protection reasonably acceptable to JOHNS HOPKINS
which shall

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protect LICENSEE and JOHNS HOPKINS in regard to events covered by Paragraph 8.1
above. LICENSEE will disclose to JOHNS HOPKINS the amount and kind of product
liability insurance it obtains, will give JOHNS HOPKINS a copy of the
certificate of insurance, and will increase or change the kind of insurance at
the reasonable request of JOHNS HOPKINS, provided such insurance is available
to LICENSEE at commercially reasonable rates.

     8.3  Except as otherwise expressly set forth in this Agreement, JOHNS
HOPKINS makes no representations and extend no warranties of any kind, either
express or implied, including but not limited to warranties of merchantability,
fitness for a particular purpose, and validity of Patent Rights claims, issued
or pending.

     8.4  No liability under this Agreement shall result to a party from delay
in performance caused by force majeure, that is, circumstances beyond the
reasonable control of the party affected thereby, including, without
limitation, acts of God, earthquake, fire, flood, war, government regulations,
labor unrest, or shortage of or an inability to obtain material or equipment.

                          ARTICLE IX - EXPORT CONTROLS

     It is understood that JOHNS HOPKINS is subject to United States laws and
regulations controlling the export of technical data, computer software,
laboratory prototypes and other commodities (including the Arms Export Control
Act, as amended and the Export Administration Act of 1979), and that their
obligations hereunder are contingent on compliance with applicable United
States export laws and regulations. The transfer of certain technical data and
commodities may require a license from the cognizant agency of the United
States Government and/or written assurances by

                                      -18-
<PAGE>   19
LICENSEE that LICENSEE shall not export data or commodities to certain foreign
countries without prior approval of such agency. JOHNS HOPKINS neither
represents that a license shall not be required nor that, if required, it shall
be issued.

                          ARTICLE X - NON-USE OF NAMES

     LICENSEE shall not use the name of JOHNS HOPKINS, nor any of its
employees, or any adaptation thereof, in any advertising, promotional or sales
literature without prior written consent obtained from JOHNS HOPKINS in each
case, except that LICENSEE may state that it is licensed by JOHNS HOPKINS under
one or more of the patents and/or applications comprising the Patent Rights.

                            ARTICLE XI - ASSIGNMENT

     This Agreement may not be assigned, in whole or in part, except in
conjunction with the sale of the entire business, or an operating business
division, of LICENSEE to which the Patent Rights relate, without the prior
consent of JOHNS HOPKINS, which consent shall not be unreasonably withheld.

                        ARTICLE XII - GOVERNMENT RIGHTS

     12.1 Pursuant to 35USC202, JOHNS HOPKINS has elected to take all rights,
title and interest in the inventions forming the basis of the Patent Rights.

     12.2 LICENSEE hereby specifically agrees to cooperate with JOHNS HOPKINS
in abiding by the terms and conditions imposed on JOHNS HOPKINS pursuant to
35USC200-211 and the regulations promulgated thereunder.

                                       19

<PAGE>   20
     12.3  JOHNS HOPKINS warrants that it has compiled with and will continue
to comply with all duties and obligations running from JOHNS HOPKINS to the
Government pursuant to 35USC200-211 and the regulations promulgated thereunder.

     12.4  LICENSEE agrees to manufacture in the United States those Licensed
Products which are sold and used in the United States.

                           ARTICLE XIII - TERMINATION

     13.1  This Agreement shall terminate if LICENSEE dissolves, unless this
Agreement has been assigned prior to the date of dissolution.

     13.2  Should LICENSEE fail to pay JOHNS HOPKINS royalties due and payable
hereunder, JOHNS HOPKINS shall have the right to terminate this Agreement on
sixty (60) days' written notice, unless LICENSEE shall pay JOHNS HOPKINS within
the sixty (60) day period, all such royalties and interest due and payable.
Upon the expiration of the sixty (60) day period, if LICENSEE shall not have
paid all such royalties and interest due and payable, the rights, privileges
and license granted hereunder shall terminate.

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

     13.4  LICENSEE shall have the right to terminate this Agreement at any
time on six (6) months' notice to JOHNS HOPKINS and upon payment of all amounts
due JOHNS

                                       20

<PAGE>   21
HOPKINS.

     13.5  Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination. LICENSEE and any Subsidiary
and sublicensee thereof may, however, after the effective date of such
termination, sell all Licensed Products, and complete Licensed Products in the
process of manufacture at the time of such termination and sell the same,
provided that LICENSEE shall pay to JOHNS HOPKINS the royalties thereon as
required by Article IV of this Agreement and shall submit the reports required
by Article V hereof on the sales of Licensed Products.

     13.6  Upon termination of this Agreement for any reason during the
Exclusive Period, any sublicensee not then in default shall have the right to
seek a license from JOHNS HOPKINS under the same terms and conditions as set
forth hereunder.

     13.7  The provisions of Paragraph 8.1, Article IX, and Article X shall
survive termination of this Agreement.

            ARTICLE XIV - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

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

     In the case of JOHNS HOPKINS:

          Johns Hopkins University
          300 Whitehead Hall
          Charles and 34th Streets
          Baltimore, Maryland  21218
          Attention: Edwin T. Yates, Ph.D.

                                       21

<PAGE>   22
                                    [Blank]

                                       22
<PAGE>   23
With a copy to:

     Associate Dean for Corporate Affairs
     Johns Hopkins University
     School of Hygiene and Public Health
     111 Market Place, Suite 840
     Baltimore, Maryland  21202-6709
     Attention: Alan M. Goldberg, Ph.D.

In the case of LICENSEE:

     Edward Lanphier
     Sangamo BioSciences, Inc.
     P.O. Box 334
     Ross, California 94957

With a copy to:

     Stephan Dolezalek, Esq.
     Brobeck, Phleger & Harrison
     Two Embarcadero Place
     2200 Geng Road
     Palo Alto, California 94303

                     ARTICLE XV - MISCELLANEOUS PROVISIONS

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

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

                                       23

<PAGE>   24
     15.3 The provisions of this Agreement are severable, and in the event that
any provisions of this Agreement shall be determined to be invalid or
unenforceable under any controlling body of the law, such invalidity or
unenforceability shall not in any way affect the validity or enforceability of
the remaining provisions hereof.

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

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

     15.6 Claims, disputes, or controversies concerning the validity,
construction, or effect of any patent licensed hereunder shall be resolved in
any court having jurisdiction thereof.

     15.7 A grant application under the Advanced Technology Program was filed on
March 29, 1995 (Appendix C). If a grant is awarded, any Invention made pursuant
thereto where an investigator at JOHNS HOPKINS is the sole inventor or a
coinventor shall be assigned to LICENSEE. Such Invention shall be assigned
hereunder and shall thereafter fall within the definition of Patent Rights and
therefore shall be subject to Sections 3.2, 3.3 and 3.4 hereof and to the
royalty payments required by Sections 4.1(c)(i), 4.1(d) and 4.4 hereof as part
of the rights licensed hereunder.

                                      24
<PAGE>   25
     IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
and duly executed this Agreement the day and year set forth below.

JOHNS HOPKINS UNIVERSITY

By:
    -------------------------------------------------------
    Herbert R. Hansen, Jr., MBA, CPA
    Senior Associate Dean, Finance and Administration

Date:
      ----------------------------------

                                       OR

By: /s/ Alan M. Goldberg
    -------------------------------------------------------
    Alan M. Goldberg, Ph.D.
    Associate Dean, Corporate Affairs

Date: July 10th, 1995
      ----------------------------------

                                      AND

By: /s/ John Groopman
    -------------------------------------------------------
    John Groopman, Ph.D.
    Chairman, Environmental Health Sciences

Date: 7/10/95
      ----------------------------------

SANGAMO BIOSCIENCES, INC.

By: /s/ Edward O. Lanphier II
    -------------------------------------------------------
    Edward O. Lanphier II
    President

Date: June 30, 1995
      ----------------------------------

                                       25
<PAGE>   26
                                   APPENDIX A

PATENTS:

                                   APPENDIX B

INVENTION DISCLOSURES:

                                   APPENDIX C

ADVANCED TECHNOLOGY PROGRAM GRANT PROPOSAL:

                                   APPENDIX D

RESEARCH AGREEMENT:

                                       26
<PAGE>   27
                          THE JOHNS HOPKINS UNIVERSITY
                            BALTIMORE, MD 21218-2696

Nina M. Siegler, C.F.A.                           Office of Technology Transfer
Director                                                708 N Wyman Park Center
                                                         3400 N. Charles Street
                                                                 (410) 516-8137
                                                             Fax (410) 516-7811

                                AMENDMENT NO. 1

                        TO THE LICENSE AGREEMENT between

             Johns Hopkins University and Sangamo Biosciences, Inc.

     This Amendment No. 1, dated June 1, 1998 ("Effective Date") to the License
Agreement dated June 29, 1995 concerning the licensing and other matters of
patent properties referred to in the License Agreement as "Functional Domains in
Flavobacterium Okeanokoites (FOK1) Restriction Endonuclease", US Patent
Application Serial Number 07/862,831, filed April 3, 1992, JHU Reference C-1191,
(Dr. Srinivasan Chandrasegaran, Inventor) and other Patent Rights, is entered
into between Johns Hopkins University, a not-for-profit educational institution
having an address at 3400 N. Charles Street, Baltimore, MD ("JOHNS HOPKINS" or
"JHU") and Sangamo Biosciences, Inc., a corporation of the State of Delaware and
having a principal place of business at Point Richmond Tech Center, 501 Canal
Blvd, Suite A-100, Richmond, CA ("LICENSEE").

This document amends the License Agreement by the following:

1.   In Paragraph 4.1, delete in its entirety paragraph 4.1.(c). Replace with
     new Paragraph 4.1.(c):

               4.1.(c)  LICENSEE shall also pay to JOHNS HOPKINS a running
               royalty on Licensed Products as follows:

                        (i) for therapeutic products,        *         of Net
                            Sales
                        (ii) for diagnostic products,        *         of Net
                             Sales
                        (iii) for reagent products,            *            of
                              Net Sales

2.   Delete in its entirety Paragraph 4.4, and replace with the following new
     Paragraph 4.4:

               4.4  LICENSEE shall pay to JOHNS HOPKINS a minimum annual royalty
               according to the following schedule and within thirty (30) days
               of the end of the calendar year:

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   28
Amendment No. 1
Sangamo License Agreement
page 2

                         1999,2000         *    per year
                         2001-2005         *    per year
                         2006 and until termination    *    per year

               Failure by LICENSEE to pay the minimum annual royalty required by
               this Paragraph 4.4 shall give JOHNS HOPKINS the right to convert
               the exclusive license granted by this Agreement to a nonexclusive
               license.

3.   Add new Paragraph 4.5 as follows:

               4.5  For the rights, privileges and license granted by Amendment
               No. 1, dated ______, LICENSEE agrees to pay to JOHNS HOPKINS the
               sum of                      *                            ,
               payable in equal installments within eighteen months of the
               Effective Date of Amendment No. 1.

4.   Add new Paragraph 6.6 as follows:

               6.6  LICENSEE shall have the right, but not the obligation, to
               assume primary responsibility for patent prosecution. JOHNS
               HOPKINS hereby agrees to reasonably cooperate with the transfer
               of case files, execution of appropriate documents and any other
               matters needed for LICENSEE to assume such responsibility. In
               such case, LICENSEE shall provide to JHU copies of all
               correspondence from and to the US PTO and international
               equivalents with sufficient time to allow for comment by JHU.
               LICENSEE shall endeavor to accommodate JHU's comments into a
               reasonable patent prosecution strategy. In no case shall LICENSEE
               abandon any application or patent in any country without prior
               approval from JHU. In any country where the LICENSEE elects not
               to have a patent application filed or to pay expenses associated
               with filing, prosecuting, or maintaining a patent application or
               patent, LICENSEE shall notify JHU allowing at least thirty (30)
               days for JHU to assume such responsibilities. JHU may file,
               prosecute, and/or maintain a patent application or patent at its
               own expense and for its own exclusive benefit and the LICENSEE
               thereafter shall not be licensed under such patent or patent
               application. Upon termination of this Agreement, LICENSEE shall
               immediately transfer all case files, execute any appropriate
               documents related to patent matters and cooperate in any other
               matters needed for JHU to assume responsibility for patent
               prosecution.

                                       2

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   29
Amendment No. 1
Sangamo License Agreement
page 3

5.   In Paragraph 13.7, add after "Article X", insert, "Paragraph 4.5 and
Paragraph 6.6".

6.   Add new Paragraph 15.8 as follows:

               15.8  With respect to "Methods for Inactivating Target DNA and
               For Detecting Conformation Change in a Nucleic Acid", Inventor,
               Srinivasan Chandrasegaran, US Patent Application SN 08/647,449,
               Filed 5/7/96 (JHU Docket: C-1288), LICENSEE hereby acknowledges
               and agrees that Dr. Chandrasegaran is the sole inventor of this
               property.

7.   In Appendix A, add:

               5.    "General Method to Clone Hybrid Restriction Endonucleases
                     Using lig Gene"
                     Srinivasan Chandrasegaran,
                     US Patent Application SN 08/575,361          Filed 12/24/95
                     JHU Docket: C-1274

               6.    "Methods for Inactivating Target DNA and For Detecting
                     Conformation Change in a Nucleic Acid"
                     Srinivasan Chandrasegaran,
                     US Patent Application SN 08/647,449          Filed 5/7/96
                     JHU Docket: C-1288

8.   Except as expressly modified by this Amendment No. 1, the License Agreement
     shall remain in full force and effect.

9.   In Paragraph 3.2(e) change it to read, "Within seven (7) years of the
     Effective Date of this Agreement, LICENSEE shall have made a commercial
     sale of at least one (1) Licensed Product."

                                       3
<PAGE>   30
Amendment No. 1
Sangamo License Agreement
page 4

     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly
executed and delivered as of the date first written above.

For Sangamo Biosciences, Inc.:

/s/ Edward O. Lanphier II                             7/16/98
--------------------------------------            ---------------
Edward O. Lanphier II                                  Date
President

For Johns Hopkins University:

/s/ Herbert R. Hansen, J.                             7/8/98
--------------------------------------            ---------------
Herbert R. Hansen, J., MBA, CPA                        Date
Senior Associate Dean, Finance and
Administration

Sangamo Amendment #1 (6/29/98)

                                       4
<PAGE>   31

Ms. Nina M. Siegler
Director, Office of Technology Transfer
Johns Hopkins University
708N Wyman Park Center
3400 N. Charles Street
Baltimore, MD 21218-2695

Dear Nina:

               As you know, the License Agreement between Johns Hopkins
University ("JHU") and Sangamo BioSciences, Inc. dated June 29, 1995, in Article
IV(a) at page 9, grants JHU certain rights to invest its own funds in investment
funding of Sangamo.

               Sangamo has filed a Registration Statement with the SEC for an
initial public offering ("IPO") which we expect will take place in late March or
April 2000. While we understand that Article IV(a) was intended to apply to
private financings prior to our IPO, Lehman Bros., our lead underwriter, has
asked us to have you confirm that paragraph (a) of Article IV will terminate
upon our IPO. In accordance with our telephone conversation on March 9, 2000, in
order to make it completely clear that Article IV(a) will not apply to our IPO
and thereafter Sangamo will pay JHU $25,000 upon receipt of a signed copy of
this letter and an additional $25,000 on September 15, 2000 in consideration for
the following amendment to the License Agreement and Agreement:

               Article IV(a) is hereby amended by adding the following sentence
               at the end of paragraph (a): "THE PROVISIONS OF THIS PARAGRAPH
               (a) WILL TERMINATE UPON THE SALE BY THE COMPANY OF ITS COMMON
               STOCK IN ITS INITIAL PUBLIC OFFERING MADE PURSUANT TO A
               REGISTRATION STATEMENT DECLARED EFFECTIVE BY THE SECURITIES AND
               EXCHANGE COMMISSION."

JHU acknowledges that Sangamo has complied with all of the provisions of Article
IV(a).

               Please sign a copy of this letter and return it to me at your
earliest convenience. We appreciate your cooperation in helping us become a
public company.

                                   Sincerely,

                                   Edward Lanphier

THE FOREGOING IS AGREED TO:
JOHNS HOPKINS UNIVERSITY

By:
   --------------------------------
Dated:                       , 2000
      ----------------------<PAGE>   1
                                                                  EXHIBIT 10.14

                            MEDICAL RESEARCH COUNCIL

                                     -AND-

                              SANGAMO BIOSCIENCES

                                 L I C E N C E

                                      FOR

                              ZINC FINGERS PATENT
<PAGE>   2

                                                                   EXHIBIT 10.14

THIS AGREEMENT is made the 1 day of September One thousand nine hundred and
ninety six between MEDICAL RESEARCH COUNCIL of 20 Park Crescent, London W1N 4AL
(hereinafter called "MRC" which expression includes its successors and assigns)
of the one part and Sangamo Biosciences of 950 Marina Village Parkway, Alameda,
CA 94501, U.S.A. (hereinafter called "the Licensee" which expression includes
its successors and permitted assigns) of the other part.

WHEREAS:-

(A)  MRC is the proprietor of certain applications for patent rights in respect
     of methods of selecting and designing polypeptides comprising zinc finger
     binding motifs and polypeptides made by these methods.

(B)  The Licensee wishes to obtain a licence to the applications from MRC, and
     MRC is willing to grant such licence on the terms, and subject to the
     conditions, which follow.

NOW IT IS HEREBY AGREED as follows:-

1.   Definitions

     (1)  In this Agreement the following words and expression shall be
         construed as follows:-

     "Affiliate" shall mean any corporation, company, partnership or other
     entity which directly or indirectly controls, is controlled by or is under
     common control with either party to this Agreement.

     "Control" means the ownership of more than 50% of issued share capital or
     the legal power to direct or cause the direction of the general management
     and policies of the party in question.

                                       1
<PAGE>   3
     "THE EFFECTIVE DATE" shall mean the date of execution above written.

     "NET INVOICE PRICE" shall mean in relation to a Product sold by Licensee or
     sub-licensee of Licensee, the price invoiced by Licensee (or sub-licensee
     as appropriate) to the relevant purchaser (or in the case of a sale or
     other disposal otherwise than at arm's length, the price which would have
     been invoiced in a bona fide arm's length contract of sale), but deducting
     the costs of packing, transport and insurance, customer duties, any credits
     actually given for returned or defective Products, normal trade discounts
     actually given, and sales taxes, VAT or other similar tax charged on and
     included in the invoice price to the purchaser.

     "THE PATENT RIGHTS" shall mean:-

          (a)  the patent applications short particulars of which are set out in
               Schedule 1;
          (b)  all patents which may be granted pursuant to any of the foregoing
               applications;
          (c)  any patents which derive from the foregoing patent applications
               including any divisions, renewals, continuations,
               continuations-in-part, extensions or reissues thereof.

     "THE PRODUCTS" shall mean products whose development (including use of the
     methods claimed in the Patent Rights), manufacture use or sale would, but
     for this licence, infringe the Patent Rights.

     (2)  In this Agreement the singular shall where the context so permits
          include the plural and vice versa.

2.   Commencement

     This Agreement shall be deemed to have come into force on the Effective
     Date and shall be read and construed accordingly.

                                       2
<PAGE>   4
3.   Grant of Rights

     (1) MRC agrees to grant to the Licensee a non-exclusive worldwide licence
         under the Patent Rights to develop manufacture use and sell Products.

     (2) The Licensee shall have the right to grant sub-licenses of the rights
         granted to it under this Agreement but only in conjunction with a
         licence of Licensee's complementary technology and in a defined field
         equivalent to that licensed technology. Any such sub-license shall be
         granted on and shall contain substantially similar terms and conditions
         as the clauses of this Agreement including, but without limitation, the
         terms herein relating to indemnity.

     (3) Prior to the first anniversary of the Effective Date MRC shall review
         the scope and desirability for entering negotiations with Licensee for
         conversion of this agreement to an exclusive licence in whole or in
         part, and MRC shall inform Licensee on or about the first anniversary
         of the Effective Date whether it wishes to enter such negotiations. For
         the avoidance of doubt, neither party is under any obligation to enter
         such negotiations, or committed to accept specific terms for conversion
         of an exclusive or partially exclusive licence.

4.   Payments

     (1) In consideration for the non-exclusive licence granted pursuant to
         Clause 3.1 hereof the Licensee shall pay to MRC the following sums:

         (i)         *      to be paid upon               *              .

         (ii)        *      to be paid on the 1st anniversary of the Effective
               Date.

         (iii)       *      to be paid on the 2nd anniversary of the Effective
               Date.

         (iv)        *      to be paid on the 3rd anniversary of the Effective
               Date.

                                       3

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

<PAGE>   5

(2)  In further consideration for the licence granted pursuant to Clause 3.1
     hereof the Licensee shall pay to MRC the following milestone payments:-

      (i)        *       to be paid on

                                       *
           relating to products derived in whole or in part from the
           technology described and claimed in the Patent Rights.

     (ii)   *   to be paid on

                                       *
           relating to products derived in whole or in part from the technology
           described and claimed in the Patent Rights.

    (iii)   *   to be paid on

                                       *
           relating to products derived in whole or in part from the technology
           described and claimed in the Patent Rights.

(3)  In further consideration of the licence granted by MRC to Licensee under
     Clause 3(1), Licensee shall pay to MRC a royalty of  *  of the Net
     Invoice Price on all sales of Products by Licensee or any Affiliate or any
     sub-licensee where the Products are either manufactured and/or sold in a
     country where a patent under the Patent Rights is granted valid and
     subsisting at the date of such sale.

(4)  If the Licensee is required to pay total royalties in excess of   *   of
     Net Invoice Price to parties other than MRC the royalty payable to MRC may
     be reduced by the amount of royalty in excess of   *   payable to such
     other parties but in no event shall the royalty payable to the MRC be
     reduced by      *       from the royalty rate specified in Clause 4(3). If
     the Licensee avails itself of the provision of this paragraph, the Licensee
     agrees to provide the MRC with proof of such royalties paid to other
     parties.

                                       4

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   6
(5)  Licensee agrees to keep true and accurate records and books of account
     containing all data necessary for the calculation of the milestone
     payments and royalties payable to MRC under Clause 4(2) and 4(3). Such
     records and books of account shall upon reasonable notice having been
     given by MRC be open at all reasonable times during business hours for
     inspection by MRC or its duly authorised representative.

(6)  Licensee shall prepare a statement in respect of each calendar quarter of
     this Agreement which shall show for the calendar quarter in question the
     quantity of Products manufactured and sold by the Licensee and
     sub-licensees in each country and the Net Invoice Price of each Product so
     sold and the royalty due to MRC thereon pursuant to Clause 4(3) above. Such
     statement shall be submitted to MRC within 60 days following the end of the
     calendar quarter or part thereof to which it relates together with a
     remittance for the royalties due to MRC. If MRC shall give notice to
     Licensee within 60 days of the receipt of any such statement that it does
     not accept the same such statement shall be certified by an independent
     chartered accountant appointed by agreement between the parties or, in
     default of agreement within 14 days, by the President for the time being of
     the Institute of Chartered Accountants of England and Wales in London.
     Licensee shall make available all books and records required for the
     purpose of such certification at reasonable times during normal business
     hours and the statement so certified shall be binding between the parties.
     The costs of such certification shall be the responsibility of MRC if the
     certification shows the original statement to have been accurate and
     otherwise shall be the responsibility of Licensee. Following any such
     certification the parties shall make any adjustments necessary in respect
     of the royalties already paid to MRC in relation to the period in question.

(7)  The Licensee shall pay royalties to MRC free and clear of and without
     deduction or deferment in respect of any demand, set-off, counterclaim or
     other dispute and so far as is legally possible such payment shall be made
     free and clear of any taxes imposed by or under the authority of any
     government or public authority and in particular but

                                       5

<PAGE>   7
          without limitation where any sums due to be paid to MRC hereunder are
          subject to any withholding or similar tax, the Licensee shall pay such
          additional amount as shall be required to ensure that the net amount
          received by MRC hereunder will equal the full amount which would have
          been received by it had not such tax been imposed or withheld. The
          Licensee and, without prejudice to the foregoing, MRC shall use their
          best endeavors to do all such lawful acts and things and to sign all
          such lawful deeds and documents as will enable the Licensee to take
          advantage of any applicable legal provision or any double taxation
          treaties with the object of paying the sums due to MRC without
          imposing or withholding any tax.

          Sums are expressed in this agreement as exclusive of any value added
          tax (VAT) which might be applicable. MRC agrees to provide Licensee
          with a VAT invoice in respect of every payment affected by VAT.

     (8)  Where MRC does not receive payment of any sums due to it within the
          period specified hereunder in respect thereof interest shall accrue on
          the sum outstanding at the rate of * per month calculated on a daily
          basis without prejudice to MRC right to receive payment on the due
          date therefor.

5.   Patent Prosecution and Infringement

     (1)  MRC shall be responsible for seeking issuance and maintenance of the
          Patent Rights.

     (2)  If the Licensee becomes aware of a suspected infringement of the
          Patent Rights it shall notify MRC giving full particulars thereof. If
          the alleged infringement consists of any act which (if done by the
          Licensee) would be within the scope of the licences granted under this
          Agreement MRC and the Licensee shall (within a reasonable time of the
          said notification) consult together with a view to agreeing upon a
          course of action to be pursued.

                                       6

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   8
6.   Term and Termination

     (1)  Subject as hereinafter provided this Agreement and the licence granted
          pursuant thereto shall continue in force in each territory during the
          subsistence of the last to expire of the Patent Rights.

     (2)  MRC may terminate this Agreement and the said licences forthwith by
          notice to the Licensee to that effect upon the happening of any of the
          following events:-

          (i)  if the Licensee fails to perform or observe any of the
               obligations on its part to be performed or observed and if the
               breach is one capable of remedy has not been remedied within
               three (3) months of the giving of a notice informing the Licensee
               of such breach;

          (ii) if the Licensee files a voluntary petition in bankruptcy or
               applies to any Tribunal for a Receiver Trustee or similar officer
               to be appointed by any Court or Executive Department to liquidate
               or conserve the Licensee or any substantial part of its property
               or assets due to insolvency or to the threat thereof or if the
               Licensee suffers any trusteeship or receivership to continue
               undischarged for a period of sixty days or suffers any similar
               procedure for the relief of distressed debtors entered into by
               the Licensee voluntarily or involuntarily or if the Licensee is
               otherwise divested of its assets for a period of sixty days or
               makes a general assignment for the benefit of its creditors;

     (3)  The Licensee may terminate this Agreement and the Licences granted
          pursuant hereto by giving to MRC 6 months notice to that effect. Such
          termination shall be without prejudice to the right of MRC to enforce
          the Patent Rights in the event of subsequent manufacture of Products
          by the Licensee.

     (4)  Termination of this Agreement or of the said Licences shall be without
          prejudice to any rights of either party against the other which may
          have accrued up to the date of

                                       7

<PAGE>   9
          such termination and the licensee shall pay to MRC the appropriate
          royalties hereunder on all stocks of the Products (on which royalties
          have not already been paid) held at the date of termination by the
          Licensee or any person engaged by the same to manufacture the Products
          and shall thereafter be free to sell such products on which royalty
          has been paid.

7.   Warranties

     (1)  MRC hereby represents and warrants that MRC owns the Patent Rights or
          is otherwise authorised to licence the Patent Rights to the Licensee.

     (2)  Nothing in this Agreement or in any licences to be granted pursuant
          thereto shall be construed as a representation or warranty that any of
          the said Patent Rights are valid or that any development manufacture
          use sale or other disposal of the Products is not an infringement of
          any patents or other rights not vested in the MRC.

     (3)  The Licensee shall promote the sale of the Products of good marketable
          quality and shall use reasonable endeavours to meet the market demand
          therefore.

8.   Liability and Indemnity

     Licensee hereby undertakes and agrees to be solely responsible at its own
     cost and expense for dealing with and for any liability arising from any
     contractual tortious or other claims or proceedings concerning the Products
     or their development production marketing distribution or sale and in
     particular product liability claims or proceedings. Further, Licensee
     hereby grants MRC an indemnity against any loss damage costs or expense
     incurred or suffered by MRC arising out of any such claims or proceedings.

9.   Waiver

     The waiver by MRC of any breach default or omission in the performance or
     observance of

                                       8

<PAGE>   10
     any of the terms of this Agreement by the Licensee shall not be deemed to
     be a waiver of any other such breach default or omission.

10.  Notices

     Any notice consent or other communication authorised or required to be
     given hereunder or for the purposes hereof shall be in writing and be
     deemed to be duly given to MRC if left at or sent by recorded delivery or
     registered post addressed to its principal office and to the Licensee if
     left at or sent by recorded delivery or registered post to its principal
     place of business. Any such notice consent or other communication if served
     by post shall be deemed to have been given at the time when it would have
     been received in due course of the post.

11.  Non-assignability

     Save for an assignment to an Affiliate of the Licensee, the Licensee shall
     not be entitled to assign the benefit of this Agreement or any rights
     granted or to be granted under the Agreement.

12.  Non-Use of Names

     Licensee shall not use the name of MRC nor of any of its employees or
     agents in any advertising promotional or sales literature without obtaining
     the prior written consent of MRC in each case, except that Licensee may
     state that it is licensed by MRC under one or more patents and/or
     applications comprising the Patent Rights.

13.  Law and Jurisdiction

     This Agreement is to be read and construed in accordance with and governed
     by the Laws of England so far as the subject matter allows and the parties
     hereby submit to the jurisdiction of the English courts in relation to any
     dispute arising out of this Agreement.

                                       9
<PAGE>   11
In witness whereof the parties hereto have caused this Agreement to be executed
in the matter legally binding upon them by causing authorised representatives to
sign this Agreement.

Signed by:                                    /s/ Martin R. Wood, 21 August 1996
                                              ----------------------------------

For and on behalf of                                  Martin R. Wood Ph.D.
MEDICAL RESEARCH COUNCIL                       Head of Technology Transfer Group

Signed by:                                         /s/ Edward O. Lanphier
                                               ---------------------------------
For and on behalf of                                   EDWARD O. LANPHIER
SANGAMO BIOSCIENCES                                         PRESIDENT

                                       10

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