Document:

Exhibit 10.14

 

NON-EXCLUSIVE
LICENSE AGREEMENT

 

This
Non-Exclusive License Agreement (“Agreement”) is made and entered into as of
the 4th day of January, 2002 (the “EFFECTIVE DATE”), by and between Advanced
Cell Technology, Inc., a Delaware corporation with offices located at One
Innovation Drive, Worcester, Massachusetts 01605 (“ACT”), and Genetic Savings
& Clone, a California corporation with offices located at 3312 Longmire
Drive, College Station, Texas 77845 (“LICENSEE” or “GSC”) (ACT and LICENSEE
sometimes hereinafter referred to as the “parties”). As set forth below, the
University of Massachusetts, a public institution of higher education of the
Commonwealth of Massachusetts (the “University”), has agreed to certain
provisions of this Agreement.

 

WITNESSETH

 

WHEREAS,
ACT owns or has licensed with a sublicensable interest the PATENT RIGHTS (as
defined below); and

 

WHEREAS,
LICENSEE desires to obtain a nonexclusive license from ACT under the PATENT
RIGHTS upon the terms and conditions hereinafter set forth below; and

 

WHEREAS,
ACT is willing to grant such a license to LICENSEE upon the terms and
conditions set forth below;

 

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

 

ARTICLE 1
- DEFINITIONS

 

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

 

1.1                                 “LICENSEE” means
Genetic Savings & Clone, a California corporation with offices located at
3312 Longmire Drive, College Station, Texas 77845.

 

1.2                                 “LICENSED PRODUCT”
means any product or part thereof which:

 

(a)                                  is covered in whole
or in part by a VALID CLAIM of the PATENT RIGHTS; or

 

(b)                                 is manufactured by
using a process or method covered in whole or in part by a VALID CLAIM of the
PATENT RIGHTS.

 

Without limiting the
generality of the foregoing, and by way of illustration but not limitation,
LICENSED PRODUCTS include cloned cattle (and any transgenic variants or
enhancements thereto) in the FIELD OF CATTLE, cloned goats, sheep, cats, dogs
or horses (and any transgenic variants or enhancements thereto) in the FIELD OF
OTHER ANIMALS, and cloned ENDANGERED SPECIES in the FIELD OF ENDANGERED
SPECIES, the progeny of all such

 

 

animals and semen, ova or
embryos obtained from such animals.

 

1.3                                 “LICENSED PROCESS”
means any process that is covered in whole or in part by a VALID CLAIM of the
PATENT RIGHTS.

 

1.4                                 “NET SALES” means
the gross amount of any and all cash payments, royalties, milestone payments,
success fees, equity payments and any other consideration of any kind whatsoever
received by (or which, directly or indirectly inures to the benefit of)
LICENSEE from any person or entity in consideration for the sale or provision
of LICENSED PRODUCTS or LICENSED PROCESSES in the pertinent FIELD OF USE less,
to the extent applicable, the following:

 

(a)                                  discounts allowed;

 

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

 

(c)                                  special packaging,
transportation and insurance prepaid or allowed; and

 

(d)                                 amounts allowed or
credited on returns.

 

1.5                                 “PATENT RIGHTS”
means the patents and patent applications identified in Exhibit A attached
hereto, all continuations, continuations-in-part, divisionals and foreign
filings in the TERRITORY related thereto, and any reissues, reexaminations,
extensions and substitutions.  The parties
agree that Exhibit A may be revised from time to time after the Effective Date
to reflect changes thereto.

 

1.6                                 “FIELD OF CATTLE”
means the cloning, development, making, using, selling, offering to sell,
importing or exporting of cloned cattle (as well as any transgenic variants or enhancements
thereto) or products that are composed of, made in or derived, extracted or
isolated from cloned cattle cells or tissues for the production of food or
fiber, and the rendering of services or uses that relate to the production of
such products.  Specifically excluded
from the FIELD OF CATTLE is the cloning of such animals for all purposes
related to veterinary or medical therapies, including, but not limited to, the
production of biopharmaceutical agents, proteins, peptides and polypeptides in
milk for pharmaceutical, nutraceutical or other use; provided, however,
LICENSEE may make transgenic cloned animals whereby gene therapy has been
employed to correct a particular medical or health defect in that animal.

 

1.7                                 “FIELD OF OTHER
ANIMALS” means the cloning, development, making, using, selling, offering to
sell, importing or exporting of goats, sheep, cats, dogs and horses (as well as
any transgenic variants or enhancements thereto) for personal, business or
commercial purposes.  Specifically
excluded from the FIELD OF OTHER ANIMALS is the cloning of such animals for all
purposes related to veterinary or medical therapies, including, but not limited
to, the production of biopharmaceutical agents, proteins, peptides and
polypeptides in milk for pharmaceutical, nutraceutical or other use; provided,
however, LICENSEE may make transgenic cloned animals whereby gene therapy has
been employed to correct a particular medical or health defect in that

 

2

 

animal.

 

1.8                                 “FIELD OF
ENDANGERED SPECIES” means the cloning, development, making, using, selling,
offering to sell, importing or exporting of ‘‘ENDANGERED SPECIES” for purposes of
researching, aiding, reproducing or assisting in the reproduction of such
ENDANGERED SPECIES.  For purposes of this
Agreement ENDANGERED SPECIES means any species that is (i) extinct or (ii)
classified as threatened, vulnerable or in danger of extinction throughout all
or a significant portion of its range and is classified under the guidelines of
the Convention of International Trade of Endangered Species of Wild Fauna and
Flora.  Notwithstanding Section 13.3
or any other applicable terms of this Agreement, in the event that LICENSEE
successfully clones an extinct species using a LICENSED PROCESS, LICENSEE and
ACT agree to negotiate in good faith as to whether ACT’s name or the LICENSED
PROCESS shall be referenced within any press releases describing the successful
cloning of the extinct species by LICENSEE.

 

1.9                                 “FIELDS OF USE”
means the FIELD OF CATTLE, the FIELD OF OTHER ANIMALS and the FIELD OF
ENDANGERED SPECIES (each sometimes referred to as a “FIELD OF USE”).

 

1.10                           “TERRITORY” means
the world, except for South America.

 

1.11                           “UMASS LICENSE”
means the Exclusive License Agreement between ACT and the University, dated April 16,
1996, as amended by the Amendment to Exclusive License Agreement dated September 1,
1999 and the Second Amendment to Exclusive License Agreement dated May 31,
2000, a copy of which is attached hereto as Exhibit B.

 

1.12                           “UMASS PATENT
RIGHTS” means PATENT RIGHTS licensed by ACT from the University under the UMASS
LICENSE.

 

1.13                           “VALID CLAIM” means
a claim of any issued and unexpired United States or foreign patent or patent
application within the PATENT RIGHTS which has not lapsed or become abandoned
or declared invalid 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 such appeal.

 

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

 

ARTICLE 2
- GRANT

 

2.1                                 ACT hereby grants
to LICENSEE and LICENSEE accepts, subject to the terms and conditions hereof, a
royalty bearing, nonexclusive license in the FIELDS OF USE to use the PATENT
RIGHTS to make, have made, use, sell, have sold and import LICENSED PRODUCTS
and to practice the LICENSED PROCESSES in the TERRITORY.  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.

 

3

 

2.2                                 LICENSEE
acknowledges, understands and agrees that the license granted herein does not
include the right to grant further sublicenses to or under the PATENT RIGHTS;
the license “to have made” granted in Section 2.1 means only that LICENSEE
may contract with a third party or parties to manufacture for LICENSEE LICENSED
PRODUCTS to be sold by LICENSEE.

 

2.3                                 Immediately upon
execution of this Agreement ACT shall provide LICENSEE with all information and
data relating to the PATENT RIGHTS as may be reasonably necessary to allow LICENSEE
to fully exploit the license granted hereunder. 
From time to time thereafter ACT shall provide LICENSEE, at LICENSEE’s
expense, with such information and technological assistance as LICENSEE
reasonably shall request, provided that such requests do not unreasonably
interfere with the regular business operations of ACT.

 

2.4                                 ACT hereby grants
to LICENSEE an option, exercisable at any time during the term of the Agreement,
to a nonexclusive license in the FIELD OF CATTLE to use the PATENT RIGHTS to
make, have made, use, and sell LICENSED PRODUCTS and to practice the LICENSED PROCESSES
in South America (the “South America License”). 
LICENSEE shall notify ACT in writing of its desire to acquire such a
nonexclusive license.  ACT shall then
promptly provide LICENSEE with the proposed terms of the South America License
for LICENSEE’s review.

 

2.5                                 ACT and LICENSEE
agree that in proceeding with the development, making, using and selling of
LICENSED PRODUCTS and the performance of LICENSED PROCESSES in the FIELDS OF
USE, each party will, subject to mutually acceptable fees and terms of use,
accept for cloning “cell lines” of animals (a cell or collection of cells of
the subject animal that has been cultured in vitro) developed and provided by
the other party.

 

2.6                                 LICENSEE
acknowledges that a portion of the PATENT RIGHTS licensed to LICENSEE hereunder
is owned by the University and is licensed to ACT under the UMASS LICENSE.  ACT, the University and LICENSEE agree that,
in the event the UMASS LICENSE is terminated for any reason pursuant to the
provisions of the UMASS LICENSE, (i) this Agreement shall be automatically
assigned to the University, (ii) LICENSEE will thereafter make any payments due
to ACT under this Agreement directly to the University, and (iii) promptly
following such termination, LICENSEE and the University will enter into a
direct license agreement reflecting the applicable terms of this Agreement and
the UMASS LICENSE. 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 LICENSEE and shall not be construed as vitiating the
provisions of this Section 2.6.

 

2.7                                 ACT agrees that in
partial consideration for the License Fee (as defined in Section 4.1), ACT
hereby forever and irrevocably releases and discharges LICENSEE and all
purchasers and users of LICENSED PRODUCTS acquired, mediately or immediately,
from LICENSEE from all claims, demands, or rights of action that ACT may now
have, if any, on account of any infringement of any PATENT RIGHTS by the
manufacture, use, lease, sale, offer for sale, import, or other disposition of
LICENSED PRODUCTS that, prior to the date of this Agreement, may have been manufactured,
used, sold, offered for sale, imported, or otherwise disposed of by LICENSEE.

 

4

 

ARTICLE 3
- LICENSEE OBLIGATIONS 

RELATING TO COMMERCIALIZATION

 

3.1                                 LICENSEE shall use
commercially reasonable and diligent efforts to bring one or more LICENSED
PRODUCTS or LICENSED PROCESSES in each FIELD OF USE to market through an active
and diligent program for exploitation of the PATENT RIGHTS and to continue
active, diligent marketing efforts for one or more LICENSED PRODUCTS or
LICENSED PROCESSES in each FIELD OF USE throughout the life of this Agreement.

 

3.2                                 LICENSEE shall
maintain complete and accurate records of LICENSED PRODUCTS and LICENSED
PROCESSES that are made, used, sold or performed by LICENSEE under this
Agreement.  Not later than May 1st
of each year following the EFFECTIVE DATE, LICENSEE shall furnish ACT and the
University with a summary report on the progress of its efforts during the
prior year to develop and commercialize LICENSED PRODUCTS or LICENSED PROCESSES
in each FIELD OF USE, including without limitation research and development efforts,
efforts to obtain regulatory approval (if applicable), marketing efforts
(including LICENSED PRODUCTS and LICENSED PROCESSES made, used, sold or
performed) and sales figures (all specified by FIELD OF USE), provided that
such reports shall be deemed CONFIDENTIAL INFORMATION subject to the provisions
of Article 10 of this Agreement.

 

3.3                                 In the event that
ACT reasonably determines that LICENSEE has not fulfilled its obligations under
this Article 3, ACT shall furnish LICENSEE with written notice of such determination.  Within sixty days after receipt of such
notice, LICENSEE 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 LICENSEE, to
terminate this Agreement.

 

ARTICLE 4
- CONSIDERATION

 

4.1                                 Initial Payment.  In partial consideration of the licenses
granted to LICENSEE from ACT in Article 2 of this Agreement, LICENSEE
agrees to pay to ACT an initial license fee of ONE HUNDRED THOUSAND DOLLARS ($100,000.00)
(the “License Fee”).  One hundred percent
(100%) of the License Fee shall be deemed earned and shall be due 30 days after
the EFFECTIVE DATE.  The License Fee is
not refundable and is not creditable against other payments due to ACT under
this Agreement.

 

4.2                                 Royalties.

 

(a)
In partial consideration of the license in the FIELD OF CATTLE granted by ACT
to LICENSEE in Article 2 of this Agreement, LICENSEE agrees to pay to ACT
an earned royalty equal to 5% of the NET SALES of all LICENSED PRODUCTS and
LICENSED PROCESSES in the FIELD OF CATTLE made, used, sold, imported, exported
or performed by LICENSEE in the TERRITORY: provided, however, that
LICENSEE shall pay to ACT an earned royalty equal to: (i) only 3% of the NET
SALES on LICENSEE’s sale of all progeny of cloned transgenic animals (and
products obtained from such cloned transgenic animals (such as semen or ova))
in the FIELD OF CATTLE produced under this Agreement, and (ii) only 5% of the
NET SALES on LICENSEE’s sale

 

5

 

of
the first five progeny of each cloned non-transgenic animal (and products
obtained from such cloned non-transgenic animals (such as semen or ova)) in the
FIELD OF CATTLE produced under this Agreement.

 

(b)                                 In partial
consideration of the license in the FIELDS OF OTHER ANIMALS and ENDANGERED
SPECIES granted by ACT to LICENSEE in Article 2 of this Agreement, LICENSEE
agrees to pay to ACT an earned royalty equal to 4% of the NET SALES of all LICENSED
PRODUCTS and LICENSED PROCESSES in the FIELDS OF OTHER ANIMALS and ENDANGERED
SPECIES made, used, sold, imported, exported or performed by LICENSEE in the TERRITORY;
provided, however, that LICENSEE shall pay to ACT an earned royalty
equal to: (i) only 2% of the NET SALES on LICENSEE’s sale of all progeny of
cloned transgenic animals (and products obtained from such cloned transgenic
animals (such as semen or ova)) in the FIELDS OF OTHER ANIMALS AND ENDANGERED
SPECIES produced under this Agreement, and (ii) only 4% of the NET SALES on
LICENSEE’s sale of the first five progeny of each cloned non-transgenic animal
(and products obtained from such cloned non-transgenic animals (such as semen
or ova)) in the FIELDS OF OTHER ANIMALS AND ENDANGERED SPECIES produced under
this Agreement.

 

(c)                                  No multiple
royalties shall be payable because any LICENSED PRODUCT or LICENSED PROCESS in
a FIELD OF USE, its manufacture, use, lease, sale or performance are or shall
be covered by more than one patent or patent application within the PATENT
RIGHTS.

 

(d)                                 The obligation of
LICENSEE to pay royalties on sales of LICENSED PRODUCTS or LICENSED PROCESSES
covered by a VALID CLAIM of the PATENT RIGHTS shall terminate on a
country-by-country basis concurrently with the expiration or termination of the
last applicable VALID CLAIM within the PATENT RIGHTS in the country in the
TERRITORY in which the LICENSED PRODUCT or LICENSED PROCESS is manufactured,
sold or performed.

 

4.3                                 Minimum Annual
Royalties.  (a) Following the third full
calendar year of this Agreement (i.e., commencing with the calendar year
2005), LICENSEE shall, during the term of this Agreement pay, minimum annual
royalty payments to ACT as follows:

 

(1)                                  LICENSEE shall pay
ACT a minimum annual royalty payment of ONE HUNDRED THOUSAND DOLLARS
($100,000.00) for the fourth through the seventh full calendar years of this
Agreement (i.e., the years 2005 through 2008); and

 

(2)                                  thereafter
(commencing with the eighth full calendar year of this Agreement
(i.e., the year 2009)), LICENSEE shall pay ACT a minimum annual royalty payment
of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), increasing by FIFTY
THOUSAND DOLLARS ($50,000.00) each year thereafter until such time as the
minimum annual royalty is FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) at which
time the minimum annual royalty payment shall continue to be FIVE HUNDRED
THOUSAND DOLLARS ($500,000.00) for the remaining term of the Agreement.

 

(b)                                 The minimum annual
royalty payments shall be payable within forty-five (45) days after the end of
each applicable calendar year.  If the
actual royalty payments by LICENSEE to

 

6

 

ACT in any calendar year
are less than the minimum annual royalty, LICENSEE shall have the right to pay
ACT the difference between the actual royalty payments and the minimum annual
royalty in full satisfaction of its obligations under this Section provided
that such minimum annual royalty is paid to ACT within forty-five (45) days
after the conclusion of the applicable calendar year.  Waiver of any payment of the minimum annual
royalty by ACT shall not be construed as a waiver of any subsequent payment of
the minimum annual royalty.  If LICENSEE
fails to make any payment of the minimum annual royalty within said forty-five
(45) day period, such failure shall constitute a material breach of LICENSEE’s
obligations under this Agreement and ACT shall have the right to terminate this
Agreement in accordance with Section 9.2 hereof.

 

4.4                                 All payments due
under this Agreement shall be paid to ACT 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 LICENSEE on royalty payments under
the laws of any country in the Territory for the account of ACT will be
promptly paid by LICENSEE for and on behalf of ACT to the appropriate
governmental authority, and LICENSEE will furnish ACT with proof of payment of
such tax. Any such tax actually paid on behalf of ACT may be deducted from royalty
payments due ACT.  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.

 

4.5                                 LICENSEE shall pay
ACT interest on any overdue amounts at the rate of eighteen percent (18%) per
annum, or the maximum rate allowed by law, from the date when such payment should
have been made pursuant to Section 4.1, 4.2, 4.3 and/or 5.3, as
applicable.

 

4.6                                 If LICENSEE fails
to timely make any payments to ACT as provided in this Agreement, such failure
shall constitute a material breach of LICENSEE’s obligations under this Agreement,
and ACT shall have the right to terminate this Agreement in accordance with Article 9.

 

ARTICLE 5
- REPORTS AND RECORDS

 

5.1                                 LICENSEE shall keep
full, true and accurate books of account containing all particulars that may be
necessary for the purpose of showing the amounts payable to ACT hereunder.  Said books of account shall be kept at
LICENSEE’s principal place of business.  Said
books and the supporting data shall be open upon reasonable advance notice (and
no more frequently than once per calendar year) for three and one half (3-1/2)
years following the end of the calendar year to which they pertain, to the
inspection of ACT or its agents for the purpose of verifying LICENSEE’s royalty
statement or compliance in other respects with this Agreement.  If any such audit determines that the
reported payments to ACT were less than ninety five percent (95%) of the actual
amount due to ACT for the period in question, LICENSEE shall bear the cost of
such audit.  In all other cases, the
costs of the audit shall be paid by ACT. 
All information disclosed pursuant to an audit shall be treated as
CONFIDENTIAL INFORMATION and shall not be disclosed to any third party or used
for any purpose other than to determine the correctness of LICENSEE’s royalty
statement or compliance in other respects with this Agreement.

 

7

 

5.2                                 After the first commercial
sale of a LICENSED PRODUCT or LICENSED PROCESS, LICENSEE, within forty-five
(45) days after March 31, June 30, September 30 and December 31,
of each year, shall deliver to ACT a true and accurate report, giving such
particulars of the business conducted by LICENSEE during the preceding
three-month period under this Agreement necessary for the purpose of accounting
hereunder.  Without limiting the
generality of the foregoing, these reports shall include the following:

 

(a)                                  number of LICENSED
PRODUCTS manufactured by LICENSEE or by any third parry on LICENSEE’s behalf;

 

(b)                                 number of LICENSED
PRODUCTS sold by LICENSEE;

 

(c)                                  total receipts for
LICENSED PRODUCTS sold by LICENSEE;

 

(d)                                 accounting for all
LICENSED PROCESSES used in the provision of services to others or sold by
LICENSEE;

 

(e)                                  deductions
applicable as provided in Section 1.5; and

 

(f)                                    the names and
addresses of all parties making LICENSED PRODUCTS on behalf of LICENSEE.

 

The reports shall provide
the above-identified information, and any additional information, on a FIELD OF
USE (and by animal within each FIELD OF USE) basis.

 

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

 

ARTICLE 6
- PATENT PROSECUTION

 

6.1                                 ACT shall be solely
responsible for the continued prosecution of pending patent applications
included in the PATENT RIGHTS and the issuance of such applications after
allowance.  Additionally, ACT shall pay
all government fees in any given country required to maintain the PATENT
RIGHTS; and shall submit evidence to LICENSEE upon request that such fees have
been timely paid.  The prosecution,
filing and maintenance of all patents and applications (including with respect
to any decision(s) whether to continue to prosecute any such application(s))
included in the PATENT RIGHTS shall be the sole responsibility of ACT.

 

ARTICLE 7
- PROSECUTION OF INFRINGERS 

AND DEFENSE OF PATENT RIGHTS

 

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

 

8

 

ARTICLE 8
- INDEMNIFICATION; LIMITATION OF LIABILITY; INSURANCE

 

8.1                                 LICENSEE shall at
all times during the term of this Agreement and thereafter, indemnify, defend
and hold harmless ACT and the University and their trustees, directors,
officers, employees and affiliates against all liabilities of any kind
whatsoever, including legal expenses and reasonable attorneys’ fees, arising
out of the death of or injury to any person or persons or out of any damage to
property resulting from the development, production, manufacture, sale, use, performance,
rendering, consumption or advertisement of the LICENSED PRODUCT(s) and/or LICENSED
PROCESS(es) or arising from any obligation, act or omission, or from a breach
of any representation or warranty of LICENSEE hereunder, excepting only claims
that the PATENT RIGHTS infringe third party intellectual property or claims
that result from any breach by ACT of this Agreement or claims that result from
ACT’s negligence or willful misconduct. Any indemnification obligations set
forth in this Agreement shall be subject to the following conditions: (i) the
indemnified party shall notify the indemnifying party in writing promptly upon
learning of any claim or suit for which indemnification is sought; (ii) the
indemnifying party shall have control of the defense or settlement, provided
that the indemnified party shall have the right (but not the obligation) to
participate in such defense or settlement with counsel at its selection and at
its sole expense; and (iii) the indemnified party shall reasonably cooperate
with the defense, at the indemnifying party’s expense.

 

8.2                                 IN NO EVENT SHALL
EITHER PARTY, ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES BE
LIABLE FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER A
PARTY SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW
OF THE POSSIBILITY; PROVIDED, HOWEVER, THAT THIS SECTION 8.2 SHALL NOT BE
DEEMED TO LIMIT IN ANY WAY LICENSEE’S DUTY TO INDEMNIFY ACT FOR CLAIMS BROUGHT
BY THIRD PARTIES AS SET FORTH IN SECTION 8.1 OF THIS AGREEMENT (INCLUDING
ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED OR INCURRED BY ANY
THIRD PARTIES WHO ARE, IN TURN, SEEKING THE SAME FROM LICENSEE, WHICH SHALL BE COVERED
BY THE INDEMNITY SET FORTH IN SECTION 8.1) (AS OPPOSED TO ANY INDIRECT OR
CONSEQUENTIAL DAMAGES SUFFERED OR INCURRED BY ACT DIRECTLY).

 

8.3                                 LICENSEE agrees to
maintain insurance or self-insurance that is reasonably adequate to fulfill any
potential obligation to the indemnified parties.  LICENSEE shall continue to maintain such
insurance or self-insurance during the term of this Agreement and after the
expiration or termination of this Agreement for a period of five (5) years.

 

9

 

ARTICLE 9
- TERMINATION 

 

9.1                                 This Agreement
shall be effective on the EFFECTIVE DATE and continue until the expiration of
the last to expire of the PATENT RIGHTS, unless sooner terminated as provided
in this Article 9.

 

9.2                                 Upon any material
breach or default of this Agreement by LICENSEE, ACT shall have the right to
terminate this Agreement and the rights, privileges and licenses granted
hereunder effective on 90 days’ notice to LICENSEE.  Such termination shall become automatically
effective unless LICENSEE shall have cured any such material breach or default
prior to the expiration of the 90 day period.

 

9.3                                 LICENSEE shall have
the right to terminate this Agreement at any time on six (6) months’ prior
notice to ACT.

 

9.4                                 In the event that
this Agreement is terminated or expires, LICENSEE shall retain limited rights
to sell any LICENSED PRODUCTS existing or under production (e.g., a cloned
animal in utero) and to perform LICENSED PROCESSES related to such LICENSED
PRODUCTS, subject to the terms of this Agreement (including without limitation
the obligation to pay royalties under Article 4).

 

9.5                                 Upon termination of
this Agreement for any reason, nothing herein shall be construed to release
either party from any obligation that matured prior to the effective date of
such termination; and Articles/Sections 1, 8, 9, 9.4, 10, 12, 13.7 and 13.10,
and any other provision which by its nature is intended to survive any such
termination, shall survive and continue in full force and effect.  Upon any termination of this Agreement, each
party shall promptly return to the other party all written CONFIDENTIAL
INFORMATION, and all copies, notes or extracts thereof, to the other party.

 

9.6                                 The foregoing
termination rights are in addition to any termination rights that may be provided
elsewhere in this Agreement.

 

ARTICLE 10
- CONFIDENTIALITY AND NON-DISCLOSURE

 

10.1                           Confidential
Information; Non-Disclosure.  “Confidential
Information” shall mean any technical, business, financial, customer or other
information disclosed by one party to the other party pursuant to this
Agreement which is marked “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, 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

 

10

 

code, technical
information, costs, pricing, financing, business opportunities, personnel, and
information of ACT or LICENSEE relating to the LICENSED PROPERTY, LICENSED
PRODUCTS or LICENSED SERVICES.  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.

 

10.2                           Exceptions.  Neither party shall have obligation or
liability to the other with regard to any Confidential Information of the other:
(i) that was publicly known and available at the time it was disclosed or
becomes publicly known and available through no fault, action, or inaction of
the receiver; (ii) was known to the receiving party, without restriction, at
the time of disclosure as shown by the files of the receiving party in
existence at the time of disclosure; (iii) is disclosed with the prior written
approval of the disclosing party; (iv) was independently developed by the
receiving party without any use of the Confidential Information, provided, that
the receiving party can demonstrate such independent development by documented
evidence prepared contemporaneously with such independent development; (v) is
disclosed pursuant to the order or requirement of a court, administrative
agency, or other governmental body, provided that the receiving party shall
provide prompt advanced notice thereof to enable the disclosing party to seek a
protective order or otherwise prevent such disclosure; or (vi) that is provided
to the recipient by an independent third party having no obligation to keep the
information secret.

 

10.3                           Injunctive Relief.  ACT and LICENSEE acknowledge and agree that
any breach of the confidentiality obligations imposed by this Section 10
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 10, including
reasonable attorneys’ fees and expenses of litigation.

 

10.4                           Survival.  The obligations of ACT and LICENSEE under this
Article 10 shall survive any expiration or termination of this Agreement.

 

ARTICLE 11
- PAYMENTS, NOTICES, AND OTHER COMMUNICATIONS

 

Any
payment, notice or other communication pursuant to this Agreement shall be in
writing and sent by certified first class mail, postage prepaid, return receipt
requested, or by nationally

 

11

 

recognized overnight
carrier addressed to the parties at the following addresses or such other
addresses as such party furnishes to the other party in accordance with this
paragraph.  Such notices, payments, or
other communications shall be effective upon receipt.

 

In
the case of ACT:

 

Advanced
Cell Technology, Inc.

One
Innovation Drive

Worcester,
MA 01605

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

 

With
a copy to:

 

Pierce
Atwood

One
Monument Square

Portland,
ME 04101

Attention:
William L. Worden, Esq.

 

In
the case of LICENSEE:

 

Genetic
Savings & Clone

3312
Longmire Drive

College
Station, TX 77845

Attention:
Charles Long, Ph.D. General Manager

 

With
a copy to:

 

Heller
Ehrman White & McAuliffe LLP 

4350
La Jolla Village Drive 

San
Diego, CA 92122 

Attention:
Ryan Murr, Esq.

 

ARTICLE 12
- REPRESENTATIONS AND WARRANTIES

 

12.1                           ACT represents and
warrants that it owns or has licensed with a sublicenseable interest the PATENT
RIGHTS, that it has the full legal right and power to grant the licenses
granted hereunder, that this Agreement constitutes the binding legal obligation
of ACT, enforceable in accordance with its terms, and that the execution and
performance of this Agreement by ACT will not violate, contravene or conflict
with any other agreement to which ACT is a party or by which it is bound or
with any law, rule or regulation applicable to ACT.

 

12.2                           LICENSEE represents
and warrants that it has full corporate power and authority to enter into this
Agreement, that this Agreement constitutes the binding legal obligation of LICENSEE,
enforceable in accordance with its terms, and that execution and performance of
this Agreement by LICENSEE will not violate, contravene or conflict with any
other agreement to which LICENSEE is a party or by which it is bound or with
any law, rule or regulation applicable to LICENSEE.

 

12

 

12.3                           The University
represents and warrants that it owns the UMASS PATENT RIGHTS, and that it has
exclusively licensed the UMASS PATENT RIGHTS to ACT pursuant to the UMASS LICENSE.

 

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

 

ARTICLE 13
- MISCELLANEOUS PROVISIONS

 

13.1                           LICENSEE shall
comply with all local, state, federal and international laws and regulations
relating to the development, manufacture, use, provision, and sale of LICENSED
PRODUCTS and LICENSED PROCESSES.  Without
limiting the generality of the foregoing, LICENSEE agrees to comply with the
following:

 

(a)                                  LICENSEE shall
obtain all necessary approvals from the USDA and any similar governmental
authorities of any foreign jurisdiction in the Territory in which LICENSEE
intends to make, use, or sell LICENSED PRODUCTS or to perform LICENSED
PROCESSES.

 

(b)                                 LICENSEE shall
comply fully with any and all applicable local, state, federal and
international laws and regulations relating to the LICENSED PRODUCTS and LICENSED
SERVICES, and the PATENT RIGHTS, in the Territory, including without limitation
all 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.  LICENSEE hereby gives
written assurance that it will comply with all such import or export laws and
regulations (including without limitation all Export Administration Regulations
of the United States Department of Commerce), that it bears sole responsibility
for any violation of such laws and regulations, and that it will indemnify,
defend, and hold ACT and the University harmless (in accordance with Article 8)
for the consequences of any such violation.

 

(c)                                  To the extent that
any invention claimed in the PATENT RIGHTS has been partially funded by the
United States Government, and only to the extent required by applicable laws
and regulations, LICENSEE 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 manufacturer is not commercially feasible under the circumstances,
ACT and/or the

 

13

 

University
may seek a waiver of this requirement from the relevant federal agency on
behalf of LICENSEE and, upon LICENSEE’S request, shall cooperate with LICENSEE
in seeking such a waiver.

 

13.2                           LICENSEE shall not
create or incur or cause to be incurred or to exist any lien, encumbrance,
pledge, charge, restriction or other security interest of any kind upon the
PATENT RIGHTS without the prior written consent of ACT and the University.

 

13.3                           Neither party 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 and Section 10.1
notwithstanding, ACT and LICENSEE 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
applicable 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.

 

13.4                           No implied licenses
are granted pursuant to the terms of this Agreement.  No Licensed Rights shall be created by
implication or estoppel.

 

13.5                           Nothing herein
shall be deemed to constitute either party as the agent or representative of
the 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, nor shall either
party have authority to speak for, represent or obligate the other party in any
way without prior written authority from the other party.

 

13.6                           To the extent
commercially feasible, and consistent with prevailing business practices, all
products manufactured or sold under this Agreement will be marked with the
number of each issued patent that applies to such product.

 

13.7                           This Agreement
shall be construed, governed, interpreted and applied in accordance with the
laws of the Commonwealth of Massachusetts, U.S.A. without regard to principles
of conflicts of law thereof, except that questions affecting the construction
and effect of any patent included in the PATENT RIGHTS shall be determined by
the law of the country in which the patent was granted.

 

13.8                           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 2.1, 2.6, 2.7, 3.2, 5.1, 6.1, 8.1, 8.2, 8.3,

 

14

 

13.1, 13.2, 13.3 and 13.8
hereof, with the right to enforce such provisions against the applicable party.

 

13.9                           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.

 

13.10                     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.

 

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

 

13.12                     This Agreement may
not be assigned by LICENSEE without the prior written consent of ACT and the
University, which consent maybe granted or denied in the sole discretion of ACT
or the University, as applicable.  This Agreement
may not be assigned by ACT without the consent of LICENSEE, except that ACT may
assign this Agreement to an affiliate or to a successor in connection with the
merger, consolidation, or sale of all or substantially all of its assets or
that portion of its business to which this Agreement relates.

 

*     *     *

 

15

 

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

 

	
  ADVANCED CELL TECHNOLOGY, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael D. West

  	
   

  	
   

  
	
  Printed Name: Michael D. West, Ph.D.

  	
   

  
	
  Title: 
  President & Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GENETIC SAVINGS & CLONE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Louis Hawthorne

  	
   

  	
   

  
	
  Printed Name: Louis Hawthorne

  	
   

  
	
  Title: CEO

  	
   

  
						

 

CONSENT
AND AGREEMENT

 

For
value received, the University hereby consents to the sublicense by ACT to
LICENSEE of the UMASS PATENT RIGHTS under this Agreement.

 

 

	
  THE UNIVERSITY OF MASSACHUSETTS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joseph F.X. McGuirl

  	
   

  
	
  /s/ Thomas J. Chmura

  
	
  Printed Name: Joseph F.X. McGuirl, Executive Director,
  CVIP

  	
   

  
	
  Title:

  	
   

  
	
  Thomas J. Chmura, Executive V.P. for

  Economic Development

  	
   

  

 

16Exhibit 10.15

 

NON-EXCLUSIVE LICENSE AGREEMENT

 

This Non-Exclusive License Agreement (“Agreement”) is made and entered
into this 3rd day of February, 2004 (the “Effective Date”), by and
between Advanced Cell Technology, Inc., a Delaware corporation with offices
located at One Innovation Drive, Worcester, Massachusetts 01605 (“ACT”), and
Pureline Genetics LLC, a Delaware limited liability company with offices
located at 190 Route 165, Preston, CT 06365 (“LICENSEE”) (ACT and LICENSEE
sometimes hereinafter referred to as the “parties”).

 

WITNESSETH

 

WHEREAS,
Robert Saglio, the principal of LICENSEE (“Saglio”), has been employed by ACT’s
parent company A.C.T. Group, Inc. (“Group”) as an executive; and

 

WHEREAS,
Saglio’s employment with Group terminated on August 8, 2002; and

 

WHEREAS,
in connection with the termination of Saglio’s employment by Group Saglio and
Group entered into a letter agreement dated July 22, 2002 (the “Letter
Agreement”), a copy of which is attached hereto as Exhibit A; and

 

WHEREAS,
in connection with the termination of Saglio’s employment by Group Saglio and
Group entered into a General Release and Indemnification Agreement dated February 3,
2004 (the “Release”), a copy of which is attached hereto as Exhibit B;
and

 

WHEREAS,
ACT owns or has licensed with a sublicensable interest the PATENT RIGHTS (as
defined below) and KNOW-HOW (as defined below); and

 

WHEREAS,
Saglio owns directly more than fifty percent (50%) of LICENSEE; and

 

WHEREAS,
Saglio desires to obtain for LICENSEE a nonexclusive license from ACT in and
under the PATENT RIGHTS and KNOW-HOW; and

 

WHEREAS,
the Letter Agreement contemplates that ACT will grant such a license to
LICENSEE; and

 

WHEREAS,
ACT is willing to grant such a license to LICENSEE upon the terms and
conditions set forth below; and

 

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

 

ARTICLE 1 - DEFINITIONS

 

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

 

 

1.1                                 “FIELD
OF AGRICULTURE” means the cloning, development, making, using, selling,
offering to sell or importing of agricultural products that are composed of,
made in or derived, extracted or isolated from cloned, transgenic or chimeric
animals of the avian species. “Agricultural products” means food or fiber (i.e., something of nutritional value) or
products that are used for the production of food or fiber, and the rendering
of services that relate to the production of such products.  Specifically excluded from agricultural
products are products intended for medicinal uses or as part of the nutritional
management of disease and products other than eggs of Avian species that
contain animal and/or human therapeutic products intended to be used for
veterinary or medical therapies, including, but not limited to, the production
of biopharmaceutical agents, proteins, peptides and polypeptides for
pharmaceutical, nutraceutical or other use.

 

1.2                                 “KNOW-HOW”
means all compositions of matter, techniques and data and other know-how and
technical information including inventions (whether or not patentable),
improvements and developments, practices, methods, concepts, trade secrets,
documents, computer data, computer code, apparatus, clinical and regulatory
strategies, test data, analytical and quality control data, formulation,
manufacturing, patent data or descriptions, development information, drawings,
specifications, designs, plans, proposals and technical data and manuals and
all other proprietary information that is owned or controlled by ACT as of the
Effective Date that relates to cloning technology or to any of the subject
matter described in or claimed by the PATENT RIGHTS and is relevant to the
FIELD OF AGRICULTURE.

 

1.3                                 “LICENSED
PROCESS” means any process or method, the researching, developing, using,
practicing, selling, offering for sale, importing or exporting of which by
LICENSEE would, but for the licenses granted to LICENSEE in Article 2
of this Agreement, infringe a VALID CLAIM of the PATENT RIGHTS in the country
in which such process or method is researched, developed, practiced, sold,
offered for sale, imported or exported.

 

1.4                                 “LICENSED
PRODUCT” means (a) any product, the making, using, selling, offering for
sale, importing or exporting of which by LICENSEE, would, but for the licenses
granted to LICENSEE in Article 2 of this Agreement, infringe a VALID
CLAIM of the PATENT RIGHTS in the country in which any such product is so made,
used, sold, offered for sale, imported or exported by LICENSEE or (b) any
product that is made by LICENSEE using a process or method that would, but for
the licenses granted to LICENSEE in Article 2 of this Agreement,
infringe a VALID CLAIM of the PATENT RIGHTS in the country in which any such
process or method is used.

 

1.5                                 “LICENSED
SERVICES” means any service, the developing, using, performing, selling,
offering for sale, importing or exporting of which by LICENSEE would, but for
the licenses granted to LICENSEE in Article 2 of this Agreement,
infringe a VALID CLAIM of the PATENT RIGHTS in the country in which any such
service is so developed, used, performed, sold, offered for sale, imported or
exported by LICENSEE.

 

1.6                                 “LICENSEE”
means Pureline Genetics LLC, a Delaware limited liability company with offices
located at 190 Route 165, Preston, CT 06365.

 

1.7                                 “NET
SALES” shall mean the amount billed or invoiced by LICENSEE for the sale or
provision of LICENSED PRODUCTS or LICENSED PROCESSES or LICENSED SERVICES less:

 

2

 

(a)                                  discounts
allowed;

 

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

 

(c)                                  special
packaging, transportation and insurance prepaid or allowed; and

 

(d)                                 amounts
allowed or credited on returns.

 

1.8                                 “PATENT
RIGHTS” means (a) the patent applications and patents identified on Exhibit C
attached hereto and any patents that issue on said applications and (b) any
divisions, continuations, continuations-in-part, extensions, reissues or reexaminations
of any of the patents identified in the foregoing clause (a). The parties agree
that Exhibit C may be revised from time to time after the Effective
Date to reflect changes thereto.

 

1.9                                 “TERM”
has the meaning set forth in Section 8.1.

 

1.10                           “TERRITORY”
means the entire world.

 

1.11                           “UMASS
LICENSE” means the Exclusive License Agreement between ACT and the University
of Massachusetts, dated April 16, 1996, as amended by the Amendment to
Exclusive License Agreement dated September 1, 1999, the Second Amendment
to Exclusive License Agreement dated May 31, 2000, and the Third Amendment
to Exclusive License Agreement dated September 19, 2002.

 

1.12                           “VALID
CLAIM” means a claim of any issued and unexpired patent within the PATENT
RIGHTS which has not lapsed, become abandoned or been held revoked, invalid, or
unenforceable by a decision of a court or administrative or government
authority or agency of competent jurisdiction from which no appeal can be or
has been taken within the time allowed for such appeal, and which has not been
admitted to be invalid or unenforceable through reissue, disclaimer or
otherwise.

 

Additional
terms may be defined throughout this Agreement.

 

ARTICLE 2 - GRANT

 

2.1                                 ACT
hereby grants to LICENSEE, and LICENSEE hereby accepts, subject to the terms
and conditions hereof, a royalty bearing, nonexclusive license in the TERRITORY
in the FIELD OF AGRICULTURE and under the PATENT RIGHTS and KNOW-HOW to (a) research,
develop, make, have made, use, sell, have sold, offer for sale, have offered
for sale, import, have imported, export and have exported LICENSED PRODUCTS, (b) research,
develop, use, practice, sell, have sold, offer for sale, have offered for sale,
import, have imported, export and have exported LICENSED PROCESSES and (c) develop,
use, perform, sell, have sold, offer for sale, have offered for sale, import,
have imported, export and have exported LICENSED SERVICES. LICENSEE shall have
the right, in connection with the licenses to “have made,” “have sold,” “have
offered for sale,” “have imported” and “have exported” to sublicense the rights
granted in this Section 2.1 to third parties in connection with

 

3

 

contracting with such
third parties to (x) provide LICENSED PRODUCT marketing and distribution
services to LICENSEE on behalf of LICENSEE, (y) provide Licensed Services
marketing services to LICENSEE on behalf of LICENSEE or (z) manufacture for
LICENSEE LICENSED PRODUCTS for sale by LICENSEE or a third party pursuant to
the foregoing clause (x).

 

2.2                                 Except
as expressly provided by Section 2.1 above, LICENSEE shall not have the
right to grant sublicenses without the express prior written approval of ACT,
which approval shall be granted or denied in ACT’s sole discretion.

 

2.3                                 Within
thirty (30) business days of the Effective Date, ACT shall provide and transfer
to LICENSEE all information and data relating to the PATENT RIGHTS and KNOW-HOW
as may be reasonably necessary to allow LICENSEE to exploit the licenses
granted hereunder.

 

2.4                                 LICENSEE
acknowledges that a portion of the PATENT RIGHTS licensed to LICENSEE hereunder
is owned by the University and is licensed to ACT under the UMASS LICENSE.  In the event the UMASS LICENSE expires or is
terminated for any reason pursuant to the provisions of the UMASS LICENSE or
otherwise, the terms of the letter agreement attached hereto as Exhibit D
between ACT, LICENSEE and the University shall apply to this Agreement.

 

ARTICLE 3 - LICENSEEE OBLIGATIONS

RELATING TO COMMERCIALIZATION

 

3.1                                 LICENSEE
shall use its commercially reasonable and diligent efforts to bring one or more
LICENSED PRODUCTS, LICENSED PROCESSES or LICENSED SERVICES to market through an
active and diligent program for exploitation of the PATENT RIGHTS and to
continue active, diligent marketing efforts for one or more LICENSED PRODUCTS,
LICENSED PROCESSES or LICENSED SERVICES throughout the Term of this Agreement.

 

3.2                                 LICENSEE
shall maintain complete and accurate records of LICENSED PRODUCTS, LICENSED
PROCESSES and LICENSED SERVICES that are made, used, sold or performed by
LICENSEE under this Agreement. Not later than May 1st of each year following the Effective
Date, LICENSEE shall furnish ACT with a summary report on the progress of its
efforts during the prior year to develop and commercialize LICENSED PRODUCTS,
LICENSED PROCESSES or LICENSED SERVICES, including without limitation research
and development efforts, efforts to obtain regulatory approval, marketing
efforts (including LICENSED PRODUCTS, LICENSED PROCESSES and LICENSED SERVICES
made, used, sold or performed) and sales figures, provided that such reports
shall be deemed Confidential Information (as defined in Section 10.1
herein) subject to the provisions of Article 10 of this Agreement.

 

3.3                                 In
the event that ACT determines that LICENSEE has not fulfilled its obligations
under this Article 3, ACT shall furnish LICENSEE with written notice of
such determination.  Within sixty (60)
days after receipt of such notice, LICENSEE 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 ACT, to terminate this Agreement.

 

4

 

ARTICLE 4 - CONSIDERATION

 

4.1                                 Initial
Payment.  In partial consideration of
the license granted to LICENSEE from ACT in Article 2 of this Agreement,
LICENSEE agrees to pay a “License Fee” to ACT, by delivery by LICENSEE within
thirty (30) days after the Effective Date, of a convertible promissory note in
the form attached hereto as Exhibit E.

 

4.2                                 Royalties.

 

(a)                                  In
partial consideration of the license in the FIELD OF AGRICULTURE granted by ACT
to LICENSEE in Article 2 of this Agreement, LICENSEE agrees to pay to ACT an
earned royalty equal to five percent (5%) of the NET SALES in the FIELD OF
AGRICULTURE made, used, sold, imported, exported or performed by LICENSEE in
the TERRITORY.

 

(b)                                 No
multiple royalties shall be payable because any LICENSED PRODUCT, LICENSED PROCESS
or LICENSED SERVICE in the FIELD OF AGRICULTURE, its manufacture, use, lease,
sale or performance are or shall be covered by more than one patent or patent
application within the PATENT RIGHTS.

 

(c)                                  The
obligation of LICENSEE to pay royalties or Sublicense Income (as defined in Section 4.3
herein) hereunder shall terminate for each country in the TERRITORY
concurrently with the expiration or termination of the last applicable VALID
CLAIM within the PATENT RIGHTS in such country in which the LICENSED PRODUCT,
LICENSED PROCESS or LICENSED SERVICE is, (as applicable), used, practiced,
performed, sold, offered for sale, imported, exported or manufactured.

 

4.3                                 Sublicense
Income.  LICENSEE shall pay to ACT a
total of twenty-seven and one-half percent (27.5%) of all Sublicense Income. “Sublicense
Income” means consideration that LICENSEE receives for the sublicense of rights
that are granted LICENSEE under Article 2, approved in writing by ACT,
including without limitation license fees, milestone payments, equity payments,
up front fees, success fees, and license maintenance fees.

 

4.4                                 Payments
in U.S. Currency.  All payments due
under this Agreement shall be paid in cash to ACT and all payments shall be
made in United States currency.  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.

 

4.5                                 Taxes.
 All payments due hereunder shall be paid
in full without deduction of taxes or other fees which may be imposed by any
government and which shall be paid by LICENSEE; provided, however, that any
withholding tax required to be withheld by LICENSEE on royalty payments under
the laws of any country in the TERRITORY on behalf of ACT will be timely paid
by LICENSEE to the appropriate governmental authority, and LICENSEE will
furnish ACT with proof of payment of such tax.  Any such tax actually withheld may be deducted
from royalty payments due to ACT under this Agreement.  If at any time legal restrictions prevent the
prompt remittance of part or all of any payments owed by LICENSEE to ACT
hereunder with respect to any country in the TERRITORY, payment shall be made
through any lawful means or methods that may be available, and as LICENSEE
shall reasonably determine is appropriate.

 

5

 

4.6                                 Overdue
Payments.  Any payments to be made by
LICENSEE hereunder that are not paid on or before the date such payments are
due under this Agreement shall bear interest, to the extent permitted by law,
at two percentage points above the Prime Rate of interest as reported in The
Wall Street Journal on the date payment is due, with interest calculated
based on the number of days that payment is delinquent.

 

ARTICLE 5 - REPORTS
AND RECORDS

 

5.1                                 LICENSEE
shall keep full, true and accurate books of account containing all particulars
that may be necessary for the purpose of showing the amounts payable to ACT
hereunder and to enable the reports provided under Section 5.2 to
be verified. Said books of account shall be kept at LICENSEE’s principal place
of business.  Said books and the
supporting data shall be open upon reasonable advance notice (but not less than
five (5) business days notice and no more frequently than once per
calendar year) for three (3) years following the end of the calendar year
to which they pertain, to the inspection of ACT or its agents for the purpose
of verifying LICENSEE’s royalty and Sublicense Income statement or compliance
in other respects with this Agreement.  If
any such audit determines an error in any royalty or Sublicense Income payment,
LICENSEE shall pay to ACT, within thirty (30) days of the discovery of the
error, (a) all deficiencies in royalty or Sublicense Income payments, (b) interest
on such deficiencies from the date such royalty or Sublicense Income payment
was due until the date paid at the rate set forth in Section 4.6 above,
and (c) if such error is in excess of five percent (5%) of any royalty or
Sublicense Income payment, the cost of the audit.  In all other cases, the costs of the audit
shall be paid for by ACT.  All
information disclosed pursuant to an audit shall be treated as Confidential
Information (as defined in Section 10.1 herein) and shall not be disclosed
to any third party or used for any purpose other than to determine the
correctness of LICENSEE’s royalty and Sublicense Income statement or compliance
in other respects with this Agreement.

 

5.2                                 After
the first commercial sale of a LICENSED PRODUCT or LICENSED PROCESS, LICENSEE,
within forty-five (45) days after March 31, June 30, September 30
and December 31 of each year, shall deliver to ACT a true and accurate
report, giving such particulars of the business conducted by LICENSEE and its
permitted sublicensees during the preceding three-month period under this
Agreement as shall be pertinent to a royalty and Sublicense Income accounting
hereunder.  Without limiting the
generality of the foregoing, these reports shall include at least the
following:

 

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

 

(b)                                 total
billings and the amounts actually received for LICENSED PRODUCTS sold by
LICENSEE and all sublicensees;

 

(c)                                  an
accounting for all LICENSED PROCESSES or LICENSED SERVICES used in the
provision of services to others or sold by LICENSEE;

 

(d)                                 the
deductions applicable as provided in Section 1.11; and

 

(e)                                  the
names and addresses of all parties making LICENSED PRODUCTS on behalf of
LICENSEE.

 

6

 

The reports shall provide
the above-identified information by animal.

 

5.3                                 With
each such report submitted, LICENSEE shall pay to ACT the royalties and
Sublicense Income due and payable for such three-month period.  If no royalties or Sublicense Income shall be
due, LICENSEE shall so report.

 

ARTICLE 6 - PATENT PROSECUTION

 

6.1                                 ACT
shall be solely responsible for the continued prosecution of pending patent
applications included in the PATENT RIGHTS and the issuance of such applications
after allowance.  Additionally, ACT shall
pay all government fees in any given country required to maintain the PATENT
RIGHTS; and shall submit evidence to LICENSEE upon request that such fees have
been timely paid.  The prosecution,
filing and maintenance of all patents and applications shall be the primary
responsibility of ACT. LICENSEE agrees to cooperate fully with ACT, as
requested by ACT and at ACT’s expense, in the preparation, filing, prosecution,
and maintenance of the patent applications and patents included in the PATENT
RIGHTS.

 

ARTICLE 7 - PROSECUTION OF INFRINGERS

AND DEFENSE OF PATENT RIGHTS

 

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

 

ARTICLE 8 - INDEMNIFICATION

 

8.1                                 LICENSEE
shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold harmless ACT and the University and their trustees, directors,
officers, employees and affiliates (collectively, the “Indemnified Parties”)
against all liabilities of any kind whatsoever, including legal expenses and
reasonable attorneys’ fees (excluding, pursuant to Article 13 hereof, any
special, indirect, reliance, incidental, exemplary, cover or consequent damages
suffered or incurred by any of the Indemnified Parties directly (as opposed to
any special, indirect, reliance, incidental, exemplary, cover or consequential
damages suffered or incurred by third parties who are, in turn, seeking the
same from the Indemnified Parties, which shall be covered by the indemnity set
forth herein)), incurred or imposed upon any of the Indemnified Parties in
connection with or as a consequence of any claims (including third party
claims), suits, actions, demands or judgments arising out of the death of or
injury to any person or persons or out of any damage to property resulting from
the development, production, manufacture, sale, use, performance, rendering,
consumption or advertisement of the LICENSED PRODUCT(s) and/or LICENSED
PROCESS(es) or arising from any obligation, act or omission performed or failed
to be performed hereunder, or from a breach of any representation or warranty
of LICENSEE hereunder, excepting only claims that the PATENT RIGHTS or the
exercise thereof infringe third party intellectual property or claims that
result from any breach by ACT of this Agreement.

 

7

 

8.2                                 If
the exercise of LICENSEE’s rights under this Agreement in any country in the
TERRITORY is the subject of a bona fide claim by a third party, filed in a
court of competent jurisdiction after the date hereof, that the exercise of
such rights infringes or conflicts with any intellectual property rights of
such third party (a “Third Party Infringement Claim”), then LICENSEE shall not
have any of the rights granted herein in such country and shall have no
obligation to pay ACT any further payments under Article 4 of this
Agreement with respect to any country of the TERRITORY until such claim is
resolved by proper adjudication or settlement permitting LICENSEE to exercise
LICENSEE’s rights under this Agreement in the applicable country of the
TERRITORY.  Notwithstanding anything
herein to the contrary, ACT covenants that it will not (a) assert or bring
any suit, action, claim or other proceeding against LICENSEE based on, in whole
or in part, LICENSEE’s exercise of LICENSEE’s rights, in accordance with the
terms and conditions of this Agreement, with respect to the PATENT RIGHTS
and/or KNOW_HOW and/or (b) join in any third party suit, action, claim or
other proceeding against LICENSEE based on, in whole or in part, any
intellectual property rights (including without limitation, patent rights
and/or know how) owned by the applicable third party, so long as LICENSEE is
not in violation of this Agreement.

 

8.3                                 Any
indemnification obligations set forth in this Agreement shall be subject to the
following conditions: (i) the indemnified party shall notify the indemnifying
party in writing promptly upon learning of any claim or suit for which
indemnification is sought; (ii) the indemnifying party shall have control
of the defense or settlement, provided that the indemnified party shall
have the right (but not the obligation) to participate in such defense or
settlement with counsel at its selection and at its sole expense; and (iii) the
indemnified party shall reasonably cooperate with the defense, at the
indemnifying party’s expense.

 

8.4                                 LICENSEE
agrees to maintain insurance or self-insurance that is reasonably adequate to
fulfill any potential obligation to the indemnified parties.  LICENSEE shall continue to maintain such
insurance or self-insurance during the term of this Agreement and after the
expiration or termination of this Agreement for a period of five (5) years.
 LICENSEE shall provide to ACT, upon
request, proof of any such insurance policy maintained by LICENSEE.

 

ARTICLE 9 - TERMINATION

 

9.1                                 The
term of this Agreement (“TERM”) shall commence on the Effective Date and
continue until the expiration of the last VALID CLAIM within the PATENT RIGHTS
to expire, unless sooner terminated as provided in this Article 9;
provided that LICENSEE’s obligation to pay royalties or Sublicense Income on
NET SALES in any country will terminate pursuant to Section 4.2(c) (subject
to LICENSEE’s obligations under Section 9.4 herein).

 

9.2                                 If
either party commits a material breach of a material term of this Agreement
(including any failure to make any payment due under this Agreement), the
non-breaching party shall have the right to terminate this Agreement effective
on thirty (30) days prior written notice to the party in breach, unless such
breach is cured prior to the expiration of such thirty (30) day period.

 

9.3                                 LICENSEE
shall have the right to terminate this Agreement at any time on thirty (30)
days prior notice to ACT, and upon payment of all amounts due ACT through the
effective date of the termination.

 

8

 

9.4.                              Notwithstanding
anything herein to the contrary, in the event that this Agreement is terminated
by ACT pursuant to Section 9.2 or by LICENSEE pursuant to Sections
9.2 or 9.3, LICENSEE shall retain a license to rights granted in Article 2
to the extent reasonably necessary to sell any LICENSED PRODUCTS existing or
under production and to perform LICENSED PROCESSES or LICENSED SERVICES related
to such LICENSED PRODUCTS or that are in process, subject to the terms of this
Agreement (including without limitation the obligation to pay royalties under Article 4),
provided that LICENSEE shall complete and sell all such work-in-progress and
inventory within six (6) months after the effective date of termination.

 

9.5                                 Upon
the expiration of the TERM of this Agreement LICENSEE shall have a fully
paid-up, non-exclusive, irrevocable, royalty free license under the rights
granted in Article 2.

 

9.6                                 Nothing
herein shall be construed to release either party from any obligation that
accrued prior to expiration or any termination of this Agreement.  The following provisions shall survive any
termination of this Agreement: this Section 9.6 and Articles/Sections 1, 2,
4, 7, 8, 9.4, 10, 11, 12, 13, 14.3, 14.4, 14.7, 14.8, 14.9, 14.11 and 14.14,
and any other provision which by its nature is intended to survive any such
termination.  The following provisions
shall survive any expiration of the TERM of this Agreement: this Section 9.6
and Articles/Sections 1, 2, 8, 9.4, 9.5, 10, 11, 12, 13, 14.3, 14.4, 14.7, 14.8,
14.9, 14.11 and 14.14, and any other provision which by its nature is intended
to survive any such expiration.

 

ARTICLE 10 - CONFIDENTIALITY AND NON-DISCLOSURE

 

10.1                           Confidential
Information; Non-Disclosure.  “Confidential
Information” shall mean any technical, business, financial, customer or other
information disclosed by one party (the “disclosing party”) to the other party
(the “receiving party”) pursuant to this Agreement which is marked “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). Except as
expressly provided in Section 10.2 below, 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 LICENSEE relating
to the LICENSED PROCESSES, LICENSED PRODUCTS or LICENSED SERVICES whether or
not such information is marked, identified or confirmed.  Except to the extent expressly authorized by
this Agreement or by other prior written consent by the disclosing party, the
receiving party, during the term of this Agreement, and thereafter, shall: (i) treat
as confidential all Confidential Information of the other party; (ii) use
Confidential Information only for exercising the rights and fulfilling the
obligations set forth in this Agreement, (iii) implement reasonable
procedures to prohibit the disclosure, unauthorized duplication, misuse or
removal of the disclosing party’s Confidential Information; (iv) not
disclose Confidential Information to any third party, and (v) only
disclose the Confidential Information to (a) those of its employees who
have a need to know Confidential Information in order to exercise the rights
and fulfill the obligations set forth in this Agreement and (b) legal and
professional advisors and existing and potential investors

 

9

 

and their legal and
professional advisors, each of which is bound by a written agreement (or in the
case of attorneys or other professional advisors, formal ethical duties)
requiring such advisors and investors to treat, hold and maintain such Confidential
Information in accordance with the terms and conditions of this Agreement.  Without limiting the foregoing, the receiving
party shall protect the disclosing party’s 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.

 

10.2                           Exceptions.
 The receiving party shall have no
obligation or liability to the disclosing party with regard to any Confidential
Information of the disclosing party: (i) that was publicly known and
available at the time it was disclosed or becomes publicly known and available
through no fault, action, or inaction of the receiving party; (ii) was
known to the receiving party, without restriction, at the time of disclosure as
shown by the files of the receiving party in existence at the time of
disclosure; (iii) is disclosed with the prior written approval of the
disclosing party; (iv) was independently developed by the receiving party
without any use of the disclosing party’s Confidential Information, provided,
that the receiving party can demonstrate such independent development by
documented evidence prepared contemporaneously with such independent
development; (v) is disclosed pursuant to the order or requirement of a
court, administrative agency, or other governmental body, provided that the
receiving party shall provide prompt notice thereof and reasonable assistance
to the disclosing party to enable the disclosing party to seek a protective
order or otherwise prevent such disclosure, and provided further that such
disclosure is limited to the extent necessary to comply with such order and the
information shall otherwise be treated as Confidential Information; or (vi) that
is provided to the receiving party by an independent third party without
violating any confidentiality obligation to the disclosing party.

 

10.3                           Injunctive
Relief.  ACT and LICENSEE acknowledge
and agree that any breach of the confidentiality obligations imposed by this Section 10
will constitute immediate and irreparable harm to the disclosing party 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 Article 10,
including reasonable attorneys’ fees and expenses of litigation.

 

10.4                           Termination.
 Upon termination or expiration of this
Agreement, or upon the request of the disclosing party at any time, the
receiving party shall promptly return to the disclosing party, at its request,
all copies of Confidential Information received from the disclosing party, and
shall return or destroy, and document the destruction of, all summaries,
abstracts, extracts, or other documents which contain any Confidential
Information of the disclosing party in any form.  Notwithstanding the foregoing to the contrary,
LICENSEE shall have no obligation (even upon a request by ACT) to return or
destroy any KNOW-HOW (including tangible embodiments of KNOW-HOW) during the
Term of this Agreement.

 

10.5                           Survival.
 The obligations of ACT and LICENSEE
under this Article 10 shall survive any expiration or termination of this
Agreement.

 

10

 

ARTICLE 11 - PAYMENTS, NOTICES, AND OTHER
COMMUNICATIONS

 

Any
payment, notice or other communication pursuant to this Agreement shall be in
writing and sent by certified first class mail, postage prepaid, return receipt
requested, or by nationally recognized overnight carrier addressed to the
parties at the following addresses or such other addresses as such party
furnishes to the other party in accordance with this paragraph.  Such notices, payments, or other
communications shall be effective upon receipt.

 

In
the case of ACT:

 

Advanced
Cell Technology, Inc.

One
Innovation Drive

Worcester,
MA 01605

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

 

With a copy to:

 

Pierce
Atwood

One
Monument Square

Portland,
ME 04101

Attention:
William L. Worden, Esq.

 

In
the case of LICENSEE:

 

Pureline
Genetics LLC

190
Route 165

Preston,
CT 06365

Attention:
Robert Saglio, President

 

With a copy to:                                     Goodwin
Procter LLP

Exchange
Place

53
State Street

Boston,
MA 02109

Attention:
Andrew F. Viles, P.C.

 

ARTICLE 12 - RESPRESENTATIONS AND WARRANTIES; DISCLAIMER

 

12.1                           ACT
represents and warrants that it owns or has licensed with a sublicensable
interest the PATENT RIGHTS and KNOW-HOW, that it has the full legal right and
power to grant the licenses granted hereunder, that this Agreement constitutes
the binding legal obligation of ACT, enforceable in accordance with its terms
and that the execution and performance of this Agreement by ACT will not
violate, contravene or conflict with any other agreement to which ACT is a
party or by which it is bound or with any law, rule or regulation
applicable to ACT.

 

12.2                           LICENSEE
represents and warrants that it has full corporate power and authority to enter
into this Agreement, that this Agreement constitutes the binding legal
obligation of LICENSEE and that execution and performance of this Agreement by
LICENSEE will not violate, contravene or conflict with any other agreement to
which LICENSEE is a party or by which it is bound or with any

 

11

 

law, rule or regulation
applicable to LICENSEE.

 

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

 

ARTICLE 13 - LIMITATION OF LIABILITY

 

13.1                           EXCEPT
FOR ANY LIABILITY TO ANY THIRD PARTIES PURSUANT TO ARTICLE 8 OF THIS
AGREEMENT, IN NO EVENT SHALL ACT OR LICENSEE OR THEIR, ITS DIRECTORS, OFFICERS,
EMPLOYEES OR AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF
ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS
OF WHETHER ACT OR LICENSEE SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW,
OR IN FACT SHALL KNOW OF THE POSSIBILITY OF SUCH DAMAGES.

 

ARTICLE 14 - MISCELLANEOUS PROVISIONS

 

14.1                           LICENSEE
shall comply with all local, state, federal and international laws and
regulations relating to the development, manufacture, use, provision, and sale
of LICENSED PRODUCTS, LICENSED PROCESSES and LICENSED SERVICES.  Without limiting the generality of the
foregoing, LICENSEE agrees to comply with the following:

 

(a)                                  LICENSEE
shall obtain all necessary approvals from the FDA, USDA, or any similar
governmental authorities of any foreign jurisdiction in which LICENSEE intends
to make, use, or sell LICENSED PRODUCTS or to perform LICENSED PROCESSES or
LICENSED SERVICES.

 

(b)                                 LICENSEE
shall comply fully with any and all applicable local, state, federal and
international laws and regulations relating to the LICENSED PRODUCTS, LICENSED
PROCESSES and LICENSED SERVICES, and the PATENT RIGHTS, in the TERRITORY,
including without limitation all 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, LICENSED
PROCESSES or LICENSED SERVICES and any technology relating thereto.  LICENSEE hereby gives written assurance that
it will comply with all such import or export laws and regulations (including
without limitation all Export Administration Regulations of the United States
Department of Commerce), that it bears sole responsibility for any violation of
such laws and regulations, and that it will indemnify, defend, and hold ACT and
the University harmless (in accordance with Article 8) for the
consequences of any such violation.

 

(c)                                  To
the extent that any invention claimed in the PATENT RIGHTS has been

 

12

 

partially funded by the
United States Government, and only to the extent required by applicable laws
and regulations, LICENSEE 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 a domestic manufacturer 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 LICENSEE and, upon LICENSEE’S
request, shall cooperate with LICENSEE in seeking such a waiver.

 

14.2                           LICENSEE
shall not create or incur or cause to be incurred or to exist any lien,
encumbrance, pledge, charge, restriction or other security interest of any kind
upon the PATENT RIGHTS.

 

14.3                           Neither
party 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 or delayed,
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 LICENSEE 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 applicable 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.

 

14.4                           No
implied licenses are granted pursuant to the terms of this Agreement. No
licensed rights shall be created by implication or estoppel.

 

14.5                           Nothing
herein shall be deemed to constitute either party as the agent or
representative of the 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, nor shall
either party have authority to speak for, represent or obligate the other party
in any way without prior written authority from the other party.

 

14.6                           To the
extent commercially feasible, and consistent with prevailing business practices
and applicable law, all LICENSED PRODUCTS sold pursuant to this Agreement will
be marked with the number of each issued patent that applies to such LICENSED
PRODUCTS.

 

14.7                           This
Agreement shall be construed, governed, interpreted and applied in accordance with
the laws of the Commonwealth of Massachusetts, U.S.A. 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.

 

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

 

13

 

14.9                           The
provisions of this Agreement are severable, and in the event that any provision
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.

 

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

 

14.11                     This
Agreement may not be assigned by LICENSEE without the prior written consent of
ACT, which consent shall be granted or denied in ACT’s sole discretion.  ACT may not assign this Agreement without the
consent of LICENSEE, which consent shall not be unreasonably withheld or
delayed, except that ACT may assign this Agreement to an affiliate or to a
successor in connection with the merger, consolidation, or sale of all or
substantially all of its assets or that portion of its business to which this
Agreement relates.  Notwithstanding the
foregoing to the contrary, this restriction on the assignment by LICENSEE of
this Agreement shall not prevent the assignment of this Agreement in connection
with a sale of all or substantially all of the assets of LICENSEE, so long as
the purchaser of the assets agrees to assume any and all outstanding
liabilities to LICENSOR under this Agreement, including but not limited to any
outstanding amounts under the promissory note referred to in paragraph 4.1.

 

14.12                     This
Agreement has been prepared jointly and no rule of strict construction shall
be applied against either party.  In this
Agreement, the singular shall include the plural and vice versa and the word “including”
shall be deemed to be followed by the phrase “without limitation.” The section headings
contained in this Agreement are inserted for convenience only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

14.13                     This
Agreement may be executed in counterparts, each of which together shall
constitute one and the same Agreement.

 

14.14                     All rights
and licenses granted under or pursuant to this Agreement by ACT to LICENSEE
are, and shall otherwise be deemed to be, for purposes of Paragraph 365(n) of
the U.S. Bankruptcy Code (the “Code”), licenses to rights in “intellectual
property” as defined in the Code.  The
parties hereto agree that LICENSEE, as a licensee of such rights under this
Agreement, shall retain and may fully exercise all of its rights and elections
under the Code.  The parties hereto
further agree that, in the event of the commencement of a bankruptcy proceeding
by or against ACT including a proceeding under the Code, LICENSEE shall be
entitled to a complete duplicate of (or complete access to, as appropriate) any
such intellectual property and all embodiments of such intellectual property, including
the PATENT RIGHTS and KNOW-HOW, and the same, if not already in LICENSEE’s
possession, shall be promptly delivered to LICENSEE upon any such commencement
of a bankruptcy proceeding upon written request therefore by LICENSEE.

 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement on the EFFECTIVE
DATE.

 

14

 

	
  ADVANCED CELL
  TECHNOLOGY, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Michael D. West

  	
   

  
	
  Printed Name:

  	
  Michael D. West, Ph.D.

  
	
  Title:

  	
  President &
  Chief Executive Officer

  
	
   

  
	
   

  
	
  PURELINE GENETICS LLC

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Robert Saglio

  	
   

  
	
  Printed Name:

  	
  Robert Saglio

  
	
  Title:

  	
  President

  
					

 

15

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"}]]