Document:

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                                                                   Exhibit 10.32

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

                                LICENSE AGREEMENT
                MICHIGAN FILE [**], [**], [**] & [**] TECHNOLOGY

This Agreement is effective as of the 30th day of November, 1997 (the "Effective
Date"), between Reprogenesis, Inc., a Texas corporation with offices located at
10 Sylvan Drive, Suite 27, St. Simons Island, Georgia 31522 ("LICENSEE"), and
the Regents of the University of Michigan, a constitutional corporation of the
State of Michigan ("MICHIGAN"). LICENSEE and MICHIGAN agree as follows:

1.    BACKGROUND.

1.1   MICHIGAN has developed rights, including potential patent rights, in
      "TECHNOLOGY" as defined below.

1.2   MICHIGAN has granted to LICENSEE an option to enter into this Agreement
      under an option agreement made effective on July 1, 1996.

1.3   LICENSEE has timely exercised its option under such option agreement and
      MICHIGAN has extended the exercise period stated therein until and
      including November 30, 1997.

1.4   LICENSEE desires to obtain, and MICHIGAN, consistent with its mission of
      education and research, desires to grant, a license to the TECHNOLOGY on
      the terms and conditions listed below.

2.    DEFINITIONS.

2.1   "Affiliate(s)" means any individual, corporation, partnership,
      proprietorship or other entity controlled by, controlling, or under common
      control with LICENSEE through equity ownership, ability to elect
      directors, or because a majority of directors overlap, and includes any
      individual, corporation, partnership, proprietorship or other entity
      directly or indirectly owning, owned by or under common ownership with
      LICENSEE to the extent of twenty-five percent (25%) or more of the voting
      shares, including shares owned beneficially by such party.

2.2   "Field(s) of Use" refers to the field or fields for which "Products" (as
      defined in Paragraph 2.10 below) may be designed, manufactured, used
      and/or marketed under this Agreement, and means all fields of use.

2.3   "Confidential Information" means any confidential or proprietary
      information furnished by one Party (the "Disclosing Party") to the other
      Party (the "Receiving Party") as required by this Agreement, provided that
      such information is designated as confidential as set out in Paragraph
      30.1 (Confidential Information includes, without limitation, royalty
      reports furnished to MICHIGAN under Article 5, but specifically excludes
      the totals of royalties paid to MICHIGAN, and the existence and terms of
      this Agreement).
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2.4   "First Commercial Reagent Sale" means the first sale of any Product by
      LICENSEE or an Affiliate or "Sublicensee" (as defined in Paragraph 2.12
      below), if such Product is not sold as a drug, device or biologic for use
      in the practice of veterinary or human medicine either alone or in
      combination with other substances, and requires no governmental approval
      or license to be marketed.

2.5   "First Commercial Sale" means the first sale not a First Commercial
      Reagent Sale of any Product by LICENSEE or an Affiliate or Sublicensee,
      other than sale of a Product for use in field trials or in clinical trials
      being conducted to obtain FDA or other governmental approvals to market
      Products. LICENSEE shall demonstrate to MICHIGAN's reasonable satisfaction
      that such sale is an arm's length transaction entered into in good faith
      between buyer and LICENSEE or an Affiliate or Sublicensee.

2.6   "Gross Sublicensing Revenues" means all amounts received and all other
      consideration received (or, when in a form other than cash or its
      equivalent, the fair market value thereof when received) by LICENSEE and
      its Affiliates under any sublicense to a Sublicensee, and as a result of
      any use, distribution, or sale of Products (as defined in Paragraph 2.10
      below) where Net Sales does not include such amounts and other
      consideration.

2.7   "Licensed Patent(s)" means all patents and patent applications, all
      foreign equivalent patent applications and Patent Cooperation Treaty
      filings, and all patents issuing therefrom, in which MICHIGAN has or
      acquires a property interest, and

      (1) which cover an invention included in the TECHNOLOGY (Appendix A lists
          the patent applications currently filed on inventions included in the
          TECHNOLOGY), or

      (2) which this definition includes by operation of Paragraph 9.3 of this
          Agreement.

2.8   "Net Sales" means the sum, over the term of this Agreement, of all amounts
      received and all other consideration received (or, when in a form other
      than cash or its equivalent, the fair market value thereof when received)
      by LICENSEE and its Affiliates from persons or entities due to or by
      reason of the sale, distribution or use of Products, less the following
      deductions and offsets, but only to the extent such sums are otherwise
      included in the computation of Net Sales, or are paid by LICENSEE and not
      otherwise reimbursed: refunds, rebates, replacements or credits actually
      allowed and taken by purchasers for return of Products; customary trade,
      quantity and cash discounts actually allowed and taken; excise,
      value-added, and sales taxes actually paid by LICENSEE for Products; and
      shipping and handling and shipping insurance charges actually paid by
      LICENSEE for Products. (Note that amounts not actually received, such as
      bad debts left unpaid to LICENSEE, are not included in Net Sales.)

2.9   "Parties" in singular or plural usage as required by the context means
      LICENSEE and/or MICHIGAN.

2.10  "Product(s)" means any product (s) (including any service or process to be
      performed for customers) whose manufacture, use or sale (or performance)
      in any country would, but

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

      for this Agreement, comprise an infringement, including contributory
      infringement, of one or more Valid Claims.

2.11  "Royalty Quarter(s)" means the three-month periods ending on the last day
      of March, June, September and December of each year.

2.12  "Sublicensee(s)" means any person or entity, except an Affiliate,
      sublicensed by LICENSEE under this Agreement to make, have made, use,
      market, sell, lease, or offer for sale, in the Territory, Products
      designed and marketed for use in a Field of Use.

2.13  "TECHNOLOGY" as used in this Agreement means all information,
      manufacturing techniques, data, designs or concepts (whether or not
      publicly known or available) covering:

      (1) [**] developed by MICHIGAN's employees Wai Hung Wong, David J. Mooney,
          Jon A. Rowley, and Kamal H. Bouhadir as described in MICHIGAN's
          Technology Management office Files No. [**] and [**] entitled,
          respectively, [**], encompassing Provisional U.S. Patent Applications
          Serial No. [**] and Serial No. [**] entitled, respectively, [**] both
          filed on, [**]; and

      (2) [**] developed by MICHIGAN-s employees Kamal H. Bouhadir, Jon A.
          Rowley and David J. Mooney, as described in MICHIGAN's Technology
          management office File No. [**] entitled [**] and encompassing
          Provisional U.S. Patent Application Serial No. [**] of same title
          filed on [**]; and

      (3) [**] developed by MICHIGAN's employees David J. Mooney, Leatrese D.
          Harris, and Lonnie Shea as described in MICHIGAN's Technology
          Management Office File No. [**] entitled [**] and encompassing
          Provisional U.S. Patent Application Serial No. [**] entitled [**] and
          filed on [**];

      (4) the technologies specified in subparagraphs 2.13(l) and 2.13(2) as
          described and claimed in a patent application filed pursuant to the
          Patent Cooperation Treaty on [**], Serial No. PCT/US[**], entitled
          [**].

      (5) all inventions and discoveries in which MICHIGAN acquires ownership
          pursuant to Article 9 below.

2.14  "Territory" means all countries of the world.

2.15  "Valid Claim(s)" means any claim(s) in an unexpired patent or pending in a
      patent application included within the Licensed Patents excepting only
      claims that:

      (1) a court or other governmental agency of competent jurisdiction has
          decided are unenforceable, unpatentable, or invalid, unappealable or
          unappealed within the time allowed for appeal; or

      (2) a reissue or disclaimer has rendered invalid or unenforceable. If in
          any country two or more such decisions conflict with respect to the
          validity of the same claim,

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

          the decision of the higher or highest tribunal controls; however, if
          the tribunals are of equal rank, then the decision or decisions
          upholding the claim prevails when the conflicting decisions are equal
          in number, and the majority of decisions prevails when the conflicting
          decisions are unequal in number.

3.    GRANT OF LICENSE.

3.1   MICHIGAN hereby grants to LICENSEE the exclusive license under the
      Licensed Patents to make, have made, use, market, lease, offer for sale
      and sell, in the Territory, Products designed and marketed solely for use
      in any Field of Use; with the right to grant sublicenses to Affiliates and
      Sublicensees subject to the terms and provisions of Article 8 below.

3.2   LICENSEE may maintain periodic communication with MICHIGAN to identify
      intellectual property related to the TECHNOLOGY developed by or under the
      direction of MICHIGAN's faculty member Dr. David Mooney, for possible
      licensing in fields in which LICENSEE is making a current, significant
      commitment. Upon request of LICENSEE (and provided no conflict with any
      then-existing agreements or commitments regarding those technologies would
      result), MICHIGAN will participate in good faith discussions with LICENSEE
      regarding license rights to any such technologies (although LICENSEE
      acknowledges that its right to good-faith discussions may not be exercised
      to exclude other potential licensees from discussions with MICHIGAN).

3.3   MICHIGAN reserves the right to practice the Technology and the Licensed
      Patents solely for research and education purposes.

3.4   MICHIGAN further reserves the right, as 37CFR401.14(b) requires, to grant
      to the U.S. Government a non-exclusive, nontransferable, irrevocable,
      paid-up license or licenses to practice or have practiced for or on behalf
      of the United States all patent applications and resulting patents
      included in the TECHNOLOGY and the Licensed Patents, if agreements between
      MICHIGAN and the U.S. Government covering funded research relating to the
      TECHNOLOGY or the Licensed Patents so require.

4.    CONSIDERATION.

4.1   LICENSEE shall pay to MICHIGAN a one-time license issue fee of [**]
      dollars ($[**]).

4.2   LICENSEE shall also pay to MICHIGAN, with respect to each Royalty Quarter,
      a royalty equal to [**] percent ([**]%) of Net Sales of LICENSEE and
      Affiliate(s) for all Products.

      Reduction of royalties: The royalties payable under Paragraph 4.2 above
      may be reduced by LICENSEE via the following methods:

      Method A: In circumstances where LICENSEE or Affiliates generate Net Sales
      due to the sale of combination products (being a Product sold in
      combination with a discrete system, device, item of equipment or apparatus
      which is not itself a Product), royalties may be calculated only on that
      portion of the overall Net Sales which is left after

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

      subtracting the fair market sales price of the discrete system, device,
      item of equipment or apparatus which is not itself a Product (provided
      that, where such Products are also sold separately, the resultant royalty
      shall not be less than if the Product had been sold separately);

      Method B: In circumstances where LICENSEE is required to make payments to
      one or more third parties in consideration for license rights to patents
      or technology necessary to make Products (excluding the discrete
      components of combination products), LICENSEE may deduct [**] percent
      ([**]%) of such payments from the royalties otherwise payable to MICHIGAN.

      Limitation: Where LICENSEE applies either Method A or Method B, the
      royalties payable for the Products so affected shall not be reduced by
      more than [**] ([**]%) of the royalty that would otherwise have been
      payable. Where LICENSEE applies both Method A and Method B to the same
      unit of Product, the royalties payable for the Products so affected shall
      not be reduced by more than [**] ([**]%) of the royalty that would
      otherwise have been payable.

      Method C: In circumstances where LICENSEE or Affiliates expect to sell
      Product(s), directly and in volume, to a horizontal market in which then
      ongoing sales of non-infringing substitute products would materially limit
      the profit margin on sales of Product(s), and LICENSEE or Affiliates
      reasonably demonstrate to MICHIGAN that such market conditions prevail,
      then the Parties agree to meet in advance of such sales and discuss an
      appropriate royalty rate for such Products more accurately reflecting a
      share of the expected profit margin. This negotiated rate shall be applied
      in lieu of the application of Method A or B above to such Net Sales.

4.3   LICENSEE shall also pay MICHIGAN, with respect to each Royalty Quarter, a
      royalty equal to (a) [**] percent ([**]%) of Gross Sublicensing Revenues
      if only rights to Licensed Patents are sublicensed; or (b) [**] ([**]%) of
      Gross Sublicensing Revenues if the Gross Sublicensing Revenues includes
      revenue received for Licensed Patent rights sublicensed in conjunction
      with final end use products developed by LICENSEE and/or substantial
      technology developed by LICENSEE.

4.4   This Agreement imposes the obligation to pay MICHIGAN a royalty under this
      Article 4 only once for the same unit of Product regardless of the number
      of Valid Claims or Licensed Patents covering the same; however, to
      determine payments due, whenever the term "Product" applies to a property
      during various stages of manufacture,. use or sale (including interim
      sales among LICENSEE and its Affiliates where final sales to customers are
      made), then Net Sales equals the amount derived from the sale,
      distribution or use of such Product by LICENSEE or Affiliates at the stage
      of its highest invoiced value to unrelated third parties.

4.5   LICENSEE shall pay to MICHIGAN an annual license maintenance fee. This
      annual fee accrues in the Royalty Quarter ending in March of the years
      specified below. LICENSEE may credit in full each annual fee actually paid
      to MICHIGAN against all royalties (as set forth in Paragraph 4.2 above)
      otherwise due MICHIGAN for the calendar

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

      year in which LICENSEE pays the specific annual fee. The year for which
      LICENSEE may take credits against royalties includes the Royalty Quarter
      in which the annual fee accrues and the next three Royalty Quarters.

      The annual license maintenance fees are as follows:

      (1)  In 1997: $[**];

      (2)  In 1998: $[**];

      (3)  In 1999: $[**];

      (4)  In 2000: $[**];

      (5)  In 2001: $[**];

      (6)  In 2002: $[**];

      (7)  In 2003: $[**];

      (8)  In 2004: $[**];

      (9)  In 2005 and in each year thereafter during the term of this
           Agreement: $[**].

      Also, notwithstanding (1-9) above (and in place of the amounts therein
      listed, when applicable):

      (10) In the calendar year following the first year in which. LICENSEE
           first obtains any required governmental approval or license in the
           United States, Japan, or any European Union nation, to market any
           product for any therapeutic purpose as a drug, device or biologic,
           either alone or in combination with other substances: $[**];

      (11) In the year next succeeding the year defined in (10); $[**];

      (12) In the year next succeeding the year defined in (11).; $[**];

      (13) In the year next succeeding the year defined in (12) and in each
           succeeding calendar year thereafter during the term of this
           Agreement; $[**].

      Also, notwithstanding (1-13) above (and in place of the amounts therein
      listed, when applicable):

      (14) In each of the first and second years following the First Commercial
           Sale: $[**].

      (15) In the third year following the First Commercial Sale: $[**].

      (16) In the fourth year following the First Commercial Sale, and in each
           succeeding calendar year thereafter during the term of this
           Agreement: $[**].

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

Also, notwithstanding (1-16) above (and in addition to any amounts therein
listed):

      (17) In each of the first and second years following the First Commercial
           Reagent Sale: $[**].

      (18) In the third year following the First Commercial Reagent Sale: $[**].

      (19) In the fourth year following the First Commercial Reagent Sale, and
           in each year thereafter during the term of this Agreement: $[**].

4.6   Except as provided in the definition of Net Sales, all royalty payments to
      MICHIGAN under this Agreement are without deduction for sales, use,
      excise, personal property or other similar taxes or other duties imposed
      on such payments by the government of any country or any political
      subdivision thereof; and LICENSEE shall assume and pay any such taxes;
      except that LICENSEE may deduct from royalty payments taxes levied upon
      the export of royalties by a government other than the U.S., and required
      to be withheld and paid on MICHIGAN's behalf by LICENSEE (LICENSEE shall
      cooperate in establishing MICHIGAN's exemption from such taxes where
      appropriate).

4.7   In the event that the patents that ultimately issue among the Licensed
      Patents contain only claims that are substantially narrower than the
      claims of the patent applications that are within the Licensed Patents as
      of the Effective Date (that is, if prosecution of the Licensed Patents
      finally results in unexpectedly severe restriction of the coverage of the
      claims), to the competitive detriment of LICENSEE, then MICHIGAN agrees to
      discuss the possibility of renegotiating the royalty rate and other
      financial terms applicable to the affected Product. Any such financial
      relief will be on a country-by-country basis and may be temporary or
      permanent depending upon the circumstances. The Parties acknowledge and
      agree that MICHIGAN is under no legal obligation to alter the financial
      terms set forth in this Article 4, but MICHIGAN is under an obligation to
      enter into discussions with LICENSEE for a reasonable period of time.

5.    REPORTS.

5.1   Annually, until the first to occur of the First Commercial Sale or First
      Commercial Reagent Sale, and thereafter within sixty (60) days after each
      Royalty Quarter closes (including the close of any Royalty Quarter
      immediately following any termination of this Agreement), LICENSEE shall
      report to MICHIGAN for that Royalty Quarter:

      (1)  all royalties accruing to MICHIGAN; and

      (2)  the gross sales and Net Sales of Products by LICENSEE and Affiliates,
           and

      (3)  the source and amount of all Gross Sublicensing Revenues (including,
           where such information is provided to LICENSEE or Affiliates, the
           gross sales and net sales of Products by Sublicensees), and

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      (4)  any other revenues for which payments are due, and the amount of such
           payments, and the various calculations used to arrive at those
           amounts, including the quantity, description (nomenclature and type
           designation), country of manufacture and country of sale of Products.

      If no payment is due, LICENSEE shall so report.

5.2   LICENSEE covenants that it will promptly establish and consistently employ
      a system of specific nomenclature and type designations for Products to
      permit identification and segregation of various types where necessary;
      LICENSEE, Affiliates and Sublicensees shall consistently employ the system
      when rendering invoices thereon and shall inform MICHIGAN, or its
      auditors, when requested, as to the details concerning such nomenclature
      system as well as to all additions thereto and changes therein.

5.3   LICENSEE shall keep, and shall require its Affiliates and Sublicensees to
      keep, true and accurate records and books of account containing data
      reasonably required for the computation and verification of payments due
      as provided by this Agreement. LICENSEE shall:

      (1)  open such books and records for inspection upon reasonable notice
           during business hours by either MICHIGAN auditor(s) or an independent
           certified accountant selected by MICHIGAN, for the purpose of
           verifying the amount of payments due and payable;

      (2)  retain such books and records for six (6) years from date of
           origination.

      These rights of inspection survive any termination of this Agreement.
      MICHIGAN is responsible for all expenses of such inspection, except that
      if any inspection reveals an underpayment greater than ten percent (10%)
      of royalties due MICHIGAN, then LICENSEE shall pay all expenses of that
      inspection and the amount of the underpayment immediately to MICHIGAN.

      MICHIGAN may exercise its rights of inspection under this Paragraph no
      more frequently than once in any twelve (12) month period and shall
      perform such rights of inspection in a manner to minimize unreasonable
      interference with LICENSEE's business operations. The MICHIGAN auditor(s)
      or the independent certified accountant selected by MICHIGAN shall not
      disclose to MICHIGAN any information other than information relating to
      (and information necessary for the proof of) accuracy of reports and
      payments delivered under this Agreement. The confidentiality of such books
      and records shall be protected in accordance with Article 30.

5.4   LICENSEE shall direct its authorized representative to certify that
      reports required hereunder are correct to the best of LICENSEE's knowledge
      and information.

6.    TIMES AND CURRENCIES OF PAYMENTS.

6.1   Payments accrued during each Royalty Quarter are due and payable in Ann
      Arbor, Michigan on the date each quarterly report is due (as provided in
      Paragraph 5.1).

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

      LICENSEE shall include such payments, in United States dollars, with the
      report. LICENSEE agrees to make all payments due hereunder to MICHIGAN by
      check made payable to "The Regents of The University of Michigan," and
      sent to MICHIGAN according to the provisions for notices set forth in
      Article 21 herein.

6.2   On all amounts outstanding and payable to MICHIGAN, interest accrues from
      the date the amount is due at [**] above, the prime lending rate as
      established by the Chase Manhattan Bank, N.A., in New York City, New York,
      or at a lower rate if required by law.

6.3   For each Royalty Quarter, LICENSEE and Affiliates shall convert any Net
      Sales or Gross Sublicensing Revenues they receive in foreign currency into
      its equivalent in United States dollars at the exchange rate of the
      currency as reported (or if erroneously reported, as subsequently
      corrected) in the Wall Street Journal on the last business day of the
      Royalty Quarter (or if not reported on that date, as quoted by the Chase
      Manhattan Bank, N.A., in New York City, New York).

6.4   Except as provided in the definition of Net Sales, all royalty payments to
      MICHIGAN under this Agreement are without deduction for sales, use,
      excise, personal property or other similar taxes or other duties imposed
      on such payments by the government of any country or any political
      subdivision thereof; and LICENSEE shall assume and pay any such taxes.

7.    COMMERCIALIZATION.

7.1   LICENSEE assumes full responsibility to do all that is necessary to:

      (1)  obtain any governmental approvals to manufacture or to sell Products;

      (2)  comply with all laws and regulations with respect to Products; and

      (3)  ensure the safe production, storage, handling, transport, packaging
           and distribution of Products.

7.2   LICENSEE agrees to use its best efforts to develop Products, obtain any
      government approvals necessary, and manufacture and sell Products at the
      earliest possible date; and effectively to exploit, market and manufacture
      in sufficient quantities to meet anticipated customer demand and to make
      the benefits of the Products reasonably available to the public.

7.3   LICENSEE agrees to manufacture or have manufactured all Products
      substantially in the United States. If U.S. manufacture is not practically
      feasible, then MICHIGAN shall cooperate with LICENSEE in obtaining waivers
      of this requirement from the U.S. Government.

7.4   LICENSEE shall use its best efforts to alert all potential customers and
      distributees that Products are not intended for any therapeutic or
      clinical diagnostic uses unless properly approved therefor pursuant to
      7.1.

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7.5   Within fifteen (15) days of the First Commercial Reagent Sale, and also
      within fifteen (15) of the First Commercial Sale, LICENSEE shall report by
      written letter to MICHIGAN the date and general terms of such sale.

8.    SUBLICENSING.

8.1   LICENSEE has the exclusive right to grant sublicenses to its rights under
      Article 3 above to Affiliates and Sublicensees, to make, have made, use,
      market, lease, offer for sale and sell, Products in the Territory.

8.2   LICENSEE shall notify MICHIGAN of every sublicense agreement and each
      amendment thereto, within thirty (30) days after their execution, and
      indicate the name of the Sublicensee or Affiliate, the territory of the
      sublicense, the scope of the sublicense, and the nature, timing and
      amounts of all fees and royalties to be paid thereunder.

8.3   LICENSEE shall include in any sublicense granted under this Article 8 a
      provision that the sublicense terminates upon any termination of this
      Agreement.

8.4   LICENSEE shall require that all sublicenses:

      (1)  be consistent with the terms and conditions of this Agreement;

      (2)  contain the Sublicensee's or Affiliate's acknowledgments of
           MICHIGAN's rights in the TECHNOLOGY and Licensed Patents, and the
           disclaimer of warranty and limitation on MICHIGAN's liability, as
           provided by Article 12 below.

      (3)  contain provisions under which the Sublicensee or Affiliate accepts
           duties at least equivalent to those accepted by the LICENSEE in the
           following paragraphs:

           5.3 duty to keep records

           12.4 duty to avoid improper representations or responsibilities

           13.1 duty to defend, hold harmless, and indemnify MICHIGAN

           13.3 duty to maintain insurance

           17  duty to control exports

           19  duty to restrict the use of MICHIGAN's name

           20  duty to properly mark product with Patent notices

8.5   LICENSEE shall require that all sublicenses contain a provision obligating
      each Sublicensee or Affiliate to pay taxes due, if any, in the same manner
      as set out in Paragraph 6.4 above or, should the sublicense be assigned to
      MICHIGAN, to make the Sublicensee or Affiliate responsible for such taxes.

8.6   LICENSEE shall require that all sublicenses contain the right for LICENSEE
      to assign its rights under the sublicense to MICHIGAN.

9.    OWNERSHIP OF INTELLECTUAL PROPERTY.

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9.1   LICENSEE acknowledges MICHIGAN's ownership interest in all Licensed
      Patents as defined in Paragraph 2.7(l) above.

9.2   LICENSEE might engage MICHIGAN employees as employees or consultants to
      LICENSEE or Affiliates during the time of their employment with MICHIGAN.
      LICENSEE and MICHIGAN hereby agree that the following provisions govern
      the rights to any inventions, discoveries or computer software that
      represent improvements upon the Licensed Patents or otherwise relate to
      the TECHNOLOGY whether or not patentable, which any MICHIGAN employee
      conceives, reduces to practice or develops while concurrently employed by
      LICENSEE or Affiliates during the term of his or her employment with
      MICHIGAN and the term of this Agreement:

      (1)  Where MICHIGAN employees concurrently employed by LICENSEE or
           Affiliates, in combination with other LICENSEE or Affiliate employees
           not concurrently employed by MICHIGAN, constitute the group of
           inventors/developers, MICHIGAN and LICENSEE are joint owners of such
           inventions, discoveries and/or computer software, and MICHIGAN and
           LICENSEE shall require that any resulting patent rights and
           copyrights be assigned jointly to MICHIGAN and LICENSEE;

      (2)  Where MICHIGAN employees concurrently employed by LICENSEE or
           Affiliates constitute part or all of the group of
           inventors/developers, and no LICENSEE or Affiliate employees not
           concurrently employed by MICHIGAN constitute any part of the group of
           inventors/developers, LICENSEE shall grant MICHIGAN sole ownership
           (as between MICHIGAN and LICENSEE) of such inventions, discoveries
           and/or computer software, and MICHIGAN and LICENSEE shall require
           that any resulting patent rights and copyrights be assigned solely to
           MICHIGAN.

9.3   Where not precluded by or otherwise conflicting with MICHIGAN's
      then-existing agreements with any third parties, the definition of
      TECHNOLOGY in Paragraph 2.13 above encompasses inventions, discoveries
      and/or computer software included under Subparagraph 9.2(1) or (2) above
      and conceived, reduced to practice or developed during the performance of
      duties as employee or consultant to LICENSEE, and the definition of
      Licensed Patents in Paragraph 2.7 above encompasses any resulting patent
      rights.

10.   PATENT APPLICATIONS AND MAINTENANCE.

10.1  MICHIGAN will control all aspects of filing, prosecuting, and maintaining
      Licensed Patents, including foreign filings and Patent Cooperation Treaty
      filings. LICENSEE shall, at its own expense, perform all actions and
      execute or cause to be executed all documents necessary to support such
      filing, prosecution, or maintenance.

10.2  MICHIGAN shall notify LICENSEE of all information received by MICHIGAN
      relating to the filing, prosecution and maintenance of Licensed Patents,
      including any lapse, revocation, surrender, invalidation or abandonment of
      any of the Licensed Patents, in

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      sufficient time to allow, where possible, LICENSEE to review and comment
      upon such information.

10.3  MICHIGAN may in its sole discretion decide to refrain from or to cease
      prosecuting or maintaining any of the Licensed Patents, including any
      foreign filing or any Patent Cooperation Treaty filing. If MICHIGAN makes
      any such decision, MICHIGAN shall notify LICENSEE promptly and in
      sufficient time to permit LICENSEE at its sole discretion to continue such
      prosecution or maintenance at LICENSEE's expense. If LICENSEE elects to
      continue such prosecution or maintenance, MICHIGAN shall execute such
      documents and perform such acts at LICENSEE's expense as may be reasonably
      necessary for LICENSEE so to continue such prosecution or maintenance.

10.4  LICENSEE shall reimburse patent expenses paid by MICHIGAN as follows:
      MICHIGAN shall provide notice to LICENSEE of all reasonable and necessary
      expenses paid by MICHIGAN in monitoring, drafting, filing, prosecuting and
      maintaining the Licensed Patents, and in maintaining or asserting its
      inventorship or ownership interest in Licensed Patent(s), including
      without limitation fees paid to outside counsel or consultants; patent
      office fees for filing, prosecution, reissue, reexamination and issue;
      maintenance fees; fees for foreign filings and Patent Cooperation Treaty
      filings; and reasonable travel expenses incurred by MICHIGAN employees for
      the purpose of monitoring, prosecuting and maintaining the Licensed
      Patents, but not including any part of any MICHIGAN employee's salary.
      MICHIGAN will include in the first such notice of such expenses all
      expenses that MICHIGAN has incurred to date with respect to all Licensed
      Patents that LICENSEE has not otherwise already reimbursed. Within thirty
      (30) days of the receipt of each such notice, LICENSEE shall reimburse
      MICHIGAN for all such reasonable and necessary expenses, except that
      MICHIGAN will not require LICENSEE to reimburse expenses incurred through
      foreign filings or Patent Cooperation Treaty filings, unless LICENSEE has
      requested such filings; however, in any case where LICENSEE fails to
      reimburse MICHIGAN promptly for any above-described expenses (whether or
      not related to filings requested by LICENSEE), the definitions of
      "TECHNOLOGY" and "Licensed Patents" herein shall not include any patent
      applications or resulting patents to which such unreimbursed expenses
      relate.

11.   INFRINGEMENT.

11.1  LICENSEE and MICHIGAN shall each inform the other promptly in writing of
      any alleged infringement of the Licensed Patents in any Field of Use by a
      third party and of any available evidence thereof.

11.2  During the term of this Agreement, LICENSEE has the first option to police
      the Licensed Patents and Products against infringement by other parties
      within the Territory and the Fields of Use. This right to police includes
      defending any action for declaratory judgment of non-infringement or
      invalidity; and prosecuting, defending or settling all infringement and
      declaratory judgment actions at its expense and through counsel of its
      selection, except that LICENSEE shall make any such settlement only with
      the advice and consent of MICHIGAN, which consent shall not be
      unreasonably withheld. MICHIGAN shall provide reasonable assistance to
      LICENSEE with respect to such

                                       12
<PAGE>

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

      actions, but only if LICENSEE reimburses MICHIGAN for out-of-pocket
      expenses incurred in connection with any such assistance rendered at
      LICENSEE's request or reasonably required by MICHIGAN. If LICENSEE elects
      to institute any such action or suit, MICHIGAN agrees to be named as a
      nominal party therein. MICHIGAN retains the right to participate, with
      counsel of its own choosing and at its own expense, in any action under
      this Paragraph 11.2.

11.3  If LICENSEE institutes an action for infringement of a Licensed Patent or
      defends a declaratory judgment or other action with respect to a Licensed
      Patent, then during the pendency of such litigation LICENSEE may withhold
      up to [**] percent ([**]%) of the payments otherwise thereafter due
      MICHIGAN under Paragraphs 4.2 and 4.3 above, applying that withholding
      towards reimbursement of no more than [**] ([**]) of LICENSEE's actual
      outside attorney fees and other direct, out-of-pocket litigation expenses
      (not to include any compensation paid to employees of LICENSEE or
      Affiliates). Any resulting settlement payments or damages awarded and
      received by LICENSEE shall be applied equally toward reimbursement of
      MICHIGAN's withheld royalties pursuant to this Paragraph and to LICENSEE's
      out-of-pocket expenses which were not reimbursed; of the remainder, if
      any, LICENSEE shall pay [**] percent ([**]%) to MICHIGAN.

      If LICENSEE has paid or pays an annual fee to MICHIGAN under Paragraph 4.5
      in the same year LICENSEE receives a payment or award as set out above,
      then LICENSEE may credit that annual fee against the share of the payment
      or award (after recovery of expenses and withheld royalties) otherwise due
      to MICHIGAN, exactly as if that share represented additional royalties due
      from LICENSEE.

11.4  If LICENSEE fails to take action to abate any alleged infringement of a
      Licensed Patent within sixty (60) days of a request by MICHIGAN to do so
      (or within a shorter period if required to preserve the legal rights of
      MICHIGAN under the laws of any relevant government or political
      subdivision thereof), then MICHIGAN has the right to take such action
      (including prosecution of a suit) at its expense and LICENSEE shall use
      reasonable efforts to cooperate in such action, at LICENSEE's expense. If
      MICHIGAN elects to institute any such action or suit, LICENSEE agrees to
      be named as a nominal party therein. MICHIGAN has full authority to settle
      on such terms as MICHIGAN shall determine, except that MICHIGAN shall not
      reach any settlement whereby it licenses a third party under any Licensed
      Patents in the Territory and any Field of Use without the consent of
      LICENSEE, which consent LICENSEE can withhold for any reason. After
      recovery of all of MICHIGAN's out-of-pocket litigation expenses, and after
      payment to LICENSEE (such payment not to exceed the recovery or settlement
      amounts actually received by MICHIGAN) of any unrecovered expenses paid by
      LICENSEE at MICHIGAN's request to third parties in furtherance of such
      action, MICHIGAN shall pay [**] percent ([**]%) of any remainder of any
      recovery or settlement to LICENSEE.

11.5  If LICENSEE initiates any legal action, or learns of a legal action
      initiated by any third party concerning any alleged infringement or
      non-infringement, or discovers any allegation by a third party of
      infringement resulting from the practice of Licensed Patents, then
      LICENSEE shall so notify MICHIGAN promptly in a detailed writing. LICENSEE

                                       13
<PAGE>

      shall promptly keep MICHIGAN informed and provide copies to MICHIGAN of
      all documents regarding all such proceedings or actions instituted by
      LICENSEE.

12.   NO WARRANTIES; LIMITATION ON MICHIGAN'S LIABILITY.

12.1  MICHIGAN, including its Regents, fellows, officers, employees and agents,
      make no representations or warranties that any Licensed Patent is or will
      be held valid, or that the manufacture, use, sale or other distribution of
      any Products will not infringe upon any patent or other rights not vested
      in MICHIGAN.

      MICHIGAN represents that:

      (1)  to its knowledge it has the lawful right to enter into this Agreement
           and grant the rights herein granted; and

      (2)  the claims included within the patent applications which comprise the
           Licensed Patents have been included in good faith and without
           fraudulent intent by MICHIGAN.

12.2  MICHIGAN, INCLUDING ITS REGENTS, FELLOWS, OFFICERS, EMPLOYEES AND AGENTS,
      MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND, EITHER
      EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF
      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND ASSUMES NO
      RESPONSIBILITIES WHATEVER WITH RESPECT TO DESIGN, DEVELOPMENT,
      MANUFACTURE, USE, SALE OR OTHER DISPOSITION BY LICENSEE, AFFILIATES OR
      SUBLICENSEES OF PRODUCTS.

12.3  THE ENTIRE RISK AS TO PERFORMANCE OF PRODUCTS IS ASSUMED BY LICENSEE,
      AFFILIATES AND SUBLICENSEES. In no event will MICHIGAN, including its
      Regents, fellows, officers, employees and agents, be responsible or liable
      for any direct, indirect, special, incidental, or consequential damages or
      lost profits or other economic loss or damage regarding Products, to
      LICENSEE, Affiliates, Sublicensees or any other individual or entity
      regardless of legal theory. The above limitations on liability apply even
      though MICHIGAN, its Regents, fellows, officers, employees or agents may
      have been advised of the possibility of such damage.

12.4  LICENSEE shall not, and shall require that its Affiliates and Sublicensees
      do not, make any statements, representations or warranties whatsoever to
      any person or entity, or accept any liabilities or responsibilities
      whatsoever from any person or entity, that are inconsistent with any
      disclaimer or limitation included in this Article 12.

13.   INDEMNITY; INSURANCE.

13.1  LICENSEE shall defend, indemnify and hold harmless and shall require its
      Affiliates and Sublicensees to defend, indemnify and hold harmless
      MICHIGAN, its Regents, fellows, officers, employees and agents
      ("Indemnitees"), for and against any claims, demands, damages, losses, and
      expenses of any nature (including reasonable attorneys, fees and

                                       14
<PAGE>

      other litigation expenses), resulting from, but not limited to, death,
      personal injury, illness, property damage, economic loss or products
      liability arising from any of the following:

      (1)  Any manufacture, use, sale or other disposition by LICENSEE,
           Affiliates, Sublicensees or transferees of Products;

      (2)  The direct or indirect use by any person of Products made, used, sold
           or otherwise distributed by LICENSEE, Affiliates or Sublicensees;

      (3)  The use by LICENSEE, Affiliates or Sublicensees of any invention or
           computer software related to the TECHNOLOGY or the Licensed Patents.

      The indemnification required above shall not apply to any liability,
      damage, loss or expense to the extent that it is directly attributable to
      (1) the grossly negligent or intentional misconduct of the Indemnitees, or
      (2) damages incurred by patients of MICHIGAN due to the negligent
      administration to them, by MICHIGAN, of Products supplied by LICENSEE.

13.2  MICHIGAN may participate at its option and expense through counsel of its
      own selection, and may join in any legal actions related to any such
      claims, demands, damages, losses and expenses under Paragraph 13.1 above.

13.3  Before any distribution of any Product by LICENSEE or an Affiliate,
      LICENSEE shall purchase and maintain in effect a policy of product
      liability insurance. Before any distribution of any Product by a
      Sublicensee, LICENSEE shall require that the Sublicensee purchase and
      maintain in effect a policy of product liability insurance. Each such
      insurance policy will provide reasonable coverage for all claims with
      respect to any Products manufactured, sold, licensed or otherwise
      distributed by LICENSEE and Affiliates -- or, in the case of a
      Sublicensee's policy, by the Sublicensee -- and will specify MICHIGAN,
      including its Regents, fellows, officers and employees, as an additional
      insured. LICENSEE shall furnish certificate(s) of such insurance to
      MICHIGAN, upon request.

14.   TERM AND TERMINATION.

14.1  Upon any termination of this Agreement, and except as provided herein to
      the contrary, all rights and obligations of the Parties hereunder cease,
      except as follows:

      (1)  Obligations to pay royalties and other sums accruing hereunder up to
           the day of such termination;

      (2)  MICHIGAN's rights to inspect books and records as described in
           Article 5, and LICENSEE's obligations to keep such records for the
           required time;

      (3)  Obligations to hold harmless, defend and indemnify MICHIGAN under
           Article 13;

                                       15
<PAGE>

      (4)  Any cause of action or claim of LICENSEE or MICHIGAN accrued or to
           accrue because of any breach or default by the other Party hereunder;

      (5)  The general rights, obligations, and understandings of Articles 2,
           12, 17, 19, 20, 28 and 29; and

      (6)  All other terms, provisions, representations, rights and obligations
           contained in this Agreement that by their sense and context are
           intended to survive until performance thereof by either or both
           Parties.

14.2  This Agreement will become effective on its Effective Date and, unless
      terminated under another, specific provision of this Agreement, will
      remain in effect until and terminate upon the last to expire of the
      Licensed Patents.

14.3  If LICENSEE at any time defaults in the payment of any fee or royalty or
      the making of any report hereunder, or makes any false report, or if
      either Party commits any material breach of any covenant or promise herein
      contained, and fails to remedy any such default, breach or report within
      thirty (30) days after written notice thereof by the other Party
      specifying such default, then that other Party may, at its option,
      terminate this Agreement and the license rights granted herein by notice
      in writing to such effect. Any such termination is without prejudice to
      either Party's other legal rights for breach of this Agreement.

14.4  LICENSEE may terminate this Agreement by giving MICHIGAN a notice of
      termination, which must include a statement of the reasons, whatever they
      may be, for such termination and the termination date established by
      LICENSEE, which date must not be sooner than ninety (90) days after the
      date of the notice. The Parties shall deem such notice to be final and,
      immediately upon receipt, of such notice of termination, MICHIGAN will
      have the right to enter into agreements with others for the manufacture,
      sale, and/or use of Products.

15.   ASSIGNMENT.

      Due to the unique relationship between the Parties, this Agreement is not
      assignable by either Party without the prior written consent of the other
      Party. Any attempt to assign this Agreement without such consent is void
      from the beginning. MICHIGAN shall provide such consent in connection with
      an assignment related to a change in the name or legal status of LICENSEE
      that does not affect its assets and the nature of its business activities,
      and MICHIGAN shal1 not unreasonably withhold consent for LICENSEE to
      assign this Agreement to a purchaser of all or substantially all of
      LICENSEE's business. No assignment is effective until the intended
      assignee agrees in writing to accept all the terms and conditions of this
      Agreement.

16.   REGISTRATION AND RECORDATION.

16.1  If the terms of this Agreement, or the terms of any assignment or license
      under this Agreement, are or become such as to require that the Agreement
      or license or any part thereof be registered with or reported to a
      national or supranational agency of any area in

                                       16
<PAGE>

      which LICENSEE, Affiliates or Sublicensees would do business, LICENSEE
      shall, at its expense, undertake such registration or report, and promptly
      supply to MICHIGAN notice and appropriate verification of the act of
      registration or report or any agency ruling resulting from it.

16.2  LICENSEE shall also carry out, at its expense, any formal recordation of
      this Agreement or any license herein granted that the law of any country
      requires as a prerequisite to enforceability of the Agreement or license
      in the courts of any such country or for other reasons, and shall promptly
      furnish to MICHIGAN appropriately verified proof of recordation.

17.   LAWS AND REGULATIONS OF THE UNITED STATES; EXPORT.

17.1  This Agreement is subject to all United States laws and regulations now or
      hereafter applicable to the subject matter of this Agreement.

17.2  LICENSEE shall comply, and shall require its Affiliates and Sublicensees
      to comply, with all provisions of any applicable laws, regulations, rules
      and orders relating to the license herein granted and to the testing,
      production, transportation, export, packaging, labeling, sale or use of
      Products, or otherwise applicable to LICENSEE's or its Affiliates' or
      Sublicensees' activities hereunder. LICENSEE shall obtain, and shall
      require its Affiliates and Sublicensees to obtain, such written assurances
      regarding export and re-export of technical data (including Products made
      by use of technical data) as the Office of Export Administration
      Regulations may require, and LICENSEE hereby gives such written assurances
      as may be required under those Regulations to MICHIGAN.

18.   BANKRUPTCY.

18.1  If during the term of this Agreement, LICENSEE makes an assignment for the
      benefit of creditors, or if proceedings in voluntary or involuntary
      bankruptcy are instituted on behalf of or against LICENSEE, or if a
      receiver or trustee is appointed for the property of LICENSEE, MICHIGAN
      may, at its option, terminate this Agreement and revoke the license herein
      granted by written notice to LICENSEE.

19.   USE OF MICHIGAN'S NAME.

      LICENSEE agrees to refrain from using and to require Affiliates and
      Sublicensees to refrain from using the name of MICHIGAN in publicity or
      advertising without the prior written approval of MICHIGAN. Reports in
      scientific literature and presentations of joint research and development
      work are not considered publicity.

20.   PRODUCT MARKING.

      To the extent commercially feasible and consistent with prevailing
      business practices, LICENSEE shall mark, and shall cause its Affiliates
      and Sublicensees to mark, all Products that are manufactured or sold under
      this Agreement with the number of each issued patent under the Licensed
      Patents that applies to such Product.

                                       17
<PAGE>

21.   NOTICES.

      Any notice, request, report or payment required or permitted to be given
      or made under this Agreement by either Party will be given by sending such
      notice by certified or registered mail, return receipt requested, to the
      address set forth below or such other address as such Party specifies by
      written notice given in conformity herewith. Any notice not so given is
      not valid until received, and any notice given according to the provisions
      of this Paragraph is effective when mailed.

      To MICHIGAN:        The University of Michigan
                          Technology Management Office
                          Wolverine Tower, Room 2071
                          3003 S. State Street
                          Ann Arbor, MI 48109-1280
                          Attn:  File No. 1221

      To LICENSEE:        Reprogenesis, Inc.
                          10 Sylvan Drive, Suite 27
                          St. Simons Island, Georgia 31522

22.   INVALIDITY.

      If a court of competent jurisdiction finds any term, provision, or
      covenant of this Agreement invalid, illegal or unenforceable, that term
      will be curtailed, limited or deleted, but only to the extent necessary to
      remove the invalidity, illegality or unenforceability, and without in any
      way affecting or impairing the remaining terms, provisions and covenants.

23.   ENTIRE AGREEMENT AND AMENDMENTS.

      This Agreement contains the entire understanding of the Parties concerning
      the matter contained herein. The Parties may modify, vary or alter any of
      the provisions of this Agreement for so long as it continues in force, but
      only by an instrument duly executed by authorized officials of both
      Parties hereto.

24.   WAIVER.

      No waiver by either Party of any breach of this Agreement, no matter how
      long continuing or how often repeated, is a waiver of any subsequent
      breach thereof, nor is any delay or omission by either Party in the
      exercise of any right, power, or privilege hereunder a waiver of such
      right, power or privilege.

25.   ARTICLE HEADINGS.

      The Article headings herein are for purposes of convenient reference only
      and do not define or modify the terms written in the text of this
      Agreement.

                                       18
<PAGE>

26.   NO AGENCY RELATIONSHIP.

      The relationship between the Parties is that of independent contractor and
      contractee. Neither Party is an agent of the other regarding the exercise
      of any rights hereunder, and neither has any right or authority to assume
      or create any obligation or responsibility on behalf of the other.

27.   FORCE MAJEURE.

      Neither Party hereto is in default of any provision of this Agreement for
      any failure in performance resulting from acts or events beyond the
      reasonable control of such Party, such as Acts of God, acts of civil or
      military authority, civil disturbance, war, strikes, fires, power
      failures, natural catastrophes or other "force majeure" events.

28.   GOVERNING LAW.

      The law of the State of Michigan governs this Agreement and the
      relationships between the Parties in all respects (notwithstanding any
      provisions governing conflict of laws under such Michigan law to the
      contrary), except that, for patents, the law of the country that grants
      the patent determines questions affecting the construction and effect of
      such patent.

29.   JURISDICTION AND FORUM.

      The Parties hereby consent to the jurisdiction of the courts of the State
      of Michigan over any dispute concerning this Agreement or the relationship
      between the Parties. Should LICENSEE bring any claim, demand or other
      action against MICHIGAN, its Regents, fellows, officers, employees or
      agents, arising out of this Agreement or the relationship between the
      Parties, LICENSEE agrees to bring said action only in the Michigan Court
      of Claims.

30.   CONFIDENTIALITY.

30.1  Confidential Information that is disclosed in writing shall be marked with
      a legend indicating its confidential status (such as "Confidential" or
      "Proprietary"). Confidential Information that is disclosed orally or
      visually shall be documented in a written notice prepared by the
      Disclosing Party and delivered to the Receiving Party within thirty (30)
      days of the date of disclosure; such notice shall summarize the
      Confidential Information disclosed to the Receiving Party and reference
      the time and place of disclosure.

30.2  For a period of five (5) years after disclosure of any portion of
      Confidential Information, the Receiving Party shall (i) maintain such
      Confidential Information in confidence, except that the Receiving Party
      may disclose or permit the disclosure of any Confidential Information to
      its Regents, fellows, directors, officers, employees, consultants and
      advisors who are obligated to maintain the confidential nature of such
      Confidential Information and who need to know such Confidential
      Information for the purposes of this Agreement; (ii) use such Confidential
      Information solely for the purposes of this Agreement (and for
      administration of this Agreement and demonstration of compliance

                                       19
<PAGE>

      or lack thereof with the terms herein); (iii) allow its Regents, fellows,
      directors, officers, employees, consultants and advisors to reproduce the
      Confidential Information only to the extent necessary for the
      above-mentioned purposes, with all such reproductions being considered
      Confidential Information.

30.3  The obligations of the Receiving Party under Paragraph 30.2 shall not
      apply to the extent that the Receiving Party can demonstrate that certain
      Confidential Information (i) was in the public domain prior to the time of
      its disclosure under this Agreement; (ii) entered the public domain after
      the time of its disclosure under this Agreement through means other than
      an unauthorized disclosure resulting from an act or omission by the
      Receiving Party; (iii) was independently developed or discovered by the
      Receiving Party without use of the Confidential Information; (iv) is or
      was disclosed to the Receiving Party at any time, whether prior to or
      after the time of its disclosure under this Agreement, by a third party
      having no fiduciary relationship with the Disclosing Party and having no
      obligation of confidentiality with respect to such Confidential
      Information; or (v) is required to be disclosed to comply with applicable
      laws or regulations (including Michigan Freedom of Information Act
      requirements), or with a court or administrative order, provided that the
      Disclosing Party provides reasonable prior written notice of such
      disclosure to the extent possible.

30.4  The Receiving Party acknowledges that the Disclosing Party (or any third
      party entrusting its own information to the Disclosing Party) claims
      ownership of its Confidential Information in the possession of the
      Receiving Party. Upon the expiration or termination of this Agreement, and
      at the request of the Disclosing Party, the Receiving Party shall return
      to the Disclosing Party all originals, copies, and summaries of documents,
      materials, and other tangible manifestations of Confidential Information
      in the possession or control of the Receiving Party, except that the
      Receiving Party may retain one copy of the Confidential Information in the
      possession of its legal counsel solely for the purposes of monitoring all
      of its and the other Party's obligations under this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement in duplicate
originals by their duly authorized officers or representatives.

                                         FOR THE REGENTS OF THE UNIVERSITY OF
FOR REPROGENESIS, INC.                   MICHIGAN

By   /s/                                 By   /s/
  -----------------------------------      ------------------------------------
    (authorized representative)              (authorized representative)

Typed Name____________________________   Typed Name____________________________

Title_________________________________   Title_________________________________

Date__________________________________   Date__________________________________

                                       20
<PAGE>

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

                                   APPENDIX A

                   Licensed Patents Filed as of Effective Date

1.    U.S. Provisional Patent Application Serial No. [**], filed [**], entitled
      [**], David Mooney, Letrese Harris and Lonnie Shea, named inventors, and
      assigned to the Regents of the University of Michigan.

2.    Patent Cooperation Treaty Application Serial No. [**], filed [**],
      designating all PCT member countries including the United States, entitled
      [**], David Mooney and Jon Rowley, named inventors, the Regents of the
      University of Michigan, applicant.

                                       21
<PAGE>

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

                         AMENDMENT TO LICENSE AGREEMENT

THIS AMENDMENT, effective as of the 1st day of August, 1999 (the EFFECTIVE
DATE), between Reprogenesis, Inc., a corporation incorporated in the State of
Texas, with offices located at 10 Sylvan Drive, Suite 27, St. Simons Island,
Georgia 31522 ("LICENSEE") and the Regents of the University of Michigan, a
constitutional corporation of the State of Michigan, with offices located at
3003 South State, Room 2071, Ann Arbor, Michigan 48109-1280 ("MICHIGAN").
LICENSEE and MICHIGAN agree as follows:

1.    BACKGROUND

      1.1   MICHIGAN and LICENSEE entered into a LICENSE AGREEMENT dated
            November 30, 1997 covering certain TECHNOLOGY and LICENSED PATENTS
            as therein defined.

      1.2   MICHIGAN and LICENSEE entered into a ROUNDTABLE RESEARCH AGREEMENT
            dated October 1, 1997. Pursuant to Article 8.1 therein, LICENSEE
            timely exercised its option to negotiate for an exclusive,
            royalty-bearing license to certain rights in University Intellectual
            Property as defined in the ROUNDTABLE RESEARCH AGREEMENT.

      1.3   MICHIGAN has developed ADDITIONAL TECHNOLOGY comprising methods and
            means for delivering DNA from certain structural matrices developed
            by MICHIGAN's staff members Drs. D. Mooney, L. Shea and J. Bonadio,
            as described in Michigan's Technology Management Office File #[**]
            entitled [**] (hereinafter defined as "ADDITIONAL TECHNOLOGY").
            MICHIGAN acknowledges that ADDITIONAL TECHNOLOGY is within the
            definition of University Intellectual Property. The ADDITIONAL
            TECHNOLOGY is now the subject of an additional United States patent
            application serial number [**] filed on [**] and a counterpart
            Patent Cooperation Treaty application filed on even date
            (hereinafter these and all other patent applications and patents
            which cover an invention included in the ADDITIONAL TECHNOLOGY are
            defined as "ADDITIONAL LICENSED PATENTS").

      1.4   LICENSEE desires to obtain, and MICHIGAN, consistent with its
            mission of education and research, desires to grant, a license to
            the ADDITIONAL TECHNOLOGY and ADDITIONAL LICENSED PATENTS pursuant
            to the aforementioned LICENSE AGREEMENT. To this end, and for the
            benefit of both parties, MICHIGAN and LICENSEE agree to amend the
            LICENSE AGREEMENT.

2.    AMENDMENT

      The term TECHNOLOGY includes the ADDITIONAL TECHNOLOGY, and the term
      LICENSED PATENTS includes the ADDITIONAL LICENSED PATENTS. Solely with
      respect to ADDITIONAL TECHNOLOGY and ADDITIONAL LICENSED PATENTS,
      MICHIGAN's covenant under Paragraph 3.1 (LICENSE AGREEMENT) is limited as
      follows:
<PAGE>

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

      LICENSEE acknowledges, and agrees that all sublicenses of LICENSEE to
      Affiliates and Sublicensees must include an acknowledgement by such
      Affiliate or Sublicensee; that the non-infringing practice of ADDITIONAL
      TECHNOLOGY and ADDITIONAL LICENSED PATENTS may require a license to
      certain background rights of MICHIGAN licensed by MICHIGAN to [**].

3.    ENTIRE AGREEMENT

      The terms and conditions of the LICENSE AGREEMENT shall remain in full
      force and effect, except as amended herein.

IN WITNESS WHEREOF, the PARTIES hereto have executed this Amendment in duplicate
originals by their duly authorized officers or representatives.

FOR REPROGENESIS, INC.
                                         FOR THE REGENTS OF THE UNIVERSITY
                                         OF MICHIGAN

By:  /s/ Daniel R. Omstead               By:  /s/ Michael A. Kope
    ---------------------------               -------------------------------
    (authorized representative)               (authorized representative)
Typed Name: Daniel R. Omstead            Typed Name: Michael A. Kope
Title:  President                        Title:  Assistant to the Director
Date: ________________________           Date:  Aug. 11, 1999

                                       23<PAGE>

                                                                   Exhibit 10.33

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

                          MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                                   AMENDED AND RESTATED

                                    LICENSE AGREEMENT

                                       (EXCLUSIVE)

                                                              Date: July 1, 1996
<PAGE>

                                    TABLE OF CONTENTS

PREAMBLE                                                                  PAGE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

APPENDIX A
APPENDIX B
<PAGE>

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

                                   WITNESSETH

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

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

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

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

                                      -1-
<PAGE>

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

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

                            ARTICLE 1 - DEFINITIONS

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

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

                                      -2-
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voting stock of Reprogenesis, Inc., and an organization, the majority ownership
of which is directly or indirectly common to the ownership of Reprogenesis, Inc.

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

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

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

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

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

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

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

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

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

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

                                      -3-
<PAGE>

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

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

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

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

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

          (c) outbound transportation prepaid or allowed;

          (d) insurance;

          (e) amounts allowed or credited on returns; and

          (f) bad debts.

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

                                      -4-
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

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

      1.8 "FIELD OF USE" shall mean all applications in the [**] and [**]
fields, including repair, growth, replacement, augmentation and regeneration of
[**], [**] or [**] of the [**] and [**] or the creation, restoration,
augmentation, limitation or elimination of [**] of said [**], including
integrally associated [**] ([**] or [**]) such as [**], [**], [**], [**], and
[**] and [**] components, where the [**] includes the [**].

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

                               ARTICLE 2 - GRANT

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

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

                                      -5-
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

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

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

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

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

                                      -6-
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

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

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

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

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

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

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

                                      -7-
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

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

                           ARTICLE 3 - DUE DILIGENCE

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

      3.2 In addition:

                                      -8-
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                Exchange Commission. Asterisks denote omissions.

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

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

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

                                      -9-
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

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

                             ARTICLE 4 - ROYALTIES

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

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

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

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

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

              (i)     [**] Percent ([**]%) if only the PATENT RIGHTS are
                      sublicensed; or

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

                      but in no event shall royalties be less than [**] percent
                      ([**]%) of the NET SALES of the LICENSED PRODUCTS or
                      LICENSED SERVICES sold by sublicensee;

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

          (d) (i)     Except as set forth in Paragraph 4.1(d)(iii) hereof,
                      M.I.T. shall be [**] regarding (A) the [**] by LICENSEE of
                      [**] of [**] of its [**]; (B) the [**] of any [**],[**] of
                      [**] or other [**] of LICENSEE [**] or [**] for, or
                      carrying or accompanied by [**],[**] or [**] to, any [**]
                      of any [**] of its [**]; or (C) the [**] of any [**] of
                      [**] to or [**], or any [**] or [**] for the [**] of, any
                      of the foregoing [**] (the [**] set forth in (A), (B) and
                      (C) herein referred to as the "[**]").

              (ii)    Prior to any [**] described in Paragraph 4.1(d)(i) hereof,
                      LICENSEE shall give M.I.T. at least 30 days' notice, and
                      M.I.T. shall have the right by notifying LICENSEE within
                      15 days after receipt of the notice regarding the
                      [**],[**] or [**], to [**], on the [**] as those of the
                      [**], a [**] of such [**] equal to M.I.T.'s [**] of [**]
                      of LICENSEE on a record date not more than 30 days prior
                      to such [**],[**] or [**]. The price or prices for such
                      [**] shall not be less favorable to M.I.T. than the price
                      or prices at which such [**] are proposed to be [**] to
                      others, without deduction of the expenses of, and
                      compensation for, the [**],[**] of such [**] by [**] or
                      [**] as may be paid by LICENSEE.

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

                                      -11-
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

              (iv)    M.I.T. may transfer [**] Percent ([**]%) of its [**]
                      to purchase Securities as provided herein to Children's
                      Hospital.

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

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

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

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

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

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

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

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                Exchange Commission. Asterisks denote omissions.

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

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

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

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                        ARTICLE 5 - REPORTS AND RECORDS

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

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

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

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

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

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

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                Exchange Commission. Asterisks denote omissions.

          (e) total royalties due; and

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

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

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

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

                         ARTICLE 6 - PATENT PROSECUTION

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

                                      -15-
<PAGE>

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

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

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

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

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

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

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

                                      -16-
<PAGE>

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

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

                            ARTICLE 7 - INFRINGEMENT

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

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

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

                                      -17-
<PAGE>

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

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

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

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

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

                                      -18-
<PAGE>

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

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

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

                ARTICLE 8 - PRODUCT LIABILITY AND REPRESENTATION

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

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

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

                                      -19-
<PAGE>

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

      8.2 Insurance

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

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

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

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

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

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

                                      -20-
<PAGE>

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

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

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

                                      -21-
<PAGE>

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

                          ARTICLE 9 - EXPORT CONTROLS

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

                         ARTICLE 10 - NON-USE OF NAMES

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

                                      -22-
<PAGE>

                            ARTICLE 11 - ASSIGNMENT

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

                        ARTICLE 12 - DISPUTE RESOLUTION

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

                                      -23-
<PAGE>

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

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

                            ARTICLE 13 - TERMINATION

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

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

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

                                      -24-
<PAGE>

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

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

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

                         ARTICLE 14 - PAYMENTS, NOTICES
                            AND OTHER COMMUNICATIONS

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

In the case of M.I.T.:

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

                                      -25-
<PAGE>

In the case of LICENSEE:

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

                     ARTICLE 15 - MISCELLANEOUS PROVISIONS

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

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

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

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

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

                                      -26-
<PAGE>

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

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

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

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

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

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

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

                                      -27-
<PAGE>

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

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

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

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

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

                                      -28-
<PAGE>
      IN WITNESS WHEREOF, the parties have duly executed this Amended and
Restated Agreement the day and year set forth below.

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

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

Date: July 1, 1996

REPROGENESIS, INC.

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

Date: July 1, 1996

                                      -29-
<PAGE>

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

                                         APPENDIX

UNITED STATES PATENT RIGHTS

M.I.T. Case [**]
"[**]"
By Joachim Kohn and Robert S. Langer
U.S. Patent[**]         Issued [**]

M.I.T. Case [**]
"[**]"
By Joachim Kohn and Robert S. Langer
U.S.  Patent [**]       Issued [**]

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

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

M.I.T. Case [**]
"[**]"
By Robert S. Langer, Charles A. Vacanti and Joseph P. Vacanti
U.S. Patent [**]        Issued [**]
U.S.S.N. [**]           Filed [**]
PCT S.N. PCT IUS[**]    Filed [**]

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

                                      -30-
<PAGE>

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

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

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

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

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

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

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

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

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

                                      -31-
<PAGE>

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

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

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

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

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

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

                                      -32-
<PAGE>

                                   APPENDIX B

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

Canada
Great Britain
France
Germany
Italy

                                      -33-
<PAGE>

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

                  FIRST AMENDMENT TO RESTATED LICENSE AGREEMENT

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

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

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

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

      Agreed to for:

MASSACHUSETTS INSTITUTE OF TECHNOLOGY       REPROGENESIS, INC.

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

Name: Lita Nelston                          Name: Daniel R. Omstead

Title: Director Technology                  Title: President

Licensing Office

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

                                       -1-
<PAGE>

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

                                SECOND AMENDMENT
                  TO THE AMENDED AND RESTATED LICENSE AGREEMENT

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

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

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

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

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

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

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

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

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

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

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

                                       -1-
<PAGE>

      Agreed to for:

MASSACHUSETTS INSTITUTE OF
TECHNOLOGY                               REPROGENESIS, INC.

By: /s/_______________________________   By: /s/______________________________

Name: ________________________________   Name:________________________________

Title:________________________________   Title:_______________________________

Date: ________________________________   Date:________________________________

                                      -2-

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