Document:

exv4w1

 

EXHIBIT 4.1

As Amended through

November 9, 2004

AMENDED AND RESTATED UROLOGIX, INC.

1991 STOCK OPTION PLAN

 

 

	 	 	 	 	 	 	 	 	 
	SECTION	 	CONTENTS	 	PAGE
	 	1.

	 	 	General Purpose of Plan; Definitions
	 	 	1	 
	 	2.

	 	 	Administration
	 	 	3	 
	 	3.

	 	 	Stock Subject to Plan
	 	 	5	 
	 	4.

	 	 	Eligibility
	 	 	5	 
	 	5.

	 	 	Stock Options
	 	 	6	 
	 	6.

	 	 	Stock Appreciation Rights
	 	 	11	 
	 	7.

	 	 	Restricted Stock
	 	 	12	 
	 	8.

	 	 	Deferred Stock Awards
	 	 	14	 
	 	9.

	 	 	Transfer, Leave of Absence, etc.
	 	 	16	 
	 	10.

	 	 	Amendments and Termination
	 	 	16	 
	 	11.

	 	 	Unfunded Status of Plan
	 	 	17	 
	 	12.

	 	 	General Provisions
	 	 	16	 

 

 

AMENDED AND RESTATED UROLOGIX, INC.

1991 STOCK OPTION PLAN

     SECTION 1. General Purpose of Plan; Definitions.

     The name of this plan is the Amended and Restated Urologix, Inc. 1991 Stock Option Plan (the
“Plan”). The purpose of the Plan is to enable Urologix, Inc. (the “Company”) to retain and attract
executives and other key employees, directors and consultants who contribute to the Company’s
success by their ability, ingenuity and industry, and to enable such individuals to participate in
the long-term success and growth of the Company by giving them a proprietary interest in the
Company.

     For purposes of the Plan, the following terms shall be defined as set forth below:

	 	a.  	“Board” means the Board of Directors of the Company as it may be comprised from
time to time.
	 
	 	b.  	“Cause” means a felony conviction of a participant or the failure of a
participant to contest prosecution for a felony, willful misconduct, dishonesty or
intentional violation of a statute, rule or regulation, any of which, in the judgment of
the Company, is harmful to the business or reputation of the Company.
	 
	 	c.  	“Code” means the Internal Revenue Code of 1986, as amended from time to time,
or any successor statute.
	 
	 	d.  	“Committee” means the Committee referred to in Section 2 of the Plan.
	 
	 	e.  	“Consultant” means any person, including an advisor, engaged by the Company or
a Parent Corporation or Subsidiary of the Company to render services and who is compensated
for such services and who is not an employee of the Company or any Parent Corporation or
Subsidiary of the Company. A Non-Employee Director may serve as a Consultant.
	 
	 	f.  	“Company” means Urologix, Inc., a corporation organized under the laws of the
State of Minnesota (or any successor corporation).
	 
	 	g.  	“Deferred Stock” means an award made pursuant to Section 8 below of the right
to receive stock at the end of a specified deferral period.
	 
	 	h.  	“Disability” means permanent and total disability as determined by the
Committee.
	 
	 	i.  	“Early Retirement” means retirement, with consent of the Committee at the time
of retirement, from active employment with the Company and any Subsidiary or Parent
Corporation of the Company.

 

 

	 	j.  	“Fair Market Value” of Stock on any given date shall be determined by the
Committee as follows: (a) if the Stock is listed for trading on one of more national
securities exchanges, or is traded on the Nasdaq Stock Market, the last reported sales
price on the principal such exchange or the Nasdaq Stock Market on the date in question, or
if such Stock shall not have been traded on such principal exchange on such date, the last
reported sales price on such principal exchange or the Nasdaq Stock Market on the first day
prior thereto on which such Stock was so traded; or (b) if the Stock is not listed for
trading on a national securities exchange or the Nasdaq Stock Market, but is traded in the
over-the-counter market, including the Nasdaq Small Cap Market, the closing bid price for
such Stock on the date in question, or if there is no such bid price for such Stock on such
date, the closing bid price on the first day prior thereto on which such price existed; or
(c) if neither (a) or (b) is applicable, by any means fair and reasonable by the Committee,
which determination shall be final and binding on all parties.
	 
	 	k.  	“Incentive Stock Option” means any Stock Option intended to be and designated
as an “Incentive Stock Option” within the meaning of Section 422 of the Code.
	 
	 	l.  	“Non-Employee Director” means a “Non-Employee Director” within the meaning of
Rule 16b-3(b)(3) under the Securities Exchange Act of 1934.
	 
	 	m.  	“Non-Qualified Stock Option” means any Stock Option that is not an Incentive
Stock Option, and is intended to be and is designated as a “Non-Qualified Stock Option.”
	 
	 	n.  	“Normal Retirement” means retirement from active employment with the Company
and any Subsidiary or Parent Corporation of the Company on or after age 65.
	 
	 	o.	“Outside Director” means a member of the Board of Directors who: (a) is not a
current employee of the Company or any member of an affiliated group which includes the
Company; (b) is not a former employee of the Company who receives compensation for prior
services (other than benefits under a tax-qualified retirement plan) during the taxable
year; (c) has not been an officer of the Company; and (d) does not receive remuneration
from the Company, either directly or indirectly, in any capacity other than as a director,
except as otherwise permitted under Code Section 162(m) and regulations thereunder. For
this purpose, remuneration includes any payment in exchange for goods or services. This
definition shall be further governed by the provisions of Code Section 162(m) and
regulations promulgated thereunder.
	 
	 	p.  	“Parent Corporation” means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of the corporations (other
than the Company) owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain.
	 
	 	q.  	“Restricted Stock” means an award of shares of Stock that are subject to
restrictions under Section 7 below.

2

 

	 	r.  	“Retirement” means Normal Retirement or Early Retirement.
	 
	 	s.  	“Stock” means the Common Stock of the Company.
	 
	 	t.  	“Stock Appreciation Right” means the right pursuant to an award granted under
Section 6 below to surrender to the Company all or a portion of a Stock Option in exchange
for an amount equal to the difference between (i) Fair Market Value, as of the date such
Stock Option or such portion thereof is surrendered, of the shares of Stock covered by such
Stock Option or such portion thereof, and (ii) the aggregate exercise price of such Stock
Option or such portion thereof.
	 
	 	u.  	“Stock Option” means any option to purchase shares of Stock granted pursuant to
Section 5 below.
	 
	 	v.  	“Subsidiary” means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if each of the corporations (other than
the last corporation in the unbroken chain) owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations in the
chain.

     SECTION 2. Administration.

     The Plan shall be administered by the Board of Directors or by a committee, consisting of not
less than two members of the Board of Directors, all of whom shall be Outside Directors and
Non-Employee Directors and who shall serve at the pleasure of the Board (the “Committee”). Any or
all of the functions of the Committee specified in the Plan may be exercised by the Board, unless
the Plan specifically states otherwise.

     The Committee shall have the power and authority to grant to eligible employees, members of
the Board of Directors or Consultants, pursuant to the terms of the Plan: (i) Stock Options, (ii)
Stock Appreciation Rights, (iii) Restricted Stock, or (iv) Deferred Stock awards.

     In particular, the Committee shall have the authority:

	 	(i)  	to select the officers and other key employees of the Company and its Subsidiaries and
other eligible persons to whom Stock Options, Stock Appreciation Rights, Restricted Stock
and Deferred Stock awards may from time to time be granted hereunder;
	 
	 	(ii)  	to determine whether and to what extent Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Restricted Stock and Deferred Stock awards, or a
combination of the foregoing, are to be granted hereunder;
	 
	 	(iii)  	to determine the number of shares to be covered by each such award granted hereunder;

3

 

	 	(iv)  	to determine the terms and conditions, not inconsistent with the terms of the Plan, of

any award granted hereunder (including, but not limited to, any restriction on any Stock
Option or other award and/or the shares of Stock relating thereto); provided,
however, that in the event of a merger or asset sale or other form of change of control,
the applicable provisions of Sections 5(c) and 7(c) of the Plan shall govern the
acceleration of the vesting of any Stock option or awards;
	 
	 	(v)  	to determine whether, to what extent and under what circumstances Stock and other
amounts payable with respect to an award under this Plan shall be deferred either
automatically or at the election of the participant.

     The Committee shall have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall, from time to time, deem advisable; to
interpret the terms and provisions of the Plan and any award issued under the Plan (and any
agreements relating thereto); and to otherwise supervise the administration of the Plan. The
Committee may delegate to executive officers of the Company the authority to exercise the powers
specified in (i), (ii), (iii), (iv) and (v) above with respect to persons who are not executive
officers of the Company.

     All decisions made by the Committee pursuant to the provisions of the Plan shall be final and
binding on all persons, including the Company and Plan participants.

     SECTION 3. Stock Subject to Plan.

     The total number of shares of Stock reserved and available for distribution under the Plan
shall be 4,450,9101. Such shares may consist, in whole or in part, of authorized and
unissued shares.

	1	History: This Plan originally reserved 970,912 shares
for issuance. The Board of Directors approved an increase from 970,912 shares
to 1,250,912 on January 19, 1994, and an increase from 1,250,912 shares to
1,601,820 shares on August 19, 1994. The shareholders approved the increase to
1,601,820 shares at a special meeting on December 21, 1994. The Board of
Directors approved an increase from 1,601,820 shares to 2,101,820 shares on
July 26, 1995, which was approved by the Shareholders at a special meeting on
November 27, 1995. The number of shares reserved under the Plan was again
increased from 2,101,820 to 3,101,820 by the Board of Directors on April 3,
1996 and such increase was approved by the Shareholders at a special meeting on
April 30, 1996. Simultaneously on April 30, 1996, the Company effected a
1-for-2 Reverse Stock Split, thereby converting the number of shares reserved
to 1,550,910 as of April 30, 1996. Following the Reverse Stock Split, the
Board of Directors increased the number of shares reserved to 1,950,910 on
September 17, 1997 and the increase was approved by the shareholders on
November 19, 1997. On November 17, 1998, the Board of Directors authorized an
increase in the number of shares reserved to 2,450,910, which increase was
approved by the shareholders on January 14, 1999. On September 12, 2000 the
Board of Directors authorized an increase in the number of shares reserved to
2, 950,910, which increase was approved by the shareholders on November 14,
2000. On September 11, 2001 the Board of Directors authorized an increase in
the number of shares reserved to 3,450,910, which increase was approved by the
shareholders on November 6, 2001. On July 19, 2004 the Board of Directors
authorized an increase in the number of shares reserved to 4,450,910, which
increase was approved by the shareholders on November 9, 2004.

4

 

     Subject to paragraph (b)(iv) of Section 6 below, if any shares that have been optioned cease
to be subject to Stock Options, or if any shares subject to any Restricted Stock or Deferred Stock
award granted hereunder are forfeited or such award otherwise terminates without a payment being
made to the participant, such shares shall again be available for distribution in connection with
future awards under the Plan.

     In the event of any merger, reorganization, consolidation, recapitalization, stock dividend,
other change in corporate structure affecting the Stock, or spin-off or other distribution of
assets to shareholders, such substitution or adjustment shall be made in the aggregate number of
shares reserved for issuance under the Plan, in the number and option price of shares subject to
outstanding options granted under the Plan, and in the number of shares subject to Restricted Stock
or Deferred Stock awards granted under the Plan as may be determined to be appropriate by the
Committee, in its sole discretion, provided that the number of shares subject to any award shall
always be a whole number. Such adjusted option price shall also be used to determine the amount
payable by the Company upon the exercise of any Stock Appreciation Right associated with any
Option.

     SECTION 4. Eligibility.

     Officers, other key employees of the Company and Subsidiaries, members of the Board of
Directors, and Consultants who are responsible for or contribute to the management, growth and
profitability of the business of the Company and its Subsidiaries are eligible to be granted Stock
Options, Stock Appreciation Rights, Restricted Stock or Deferred Stock awards under the Plan. The
optionees and participants under the Plan shall be selected from time to time by the Committee, in
its sole discretion, from among those eligible, and the Committee shall determine, in its sole
discretion, the number of shares covered by each award.

     Notwithstanding the foregoing, no person may, during any fiscal year of the Company, receive
grants of Stock Options and Stock Appreciation Rights under this Plan which, in the aggregate,
exceed 500,000 shares.

     SECTION 5. Stock Options.

     Any Stock Option granted under the Plan shall be in such form as the Committee may from time
to time approve.

     The Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and
(ii) Non-Qualified Stock Options. No Incentive Stock Options shall be granted under the Plan after
August 1, 2011.

     The Committee shall have the authority to grant any optionee Incentive Stock Options,
Non-Qualified Stock Options, or both types of options (in each case with or without Stock
Appreciation Rights). To the extent that any option does not qualify as an Incentive Stock Option,
it shall constitute a separate Non-Qualified Stock Option.

5

 

     Anything in the Plan to the contrary notwithstanding, no term of this Plan relating to
Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or
authority granted under the Plan be so exercised, so as to disqualify either the Plan or any
Incentive Stock Option under Section 422 of the Code. The preceding sentence shall not preclude
any modification or amendment to an outstanding Incentive Stock Option, whether or not such
modification or amendment results in disqualification of such Option as an Incentive Stock Option,
provided the optionee consents in writing to the modification or amendment.

     No changes that result from the restatement of this Plan shall effect any change in any
outstanding incentive stock option that would cause such option to be modified, extended or renewed
to the extent that such change will constitute the grant of a new option as specified in Section
424(h) of the Code.

     Options granted under the Plan shall be subject to the following terms and conditions and
shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as
the Committee shall deem desirable.

     (a) Option Price. The option price per share of Stock purchasable under a Stock
Option shall be determined by the Committee at the time of grant. In no event shall the option
price per share of Stock purchasable under an Incentive Stock Option be less than 100% of such Fair
Market Value. If an employee owns or is deemed to own (by reason of the attribution rules
applicable under Section 424(d) of the Code) more than 10% of the combined voting power of all
classes of stock of the Company or any Parent Corporation or Subsidiary and an Incentive Stock
Option is granted to such employee, the option price shall be no less than 110% of the Fair Market
Value of the Stock on the date the option is granted.

     (b) Option Term. The term of each Stock Option shall be fixed by the Committee, but
no Incentive Stock Option shall be exercisable more than ten years after the date the option is
granted. If an employee owns or is deemed to own (by reason of the attribution rules of Section
424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the
Company or any Parent Corporation or Subsidiary and an Incentive Stock Option is granted to such
employee, the term of such option shall be no more than five years from the date of grant.

     (c) Exercisability. Stock Options shall be exercisable at such time or times as
determined by the Committee at or after grant. If the Committee provides, in its discretion, that
any option is exercisable only in installments, the Committee may waive such installment exercise
provisions at any time. Notwithstanding anything contained in the Plan to the contrary, the
Committee may, in its discretion, extend or vary the term of any Stock Option or any installment
thereof, whether or not the optionee is then employed by the Company, if such action is deemed to
be in the best interests of the Company; provided, however, that in the event of a merger or sale
of assets, or of a Change of Control, the provisions of this section 5(c) shall govern vesting
acceleration.

	 	(i)  	In the event of a merger of the Company with or into another corporation, or the sale
of substantially all of the assets of the Company, each outstanding Option shall be assumed
or an equivalent option or right shall be substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that

6

 

	 	   	the successor corporation does not agree to assume the Option or to substitute an
equivalent option or right, the Committee shall, in lieu of such assumption or
substitution, provide for the Optionee to have the right to exercise the Option as to
all of the Optioned Stock, including shares as to which it would not otherwise be
exercisable. If the Committee makes an Option fully exercisable in lieu of assumption
or substitution in the event of a merger or sale of assets, the Committee shall notify
the Optionee that the Option shall be fully exercisable for a period of fifteen (15)
days from the date of such notice, and the Option will terminate upon the expiration of
such period. For the purposes of this paragraph, the Option shall be considered assumed
if, following the merger or sale of assets, the option or right confers the right to
purchase, for each Share of Optioned Stock subject to the Option immediately prior to
the merger or sale of assets, the consideration (whether stock, cash, or other
securities or property) received in the merger or sale of assets by holders of Common
Stock for each Share held on the effective date of the transaction (and if holders were
offered a choice of consideration, the type of consideration chose by the holders of a
majority of the outstanding Shares); provided, however, that if such consideration
received in the merger or sale of assets was not solely common stock of the successor
corporation or its Parent, the Committee may, with consent of the successor corporation
and the participant, provide for the consideration to be received upon the exercise of
the Option, for each Share of Optioned Stock subject to the Option, to be solely common
stock of the successor corporation or its Parent equal in Fair Market Value to the per
share consideration received by holders of Common Stock in the merger or sale of assets.
	 
	 	(ii)  	Upon a Change of Control, each outstanding Stock Option shall become exercisable in
full as to all of the shares covered thereby without regard to any installment exercise or
vesting provisions. In the event that at any time prior to August 13, 1999, a Change of
Control or other business combination of the Company occurs as to which the Company desires
that pooling accounting treatment be utilized, the Board may, in its sole discretion,
declare that the provisions of this Section 5(c)(ii), and the related provisions of all
then outstanding Stock Options shall be of no force and effect whatsoever and the treatment
of any Stock Options outstanding at that time shall then instead be governed solely by the
provisions of Section 5(c)(i). After August 13, 1999, the provisions of Section 5(c)(i)
shall be of no further force or effect. This Section 5(c)(ii) will apply to all Stock
Options which are outstanding on August 13, 1997, as well as all Stock Options which are
granted on or after that date. For purposes of this Section 5(c), the term “Change of
Control” means any of the following:

	 	(A)  	any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) becomes a “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
50% or more of the combined voting power of the Company’s then outstanding
securities and is required to file a Schedule 13D under the Exchange Act; or

7

 

	 	(B)  	the Incumbent Directors cease for any reason to constitute at least a
majority of the Board of Directors. The term, “Incumbent Directors,” shall mean
those individuals who are members of the Board of Directors on August 13, 1997 and
any individual who subsequently becomes a member of the Board of Directors whose
election or nomination for election by the Company’s shareholders was approved by a
vote of at least a majority of the then Incumbent Directors; or
	 
	 	(C)  	all or substantially all of the assets of the Company are sold,
leased, exchanged or otherwise transferred and immediately thereafter, there is
no substantial continuity of ownership with respect to the Company and the
entity to which such assets have been transferred.

	 	(iii)  	The grant of an option pursuant to the Plan shall not limit in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure or to merge, exchange or consolidate or to dissolve,
liquidate, sell or transfer all or any part of its business or assets.

     (d) Method of Exercise. Stock Options may be exercised in whole or in part at any
time during the option period by giving written notice of exercise to the Company specifying the
number of shares to be purchased. Such notice shall be accompanied by payment in full of the
purchase price, either by check, or by any other form of legal consideration deemed sufficient by
the Committee and consistent with the Plan’s purpose and applicable law, including promissory notes
or a properly executed exercise notice together with irrevocable instructions to a broker
acceptable to the Company to promptly deliver to the Company the amount of sale or loan proceeds to
pay the exercise price. As determined by the Committee at the time of grant or exercise, in its
sole discretion, payment in full or in part may also be made in the form of Stock already owned by
the optionee (which in the case of Stock acquired upon exercise of an option have been owned for
more than six months on the date of surrender) or, in the case of the exercise of a Non-Qualified
Stock Option, by delivery of Restricted Stock or Deferred Stock subject to an award hereunder
(based, in each case, on the Fair Market Value of the Stock on the date the option is exercised, as
determined by the Committee), provided, however, that, in the case of an Incentive Stock Option,
the right to make a payment in the form of already owned shares may be authorized only at the time
the option is granted, and provided further that in the event payment is made in the form of shares
of Restricted Stock or a Deferred Stock award, the optionee will receive a portion of the option
shares in the form of, and in an amount equal to, the Restricted Stock or Deferred Stock award
tendered as payment by the optionee. If the terms of an option so permit, an optionee may elect to
pay all or part of the option exercise price by having the Company withhold from the shares of
Stock that would otherwise be issued upon exercise that number of shares of Stock having a Fair
Market Value equal to the aggregate option exercise price for the shares with respect to which such
election is made. No shares of Stock shall be issued until full payment therefor has been made.
An optionee shall generally have the rights to dividends and other rights of a shareholder with
respect to shares subject to the option when the optionee has given written notice of exercise, has
paid in full for such shares, and, if requested, has given the representation described in
paragraph (a) of Section 12.

8

 

     (e) Non-transferability of Options. No Stock Option shall be transferable by the
optionee otherwise than by will or by the laws of descent and distribution, and all Stock Options
shall be exercisable, during the optionee’s lifetime, only by the optionee.

     (f) Termination by Death. If an optionee’s employment by the Company and any
Subsidiary or Parent Corporation terminates by reason of death, the Stock Option may thereafter be
immediately exercised, to the extent then exercisable, by the legal representative of the estate or
by the legatee of the optionee under the will of the optionee, for a period of twelve months from
the date of such death or until the expiration of the stated term of the option, whichever period
is shorter.

     (g) Termination by Reason of Disability. If an optionee’s employment by the Company
and any Subsidiary or Parent Corporation terminates by reason of Disability, any Stock Option held
by such optionee may thereafter be exercised, to the extent it was exercisable at the time of
termination due to Disability, but may not be exercised after twelve months from the date of such
termination of employment or the expiration of the stated term of the
option, whichever period is the shorter. In the event of termination of employment by reason of Disability, if an Incentive
Stock Option is exercised after the expiration of the exercise periods that apply for purposes of
Section 422 of the Code, the option will thereafter be treated as a Non-Qualified Stock Option.

     (h) Termination by Reason of Retirement. If an optionee’s employment by the Company
and any Subsidiary or Parent Corporation terminates by reason of Retirement and the terms of the
Stock Option so provide, any Stock Option held by such optionee may thereafter be exercised to the
extent it was exercisable at the time of such Retirement, but may not be exercised after twelve
months from the date of such termination of employment or the expiration of the stated term of the
option, whichever period is the shorter. In the event of termination of employment by reason of
Retirement, if an Incentive Stock Option is exercised after the expiration of the exercise periods
that apply for purposes of Section 422 of the Code, the option will thereafter be treated as a
Non-Qualified Stock Option.

     (i) Other Termination. In the event an Optionee’s continuous status as an Employee or
Consultant terminates (other than upon the Optionee’s death or Disability), the Optionee may
exercise his or her Option, but only within such period of time as is determined by the Committee,
and only to the extent that the Optionee was entitled to exercise it at the date of termination
(but in no event later than the expiration of the term of such Option as set forth in the Notice of
Grant). In the case of an Incentive Stock Option, the Committee shall determine such period of
time (in no event to exceed ninety (90) days from the date of termination) when the Option is
granted.

     (j) Annual Limit on Incentive Stock Options. The aggregate Fair Market Value
(determined as of the time the Stock Option is granted) of the Common Stock with respect to which
an Incentive Stock Option under this Plan or any other plan of the Company and any Subsidiary or
Parent Corporation is exercisable for the first time by an optionee during any calendar year shall
not exceed $100,000.

9

 

     (k) Directors Who Are Not Employees. Each year on the date of the annual meeting of
shareholders, each person who is not an employee of the Company, any Parent Corporation or
Subsidiary and is serving as a member of the Board of Directors of the Company immediately
following such annual meeting, will automatically, without any Committee action, be granted a
Non-Qualified Stock Option to purchase 10,000 shares of the Company’s Common Stock at an option
price per share equal to 100% of the Fair Market Value of a share of Stock on such date. All such
Options shall be designated as Non-Qualified Stock Options and shall be subject to the same terms
and provisions as are then in effect with respect to the grant of Non-Qualified Stock Options to
employees of the Company, except that (i) the term of each such Option shall be equal to ten years;
and (ii) the Option shall immediately become exercisable in full at the time of grant. Upon
termination of a person’s service as a Director of the Company, such Director will be allowed to
exercise such Option for a period of one year after the date on which such person ceased to be a
Director, after which date the Option, if not exercised, shall terminate. The Committee may elect
to grant a similar Non-Qualified Stock Option, consisting of such number of shares as the Committee
deems appropriate under the circumstances, to any person who is elected to the Board of Directors
between annual meetings of shareholders. Subject to the foregoing, all provisions of this Plan not
inconsistent with the foregoing shall apply to Options granted pursuant to this Section 5(k).

     SECTION 6. Stock Appreciation Rights.

     (a) Grant and Exercise. Stock Appreciation Rights may be granted in conjunction with
all or part of any Stock Option granted under the Plan. In the case of a Non-Qualified Stock
Option, such rights may be granted either at or after the time of the grant of such Option. In the
case of an Incentive Stock Option, such rights may be granted only at the time of the grant of the
option.

     A Stock Appreciation Right or applicable portion thereof granted with respect to a given Stock
Option shall terminate and no longer be exercisable upon the termination or exercise of the related
Stock Option, except that a Stock Appreciation Right granted with respect to less than the full
number of shares covered by a related stock Option shall not be reduced until the exercise or
termination of the related Stock Option exceeds the number of shares not covered by the Stock
Appreciation Right.

     A Stock Appreciation Right may be exercised by an optionee, in accordance with paragraph (b)
of this Section 6, by surrendering the applicable portion of the related Stock Option. Upon such
exercise and surrender, the optionee shall be entitled to receive an amount determined in the
manner prescribed in paragraph (b) of this Section 6. Stock Options which have been so
surrendered, in whole or in part, shall no longer be exercisable to the extent the related Stock
Appreciation Rights have been exercised.

     (b) Terms and Conditions. Stock Appreciation Rights shall be subject to such terms
and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time
to time by the Committee, including the following:

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     (i) Stock Appreciation Rights shall be exercisable only at such time or times and to the
extent that the Stock Options to which they relate shall be exercisable in accordance with the
provisions of Section 5 and this Section 6 of the Plan.

     (ii) Upon the exercise of a Stock Appreciation Right, an optionee shall be entitled to
receive up to, but not more than, an amount in cash or shares of Stock equal in value to the
excess of the Fair Market Value of one share of Stock over the option price per share specified
in the related option multiplied by the number of shares in respect of which the Stock
Appreciation Right shall have been exercised, with the Committee having the right to determine
the form of payment.

     (iii) Stock Appreciation Rights shall be transferable only when and to the extent that the underlying Stock Option would be transferable under Section 5 of the Plan.

     (iv) Upon the exercise of a Stock Appreciation Right, the Stock Option or part thereof to
which such Stock Appreciation Right is related shall be deemed to have been exercised for the
purpose of the limitation set forth in Section 3 of the Plan on the number of shares of Stock to
be issued under the Plan, but only to the extent of the number of shares issued or issuable
under the Stock Appreciation Right at the time of exercise based on the value of the Stock
Appreciation Right at such time.

     (v) A Stock Appreciation Right granted in connection with an Incentive Stock Option may be
exercised only if and when the market price of the Stock subject to the Incentive Stock Option
exceeds the exercise price of such Option.

     SECTION 7. Restricted Stock.

     (a) Administration. Shares of Restricted Stock may be issued either alone or in
addition to other awards granted under the Plan. The Committee shall determine the officers, key
employees and Consultants of the Company and Subsidiaries to whom, and the time or times at which,
grants of Restricted Stock will be made, the number of shares to be awarded, the time or times
within which such awards may be subject to forfeiture, and all other conditions of the awards. The
Committee may also condition the grant of Restricted Stock upon the attainment of specified
performance goals. The provisions of Restricted Stock awards need not be the same with respect to
each recipient.

     (b) Awards and Certificates. The prospective recipient of an award of shares of
Restricted Stock shall not have any rights with respect to such award, unless and until such
recipient has executed an agreement evidencing the award and has delivered a fully executed copy
thereof to the Company, and has otherwise complied with the then applicable terms and conditions.

     (i) Each participant shall be issued a stock certificate in respect of shares of Restricted
Stock awarded under the Plan. Such certificate shall be registered in the name of the
participant, and shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such award, substantially in the following form:

11

 

“The transferability of this certificate and the shares of stock represented
hereby are subject to the terms and conditions (including forfeiture) of the
Amended and Restated Urologix, Inc. 1991 Stock Plan and an Agreement entered
into between the registered owner and Urologix, Inc. Copies of such Plan
and Agreement are on file in the offices of Urologix, Inc., 14405 21st
Avenue North, Minneapolis, MN 55447.”

     (ii) The Committee shall require that the stock certificates evidencing such shares be held
in custody by the Company until the restrictions thereon shall have lapsed, and that, as a
condition of any Restricted Stock award, the participant shall have delivered a stock power,
endorsed in blank, relating to the Stock covered by such award.

     (c) Restrictions and Conditions. The shares of Restricted Stock awarded pursuant to
the Plan shall be subject to the following restrictions and conditions:

     (i) Subject to the provisions of this Plan and the award agreement, during a period set by
the Committee commencing with the date of such award (the “Restriction Period”), the participant
shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock awarded
under the Plan. In no event shall the Restriction Period be less than one (1) year. Within
these limits, the Committee may provide for the lapse of such restrictions in installments where
deemed appropriate.

     (ii) Except as provided in paragraph (c)(i) of this Section 7, the participant shall have,
with respect to the shares of Restricted Stock, all of the rights of a shareholder of the
Company, including the right to vote the shares and the right to receive any cash dividends.
The Committee, in its sole discretion, may permit or require the payment of cash dividends to be
deferred and, if the Committee so determines, reinvested in additional shares of Restricted
Stock (to the extent shares are available under Section 3 and subject to paragraph (f) of
Section 12). Certificates for shares of unrestricted Stock shall be delivered to the grantee
promptly after, and only after, the period of forfeiture shall have expired without forfeiture
in respect of such shares of Restricted Stock.

     (iii) Subject to the provisions of the award agreement and paragraph (c)(iv) of this
Section 7, upon termination of employment for any reason during the Restriction Period, all
shares still subject to restriction shall be forfeited by the participant.

     (iv) In the event of special hardship circumstances of a participant whose employment is
terminated (other than for Cause), including death, Disability or Retirement, or in the event of
an unforeseeable emergency of a participant still in service, the Committee may, in its sole
discretion, when it finds that a waiver would be in the best interest of the Company, waive in
whole or in part any or all remaining restrictions with respect to such participant’s shares of
Restricted Stock.

12

 

     (v) Notwithstanding the foregoing, in the event of the sale by the Company of substantially
all of its assets and the consequent discontinuance of its business, or in the event
of a merger, exchange, consolidation or liquidation of the Company, the Board shall, in its
sole discretion, in connection with the Board’s adoption of the plan for sale, merger, exchange,
consolidation or liquidation, provide for one or more of the following with respect to
Restricted Stock Awards that are, on such date, still subject to a Restriction Period: (i) the
removal of the restrictions on any or all outstanding Restricted Stock Awards; (ii) the complete
termination of this Plan and forfeiture of outstanding Restricted Stock Awards prior to a date
specified by the Board; and (iii) the continuance of the Plan with respect to the Restricted
Stock Award which were outstanding as of the date of adoption by the Board of such plan for
sale, merger, exchange, consolidation or liquidation and provide to participants holding
Restricted Stock Awards the right to an equivalent number of restricted shares of stock of the
corporation succeeding the Company by reason of such sale, merger, exchange, consolidation or
liquidation. The grant of a Restricted Stock Award pursuant to the Plan shall not limit in any
way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge, exchange or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its business or assets.

     SECTION 8. Deferred Stock Awards.

     (a) Administration. Deferred Stock may be awarded either alone or in addition to
other awards granted under the Plan. The Committee shall determine the officers, key employees,
members of the Board of Directors and Consultants of the Company and Subsidiaries to whom and the
time or times at which Deferred Stock shall be awarded, the number of Shares of Deferred Stock to
be awarded to any participant or group of participants, the duration of the period (the “Deferral
Period”) during which, and the conditions under which, receipt of the Stock will be deferred, and
the terms and conditions of the award in addition to those contained in paragraph (b) of this
Section 8. The Committee may also condition the grant of Deferred Stock upon the attainment of
specified performance goals. The provisions of Deferred Stock awards need not be the same with
respect to each recipient.

     (b) Terms and Conditions.

     (i) Subject to the provisions of this Plan and the award agreement, Deferred Stock awards
may not be sold, assigned, transferred, pledged or otherwise encumbered during the Deferral
Period. In no event shall the Deferral Period be less than one (1) year. At the expiration of
the Deferral Period (or Elective Deferral Period, where applicable), share certificates shall be
delivered to the participant, or his legal representative, in a number equal to the shares
covered by the Deferred Stock award.

     (ii) Amounts equal to any dividends declared during the Deferral Period with respect to the
number of shares covered by a Deferred Stock award will be paid to the participant currently or
deferred and deemed to be reinvested in additional Deferred Stock or otherwise reinvested, all
as determined at the time of the award by the Committee, in its sole discretion.

13

 

     (iii) Subject to the provisions of the award agreement and paragraph (b)(iv) of this
Section 8, upon termination of employment for any reason during the Deferral Period for a given
award, the Deferred Stock in question shall be forfeited by the participant.

     (iv) In the event of special hardship circumstances of a participant whose employment is
terminated (other than for Cause) including death, Disability or Retirement, or in the event of
an unforeseeable emergency of a participant still in service, the Committee may, in its sole
discretion, when it finds that a waiver would be in the best interest of the Company, waive in
whole or in part any or all of the remaining deferral limitations imposed hereunder with respect
to any or all of the participant’s Deferred Stock.

     (v) A participant may elect to further defer receipt of the award for a specified period or
until a specified event (the “Elective Deferral Period”), subject in each case to the
Committee’s approval and to such terms as are determined by the Committee, all in its sole
discretion. Subject to any exceptions adopted by the Committee, such election must generally be
made prior to completion of one half of the Deferral Period for a Deferred Stock award (or for
an installment of such an award).

     (vi) Each award shall be confirmed by, and subject to the terms of, a Deferred Stock
agreement executed by the Company and the participant.

     SECTION 9. Transfer, Leave of Absence, etc.

     For purposes of the Plan, the following events shall not be deemed a termination of
employment:

     (a) a transfer of an employee from the Company to a Parent Corporation or Subsidiary, or from
a Parent Corporation or Subsidiary to the Company, or from one Subsidiary to another;

     (b) a leave of absence, approved in writing by the Committee, for military service or
sickness, or for any other purpose approved by the Company if the period of such leave does not
exceed ninety (90) days (or such longer period as the Committee may approve, in its sole
discretion); and

     (c) a leave of absence in excess of ninety (90) days, approved in writing by the Committee,
but only if the employee’s right to reemployment is guaranteed either by a statute or by contract,
and provided that, in the case of any leave of absence, the employee returns to work within 30 days
after the end of such leave.

     SECTION 10. Amendments and Termination.

     The Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or
discontinuation shall be made (i) which would impair the rights of an optionee or participant under
a Stock Option, Restricted Stock or other Stock-based award theretofore granted, without the
optionee’s or participant’s consent, or (ii) which without the approval of the stockholders of
the Company would cause the Plan to no longer comply with Rule 16b-3 under the Securities
Exchange Act of 1934, Section 422 of the Code or any other regulatory requirements.

14

 

     The Committee may amend the terms of any award or option theretofore granted, prospectively or
retroactively to the extent such amendment is consistent with the terms of this Plan, but no such
amendment shall impair the rights of any holder without his or her consent except to the extent
authorized under the Plan. The Committee may also substitute new Stock Options for previously
granted options, including previously granted options having higher option prices.

     SECTION 11. Unfunded Status of Plan.

     The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments not yet made to a participant or optionee by the Company, nothing
contained herein shall give any such participant or optionee any rights that are greater than those
of a general creditor of the Company. In its sole discretion, the Committee may authorize the
creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver Stock or payments in lieu of or with respect to awards hereunder, provided,
however, that the existence of such trusts or other arrangements is consistent with the unfunded
status of the Plan.

     SECTION 12. General Provisions.

     (a) The Committee may require each person purchasing shares pursuant to a Stock Option under
the Plan to represent to and agree with the Company in writing that the optionee is acquiring the
shares without a view to distribution thereof. The certificates for such shares may include any
legend which the Committee deems appropriate to reflect any restrictions on transfer.

     All certificates for shares of Stock delivered under the Plan pursuant to any Restricted
Stock, Deferred Stock or other Stock-based awards shall be subject to such stock-transfer orders
and other restrictions as the Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is
then listed, and any applicable Federal or state securities laws, and the Committee may cause a
legend or legends to be put on any such certificates to make appropriate reference to such
restrictions.

     (b) Subject to paragraph (d) below, recipients of Restricted Stock, Deferred Stock and other
Stock-based awards under the Plan (other than Stock Options) are not required to make any payment
or provide consideration other than the rendering of services.

     (c) Nothing contained in this Plan shall prevent the Board of Directors from adopting other or
additional compensation arrangements, subject to stockholder approval if such approval is required;
and such arrangements may be either generally applicable or applicable only in specific cases. The
adoption of the Plan shall not confer upon any employee of the Company or any Subsidiary any right
to continued employment with the Company or a Subsidiary, as the case
may be, nor shall it interfere in any way with the right of the Company or a Subsidiary to
terminate the employment of any of its employees at any time.

15

 

     (d) Each participant shall, no later than the date as of which any part of the value of an
award first becomes includible as compensation in the gross income of the participant for Federal
income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee
regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld
with respect to the award. The obligations of the Company under the Plan shall be conditional on
such payment or arrangements and the Company and Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment of any kind otherwise due to the
participant. With respect to any award under the Plan, if the terms of such award so permit, a
participant may elect by written notice to the Company to satisfy part or all of the withholding
tax requirements associated with the award by (i) authorizing the Company to retain from the number
of shares of Stock that would otherwise be deliverable to the participant, or (ii) delivering to
the Company from shares of Stock already owned by the participant, that number of shares having an
aggregate Fair Market Value equal to part or all of the tax payable by the participant under this
Section 12(d). Any such election shall be in accordance with, and subject to, applicable tax and
securities laws, regulations and rulings.

     (e) At the time of grant, the Committee may provide in connection with any grant made under
this Plan that the shares of Stock received as a result of such grant shall be subject to a
repurchase right in favor of the Company, pursuant to which the participant shall be required to
offer to the Company upon termination of employment for any reason any shares that the participant
acquired under the Plan, with the price being the then Fair Market Value of the Stock or, in the
case of a termination for Cause, an amount equal to the cash consideration paid for the Stock,
subject to such other terms and conditions as the Committee may specify at the time of grant. The
Committee may, at the time of the grant of an award under the Plan, provide the Company with the
right to repurchase, or require the forfeiture of, shares of Stock acquired pursuant to the Plan by
any participant who, at any time within two years after termination of employment with the Company,
directly or indirectly competes with, or is employed by a competitor of, the Company.

     (f) The reinvestment of dividends in additional Restricted Stock (or in Deferred Stock or
other types of Plan awards) at the time of any dividend payment shall only be permissible if the
Committee (or the Company’s chief financial officer) certifies in writing that under Section 3
sufficient shares are available for such reinvestment (taking into account then outstanding Stock
Options and other Plan awards).

16<PAGE>

CONFIDENTIAL

                                                                    EXHIBIT 10.1

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS([**]), HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES ACT OF1933, AS
AMENDED

                              DEVELOPMENT AGREEMENT

      This DEVELOPMENT AGREEMENT (this "Agreement") is entered into as of
January 24, 2005 (the "Effective Date"), by and between Miltenyi Biotec GmbH,
having an address of Friedrich-Ebert-Str. 68, D-51429 Bergisch Gladbach, Germany
("MILTENYI") and ViaCell, Inc., having an address of 245 First Street, Fifteenth
Floor, Cambridge, MA 02142-1292 USA (including its Affiliates), ("VIACELL").

      WHEREAS, MILTENYI has expertise in providing technology and technical
development capabilities and MILTENYI has developed systems, including the
CliniMACS(R) System, for separating certain cells from a mixture containing such
cells and other cells;

      WHEREAS MILTENYI has expertise in U.S. regulatory matters, including
filing Master Files with the U.S. Food and Drug Administration ("FDA") and cGMP
compliance;

      WHEREAS, VIACELL is seeking a development partner who can develop
cGMP-cell separation reagents for use with VIACELL's stem cell selection and
amplification system and

      WHEREAS, the parties desire to enter into a development agreement as set
forth herein pursuant to which MILTENYI will provide certain technology and
technical development and regulatory capabilities for VIACELL by developing
certain cGMP cell separation reagents for VIACELL for purchase under a separate
Supply Agreement between MILTENYI and ViaCell, Inc.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and for other good and valuable consideration, the parties hereto, intending to
be legally bound, hereby agree as follows:

                                 1. DEFINITIONS

Whenever used in this Agreement with an initial capital letter, the terms
defined in this Section 1 shall have the meanings specified.

1.1 "AFFILIATE" means any corporation, firm, partnership or other entity which
directly or indirectly controls or is controlled by or is under common control
with a Party to this Agreement. "Control" means ownership, directly or through
one or more Affiliates, or fifty percent (50%) or more of the shares of stock
entitled to vote for the election of directors, in the case of a corporation, or
fifty percent (50%) or more of the equity interests in the case of any other
type of legal entity, status as a general partner in any partnership, or any
other arrangement whereby a Party controls or has the right to control the Board
of Directors or equivalent governing body of a corporation or other entity.

                                      -1-
<PAGE>

CONFIDENTIAL

1.2 "CELL SEPARATION KIT" means a product consisting of [**], which is
sufficient to deplete [**] and includes cGMP Cell Separation Kit.

1.3 "cGMP" means the current safety and performance specifications, guidelines,
and regulations with which MILTENYI's CliniMACS [**] currently comply. These
specifications, guidelines and regulations consist of the 1997 FDA document
Points to Consider in the Manufacture and Testing of Monoclonal Antibodies
Products for Human Use, the ICH harmonized tripartite guideline Q5A: Viral
Safety Evaluation of Biotechnology Products Derived from Cell Lines of Human or
Animal Origin, and the ISO standard 10993-1:1997 (E) Biological evaluation of
medical devices - Part 1: Evaluation and testing. Additionally, the manufacture,
testing and release of the CliniMACS [**], CliniMACS [**] and CliniMACS [**] are
conducted under an ISO 13485 certified quality system and the manufacture,
testing and release of CliniMACs [**] and CliniMACs [**] will also be conducted
under the same quality system as the CliniMACS [**] CliniMACS [**] and CliniMACS
[**].

1.4 "cGMP CELL SEPARATION KIT" means a Cell Separation Kit manufactured pursuant
to cGMP.

1.5 "CLINICAL STUDIES" means the clinical trials utilizing the Cell Separation
Kits.

1.6 "CLINIMACS BUFFERS" means the buffers developed by MILTENYI for use in the
CliniMACS System.

1.7 "CLINIMACS REAGENT" means MILTENYI's proprietary colloidal magnetic particle
system utilizing a monoclonal antibody developed by MILTENYI for use in the
CliniMACS system and to deplete certain cells in a mixture.

1.8 [**] means the CliniMACS Reagent where the monoclonal antibody is an
antibody to a [**] cell surface marker.

1.9 CLINIMACS [**] means the CliniMACS Reagent where the monoclonal antibody is
an antibody to a [**] cell surface marker.

1.10 "CLINIMACS [**]" means the CliniMACS Reagent where the monoclonal antibody
is an antibody to a [**] cell surface marker.

1.11 "CLINIMACS [**]" means the CliniMACS Reagent where the monoclonal antibody
is an antibody to a [**] cell surface marker.

1.12 "CLINIMACS [**]" means the CliniMACS Reagent where the monoclonal antibody
is an antibody to a [**] cell surface marker.

1.13 "CLINIMACS SYSTEM" means that system developed by MILTENYI for conducting
cell separation by use of CliniMACS Reagents, CliniMACS Tubing Sets and the
Instrument.

1.14 "CLINIMACS TUBING SETS" means the tubing and related disposable equipment
developed by MILTENYI for use with the CliniMACS Instrument.

                                      -2-
<PAGE>

CONFIDENTIAL

1.15 "CONFIDENTIAL INFORMATION" means all tangible embodiments of Technology and
all information (including but not limited to information about any element of
Technology) which is disclosed by one Party to the other hereunder except to the
extent that such information (i) as of the date of disclosure is demonstrably
known to the Party receiving such disclosure or its Affiliates, as shown by
written documentation, other than by virtue of a prior confidential disclosure
to such Party or its Affiliates; (ii) as of the date of disclosure is in, or
subsequently enters, the public domain, through no fault or omission of the
Party receiving such disclosure; or (iii) as of the date of disclosure or
thereafter is obtained from a Third Party free from any obligation of
confidentiality to the disclosing Party.

1.16 "DEVELOPMENT MILESTONE PAYMENTS" has the meaning set forth in Section
2.2.4.

1.17 "DEVELOPMENT PROGRAM" has the meaning set forth in Section 2.2.

1.18 "EFFECTIVE DATE" means the date set forth in the first paragraph above.

1.19 "INSTRUMENT" means the CliniMACS(R) instrument developed by MILTENYI for
conducting the separation of cells labeled with CliniMACS Reagent from other
cells, and consisting primarily of a magnetized column through which such cells
pass and certain related equipment or another instrument the Parties may decide
to develop at a later time.

1.20 "JOINT PATENT RIGHTS" means Patent Rights with respect to Joint Technology.

1.21 "JOINT TECHNOLOGY" has the meaning set forth in Section 4.1.3.

1.22 "VIACELL TECHNOLOGY" means Technology owned or controlled by VIACELL or its
Affiliates, that is useful in the Development Program, and that was conceived or
developed without contribution by MILTENYI, and independently of the MILTENYI
Technology or Joint Technology.

1.23 "MASTER FILE" means a Device Master File filed by MILTENYI with the FDA.

1.24 "MILTENYI TECHNOLOGY" means Technology owned or controlled by MILTENYI or
its Affiliates, and that was conceived or developed without contribution by
VIACELL, and independently of the VIACELL Technology of Joint Technology.

1.25 "PARTIES" means MILTENYI and VIACELL.

1.26 "PARTY" means MILTENYI or VIACELL, as appropriate.

1.27 "PATENT RIGHTS" means the rights and interests in and to issued patents and
pending patent applications (which for purposes of this Agreement shall be
deemed to include certificates of invention and applications for certificate of
invention and priority rights) in any country, including all provisional
applications, substitutions, continuations, continuations-in-part, divisions,
and renewals, all letters patent granted thereon, and all reissues,
reexaminations and extensions thereof, whether owned or licensed in by a Party
with the right to sublicense. As used herein, "VIACELL Patent Rights" means
Patent Rights with respect to VIACELL Technology and "MILTENYI Patent Rights"
means Patent Rights with respect to MILTENYI Technology.

                                      -3-
<PAGE>

CONFIDENTIAL

1.28 "SPECIFICATIONS" are the criteria by which the Cell Separation Kit is
released and accepted, including the configuration of the packaging that
comprises the Cell Separation Kit. The criteria will be agreed to by the
Operating Committee. Such criteria may be modified by the Parties from time to
time as agreed to by the Operating Committee until MILTENYI begins any part of
the production process for product falling within the scope of Section 3.2 of
the Supply Agreement ("Second Product Shipment"), however, the Parties recognize
that VIACELL may be required to pay additional fees for any modifications to
criteria.

1.29 "SUPPLY AGREEMENT" means the Supply Agreement entered into between MILTENYI
and ViaCell, Inc. effective January 24, 2005.

1.30 "TECHNOLOGY" means and includes all inventions, discoveries, improvements,
trade secrets and proprietary methods and materials, whether or not patentable,
including but not limited to, samples of, methods of production or use of, and
structural and functional information pertaining to, chemical compounds,
proteins or other biological substances; other date; formulations; techniques;
and know-how; including any negative results. "Technology" of a Party includes
Technology owned or controlled by a Party or licensed to that Party.

1.31 "TERM" means the term of this Agreement as set forth in Section 6.1.

1.32 "THIRD PARTY" means any person or entity other than MILTENYI and VIACELL
and their respective Affiliates.

                             2. DEVELOPMENT PROGRAM

2.1 OBJECTIVE OF THE DEVELOPMENT PROGRAM. The objective of the Development
Program shall be the completion of certain technical services by MILTENYI to
develop a Cell Separation Kit for VIACELL which is sufficient to deplete [**].

In carrying out the Development Program, MILTENYI and VIACELL shall each use
commercially reasonable efforts to perform such tasks as are set forth to be
performed by it under the terms of this Agreement, in accordance with all
applicable laws, ordinances, rules, regulations, orders, licenses and other
requirements now in effect.

2.2 DEVELOPMENT PROGRAM.

      2.2.1 DEVELOPMENT OF CGMP CELL SEPARATION KIT. MILTENYI will use
commercially reasonable efforts to develop a cGMP Cell Separation Kit for
VIACELL based on MILTENYI Technology.

            (a)   The Parties agree that MILTENYI has already developed the
                  CliniMACS [**] at different fill concentrations from those
                  required for the cell Separation Kit.

            (b)   MILTENYI will develop a CliniMACS [**] and a CliniMACS [**]
                  for use in the Cell Separation Kit, as well as for other uses
                  by MILTENYI.

                                      -4-
<PAGE>

CONFIDENTIAL

            (c)   In developing the Cell Separation Kit, MILTENYI will perform
                  the specific tasks identified in Exhibit A as being the
                  responsibility of MILTENYI and will do so in the manner and to
                  the extent that it has previously done so for developing and
                  filing the Master File for CliniMACS [**]. To the extent that
                  VIACELL requests additional development work, the provisions
                  of Section 2.4 shall apply.

            (d)   For all CliniMACS Reagents used in the Cell Separation Kit,
                  MILTENYI will employ its protein-free manufacturing, FDA
                  accepted virus validation procedure, cell banking and
                  downstream processing experience, including QA and QC
                  experience. To the extent that VIACELL requests additional
                  development work the provisions of Section 2.4 shall apply.

            (e)   MILTENYI will provide VIACELL with sample [**] antibody and
                  [**] antibody to evaluate as soon as it becomes available
                  during the Development Program.

            (f)   VIACELL will use commercially reasonable efforts to provide to
                  MILTENYI initial product requirements for the Cell Separation
                  Kit and MILTENYI and VIACELL, via the Operating Committee,
                  will agree on the Specifications for the Cell Separation Kit
                  in the course of the Development Agreement. To the extent that
                  VIACELL requests additional development work, the provisions
                  of Section 2.4 shall apply.

            (g)   MILTENYI will provide VIACELL with sample Cell Separation Kits
                  in sufficient quantity for VIACELL to evaluate and will
                  provide VIACELL with final Specifications for the Cell
                  Separation Kit, as soon as they become available during the
                  Development Program. [**]. To the extent that VIACELL rejects
                  sample and/or the final Specifications, MILTENYI shall work
                  with VIACELL to develop mutually acceptable specifications
                  and/or MILTENYI shall replace the Cell Separation Kit sample
                  with product that meets such Specifications. To the extent
                  that VIACELL requests additional development work, the
                  provisions of Section 2.4 shall apply.

            (h)   To the extent that VIACELL requests MILTENYI to perform
                  additional work outside the scope of clauses (a) through (g)
                  of this Section 2.2.1, the provisions of Section 2.4 shall
                  apply.

      2.2.2 REGULATORY FILINGS. MILTENYI will prepare and file Master Files with
the FDA for CliniMACS [**] and CliniMACS [**]. MILTENYI will amend the Master
Files for the CliniMACS [**], the CliniMACS [**] and the CliniMACS [**] for the
fill concentrations required for the Cell Separation Kit. The Master Files will
be prepared in accordance with, and with the same type and scope of information
as, the Master File previously submitted by MILTENYI for CliniMACS [**] and
accepted by the FDA. To the extent that VIACELL requests that MILTENYI add
additional information to the Master Files for the CliniMACS Reagents which are
components of the Cell Separation Kit, the provisions of Section 2.4 shall

                                      -5-
<PAGE>

CONFIDENTIAL

apply. MILTENYI shall own and retain all rights, title and interest in and to
all regulatory filings for CliniMACS Reagents, including all Master Files.
Nothing in this Agreement shall give VIACELL the right to view or copy
MILTENYI's Master Files or excerpts of the Master Files.

      2.2.3 UNSPECIFIED TASKS. To the extent the manner of performing or
implementing a task is not specified in Section 2.2.1 or 2.2.2 or in Exhibit A,
the Party who is obligated to perform or implement such task shall have the
right to determine the manner of performance or implementation consistent with
the best interests of the Development Program.

      2.2.4 DEVELOPMENT MILESTONE PAYMENTS. In partial consideration of the
actions undertaken by MILTENYI in connection with the Development Program,
VIACELL will make the following Development Milestone Payments (by wire
transfer) to MILTENYI:

            (a)   [**] on the date of execution of this Agreement; and

            (b)   $250,000.00 (two hundred fifty thousand US dollars) within
                  fifteen (15) after MILTENYI notifies VIACELL that the Master
                  Files for CliniMACS [**] and CliniMACS [**] have been filed
                  with the FDA.

2.3 EXPENSES AND COSTS. Each Party shall bear its own costs and expenses
incurred in the performance of the Development Program except as otherwise
mutually agreed in writing between the Parties hereto.

2.4 COSTS FOR UNSPECIFIED TASKS AND OTHER ADDITIONAL WORK. VIACELL shall pay
MILTENYI at a mutually agreed rate for any work, including technical,
manufacturing, regulatory, QC and QA work, VIACELL requests that is in addition
to the work specifically enumerated in Sections 2.2.1 and 2.2.2.

2.5 DEVELOPMENT PROJECT ADMINISTRATION. Each party will designate one of its
employees to serve as the Project Manager. The Project Manager for a Party may
be changed at any time by the Party and the Party may designate a temporary
substitute at any time. Each Party's Project Manager will be responsible for
coordinating the work performed by the parties to ensure that each Party meets
its obligations under this Agreement. Each Party's Project Manager shall also
serve as the primary contact for the respective designating Party and will be
responsible for maintaining communication between VIACELL and MILTENYL.

      [**]

2.6 MEETINGS. All meetings regarding the Development Program shall take place in
Bergisch Gladbach or Teterow, Germany or another mutually agreed upon location;
provided, however, that the Parties may mutually agree to meet by teleconference
or video conference.

2.7 MILTENYI RIGHTS. MILTENYI and its Affiliates shall have the right to
manufacture, use, sell, offer for sale, sell and import Cell Separation Kits
that are not certified as cGMP Cell Separation Kits. MILTENYI shall also have
the right to manufacture, use, sell, offer for sale, sell and import each of the
components of the Cell Separation Kit, whether they are cGMP or

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non-cGMP. MILTENYI shall further have the right to manufacture, use, sell, offer
for sale and import cGMP Cell Separation Kits that are certified as cGMP Cell
Separation Kits except that MILTENYI may not sell cGMP Cell Separation Kits for
expansion of Hematopoietic stem cells to a competitor of VIACELL without the
prior written permission of VIACELL. In the event VIACELL abandons its efforts
to develop and commercialize a product made using the cGMP Cell Separation Kit,
MILTENYI and its Affiliates shall have the right to manufacture, sell, offer for
sale, use, and sell cGMP Cell Separation Kit, including the right to use cGMP
Cell Separation Kit to manufacture cellular products for cellular therapy.

                    3. TREATMENT OF CONFIDENTIAL INFORMATION

3.1 CONFIDENTIALITY/RESTRICTIONS ON TRANSFER.

      3.1.1 CONFIDENTIAL INFORMATION. MILTENYI and VIACELL each recognize that
the other Party's Confidential Information constitutes highly valuable and
proprietary confidential information. MILTENYI and VIACELL each agree that
during the Term of this Agreement and the term of the Supply Agreement and for
five (5) years after the latter to terminate of those agreements, it will keep
confidential, and will cause its employees, consultants and Affiliates to keep
confidential, and shall not transfer to any Third Party, Confidential
Information of the other Party that is disclosed or transferred to it, or to any
of its employees, consultants and Affiliates, pursuant to or in connection with
this Agreement, without the prior written consent of the other Party and except
to the extent that disclosure, or transfer, is required in accordance with the
performance of this Agreement. Neither VIACELL, nor MILTENYI, nor any of their
respective employees, consultants and Affiliates shall use Confidential
Information of the other Party for any purpose whatsoever except as expressly
permitted in this Agreement. Notwithstanding anything contained herein to the
contrary, the Parties agree that with respect to production technology, QA, QC
and regulation information, such information shall remain confidential without
limit unless such information becomes part of the public domain through no fault
of the recipient of such information.

      3.1.2 NON-DISCLOSURE. Each Party shall take such action, and shall cause
its Affiliates and licensees and sublicensees to take such action, to preserve
the confidentiality of each other's Confidential Information as it would
customarily take to preserve the confidentiality of its own Confidential
Information, and in no event, less than reasonable care. Each Party, upon the
other's request, will return all the Confidential Information disclosed or
transferred to it by the other Party pursuant to this Agreement, including all
copies and extracts of documents and all manifestations in whatever form, within
sixty (60) days of the request following the termination of this Agreement;
provided that a Party may retain Confidential Information of the other Party
relating to any license or right to use Technology which survives such
termination and one copy of all other Confidential Information may be retained
in inactive archives solely for the purpose of establishing the contents
thereof.

3.2 DISCLOSURE REQUIRED BY LAW. If a Party is requested or required by subpoena,
court order, or similar process to disclose any Confidential Information of the
other Party, the parties agree that the Party required or requested to make the
disclosure will provide the other Party with prompt notice of such request(s) so
that the Party whose Confidential Information is required or

                                      -7-
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requested to be disclosed may seek appropriate protective order and/or waive the
other Party's compliance with the provisions of Section 3.1.

3.3 EMPLOYEES AND CONSULTANTS. MILTENYI and VIACELL each represent that all of
its employees and the employees of its Affiliates, and any consultants to such
Party or its Affiliates, who shall have access to Confidential Information of
the other Party are bound by written obligations to maintain such information in
confidence and not to use such information except as expressly permitted herein.
Each Party agrees to enforce confidentiality obligations to which its employees
and consultants (and those of its Affiliates) are obligated.

3.4 PUBLICITY. Neither Party may publicly disclose the existence or terms of
this Agreement without the prior written consent of the other Party; provided,
however, that either Party may make such a disclosure to the extent required by
law. Such disclosure shall be on reasonable notice to the other Party and after
taking all reasonable steps to maintain confidentiality. The Parties, upon the
execution of this Agreement, will jointly prepare a press release and will
jointly decide about an appropriate time for publishing such press release. The
Parties agree that there will be no press release related to this Agreement or
the Supply Agreement that is not authorized by all Parties. Once any written
statement is approved for disclosure by the other Party, either Party may make
subsequent public disclosure of the contents of such statement without the
further approval of the other Party.

3.5 LIMITATION ON DISCLOSURES. Notwithstanding any provision in this Agreement,
neither Party shall be obligated hereunder to disclose to the other Party any
information which it is prohibited from disclosing by law or under any agreement
with a Third Party.

3.6 THIS AGREEMENT. The Parties agree that the material terms of this Agreement
shall be considered Confidential Information of each of the Parties. The Parties
will consult with one another and agree on the provisions of the Agreement to be
redacted in any filings made by any Party with the Securities and Exchange
Commission or as otherwise required by law or regulation. Notwithstanding the
foregoing, each Party shall have the right to disclose in confidence the
material terms of this Agreement to parties retained by such Party to perform
legal, accounting or similar services and who have a need to know such terms in
order to provide such services and to other parties upon the prior written
approval of the Parties to this Agreement.

                        4. INTELLECTUAL PROPERTY RIGHTS

4.1 OWNERSHIP.

      4.1.1 MILTENYI INTELLECTUAL PROPERTY RIGHTS. Except as otherwise provided
herein, MILTENYI shall have sole and exclusive ownership of all right, title and
interest on a worldwide basis in and to any and all MILTENYI Technology with
full rights to license or sublicense. Without limiting the foregoing, except as
otherwise provided herein, MILTENYI shall be the sole owner of all Patent
Rights, all trade secret rights, all know-how and any other intellectual
property rights in the MILTENYI Technology including the sole and exclusive
right to exclude others from making, using, selling, offering for sale or
importing the MILTENYI Technology or any products derived from any MILTENYI
Technology.

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      4.1.2 VIACELL INTELLECTUAL PROPERTY RIGHTS. VIACELL shall have sole and
exclusive ownership of all right, title and interest on a worldwide basis in and
to any and all VIACELL Technology with full rights to license or sublicense
except as provided for in Section 2.7. Without limiting the foregoing, VIACELL
shall be the sole owner of all Patent Rights, all trade secret rights, all
know-how and any other intellectual property rights in the VIACELL Technology,
including the sole and exclusive right to exclude others from making, using,
selling, offering for sale or importing the VIACELL Technology or any products
derived from any VIACELL Technology.

      4.1.3 JOINT TECHNOLOGY. MILTENYI and VIACELL shall each own an undivided
interest in all Joint Technology, which is defined for purposes of this
Agreement as Technology (i) jointly invented, discovered, acquired, or developed
by or on behalf of both VIACELL (and/or any party performing sponsored research
for VIACELL) and MILTENYI (and/or any party performing sponsored research for
MILTENYI) or (ii) invented, discovered or developed by one Party (or during any
research sponsored by such party) with the use of the Technology of the other
Party.

4.2 INVENTORSHIP. In case of a dispute between MILTENYI or VIACELL over
inventorship, the Chief Executive Officers of the Parties or their designee(s),
shall make the determination of the inventor(s) by application of the standards
contained in United States patent law. The Chief Executive Officers of the
Parties or their designee(s), shall also, in the case of dispute, make the
determination as to whether an invention is Joint Technology. All such
determinations shall be treated as Joint Decisions hereunder. If the Chief
Executive Officers of the Parties or their designee(s) cannot resolve the
dispute, it shall be resolved by independent patent counsel, not otherwise
engaged by either of the Parties, selected by the Chief Executive Officers of
the Parties or their designee(s). Expenses of such independent patent counsel
shall be shared equally by the Parties.

             5. FILING, PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

5.1 FILING OF PATENTS. Each Party will be responsible for the filing and
prosecution, in such countries as the responsible Party shall select, of patents
on Technology solely owned or solely invented by such Party and on Joint
Technology which principally relates to its own Techno logy and which is
developed during the Development Program, provided that the other Party will
have the opportunity to provide substantive review and comment on any such
prosecution solely as it relates to claims in the scope of the Development
Program. Portions of any documents relating to any such prosecution not within
the scope of the Development Program may be redacted by a Party prior to
provision to the other Party. Except as set forth above, responsibility for
filing and prosecution of patents on Joint Technology not principally related to
either VIACELL Technology alone or MILTENYI Technology alone will be determined
by the Chief Executive Officers or their designee(s) on a case-by-case basis and
handled by mutually acceptable patent counsel charged with the duty to act in
the best interests of the Development Program.

5.2 EXPENSES. MILTENYI shall bear the cost for the filing, prosecution and
maintenance of MILTENYI Patent Rights. VIACELL shall bear the cost for the
filing, prosecution and maintenance of VIACELL Patent Rights. The parties shall
share equally the cost for the filing, prosecution and maintenance of Joint
Patent Rights, and in the event either Party uses any

                                      -9-
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in-house patent counsel, expenses shall be shared in such instance based on
reasonable rates as agreed in advance by the Chief Executive Officers or their
designee(s).

5.3 Legal Action.

      5.3.1 ACTUAL OR THREATENED INFRINGEMENT. Subject to any obligation to a
Third Party licensor of Technology or Patent Rights to a Party with respect to
the subject matter hereof:

            (a)   In the event either Parties becomes aware of any possible
                  infringement or unauthorized possession, knowledge or use of
                  any intellectual property which is the subject matter of this
                  Agreement (collectively, an "Infringement"), that Party shall
                  promptly notify the other Party and provide it with full
                  details. Upon a determination by either Party that such
                  Infringement involves the manufacture, use, sale, offer for
                  sale, or import of Cell Separation Kits by a Third Party, such
                  Party may give notice of such determination to the other Party
                  hereto (an "Infringement Notice"). If such infringement
                  relates solely to the infringement of MILTENYI patent rights,
                  then MILTENYI shall have the option, but not the obligation,
                  to prosecute or prevent the Infringement of Patent Rights
                  relating to the Cell Separation Kits or the manufacture or use
                  thereof. If such infringement relates solely to the
                  infringement of VIACELL patent rights, then VIACELL shall have
                  the option, but not the obligation, to prosecute or prevent
                  the Infringement of Patent Rights relating to the Cell
                  Separation Kits or the manufacture, use, offer for sale or
                  import thereof. If either Party determines that it is
                  necessary or desirable for the other to join any such suit,
                  action or proceeding, the second Party shall execute all
                  papers and perform such other acts as may be reasonably
                  required in the circumstances. In the event of an Infringement
                  of a Joint Patent Right, or in the event such infringement
                  does not relate solely to MILTENYI patent rights or VIACELL
                  patent rights, the Chief Executive Officers or their
                  designee(s) shall determine whether and how to prosecute or
                  prevent the Infringement. If the Chief Executive Officers are
                  unable to determine whether and how to commence an action for
                  infringement of a Joint Patent Right, either Party shall have
                  the right to prosecute such patent infringement action. The
                  Party bringing any action under this Section 5.3.1(a) shall do
                  so at its own expense and shall retain all amounts received as
                  a result of such action.

            (c)   In any action under Section 5.3.1, the Parties shall fully
                  cooperate with and assist each other.

            (d)   In the event that the scope of an action under Section 5.3.1
                  goes beyond the scope of the Development Program and an award
                  of damages or royalties is granted for infringing activity
                  outside the scope of the Development Program, such award shall
                  be retained by the owner of the Patent Right in question.

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5.4 DEFENSE OF CLAIMS. Subject to any obligation to a Third Party licensor of
Technology or Patent Rights to a Party with respect to the subject matter
hereof, in the event that any action, suit or proceeding is brought against
MILTENYI or VIACELL or any Affiliate of either Party alleging the infringement
of the intellectual property rights of a Third Party by reason of the discovery,
development, manufacture, use, sale, importation or offer for sale of Cell
Separation Kits or use of MILTENYI, VIACELL or Joint Technology in the
discovery, development, manufacture, use, sale, offer for sale, or importation
of Cell Separation Kits, the Parties will cooperate with each other in the
defense of any such suit, action or proceeding. The Parties will give each other
prompt written notice of the commencement of any such suit, action or proceeding
or claim of infringement. Neither Party shall compromise, litigate, settle or
otherwise dispose of any such suit, action or proceeding which involves the use
of the other's Technology or Patent Rights without the other Party's advice and
prior consent, provided that the Party not defending the suit shall not
unreasonably withhold its consent to any settlement which does not have a
material adverse effect on its business. If the defending Party agrees that the
other Party should institute or join any suit, action or proceeding pursuant to
this Section, the other Party may at its expense, join the defending Party as a
party to the suit, action or proceeding, and the Party so joined shall execute
all documents and take all other actions, including giving testimony, which may
reasonably be required in connection with the prosecution of such suit, action
or proceeding. To the extent that the allegation of infringement is based
principally on the use of VIACELL Technology, or on the manufacture, use, sale,
offer for sale or import of Cell Separation Kits, and no other MILTENYI products
or MILTENYI processes used to produce other MILTENYI products are accused of
infringement, VIACELL shall have the right to join in any suit, action,
proceeding pursuant to this Section alleging the infringement of the
intellectual property rights of a Third Party by reason of the discovery,
development, manufacture, use, sale, importation or offer for sale of Cell
Separation Kits or use of VIACELL Technology in the discovery, development,
manufacture, use, sale, offer for sale, or importation of Cell Separation Kits
and the expenses of defense of the suit shall be borne by VIACELL. To the extent
that the allegation of infringement is based principally on the use of MILTENYI
Technology, or on the manufacture, use, sale, offer for sale or import of the
Cell Separation Kits, and no other VIACELL products or VIACELL processes used to
produce other VIACELL products are accused of infringement, MILTENYI shall have
the right to join in any suit, action, proceeding pursuant to this Section
alleging the infringement of the intellectual property rights of a Third Party
by reason of the discovery, development, manufacture, use, sale, importation or
offer for sale of Cell Separation Kits or use of MILTENYI Technology in the
discovery, development, manufacture, use, sale, offer for sale, or importation
of Cell Separation Kits. To the extent that the allegation of infringement is
based principally on the use of Joint Technology, or to the extent that the
allegation of infringement is not based principally on the use of either
MILTENYI Technology or VIACELL Technology, each Party shall have the right to
join in any suit, action, proceeding pursuant to this Section alleging the
infringement of the intellectual property rights of a Third Party by reason of
the discovery, development, manufacture, use, sale, importation or offer for
sale of Cell Separation Kits or use of Joint Technology in the discovery,
development, manufacture, use, sale, offer for sale, or importation of Cell
Separation Kits. The Parties shall bear their own expenses in defense of the
suit. If as a consequence of such action, suit or proceeding by a Third Party
claiming that the discovery, development, manufacture, use or sale of a Cell
Separation Kit infringes such Third Party's intellectual property rights, the
Parties shall examine and discuss in good faith the consequences

                                      -11-
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of such prohibition or restriction or other conditions on this agreement and on
possible modification thereto.

                        6. TERMINATION AND DISENGAGEMENT

6.1 TERM. This Agreement shall commence on the Effective Date and, unless sooner
terminate as provided herein, shall continue in effect until the earlier of (i)
the expiration of all of the payment obligations of VIACELL under the Agreement
and all of the development obligation of MILTENYI under the Agreement and (ii)
two (2) years from the Effective Date.

6.2 TERMINATION.

      6.2.1 TERMINATION FOR CAUSE. The Agreement may be terminated at any time
by either Party in the following ways:

            (a)   immediately by a Party if (i) the other Party shall have
                  dissolved, ceased active business operations or liquidated,
                  unless such dissolution, cessation or liquidation results from
                  reorganization, acquisition, merger or similar event, or (ii)
                  bankruptcy or insolvency proceedings, including any proceeding
                  under Title 11 of the United States Code, have been brought by
                  or against the other Party and, in the event such a proceeding
                  has been brought against such Party, remains undismissed for a
                  period of sixty (60) days, or (iii) an assignment has been
                  made for the benefit of the other Party's creditors or a
                  receiver of such Party's assets has been appointed; or

            (b)   by the non-defaulting Party upon thirty (30) days written
                  notice to the defaulting Party (which notice shall specify the
                  nature of the default), if either Party shall have failed in
                  the full and timely observance or performance of any of its
                  obligations under this Agreement, including, without
                  limitation, the failure by either Party to meet its
                  obligations set forth in the Development Program in a timely
                  manner.

6.3 CONSEQUENCES OF TERMINATION OR EXPIRATION

      6.3.1 TECHNOLOGY RIGHTS. Except as otherwise provided in Section 2.7, in
the event of termination of the Development Program

            (a)   each Party will retain exclusive rights under its own
                  Technology and Patent Rights, and each Party shall be free to
                  pursue the development and commercialization of such rights in
                  any manner that it may choose, subject only to the rights as
                  set forth below; and

            (b)   all exclusive and non-exclusive rights granted to either Party
                  shall immediately terminate.

      6.3.2 RIGHT TO DEVELOPMENT MILESTONE PAYMENTS. If VIACELL terminates this
Agreement for any reason other than pursuant to Section 6.2.1(b) or if MILTENYI
terminates this Agreement terminates pursuant to Section 6.2.1 and any of the
Development Milestone

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Payments have not been paid to MILTENYI, the unpaid Development Milestone
Payments shall be paid to MILTENYI within fifteen (15) days by wire transfer.

6.4 SURVIVING PROVISIONS. Termination and expiration of this Agreement for any
reason shall be without prejudice to:

            (a)   the rights and obligations of the Parties provided in 2.2.4,
                  2.3, 6.3, 10.1, 10.2, 10.3, 10.4, 10.5, 10.7, 10.8, 10.9,
                  10.10, 10.11, 10.12 and Articles 3, 4, 5, 7, 8, 9 and 1 (to
                  the extent terms defined therein are used in other surviving
                  sections or articles hereof) all of which shall survive such
                  termination;

            (b)   any rights of either Party which may have accrued up to the
                  date of such termination or expiration; and

            (c)   any other rights or remedies provided at law or equity which
                  either Party may otherwise have against the other.

                       7. REPRESENTATIONS AND WARRANTIES

7.1 MUTUAL REPRESENTATIONS. MILTENYI and VIACELL each represents and warrants to
the other, as of the Effective Date as follows:

      7.1.1 ORGANIZATION. It is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation, it
is qualified to do business and is in good standing as a foreign corporation in
each jurisdiction in which the performance of its obligations hereunder requires
such qualification and has all requisite power and authority, corporate or
otherwise, to conduct its business as now being conducted, to own, lease and
operate its properties and to execute, deliver and perform this Agreement.

      7.1.2 AUTHORIZATION. The execution, delivery and performance by it of this
Agreement have been duly authorized by all necessary corporate action and do not
and will not (a) require any consent or approval of its stockholders or (b)
violate any provision of any agreement, law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award presently in effect having
applicability to it or any provision of its charter documents.

      7.1.3 BINDING AGREEMENT. This Agreement is a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms and
conditions.

      7.1.4 NO INCONSISTENT OBLIGATION. It is not under any obligation to any
person, or entity, contractual or otherwise, that is conflicting or inconsistent
in any respect with the terms of this Agreement or that would impede the
diligent and complete fulfillment of its obligations hereunder and that it has
all power and authority under all instruments or agreements to which it is a
party to enter into this Agreement and to perform its obligations hereunder.
Furthermore, except as otherwise provided herein, it is not a party to any
agreement that would directly or indirectly grant rights in the other Party's
Technology to any Third Party.

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                               8. INDEMNIFICATION

8.1 INDEMNIFICATION OF VIACELL BY MILTENYI. MILTENYI shall indemnify, defend and
hold harmless VIACELL, its Affiliates and their respective directors, officers,
employees, and agents and their respective successors, heirs and assigns (the
"VIACELL Indemnitees"), against any liability, damage, loss or expense
(including reasonable attorneys' fees and expenses of litigation) incurred by or
imposed upon the VIACELL Indemnities, or any one of them, in connection with any
claims, suits, actions, demands or judgments of any Third Party (except in cases
where such claims, suits, actions, demands or judgments result from a material
breach of this Agreement, gross negligence or willful misconduct on the part of
VIACELL) arising out or based on the breach by MILTENYI of any of its
representations, warranties, covenants or obligations contained or incorporated
in this Agreement or willful misconduct except that MILTLENYI shall not
indemnify VIACELL for any liability, damage, loss or expense (including
reasonable attorneys' fees and expenses of litigation) incurred by or imposed
upon the VIACELL Indemnities, or any one of them, in connection with any claims,
suits, actions, demands or judgments of any Third Party for patent infringement
or for any product liability claims (unless in cases of willful misconduct). IN
NO EVENT WILL MILTENYI BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT OR EXEMPLARY
DAMAGES SUFFERED BY THE VIACELL INDEMNITEES.

8.2 INDEMNIFICATION OF MILTENYI BY VIACELL. VIACELL shall indemnify, defend and
hold harmless MILTENYI, its Affiliates and their respective directors, officers,
employees and agents and their respective successors, heirs and assigns (the
"MILTENYI Indemnitees"), against any liability, damage, loss or expense
(including reasonable attorneys' fees and expenses of litigation) incurred by or
imposed upon the MILTENYI Indemnitees, or any one of them, in connection with
any claims, suits, actions, demands or judgments of any Third Party (except in
cases where such claims, suits, actions, demands or judgments result from
willful misconduct on the part of MILTENYI) arising out or based on product
liability, patent infringement or the breach by VIACELL of any of its
representations, warranties, covenants or obligations contained or incorporated
in this Agreement. IN NO EVENT WILL VIACELL BE LIABLE FOR ANY CONSEQUENTIAL,
INDIRECT OR EXEMPLARY DAMAGES SUFFERED BY THE MILTENYI INDEMNITEES.

8.3 INDEMNITY PROCEDURE. In the event that a Party is seeking indemnification
under Section 8.1 or 8.2, it shall inform the other Party (the "Indemnifying
Party") of a claim as soon as reasonably practicable after it receives notice of
the claim, shall permit the Indemnifying Party to assume direction and control
of the defense of the claim (including the right to settle the claim solely for
monetary consideration), and, at the Indemnifying Party's expense, shall
cooperate as reasonably requested in the defense of the claim. The Indemnified
Party shall have the right to retain its own counsel, subject to the approval of
any such outside counsel by the Indemnifying Party, with the fees and expenses
to be paid by the Indemnifying Party if representation of such Party by the
counsel retained by Indemnifying Party would be inappropriate due to actual or
potential differing interests between such indemnitee and any other Party
represented by such counsel in such proceedings. The Indemnifying Party may not
settle such action or claim, or otherwise consent to an adverse judgment in such
action or claim, without the express written consent of the Indemnified Party if
such settlement or adverse judgment diminishes the rights or interests of the
Indemnified Party but such written consent shall not be unreasonably withheld.

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8.4 LIMITATION OF MILTENYI'S LIABILITY. MILTENYI's liability is limited to
developing a Cell Separation Kit meeting the mutually agreed upon
Specifications. MILTENYI is in no event liable for any damage, loss or expense
arising out or based on any use of the Cell Separation Kit or cGMP Cell
Separation Kit by VIACELL, unless in cases of willful misconduct. Any and all
claims of VIACELL, against MILTENYI for any other reasons than willful
misconduct or failure of MILTENYI to develop a Cell Separation Kit or cGMP Cell
Separation Kit not meeting the mutually agreed upon Specifications are excluded.
VIACELL is aware that this provision may require the consent of VIACELL's
insurance company providing pharmaceutical liability insurance. VIACELL shall
provide such consent in writing to MILTENYI.

8.5 FURTHER LIMITATION OF LIABILITY. In any event, MILTENYI's liability for any
claim and obligation to indemnify VIACELL or its Affiliates shall be limited to
the aggregate amount of all payments received by Miltenyi under this Agreement
from VIACELL.

8.6 WARRANTY DISCLAIMER. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO ANY TECHNOLOGY,
GOODS, SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND HEREBY
DISCLAIMS WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NONINFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.

8.7 LIMITED LIABILITY. NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR
OTHERWISE, NEITHER VIACELL NOR MILTENYI WILL BE LIABLE WITH RESPECT TO ANY
SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR (I) ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS OR (II) COST OF PROCUREMENT OF
SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES.

                             9. DISPUTE RESOLUTION

9.1 DISPUTE RESOLUTION.

      9.1.1 GENERAL. In the event of any dispute, difference or question arising
between the Parties in connection with this Agreement, the construction thereof,
or the rights, duties or liabilities of either Party, and which dispute cannot
be amicably resolved by the good faith efforts, then such dispute shall be
resolved by binding arbitration as set forth in Section 9.1.2.

      9.1.2 ARBITRATION. Binding arbitration shall be conducted in accordance
with the Arbitration Rules of the Cologne Chamber of Commerce and Industry (IHK
Koln) without recourse to the ordinary courts of law. The arbitration panel
shall be composed of three arbitrators, one of whom shall be chosen by MILTENYI,
one by VIACELL and the third, who shall be chairman of the panel, by the two so
chosen. If both or either of MILTENYI or VIACELL fails to choose an arbitrator
or arbitrators within fourteen (14) days after receiving notice of commencement
of arbitration or if the two arbitrators fail to choose a third arbitrator
within fourteen (14) days after their appointment, the then President of the
Cologne Chamber of Commerce and Industry shall, upon the request of both or
either of the Parties to the arbitration,

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appoint the arbitrator or arbitrators required to complete the board or, if he
shall decline or fail to do so, such arbitrator or arbitrators shall be
appointed by the Cologne Chamber of Commerce and Industry.

            (a)   EXCHANGE OF PROPOSALS. Within ten (10) days of the appointment
                  of the full arbitration panel, the Parties shall exchange
                  documents setting forth their final detailed proposals for
                  resolution of the matter in dispute, together with a brief or
                  other written memorandum supporting the merits of their final
                  proposal. The arbitration panel shall promptly convene a
                  hearing, at which time each Party shall have an agreed upon
                  time to argue and present witnesses in support of its final
                  proposal.

            (b)   GOVERNING LAW. In the event the arbitrators seek the guidance
                  of the law of any jurisdiction, the laws of Germany shall
                  govern.

            (c)   LANGUAGE. The language of the proceedings shall be English.

            (d)   NOTIFICATION OF DECISION. The arbitrators shall make their
                  decision known to both Parties as quickly as possible by
                  delivering written notice of their decision to both Parties.
                  The Parties shall agree in writing to comply with the proposal
                  selected by the arbitration panel within five (5) days of
                  receipt of notice of such selection. The decision of the
                  arbitrators shall be final and binding on the Parties, and
                  specific performance may be ordered by any court of competent
                  jurisdiction.

            (e)   COSTS. The Parties shall bear their own costs in preparing for
                  the arbitration. The costs of the arbitrators shall be equally
                  divided between the Parties.

                               10. MISCELLANEOUS

10.1 NOTICES.

All notices under this Agreement shall be in writing mailed via certified mail,
return receipt requested, courier, or facsimile transmission addressed as
follows, or to such other address as may be designated from time to time:

            If to MILTENYI:  Miltenyi Biotec GmbH
                             Friedrich-Ebert-Str. 68
                             D-51429 Bergisch Gladbach
                             Germany
                             Attn: Stefan Miltenyi
                             FAX: +49 2204 85197

            With a copy to:  Miltenyi Biotec GmbH
                             Friedrich-Ebert-Str. 68
                             D-51429 Bergisch Gladbach
                             Germany

                                      -16-
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CONFIDENTIAL

                             Attn: General Counsel
                             Fax: +49 2204 85197

             If to VIACELL:  ViaCell, Inc.
                             245 First Street, Fifteenth Floor
                             Cambridge, MA 02142
                             Attn: Marc Beer
                             Fax: +1 617 914 3855

            With a copy to:  Ropes & Gray
                             One International Place
                             Boston, MA 02110
                             USA
                             Attn: Marc Rubenstein
                             Fax: +1 617 951-7050

      Notices shall be deemed given as of the date received. If facsimile
transmission is used, an additional means of notification shall be used,
however, notice shall be deemed to be given as of the date the facsimile
transmission was received.

10.2 GOVERNING LAW AND JURISDICTION. This Agreement shall be governed by and
construed in accordance with the laws of Germany, without regard to the
application of principles of conflicts of law.

10.3 BINDING EFFECT. Except as provided for in Section 10.14, as of the
Effective Date, this Agreement shall be binding upon and inure to the benefit of
the Parties and their respective legal representatives, successors and permitted
assigns.

10.4 HEADINGS. Section and subsection headings are inserted for convenience of
reference only and do not form a part of this Agreement.

10.5 COUNTERPARTS. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original.

10.6 AMENDMENT; WAIVER. This Agreement may be amended, modified, superseded or
canceled, and any of the terms may be waived, only by a written instrument
executed by each Party or, in the case of waiver, by the Party or Parties
waiving compliance. The delay or failure of any Party at any time or times to
require performance of any provisions shall in no manner affect the rights at a
later time to enforce the same. No waiver by any Party of any condition or of
the breach of any term contained in this Agreement, whether by conduct, or
otherwise, in any one or more instances, shall be deemed to be, or considered
as, a further or continuing waiver of any such condition or of the breach of
such term or any other term of this Agreement.

10.7 NO THIRD PARTY BENEFICIARIES. Except as set forth in Sections 8.1 and 8.2
hereof, no Third Party, including any employee of any Party to this Agreement,
shall have or acquire any rights by reason of this Agreement.

                                      -17-
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CONFIDENTIAL

10.8 ASSIGNMENT. Neither this Agreement nor any obligation of a party hereunder
may be assigned by either Party without the consent of the other, except that
each Party may assign this Agreement and the rights, obligations and interests
of such Party, in whole or in part, to any of its Affiliates.

10.9 FORCE MAJEURE. Neither MILTENYI or VIACELL shall be liable for failure of
or delay in performing obligations set forth in this Agreement, and neither
shall be deemed in breach of its obligations, if such failure or delay is due to
natural disasters or any causes beyond the reasonable control of MILTENYI or
VIACELL. In event of such force majeure, the Party affected thereby shall use
reasonable efforts to cure or overcome the same and resume performance of its
obligations thereunder.

10.10 INTERPRETATION. The Parties hereto acknowledge and agree that : (i) each
Party and its counsel reviewed and negotiated the terms and provisions of this
Agreement and have contributed to its revision; (ii) the rule of construction to
the effect that any ambiguities are resolved against the drafting Party shall
not be employed in the interpretation of this Agreement; and (iii) the terms and
provisions of this Agreement shall be construed fairly as to all Parties hereto
and not in a favor of or against any Party, regardless of which Party was
generally responsible for the preparation of this Agreement.

10.11 INTEGRATION: SEVERABILITY. This Agreement is the sole agreement with
respect to the subject matter hereof and supersedes all other agreements and
understandings between the Parties with respect to same. If any provision of
this Agreement is or becomes invalid or is ruled invalid by any court of
competent jurisdiction or is deemed unenforceable, it is the intention of the
Parties that the remainder of the Agreement shall not be affected.

10.12 RELATIONSHIP OF THE PARTIES. Each of the Parties shall be independent
contractors with respect to each other, and the relationship established hereby
shall not constitute a partnership, joint venture, or agency. No Party shall
have the authority to make statements, representations or commitments of any
kind, or take any action, which shall be binding on any other Party, without the
express, prior, written consent of the Party to be so bound.

10.13 FURTHER ASSURANCES. Each of MILTENYI and VIACELL agrees to duly execute
and deliver, or cause to be duly executed and delivered, such further
instruments and do and cause to be done such further acts and things, including
without limitation, the filing of such additional assignments, agreements,
documents and instruments, that may be necessary or as the other Party hereto
may at any time and from time to time reasonably request in connection with this
Agreement or to carry out more effectively the provisions and purposes of, or to
better assure and confirm unto such other Party its rights and remedies under,
this Agreement.

10.14 SIMULTANEOUS EXECUTION OF THE AGREEMENT AND THE SUPPLY AGREEMENT. The
Parties agree that they will execute and they will execute this Agreement
simultaneously with the Supply Agreement and neither the Agreement nor the
Supply Agreement shall become binding on any Party unless the Agreement and the
Supply Agreement are executed by all parties to those Agreements.

                                      -18-
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CONFIDENTIAL

      IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
by their duly authorized representatives.

MILTENYI BIOTEC GMBH

By: /s/ Stefan Miltenyi
    _______________________
Name: Stefan Miltenyi
Title: Geschaftsfuhrer

Date: ______________________

VIACELL, INC.

By: /s/ Marc Beer
    _______________________
Name: Marc Beer
Title: Chief Executive Officer

Date: ______________________

                                      -19-
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                                    EXHIBIT A

[**]

                                      -20-

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