Document:

Exhibit 10.69.1

 

AMENDMENT #1 To AGREEMENT

 

BETWEEN

 

ADVANCED CELL TECHNOLOGY

 

AND THE

 

UNIVERSITY OF MASSACHUSETTS/AMHERST

 

This
is amendment #1 to this existing agreement dated 12-01-99 by and between the above named parties.

 

The
parties agree to the changes as follows:

 

ARTICLE
6.l. Term. This Agreement shall commence on September 1, 2000 and
shall remain in effect for a period of 3 years, unless
earlier terminated in accordance with the provisions of this Agreement.

 

EXHIBIT
B. Sponsor Contributions. Please amend this Exhibit to include the following
payment schedule:

 

Sponsor
will make payments of $1061.60 on the 1st of each month of the project period: 9/1/2000 through 8/31/2003.

 

All
other terms and conditions of the Agreement and Amendment #1, shall remain in
effect unless otherwise specifically provided herein. IN WITNESS WHEREOF, the
parties hereto have executed the Agreement Amendment as of 12-12-00, 2000.

 

THE
UNIVERSITY OF MASSACHUSETTS

 

 

By

Carol
Sprague, Acting Associate Director

Office
of Grant and Contract Administration

 

 

	
  ADVANCED
  CELL TECHNOLOGY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Jose Cibelli

  	
   12-12-00Exhibit
10.70

 

SPONSORED RESEARCH AGREEMENT

— INVENTIONS AND MATERIALS —

 

This Agreement, effective as
of August 1, 1999 (the “Effective Date”), is between the University of
Massachusetts (“Institution”), a public institution of higher education of the
Commonwealth of Massachusetts, as represented by its Amherst Campus and
Advanced Cell Technology, Inc. (“Sponsor”), a Delaware corporation.

 

R E C I T A L S

 

WHEREAS,
the National Institutes of Health (“NIH”) has awarded to Sponsor a “phase I”
grant (No. 1 R43 NS38382 01) in support of a research project designed to
create cloned cattle lacking the prion gene; and

 

WHEREAS,
Sponsor desires to subcontract to Institution certain research described in the
grant;

 

NOW,
THEREFORE, Institution and Sponsor hereby agree as follows:

 

1. Definitions.

 

1.1
“Confidential Information” means any confidential or proprietary
information furnished by one party (the “Disclosing Party”) to the other party
(the “Receiving Party”) in connection with the performance of the Research Project,
provided that such information is specifically designated as confidential. Such
Confidential Information may include, without limitation, trade secrets,
know-how, inventions, technical data or specifications, testing methods, and
research and development activities.

 

1.2.
“Inventions” means any potentially patentable invention based on the
Research Results which is (i) conceived during the term of this Agreement by
employees of Institution or Sponsor, or both, and (ii) reduced to practice
either during the term of this Agreement or thereafter within a period of six
(6) months.

 

1.3.
“Materials” means any tangible biological, chemical, or physical
materials. In the case of biological materials, the term “Materials” shall also
include tangible materials that are routinely produced through use of the
original materials, including, for example, any progeny derived from a cell
line, monoclonal antibodies produced by hybridoma cells, DNA or RNA replicated
from isolated DNA or RNA, recombinant proteins produced through use of isolated
DNA or RNA, and recombinant proteins isolated from a cell extract or
supernatant by non-proprietary affinity purification methods.

 

1.4. “Patent Rights” means all United States and foreign patent
applications claiming an Invention, including any divisional, continuation,
continuation-in-part (to the extent that the claims are directed to an
Invention), and foreign equivalents thereof, as well as any patents issued
thereon or reissues or reexaminations thereof. “Institution Patent Rights”
means Patent

 

 

Rights
claiming Inventions that are conceived and reduced to practice solely by
employees of Institution, as determined under the patent laws of the United
States, and assigned to Institution. “Joint Patent Rights” means Patent
Rights claiming Inventions that are conceived or reduced to practice jointly by
employees of Institution and employees or consultants of Sponsor, as determined
under the patent laws of the United States, and assigned to Institution or
Sponsor.

 

1.5.
“Principal Investigator” means an employee of Institution who has
primary responsibility for the performance of the Research Project. The
Principal Investigator is identified in Section 2.1. below.

 

1.6.
“Project Materials” means Materials that are discovered or developed in
the performance of the Research Project.

 

1.7.
“Proprietary Materials” means any proprietary Materials other than
Project Materials that are furnished by one party (the “Supplier”) to the other
party (the “Recipient”) in connection with the performance of the Research
Project.

 

1.8.
“Research Project” means the research project described on Exhibit A
(“Description of Research Project”), which Institution agrees to perform under
the terms and conditions of this Agreement.

 

1.9.
“Research Results” means all data, test results, laboratory notes,
techniques, know-how, and any other research results that are obtained in the
performance of the Research Project. The term “Research Results” shall not
include any Project Materials, patentable inventions, copyrighted or
copyrightable works, trademarks or service marks, or other intellectual
property based on the Research Results. As a matter of policy, Institution
ordinarily will not assert trade secret protection for Research Results.

 

1.10.
“Technical Representative” means an individual designated by Sponsor as
its principal technical representative for consultation and communications with
Institution and the Principal Investigator. The Technical Representative is
identified in Section 2.1. below.

 

2.
Performance of Research Project.

 

2.1. Principal Investigator and Technical Representative. The
Principal Investigator shall be Deborah J. Good. If Deborah J. Good ceases to
serve as Principal Investigator for any reason, Institution will promptly
notify Sponsor, and Institution and Sponsor shall use good faith efforts to
identify a mutually acceptable replacement within sixty (60) days. If a
suitable replacement Principal Investigator cannot be identified within the
sixty-day period, Sponsor shall have right to terminate this Agreement as
provided in Section 6.2. The Technical Representative shall be Jose Cibelli.
Sponsor may change its Technical Representative upon thirty (30) days written notice
to Institution.

 

2.2. Performance of Research Project. Institution shall use
reasonable efforts to complete the Research Project; however, Institution makes
no warranties regarding the completion of the Research Project or the
achievement of any particular results. The Principal Investigator shall

 

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direct
the Research Project and shall control the manner of its performance. The
Technical Representative may consult informally with the Principal
Investigator, both in person and by telephone, regarding the performance of the
Research Project. The Technical Representative shall have reasonable access to
Institution facilities where the Research Project is being conducted, but the
exact time and manner of such access shall be determined by the Principal
Investigator.

 

2.3.
Records, Materials, and Reports. The Principal Investigator will prepare
and maintain records containing all Research Results, including laboratory
notebooks maintained in accordance with customary academic practice. During the
term of this Agreement, and at the convenience of the Principal Investigator,
the Technical Representative shall have reasonable access to such research
records, and the Principal Investigator agrees to furnish Sponsor, upon
request, with reasonable amounts of any Project Materials, subject to
availability. Within ninety (90) days after the expiration or termination of
this Agreement, the Principal Investigator shall deliver to Sponsor a final
report describing all significant Research Results in reasonable detail;
provided, however, that the Principal Investigator may extend this ninety-day
deadline with the consent of Sponsor, which consent shall not be unreasonably
withheld.

 

3.
Contributions of Sponsor.

 

3.1.
Contributions to Research Project. Sponsor shall contribute to the Research
Project the financial support, equipment, personnel, technology, and other
resources listed on Exhibit B (“Sponsor Contributions”). Sponsor may
also furnish Institution and the Principal Investigator with certain
Confidential Information and Proprietary Materials, which shall remain the
property of Sponsor. Institution and the Principal Investigator reserve the
right to refuse to accept any Confidential Information or Proprietary Materials
offered by Sponsor.

 

3.2.
Payments to Institution. In consideration of the performance of the
Research Project, Sponsor shall make or shall cause NIH to make, the payments
to Institution in the amounts listed on Exhibit B (“Sponsor
Contributions”). Payments should be made in the name of “University of Massachusetts”
and sent to Controllers Office, 405 Goodell Building, University of Massachusetts,
Amherst, MA 01003. If this Agreement is terminated prior to its expiration for any
reason other than a material breach by Institution (as described in Section 6.3.),
then on the effective date of such termination, Sponsor shall pay Institution
the entire amount of any uncancellable financial commitments that Institution
intended to pay through Sponsor Contributions, including without limitation (i)
salaries for appointed employees for the remainder of their term of appointment
(e.g., postdoctoral fellows) and stipends for graduate students and (ii)
Institution expenses previously incurred for equipment, travel, and associated
indirect costs. Upon the request of Sponsor made within thirty (30) days after
the expiration or termination of this Agreement, Institution shall furnish
Sponsor with a final accounting of all expenses incurred in connection with the
Research Project and all funds received from Sponsor pursuant to this Section
3.2., together with a check payable to Sponsor in the amount of any unexpended
and uncommitted funds, failing which Institution shall retain any unexpended
funds.

 

3.3.
Use of Funds. Institution shall monitor expenditures, in accordance with
its institutional policies, to ensure that the funds provided by Sponsor are
spent in connection with

 

3

 

the performance of the
Research Project.

 

3.4.
Ownership of Equipment. Upon termination or expiration of this Agreement,
Institution shall retain title to all equipment purchased or fabricated by
Institution with funds provided by Sponsor.

 

4. Confidential
Information; Proprietary Materials; Publications.

 

4.1.
Confidential Information.

 

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

 

(b)
Obligations. During the term of this Agreement and thereafter for a period
of five (5) years, the Receiving Party shall (i) maintain all Confidential
Information in strict confidence, except that the Receiving Party may disclose
or permit the disclosure of any Confidential Information to its directors,
officers, employees, consultants, and advisors who are obligated to maintain
the confidential nature of such Confidential Information and who need to know
such Confidential Information for the performance of the Research Project; (ii)
use all Confidential Information solely for the performance of the Research
Project; and (iii) allow its directors, officers, employees, consultants, and
advisors to reproduce the Confidential Information only to the extent necessary
for the performance of the Research Project, with all such reproductions being
considered Confidential Information.

 

(c)
Exceptions. The obligations of the Receiving Party under Section 4.1.(b)
above shall not apply to the extent that the Receiving Party can demonstrate
that certain Confidential Information (i) was in the public domain prior to the
time of its disclosure under this Agreement; (ii) entered the public domain
after the time of its disclosure under this Agreement through means other than
an unauthorized disclosure resulting from an act or omission by the Receiving Party;
(iii) was independently developed or discovered by the Receiving Party without
use of the Confidential Information; (iv) is or was disclosed to the Receiving
Party at any time, whether prior to or after the time of its disclosure under
this Agreement, by a third party having no fiduciary relationship with the
Disclosing Party and having no obligation of confidentiality with respect to
such Confidential Information; or (v) is required to be disclosed to comply
with applicable laws or regulations, or with a court or administrative order,
provided that the Disclosing Party receives reasonable prior written notice of
such disclosure.

 

(d)
Ownership and Return. The Receiving Party acknowledges that the
Disclosing Party (or any third party entrusting its own information to the
Disclosing Party) claims ownership of its Confidential Information in the
possession of the Receiving Party. Upon the expiration or termination of this Agreement,
and at the request of the Disclosing Party, the Receiving Party shall return to
the Disclosing Party all originals, copies, and summaries of documents,
materials,

 

4

 

and other tangible
manifestations of Confidential Information in the possession or control of the
Receiving Party, except that the Receiving Party may retain one copy of the
Confidential Information in the possession of its legal counsel solely for the
purpose of monitoring its obligations under this Agreement.

 

4.2.
Proprietary Materials.

 

(a)
Limited Use and Transfer. The Recipient shall use Proprietary Materials
only for the performance of the Research Project. The Recipient shall use the
Proprietary Materials only in compliance with all applicable federal, state,
and local laws and regulations. The Recipient shall not use the Proprietary
Materials in any in vivo experiments on human subjects. The Recipient shall
not transfer any Proprietary Materials to any third party without the prior
written consent of the Supplier.

 

(b)
Warranty Disclaimer. Any Proprietary Materials that are furnished to a
party pursuant to this Agreement are provided for experimental purposes and may
have hazardous properties. THE SUPPLIER MAKES NO REPRESENTATIONS, AND EXTENDS
NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO ANY PROPRIETARY
MATERIALS. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF PROPRIETARY MATERIALS WILL
NOT INFRINGE ANY PATENT RIGHTS OR OTHER PROPRIETARY RIGHTS OF A THIRD PARTY.

 

(c)
Ownership and Return. The Recipient acknowledges that the Supplier (or
any third party entrusting its Materials to the Supplier) claims ownership of
its Proprietary Materials in the possession of the Recipient. The Recipient
agrees to cause its employees to execute and deliver any documents of
assignment or conveyance to effectuate the ownership rights of the Supplier in Proprietary
Materials. Upon the expiration or termination of this Agreement, the Recipient
shall at the instruction of Supplier either destroy or return any unused
Proprietary Materials.

 

4.3.
Publications. Institution and its employees will be free to publicly
disclose (through journals, lectures, or otherwise) the Research Results,
provided that the Principal Investigator shall have provided a copy of the
proposed disclosure to Sponsor at least sixty (60) days prior to the submission
of any written publication and at least thirty (30) days prior to any oral public
disclosure (the “Review Period”) to allow Sponsor to determine whether any
Invention or its Confidential Information would be disclosed. The parties
expressly agree that research grant proposals submitted to federal, state, or
local agencies or non-profit organizations shall not be subject to review under
this Section. If Sponsor reasonably determines that the proposed disclosure
would reveal an Invention or Sponsor Confidential Information, then Sponsor
shall notify Institution and the Principal Investigator of such determination
and its basis prior to the expiration of the Review Period. With respect to
disclosure of an Invention, upon receipt of timely notice by Sponsor, the
Principal Investigator agrees to delay submission of the written publication or
presentation of the oral public disclosure until one of the following events
occurs: (i) Sponsor and Institution agree that no patentable Invention exists;
(ii) Institution or Sponsor files a patent application claiming the relevant
Invention pursuant to Article 5; (iii) Sponsor, Institution, and Principal
Investigator jointly agree upon deletions that prevent disclosure of any

 

5

 

Invention;
or (iv) a period of sixty (60) days elapses commencing with the effective date
of notice to Institution. With respect to disclosure of Sponsor Confidential
Information, upon receipt of timely notice by Sponsor, the Principal
Investigator agrees to delete such information from any proposed disclosure.

 

5.
Intellectual Property.

 

5.1. Assignment of Rights in Inventions and Project Materials. The Principal Investigator agrees to assign
to Institution all rights in Inventions and commercial rights in Project
Materials. The Principal Investigator shall certify that every person who may
be involved in the Research Project shall have signed the University
Participation Agreement, which assigns to Institution all rights in Inventions
and commercial rights in Project Materials. Sponsor represents and warrants that
all of its employees and consultants who may be involved in the Research
Project shall have agreed to assign to Sponsor all rights in Inventions and all
commercial rights in Project Materials.

 

5.2.
Ownership of Patent Rights and Project Materials. In accordance with United
States patent law, Institution shall have sole ownership of all Institution
Patent Rights and Institution and Sponsor shall have joint, undivided ownership
of all Joint Patent Rights. Institution shall have sole ownership of commercial
rights in all Project Materials not claimed in the Patent Rights; however, if a
Project Material incorporates one or more Sponsor Proprietary Materials, Institution
may not exploit commercial rights in that Project Material without the written
consent of Sponsor.

 

5.3.
Notice of Inventions and Project Materials. The Principal Investigator
shall promptly disclose to Institution the conception or reduction to practice
of any Invention and the development or discovery of any commercially valuable
Project Material that is not otherwise disclosed as an Invention. Institution
and Sponsor shall provide prompt written notice to the other of the internal
disclosure by its employees of any Invention. Institution and Sponsor shall discuss
whether to obtain Patent Rights for the Invention and whether such Patent
Rights would constitute Institution Patent Rights or Joint Patent Rights.
Institution shall provide prompt written notice to Sponsor of the internal
disclosure of any commercially valuable Project Material that is not otherwise disclosed
as an Invention.

 

5.4.
Responsibility for Patent Rights.

 

(a)
Primary Responsibility with Institution. Institution shall have primary
responsibility, at the expense of Sponsor, for the preparation, filing,
prosecution, and maintenance of all Institution Patent Rights and Joint Patent
Rights, using patent counsel reasonably acceptable to Sponsor. Institution
shall consult with Sponsor as to the preparation, filing, prosecution, and maintenance
of all such Patent Rights reasonably prior to any deadline or action with the
U.S. Patent & Trademark Office or any foreign patent office and shall
furnish Sponsor with copies of all relevant documents reasonably in advance of
such consultation.

 

(b)
Secondary Responsibility with Sponsor. In the event that Institution
desires to abandon any patent or patent application within the Patent Rights,
or if Institution declines to

 

6

 

assume
responsibility for obtaining patent protection for any Invention, Institution
shall provide Sponsor with reasonable prior written notice of such intended
abandonment or decline of responsibility, and Sponsor shall have the right, at
its expense, to prepare, file, prosecute, and maintain the relevant Patent
Rights.

 

(c)
Cooperation. Institution and Sponsor shall cooperate fully in the
preparation, filing, prosecution, and maintenance of all Institution Patent
Rights and Joint Patent Rights. Such cooperation includes, without limitation,
(i) promptly executing all papers and instruments or requiring employees of
Institution or Sponsor to execute such papers and instruments as reasonable and
appropriate so as to enable Institution or Sponsor to file, prosecute, and
maintain such Patent Rights in any country; and (ii) promptly informing the
other party of matters that may affect the preparation, filing, prosecution, or
maintenance of any such Patent Rights.

 

(d)
Payment of Expenses. Within thirty (30) days after Institution invoices
Sponsor, Sponsor shall reimburse Institution for all reasonable patent-related
expenses incurred by Institution pursuant to Subsection 5.4(a). Institution
shall have no obligation to reimburse Sponsor for expenses incurred by Sponsor
pursuant to Subsection 5.4(b). Sponsor may elect, upon sixty (60) days written
notice to Institution, to cease payment of the expenses associated with
obtaining or maintaining patent protection for one or more Patent Rights in one
or more countries. In such event, Sponsor shall lose all rights under this
Agreement with respect to such Patent Rights in such countries.

 

5.5.
Option for Exclusive License. Institution hereby grants Sponsor a first
option to obtain a worldwide, royalty-bearing, exclusive license (with the
right to sublicense) under its commercial rights in any Institution Patent
Rights and Joint Patent Rights (the “Option Right”). Sponsor may exercise the
Option Right with respect to a particular Patent Right or Project Material (if
any) by written notice to Institution together with payment of Ten Thousand
Dollars ($10,000.00) license fee for each invention in which Institution claims
rights, both of which must be received by Institution not later than sixty (60)
days after the disclosure to Sponsor of the relevant Invention (the “Option
Period”). If Sponsor elects not to exercise the Option Right, or fails to
exercise the Option Right during the Option Period, Institution shall be free
to license its commercial rights under the relevant Patent Right to any third
party. If Sponsor does elect to exercise the Option Right, Institution and
Sponsor shall negotiate in good faith a license agreement containing
commercially reasonable terms and conditions. If Institution and Sponsor are
unable to reach agreement within six (6) months after Sponsor exercised the
Option Right (the “Negotiation Period”), Institution may offer its commercial
rights in the relevant Patent Right to any third parties; provided, however,
that for a period of one (1) year after the Negotiation Period expires,
Institution may only offer such rights to third parties on terms and conditions
that are not more favorable than the last offer made by Institution to Sponsor,
unless Institution first provides Sponsor with written notice of the more
favorable offer and Sponsor either (i) declines in writing to accept the offer
or (ii) fails to respond to the offer within thirty (30) days after receiving
such notice.

 

5.6.
Use of Research Results and Project Materials. Each party shall have the
unrestricted right to use Research Results for any purpose and to use Project
Materials for internal research (but not in a commercial product or in
connection with a commercial service); provided,

 

7

 

however, that in the case of
Sponsor, such use does not infringe any claim of a patent application or an
issued patent included in the Institution Patent Rights for which Sponsor has
failed to obtain a license as provided in Section 5.5. above. If Sponsor
desires to obtain a license under the commercial rights of Institution in any
Project Materials, Institution agrees to discuss the possibility of granting
such a license, provided that such commercial rights are available for
licensing when Sponsor makes its request.

 

5.7.
Copyrightable Works. Institution or its employees shall have sole ownership
of any copyrighted or copyrightable works (including reports and publications)
that are created by Institution employees in the performance of the Research
Project. Institution and the Principal Investigator hereby grant Sponsor an
irrevocable, royalty-free, nontransferable, non-exclusive right to copy and
distribute any research reports furnished to Sponsor under this Agreement and
to prepare, copy, and distribute derivative works based on these research
reports.

 

6. Term and Termination.

 

6.1.
Term. This Agreement shall commence on the Effective Date and shall
remain in effect until completion of the Research Project, unless earlier
terminated in accordance with the provisions of this Agreement.

 

6.2.
Loss of Principal Investigator. If the Principal Investigator leaves
Institution or otherwise terminates his involvement in the Research Project,
and if Institution and Sponsor fail to identify a mutually acceptable
substitute as provided in Section 2.1.,
Sponsor may terminate this Agreement upon sixty (60) days prior written
notice to Institution.

 

6.3.
Termination for Default. In the event that either party commits a
material breach of its obligations under this Agreement and fails to cure that
breach within sixty (60) days after receiving written notice thereof, the other
party may terminate this Agreement immediately upon written notice to the party
in breach. If the alleged breach involves nonpayment of any amounts due
Institution under this Agreement, Sponsor shall have only one opportunity to
cure a material breach for which it receives notice as described above; any
subsequent material breach by Sponsor will entitle Institution to terminate
this Agreement immediately upon written notice to Sponsor, without the
sixty-day cure period.

 

6.4.
Force Majeure. Neither party will be responsible for delays resulting
from causes beyond the reasonable control of such party, including without
limitation fire, explosion, flood, war, strike, or riot, provided that the
nonperforming party uses commercially reasonable efforts to avoid or remove
such causes of nonperformance and continues performance under this Agreement
with reasonable dispatch whenever such causes are removed.

 

6.5.
Effect of Termination. The following provisions shall survive the
expiration or termination of this Agreement: Articles 1, 4, and 7; Sections 2.3.
(obligation to deliver final report), 3.2. (obligation to deliver final
accounting), 6.5., 8.2., 8.3., 8.5., 8.14., and 8.15. In addition, the
provisions of Article 5 shall survive termination of this Agreement, as
necessary to effectuate the rights of Sponsor, unless Institution has
terminated this Agreement because of a material breach by Sponsor pursuant to
Section 6.3.

 

8

 

7. Dispute Resolution.

 

7.1.
Procedures Mandatory. The parties agree that any dispute arising out of
or relating to this Agreement shall be resolved solely by means of the
procedures set forth in this Article, and that such procedures constitute
legally binding obligations that are an essential provision of this Agreement;
provided, however, that all procedures and deadlines specified in this Article
may be modified by written agreement of the parties. If either party fails to
observe the procedures of this Article, as modified by their written agreement,
the other party may bring an action for specific performance in any court of
competent jurisdiction.

 

7.2.
Dispute Resolution Procedures.

 

(a)
Negotiation. In the event of any dispute arising out of or relating to
this Agreement, the affected party shall notify the other party, and the
parties shall attempt in good faith to resolve the matter within ten (10) days
after the date such notice is received by the other party (the “Notice Date”).
Any disputes not resolved by good faith discussions shall be referred to senior
executives of each party, who shall meet at a mutually acceptable time and
location within thirty (30) days after the Notice Date and attempt to negotiate
a settlement.

 

(b)
Mediation. If the matter remains unresolved within sixty (60) days after
the Notice Date, or if the senior executives fail to meet within thirty (30)
days after the Notice Date, either party may initiate mediation upon written
notice to the other party, whereupon both parties shall be obligated to engage
in a mediation proceeding under the then current Center for Public Resources (“CPR”)
Model Procedure for Mediation of Business Disputes, except that specific provisions
of this Section shall override inconsistent provisions of the CPR Model Procedure.
The mediator will be selected from the CPR Panels of Neutrals. If the parties
cannot agree upon the selection of a mediator within ninety (90) days after the
Notice Date, then upon the request of either party, the CPR shall appoint the
mediator. The parties shall attempt to resolve the dispute through mediation
until one of the following occurs: (i) the parties reach a written settlement;
(ii) the mediator notifies the parties in writing that they have reached an
impasse; (iii) the parties agree in writing that they have reached an impasse;
or (iv) the parties have not reached a settlement within one hundred and twenty
(120) days after the Notice Date.

 

(c)
Trial Without Jury. If the parties fail to resolve the dispute through
mediation, or if neither party elects to initiate mediation, each party shall
have the right to pursue any other remedies legally available to resolve the
dispute, provided, however, that the parties expressly waive any right to a
jury trial in any legal proceeding under this Section.

 

7.3.
Preservation of Rights Pending Resolution.

 

(a)
Performance to Continue. Each party shall continue to perform its
obligations under this Agreement pending final resolution of any dispute
arising out or relating to this Agreement; provided, however, that a party may
suspend performance of its obligations during any period in which the other
party fails or refuses to perform its obligations.

 

9

 

(b)
Provisional Remedies. Although the procedures specified in this Article
are the sole and exclusive procedures for the resolution of disputes arising
out of relating to this Agreement, either party may seek a preliminary
injunction or other provisional equitable relief if, in its reasonable
judgment, such action is necessary to avoid irreparable harm to itself or to preserve
its rights under this Agreement.

 

(c)
Statute of Limitations. The parties agree that all applicable statutes
of limitation and time-based defenses (such as estoppel and laches) shall be tolled
while the procedures set forth in Subsections 7.2.(a) and 7.2(b) are pending.
The parties shall take any actions necessary to effectuate this result.

 

8. Miscellaneous.

 

8.1.
Compliance with Law and Policies. Sponsor agrees to comply with
applicable law and the policies of Institution in the area of technology
transfer, and shall promptly notify Institution of any violation that Sponsor
knows or has reason to believe has occurred or is likely to occur.

 

8.2.
Indemnification.

 

(a)
Indemnity. Sponsor shall indemnify, defend, and hold harmless
Institution and its trustees, officers, faculty, students, employees, and
agents and their respective successors, heirs and assigns (the “Indemnitees”),
against any liability, damage, loss, or expense (including reasonable attorneys
fees and expenses of litigation) incurred by or imposed upon any of the Indemnitees
in connection with any claims, suits, actions, demands or judgments arising out
of any theory of liability (including without limitation actions in the form of
tort, warranty, or strict liability and regardless of whether such action has
any factual basis) relating to this Agreement or concerning any product,
process, or service that is made, used, or sold pursuant to any right or license
granted under this Agreement; provided, however, that such indemnification
shall not apply to any liability, damage, loss, or expense to the extent
directly attributable to (i) the negligent activities or intentional misconduct
of the Indemnitees or (ii) the settlement of a claim, suit, action, or demand
by Indemnitees without the prior written approval of Sponsor.

 

(b)
Procedures. The Indemnitees agree to provide Sponsor with prompt written
notice of any claim, suit, action, demand, or judgment for which
indemnification is sought under this Agreement. Sponsor agrees, at its own
expense, to provide attorneys reasonably acceptable to Institution to defend
against any such claim. The Indemnitees shall cooperate fully with Sponsor in
such defense and will permit Sponsor to conduct and control such defense and
the disposition of such claim, suit, or action (including all decisions
relative to litigation, appeal, and settlement); provided, however, that any
Indemnitee shall have the right to retain its own counsel, at the expense of
Sponsor, if representation of such Indemnitee by the counsel retained by
Sponsor would be inappropriate because of actual or potential differences in
the interests of such Indemnitee and any other party represented by such
counsel. Sponsor agrees to keep Institution informed of the progress in the
defense and disposition of such claim and to consult with Institution with
regard to any proposed settlement.

 

10

 

8.3. Publicity
Restrictions. Sponsor shall not use the name of Institution or any of its trustees,
officers, faculty, students, employees, or agents, or any adaptation of such
names, or any terms of this Agreement in any promotional material or other
public announcement or disclosure without the prior written consent of
Institution. The foregoing notwithstanding, Sponsor shall have the right to
disclose such information without the consent of Institution in any prospectus,
offering memorandum, or other document or filing required by applicable securities
laws or other applicable law or regulation, provided that Sponsor shall have
given Institution at least ten (10) days prior written notice of the proposed
text for the purpose of giving Institution the opportunity to comment on such
text.

 

8.4. Warranty Disclaimer.
Institution makes no express warranties and disclaims any implied warranties as
to any matter relating to this Agreement, including without limitation the performance
or results of the Research Project; the availability of legal protection for any
Research Results, Project Materials, Inventions, copyrightable works, or any
other work product of the Research Project; or the validity or enforceability
of any Patent Right that may be obtained pursuant to this Agreement. THERE ARE
NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE FOR ANY PROJECT MATERIALS OR RESEARCH RESULTS, OR THAT THE USE OF
PROJECT MATERIALS OR RESEARCH RESULTS WILL NOT INFRINGE ANY PATENT RIGHTS OR
OTHER PROPRIETARY RIGHTS OF A THIRD PARTY.

 

8.5. Notice to Other
Investigators. The Principal Investigator shall furnish all investigators
involved in the Research Project, including faculty, staff, students, and post-doctoral
fellows, with written notice of their obligations under Articles 4 and 5 of
this Agreement.

 

8.6. Research
Partially Funded by Grants.

 

(a) Federal Government.
To the extent that any Invention has been partially funded by the federal
government, this Agreement and the grant of any rights in such Invention is
subject to and governed by federal law as set forth in 35 U.S.C.

§§ 201-211, and the regulations promulgated thereunder, as amended, or any
successor statutes or regulations. Sponsor and Institution acknowledge that the
referenced laws and regulations reserve to the federal government a
royalty-free, non-exclusive, non-transferable license to practice any government-funded
inventions. If any term of this Agreement fails to conform with such laws and
regulations, the relevant term shall be deemed an invalid provision and modified
by the parties pursuant to Section 8.16.

 

(b) Other
Organizations. To the extent that any Invention has been partially funded
by a non-profit organization or state or local agency, this Agreement and the
grant of any rights in such Invention is subject to and governed by the terms
and conditions of the applicable research grant. If any term of this Agreement
fails to conform with such terms and conditions, the relevant term shall be
deemed an invalid provision and modified by the parties pursuant to Section
8.16. At the request of Sponsor, Institution shall make available to Sponsor
the terms and conditions of any research grants that will partially fund the
Research Project.

 

11

 

8.7. Tax-Exempt Status.
Sponsor acknowledges that Institution, as a public institution of the
Commonwealth of Massachusetts, holds the status of an exempt organization under
the United States Internal Revenue Code. Sponsor also acknowledges that certain
facilities in which the Research Project may be performed were financed through
offerings of tax-exempt bonds. If the Internal Revenue Service determines, or
if counsel to Institution reasonably determines, that any term of this
Agreement jeopardizes the tax-exempt status of Institution or the bonds used to
finance Institution facilities, the relevant term shall be deemed an invalid
provision and modified by the parties pursuant to Section 8.16.

 

8.8. Relationship of
Parties. For the purposes of this Agreement, each party is an independent
contractor and not an agent or employee of the other party. Neither party shall
have authority to make any statements, representations, or commitments of any
kind, or to take any action which shall be binding on the other party, except
as may be explicitly provided for in this Agreement or authorized in writing by
the other party.

 

8.9. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, and all of which together shall be deemed to be one and
the same instrument.

 

8.10. Headings.
All headings are for convenience only and shall not affect the meaning of any
provision of this Agreement.

 

8.11. Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the parties
and their respective permitted successors and assigns.

 

8.12. Assignment.
This Agreement may not be assigned by either party without the prior written
consent of the other party, except that Sponsor may assign this Agreement to an
affiliate or to a successor in connection with the merger, consolidation, or
sale of all or substantially all of its assets or that portion of its business
to which this Agreement relates.

 

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

 

8.14. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws
of the Commonwealth of Massachusetts irrespective of any conflicts of law principles.

 

8.15. Notice. Any
notices required or permitted under this Agreement shall be in writing, shall
specifically refer to this Agreement, and shall be sent by hand, recognized
national overnight courier, confirmed facsimile transmission, confirmed
electronic mail, or registered or certified mail, postage prepaid, return
receipt requested, to the following addresses or facsimile numbers of the
parties:

 

12

 

If to Institution:

 

University of
Massachusetts

408 Goodell Building

Amherst, MA 01003

Attention: Director,
Office of Grant and Contract Administration

Tel: (413) 545-0698

Fax: (413) 545-1202

E-Mail:
ogca@resgs.umass.edu

 

If to Sponsor:

 

Advanced Cell Technology,
Inc.

One Innovation Drive

Worcester, MA

Attention: Jose Cibelli,
Ph.D.

Invoices to: Jose
Cibelli, Ph.D.

Tel: (508) 756-1212

Fax: (508) 756-0931

E-Mail: jcibelli@advanced
cell.com

 

All notices under this
Agreement shall be deemed effective upon receipt. A party may change its
contact information immediately upon written notice to the other party in the
manner provided in this Section.

 

8.16. Severability.
In the event that any provision of this Agreement shall be held invalid or
unenforceable for any reason, such invalidity or unenforceability shall not
affect any other provision of this Agreement, and the parties shall negotiate
in good faith to modify the Agreement to preserve (to the extent possible)
their original intent. If the parties fail to reach a modified agreement within
sixty (60) days after the relevant provision is held invalid or unenforceable,
then the dispute shall be resolved in accordance with the procedures set forth
in Article 7. While the dispute is pending resolution, this Agreement shall be
construed as if such provision were deleted by agreement of the parties.

 

8.17. Entire Agreement.
This Agreement constitutes the entire agreement between the parties with
respect to its subject matter and supersedes all prior agreements or
understandings between the parties relating to its subject matter.

 

13

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed by their duly authorized
representatives as of the date first written above.

 

	
  UNIVERSITY OF MASSACHUSETTS

  	
  ADVANCED CELL TECHNOLOGY, INC.

  
	
  AT AMHERST

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/ Jose Cibelli

  	
   

  
	
  Carol Sprague

  	
  Jose Cibelli

  
	
  Acting Associate Director

  	
  Vice President of Research

  
						

 

 

I hereby acknowledge and
agree to the terms of Articles 4 and 5 and Sections 2.2., 2.3., and 8.5. of
this Agreement, and I reaffirm that I will assign to Institution all of my
right, title, and interest in any Inventions and Project Materials.

 

	
  ACKNOWLEDGED AND AGREED:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Deborah J. Good

  
	
  Principal Investigator

  

 

14

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