Document:

Exhibit
10.1

 

SUBLEASE
AGREEMENT

 

THIS SUBLEASE
AGREEMENT (this “Sublease”), dated November 29,
2005 for reference purposes only, is entered into by and between AVIGEN, INC.,
a Delaware corporation (“Sublandlord”),
and ADVANCED CELL TECHNOLOGY, INC. a Delaware corporation (“Subtenant”).

 

RECITALS

 

A.                                   Sublandlord
leases certain premises consisting of approximately 45,348 square feet in a
building, located at 1201 Harbor Bay Parkway, Alameda, California,
pursuant to that certain Lease Agreement dated February 29, 2000, between
ARE-1201 Harbor Bay, LLC, a Delaware limited liability company, as
landlord (the “Master Landlord”) and Sublandlord,
as tenant (as amended or otherwise modified from time to time, the “Master Lease”), a copy of which is attached as Exhibit A, as more particularly
described therein (the “Premises”).  Capitalized terms used but not defined herein
have the same meanings given in the Master Lease.

 

B.                                     Sublandlord
desires to sublease to Subtenant, and Subtenant desires to sublease from
Sublandlord a portion of the Premises consisting of approximately 15,250 square
feet, and more particularly shown on the layout attached at Exhibit B hereto (“Sublease Premises”) upon the terms and conditions provided
for herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants and conditions contained herein,
Sublandlord and Subtenant covenant and agree as follows:

 

AGREEMENT

 

1.                                      SUBLEASE
PREMISES.  On and subject to the
terms and conditions below, Sublandlord hereby leases to Subtenant, and
Subtenant hereby leases from Sublandlord, the Sublease Premises.

 

2.                                      TERM.  The term of this Sublease (the “Term”) shall commence on December 1, 2005 (the “Commencement Date”), provided Sublandlord has theretofore
obtained the consent of Master Landlord, and shall expire May 31, 2008,
unless sooner terminated pursuant to any provision hereof.

 

3.                                      POSSESSION.  If for any reason Sublandlord cannot deliver
possession of the Sublease Premises to Subtenant on the Commencement Date,
Sublandlord shall not be subject to any liability therefor, nor shall such
failure affect the validity of this Sublease or the obligations of Subtenant
hereunder or extend the term hereof, provided that no rent shall be due
hereunder until possession of the Sublease Premises has been delivered to Subtenant.

 

 

4.                                      RENT.

 

(a)                                  Rent.  Commencing on the Commencement Date and
continuing throughout the term of this Sublease, Subtenant shall pay monthly
rent consisting of Base Rent and Additional Rent (as defined below)
(collectively, “Rent”) to Sublandlord in the
following amounts:

 

(i)                                     Base
Rent.  Subtenant shall pay to
Sublandlord monthly base rent (“Base Rent”)
as follows:

 

	
  Period

  	
   

  	
  Amount

  	
   

  
	
  From the Rent Commencement Date through
  December 31, 2006

  	
   

  	
  $

  	
  26,687.50

  	
   

  
	
  January 1, 2007 – December 31, 2007

  	
   

  	
  $

  	
  28,021.88

  	
   

  
	
  January 1, 2008 – May 31, 2008

  	
   

  	
  $

  	
  29,422.97

  	
   

  

 

(ii)                                  Additional
Rent.  In addition to Base Rent,
Subtenant shall also pay to Sublandlord monthly, Subtenant’s Proportionate
Share of Operating Costs (as that term is defined in Paragraph 5 of the
Master Lease) and all other costs payable by Sublandlord under the Master Lease
(“Additional Rent”).  Additional Rent shall be payable to
Sublandlord as and when payments are due from Sublandlord pursuant to the
Master Lease, but at least five (5) business days prior to the date
Sublandlord must pay such amounts to Master Landlord.  For purposes hereof, “Subtenant’s Proportionate Share”
means thirty-three percent (33%).

 

(iii)                               Direct
Costs.  Subtenant shall further pay
to Sublandlord as Additional Rent an amount estimated by Sublandlord to be the
monthly amount of any costs and expenses applicable to the Sublease Premises
which are paid directly by Sublandlord other than as set forth in Section
4(a)(ii) above (“Direct Costs”),
including, but not limited to, Subtenant’s Telephone Costs plus Subtenant’s
Proportionate Share of utilities, personal property and other insurance,
personal property taxes and real property taxes that relate to the entire
Premises.  At any time, Sublandlord or
Subtenant may cause, at Subtenant’s expense, any utilities to be separately
metered or charged directly to Subtenant by the provider.  Notwithstanding the foregoing, in no event
shall Subtenant’s Direct Costs exceed Forty Eight Thousand and No/100 Dollars
($48,000.00) per month.  Direct Costs
shall also include the Equipment Payments, as provided in Section 11(b) below.

 

(iv)          Subtenant’s Right to Review Direct Costs.  

 

(1)                                  Sublandlord’s
Direct Cost Statement.  No less often than annually,
Sublandlord shall provide Subtenant with a consolidated statement setting forth
the total amount of the estimated payments made by Subtenant in the previous
year and the actual costs allocated to Subtenant pursuant to this
Sublease.  Sublandlord shall deliver such
consolidated statement to Subtenant within the later of ninety (90) days after
the end the previous fiscal year and thirty days after Sublandlord receives a
similar statement from Master Landlord pursuant to the Master Lease.  If the total estimated payments made for the
year are insufficient to meet the costs allocated to Subtenant, then Subtenant
shall pay to Sublandlord such deficit within thirty (30) days after receipt by
Subtenant of notice thereof.  If
Subtenant is due a refund

 

 

for the period, then Sublandlord shall pay such refund to Subtenant
within thirty (30) days after determination thereof.  The provisions of this Section 4(a)(iv) shall
survive the termination of the Sublease.

 

(2)                                  Subtenant’s
Right to Audit Direct Costs.  Not more often than once each calendar year,
Subtenant, upon thirty (30) days advance written notice thereof to Sublandlord,
at Subtenant’s sole cost and expense, may retain an independent certified
public accountant reasonably acceptable to Sublandlord, to review and audit
Sublandlord’s books and records with regard to the Direct Costs for the
Sublease Premises.  If Sublandlord and
Subtenant determine that Subtenant overpaid its share of any Direct Costs,
Sublandlord shall refund to Subtenant the amount of such overpayment within
thirty (30) days.  If Sublandlord
and Subtenant determine that Subtenant underpaid its share of Direct Costs,
Subtenant shall pay to Sublandlord the amount of such deficiency within thirty
(30) days.  If Sublandlord and Subtenant
determine that Subtenant overpaid its share of Direct Costs by more than five
percent (5%) (after the annual reconciliation has occurred as provided in
Section 4(a)(iv)(A) above), Sublandlord shall reimburse Subtenant for the
reasonable actual costs of Subtenant’s audit.

 

(v)                                 Exclusions.  Notwithstanding the foregoing, in the event
any amounts payable by Sublandlord to Master Landlord are (A) due to
Subtenant’s breach of any provision of the Master Lease, (B) due to
Subtenant’s negligence or willful misconduct, or (C) are for the sole
benefit of Subtenant, then such amounts shall not be prorated between
Sublandlord and Subtenant and shall be the sole responsibility of Subtenant.

 

(b)                                 Payment
of Rent.  If the Commencement Date
does not fall on the first day of a calendar month, Rent for the first month
shall be prorated on a daily basis based upon a calendar month.  Rent shall be payable to Sublandlord in
lawful money of the United States, in advance, without prior notice, demand, or
offset, on or before the first day of each calendar month during the term hereof.  All Rent shall be paid to Sublandlord at the
address specified for notices to Sublandlord in Section 15 below.

 

(c)                                  Late
Charges.  Subtenant recognizes that
late payment of any Rent will result in administrative expenses to Sublandlord,
the extent of which additional expenses are extremely difficult and
economically impractical to ascertain. 
Subtenant therefore agrees that if any Rent shall remain unpaid
five (5) days after such amounts are due, the amount of such Rent shall be
increased by a late charge to be paid to Sublandlord by Subtenant in an amount
equal to six percent (6%) of the amount of the delinquent Rent.

 

(d)                                 First
Month’s Rent.  Upon execution of this
Sublease, Subtenant shall deliver to Sublandlord the sum of Twenty-Six Thousand
Six Hundred Eighty Seven and 50/100 Dollars ($26,687.50), representing the
first month’s Base Rent.

 

(e)                                  Abatement.  In the event of any casualty or condemnation
affecting the Sublease Premises, Rent payable by Subtenant shall be abated
hereunder, but only to the extent that Rent under the Master Lease is abated,
and Subtenant waives any right to terminate this Sublease in connection with
such casualty or condemnation except to the extent the Master Lease is also
terminated as to the Premises or any portion thereof.

 

 

5.                                      SECURITY
DEPOSIT.  Upon execution of this
Sublease, Subtenant shall deposit with Sublandlord the sum of Twenty-Six
Thousand Six Hundred Eighty Seven and 50/100 Dollars ($26,687.50) as a security
deposit (“Security Deposit”).  Subtenant hereby grants to Sublandlord a
security interest in the Security Deposit, including, but not limited to,
replenishments thereof.  If Subtenant
fails to pay Rent or other charges when due under this Sublease, or fails to
perform any of its other obligations hereunder, Sublandlord may use or apply
all or any portion of the Security Deposit for the payment of any Rent or other
amount then due hereunder and unpaid, for the payment of any other sum for
which Sublandlord may become obligated by reason of Subtenant’s default or
breach, or for any loss or damage sustained by Sublandlord as a result of
Subtenant’s default or breach.  If
Sublandlord so uses any portion of the Security Deposit, Subtenant shall
restore the Security Deposit to the full amount originally deposited within
ten (10) days after Sublandlord’s written demand.  Sublandlord shall not be required to keep the
Security Deposit separate from its general accounts, and shall have no
obligation or liability for payment of interest on the Security Deposit.  The Security Deposit, or so much thereof as
had not theretofore been applied by Sublandlord, shall be returned to Subtenant
within thirty (30) days of the expiration or earlier termination of this
Sublease, provided Subtenant has vacated the Sublease Premises in the condition
required under the terms of this Sublease. 
Subtenant hereby waives any restrictions on the uses to which the
Security Deposit may be put that are contained in California Civil Code Section
1950.7 or any successor statute.

 

6.                                      [Intentionally
deleted]

 

7.                                      ASSIGNMENT
AND SUBLETTING.  Subtenant may not
assign, sublet, transfer, pledge, hypothecate or otherwise encumber the
Sublease Premises, in whole or in part, or permit the use or occupancy of the
Sublease Premises by anyone other than Subtenant, unless Subtenant has obtained
Sublandlord’s consent thereto (which shall not be unreasonably withheld) and
the consent of Master Landlord. 
Regardless of Sublandlord’s consent, no subletting or assignment shall
release Subtenant of its obligations hereunder. 
Any rent or other consideration payable to Subtenant pursuant to any
sublease or assignment permitted by this paragraph which is in excess of the
Rent payable to Sublandlord pursuant hereto (“Sublease
Bonus Rent”) shall be divided equally between Sublandlord and
Subtenant, after payment to Master Landlord of any amount required to be paid
under the Master Lease.

 

8.                                      TELEPHONE.  Sublandlord
shall provide phone service access, including use of existing phones and
telephone numbers, to Subtenant and use of the Sublandlord’s phone system.  Subtenant shall pay to Sublandlord as part of
the Direct Costs an amount estimated by Sublandlord to be the monthly
amount of any costs and expenses applicable to Subtenant’s use of the phone
system which are paid directly by Sublandlord (“Telephone Costs”), including, but not limited to, local and
long-distance call charges as well as third-party access fees, taxes and charges for moves, adds, and
changes.

 

9.                                      CONDITION
OF SUBLEASE PREMISES.

 

(a)                                  As-Is.  Except as expressly set forth herein,
Subtenant agrees that (i) Sublandlord has made no representations or
warranties of any kind or nature whatsoever respecting the Sublease Premises,
their condition or suitability for Subtenant’s use; and

 

 

(ii) Subtenant agrees to accept the Sublease
Premises “AS IS, WHERE IS,” with all faults, without any obligation
on the part of Sublandlord to modify, improve or otherwise prepare the Sublease
Premises for Subtenant’s occupancy. 
Notwithstanding the foregoing, to Sublandlord’s knowledge, the Building
Systems (as defined in the Master Lease) serving the Sublease Premises, and the
equipment serving the general manufacturing procedures room (the “GMP Room”),
which consists of the dedicated HVAC air handlers and exhaust fans, an autoclave,
the Clean Dry Air (CDA) System, the purified water system, and a steam
generator, are operational; provided, however, Sublandlord makes no
representation or warranty regarding any certification of the GMP Room, the
Building Systems or any other portion of the Sublease Premises, or any future
operation of such equipment and systems, and Subtenant acknowledges that any
certification, replacement of air filters, clean up and routine service and
maintenance of the GMP Room shall be performed by Subtenant, at Subtenant’s
sole cost and expense.

 

(b)                                 Sublandlord’s
Work.  Prior to the Commencement
Date, Sublandlord shall install a door connecting the GMP Lab space and the
Office space as shown on Exhibit B attached hereto.  In addition, the high speed internet and T1
access cable currently serving the office spaces within the Sublease Premises
shall remain in place and may be used by Subtenant.

 

(c)                                  No
Investigation by Sublandlord. 
Sublandlord has not made an independent investigation of the Premises or
determination with respect to the physical and environmental condition of the
Premises including, without limitation, the existence of any underground tanks,
pumps, piping, toxic or hazardous substances on the Premises.  No investigation has been made by Sublandlord
to ensure compliance with the “Americans With Disabilities Act” (“ADA”).  ADA may
require a variety of changes to the Sublease Premises, including potential
removal of barriers to access by disabled persons and provision of auxiliary
aids and services for hearing, vision or speech impaired persons.  Subtenant shall rely solely on its own
investigations and/or that of a licensed professional specializing in the areas
referenced in this Section 9.

 

(d)                                 Decommissioning.  Notwithstanding the foregoing, Subtenant
understands and acknowledges that the Sublease Premises have been used for the
Permitted Use set forth in the Master Lease and that various Hazardous
Materials have been used in accordance with the provisions of Section 30 of the
Master Lease.  Subtenant has been
informed and hereby agrees that Sublandlord may commence the decommissioning
process for the Sublease Premises as it relates to radioactive materials, in
accordance with all Environmental Requirements. 
Subtenant shall cooperate with Sublandlord in connection with such
decommissioning and permit Sublandlord to have reasonable access to the
Sublease Premises for such purposes. 
Subtenant shall not cause or permit any radioactive or other Hazardous
Materials in the Sublease Premises that would interfere with or delay
Sublandlord’s efforts with respect to such decommissioning.

 

10.                               USE.  Subtenant may use the Sublease Premises only
for the purposes as allowed in the Master Lease, and for no other purpose.  Subtenant shall promptly comply with all applicable
statutes, ordinances, rules, regulations, orders, restrictions of record, and
requirements in effect during the term of this Sublease governing, affecting
and regulating the Sublease Premises, including, but not limited to, the use
thereof.  Sublandlord may promulgate
reasonable rules and regulations with respect to the Sublease Premises and
Subtenant agrees to comply with such reasonable rules and regulations following
receipt of written notice of the same. 
Subtenant

 

 

shall not use or permit the use of the Sublease
Premises in a manner that will create waste or a nuisance, interfere with or
disturb other tenants in the Building or violate the provisions of the Master
Lease.  Subtenant shall not hold news
briefings or conduct media tours at the Sublease Premises without the advanced
written consent of Sublandlord. 
Subtenant acknowledges and agrees that the operation and use of the
Sublease Premises may require that Subtenant apply for and receive licenses
and/or permits from various federal, state and local governments, and Subtenant
covenants and agrees to apply for and receive such licenses and/or permits as
are required.  Subtenant shall provide to
Sublandlord copies of any such licenses and/or permits to the extent applicable
to the Sublease Premises.  Subtenant
acknowledges, agrees and covenants that its occupancy, operation and use of
such Sublease Premises and/or its use and handling of animals shall be in
accordance with:  (a) all applicable
state and federal regulations; (b) all licenses and permits that either
Subtenant or Sublandlord has received or receives in the future respecting such
Sublease Premises; and (c) all policies and procedures Sublandlord has
reasonably promulgated respecting such Sublease Premises.  In the event of any disagreement concerning
the interpretation of such licenses, permits, policies and/or procedures, the
determination of the employee of Sublandlord charged with ensuring compliance
with such licenses, permits, policies and/or procedures shall be controlling.

 

11.                               FURNITURE
AND EQUIPMENT.

 

(a)                                  During
the term of this Sublease, Subtenant shall have the right to use the modular
work stations, furniture and equipment identified on Exhibit C
hereto (“Furniture and Equipment”).  Subtenant shall accept such Furniture and
Equipment in its “AS-IS” condition without any representation or warranty by
Sublandlord.  Subtenant’s insurance as
required under this Sublease shall include an all risk property insurance
policy for the Furniture and Equipment for its full replacement value, and
Subtenant shall maintain the Furniture and Equipment in good condition during
the term hereof.  At the expiration or
earlier termination of this Sublease, Subtenant shall, at Sublandlord’s option
(i) return the Furniture and Equipment to Sublandlord in the same
condition received, ordinary wear and tear excepted, or (ii) remove the
Furniture and Equipment from the Sublease Premises, in which case Sublandlord
shall transfer title thereto to Subtenant.

 

(b)                                 Subtenant
shall purchase furniture, office equipment and laboratory equipment identified
on Exhibit D hereto (“Purchased Furniture, Equipment and Supplies”) at a total
cost of Two Hundred Nineteen Thousand Nine Hundred Forty and No/100 Dollars
($219,940.00).  Subtenant shall pay Seven
Thousand Three Hundred Thirty One and 36/100 Dollars ($7,331.36) per month
(each an “Equipment Payment”) to Sublandlord until full payment for the
Purchased Furniture, Equipment and Supplies is made to Sublandlord.  Subtenant shall accept such Furniture,
Equipment and Supplies in its “AS-IS” condition without any representation or
warranty by Sublandlord.  Subtenant’s
insurance as required under this Sublease shall include an all risk property
insurance policy for the Furniture and Equipment for its full replacement
value, and Subtenant shall maintain the Furniture and Equipment in good
condition during the term hereof. 
Sublandlord shall transfer title to the Furniture and Equipment to
Subtenant upon receipt of the full amount of the Furniture and Equipment Cost.  If at the expiration or earlier termination of
this Sublease, Subtenant has not paid to Sublandlord the entire amount of the
Furniture and Equipment Cost, Subtenant shall at Sublandlord’s option
(i) return the Furniture and Equipment to Sublandlord in the same
condition received, ordinary

 

 

wear and tear excepted, or (ii) remove the
Furniture and Equipment from the Sublease Premises, in which case Sublandlord
shall transfer title thereto to Subtenant.

 

12.                               INCORPORATION
OF MASTER LEASE.

 

(a)                                  All
of the terms and provisions of the Master Lease, except as expressly modified
in this Sublease or as provided in subsection (b), are incorporated into
and made a part of this Sublease, and the rights and obligations of the parties
under the Master Lease are hereby imposed upon the parties hereto with respect
to the Sublease Premises, the Sublandlord being substituted for the Landlord in
the Master Lease, the Subtenant being substituted for the Tenant in the Master
Lease provided, however, that the term “Landlord” in the following Paragraphs
of the Master Lease (i) shall mean Master Landlord, not Sublandlord:  the second sentence of the second paragraph
of 7 (Use), 10 (Parking), 11 (Utilities and Services), 13 (Landlord’s Repairs),
the first paragraph of 17 (Insurance), 22 (Assignment and Subletting) and 36
(Limitation on Landlord’s Liability); and (ii) shall mean both Master
Landlord and Sublandlord:  7 (Use) except
as provided above, 9 (Taxes), 12 (Alterations), 14 (Tenant’s Repairs), 15
(Mechanic’s Liens), 16 (Indemnification), 17 (Insurance) excluding the first
paragraph, 20 (Events of Default), 21 (Landlord’s Remedies), 23 (Estoppel
Certificate), 26 (Rules and Regulations), 27 (Subordination), 29 (Waiver of
Jury Trial), 30 (Environmental Requirements), 31 (Tenant’s Remedies/Limitations
of Liability) with respect to the first two paragraphs only,
32 (Inspection and Access), 33 (Security), 34 (Force Majeure), and 38
(Signs; Exterior Appearance).  It is
further understood that where reference is made in the Master Lease to the “Premises,”
the same shall mean the Sublease Premises as defined herein; where reference is
made to the “Commencement Date,” the same shall mean the Commencement Date as
defined herein; and where reference is made to the “Lease,” the same shall mean
this Sublease.  The parties specifically
agree that any provisions relating to any construction obligations of “Landlord”
under the Master Lease with respect to construction that occurred or was to
have occurred prior to the Commencement Date hereof, are hereby deleted.  Sublandlord shall not be liable to Subtenant
for any failure by Master Landlord to perform its obligations under the Master
Lease, nor shall such failure by Master Landlord excuse performance by Subtenant
of its obligations hereunder; provided, however, that Sublandlord shall use its
commercially reasonable efforts to cause Master Landlord to perform its
obligations under the Master Lease. 
Anything in the Master Lease to the contrary notwithstanding, the
liability of Sublandlord for its obligations under this Sublease is limited
solely to Sublandlord’s interest in the Master Lease, and no personal liability
shall at any time be asserted or enforceable against any other assets of
Sublandlord or against Sublandlord’s stockholders, directors, officers or
partners on account of any of Sublandlord’s obligations or actions under this
Sublease.

 

(b)                                 The
following Paragraphs of the Master Lease are not incorporated herein:  1  (Lease of Premises),
2 (Delivery; Acceptance; Commencement Date), 3 (Rent), 4 (Base Rent
Adjustments), 5 (Operating Expenses), 6 (Deposits), 8 (Holding Over),
18 (Restoration), 19 (Condemnation), 24 (Quiet Enjoyment),
35 (Brokers), and 39 (Right to Extend), and Exhibits A
(Description of the Premises), D (Acknowledgement of Commencement Date)
and F (Tenant’s Personal Property).

 

(c)                                  Subtenant
hereby assumes and agrees to perform for Sublandlord’s benefit, during the term
of this Sublease, all of Sublandlord’s obligations with respect to the

 

 

Premises under the Master Lease, except as otherwise
provided herein.  Subtenant shall not
commit or permit to be committed any act or omission which violates any term or
condition of the Master Lease.  Notwithstanding
anything to the contrary contained herein, this Sublease shall be subject and
subordinate to all of the terms of the Master Lease and Master Landlord shall
have all rights in respect of the Master Lease and the Premises as set forth
therein.

 

13.                               INSURANCE.  Subtenant shall be responsible for compliance
with the insurance provisions of the Master Lease.  Such insurance shall insure the performance
by Subtenant of its indemnification obligations hereunder and shall name Master
Landlord and Sublandlord as additional insureds.  All insurance required under this Sublease
shall contain an endorsement requiring thirty (30) days’ written notice
from the insurance company to Subtenant and Sublandlord before cancellation or
change in the coverage, insureds or amount of any policy.  Subtenant shall provide Sublandlord with
certificates of insurance evidencing such coverage prior to the commencement of
this Sublease.

 

14.                               DEFAULT.  In addition to defaults contained in
Paragraph 20 of the Master Lease, failure of Subtenant to make any payment
of Rent when due hereunder shall constitute an event of default hereunder.  If Subtenant’s default causes Sublandlord to
default under the Master Lease, Subtenant shall defend, indemnify and hold
Sublandlord harmless from all damages, costs (including reasonable attorneys’
fees), liability, expenses or claims relating to such default.

 

15.                               NOTICES.  The addresses specified in the Master Lease
for receipt of notices to each of the parties are deleted and replaced with the
following:

 

	
  To Sublandlord at:

  	
   

  	
  Avigen, Inc.

  1301 Harbor Bay Parkway

  Alameda, California 94502

  Attention: Corporate Counsel

  
	
   

  	
   

  	
   

  
	
  To Subtenant at:

  	
   

  	
  Advanced Cell
  Technology, Inc.

  11100 Santa Monica Boulevard, Suite 850

  Los Angeles, CA 90025

  Attention: James G. Stewart, CFO

  
	
   

  	
   

  	
   

  
	
  After Commencement Date:

  	
   

  	
  At the Sublease
  Premises

  

 

16.                               SUBLANDLORD’S
OBLIGATIONS.

 

(a)                                  To
the extent that the provision of any services or the performance of any
maintenance or any other act respecting the Sublease Premises, the Premises or
Building is the responsibility of Master Landlord (collectively, “Master
Landlord Obligations”), upon Subtenant’s request, Sublandlord shall make
reasonable efforts to cause Master Landlord to perform such Master Landlord
Obligations; provided, however, that in no event shall Sublandlord be liable to
Subtenant for any liability, loss or damage whatsoever in the event that Master
Landlord should fail to perform the same, nor shall Subtenant be entitled to
withhold the payment of Rent or

 

 

terminate this Sublease.  It is expressly understood that the services
and repairs which are incorporated herein by reference, including, but not
limited to, the maintenance of all of the structural elements, exterior,
parking and other Common Areas of the Project will in fact be furnished by
Master Landlord and not by Sublandlord. 
In addition, Sublandlord shall not be liable for any maintenance,
restoration (following casualty or destruction) or repairs in or to the
Building or the Sublease Premises, other than its obligation hereunder to use
reasonable efforts to cause Master Landlord to perform its obligations under
the Master Lease.

 

(b)                                 Except
as otherwise provided herein, Sublandlord shall have no other obligations to
Subtenant with respect to the Sublease Premises or the performance of the
Master Landlord Obligations; provided, however, in the event of a termination
for any reason of the Master Lease, Sublandlord shall use commercially
reasonable efforts to negotiate with Master Landlord to accept all of the terms
and conditions of this Sublease, at no cost to Sublandlord.

 

17.                               EARLY
TERMINATION OF SUBLEASE.  If the
Master Lease should terminate prior to the expiration of this Sublease,
Sublandlord shall have no liability to Subtenant on account of such
termination.  To the extent that the
Master Lease grants Sublandlord any discretionary right to terminate the Master
Lease, whether due to casualty, condemnation, or otherwise, Sublandlord shall
be entitled to exercise or not exercise such right in its complete and absolute
discretion.

 

18.                               CONSENT
OF MASTER LANDLORD AND SUBLANDLORD. 
If Subtenant desires to take any action which requires the consent or
approval of Sublandlord pursuant to the terms of this Sublease, prior to taking
such action, including, without limitation, making any alterations, then,
notwithstanding anything to the contrary herein, (a) Sublandlord shall
have the same rights of approval or disapproval as Master Landlord has under
the Master Lease, and (b) Subtenant shall not take any such action until
it obtains the consent of Sublandlord and Master Landlord, as may be required
under this Sublease or the Master Lease. 
This Sublease shall not be effective unless and until any required
written consent of the Master Landlord shall have been obtained.

 

19.                               INDEMNITY.  Subtenant shall indemnify, defend, protect,
and hold Sublandlord and Master Landlord harmless from and against all actions,
claims, demands, costs liabilities, losses, reasonable attorneys’ fees,
damages, penalties, and expenses (collectively, “Claims”)
which may be brought or made against Sublandlord or which Sublandlord may pay
or incur to the extent caused by (i) a breach of this Sublease by
Subtenant, (ii) any violation of law by Subtenant or its employees,
agents, contractors or invitees (collectively, “Agents”)
relating to the use or occupancy of the Sublease Premises, (iii) any act
or omission by Subtenant or its Agents resulting in contamination of any part
or all of the Premises by Hazardous Materials, or (iv) the negligence or
willful misconduct of Subtenant or its Agents.

 

20.                               BROKERS.  Each party hereto represents and warrants
that it has dealt with no broker in connection with this Sublease and the
transactions contemplated herein.  Each
party shall indemnify, protect, defend and hold the other party harmless from all
costs and expenses (including reasonable attorneys’ fees) arising from or
relating to a breach of the foregoing representation and warranty.

 

21.                               SURRENDER
OF SUBLEASE PREMISES.  Subtenant
shall comply with the restoration obligations of Sublandlord as set forth in
Section 6(b) of the Master Lease as well as

 

 

the surrender obligations set forth in Section 12 of
the Master Lease, except as otherwise agreed in writing by Master Landlord and
Sublandlord.  In addition, Subtenant
shall remove any alterations, additions and improvements made by Subtenant
(whether or not made with Sublandlord’s consent), prior to the termination of
the Sublease and restore the Sublease Premises to its prior condition, ordinary
wear and tear excepted, repairing all damage caused by or related to any such
removal, all at Subtenant’s expense. 
Subtenant shall have no right to hold over.

 

22.                               NO
THIRD PARTY RIGHTS.  The benefit of
the provisions of this Sublease is expressly limited to Sublandlord and
Subtenant and their respective permitted successors and assigns.  Under no circumstances will any third party
be construed to have any rights as a third party beneficiary with respect to
any of said provisions.

 

23.                               QUIET
ENJOYMENT.  Subtenant shall
peacefully have, hold and enjoy the Sublease Premises, subject to the terms and
conditions of this Sublease and subject to the Master Lease, provided that
Subtenant pays all rent and performs all of Subtenant’s covenants and
agreements contained herein.

 

24.                               COUNTERPARTS;
ENTIRE AGREEMENT; AMENDMENT.  This
Sublease may be signed in two or more counterparts, each of which shall be
deemed an original and all of which shall constitute one agreement.  This Sublease represents the entire agreement
of Sublandlord and Subtenant with respect to the subject matter hereof.  This Sublease may not be amended except by a
written instrument executed by both parties hereto.

 

25.                               DAMAGE
AND DESTRUCTION.

 

(a)                                  Termination
of Master Lease.  If the Sublease
Premises is damaged or destroyed and Master Landlord or Sublandlord exercises
any option either may have to terminate the Master Lease, if any, this Sublease
shall terminate as of the date of the casualty. 
If the Master Lease imposes any repair or restoration obligation on
Sublandlord, Subtenant shall be responsible for all such obligations as they
relate to the Sublease Premises.  In the
event that after a damage or destruction of the Sublease Premises, where the
time estimated to restore the Sublease Premises exceeds 270 days,
Subtenant and Sublandlord shall each have the right to terminate this Sublease
on written notice to given to the other party within thirty (30) days
after determination of the amount of time to restore the Sublease Premises,
which termination shall be effective as of the date of the casualty.

 

(b)                                 Continuation
of Sublease.  If the Master Lease or
this Sublease is not terminated following any damage or destruction as provided
in subsection (a), this Sublease shall remain in full force and effect,
and Rent shall be abated in accordance with Section 4 of this Sublease.

 

26.                               EMINENT
DOMAIN.  If all or any part of the
Sublease Premises is condemned by eminent domain, inversely condemned or sold
in lieu of condemnation, for any public or a quasi-public use or purpose, this
Sublease may be terminated as of the date of title vesting in such proceeding
by Sublandlord, without first obtaining the consent of Subtenant.  If the Master Lease

 

 

imposes any repair or restoration obligation on
Sublandlord, Subtenant shall be responsible for all such obligations as they
relate to the Sublease Premises.

 

27.                               RELOCATION
OF SUBLEASE PREMISES.  Sublandlord
shall have the right from time to time during the Term to relocate the office
portion of the Sublease Premises to another location within the Premises
retained by Sublandlord, provided that Sublandlord shall pay reasonable costs
(to the extent such costs are submitted in writing to Sublandlord and approved
in writing by Sublandlord prior to such move) of moving Subtenant’s personal
property to the replacement space. 
Sublandlord shall deliver to Subtenant written notice of Sublandlord’s
election to relocate the offices, specifying the new location at least thirty
(30) days prior to the date the relocation is to be effective.  Any such relocation shall be performed during
a weekend.

 

28.                               SUBTENANT’S
RIGHT OF FIRST REFUSAL.  Provided
Subtenant is not then in default of any of its obligations under this Sublease
beyond any applicable cure periods, and that Subtenant shall not have
previously been in default of any of its obligations under this Sublease beyond
applicable cure periods, Subtenant shall have, and Sublandlord hereby grants to
Subtenant, an ongoing right of first refusal (the “Right of First Refusal”) to
sublease the Office and Lab area as delineated in attached Exhibit B (the “First Refusal Space”).  The Right of First Refusal is personal to
Subtenant and may not be exercised by any sublessee or assignee, or by any
other successor or assign, of Subtenant. 
In the event that Sublandlord elects to sublease some or all of the
First Refusal Space, Sublandlord shall give written notice (“Offer Notice”) of such
intent to Subtenant.  If Subtenant
desires to exercise the Right of First Refusal, Subtenant shall deliver written
notice (“Interest Notice”) to Sublandlord within
ten (10) business after receipt of Sublandlord’s Offer Notice.  Thereafter, Sublandlord and Subtenant shall
endeavor in good faith to reach agreement on the terms of the sublease for the
applicable portion of the First Refusal Space. 
If within thirty (30) days after Sublandlord’s receipt of the Interest
Notice Sublandlord and Subtenant are unable to execute a definitive sublease
agreement, or Subtenant shall fail to deliver the Interest Notice within the
required ten (10) day period, the Right of First Refusal shall lapse and Sublandlord
shall thereafter have the right to lease such First Refusal Space to any party
or parties on terms deemed acceptable to Sublandlord in its sole and absolute
discretion.

 

29.                               OPTION
TO RENEW.  Provided Subtenant is not
then in default under this Sublease, if Sublandlord exercises the five (5) year
option to renew the Master Lease set forth in Section 39 of the Master Lease
(the “Master Option to Renew”), Subtenant shall have the option to extend the
Term of this Sublease (“Option”) for an additional five (5) year period on the
terms and conditions set forth herein, except that rent during such extension
term shall be equal to the prorated share of the Base Rent payable by
Sublandlord under the terms of the Master Lease.  The Option shall be personal to Subtenant and
may not be assigned or transferred.  If
Sublandlord does not exercise the Master Option to Renew, Sublandlord shall use
commercially reasonable efforts to assist Subtenant with the negotiation of a
new lease between Subtenant and Master Landlord, at no cost to Sublandlord.

 

 

IN WITNESS WHEREOF, the
parties have executed this Sublease as of the date first written above.

 

	
  SUBLANDLORD:

  	
  AVIGEN, INC.,

  a Delaware corporation 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas J. Paulson

  	
   

  
	
   

  	
  Name:

  	
  Thomas J. Paulson

  	
   

  
	
   

  	
  Title:

  	
  Vice President and CFO

  	
   

  
	
   

  	
   

  
	
  SUBTENANT:

  	
  ADVANCED CELL TECHNOLOGY,
  INC.

  a Delaware corporation 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James G. Stewart

  	
   

  
	
   

  	
  Name:

  	
  James G. Stewart

  	
   

  
	
   

  	
  Title: 

  	
  CFO

  	
   

  
									

 

 

EXHIBIT A

 

MASTER LEASE

 

A
copy of the document that comprises Exhibit A will be provided supplementally
to the Commission upon request

 

 

EXHIBIT B

 

SUBLEASE PREMISES

 

[Graphic depicting a
floor plan for suite 120 of the building located at 1201 Harbor Bay Parkway,
Alameda, Ca.]

 

 

EXHIBIT C

 

FURNITURE AND EQUIPMENT

 

	
  7 desks

  
	
   

  
	
  9 cubicles (approx.
  8x8)

  
	
   

  
	
  2 small conference
  tables

  
	
   

  
	
  9 tall bookshelves

  
	
   

  
	
  16 desk chairs

  
	
   

  
	
  10 guest/other chairs

  
	
   

  
	
  2 break room tables

  
	
   

  
	
  10 wood break room
  chairs

  
	
   

  
	
  1 mail station

  
	
   

  
	
  2 rectangular tables

  
	
   

  
	
  1 storage cabinet

  
	
   

  
	
  4 file cabinets

  

 

EXHIBIT D

 

PURCHASED FURNITURE, EQUIPMENT
AND SUPPLIES

 

	
  Lab
  and Office Equipment

  	
   

  	
  $

  	
  190,398

  	
   

  
	
  Consumables

  	
   

  	
  11,846

  	
   

  
	
  Subtotal

  	
   

  	
  202,244

  	
   

  
	
  Sales
  Taxes (8.75%)

  	
   

  	
  17,696

  	
   

  
	
  TOTAL Purchased

  	
   

  	
  $

  	
  219,940

  	
   

  

 

 

CONSENT TO SUBLEASE

 

This Consent to Sublease (this “Consent”) is made as of November 29, 2005,
by ARE1201 HARBOR BAY, LLC, a
Delaware limited liability company (“Landlord”),
AVIGEN, INC., a Delaware
corporation (“Tenant”), and ADVANCED CELL TECHNOLOGY, INC., a Delaware
corporation (“Sublessee”), with
reference to the following Recitals.

 

RECITALS

 

A.            Landlord and Tenant are parties to
certain Lease Agreement dated February 29, 2000 (the “Lease”), pursuant to which Tenant leases
certain premises at the property located at 1201 Harbor Bay Parkway, Alameda,
California (the “Premises”), and
more particularly described in the Lease.

 

B.            Tenant desires to sublease to Sublessee a
portion of the Premises (the “Subleased
Premises”) more particularly described in and pursuant to the
provisions of that certain Sublease dated November 29, 2005 (the “Sublease”), a copy of which is attached
hereto as Exhibit A.

 

C.            Tenant desires to obtain Landlord’s
consent to the Sublease.

 

NOW, THEREFORE, in consideration of the foregoing and
the agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Landlord hereby
consents tothe sublease of the Subleased Premises to Sublessee, such consent
being subject to and upon the following terms and conditions to which Tenant
and Sublessee hereby agree:

 

1.               All initially
capitalized terms not otherwise defined in this Consent shall have the meanings
set forth in the Lease unless the context clearly indicates otherwise.

 

2.               This Consent shall not
be effective and the Sublease shall not be valid nor shall Sublessee take
possession of the Subleased Premises unless and until Landlord shall have
received: (a) a fully executed counterpart of the Sublease, (b) a fully
executed counterpart of this Consent, and (c) an insurance certificate from
Sublessee, as insured, evidencing no less that the insurance requirements set
forth in the Lease.  Tenant and Sublessee
each represent and warrant to Landlord that the copy of the Sublease attached
hereto as Exhibit A is true, correct and complete.

 

3.               Landlord’s consent set
forth herein is subject to the following additional conditions:

 

a.               Landlord shall have
received and approved any drawings for any proposed alterations, additions or
improvements to be made in connection with Sublessee’s occupancy of the
Subleased Premises; and

 

b.              Landlord shall have
received and approved the list of Hazardous Materials to be used in the
Subleased Premises and all information requested by Landlord relating to
Sublessee’s proposed use of the Subleased Premises.

 

4.               Landlord neither
approves nor disapproves the terms, conditions and agreements contained in the
Sublease, all of which shall be subordinate

 

 

and at all times subject
to: (a) all of the covenants, agreements, terms, provisions and
conditions contained in the Lease, (b) superior ground leases, mortgages, deeds
of trust, or any other hypothecation or security now existing or hereafter
placed upon the real property of which the Premises are a part and to any and
all advances secured thereby and to all renewals, modifications,
consolidations, replacements and extensions thereof, and (c) all matters of
record affecting the Premises and all laws, ordinances and regulations now or
hereafter affecting the Premises.

 

5.               Nothing contained herein
or in the Sublease shall be construed to:

 

a.               modify, waive, impair,
or affect any of the terms, covenants or conditions contained in the Lease
(including Tenant’s obligation to obtain any required consents for any other or
future sublettings), or to waive any breach thereof, or any rights or remedies
of Landlord under the Lease against any person, firm, association or
corporation liable for the performance thereof, or to enlarge or increase
Landlord’s obligations or liabilities under the Lease (including, without limitation,
any liability to Sublessee for any portion of the security deposit held by
Tenant under the Sublease), and all terms, covenants and conditions of the
Lease are hereby declared by each of Landlord and Tenant to be in full force
and effect.

 

b.              require Landlord to
accept any payments from Sublessee on behalf of Tenant, except as expressly
provided in Section 8 hereof.

 

Tenant
shall remain liable and responsible for the due keeping, performance and
observance of all the terms, covenants and conditions set forth in the Lease on
the part of the Tenant to be kept, performed and observed and for the payment
of the annual rent, additional rent and all other sums now and hereafter
becoming payable thereunder for all of the Premises, including, without limitation,
the Subleased Premises.

 

6.               Notwithstanding anything in the Sublease
to the contrary:

 

a.               Sublessee does hereby
expressly assume and agree to be bound by and to perform and comply with, for
the benefit of Landlord, each and every obligation of Tenant under the Lease to
the extent applicable to the Subleased Premises.  Landlord and Sublessee each hereby release
the other, and waive their respective rights of recovery against the other for
direct or consequential loss or damage arising out of or incident to the perils
covered by property insurance carried by such party to the extent of such
insurance and waive any right of subrogation which might otherwise exist in or
accrue to any person on account thereof.

 

b.              Tenant and Sublessee
agree to each of the terms and conditions of this Consent, and upon any
conflict between the terms of the Sublease and this Consent, the terms of this
Consent shall control.

 

c.               The Sublease shall be
deemed and agreed to be a sublease only and not an assignment and there shall
be no further subletting or assignment of all or any portion of the Premises
demised under the Lease (including the Subleased Premises demised by the
Sublease) except in accordance

 

 

with
the terms and conditions of the Lease.

 

d.              If Landlord terminates
the Lease as a result of a default by Tenant thereunder or the Lease terminates
for any other reason, the Sublease shall automatically terminate concurrently
therewith; provided, however, if Landlord elects, in its sole and absolute
discretion and without obligation, exercisable by giving written notice to
Sublessee within 7 days of such termination (a “Reinstatement Notice”), to
reinstate the Sublease and Sublessee shall attorn to Landlord, in which case
the Sublease shall become and be deemed to be a direct lease between Landlord
and Sublessee.  If Landlord exercises the
option provided under this section, Landlord shall undertake the obligations of
Tenant under the Sublease from the time of the Reinstatement Notice through the
expiration or earlier termination of the Sublease, but Landlord shall not (a)
be liable for more than 1 month’s rent or any security deposit paid by
Sublessee (except to the extent actually delivered to Landlord), (b) be liable
for any prior act or omission of Tenant under the Lease prior to the
Reinstatement Notice or for any other defaults of Tenant under the Sublease
prior to the Reinstatement Notice, (c) be subject to any defenses or offsets
previously accrued which Sublessee may have against Tenant for any period prior
to the Reinstatement Notice, or (d) be bound by any changes or modifications
made to the Sublease without the prior written consent of Landlord.

 

e.               Tenant and Sublessee
acknowledge and agree that if Tenant or Landlord elects to terminate the Lease
pursuant to the terms thereof, or if Landlord and Tenant voluntarily elect to
terminate the Lease, Landlord shall have no responsibility, liability or
obligation to Sublessee, and the Sublease shall terminate unless reinstated in
Landlord’s sole and absolute discretion as expressly provided in Section 6(d)
above.

 

f.                 Tenant agrees to
reimburse all of Landlord’s costs and expenses in connection with this Consent.

 

7.     Any act or omission of
Sublessee or anyone claiming under or through Sublessee that violates any of
the provisions of the Lease shall be deemed a violation of the Lease by Tenant.

 

8.     Upon a default by Tenant under
the Lease, Landlord may proceed directly against Tenant, any guarantors or
anyone else liable under the Lease or the Sublease without first exhausting
Landlord’s remedies against any other person or entity liable thereon to
Landlord. If Landlord gives Sublessee notice that Tenant is in default under
the Lease (after any notice shall have been given to Tenant and any cure period
shall have lapsed, as provided under the Lease), Sublessee shall thereafter
make directly to Landlord all payments otherwise due Tenant, which payments
will be received by Landlord without any liability to Landlord except to credit
such payments against amounts due under the Lease. The mention in this Consent
of any particular remedy shall not preclude Landlord from any other remedy in
law or in equity.

 

9.     Tenant shall pay any broker
commissions or fees that may be payable as a result of the Sublease and Tenant
hereby indemnifies and agrees to hold Landlord harmless from and against any
loss or liability arising therefrom or from any other

 

 

commissions or fees
payable in connection with the Sublease which result from the actions of
Tenant. Sublessee hereby indemnifies and agrees to hold Landlord harmless from
and against any loss or liability arising from any commissions or fees payable
in connection with the Sublease which result from the actions of Sublessee.

 

10.   Tenant and Sublessee agree that the Sublease will not be
modified or amended in any way without the prior written consent of Landlord,
which consent shall not be unreasonably withheld or delayed. Tenant and
Sublessee hereby agree that it shall be reasonable for Landlord to withhold its
consent to any modification or amendment of the Sublease which would change the
permitted use of the Subleased Premises or which would affect Landlord’s status
as a real estate investment trust.  Any
modification or amendment of the Sublease without Landlord’s prior written
consent shall be void and of no force or effect.

 

11.   This Consent may not be changed orally, but only by an
agreement in writing signed by Landlord and the party against whom enforcement
of any change is sought.

 

12.   This Consent may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which when taken together
shall constitute but one and the same instrument.

 

13.   This Consent and the legal
relations between the parties hereto shall be governed by and construed and
enforced in accordance with the internal laws of the State in which the
Property is located, without regard to its principles of conflicts of law.

 

[ Signatures on next
page ]

 

 

IN WITNESS WHEREOF, Landlord, Tenant and Sublessee have
caused their duly authorized representatives to execute this Consent as of the
date first above written. 

 

	
  LANDLORD:

  	
   

  	
  ARE-1201 HARBOR BAY,
  LLC

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  ARE-QRS CORP.,

  
	
   

  	
   

  	
          a Maryland corporation, general
  partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jennifer Pappas 

  
	
   

  	
   

  	
  Name:

  	
  Jennifer Pappas 

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  AVIGEN, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kenneth G. Chahine

  
	
   

  	
   

  	
  Name:

  	
  Kenneth G. Chahine

  
	
   

  	
   

  	
  Title:

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
  SUBLESSEE:

  	
   

  	
  ADVANCED CELL
  TECHNOLOGY, INC.

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James G. Stewart

  
	
   

  	
   

  	
  Name:

  	
  James G. Stewart

  
	
   

  	
   

  	
  Title:

  	
  CFOExhibit
4.1

 

Amendment No. 1 to Rights
Agreement

 

THIS AMENDMENT No. 1
(this “Amendment”) is made and entered into as
of February 6, 2006, between Duratek, Inc., a Delaware corporation
(the “Company”), and Computershare Investor
Services, LLC, a Delaware limited liability company (the “Rights Agent”).

 

RECITALS

 

WHEREAS,
the Company and the Rights Agent are parties to a Rights Agreement, dated December 16,
2003, by and between the Company and the Rights Agent (the “Rights Agreement”).

 

WHEREAS, the Company
intends to enter into an Agreement and Plan of Merger, dated as of the date
hereof (as it may be amended or supplemented from time to time, the “Merger Agreement”) by and among the Company,
EnergySolutions, LLC, a Utah limited liability company (“EnergySolutions”),
and Dragon Merger Corporation, a Delaware corporation and wholly owned
subsidiary of EnergySolutions;

 

WHEREAS, the Board
of Directors of the Company has approved the Merger Agreement and the
transactions contemplated thereby;

 

WHEREAS, pursuant to
Section 27 of the Rights Agreement, the Company may and the Rights Agent
shall, if the Company so directs, supplement and amend the Rights Agreement
prior to the Distribution Date (as defined in the Rights Agreement) and subject
to certain other limited exceptions;

 

WHEREAS, the Board
of Directors of the Company has determined that an amendment to the Rights
Agreement as set forth herein to except the Merger Agreement and the
transactions contemplated thereby from the Rights Agreement is necessary and desirable
in connection with the foregoing and the Company and the Rights Agent desire to
evidence such amendment in writing; and

 

WHEREAS, all acts
and things necessary to make this Amendment a valid agreement, enforceable
according to its terms, have been done and performed, and the execution and
delivery of this Amendment by the Company and the Rights Agent have been in all
respects duly authorized by the Company and the Rights Agent.

 

NOW THEREFORE, in
consideration of the foregoing and the mutual agreements set forth in the
Rights Agreement and herein, the parties hereto agree as follows:

 

 

AGREEMENT

 

ARTICLE 1

 

Section 1.1                                   Amendment
of Section 1(c).  Section 1(c) of
the Rights Agreement relating to the definitions of “Beneficial Owner” and “beneficially
own” is amended by adding the following at the end thereof:

 

“Notwithstanding anything contained in this
Agreement to the contrary, neither EnergySolutions, LLC, a Utah limited
liability company (“EnergySolutions”), nor Dragon Merger Corporation, a
Delaware corporation and wholly owned subsidiary of EnergySolutions (“Merger
Sub”), nor any of their Affiliates or Associates, shall be deemed to be the
Beneficial Owner of, nor to beneficially own, any of the Common Stock of the
Company by virtue of the approval, execution, delivery or performance of the
Agreement and Plan of Merger, dated as of February 6, 2006 by and among
the Company, EnergySolutions, and Merger Sub (as it may be amended or
supplemented from time to time, the “Merger Agreement”), or the consummation
of the Merger (as defined in the Merger Agreement) and the other transactions
contemplated by the Merger Agreement or any action in furtherance thereof.”

 

Section 1.2                                   Amendment
of Section 7(a).  Section 7(a) of
the Rights Agreement is hereby amended by deleting the word “or” that appears
immediately prior to the symbol “(iii)”, deleting the parenthetical contained
at the end of Section 7(a) and by adding the following to the end of
the amended Section 7(a):

 

“, or (iv) the time immediately prior to
the Effective Time (as defined in the Merger Agreement), whereupon the Rights
shall expire (the earliest of (i), (ii), (iii) and (iv) being herein
referred to as the “Expiration Date”).”

 

Section 1.3                                   Amendment
of Section 13(b).  Section 13(b) of
the Rights Agreement is hereby amended by inserting the following provision at
the end of Section 13(b):

 

“Notwithstanding the foregoing and anything
in this Agreement to the contrary, neither EnergySolutions, nor Merger Sub, nor
any of their Affiliates or Associates, shall be deemed to be a Principal Party
by virtue of the approval, execution, delivery or performance of the Merger
Agreement, or the consummation of the Merger (as defined in the Merger
Agreement) and the other transactions contemplated by the Merger Agreement or
any action in furtherance thereof. “

 

 

Section 1.4                                   Addition
of New Section 35.  The
following is added as a new Section 35 to the Rights Agreement:

 

“Section 35. Merger Agreement.

 

Notwithstanding anything in this Agreement to
the contrary, none of the approval, execution, delivery or performance of the
Merger Agreement, or the consummation of the Merger and the other transactions
contemplated by the Merger Agreement or any action in furtherance thereof shall
cause (i) EnergySolutions or Merger Sub or any of their Affiliates or
Associates to be deemed an Acquiring Person, (ii) a Stock Acquisition Date
to occur, (iii) a Distribution Date to occur or (iv) a Triggering
Event, it being the purpose of the Company in adopting the amendment to this Agreement
that none of the approval, execution, delivery or performance of the Merger
Agreement, or the consummation of the Merger (as defined in the Merger
Agreement) and the other transactions contemplated by the Merger Agreement, or
any action in furtherance thereof, shall in any respect give rise to any
provision of this Agreement becoming effective. 
This Agreement and the Rights established hereby will terminate in all
respects immediately prior to the Effective Time (as defined in the Merger
Agreement).”

 

ARTICLE II

 

Section 2.1                                   Effectiveness.  This Amendment shall
be deemed effective as of the date first written above, as if executed on such
date.  Except as specifically amended by
this Amendment, all other terms and conditions of the Rights Agreement shall
remain in full force and effect.

 

Section 2.2                                   Severability.  If any term,
provision, covenant or restriction of this Amendment is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this
Amendment shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

 

Section 2.3                                   Governing
Law.  This Amendment shall be deemed
to be a contract made under the laws of the State of Delaware and for all
purposes shall be governed by and construed in accordance with the laws of such
State.

 

Section 2.4                                   Counterparts.  This Amendment No. 1 may be executed
in any number of counterparts.  It shall
not be necessary that the signature of or on behalf of each party appears on
each counterpart, but it shall be sufficient that the signature of or on behalf
of each party appears on one or more of the counterparts.  All counterparts shall collectively
constitute a single

 

 

agreement.  It shall not be necessary in any proof of
this Amendment No. 1 to produce or account for more than a number of
counterparts containing the respective signatures of or on behalf of all of the
parties.

 

[Signatures
appear on the following page.]

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and attested, all as of the day and
year first above written.

 

	
  Attest:

  	
   

  	
  DURATEK,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Diane R.
  Brown

  	
   

  	
   

  	
  By:

  	
  /s/ Robert
  F. Shawver

  	
   

  	
   

  
	
  Name:

  	
  Diane R. Brown

  	
   

  	
  Name:

  	
  Robert F.
  Shawver

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  COMPUTERSHARE
  INVESTOR SERVICES,

  LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward
  Gurgul

  	
   

  	
   

  	
  By:

  	
  /s/ Michael
  J. Lang

  	
   

  	
   

  
	
  Name: 

  	
  Edward Gurgul

  	
   

  	
  Name:

  	
  Michael J.
  Lang

  	
   

  
	
  Title:

  	
  Senior
  Relationship Manager

  	
   

  	
  Title:

  	
  Director,
  Relationship Management

  	
   

  
												

 

[Signature
Page to Amendment No. 1]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]