Document:

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                                                                   Exhibit 10.34

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

                                                                    CONFIDENTIAL

                      MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                                       and

                               REPROGENESIS, INC.

                            PATENT LICENSE AGREEMENT

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

Patent Exclusive                                 IA/ra: [**].Reprogenesis
                                                        Date: October 30, 1996

                                    TABLE OF CONTENTS

WITNESSETH...................................................................1

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

2 - GRANT....................................................................4

3 - DILIGENCE................................................................6

4 - ROYALTIES................................................................7

5 - REPORTS AND RECORDS......................................................9

6 - PATENT PROSECUTION......................................................11

7 - INFRINGEMENT............................................................11

8 - PRODUCT LIABILITY.......................................................13

9 - EXPORT CONTROLS.........................................................15

10 - NON-USE OF NAMES.......................................................15

11 - ASSIGNMENT.............................................................16

12 - DISPUTE RESOLUTION.....................................................16

13 - TERMINATION............................................................17

14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS.............................18

15 - MISCELLANEOUS PROVISIONS...............................................19

APPENDIX A..................................................................20
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  Confidential materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                      MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                                       and

                               REPROGENESIS, INC.

                            PATENT LICENSE AGREEMENT

      This Agreement is made and entered into this ______ day of ____________,
1996, (the "EFFECTIVE DATE") by and between the MASSACHUSETTS INSTITUTE OF
TECHNOLOGY, a corporation duly organized and existing under the laws of the
Commonwealth of Massachusetts and having its principal office at 77
Massachusetts Avenue, Cambridge, Massachusetts 02139, U.S.A. (hereinafter
referred to as "M.I.T."), and REPROGENESIS, INC., a corporation duly organized
under the laws of Texas and having its principal office at 10 Sylvan Drive,
Suite 27, St. Simons Island, Georgia 31522, U.S.A. (hereinafter referred to as
"LICENSEE").

                                   WITNESSETH

      WHEREAS, M.I.T. is the owner of certain PATENT RIGHTS (as later defined
herein) relating to M.I.T. Case No. [**], "[**]" by Elazer Edelman, Robert
Langer, Michael Klagsburn and Edith Mathiowitz, U.S. Patent No. [**], Issued
[**], and M.I.T. Case No. [**], "[**]" by Elazer Edelman, Aruna Natha and
Matthew Nugent and has the right to grant licenses under said PATENT RIGHTS,
subject only to a royalty-free, nonexclusive license heretofore granted to the
United States Government;

      WHEREAS, M.I.T. desires to have the PATENT RIGHTS developed and
commercialized to benefit the public and is willing to grant a license
thereunder;

      WHEREAS, LICENSEE has represented to M.I.T., to induce M.I.T. to enter
into this Agreement, that LICENSEE is experienced in the development,
production, manufacture, marketing and sale of products similar to the LICENSED
PRODUCT(s) (as later defined herein)
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and/or the use of the LICENSED PROCESS(es) (as later defined herein) and that it
shall commit itself to a thorough, vigorous and diligent program of exploiting
the PATENT RIGHTS so that public utilization shall result therefrom; and

      WHEREAS, LICENSEE desires to obtain a license under the PATENT RIGHTS upon
the terms and conditions hereinafter set forth.

      WHEREAS, LICENSEE and M.I.T. entered into a separate royalty bearing
License Agreement dated December 23, 1993.

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

                                1 - DEFINITIONS

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

      1.1. "LICENSEE" shall include a related company of REPROGENESIS, INC., the
voting stock of which is directly or indirectly at least Fifty Percent (50%)
owned or controlled by REPROGENESIS, INC., an organization which directly or
indirectly controls more than Fifty Percent (50%) of the voting stock of
REPROGENESIS, INC. and an organization, the majority ownership of which is
directly or indirectly common to the ownership of REPROGENESIS, INC.

      1.2. "PATENT RIGHTS" shall mean all of the following M.I.T. intellectual
property:

          a.  the United States patent applications listed in Appendix A, and
              divisionals, continuations and claims of continuation-in-part
              applications which shall be directed to subject matter supported
              by such patent applications, and the resulting patents;

          b.  any patents resulting from reissues or reexaminations of the
              United States patents described in a. above;

          c.  the Foreign patents listed in Appendix A;

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          d.  the Foreign patent applications listed in Appendix A, and
              divisionals, continuations and claims of continuation-in-part
              applications which shall be directed to subject matter supported
              by such Foreign patent applications, and the resulting patents;

          e.  Foreign patent applications filed after the EFFECTIVE DATE and
              divisionals, continuations and claims of continuation-in-part
              applications which shall be directed to subject matter
              specifically supported by such patent applications, and the
              resulting patents; and

          f.  any Foreign patents, resulting from equivalent Foreign procedures
              to United States reissues and reexaminations, of the Foreign
              patents described in c. above.

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

          a.  is covered in whole or in part by a claim that has not expired or
              been held invalid by a court of competent Jurisdiction or by a
              pending claim contained in the PATENT RIGHTS in the country in
              which any such product or part thereof is made, used or sold; or

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

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

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

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

          a.  discounts allowed in amounts customary in the trade;

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

          c.  outbound transportation prepaid or allowed;

          d.  insurance;

          e.  amounts allowed or credited on returns; and

          f.  bad debts.

      Sales between LICENSEE and any of its affiliates or any of its
sublicensees, or between any of said affiliates or sublicensees, shall not be
included in such computation. No deductions shall be made for commissions paid
to individuals, whether they be with independent sales agencies or regularly
employed by LICENSEE and on its payroll, or for cost of collections. LICENSED
PRODUCTS shall be considered "sold" upon the earlier of receipt of payment or
six months after billed out or invoiced.

      1.7 "TERRITORY" shall mean worldwide.

      1.8 "FIELD OF USE" shall mean all.

                                   2 - GRANT

      2.1 M.I.T. hereby grants to LICENSEE the right and license in the
TERRITORY for the FIELD OF USE to practice under the PATENT RIGHTS and, to the
extent not prohibited by other patents, to make, have made, use, lease, offer
for sale, sell and import LICENSED PRODUCTS and LICENSED SERVICES, and to
practice the LICENSED PROCESSES, until the expiration of the last to expire of
the PATENT RIGHTS, unless this Agreement shall be sooner terminated according to
the terms hereof.

      2.2 LICENSEE agrees that LICENSED PRODUCTS leased or sold in the United
States shall be manufactured substantially in the United States.

                                      -4-
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      2.3 In order to establish a period of exclusivity for LICENSEE, M.I.T.
hereby agrees that it shall not grant any other license to make, have made, use,
lease, offer for sale, sell and import LICENSED PRODUCTS or LICENSED SERVICES;
or to utilize LICENSED PROCESSES subject to the royalty-free, nonexclusive
license rights of the United States Government per FAR 52.227-11, in the
TERRITORY for the FIELD OF USE during the period of time commencing with the
EFFECTIVE DATE and terminating with the last to expire of the PATENT RIGHTS.

      2.4 M.I.T. reserves the right to practice under the PATENT RIGHTS for
noncommercial research purposes.

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

      2.6 LICENSEE agrees to incorporate terms and conditions substantively
similar to Articles 2, 5.1, 7.1, 7.2, 7.3, 7.5, 7.6, 8, 9, 10, 12 and 15 of this
Agreement into its sublicense agreements, that are sufficient to enable LICENSEE
to comply with this Agreement.

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

      2.8 LICENSEE shall not receive from sublicensees anything of value in lieu
of cash payments in consideration for any sublicense under this Agreement,
without the express prior written permission of M.I.T.

      2.9 Nothing in this Agreement shall be construed to confer any rights upon
LICENSEE by implication, estoppel or otherwise as to any technology or patent
rights of M.I.T.

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                Exchange Commission. Asterisks denote omissions.

or any other entity other than the PATENT RIGHTS, regardless of whether such
patent rights shall be dominant or subordinate to any PATENT RIGHTS.

                                 3 - DILIGENCE

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

      3.2 In addition:

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

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

      3.3 LICENSEE acknowledges that the primary objective of M.I.T. with
respect to the technology of this License Agreement is to promote development
and marketing of LICENSED PRODUCTS and LICENSED SERVICES for the public good.
Toward this end, M.I.T. shall have the right to terminate this Agreement
pursuant to Paragraph 13.3 hereof if LICENSEE fails to perform in accordance
with Paragraphs 3.1 or 3.2(a) above or if LICENSEE suspends its diligence in
performance of any of the development obligations of this Agreement for more
than [**] because of business circumstances such as lack of funds, merger,
acquisition, or the like. Failure to perform in accordance with Paragraph 3.3(b)
hereof shall only give M.I.T. the right to take back rights granted hereunder as
to the particular LICENSED PRODUCT or LICENSED

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                Exchange Commission. Asterisks denote omissions.

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

                                 4 - ROYALTIES

      4.1 For the rights, privileges and license granted hereunder, LICENSEE
shall pay royalties to M.I.T. in the manner hereinafter provided to the end of
the term of the PATENT RIGHTS or until this Agreement shall be terminated:

          a.  License Issue Fee of [**], which said License Issue Fee shall be
              deemed earned and due immediately upon the EFFECTIVE DATE.

          b.  Patent Issue Fee of [**], which shall be due upon issuance of the
              first patent claims of M.I.T. Case No. 6584, "Inhibition of
              Vascular Occlusion Following Vascular Intervention" by Elazer
              Edelman, Aruna Natha and Matthew Nugent.

          c.  License Maintenance Fees of [**] per year payable on January 1,
              1999 and on January I of each year thereafter until the issuance
              of the first patent claims, and License Maintenance Fees of [**]
              per year payable on each January 1 after the issuance of the first
              patent claims, provided, however, License Maintenance Fees may be
              credited to Running Royalties subsequently due on NET SALES for
              each said year, if any. License Maintenance Fees paid in excess of
              Running Royalties shall not be creditable to Running Royalties for
              future years.

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                Exchange Commission. Asterisks denote omissions.

          d.  Running Royalties in an amount equal to [**] Percent ([**]%) of
              NET SALES of the LICENSED PRODUCTS, LICENSED PROCESSES and
              LICENSED SERVICES used, leased or sold by and/or for LICENSEE
              and/or its sublicensees; provided however, if LICENSEE is also
              obligated to pay royalties under the License Agreement dated
              December 23, 1993 for the same LICENSED PRODUCT, LICENSED
              PROCESSES and LICENSED SERVICES, the Running Royalties due under
              this paragraph shall be reduced to [**] Percent ([**]%) of NET
              SALES of the LICENSED PRODUCT, LICENSED PROCESSES and LICENSED
              SERVICES used, Leased or sold by and/or for LICENSEE and/or its
              sublicensees.

          e.  Royalties representing a share of sublicensing revenue including,
              but not limited to, sublicense issue fees, received by LICENSEE
              for LICENSED PRODUCTS, LICENSED PROCESSES or LICENSED SERVICES
              sold by the sublicensee equal to:

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

              (ii)    [**] Percent ([**]%) if the sublicense revenue includes
                      revenue received for the PATENT RIGHTS sublicensed in
                      conjunction with products developed by LICENSEE and/or
                      substantial technology developed by LICENSEE; but in no
                      event shall royalties be less than [**] of the applicable
                      running royalty rate specified in 4.1d.

      4.2 All payments due hereunder shall be paid in full, without deduction of
taxes or other fees which may be imposed by any government, except as otherwise
provided in Paragraph 1.5(b).

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

      4.4 Royalty payments shall be paid in United States dollars in Cambridge,
Massachusetts, or at such other place as M.I.T. may reasonably designate
consistent with the laws and regulations controlling in any foreign country. If
any currency conversion shall be required in connection with the payment of
royalties hereunder, such conversion shall be made

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                Exchange Commission. Asterisks denote omissions.

by using the exchange rate prevailing at the Chase Manhattan Bank (N.A.) on the
last business day of the calendar quarterly reporting period to which such
royalty payments relate.

      4.5 In the event LICENSEE is required to make payments (including without
limitation royalties, option fees or license fees) to one or more third parties,
other than M.I.T., its affiliates, successors or assigns, to obtain a license or
similar right necessary to make, use or sell LICENSED PRODUCTS or to practice or
otherwise make use of the LICENSED PROCESSES and LICENSED SERVICES, LICENSEE may
deduct [**] Percent ([**]%) of such payments from royalties thereafter payable
to M.I.T., provided, however, that in no event shall the royalties due M.I.T. be
reduced by more than [**] Percent ([**]%) of NET SALES of the LICENSED PRODUCTS,
LICENSED PROCESSES or LICENSED SERVICES.

                            5 - REPORTS AND RECORDS

      5.1 LICENSEE shall keep full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to M.I.T. hereunder. Said books of account shall be kept at
LICENSEE's principal place of business or the principal place of business of the
appropriate division of LICENSEE to which this Agreement relates. Said books and
the supporting data shall be open at all reasonable times for five (5) years
following the end of the calendar year to which they pertain, to the inspection
of M.I.T. or its agents for the purpose of verifying LICENSEE's royalty
statement or compliance in other respects with this Agreement. Should such
inspection lead to the discovery of a greater than Ten Percent (10%) discrepancy
in reporting to M.I.T.'s detriment, LICENSEE agrees to pay the full cost of such
inspection.

      5.2 LICENSEE shall deliver to M.I.T. true and accurate reports, giving
such particulars of the business conducted by LICENSEE and its sublicensees
under this Agreement as shall be pertinent to diligence under Article 3 and
royalty accounting hereunder:

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                Exchange Commission. Asterisks denote omissions.

          a.  before the first commercial sale of a LICENSED PRODUCT, LICENSED
              PROCESS or LICENSED SERVICES, annually, on January 31 of each
              year; and

          b.  after the first commercial sale of a LICENSED PRODUCT, LICENSED
              PROCESS or LICENSED SERVICES, quarterly, within sixty (60) days
              after March 31, June 30, September 30 and December 31, of each
              year.

      These reports shall include at least the following:

          a.  number of LICENSED PRODUCTS manufactured, leased and sold by
              and/or for LICENSEE and all sublicensees;

          b.  accounting for all LICENSED PROCESSES and/or LICENSED SERVICES
              used or sold by and/or for LICENSEE and all sublicensees;

          c.  accounting for NET SALES, noting the deductions applicable as
              provided in Paragraph 1.5;

          d.  Running Royalties due under Paragraph 4.1(c);

          e.  royalties due on other payments from sublicensees under paragraph
              4.1(d);

          f.  total royalties due; and

          g.  names and addresses of all sublicensees of LICENSEE.

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

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

      5.5 The amounts due under Articles 4 and 6 shall, if overdue, bear
interest until payment at a per annum rate [**] Percent ([**]%) above the prime
rate in effect at the Chase Manhattan Bank (N.A.) on the due date. The payment
of such interest shall not foreclose M.I.T. from exercising any other rights it
may have as a consequence of the lateness of any payment.

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

                             6 - PATENT PROSECUTION

      6.1 After the EFFECTIVE DATE, LICENSEE shall have the primary
responsibility for applying for, seeking prompt issuance of, and maintaining the
PATENT RIGHTS in M.I.T.'s name. LICENSEE shall seek strong, broad claims in
M.I.T.'s best interest. LICENSEE shall not abandon any major claim of the PATENT
RIGHTS without prior permission from M.I.T., such permission not to be
unreasonably withheld. Appendix B is a list of the foreign countries in which
patent applications corresponding to the United States patent applications
listed in Appendix A shall be filed. Appendix B may be amended by mutual
agreement of both parties. LICENSEE may abandon any PATENT RIGHTS if LICENSEE
notifies M.I.T. in writing in sufficient time for M.I.T. to maintain the PATENT
RIGHTS, and in such case, LICENSEE's rights under these PATENT RIGHTS shall
cease with such notification.

      6.2 Payment of all fees and costs relating to the filing, prosecution and
maintenance of the PATENT RIGHTS shall be the responsibility of LICENSEE,
whether such fees and costs were incurred before or after the EFFECTIVE DATE.
(As of May 21, 1996, such fees and costs for which M.I.T. has been billed equal
approximately [**] Dollars ($[**])). LICENSEE shall pay such fees and costs to
M.I.T. within thirty (30) days of invoicing; late payments shall accrue interest
and shall be subject to Paragraph 5.5.

                                7 - INFRINGEMENT

      7.1 LICENSEE shall inform M.I.T. promptly in writing of any alleged
infringement of the PATENT RIGHTS by a third party and of any available evidence
thereof.

      7.2 M.I.T. shall have the right, but shall not be obligated, to prosecute
at its own expense all infringements of the PATENT RIGHTS and, in furtherance of
such right, LICENSEE hereby agrees that M.I.T. may include LICENSEE as a party
plaintiff in any such suit, without expense to LICENSEE. The total cost of any
such infringement action commenced

                                      -11-
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or defended solely by M.I..T. shall be borne by M.I.T., and M.I.T. shall keep
any recovery or damages for past infringement derived therefrom.

      7.3 If within [**] after having been notified of an alleged infringement,
M.I.T. shall have been unsuccessful in persuading the alleged infringer to
desist and shall not have brought and shall not be diligently prosecuting an
infringement action, or if M.I.T. shall notify LICENSEE at any time prior
thereto of its intention not to bring suit against any alleged infringer in the
TERRITORY for the FIELD OF USE, then, and in those events only, LICENSEE shall
have the right, but shall not be obligated, to prosecute at its own expense any
infringement of the PATENT RIGHTS in the TERRITORY for the FIELD OF USE, and
LICENSEE may, for such purposes, use the name of M.I.T. as party plaintiff;
provided, however, that such right to bring such an infringement action shall
remain in effect only during the EXCLUSIVE PERIOD. No settlement, consent
judgment or other voluntary final disposition of the suit may be entered into
without the consent of M.I.T., which consent shall not unreasonably be withheld.
LICENSEE shall indemnify M.I.T. against any order for costs that may be made
against M.I.T. in such proceedings.

      7.4 In the event that LICENSEE shall undertake litigation for the
enforcement of the PATENT RIGHTS, or the defense of the PATENT RIGHTS under
Paragraph 7.5, LICENSEE may withhold up to [**] Percent ([**]%) of the payments
otherwise thereafter due M.I.T. under Article 4 hereunder and apply the same
toward reimbursement of up to [**] of LICENSEE's expenses, including reasonable
attorneys' fees, in connection therewith. Any recovery of damages by LICENSEE
for each such suit shall be applied first in satisfaction of any unreimbursed
expenses and legal fees of LICENSEE relating to such suit, and next toward
reimbursement of M.I.T. for any payments under Article 4 past due or withheld
and applied

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                Exchange Commission. Asterisks denote omissions.

pursuant to this Article 7. The balance remaining from any such recovery shall
be [**] between LICENSEE and M.I.T.

      7.5 In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the PATENT RIGHTS shall be brought against M.I.T. or
LICENSEE, M.I.T., at its option, shall have the right, within thirty (30) days
after commencement of such action, to take over the sole defense of the action
at its own expense. If M.I.T. shall not exercise this right, LICENSEE may take
over the sole defense at LICENSEE's sole expense, subject to Paragraph 7.4.

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

      7.7 LICENSEE, during the EXCLUSIVE PERIOD, shall have the sole right in
accordance with the terms and conditions herein to sublicense any alleged
infringer in the TERRITORY for the FIELD OF USE for future use of the PATENT
RIGHTS. Any upfront fees as part of such a sublicense shall be [**] between
LICENSEE and M.I.T.; other revenues shall be treated per Article 4.

                             8 - PRODUCT LIABILITY

      8.1 LICENSEE shall at all times during the term of this Agreement and
thereafter, indemnify, defend and hold M.I.T., its trustees, directors,
officers, employees and affiliates, harmless against all claims, proceedings,
demands and liabilities of any kind whatsoever, including legal expenses and
reasonable attorneys' fees, arising out of the death of or injury to any person
or persons or out of any damage to property, resulting from the production,

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                Exchange Commission. Asterisks denote omissions.

manufacture, sale, use, lease, consumption or advertisement of the LICENSED
PRODUCT(s) and/or LICENSED PROCESS(es) or arising from any obligation of
LICENSEE hereunder.

      8.2 LICENSEE shall obtain and carry in full force and effect commercial,
general liability insurance, including product liability and errors and
omissions insurance, which shall protect LICENSEE and M.I.T. with respect to
events covered by Paragraph 8.1 above. Such insurance shall be written by a
reputable insurance company authorized to do business in the Commonwealth of
Massachusetts, shall list M.I.T. as an additional named insured thereunder,
shall be endorsed to include product liability coverage and shall require thirty
(30) days written notice to be given to M.I.T. prior to any cancellation or
material change thereof. The limits of such insurance shall not be less than
[**] Dollars ($[**]) per occurrence with an aggregate of [**] Dollars ($[**])
for personal injury including death; [**] Dollars ($[**]) per occurrence with an
aggregate of [**] Dollars ($[**]) for property damage; and [**] Dollars ($[**])
per occurrence with an aggregate of [**] Dollars ($[**]) for errors and
omissions. LICENSEE shall provide M.I.T. with Certificates of Insurance
evidencing the same.

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

                                      -14-
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GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. IN NO
EVENT SHALL M.I.T., ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES
BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER
M.I.T. SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW
OF THE POSSIBILITY OF THE FOREGOING.

                              9 - EXPORT CONTROLS

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

                             10 - NON-USE OF NAMES

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

                                      -15-
<PAGE>

                                11 - ASSIGNMENT

      This Agreement may be assigned only in connection with:

          a.  a change in name or legal status of LICENSEE that does not affect
              the nature of its business activities, or

          b.  the sale of substantially all the assets of the business to which
              the PATENT RIGHTS relates or a separable business unit related to
              a particular LICENSED PRODUCT or LICENSED SERVICE with the written
              permission of M.I.T., which shall not be unreasonably withheld, or

          c.  otherwise with the written permission of M.I.T., which shall not
              be unreasonably withheld.

                            12 - DISPUTE RESOLUTION

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

                                      -16-
<PAGE>

fifteen (15) business days after such mediation hearing, then any and all
claims, disputes or controversies arising under, out of, or in connection with
this Agreement, including any dispute relating to patent validity or
infringement, shall be resolved by final and binding arbitration in Boston,
Massachusetts under the rules of the American Arbitration Association, or the
Patent Arbitration Rules if applicable, then obtaining. The arbitrators shall
have no power to add to, subtract from or modify any of the terms or conditions
of this Agreement, nor to award punitive damages. Any award rendered in such
arbitration may be enforced by either party in either the courts of the
Commonwealth of Massachusetts or in the United States District Court for the
District of Massachusetts, to whose jurisdiction for such purposes M.I.T. and
LICENSEE each hereby irrevocably consents and submits.

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

                                13 - TERMINATION

      13.1 If LICENSEE shall cease to carry on its business, this Agreement
shall terminate upon notice by M.I.T.

      13.2 Should LICENSEE fail to make any payment whatsoever due and payable
to M.I.T. hereunder, M.I.T. shall have the right to terminate this Agreement
effective on thirty (30) days' notice, unless LICENSEE shall make all such
payments to M.I.T. within said thirty (30) day period. Upon the expiration of
the thirty (30) day period, if LICENSEE shall not have made all such payments to
M.I.T., the rights, privileges and license granted hereunder shall automatically
terminate.

      13.3 Upon any material breach or default of this Agreement by LICENSEE
(including, but not limited to, breach or default under Paragraph 3.3), other
than those occurrences set out in Paragraphs 13.1 and 13.2 hereinabove, which
shall always take precedence in that order over any

                                      -17-
<PAGE>

material breach or default referred to in this Paragraph 13.3, M.I.T. shall have
the right to terminate this Agreement and the rights, privileges and license
granted hereunder effective on ninety (90) days' notice to LICENSEE. Such
termination shall become automatically effective unless LICENSEE shall have
cured any such material breach or default prior to the expiration of the ninety
(90) day period.

      13.4 LICENSEE shall have the right to terminate this Agreement at any time
on six (6) months' notice to M.I.T., and upon payment of all amounts due M.I.T.
through the effective date of the termination.

      13.5 Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination; and Articles 1, 8, 9, 10, 12,
13.5, 13.6, and 15 shall survive any such termination. LICENSEE and any
sublicensee thereof may, however, after the effective date of such termination,
sell all LICENSED PRODUCTS, and complete LICENSED PRODUCTS in the process of
manufacture at the time of such termination and sell the same, provided that
LICENSEE shall make the payments to M.I.T. as required by Article 4 of this
Agreement and shall submit the reports required by Article 5 hereof.

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

                14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

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

                                      -18-
<PAGE>

            In the case of M.I.T.:

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

            In the case of LICENSEE:

            President
            REPROGENESIS, INC.
            10 Sylvan Drive
            Suite 27
            St. Simons Island, GA 31522

                         15 - MISCELLANEOUS PROVISIONS

      15.1 All disputes arising out of or related to this Agreement, or the
performance, enforcement, breach or termination hereof, and any remedies
relating thereto, shall be construed, governed, interpreted and applied in
accordance with the laws of the Commonwealth of Massachusetts, U.S.A., except
that questions affecting the construction and effect of any patent shall be
determined by the law of the country in which the patent shall have been
granted.

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

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

      15.4 LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United
States with all applicable United States patent numbers. All LICENSED PRODUCTS
shipped to or

                                      -19-
<PAGE>

sold in other countries shall be marked in such a manner as to conform with the
patent laws and practice of the country of manufacture or sale.

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

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

MASSACHUSETTS INSTITUTE OF
   TECHNOLOGY                            REPROGENESIS, INC.

By /s/_______________________________    By /s/________________________________

Name_________________________________    Name__________________________________

Title________________________________    Title_________________________________

Date_________________________________    Date__________________________________

                                      -20-
<PAGE>

                                   APPENDIX A

                       PATENT RIGHTS on the EFFECTIVE DATE

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

UNITED STATES PATENT RIGHTS
M.I.T. Case No. [**]
"[**]"
By Elazer Edelman, Robert Langer, Michael Klagsburn and Edith Mathiowitz
U.S. Patent No. [**]
Issued [**]

M.I.T. Case No. [**]
Title: "[**]"
By Elazer Edelman, Aruna Natha and Matthew Nugent
U.S. Serial No. [**]
Filed on [**]

FOREIGN PATENT RIGHTS

M.I.T. Case No. [**]
PCT Serial No. [**] Filed on [**]

                                      -21-<PAGE>

                                                                   Exhibit 10.35

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

                           EXCLUSIVE LICENSE AGREEMENT

                                     BETWEEN

                      CHILDREN'S MEDICAL CENTER CORPORATION

                                       AND

                               REPROGENESIS, Inc.
<PAGE>

                                    TABLE OF CONTENTS

Articles                                                                    Page

ARTICLE I.  DEFINITIONS......................................................1

ARTICLE II.  GRANT...........................................................3

ARTICLE III.  DUE DILIGENCE..................................................5

ARTICLE IV.  ROYALTIES AND OTHER PAYMENTS....................................6

ARTICLE V.  REPORTS AND RECORDS..............................................8

ARTICLE VI.  PATENT PROSECUTION..............................................9

ARTICLE VII.  INFRINGEMENT...................................................9

ARTICLE VIII.  UNIFORM INDEMNIFICATION AND INSURANCE PROVISIONS.............11

ARTICLE IX.  EXPORT CONTROLS................................................12

ARTICLE X.  NON-USE OF NAMES................................................12

ARTICLE XI.  ASSIGNMENT.....................................................12

ARTICLE XII.  DISPUTE RESOLUTION AND ARBITRATION............................13

ARTICLE XIII.  TERM AND TERMINATION.........................................14

ARTICLE XIV.  PAYMENTS, NOTICES, AND OTHER COMMUNICATIONS...................14

ARTICLE XV.  GENERAL PROVISIONS.............................................15
<PAGE>

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

                           EXCLUSIVE LICENSE AGREEMENT

      This Agreement is made and entered into as of the date last written below
(the Effective Date), by and between CHILDREN'S MEDICAL CENTER CORPORATION, a
charitable corporation duly organized and existing under the laws of the
Commonwealth of Massachusetts and having its principal office at 300 Longwood
Avenue, Boston, Massachusetts, 02115, U.S.A. (hereinafter referred to as
"CMCC"), and Reprogenesis, Inc., a business corporation organized and existing
under the laws of the State of Texas and having its principal office at 21 Erie
Street, Cambridge, Massachusetts, 02139 (hereinafter referred to as "Licensee").

      WHEREAS, CMCC is the owner of certain Patent Rights (as that term shall be
defined hereafter) and has the right to grant exclusive licenses under said
Patent Rights, subject only to a royalty-free, nonexclusive license heretofore
granted to the United States Government for those patents developed with U.S.
Government funding;

      WHEREAS, CMCC desires to have the Patent Rights utilized in the public
interest and is willing to grant a license thereunder on the terms and
conditions described herein;

      WHEREAS, Licensee has represented to CMCC that Licensee is ready, willing
and able to engage in the commercial development, production, manufacture,
marketing and sale of Licensed Products (as that term shall be defined
hereafter) and/or the use of Licensed Processes (as that term shall be defined
hereafter) and that it shall commit itself to a thorough, vigorous and diligent
program of exploiting the Patent Rights in accordance with the terms and
conditions described herein so that public utilization shall result therefrom;
and

      WHEREAS, Licensee desires to obtain an exclusive license under the Patent
Rights on the terms and conditions of this Agreement.

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

                             ARTICLE I. DEFINITIONS

      For the purpose of this Agreement, the following words and phrases shall
have the meanings set forth below:

      A. "Affiliate" shall mean any company or other legal entity controlling,
controlled by or under common control with Licensee. For purposes of the
definition of "Affiliate" the term "control" shall mean: (i) in the case of a
corporate entity, the direct or indirect ownership of at least a majority of the
stock or participating shares entitled to vote for the election of directors of
that entity; (ii) in the case of a partnership, the power customarily held by a
general partner to direct the management and policies of such partnership; or
(iii) in the case of a joint venture, whether in corporate, partnership or other
legal form, a more than nominal economic interest and managerial role.

      B. "Combination Product(s) or Process(es)" shall mean a product or process
that includes a Licensed Product or Licensed Process sold in combination with
another component(s)
<PAGE>

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

whose manufacture, use or sale by an unlicensed party would not constitute an
infringement of the Patent Rights.

      C. "Field of Use" shall mean all [**], [**] and [**].

      D. "First Commercial Sale" shall mean with respect to each country: (i)
the first sale of any Licensed Product or Licensed Process by Licensee,
following approval of such Licensed Product's or Licensed Process's marketing by
the appropriate governmental agency, if any such approval is necessary, for the
country in which the sale is to be made; or (ii) when governmental approval is
not required, the first sale in that country of the Licensed Product or Licensed
Process.

      E. "Licensed Product" shall mean any product or part thereof:

          1. The manufacture, use or sale of which would infringe any one of the
      issued, unexpired claim(s) or any one of the pending claim(s) contained in
      the Patent Rights in any country.

          2. The manufacture of which uses a "Licensed Process" as that term
      shall be defined hereafter.

      F. "Licensed Process" shall mean any process that would infringe any one
of the issued, unexpired claim(s) or any one of the pending claim(s) contained
in the Patent Rights in any country.

      G. "Licensee" shall mean Licensee and/or its successor(s) or assignee(s)
and/or its Affiliates.

      H. "Net Sales" shall mean gross receipts received by Licensee, Licensee's
sublicensees or Licensee's Affiliates for Licensed Products and Licensed
Processes produced hereunder, less the sum of the following:

          1. Discounts allowed in amounts customary in the trade.

          2. Sales taxes, tariff duties and/or use taxes directly imposed and
      with reference to particular sales.

          3. Outbound transportation and delivery charges (including insurance
      premiums related to transportation and delivery) prepaid or allowed.

          4. Amounts allowed or credited on returns and bad debts.

      No deductions shall be made for commissions paid to individuals whether
they are with independent sales agencies or regularly employed by Licensee and
on its payroll or for the cost of collections. Licensed Products and Licensed
Processes shall be considered "sold" when billed out or invoiced.
Notwithstanding anything herein to the contrary, the following shall not be
considered a sale of a Licensed Product or Licensed Process under this
Agreement: (i) the transfer of a Licensed Product or Licensed Process to an
Affiliate for sale by the Affiliate in a

                                      -2-
<PAGE>

transaction that will be royalty bearing; (ii) the transfer of a Licensed
Product or Licensed Process to a third party without consideration to Licensee
in connection with the development or testing of a Licensed Product or Licensed
Process; or (iii) the transfer of a Licensed Product or Licensed Process to a
third party without consideration in connection with the marketing or promotion
of the Licensed Product or Licensed Process.

      I. "Patent Rights" shall mean all of the following intellectual property
which CMCC owns or has rights to during the term of this Agreement:

          1. The United States and foreign patents and/or patent applications
      listed in Appendix 1 attached hereto and incorporated herein by reference
      and divisionals and continuations thereof.

          2. The United States and foreign patents issued from the applications
      listed in Appendix 1 and from divisionals and continuations of those
      applications.

          3. Claims of United States and foreign continuation-in-part
      applications, and of the resulting patents, which relate to subject matter
      specifically described in the United States and foreign patent
      applications described in Appendix 1.

          4. Claims of all later filed foreign patent applications, and of the
      resulting patents, which relate to subject matter specifically described
      in the United States patent and/or patent applications described in
      subparagraphs 1, 2 or 3 of this Article 1, Paragraph 1.

          5. Any reissues, divisions, amendments or extensions of the United
      States or foreign patents described in subparagraphs 1, 2, 3 or 4 of this
      Article 1, Paragraph 1.

      J. "Sublicensee" shall mean a person or entity unaffiliated with Licensee
to whom Licensee has granted an arm's length sublicense under this Agreement.

                               ARTICLE II. GRANT

      A. CMCC hereby grants to Licensee the worldwide right and exclusive
license to develop, make, have made, use, lease, offer for sale and sell the
Licensed Products and to practice the Licensed Processes for the Field of Use to
the end of the term for which the Patent Rights are granted, unless sooner
terminated as provided in this Agreement.

      B. Notwithstanding anything above to the contrary, CMCC shall retain a
royalty-free, nonexclusive, irrevocable license to practice, and to sublicense
other nonprofit research organizations to practice, the Patent Rights for
noncommercial research purposes only.

      C. Notwithstanding anything above to the contrary, the license granted
hereunder shall be subject to the rights of the United States government, if
any, under Public Laws 96-517, 97-226, and 98-620, codified at 35 U.S.C. sec.
200-212 and any regulations promulgated thereunder.

                                      -3-
<PAGE>

      D. Licensee agrees that Licensed Products leased or sold in the United
States shall be manufactured substantially in the United States, subject to 37
CFR 401.14(i).

      E. In order to establish exclusivity for Licensee, CMCC hereby agrees that
it shall not, without Licensee's prior written consent, grant to any other
commercial party a license to make, have made, use, lease and/or sell Licensed
Products or to use the Licensed Processes in the Field of Use during the period
of time in which this Agreement is in effect, except as otherwise specified in
this Agreement or as required by law to grant rights to the United States
Government.

      F. Licensee shall have the right to enter into sublicensing agreements
with respect to any of the rights, privileges, and licenses granted hereunder,
subject to the terms and conditions hereof. Such sublicenses will terminate upon
the termination of Licensee's rights granted herein unless events of default are
cured by Licensee or Sublicensee within thirty (30) days of notification by CMCC
of default and/or as provided by the terms of this Agreement.

      G. Licensee agrees that any sublicense granted by it shall provide that
the obligations to CMCC of Articles II (Grant), V (Reports and Records), VII
(Infringement), VIII (insurance and Indemnification), IX (Export Controls), X
(Non-Use of Names), XI (Assignment), XII (Dispute Resolution), XIII (Term and
Termination) and XV (Miscellaneous Provisions) of this Agreement shall be
binding upon the sublicensee as if it were a party to this Agreement. Licensee
further agrees to attach a copy of this Agreement to all sublicense agreements,
deleting economic terms when and as appropriate.

      H. Licensee agrees to provide to CMCC notice of any sublicense granted
hereunder and to forward to CMCC a copy of any and all fully executed sublicense
agreements. Licensee further agrees to forward to CMCC annually a copy of such
reports received by Licensee from its sublicensees during the preceding twelve
(12) month period as shall be pertinent to a royalty accounting under the
applicable sublicense.

      I. Licensee shall advise CMCC in writing of any consideration received
from sublicensees. Licensee shall not accept from any sublicensee anything of
value in lieu of cash payments to discharge sublicensee's payment obligations
under any sublicense granted under this Agreement, without the express written
permission of CMCC, which permission shall not be unreasonably withheld.

      J. CMCC agrees that if Licensee has provided to CMCC notice that Licensee
has granted a sublicense to a sublicensee under this Agreement, then in the
event CMCC terminates this Agreement for any reason provided hereafter, CMCC
shall provide to such sublicensee no less than thirty (30) days prior to the
effective date of said termination, written notice of said termination at the
address specified by Licensee to CMCC in Licensee's notice to CMCC under
Paragraph H of this Article II. CMCC agrees that upon the sublicensee's notice
as described below and provided the sublicensee is not in breach of its
sublicense, CMCC shall grant to such sublicensee license rights and terms
equivalent to the sublicense rights and terms which the Licensee shall have
granted to said sublicensee; provided that the sublicensee shall remain a
sublicensee under this Agreement for a period of at least sixty (60) days
following receipt of notice from CMCC. Sublicensee shall during said sixty (60)
day period provide to CMCC notice

                                      -4-
<PAGE>

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

wherein the sublicensee: (i) reaffirms the terms and conditions of this
Agreement as it relates to the rights the sublicensee has been granted under the
sublicense; (ii) agrees to abide by all of the terms and conditions of this
Agreement applicable to sublicensees and to discharge directly all pertinent
obligations of Licensee which Licensee is obligated hereunder to discharge; and
(iii) acknowledges that CMCC shall have no obligations to the sublicensee other
than its obligations set forth in this Agreement with regard to Licensee.

      K. The license granted hereunder shall not be construed to confer any
rights upon Licensee by implication, estoppel or otherwise as to any technology
not described in the Patent Rights.

                           ARTICLE III. DUE DILIGENCE

      A. Licensee shall use its good faith and diligent efforts to bring one or
more Licensed Products and/or Licensed Processes to market as soon as reasonably
practicable, consistent with sound and reasonable business practices and
judgment, through a thorough, vigorous and diligent program for exploitation of
the Patent Rights. Thereafter, Licensee agrees that until expiration or
termination of this Agreement, Licensee shall continue active and diligent
efforts to keep Licensed Products and/or Licensed Processes reasonably available
to the public. In the event Licensee decides not to exploit a licensed Patent
Right, it shall promptly inform CMCC in writing and shall surrender to CMCC its
license to that Patent Right.

      B. The parties acknowledge that Licensee has provided to CMCC prior to the
date of execution of this Agreement a written commercialization development plan
("Development Plan") setting forth the initial indications and markets for
Licensed Products and Licensed Processes, including to the extent practicable:
(i) time-delimited targets for pre-clinical development, clinical trials,
regulatory approval, manufacturing and marketing that represent reasonable
efforts, consistent with industry norms for similar technology and applications,
to bring Licensed Products and Licensed Processes to the marketplace; and (ii)
actual or projected financial resources and/or strategic alliances that will be
required to implement the Development Plan. The Development Plan is attached
hereto as Appendix 2 and is hereby incorporated herein by reference.

      C. Licensee shall use good faith and diligent efforts to accomplish the
milestones set forth in the Development Plan and to manufacture and distribute
Licensed Products and Licensed Processes.

      D. Notwithstanding anything above to the contrary, CMCC shall not
unreasonably withhold its assent to any revision of the objective(s) set forth
in the Development Plan when requested in writing by Licensee and supported by
evidence reasonably acceptable to CMCC: (i) of technical difficulties or delays
in the clinical studies or regulatory process that Licensee could not have
reasonably avoided; or (ii) that Licensee, its Affiliates and/or sublicensees
have expended good faith and diligent efforts and adequate resources to meet
said objective.

      E. In the event Licensee fails to meet the objective(s) set forth in the
Development Plan in a timely manner, CMCC shall notify Licensee thereof in
writing, and Licensee shall have [**] days following such notification to
establish to the reasonable satisfaction of CMCC that (i)

                                      -5-
<PAGE>

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

it has met such objective(s); or (ii) a revision to the Development Plan is
necessary and appropriate as contemplated above. In the event Licensee fails to
establish the same to CMCC's reasonable satisfaction, CMCC shall have the right
in its discretion to terminate the license granted to Licensee under this
Agreement or to convert the license granted to Licensee hereunder to a
nonexclusive license on financial terms and conditions mutually agreed to by
CMCC and Licensee.

                    ARTICLE IV. ROYALTIES AND OTHER PAYMENTS

      A. For the rights, privileges and exclusive licenses granted hereunder,
Licensee shall pay to CMCC the following amounts in the manner hereinafter
provided until the end of the term of the last to expire Patent Right, unless
this Agreement shall be sooner terminated as hereinafter provided:

          1. A license issue fee of $[**], payable within ten (10) days of the
      Effective Date.

          2. Patent costs invoiced to date for the Patent Rights listed in
      Appendix 1 of not more than [**] dollars ($[**]), payable within ten (10)
      days of receiving an invoice from CMCC and ongoing patent costs for the
      Patent Rights.

          3. A License Maintenance Fee of $[**], which shall be payable on
      January 1, 2001 and on January 1 of each subsequent year thereafter during
      the exclusive license period of this Agreement. Notwithstanding anything
      herein to the contrary, any Running Royalties (defined below) subsequently
      due on Net Sales of Licensed Products and Licensed Processes, if any, for
      each such year shall be creditable against the License Maintenance Fee for
      said year. License Maintenance Fees paid in excess of Running Royalties
      shall not be creditable against Running Royalties due in future years. No
      License Maintenance Fee shall be due in any year in which Licensee is
      funding sponsored research for development of the Patent Rights of at
      least [**] dollars ($[**]) at CMCC.

          4. Milestone payments as follows:

             Upon obtaining first marketing approval by
             the FDA or equivalent foreign agency of the
             first Licensed Product/Processes                      $[**]

             Upon achieving $[**] cumulative Net Sales
             for Licensed Products/Processes                       $[**]

          5. Running Royalties in an amount equal to [**] percent ([**]%) of Net
      Sales of Licensed Products or Licensed Processes used, leased or sold by
      and/or for Licensee and/or its Affiliates.

          6. In the event Licensee has granted sublicenses under this Agreement
      within [**] of the Effective Date, [**] percent ([**]%) of any and all
      payments (excluding payments for research and development and equity
      investments) received by Licensee from said sublicensees in consideration
      of permitting the sublicensee to practice the

                                      -6-
<PAGE>

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

      Patent Rights, including but not limited to sublicense issue fees, any
      lump sum payments, milestone payments, technology transfer payments or
      other similar fees, and royalties; provided that with respect to running
      royalties in connection with a sublicensee's sales of Licensed Products or
      Licensed Processes, Licensee shall pay to CMCC hereunder an amount equal
      to the royalty CMCC would have received from Licensee if such sales had
      been made by Licensee. If sublicenses are granted after [**] from the
      Effective Date, Licensee will pay CMCC [**] percent ([**]%) of any and all
      payments as stated above.

      B. No multiple royalties shall be payable because any Licensed Product or
Licensed Process, its manufacture, use, lease or sale are or shall be covered by
more than one Patent Rights patent application or Patent Rights patent licensed
under this Agreement.

      C. To the extent that Licensee obtains subsequent to the date of this
Agreement licenses to third party patents or other intellectual property that
are necessary to produce or sell Licensed Products or Licensed Processes,
Licensee may deduct from the royalty due to CMCC [**] percent ([**]%) of the
royalties due on such third party patents or intellectual property up to an
amount equal to [**] percent ([**]%) of royalties hereunder.

      D. For purposes of calculating royalties, in the event that a Licensed
Product or Licensed Process includes both component(s) covered by a valid claim
of a Patent Right ("Patented Component") and a component which is
therapeutically active alone or in a combination which does not require the
Patented Component, and such component is not covered by a valid claim of a
Patent Right ("Unpatented Component"), then Net Sales of the Combination Product
or Combination Process shall be calculated using one of the following methods:

          1. By multiplying the Net Sales of the Combination Product or
      Combination Process during the applicable royalty accounting period
      ("accounting period") by a fraction, the numerator of which is the
      aggregate gross selling price of the Patented Component(s) contained in
      the Combination Product or Combination Process if sold separately, and the
      denominator of which is the sum of the gross selling price of both the
      Patented Component(s) and the Unpatented Component(s) contained in the
      Combination Product or Combination Process if sold separately; or

          2. In the event that no such separate sales are made of the Patented
      Component(s) or the Unpatented Components during the applicable accounting
      period, Net Sales for purposes of determining royalties payable hereunder
      shall be calculated by multiplying the Net Sales of the Combination
      Product or Combination Process by a fraction, the numerator of which is
      the fully allocated production cost of the Patented Component(s) and the
      denominator of which is the sum of the fully allocated production costs of
      the Patented Component(s) and the Unpatented Component(s) contained in the
      Combination Product or Combination Process. Such fully allocated costs
      shall be determined by using Licensee's standard accounting procedures,
      which procedures must conform to standard cost accounting procedures.

      E. Royalty payments shall be paid in United States dollars in Boston,
Massachusetts, or at such other place as CMCC may reasonably designate
consistent with the laws and

                                      -7-
<PAGE>

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

regulations controlling in any foreign country. If the currency conversion shall
be required in connection with the payments of royalties or other amounts
hereunder, the conversion shall be made by using the exchange rate prevailing at
the Bank of Boston on the last business day of the calendar quarterly reporting
period to which such royalty payments relate.

      F. The royalty payments set forth in this Agreement shall, if overdue,
bear interest until payment at a per annum rate of [**] percent ([**]%) above
the prime rate in effect at the Bank of Boston on the due date. The payment of
such interest shall not foreclose CMCC from exercising any other rights it may
have as a consequence of the lateness of any payment.

                         ARTICLE V. REPORTS AND RECORDS

      A. Licensee shall keep, and shall require its Affiliates and sublicensees
to keep, full, true and accurate books of account in accordance with generally
accepted accounting principles and containing sufficient detail to enable CMCC
to determine the royalty and other amounts payable to CMCC under this Agreement.
Said books of account shall be kept at Licensee's principal place of business or
the principal place of business of the appropriate division of Licensee to which
this Agreement relates. Said books and the supporting data shall be retained for
at least five (5) years following the end of the calendar year to which they
pertain.

      B. CMCC shall have the right to audit the books of account described above
from time to time to the extent necessary to verify the reports provided for
herein or compliance in other respects with this Agreement. CMCC or its agents
shall perform these audits at CMCC's expense during Licensee's regular business
hours.

      C. Licensee shall deliver to CMCC true and accurate reports by March 31st,
for the period July 1 through December 31 of the previous year, and on September
30th, for the period January 1st through June 30th of the current year, giving
such particulars of the business conducted by Licensee, its Affiliates and its
sublicensees under this Agreement as shall be pertinent to a royalty accounting
hereunder and to verify Licensee's activities with respect to achieving the
objectives of the Development Plan described in Article III above. These reports
shall include at least the following:

          1. Number of Licensed Products and Licensed Processes manufactured and
      sold.

          2. Aggregate billings for Licensed Products and Licensed Processes
      sold.

          3. Accounting for all Licensed Products and Licensed Processes sold.

          4. Applicable deductions.

          5. Total royalties due.

          6. Names and addresses of all sublicensees of Licensee.

          7. Payments received by Licensee from Affiliates and sublicensees.

                                      -8-
<PAGE>

          8. Licensed Products manufactured and sold to the U.S. Government. No
      royalty obligations shall arise from sales or use by, for or on behalf of
      the U.S. Government in view of a royalty-free, nonexclusive license that
      may heretofore have been granted to the U.S. Government.

          9. Royalties and Fees received from sublicensees.

      D. Until the First Commercial Sale of a Licensed Product or Licensed
Process, Licensee shall provide to CMCC at least annually reasonable detail
regarding the activities of Licensee and Licensee's Affiliates and sublicensees
relative to achieving the objectives set forth in the Development Plan in a
timely manner, including but not limited to, reports of financial expenditures
to achieve said objectives, research and development activities, regulatory
approvals, strategic alliances and manufacturing, sublicensing and marketing
efforts.

      E. With each such report submitted, Licensee shall pay to CMCC the
royalties due and payable under this Agreement. If no royalties shall be due,
Licensee shall so report.

      F. On or before the ninetieth (90th) day following the close of Licensee's
fiscal year, Licensee shall provide CMCC with Licensee's certified financial
statements for the preceding fiscal year, including at a minimum a balance sheet
and an operating statement.

                         ARTICLE VI. PATENT PROSECUTION

      A. CMCC shall have primary responsibility for the preparation, filing,
prosecution and maintenance of all patent applications and patents included
within the Patent Rights, using patent counsel reasonably acceptable to
Licensee. CMCC shall seek to obtain Patent Rights in any country designated by
Licensee. CMCC shall furnish to Licensee all documents (or draft thereof)
pertaining to the filing, prosecution or maintenance of the Patent Rights and
seek Licensee's input prior to making decisions concerning the Patent Rights.

      B. Licensee shall reimburse to CMCC the amount of all fees and costs
relating to the filing, prosecution and maintenance of the Patent Rights whether
such fees and/or costs were incurred before or after the date of this Agreement.
CMCC shall provide to Licensee an itemized invoice of all such fees and Licensee
shall pay to CMCC all amounts due under said invoice within thirty (30) days of
the date of said invoice.

      C. In the event CMCC elects not to pursue, maintain or retain a particular
Patent Right licensed to Licensee hereunder, CMCC shall so notify Licensee in
sufficient time for Licensee to assume the filing, prosecution and/or
maintenance of such application or patent at Licensee's expense. In such event,
CMCC shall provide to Licensee any authorization necessary to permit Licensee to
pursue and/or maintain such Patent Right. Licensee shall have no further royalty
obligations under this Agreement with respect to any such Patent Right.

                           ARTICLE VII. INFRINGEMENT

      A. Licensee and CMCC shall each inform the other promptly in writing of
any alleged infringement by a third party of the Patent Rights in the Field of
Use and of any available evidence thereof.

                                      -9-
<PAGE>

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

      B. During the term of this Agreement, CMCC shall have the right, but shall
not be obligated, to prosecute at its own expense any infringement of the Patent
Rights and, in furtherance of such right, Licensee hereby agrees that CMCC may
include Licensee as a party plaintiff in any such suit, without expense to
Licensee. The total cost of any such infringement action commenced or defended
solely by CMCC shall be borne by CMCC. CMCC shall keep any recovery or damages
for past infringement derived therefrom.

      C. If within [**] after having been notified of any alleged infringement,
CMCC shall have been unsuccessful in persuading the alleged infringer to desist
and shall not have brought and shall not be diligently prosecuting an
infringement action, or if CMCC shall notify Licensee at any time prior thereto
of its intention not to bring suit against any alleged infringer then, and in
those events only, Licensee shall have the right, but shall not be obligated, to
prosecute at its own expense any infringement of the Patent Rights in the Field
of Use, and Licensee may, for such purposes, use the name of CMCC as party
plaintiff; provided, however, that such right to bring such an infringement
action shall remain in effect only for so long as the license granted hereunder
remains exclusive. No settlement, consent judgment or other voluntary final
disposition of the suit may be entered into without the consent of CMCC, which
consent shall not be unreasonably withheld. Licensee shall indemnify CMCC
against any order for costs that may be made against CMCC in such proceedings.

      D. In the event Licensee shall undertake the enforcement and/or defense of
the Patent Rights in the Field of Use by litigation, Licensee may withhold up to
[**] percent ([**]%) of the payments otherwise thereafter due to CMCC under
Article IV above and apply the same toward reimbursement of up to [**] percent
([**]%) of Licensee's expenses, including reasonable attorney's fees, in
connection therewith. Any recovery of damages by Licensee for each such suit
shall be applied first in satisfaction of any unreimbursed expenses and legal
fees of Licensee relating to such suit and next toward reimbursement of CMCC for
any payments under Article IV past due or withheld and applied pursuant to this
Article VII. The balance remaining from any such recovery shall be treated as
sublicensing income.

      E. In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the Patent Rights shall be brought against Licensee,
CMCC, at its option, shall have the right, within thirty (30) days after
commencement of such action, to intervene and participate in the defense of the
action at its own expense.

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

      G. Licensee shall during the exclusive period of this Agreement have the
sole right subject to the terms and conditions hereof to sublicense any alleged
infringer for future use of the Patent Rights. Any upfront fees paid to Licensee
as part of such a sublicense shall be shared equally between Licensee and CMCC.
Any other royalties shall be treated as set forth in Article IV, Paragraph A.5.

                                      -10-
<PAGE>

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

                     ARTICLE VIII. UNIFORM INDEMNIFICATION
                            AND INSURANCE PROVISIONS

      A. Licensee shall indemnify, defend and hold harmless CMCC, its corporate
affiliates, current or future directors, trustees, officers, faculty, medical
and professional staff, employees, students and agents and their respective
successors, heirs and assigns (the "Indemnitees"), against any liability,
damage, loss or expense (including reasonable attorney's fees and expenses of
litigation) incurred by or imposed upon the Indemnitees or any one of them in
connection with any claims, suits, actions, demands or judgments arising out of
any theory of product liability (including, but not limited to, actions in the
form of tort, warranty, or strict liability) concerning any product, process or
service made, used or sold pursuant to any right or license granted under this
Agreement; provided, however, that Licensee's indemnification obligations
hereunder shall not apply to any liability, damage, loss or expense to the
extent that it is directly attributable to the negligent activities of the
Indemnitees.

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

      C. Beginning at the time as any such product, process or service is being
commercially distributed or sold (other than for the purpose of obtaining
regulatory approvals) by Licensee or by a sublicensee, Affiliate or agent of
Licensee, Licensee shall, at its sole cost and expense, procure and maintain
commercial general liability insurance in amounts not less than $[**] per
incident and $[**] annual aggregate and naming the Indemnitees as additional
insureds. Such commercial general liability insurance shall provide (i) product
liability coverage and (ii) contractual liability coverage for Licensee's
indemnification under Article VIII, Paragraphs A and B of this Agreement. If
Licensee elects to self-insure all or part of the limits described above
(including deductibles or retentions which are in excess of $[**] annual
aggregate), such self-insurance program must be acceptable to CMCC and the Risk
Management Foundation of the Harvard Medical Institutions, Inc. The minimum
amount of insurance coverage required under this Article VIII, Paragraph C.
shall not be construed to create a limit of Licensee's liability with respect to
its indemnification under Article VIII, Paragraphs A and B of this Agreement.

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

      E. Licensee shall maintain such commercial general liability insurance
during (i) the period that any such product, process or service is being
commercially distributed or sold (other than for the purpose of obtaining
regulatory approvals) by Licensee or by a sublicensee, Affiliate or agent of
Licensee and (ii) a reasonable period after the period referred to above, which
in no event shall be less than fifteen (15) years.

                                      -11-
<PAGE>

      F. Article VIII, Paragraphs A through E shall survive expiration or
termination of this Agreement.

      G. OTHER THAN WARRANTIES SET FORTH HEREIN, CMCC MAKES NO WARRANTY, EXPRESS
OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE WITH
RESPECT TO ANY PATENT, TRADEMARK, SOFTWARE, TRADE SECRET, TANGIBLE RESEARCH
PROPERTY, INFORMATION OR DATA LICENSED OR OTHERWISE PROVIDED TO LICENSEE
HEREUNDER AND HEREBY DISCLAIMS THE SAME.

                          ARTICLE IX. EXPORT CONTROLS

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

                          ARTICLE X. NON-USE OF NAMES

      Licensee shall not use the name of Children's Medical Center Corporation
nor the name of any of its corporate affiliates or employees, nor any adaptation
thereof, in any advertising, promotional or sales literature without prior
written consent obtained from CMCC in each case, except that Licensee may state
that it is licensed by CMCC under one or more of the patents and/or applications
comprising the Patent Rights, and Licensee may comply with disclosure
requirements of all applicable laws relating to its business, including United
States and state security laws.

                             ARTICLE XI. ASSIGNMENT

      A. Except as otherwise provided herein, this Agreement is not assignable
in whole or in part, and any attempt to do so shall be void and of no effect.

      B. CMCC may assign this Agreement at any time to any corporate affiliate
of CMCC without the prior consent of Licensee.

      C. Except as provided in Article XI, Paragraph D below, Licensee may
assign this Agreement to another entity only with the prior written consent of
CMCC, which consent shall not be unreasonably withheld or delayed.

      D. Notwithstanding anything herein to the contrary, in the event Licensee
merges with another entity, is acquired by another entity, or sells all or
substantially all of its assets to another entity, Licensee may assign its
rights and obligations hereunder to, in the event of a

                                      -12-
<PAGE>

merger or acquisition, the surviving entity, and in the event of a sale, the
acquiring entity, without CMCC's consent so long as: (i) Licensee is not then in
breach of this Agreement; (ii) the proposed assignee has a net worth at least
equivalent to the net worth Licensee had as of the date of this Agreement; (iii)
the proposed assignee has available resources and sufficient scientific,
business and other expertise comparable to Licensee in order to satisfy its
obligations hereunder; (iv) Licensee provides written notice of the assignment
to CMCC, together with documentation sufficient to demonstrate the requirements
set forth in subparagraphs (i) through (iii) above, at least fifteen (15) days
prior to the effective date of the assignment; and (v) CMCC receives from the
assignee, in writing, at least fifteen (15) days prior to the effective date of
the assignment: (a) reaffirmation of the terms of this Agreement; (b) an
agreement to be bound by the terms of this Agreement; and (c) an agreement to
perform the obligations of Licensee under this Agreement.

                ARTICLE XII. DISPUTE RESOLUTION AND ARBITRATION

      A. Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, or in
connection with the Agreement, including any dispute relating to patent validity
or infringement, which the parties shall be unable to resolve within sixty (60)
days shall be mediated in good faith. The party raising such dispute shall
promptly advise the other of such claim, dispute or controversy in writing,
describing the dispute in reasonable detail. By no later than five (5) business
says after the recipient has received such notice of dispute, each party shall
have selected a representative who shall have the authority to bind such party
and shall have advised the other party in writing of the name and title of such
representative.

      B. Within fifteen (15) days of receipt of a request for mediation as
described above, the parties agree to commence mediation in the City of Boston,
Commonwealth of Massachusetts in accordance with the policies and procedures of
Endispute, Inc. ("Endispute"), or in the event that Endispute is no longer in
operation, in accordance with the policies and procedures of the American
Arbitration Association. The parties shall select a mediator acceptable to both
of them from a list provided by Endispute. The parties agree to cooperate in
good faith in said mediator's efforts to assist the parties to resolve the
dispute. Each party agrees to pay fifty percent (50%) of the costs of said
mediation. If the matter has not been resolved within thirty (30) days of the
commencement of mediation, either party may request in writing that the matter
be submitted to arbitration in accordance with the following subparagraph.

      C. Any and all claims, disputes or controversies arising under, out of, or
in connection with this Agreement, which have not been resolved by good faith
negotiations between the parties or by mediation shall be resolved by final and
binding arbitration in Boston, Massachusetts, in accordance with the rules of
the American Arbitration Association ("AAA") then obtaining and all expenses, in
connection therewith, will be shared equally, except for the expense of the
parties' respective legal counsels. A single arbitrator shall be mutually agreed
upon and if the parties are unable to agree on a mutually acceptable arbitrator,
an arbitrator shall be chosen in accordance with AAA rules. Any award rendered
in such arbitration shall be final and may be enforced by either party.

                                      -13-
<PAGE>

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

                       ARTICLE XIII. TERM AND TERMINATION

      A. The term of this Agreement shall commence on the Effective Date and
shall remain in effect, on a country-by-country basis, until the expiration of
all Patent Rights in such country.

      B. CMCC may terminate this Agreement immediately upon the bankruptcy,
insolvency, liquidation, dissolution or cessation of operations of Licensee; or
the filing of any voluntary petition for bankruptcy, dissolution, liquidation or
winding-up of the affairs of Licensee; or any assignment by Licensee for the
benefit of creditors; or the filing of any involuntary petition for bankruptcy,
dissolution, liquidation or winding-up of the affairs of Licensee which is not
dismissed within ninety (90) days of the date on which it is filed or commenced.

      C. CMCC may terminate this Agreement upon thirty (30) days prior written
notice in the event of Licensee's failure to pay to CMCC royalties due and
payable hereunder in a timely manner, unless Licensee shall make all such
payments to CMCC within said thirty (30) day period. Upon the expiration of the
thirty (30) day period, if Licensee shall not have made all such payments to
CMCC, the rights, privileges and licenses granted hereunder shall terminate.

      D. Except as otherwise provided in Paragraph C above, CMCC may terminate
this Agreement upon sixty (60) days prior written notice in the event of
Licensee's breach or default of any material term or condition or warranty
contained in this Agreement, unless Licensee shall cure such breach to CMCC's
reasonable satisfaction within said sixty (60) day period. Upon the expiration
of the sixty (60) day period, if Licensee shall not have cured said breach to
the reasonable satisfaction of CMCC, the rights, privileges and license granted
hereunder shall terminate.

      E. Licensee shall have the right to terminate this Agreement at any time
upon six (6) months' prior written notice to CMCC, and upon payment by Licensee
of all amounts due CMCC through the effective date of termination.

      F. Upon termination of this Agreement for any reason, nothing herein shall
be construed to release either party from any obligation that matured prior to
the effective date of such termination. Licensee and any sublicensee thereof
may, however, after the effective date of such termination, sell all Licensed
Products and complete Licensed Products in the process of manufacture at the
time of such termination and sell the same, provided that Licensee shall pay to
CMCC the royalties thereon as required under this Agreement and shall submit the
reports required under this Agreement on the sales of Licensed Products.

            ARTICLE XIV. PAYMENTS, NOTICES, AND OTHER COMMUNICATIONS

      A. All payments, notices, reports and/or other communications made in
accordance with this Agreement, shall be sufficiently made or given on the date
of the mailing if delivered by hand, by facsimile or sent by first class mail
postage prepaid and addressed as follows:

                                      -14-
<PAGE>

      In the case of CMCC:

      Donald Lombardi
      Director, Intellectual Property Office
      Children's Hospital
      300 Longwood Avenue
      Boston, MA 02115

      In the case of Licensee:

      Daniel Ohmstead
      CEO, Reprogenesis, Inc.
      21 Erie Street
      Cambridge, MA 02139

or such other address as either party shall notify the other in writing.

                         ARTICLE XV. GENERAL PROVISIONS

      A. All rights and remedies hereunder will be cumulative and not
alternative, and this Agreement shall be construed and governed by the laws of
the Commonwealth of Massachusetts.

      B. This Agreement may be amended only by written agreement signed by the
parties.

      C. It is expressly agreed by the parties hereto that CMCC and Licensee are
independent contractors and nothing in this Agreement is intended to create an
employer relationship, joint venture, or partnership between the parties. No
party has the authority to bind the other.

      D. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and supersedes all proposals,
negotiations and other communications between the parties, whether written or
oral, with respect to the subject matter hereof.

      E. If any provisions of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be impaired thereby.

      F. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original as against the party whose signature appears
thereon, but all of which taken together shall constitute but one and the same
instrument.

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

                                      -15-
<PAGE>

      H. Licensee agrees to mark any Licensed Products sold in the United States
with all applicable United States patent numbers. All Licensed Products shipped
to or sold in other countries shall be marked in such a manner as to conform
with the patent laws and practices of the country of manufacture or sale.

      I. Each party hereto agrees to execute, acknowledge and deliver such
further instruments and do all such further acts as may be necessary or
appropriate to carry out the purposes and intent of this Agreement.

      J. The paragraph headings contained in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date last written below.

CHILDREN'S MEDICAL CENTER
CORPORATION                              REPROGENESIS

By: /s/ William New                      By: /s/ Daniel R. Omstead
    -----------------------------            ---------------------------------
Name: William New                        Name: Daniel R. Omsted
      ---------------------------              -------------------------------

Title: Vice President, Research          Title: President
       --------------------------               ------------------------------
       Administration

Date: 2/20/00                            Date: 2/20/00
      ---------------------------              -------------------------------

                                      -16-
<PAGE>

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

                                   APPENDIX 1
                                  Patent Rights

U.S. [**]                  filed [**]

U.S. [**]                  filed [**]

PCT/US[**]                 filed[**] (limited to claims directed to the
                           inventions of U.S. [**])

      Australia            [**]
      Canada               [**]
      Japan                [**]
      EPO                  [**]

                                      -17-
<PAGE>

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

                                   APPENDIX 2

                                Development Plan

A.  Licensee will fund research at CMCC under the direction of Dr. James Yoo,
    the Principal Investigator, for [**] years beginning on June 1, 2000 under
    the terms of the Sponsored Research Agreement of even date. Some of the
    research done under this program will involve research and preclinical
    studies on the use of [**] for the applications in the Field(s) of Use
    licensed hereunder.

B.  Licensee will deliver a more detailed updated commercial Development Plan to
    CMCC within [**] of the Effective Date containing all the information
    described in Article III B. of this License Agreement.

C.  Licensee will file an IDE on a Licensed Product or Licensed Process within
    [**] of the Effective Date.

D.  Licensee will maintain a clinical development program in accordance with
    industry standards for conquerable products and the Development Plan.

E.  Licensee will introduce a Licensed Product or Licensed Process to the market
    within [**] of the Effective Date.

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