Document:

EXHIBIT
10.24

 

 

[Date]

[Name]

[Address]

 

Re:          Grant of Nonstatutory Stock Option

 

	
   

  	
  Option Shares:

  	
  Grant Date:

  
	
   

  	
   

  	
   

  
	
   

  	
  Price per share:

  	
  Vesting Start Date:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fully-Vested Date:

  
	
   

  	
   

  	
   

  
	
   

  	
  Option control no.:

  	
  Expiration Date:

  

 

 

Dear [Name]:

 

I
am pleased to confirm that the Company has granted you an option to purchase
shares of our common stock under the 2004 Equity Incentive Plan of MacroPore
Biosurgery, Inc (the “Plan”).  To accept your stock option, please sign the
enclosed copy of this letter and return it to the Human Resources Department in the envelope provided.

 

General terms

 

Your option is intended to be a nonstatutory option.  The basic terms of your option grant are
identified in the information block at the top of this offer letter, but other
important terms and conditions are described in the Plan.  We encourage you to carefully review the
Plan, a copy of which is enclosed.

 

Purchase and payment

 

Subject to the Plan, your option vests (becomes
exercisable) [insert vesting schedule],
calculated to the closest whole share, so that all shares will become
purchasable on the Fully-Vested Date shown above.

 

If you decide to purchase
shares under this option, you will be required to submit a completed Option
Exercise and Stock Purchase Agreement in the form attached, or in another form
approved by the Company, together with payment for the shares.  You may pay for the shares (plus any
associated withholding taxes) using cash, a check, a wire transfer or any other
form of payment listed in section 6.4(c) of the Plan and permitted by

 

 

the Administrator at the time you wish to exercise.  Shares available under this option must be
purchased, if at all, no later than the Expiration Date.

 

We value your efforts and look forward to your
continued contribution.

 

 

	
  Sincerely,

  
	
   

  
	
   

  	
   

  
	
  Christopher J. Calhoun

  
	
  Chief
  Executive Officer

  

 

 

I accept this option and agree to the terms of
this offer letter and the Plan.

 

 

	
   

  	
   

  	
   

  	
  ,
  200

  
	
  Optionee
  signature

  	
  DateExhibit 10.25

 

CONFIDENTIAL TREATMENT REQUESTED

 

EXCLUSIVE DISTRIBUTION AGREEMENT

 

 

between

 

 

MACROPORE BIOSURGERY, INC

 

a Delaware Corporation

 

(“MacroPore”)

 

 

and

 

 

SENKO MEDICAL TRADING CO.

 

a Japanese
Corporation

 

(“Senko”)

 

 

***         Certain
confidential portions of this Exhibit were omitted by means of blackout of the
text (the “Mark”).  This Exhibit has been
filed separately with the Secretary of the Commission without the Mark pursuant
to the Company’s Application Requesting Confidential Treatment under Rule 24b-2
under the 1934 Act.

 

 

EXCLUSIVE DISTRIBUTION AGREEMENT

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Certain
  Definitions

  	
   

  
	
   

  	
  1.1

  	
  Affiliate of Senko

  	
   

  
	
   

  	
  1.2

  	
  Commercialization

  	
   

  
	
   

  	
  1.3

  	
  Commercialization Date

  	
   

  
	
   

  	
  1.4

  	
  Field of Use

  	
   

  
	
   

  	
  1.5

  	
  Gross Annual Sales

  	
   

  
	
   

  	
  1.6

  	
  Products

  	
   

  
	
   

  	
  1.7

  	
  Spinal Field

  	
   

  
	
   

  	
  1.8

  	
  Territory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Distributorship

  	
   

  
	
   

  	
  2.1

  	
  Exclusive Appointment

  	
   

  
	
   

  	
  2.2

  	
  Acceptance of
  Exclusive Appointment

  	
   

  
	
   

  	
  2.3

  	
  Payment for
  Distribution rights

  	
   

  
	
   

  	
  2.4

  	
  Competing Products

  	
   

  
	
   

  	
  2.5

  	
  Independent Contractor

  	
   

  
	
   

  	
  2.6

  	
  Promotional Duties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Minimum
  Purchases and Sales of Products

  	
   

  
	
   

  	
  3.1

  	
  Minimum Purchase
  Requirements

  	
   

  
	
   

  	
  3.2

  	
  Minimum Product Sales

  	
   

  
	
   

  	
  3.3

  	
  Reductions in Quota

  	
   

  
	
   

  	
  3.4

  	
  Samples

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Payment
  for Products, Terms & Restrictions

  	
   

  
	
   

  	
  4.1

  	
  Product Prices

  	
   

  
	
   

  	
  4.2

  	
  Payment Terms

  	
   

  
	
   

  	
  4.3

  	
  Purchase Orders

  	
   

  
	
   

  	
  4.4

  	
  Senko’s Forecasts

  	
   

  
	
   

  	
  4.5

  	
  Invoices

  	
   

  
	
   

  	
  4.6

  	
  Late Payment

  	
   

  
	
   

  	
  4.7

  	
  Exchange Control
  Restrictions

  	
   

  
	
   

  	
  4.8

  	
  Production and Supply
  of Products

  	
   

  
	
   

  	
  4.9

  	
  Product Packaging

  	
   

  
	
   

  	
  4.10

  	
  Title and Risk of Loss

  	
   

  
	
   

  	
  4.11

  	
  United States Export
  Controls

  	
   

  
	
   

  	
  4.12

  	
  Product Changes

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Payments in The Form
  of a Royalty

  	
   

  

 

i

 

	
   

  	
  5.1

  	
  Payments in The Form
  of a Royalty

  	
   

  
	
   

  	
  5.2

  	
  Quarterly Royalty Reports

  	
   

  
	
   

  	
  5.3

  	
  Quarterly Royalty Fee
  Payments

  	
   

  
	
   

  	
  5.4

  	
  Document Retention

  	
   

  
	
   

  	
  5.5

  	
  Document Inspection

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Regulatory
  Matters

  	
   

  
	
   

  	
  6.1

  	
  MacroPore Responsibilities

  	
   

  
	
   

  	
  6.2

  	
  Senko Responsibilities

  	
   

  
	
   

  	
  6.3

  	
  Regulatory Filing Milestone

  	
   

  
	
   

  	
  6.4

  	
  Regulatory Clearance
  Milestone

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Examination
  and Audit of Senko Information

  	
   

  
	
   

  	
  7.1

  	
  Accounting Cooperation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Representations
  and Warranties of Senko

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Representations
  and Warranties of MacroPore

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Confidential Information

  	
   

  
	
   

  	
  10.1

  	
  Definition

  	
   

  
	
   

  	
  10.2

  	
  Non-Disclosure

  	
   

  
	
   

  	
  10.3

  	
  Injunctive Relief

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Warranty

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Trademarks

  	
   

  
	
   

  	
  12.1

  	
  MacroPore’s Marks

  	
   

  
	
   

  	
  12.2

  	
  Use of MacroPore’s
  Marks by Senko

  	
   

  
	
   

  	
  12.3

  	
  Acknowledgment of Ownership

  	
   

  
	
   

  	
  12.4

  	
  Form of Use

  	
   

  
	
   

  	
  12.5

  	
  Submissions

  	
   

  
	
   

  	
  12.6

  	
  Registration

  	
   

  
	
   

  	
  12.7

  	
  Infringement Information

  	
   

  
	
   

  	
  12.8

  	
  Termination of Use

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Patent
  Ownership and Rights to Inventions

  	
   

  
	
   

  	
  13.1

  	
  No Ownership By Senko

  	
   

  
	
   

  	
  13.2

  	
  New Inventions/Improvements

  	
   

  
	
   

  	
  13.3

  	
  Obligations of Employees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Infringement of
  Third Party Rights

  	
   

  
	
   

  	
  14.1

  	
  Patent Rights

  	
   

  
	
   

  	
  14.2

  	
  Ownership

  	
   

  
	
   

  	
  14.3

  	
  Protection
  of MacroPore’s Intellectual Property and Improvements

  	
   

  

 

ii

 

	
  15.

  	
  Third
  Party Infringers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Claims

  	
   

  
	
   

  	
  16.1

  	
  Product Liability Claims

  	
   

  
	
   

  	
  16.2

  	
  Notice from Senko

  	
   

  
	
   

  	
  16.3

  	
  Indemnification by Senko

  	
   

  
	
   

  	
  16.4

  	
  Indemnification by
  MacroPore

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Insurance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Term

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Effect
  of Termination

  	
   

  
	
   

  	
  20.1

  	
  Effect of Full Termination

  	
   

  
	
   

  	
  20.2

  	
  Effect of Partial
  Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Excusable
  Delays

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  General
  Provisions

  	
   

  
	
   

  	
  22.1

  	
  Successors and Assigns

  	
   

  
	
   

  	
  22.2

  	
  Notices

  	
   

  
	
   

  	
  22.3

  	
  Governing Law

  	
   

  
	
   

  	
  22.4

  	
  Resolution of Disputes

  	
   

  
	
   

  	
  22.5

  	
  Headings

  	
   

  
	
   

  	
  22.6

  	
  Construction

  	
   

  
	
   

  	
  22.7

  	
  Waiver and Amendment

  	
   

  
	
   

  	
  22.8

  	
  Severability

  	
   

  
	
   

  	
  22.9

  	
  Cooperation

  	
   

  
	
   

  	
  22.10

  	
  Counterparts

  	
   

  
	
   

  	
  22.11

  	
  Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Schedules

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12

  	
  Trademarks

  	
   

  
	
   

  	
  22.2

  	
  Addresses

  	
   

  

 

iii

 

EXCLUSIVE DISTRIBUTION AGREEMENT

 

THIS
EXCLUSIVE DISTRIBUTION AGREEMENT (this “Agreement”) is made and entered into
effective as of the date the last party hereto signs as shown on the signature
page (“Effective Date”), and is by and between MacroPore Biosurgery, Inc., a
Delaware corporation (“MacroPore”), and Senko Medical Trading Co., a Japanese Corporation (“Senko”).

 

R E C I T A L S:

 

WHEREAS,
MacroPore desires to have Senko develop demand for and sell Products (as
defined herein) within the Territory (as defined herein), and to appoint Senko
to act as the exclusive distributor of Products in the Territory; and

 

WHEREAS,
Senko desires to engage in the sale and distribution of Products within the
Territory and to be designated as the exclusive distributor of Products in the
Territory and has the expertise, staff, experience and has made the necessary
investments to carry out the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual covenants
contained herein, MacroPore and Senko hereby agree as follows:

 

1.                                       Certain Definitions.  As used in this Agreement, the terms set
forth below shall have the following meanings:

 

1.1                                 “Affiliate of Senko” shall mean  any (natural or legal)
person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by Senko, or is under common control with, the
person specified. “Control” shall mean ownership of more than 20% of the shares
of stock entitled to vote for the election of directors in the case of a
corporation, and more than 20% of the voting power in the case of a business
entity other than a corporation.

 

1.2                                 “Commercialization” shall mean the
formal listing of registration and reimbursement points for the first Product
(defined below) so listed with the Japanese Ministry of Health, Labour and
Welfare (“MHLW”) as specially defined in Section 6.1(a) of this Agreement.

 

1.3                                 “Commercialization Date” shall mean
the date upon which Commercialization has occurred as specially defined in Section 6.1(a)
of this Agreement.

 

1.4                                 “Field of Use” shall mean the MacroPore
Thin film technology (SurgiWrap/CardioWrap) for use in anti-adhesion, soft
tissue support and minimizing the attachment of soft tissues through out the
body.  Field of Use does not include
applications in the Spinal Field.

 

1

 

1.5                                 “Gross Sales” shall mean the
total amount of money and/or the value of other consideration received by Senko and/or Senko Medical Instrument Mfg. Co., Ltd.
for the sale and/or distribution of Product (excluding the amount and/or value received by Senko from Senko Medical
Instrument Mfg. Co., Ltd.); provided, however, that in case the Product is sold
by Senko or Senko Medical Instrument Mfg. Co., Ltd. to any Affiliate of Senko
(other than these two companies), the Gross Sales shall be calculated on the
basis of 70% of the reimbursement points which shall be deemed to be the fair
market price rather than the actual transfer price. .

 

1.6                                 “Product(s)”
shall mean the specialized bioresorbable polymeric thin film medical products
manufactured or marketed by MacroPore on the date of this Agreement including
the “SurgiWrap” and “CardioWrap” products, and such additional items as may be
added to the definition of “Products” by mutual agreement in writing between
the parties hereto.

 

1.7                                 “Spinal
Field” shall mean all applications
(including but not limited to: anti-adhesion, anti-scarring, minimizing
the attachment of soft tissues, or soft
tissue support) related to the anatomy of the spine including, but not limited
to, applications in the following: spinal fixation, stabilization and/or
fusion, spinal cord coverings, exiting nerve root coverings, cauda equina
coverings, lamina coverings and vertebral column-cervical, thoracic, lumbar and
sacral.  The spinal field does not
include distal peripheral nerve and other structures extrinsic and distal to
the spine.

 

1.8                                 “Territory”
shall mean the country of Japan.

 

2.                                       Distributorship.

 

2.1                                 Exclusive
Appointment. Upon the terms and subject to the conditions contained herein,
MacroPore hereby appoints Senko as its exclusive distributor of Products in the
Territory for the Field of Use.
By said appointment, MacroPore (a) grants Senko the exclusive right to purchase
Products from MacroPore for resale and distribution in the Territory within the
Field of Use, (b) agrees not to sell,
distribute or otherwise make available (for remuneration or gratuitously) Products
directly into the Territory other than to Senko, and (c) agrees not to
knowingly, directly, or indirectly, sell,
distribute or otherwise make available (for remuneration or gratuitously) Products
to persons outside the Territory for the purpose of resale into the Territory
within the Field of Use.

 

2.2                                 Acceptance
of Exclusive Appointment.  Senko
hereby accepts appointment as MacroPore’s exclusive distributor of Products in
the Territory, as provided in Section 2.1 above, and agrees fully
and faithfully to perform and discharge all of its duties, obligations and
responsibilities as set forth in this Agreement.  Senko agrees that it shall not purchase
Products for resale into or distribution in the Territory from any source
beside MacroPore. Senko agrees that it shall not directly or indirectly sell,
distribute or otherwise make available (for remuneration or gratuitously)
Products outside the Territory or outside the Field of Use, or sell, distribute
or otherwise make

 

2

 

available (for remuneration
or gratuitously) Products
to persons for the purpose of active resale or distribution (whether for
remuneration or gratuitously) outside the Territory or outside the Field of
Use.  SENKO ACKNOWLEDGES AND AGREES THAT
SALES AND DISTRIBUTION OF PRODUCTS OUTSIDE OF THE TERRITORY OR OUTSIDE THE
FILED OF USE MAY RESULT IN THE LOSS OF ALL RIGHTS GRANTED TO IT BY THIS
AGREEMENT AS PRESCRIBED IN SECTIONS 19 & 20 BELOW.

 

2.3                                 Payment
for Distribution Rights.  In
consideration of Senko’s rights hereunder, Senko shall, within ten Japanese business days after the date
hereof, pay MacroPore the sum of One Million Five Hundred Thousand Dollars
($1,500,000). This distribution rights fee is fully earned after the initial
three (3) years after the Commercialization Date. In addition:

 

(a)                                  If
it is determined in good faith by the parties that Commercialization of the
Products is unobtainable, then 50% of the distribution rights  fee will be returned to Senko.

 

(b)                                 If
MacroPore terminates the Agreement at any time within the initial three (3)
years post Commercialization, for any reason except for a material breach by
Senko, a pro-rata share of the distribution rights fee will be returned.

 

2.4                                 Competing
Products.  During the term of this
Agreement, Senko shall not, and shall cause its officers, directors, employees,
agents or representatives including Senko Medical Instrument Mfg. Co., Ltd  (collectively, “Agents”), and any entity in
which Senko has a controlling ownership
interest, directly or indirectly, not to, directly or indirectly, promote, sell
or distribute products within the Territory which are competitive with the
Products so long as the Products are
competitive in the Field of Use in the Territory.

 

2.5                                 Independent
Contractor.  The relationship of
MacroPore and Senko established by this Agreement is that of independent
contractors, and nothing contained in this Agreement shall be construed to (a)
give either party hereto the power to direct and control the day-to-day
activities of the other, or (b) constitute the parties as partners, joint
ventures, co-owners or otherwise as participants in a joint or common
undertaking.  Neither party hereto nor
any of its Agents is the representative of the other party for any purpose
except as expressly set forth in this Agreement, and has no power or authority
as agent, employee or in any other capacity to represent, act for, bind or
otherwise create or assume an obligation on behalf of the other for any purpose
whatsoever.  All financial obligations
associated with Senko’s business are the sole responsibility of Senko.  All sale and other agreements between Senko
and its customers are Senko’s exclusive responsibility and shall have no effect
on Senko’s obligations under this Agreement.

 

2.6                                 Promotional
Duties.

 

(a)                                  Senko
shall (i) exert its best efforts to introduce and diligently promote, sell and
service the Products within the Territory, including, without

 

3

 

limitation, the full and
complete attainment of the Minimum Purchase Guarantee as set forth below in Section 3.1,
(ii) make use of, and disseminate to its customers, all promotional materials
supplied by MacroPore, and (iii) cooperate with MacroPore in activities
directed toward the promotion, sales and servicing of the Products, including
but not limited to Senko’s translation of product literature for the Products
in the Japanese language and attaching Product updates, literature, etc. with
Products sold in the Territory as reasonably requested by MacroPore or required
by the responsible governmental authorities, provided that MacroPore shall be allowed final review of all
product translations and modified marketing literature prior to distribution of
such materials, and (iv) support interest in the Products by
representing the Products at major trade shows in the Territory selected by Senko where similarly
applicable products are promoted.

 

(b)                                 Senko
and its staff shall be conversant with the technology and language relating to
the Products, and shall develop sufficient knowledge of the industry of
MacroPore, the Products (including their specifications, features and benefits)
and products competitive with the Products, so as to be able to explain in
detail to potential customers the differences between the Products and such competitive
products.  Senko shall conduct such sales
training of its personnel as may be necessary to impart such knowledge, and
shall extend commercially reasonable cooperation
to MacroPore in any product education programs which it may establish.

 

(c)                                  Senko
shall be obligated to attend training sessions held by MacroPore at mutually
agreed locations not more than once annually. 
Travel, lodging and related expenses shall be borne by Senko.  Senko shall train and maintain a sufficient
number of capable personnel (i) to service the demands and needs for marketing
and supporting the Products within the Territory, and (ii) to otherwise carry
out the obligations and responsibilities of Senko under this Agreement.

 

(d)                                 Senko
shall at all times display, demonstrate and otherwise represent the Products
fairly in comparison with competitive products from other manufacturers, shall
make no false or misleading representations to customers or other persons with
regard to the Products or MacroPore, and shall not make any representations
with respect to the specifications, features or capabilities of the Products
which are not consistent with those described in literature distributed by
MacroPore.

 

3.                                       Minimum  Purchases and Sales of Products.

 

3.1                                 Minimum
Purchase Requirements.

 

(a)                                  During
the first three years after the Commercialization Date, Senko shall purchase a
minimum of ******* units of Product from MacroPore (the “Minimum
Purchase Guarantee”).

 

*
*** Portions of this page have been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

 

4

 

(b)                                 Within
the first year after Commercialization, both parties agree to have an
opportunity to assess the Minimum Purchase Guarantee in relation to the second
and third year, and in good faith, mutually agree to at the time of such
assessment make any indicated upward or downward correction in the Minimum
Purchase Guarantee for observed market response to the Products, changes of
reimbursement points, changes in the $/Yen exchange rate.

 

(c)                                  For
each year following the third year after Commercialization the parties shall
reach a mutually agreed minimum purchase guarantee prior to the commencement of
that year.

 

3.2                                 Minimum
Product Sales.  Notwithstanding Section 3.1
(a) and (b), if Senko fails to sell ******* units of Product in the
Territory in the first three (3) years after Commercialization (the “Minimum Sales Guarantee”), Senko
agrees that MacroPore may, in its sole discretion, elect to reduce the
distribution rights of Senko to non-exclusive in the Territory for the
remainder of the Term of Senko’s distribution rights under this Agreement. In
the event that such rights reduction occurs, MacroPore may then sell Products in
the Territory through other distribution channels in parallel to Senko.

 

3.3                                 Reductions
in Quota.  Notwithstanding the provisions of Sections 3.1 and 3.2, the Minimum Purchase
Guarantee and the Minimum Sales Guarantee for any period shall be reduced (a)
in the case of subpart (i) below, by
an amount equal to 1.5 times the aggregate number of units of Product not
supplied by MacroPore against purchase orders issued by Senko in accordance
with Section 4.3, and (b) in
the case of subpart (ii) below, by an amount equal to 1.5 times the aggregate
number of units  of Product affected by
such recall or withdrawal:

 

(i)                                     If
MacroPore materially and substantially fails for any reason to deliver ordered
Products by the date scheduled for delivery thereof pursuant to purchase orders
issued by Senko in accordance with Section 4.3, including but not limited
to a failure to deliver Products that conform to the then current specifications
and such failure is not cured within 30 days; or

 

(ii)                                  If
a Product covered by this Agreement is recalled from the market or withdrawn
from sale for reasons of product safety or quality as determined by any
applicable governmental authority or by the mutual agreement of the parties.

 

3.4                                 Samples.  MacroPore will provide Senko with an appropriate
number of samples at mutually agreed upon sample prices, for assisting Senko in
mutually agreed upon sales activities.  A
formula of supply will be determined in good faith discussions between the
parties.

 

*
*** Portions of this page have been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

 

5

 

4.                                       Payment for Products, Terms &
Restrictions.

 

4.1                                 Product
Prices.  Product will be transferred
at  a transfer price of FOB (San Diego)
$******* (USD) per sheet for 130mm x 200mm and FOB (San Diego)
$****** (USD) for 100mm x 130mm. In the event of reasonably unforeseen substantial
changes in terms of the USD/Yen exchange rate, reimbursement rates, or
manufacturing costs which substantially influence the business of either party,
both parties agree to discuss in good faith and mutually determine an equitable
price adjustment formula to moderate the negative effects to the party so
impacted by such changes. The application of such formula may result in a
higher or lower transfer price. In addition to such transfer price, Senko must
also make the payments in the form of a Royalty as described in Section 5.

 

4.2                                 Payment
Terms.  All payments by Senko under
this Agreement shall be made in United States Dollars, free of all
withholdings, and shall not be reduced by any exchange or collection charges or
by any taxes imposed under the laws of any country other than the United States
of America, and shall be due and payable within forty-five (45) days of
invoice.

 

4.3                                 Purchase
Orders.  Senko shall submit purchase
orders for Products to MacroPore in writing, whether by mail, telecopier,
telegram or otherwise.  Each purchase
order shall, at a minimum, set forth the product numbers, quantities, delivery
dates, shipping instructions and shipping addresses for all Products
ordered.  Each purchase order shall be
subject to and governed by the terms of this Agreement.  Purchase orders shall be binding upon Senko
and MacroPore to the extent that they comply with all of the terms of the
Agreement. The terms and conditions of this Agreement shall so govern and
supersede any additional or contrary terms set forth in Senko’s purchase order
or any MacroPore or Senko acceptance, confirmation, invoice or other document
unless duly signed by an officer of Senko and an officer of MacroPore and
expressly stating and identifying which specific additional or contrary terms
shall supersede the terms and conditions of this Agreement.  Senko will place orders at least sixty (60)
days in advance of the earliest scheduled delivery date.  Senko may cancel or reschedule purchase orders
for Products only with MacroPore’s prior written approval.  Notwithstanding the foregoing, any purchase
order may be cancelled by Senko as to any Products that are not delivered
within 60 days after the delivery date requested by Senko pursuant to a
purchase order, and any such cancellation shall not limit or affect any
contract remedies available to Senko with respect thereto. Any such cancellation
by Senko must be by written notice to MacroPore given within 10 business days
after such 60th day.

 

4.4                                 Senko’s
Forecasts.  Senko shall provide
MacroPore with a six-month sales plan to be mutually agreed upon indicating by
month the number of Products

 

*
*** Portions of this page have been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

 

6

 

anticipated to be sold by
Senko or purchased by Senko for use as samples in the Territory.  The Plan shall be updated by Senko twice per
year, for a rolling successive six-month period.  Each Plan shall be used for purposes of
facilitating Senko’s marketing plans, MacroPore’s manufacturing plans, and
meeting the lead times required by certain of MacroPore’s suppliers, but are
not legally binding on Senko or MacroPore in any manner.

 

4.5                                 Invoices.  MacroPore shall invoice Senko for the
purchase price of the Products upon MacroPore’s delivery FOB (San Diego) of
such Products to Senko’s carrier.

 

4.6                                 Late
Payment.  If Senko fails to pay to
MacroPore any amount when due, in addition to any other remedies of MacroPore,
Senko agrees to pay interest on the overdue balance at the rate of eight and
one-half (8.5%) per annum or, if such rate exceeds the maximum rate permitted
by law, Senko shall pay interest on such overdue balance at the maximum rate
permitted by law.  Payments received from
Senko when any overdue balance exists shall be applied first against accrued
interest.

 

4.7                                 Exchange
Control Restrictions.  If, because of
exchange control restrictions in the Territory, Senko is unable to make any
payment when due in United States Dollars and free of any exchange or
collection charges and of any taxes imposed under the laws of any country other
than the United States of America, Senko shall, upon written instructions from
MacroPore, deposit such payment in the name of MacroPore or its nominee in such
bank or other institution in the Territory and in such type of account as shall
be specified by MacroPore.  MacroPore
shall be entitled to all interest earned on such deposited amounts.

 

4.8                                 Production
and Supply of Products.  During the
term of this Agreement or thereafter, MacroPore reserves the right, without
obligation or liability to Senko, to manufacture, produce, assemble, warehouse
or source the Products at any worldwide location, including locations outside
of the United States of America and locations within or outside the Territory unless it may adversely affect the regulatory
status of Products under the Shonin (as defined in Section 6.1(a)) and/or
the incessant supply of the Products to Senko.

 

4.9                                 Product
Packaging.  MacroPore agrees to cause
the Products to be packed pursuant to its standard export procedure and to
deliver the Products to Senko in accordance with the terms of each purchase
order in so far as such purchase order complies with the terms of this
Agreement. The above notwithstanding, it is the obligation of the Senko to
inform and assist MacroPore in complying with regulations on this and other
requirements relating to the importation of Products into the Territory.

 

4.10                           Title
and Risk of Loss.  Title to Products
and all risk of loss shall pass from MacroPore to Senko at the time and place
of MacroPore’s delivery of Products to Senko, FOB Shipping Point with a carrier
specified by or reasonably acceptable to

 

7

 

Senko.  Senko shall be solely responsible for insuring
Products after shipment to Senko, FOB Shipping Point.

 

4.11                           United
States Export Controls.  MacroPore’s
obligation to sell and deliver Products to Senko shall be subject in all
respects to such laws and regulations of the United States of America as shall
from time to time govern the sale and delivery of goods abroad by persons
subject to the jurisdiction of the United States of America.  Senko shall not directly or indirectly
export, re-export or transship any of the Products, even though otherwise
permitted by this Agreement or by subsequent authorization from MacroPore,
except as shall be permitted by the laws and regulations of the United States
of America in effect from time to time. 
(MacroPore shall endeavor to keep Senko informed of changes in such laws
and regulations, but assumes no obligation to do so.)  Upon the reasonable request by MacroPore,
Senko shall give written assurances against such export, re-export or
transshipment.

 

4.12                           Product
Changes.   MacroPore shall not, without Senko’s prior written
consent, modify the specifications for a Product in a manner that materially
affects the performance or regulatory approval status of the Product or
materially increases Senko’s costs or expenses.

 

5.                                       Payments in the Form of a Royalty.

 

5.1                                 Payments
in the Form of a Royalty.   In
consideration for MacroPore’s sale of products and grant of exclusivity and
other rights to Senko hereunder, Senko agrees to pay to MacroPore, in addition
to the transfer price in Section 4, payments in the form of a royalty
(hereafter “royalty” or “royalties”) in the amount of 5% of  Senko’s Gross Sales for a period of three (3)
years from the Commercialization Date.

 

5.2                                 Quarterly
Royalty Reports.  Beginning on
Commercialization, and covering the period of the royalty obligation provided
in Section 5.1,  Senko will make
quarterly fee reports to MacroPore on or before each January 21 (for the
quarter ending December 31), April 21 (for the quarter ending March 31),
July 21 (for the quarter ending June 30) and October 21 (for the
quarter ending September 30) of each year. 
Each fee report will cover Senko’s most recently completed calendar
quarter and will, at a minimum, show:

 

(a)                                  The
gross invoice prices for all Products sold in the Territory and any payments
thereon and other income (received by Senko and/or Senko Medical Instrument Mfg. Co., Ltd.) for those Products
sold during the reporting period;

 

(b)                                 The
total royalty fees due, in Japanese Yen,
payable to MacroPore for the quarter being reported;

 

8

 

(c)                                  The
amount of the cash and the amount of the cash equivalent of the non-cash
consideration including the method used to calculate the non-cash
consideration; and

 

(d)                                 Any
other information reasonably necessary to confirm Senko’s calculation of its
royalty obligations hereunder.

 

5.3                                 Quarterly
Royalty Fee Payments.  All fees payable to MacroPore
pursuant to this Section 5 shall be paid simultaneously with the delivery
of the quarterly report with which they correspond in Japanese YEN unless
otherwise specified in writing.

 

5.4                                 Document
Retention.  Senko will keep accurate
books and records showing all Products sold in or for the Territory sufficient
to verify the quarterly reports required in Section 5.2. Such books and
records will be preserved for at least three (3) years after the date of the
payment to which they pertain.

 

5.5                                 Document
Inspection.  The books and records
required to be maintained pursuant to Section 5.4 will be open to
inspection by experts appointed by MacroPore and bound by their obligation to
professional secrecy not more than once
per calendar year, upon reasonable notice, at reasonable times and in a manner
that is not disruptive to the conduct of operations of Senko, to determine
their accuracy and assess Senko’s compliance with the terms of this
Agreement.  MacroPore shall bear the fees
and expenses of such examination.  If,
however, an error in fees is discovered in any examination, and the correction
of such error would result in an additional payment to MacroPore of more than
five percent (5%) of the total fees due for any year, then Senko shall bear the
fees and expenses related to such examination.

 

6.                                       Regulatory Matters.

 

6.1                                 MacroPore
Responsibilities.

 

(a)                                  MacroPore
will be responsible to obtain regulatory approval (“Shonin”) under Manufacturing
Approval of Foreign Manufactured Medical Devices and retain In-Country Caretaker (ICC).  MacroPore shall be responsible for all
preparation and translation of the regulatory application materials as well as
any necessary product testing, pre-clinical and/or clinical trials. MacroPore
will apply for the Shonin and reimbursement points as a bioresorbable barrier
for adhesion prevention, adhesion control 
and adhesion reduction. The application will cover general, OB/GYN and
cardiac surgeries. Nevertheless, the product registration/reimbursement will be
considered complete (or “formally listed”) if one or more of the above
specified surgical areas (general, OB/GYN and cardiac) are approved with a
regulatory clearance for adhesion prevention, or, adhesion control and adhesion
reduction, or, with a clearance equal to or greater than the 510 K clearance
received by MacroPore on September 22, 2003 for the minimization of
attachment of soft tissue (“MAST”) in the U.S. and reimbursement points are
established based upon the clearance achieved; provided,

 

9

 

however,
that MacroPore agrees that the Minimum Purchase Guarantee and the Minimum Sales
Guarantee shall be reduced appropriately by consultation with Senko, in good
faith, taking into account the market size for each area in the Territory if
any one of the three surgical areas fails to be approved or reimbursement points
are not established for any one of said surgical areas as of the
Commercialization Date.

 

(b) MacroPore shall be responsible for obtaining all
necessary export licenses and permits as may be required to export the Products
from the country of manufacture into the Territory.  Senko shall cooperate fully with MacroPore in
its efforts to obtain any such approvals.

 

(c) MacroPore shall be responsible for compliance with
present and future applicable statutes, laws, ordinances and regulations of
national, federal, state and local governments now or hereafter in effect
relating to the design, manufacture and/or quality of Products.  Without limitation of the foregoing,
MacroPore represents and warrants to Senko that all Products sold and delivered
to Senko under this Agreement will have been designed, manufactured and labeled
in accordance with all applicable requirements. MacroPore shall inform Senko of
all serious and relevant adverse experience outside the Territory as soon as
possible whenever MacroPore becomes aware of such experiences. MacroPore also
shall inform Senko of any matters required so that Senko will be able to
observe the Good Manufacturing Practice for Import (GMPI) imposed in the
Territory. The GMPI agreement shall be otherwise discussed and signed by both
parties, but it is expressly agreed and understood that the terms of this
Agreement shall supercede and be controlling over any conflicting or contrary
terms found in the GMPI Agreement.

 

(d) MacroPore at its expense will provide Senko with any
applicable surgical procedure manuals and a reasonable and agreed level of
sales and technical training for Senko’s dedicated sales personnel for Products
and other appropriate Senko personnel. MacroPore and Senko will work together
to provide training to Physicians in the Territory at least once annually at a
location reasonably satisfactory to the parties. Each party shall bear their
own expenses for the provision of such training, and the training sessions
shall accommodate up to (50) Physicians. 
MacroPore shall not be required to pay any attending Physicians expenses
(e.g. travel, accommodations, compensation etc...) related to attending such
training.

 

(e) MacroPore will work jointly with Senko in the
preparation of mutually acceptable Product packaging and labeling. MacroPore
will provide its standard operations and technical manuals to be modified by
Senko for use with the Products. MacroPore at its expense shall provide Senko
from time to time as requested by Senko with samples of Product sales and
marketing materials. Senko shall be responsible for reproduction and
distribution of such materials.  Senko
shall be responsible for the translation, adaptation and/or modification of
MacroPore’s sales and marketing materials as deemed appropriate by Senko, and
MacroPore shall supply any available artwork or other materials reasonably
requested by Senko for use solely in connection therewith. Notwithstanding the
foregoing, MacroPore shall have final review of all product

 

10

 

translations,
modified marketing materials and literature prior to distribution in the
Territory.

 

6.2                                 Senko
Responsibilities. Senko agrees to be designated and act as MacroPore’s
importer and distributor for the Products in the Territory (and to obtain any
necessary licenses and permits for such importation and distribution).  Senko agrees
to act as the Appointed Marketing Approval Holder for the Products in the
Territory and shall be responsible for compliance with any and all applicable Pharmaceutical Affairs Laws
(PAL) and with any such other laws which
an importer or distributor of medical implants in the Territory must comply.  In addition, Senko shall obtain all (other
than MacroPore responsibilities in Section 6.1 above) necessary government
approvals,  consents, licenses and
permits in the Territory or any governmental or political subdivisions thereof
(collectively, “Approvals”), and for complying, and/or assisting MacroPore with
complying with any and all applicable statutory, administrative or regulatory
requirements of the Territory or any governmental or political subdivisions
thereof (collectively, “Laws”), that are necessary for the importation, sale
and storage of the Products within the Territory. These responsibilities
include, or may include, without limitation, testing, warehousing, and
tracking, product labeling and packaging, periodic evaluations of products,
adverse event reporting, product documentation such as traceability, samples,
sales literature and records, and documentation and reporting of recalls, which
documentation shall be maintained by the Senko for 15 years after termination or expiration of this Agreement, any
product registrations with any government agency or health authority, or any
registration, approvals, or filing of this Agreement.  Without limiting the generality of the
foregoing:

 

(a)                                              Senko
shall bear all costs, fees and expenses associated with obtaining Approvals, as
well as any other fees related to complying with laws of the Territory (other
than MacroPore responsibilities in Section 6.1 above, all costs, fees and expenses associated with
which shall be borne by MacroPore). 
MacroPore shall bear all costs, fees and expenses associated with
obtaining any approvals or complying with the laws of the United States and all other countries, if any, of
manufacture of the Products.

 

(b)                                             The
Shonin  (and/or any other Product registration and
approval necessary for the importation and sale of Products in the Territory)
issued by any governmental agency or health authority which are necessary to import and sell the Products within the
Territory shall be the sole property of MacroPore and shall be issued to, and
in the name of, MacroPore. In the event that any right, title, or interest in
and to any such Shonin should be
obtained by Senko in contravention hereof, Senko shall hold the same on behalf
of MacroPore and shall transfer the same to MacroPore or its designee upon
request and without expense to MacroPore.

 

(c)                                              Senko
shall maintain complete and accurate records
of all Products sold by Senko, any Affiliate of Senko and any subdistributors
in sufficient detail to enable
MacroPore to conduct an effective recall of Products if MacroPore determines that such a recall is required or
otherwise necessary or
appropriate.  In the event of a recall of any of the
Products initiated by MacroPore, or by Senko if  directed by MHLW,

 

11

 

Senko
and/or MacroPore will cooperate with and assist the other party in
effecting a recall, including promptly contacting any
purchasers that either party reasonably desires
to be contacted, and Senko shall promptly communicate to such purchasers the information or instructions reasonably
necessary to be transmitted relating
to a recall, all of which customer
contact and communication shall be
conducted by Senko. Notwithstanding the foregoing,
MacroPore shall pay, or reimburse Senko, for all other costs of effecting a recall, including any shipping costs related to returning recalled Products to MacroPore and
replacing such recalled Products with new Products at MacroPore’s expense, unless such recall is caused by
Senko’s (including any of its Affiliates and subdistributors) translations or
modification of product labeling or marketing materials and MacroPore has not
approved such translation or modification.

 

6.3                                 Regulatory
Filing Milestone. Senko shall pay MacroPore the nonrefundable amount of
$1,250,000 (One Million Two Hundred and Fifty Thousand US Dollars) within two
(2) weeks of  MacroPore notifying Senko
of completion of filing of the initial regulatory application to MHLW for the
Products as a bioresorbable barrier for adhesion prevention,  adhesion control  and adhesion reduction for applications in
general, OB/GYN and cardiac surgeries.  Photocopies
of the application documents submitted to MHLW are to be provided to Senko.

 

6.4                                 Regulatory
Clearance Milestone. Senko shall pay MacroPore the nonrefundable amount of
$250,000 (Two Hundred and Fifty Thousand US Dollars) within two (2) weeks of
MacroPore’s notice to Senko of the achievement of Commercialization.

 

7.                                       Examination and Audit of Senko
Information.  Senko (a)
shall maintain for at least three (3) years its books, records, contracts and
accounts relating to the marketing and sale of the Products, including, without
limitation, information concerning customer accounts, inventory levels, unit
sales, Product prices, Product margins, competitor information, market trends
and strategies, and promotional activities (collectively, “Senko Information”),
and (b) shall permit examination thereof at all reasonable times and upon
reasonable notice (in no event shall such notice be less than ten (10) Japanese business days)
by MacroPore.  Senko shall allow
representatives of MacroPore at any reasonable time to audit all relevant
Product Information owned or controlled by Senko.  Senko shall provide MacroPore with copies of
any documents reasonably requested
by MacroPore as a result of such examination or audit.

 

7.1                                 Accounting
Cooperation.        From time to
time MacroPore may need assistance from Senko in complying with various
accounting rules and regulations in keeping with its status as a publicly
traded entity in the U.S.  Occasionally
MacroPore requires information that cannot always be gleaned from publicly
available records.  Accordingly, Senko agrees to make commercially reasonable efforts to
provide requested information about its operations at MacroPore’s expense, provided that Senko shall be entitled to
withhold any information it deems, in its sole discretion, to be compromising
to its interests.

 

12

 

8.                                       Representations and Warranties
of Senko.  Senko represents and
warrants to MacroPore that it:

 

(a)                                  Has
full and unrestricted authority to enter into this Agreement and, by entering
into or performing under this Agreement, it will not breach any agreement to
which it is currently a party;

 

(b)                                 Has
the legal right, free of any right or interest of any third party, to disclose
all information disclosed to the other party hereunder; and

 

(c)                                  Currently
is in compliance with all Laws.

 

9.                                       Representations and Warranties
of MacroPore.  MacroPore
represents and warrants to Senko that it:

 

(a)                                  Has
full and unrestricted authority to enter into this Agreement and by entering
into or performing under this Agreement, it will not breach any agreement to which
it is currently a party, and

 

(b)                                 Has
the legal right, free of any right or interest of any third party, to disclose
all information disclosed to the other party hereunder; and

 

(c)                                  Currently
is in compliance with all Laws.

 

10.                                 Confidential Information.

 

10.1                           Definition.  Each of the parties hereto recognizes that
the relationship created by this Agreement may involve access by Senko and
MacroPore to information of substantial value to the other party, including,
but not limited to, designs, drawings, plans, software, programs, material and
manufacturing specifications, devices, trade secrets, applications, formulae,
know-how, methods, techniques, and processes (whether related to MacroPore’s
Patents, as defined herein, or otherwise), as well as financial, business,
marketing and product development information, and customer lists relating to
the Products (collectively, “Confidential Information”), provided that
Confidential Information shall not include information (a) in the public domain
or which subsequently falls into the public domain, (b) specifically intended
by MacroPore for disclosure to customers of Senko, (c) which the non-disclosing
party can prove was already known to it prior to the date of this Agreement, or
(d) disclosed to the non-disclosing party in good faith by a third party having
a legal right to do so.

 

10.2                           Non-Disclosure.  Each of the parties hereto acknowledges and
agrees that the other party owns all right, title and interest in and to such
party’s Confidential Information.  Each
of the parties hereto further agrees that it shall (a) maintain the secrecy and
confidentiality of all Confidential Information which comes to its attention,
(b) take all necessary precautions to prevent any disclosure of Confidential
Information by any person within its  control having access to said Confidential

 

13

 

Information, and (c)
during the term of this Agreement and for so long as Confidential Information
does not enter into the public domain through an act or omission of the disclosing party, neither publish,
disclose nor disseminate any part of such Confidential Information in any
manner (except as required by law), or use the same, without the prior written
consent of the disclosing party.

 

10.3                           Injunctive
Relief.  Each of the parties hereto
understands and agrees that the Confidential Information has special value, the
loss of which cannot be reasonably or adequately compensated in damages or in
an action at law, and therefore, in the event of any breach or violation of the
provisions of this Section 10 by MacroPore or Senko, the
non-breaching party shall be entitled to equitable relief by way of injunction
without the necessity of proving actual damages, which relief shall be in
addition to, and not in limitation of, any other relief or rights to which such
party may be entitled.  The terms and
provisions of this Section 10 shall survive any termination or
expiration of this Agreement.

 

11.                                 Warranty.

 

(a)                                  MacroPore
represents and warrants to Senko that all Products sold under this Agreement
will have been designed, manufactured, labeled, packaged and sold to Senko in
accordance with all applicable laws and regulations, including (as applicable)
FDA GMP requirements, ISO 13485
certification or successor requirements. Upon prior written notice, MacroPore
shall cause Senko’s regulatory personnel to be provided with reasonable access
from time to time to the facilities and records of MacroPore for the purpose of
confirming MacroPore’s and the Product’s compliance with all applicable laws
and regulations.

 

(b)                                 MacroPore
warrants to Senko and to Senko’s customers that Products shall, when delivered
to Senko, meet the specifications
and, for a period of two (2) years
after delivery of the Product to  Senko,
be free from defects in materials and workmanship. The foregoing express
warranty is contingent upon proper use of the Products in the applications for
which they were intended as indicated in the Product label claims.  Senko shall invoice MacroPore for, and
MacroPore shall promptly pay, all shipping, transportation, insurance and other
expenses actually incurred in replacing Products that were under warranty.  MacroPore will repair, replace or credit
Senko’s account for any Product that MacroPore reasonably determines does not
comply with this warranty at the time of shipment to Senko or that otherwise
does not conform to the express warranties herein; provided, however, that
MacroPore shall have no obligation under this warranty to repair, make replacements,
or grant credits necessitated in whole or in part by accidents; failure to
maintain in accordance with any transportation, storage, handling, or
maintenance, instructions supplied by MacroPore; damage by acts of nature,
vandalism, burglary neglect or misuse; or other fault or negligence of Senko or
(except for any strict liability of MacroPore) the customer or user.  Prior to returning any Product alleged to be
defective, Senko shall notify MacroPore in writing of the claimed defect and
shall include the model and lot/serial number of such Product, as well as the
number and date of the invoice therefor. 
No Product shall be returned without first obtaining a

 

14

 

returned goods
authorization from MacroPore, which authorization shall not be unreasonably
withheld.  THE EXPRESS WARRANTIES SET FORTH ABOVE ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS
OR IMPLIED, WHICH ARE HEREBY SPECIFICALLY
DISCLAIMED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE. IN NO EVENT SHALL
MACROPORE’S LIABILITY FOR PRODUCT WARRANTY INCLUDE ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES.

 

12.                                 Trademarks.

 

12.1                           MacroPore’s
Marks.  MacroPore owns or has the right
to use the trademarks, service marks and/or trade names listed on Schedule 12
in connection with the sale of the Products in the Territory (“MacroPore’s
Marks”), Certain of MacroPore’s Marks may be registered in the jurisdiction(s)
which comprise the Territory.

 

12.2                           Use
of MacroPore’s Marks by Senko. 
MacroPore hereby grants to Senko an exclusive right and license to use MacroPore’s Marks solely in
connection with the promotion, sale and distribution of the Products within the
Territory.  This right and license shall
not be assignable or transferable by, or subject to any encumbrance of, Senko
in any manner whatsoever. Senko shall have the right to grant any
sublicenses in the Territory solely for
use in connection to the Products for sale within the Field of Use without
MacroPore’s prior written consent.  All
rights with respect to MacroPore’s Marks and all other trademarks, service
marks and trade names used by MacroPore not specifically granted to Senko in
this Agreement shall be and hereby are reserved to MacroPore. Nothing in this
Agreement shall be deemed to constitute or result in an assignment of any of
MacroPore’s Marks to Senko or the creation of any equitable or other interests
therein.  Neither Senko nor any of its
Affiliates or sublicensees shall use any of MacroPore’s Marks in any manner as
a part of its business, corporate or trade name or otherwise.

 

12.3                           Acknowledgment
of Ownership.  Senko acknowledges
that (a) MacroPore owns MacroPore’s Marks and all goodwill associated with or
symbolized by MacroPore’s Marks, (b) Senko has no ownership right in or to any
of MacroPore’s Marks, and (c) Senko shall acquire no ownership interest in or
to any of MacroPore’s Marks by virtue of this Agreement.  Senko shall do nothing inconsistent with
MacroPore’s ownership of MacroPore’s Marks and related goodwill (such as using
or registering any similar name or mark) and agrees that all use of MacroPore’s
Marks by Senko shall inure to the benefit of MacroPore.

 

12.4                           Form
of Use.  Senko shall use MacroPore’s
Marks only in the form and manner prescribed from time to time by
MacroPore.  Senko shall mark each Product
and all advertising, promotional or other materials bearing any of MacroPore’s
Marks with such notices as MacroPore may require, including, but not limited
to, notices that MacroPore’s Marks are trademarks of MacroPore and are being
used with the permission of MacroPore.

 

15

 

12.5                           Submissions.  Senko shall submit to MacroPore for its
written approval before any use is made thereof, representative samples of all
Products, stationery, invoices, catalogs, brochures, packages, containers, and
advertising or promotional materials bearing any of MacroPore’s Marks which
Senko or its Agents prepare.  Senko shall
not make any use of MacroPore’s Marks unless and until it receives MacroPore’s
prior written approval.  MacroPore shall
have the absolute right to approve or reject any proposed use of any of
MacroPore’s Marks, in its sole discretion.

 

12.6                           Registration.  MacroPore shall have the sole right to take
such action as it deems appropriate to obtain trademark registration in the
Territory for any of MacroPore’s Marks. 
If it shall be necessary for Senko to be the applicant to effect any
such registrations, Senko shall cooperate with MacroPore to effect any such
registrations, and hereby does assign all of its right, title and interest in
and to each such application, and any resulting registration, to MacroPore, and
shall execute all papers and documents necessary to effectuate or confirm any
such assignment.  Senko shall perform all
reasonable and necessary acts and execute all necessary documents to effect the
registration of MacroPore’s Marks as MacroPore may request, all at MacroPore’s
sole expense.  Senko shall not obtain or
attempt to obtain in the Territory, or elsewhere, any right, title or interest,
registration, or otherwise, in or to MacroPore’s Marks, or any of them.  In the event that any such right, title or
interest should be obtained by Senko in contravention hereof, Senko shall hold
the same on behalf of MacroPore and shall transfer the same to MacroPore upon
request and without expense to MacroPore.

 

12.7                           Infringement
Information.  Senko shall notify
MacroPore promptly of any unauthorized use of MacroPore’s Marks or of any mark
confusingly similar thereto which comes to its attention.  MacroPore shall have the sole right to
determine whether or not any action shall be taken against any such
infringement, and Senko shall not institute any suit or take any action on
account of any such infringement or imitation without first obtaining the
written consent of MacroPore to do so. 
Senko shall provide MacroPore with all reasonable assistance, at
MacroPore’s expense, in any prosecution of any such action, including suits in
which Senko is joined as plaintiff, MacroPore shall have the sole right to
employ counsel and to direct the handling of the action and litigation and any
settlement thereof, and Senko shall not share in any of the proceeds of
judgment or settlement resulting from any such action.

 

12.8                           Termination
of Use.  Upon expiration or earlier
termination of this Agreement, Senko shall cease using MacroPore’s Marks in any
manner, either similar or dissimilar to the use enumerated above.

 

13.                                 Patent Ownership and Rights to
Inventions.

 

13.1                           No
Ownership By Senko.  Subject to Section 13.2
below, Senko shall not be deemed by anything contained in this Agreement or
done pursuant to it to acquire any right, title or interest in or to  MacroPore’s Patents (as defined in Section 15)
or any patent now or hereafter covering or applicable to any Product, nor in or
to any

 

16

 

invention or improvement
now or hereafter embodied in any Product, whether or not such invention or
improvement is patentable under the laws of any country.

 

13.2                           New
Inventions/Improvements.  If during
the term of this Agreement or within one (1) year after the date of its
termination, Senko, any of its Agents, or any person acting under contract with
Senko, invents or designs any improved Product, whether or not patented or
patentable in any jurisdiction, Senko shall make or cause a prompt and full
disclosure to MacroPore of such invention, design, or improvement and shall
grant, or cause the grant of a perpetual, irrevocable, non-exclusive,
royalty-free worldwide license to MacroPore to use such invention, design or
improvement, with an unlimited right in MacroPore to sublicense under such
license.  At MacroPore’s request, Senko
promptly shall supply or cause to be supplied to MacroPore such drawings,
specifications, engineering data and shop practice information as may be
reasonably necessary to enable MacroPore to use the invention, design or
improvement.  Senko’s obligations under
this Section 13.2 shall continue for so long after any termination
of the Agreement as may be necessary for MacroPore to obtain effective use of
the rights granted herein.

 

13.3                           Obligations
of Employees.  Senko shall enter into
appropriate contracts with its present and future Agents and with any persons
acting under contract with Senko, obligating such Agents and other persons to
grant the licenses and perform the other acts required under Section 13.2
above.  All such information and rights
of inventions shall be deemed Confidential Information of MacroPore.

 

14.                                 Infringement of Third Party Rights.

 

14.1                           Patent Rights.

 

(a)                                  Defense
of Claims.  MacroPore shall defend (without substantial delay), or at its option settle, any suit instituted against Senko that
is based on an allegation that any Product (as sold by Senko in and for the
Territory within the Field of Use) constitutes an infringement of any patent or
any other intellectual property right. 
MacroPore shall have sole control of defense of any such action, including
any appeals and negotiations for the settlement or compromise thereof and shall
have full authority to enter into a binding settlement or compromise; provided
that MacroPore shall not enter into any settlement or compromise that may
adversely affect Senko without Senko’s consent, which consent shall not be
unreasonably withheld.  MacroPore shall
indemnify, subject to the limitations set forth herein, Senko against any final
award of damages and costs made against Senko and any settlement amounts as a
result of any such action.  In order to
qualify for such indemnification, Senko shall notify MacroPore promptly in
writing of such claim, suit or proceeding and give MacroPore such information
and assistance as MacroPore may reasonably request to settle and defend any
such claim; provided the failure to give such notice, information and
assistance shall only relieve MacroPore of liability under this subsection to
the extent such failure adversely affects MacroPore’s ability to defend such
action.

 

17

 

(b)                                 Limitation of Liability. MacroPore shall have no liability of any kind
to Senko under Section 14.1(a) or based upon any other claim Senko may
have to the extent any such claim is based upon or arises out of (a) the use of
any Product in combination with an apparatus or device not manufactured,
supplied or approved by MacroPore, (b) the use of any Product in a manner for
which it was not designed or intended to be used, or (c) any modification of
any Product by Senko or any third party that causes it to become infringing.

 

(c)                                  Replacement Product. 
Notwithstanding the foregoing, if it is adjudicatively determined that
any Product infringes, or in MacroPore’s sole opinion, may be found to infringe
a third party’s patent or other intellectual property rights, or if the sale or
use of the Products is, as a result, enjoined, then MacroPore shall, at its
option and expense, either: (i) procure for Senko the right under such patent
to sell or use, as appropriate, the Products; or (ii) replace the Products with
other noninfringing functionally equivalent products; or (iii) modify the
Products to make the Products functionally equivalent and noninfringing, remove
any prior version of the Products in Senko’s inventory and refund the aggregate
payments made therefor by Senko; or (iv) if the use of the Products is
prevented by injunction, discontinue Product sales under the Agreement and
remove any Products in Senko’s inventory and refund the aggregate payments paid
therefor by Senko, in which event MacroPore shall promptly refund to Senko a
pro rata portion (based on the portion of the original Term remaining) of the distribution
rights fee paid by Senko pursuant to Section 2.3.

 

14.2                           Ownership.  MacroPore represents and warrants to Senko the
following: MacroPore owns or possesses licenses or other rights to use all Intellectual
Property (as defined below) used in the research, design, development,
manufacture or sale of the Products in the Territory (the “MacroPore
Intellectual Property”), free and clear of any liens, charges, security
interests, mortgages, pledges, restrictions, or any other encumbrances of any
kind which are inconsistent with the rights granted to Senko hereunder. To the
knowledge of MacroPore, the MacroPore Intellectual Property is valid and has
not been challenged in any judicial or administrative proceeding. MacroPore has
taken all necessary steps or appropriate actions to record its interests, or to
protect its rights, in the MacroPore Intellectual Property, to the extent that
is necessary for Senko to exercise its rights under this Agreement. To the
knowledge of MacroPore, no person or entity nor such person’s or entity’s
business or products has infringed, misused, misappropriated or materially
conflicted with the MacroPore Intellectual Property for use within the
Territory, or currently is infringing, misusing, misappropriating or materially
conflicting with the MacroPore Intellectual Property for use within the
Territory. To the knowledge of MacroPore, all proprietary technical information
developed by and belonging to MacroPore that has not been patented has been
kept confidential (subject to the rights of MAST under the APA, each as defined
in Section 22.1(b) below).  “Intellectual
Property” means letters patent and patent applications; trademarks, service
marks and registrations thereof and applications therefor; copyrights and
copyright registrations and applications; mask works and registrations thereof;
all inventions, discoveries, ideas, technology, know-how, trade secrets, data,
information, processes,

 

18

 

formulas,
drawings and designs, licenses, computer programs and software; and all
amendments, modifications, and improvements to any of the foregoing.

 

14.3                           Protection Of MacroPore’s Intellectual Property
And Improvements.  MacroPore shall be responsible for filing,
prosecuting and maintaining all US and foreign patents and copyrights and
applications therefor to the extent it deems necessary or appropriate to
protect the MacroPore Intellectual Property.

 

15.                                 Third Party Infringers.  If Senko becomes aware that a third party is
or may be making unauthorized use of (a) any patent owned by MacroPore, or for
which MacroPore has the exclusive right of use, which relates to the Products (“MacroPore’s
Patents”), or (b) any other intellectual property rights relating to the
Products owned or controlled by MacroPore, Senko shall promptly give MacroPore
written notice thereof.  Senko shall not
take any other action regarding such infringement without the prior written
approval of MacroPore, which shall not be
unreasonably delayed or withheld. 
Senko shall cooperate with MacroPore, at no out-of-pocket expense to
Senko, in connection with any action taken by MacroPore to terminate the
infringements.  With respect to all
claims and suits, including suits in which Senko is joined as plaintiff,
MacroPore shall have the sole right to employ counsel and to direct the
handling of the claim and litigation and any settlement thereof.

 

16.                                 Claims.

 

16.1                           Product
Liability Claims.  Senko shall
immediately notify MacroPore in writing of any products liability claim or
action brought with respect to the Products based on alleged defects in the
design or manufacture of the Products or other adverse claim regarding the
Products.  Upon receiving such written
notice, MacroPore shall assume and have sole control of the defense of any such
claim or action, including the power to conduct and conclude any and all
negotiations, compromises or settlements. 
Senko shall comply with all reasonable requests from MacroPore for
information, materials or assistance, with respect to the conduct of such
defense at MacroPore’s expense. 
MacroPore shall be responsible for payment of all claims based on MacroPore’s
design or manufacture of the Products, and all legal expenses and costs
incurred in that regard; provided, however, that MacroPore shall
have no liability for any judgment, settlement, compromise, expenses or costs
made or incurred by Senko without MacroPore’s consent, which shall not be unreasonably delayed or withheld.  Nothing in this section shall be
construed as requiring MacroPore to conduct and/or assume Senko’s independent
defense against any claim or action, if such claim or action involves the
independent conduct, acts or omissions of Senko.

 

16.2                           Notice
from Senko.  Senko shall promptly
notify MacroPore of any potential or actual litigation or governmental activity
in the Territory relating to the Products or the business operations of Senko
or MacroPore.  Senko shall provide such
notice with ten (10) Japanese business days
from the time that Senko learns of such litigation or activity.

 

19

 

16.3                           Indemnification
by Senko.  Senko assumes sole
responsibility for all acts performed by it pursuant to this Agreement and
shall be solely responsible for all Claims (as defined herein) in connection
therewith.  Senko shall indemnify, defend
and hold MacroPore harmless from any and all claims, actions, lawsuits,
demands, costs, liabilities, losses, damages and/or expenses (including
reasonable attorneys’ fees and costs of litigation) by any other party
resulting from or relating to any acts, omissions or misrepresentations of
Senko, its Agents or any of them (collectively, “Claims”).

 

16.4                           Indemnification
by MacroPore.  MacroPore assumes sole
responsibility for all acts performed by it pursuant to this Agreement and
shall be solely responsible for all Claims (as defined herein) in connection
therewith. MacroPore shall indemnify, defend and hold Senko harmless from any
and all claims, actions, lawsuits, demands, costs, liabilities, losses, damages
and/or expenses (including reasonable attorneys’ fees and costs of litigation)
by any other party resulting from or relating to any acts, omissions or
misrepresentations of MacroPore, its Agents or any of them (collectively, “Claims”).

 

17.                                 Insurance. 
To the extent commercially available, each party  shall maintain in
full force and effect product liability insurance and property damage insurance
on its operations, with reasonable coverage
limitations and terms.  Each party  shall provide the other party  with written
notice of any cancellation of any insurance hereunder at least thirty (30) days
prior to such cancellation.

 

18.                                 Term.  The term
of this Agreement shall be for a period of five (5) years following
Commercialization of the Product in Japan, and is renewable for an additional

 

five (5) year term
conditioned upon reaching mutually agreed Minimum Purchase Guarantees following
the initial term.

 

19.                                 Termination. 
This Agreement shall remain in full force and effect as specifically set
forth in Section 18 hereof, unless earlier terminated as follows:

 

(a)                                  By
mutual consent of the parties in writing at any time;

 

(b)                                 By
either party upon giving written notice to the other party if such other party
is in default of any material term or provision hereunder (including, without
limitation, Senko’s failure to meet the Minimum Purchase Guarantee pursuant to Section 3.1
hereof), and such default is not cured within ninety (90) days of written
notice of such default;

 

(c)                                  By
either party upon giving written
notice to the other party:  (i) if ownership, management, or control of the other party  or all or substantially all of the other party’s assets are transferred
to a person or entity other than the person or entity exercising ownership,
management or control at the date of this Agreement which transfer materially adversely affects the performance of such other
party’s obligations hereunder; or (ii) if a court having jurisdiction
shall enter a decree or order for relief in respect of the other party  in an
involuntary case under any applicable bankruptcy,

 

20

 

insolvency or other
similar law now or hereinafter in effect, or appoint a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) for such other party or for any substantial
part of its property, or order the winding up or liquidation of its affairs,
and such decree or order shall remain unstayed and in effect for a period of
sixty (60) consecutive days; or (iii) if the other party shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in any involuntary case under any
such law, or consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or similar official)
for such other party for any
substantial part of its property, or make any general assignment for the
benefit of creditors, or fail generally to pay its debts as they become due or
shall take any action in furtherance of any of the foregoing; or

 

(d)                                 A party may terminate this Agreement by giving
notice in writing to the other party should an event of Force Majeure
preventing performance by such other party continue for more than 180
consecutive days.  “Force Majeure” means
any event or condition, not existing as of the date of this Agreement, not
reasonably foreseeable as of such date and not reasonably within the control of
either party, which prevents in whole or in material part the performance by
one of the parties of its obligations hereunder, such as an act of government,
war or related actions, civil insurrection, riot, sabotage, strike, epidemic,
fire, flood, windstorm, and similar events.

 

20.                                 Effect of Termination.

 

20.1                           Effect
of Full Termination. Termination or expiration of this Agreement shall not
extinguish debts and other obligations created or arising between the parties
by virtue of contracts or arrangements entered into hereunder before the
effective date of termination or expiration of this Agreement (the “Termination
Date”). Without limiting the generality of the foregoing, upon the Termination
Date:

 

(a)                                  Senko
shall not be relieved of its obligation to (i) pay for Products received by
Senko prior to the Termination Date, or (ii) receive and pay for all Products
covered by orders which have been received by MacroPore prior to the
Termination Date, or (iii) make Section 5 royalty payments with regard to
all Products received before or after the Termination Date by Senko;  MacroPore shall be obligated to complete all
Product orders which were received by MacroPore prior to the Termination date,
provided that MacroPore receives adequate assurance of payment; and in each
such case, Senko shall be permitted to distribute such Products as well as any
Products in Senko’s inventory within the Territory, subject to Section 20.1
(c).

 

(b)                                 Senko
shall cooperate with MacroPore to allow for the orderly transfer of operations
within the Territory to MacroPore or its designee; Senko shall provide
MacroPore with (i) full and immediate access to all marketing and sales
information pertaining to the Products, including, without limitation, customer
lists, past sales history and Product pricing information, and (ii) copies of
any such information upon MacroPore’s request. 
Furthermore, Senko shall transfer all MacroPore Product

 

21

 

registration and
regulatory documentation necessary to facilitate transfer of the Territorial
distribution to a third party as well as to transfer to MacroPore all of MacroPore’s Marks,
MacroPore’s Patents which are then in the name of and/or held by Senko.

 

(c)                                  In
the event of a termination resulting from a material breach of this Agreement
by MacroPore, Senko shall have the right, at its option, to require MacroPore
to repurchase from Senko all of Senko’s inventory of Products (excluding
demonstration units and Products with less than 6 months shelf life remaining
as of the effective date of termination) as of the termination date at
MacroPore’s invoiced price (and inclusive of any shipping charges or taxes, but
net of any price adjustments, credits or other allowances) to Senko for such
Products.  Senko may exercise its option
under this Section 20.1(c) by
notifying MacroPore in writing no later than 30 days after the effective
termination date. Senko shall be permitted to resell any such inventory of Products that MacroPore does not repurchase from
Senko.

 

(d)                                 In
the event of a termination resulting from a material breach of the Agreement by
Senko, Senko shall submit to MacroPore within thirty (30) days after the
Termination Date a list of all the Products owned by Senko which were purchased
from MacroPore as of the Termination Date; MacroPore may, at its option,
purchase any or all of such Products from Senko upon written notice of its
intention to do so, at prices to be agreed upon between the parties but in no
event greater than the respective prices paid by Senko to MacroPore for such
products; after receipt of such Products from Senko, MacroPore will issue an
appropriate credit to Senko’s account.

 

(d)                                 Senko
shall cease to use any Confidential Information relating to or in connection
with its continued business operations and shall  promptly return to MacroPore any and all
registrations of MacroPore’s Marks and all physical, written and descriptive
matter (including all reproductions and copies thereof) containing Confidential
Information as MacroPore may specify.

 

(e)                                  NEITHER PARTY HERETO SHALL BE LIABLE TO THE OTHER PARTY FOR DAMAGES OF
ANY KIND, INCLUDING, WITHOUT LIMITATION, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
ARISING FROM  THE TERMINATION OF THIS
AGREEMENT IN ACCORDANCE WITH ITS TERMS.

 

20.2                           Effect
of Partial Termination.  In the event
that Senko’s distribution rights are reduced as provided for in Section 3.2,
Senko shall assist and cooperate with MacroPore by providing MacroPore at
MacroPore’s cost any regulatory materials related to the Territory and in
executing any documents, if any,
necessary to effectuate the distribution of the product through another
distributor in parallel to Senko in the Territory.

 

21.                                 Excusable Delays.  MacroPore shall not be liable for any delay
in the manufacture or delivery of Products pursuant to the terms and provisions
of this Agreement, or for any damages suffered by Senko by reason of such delay,
when such

 

22

 

delay is, directly or
indirectly, caused by, or in any manner arises from, fires, floods, accidents,
riots, acts of God, war, governmental interference or restrictions, strikes,
labor difficulties, back-orders, material shortages, regulatory or business
interruptions, acts of Senko or any other cause beyond the reasonable control
of MacroPore, whether similar or dissimilar to the foregoing.

 

22.                                 General Provisions.

 

22.1                           Successors
and Assigns.

 

(a)                                  This
Agreement shall inure to the benefit of, and be binding upon, the respective
successors and assigns of the respective parties hereto; provided, however,
that neither party shall have the right to assign any of its rights, delegate
any of its duties, or subrep or contract out any of its duties under this
Agreement without the prior written consent of the other party, which consent
may not be unreasonably withheld.  For avoidance of doubt, it is
understood and agreed that Senko may withhold such consent if the assignment,
delegation or subrep or contract may, in Senko’s reasonable opinion, materially
adversely affects the regulatory status
of Products under the Shonin or application therefor, or may cause substantial
delay in obtainment of the Shonin for Products, and/or materially effects the supply of the Products to Senko.  Neither party hereto shall be relieved of its
respective right or obligations hereunder upon any assignment, whether
voluntary, involuntary or by operation of law. 
Subject to the preceding sentence, each term and provision of this
Agreement shall be binding upon and enforceable against and inure to the
benefit of any successors or assigns of the parties hereto.  For purposes of this Agreement, any change of
voting or management control of Senko or MacroPore or any transfer (whether by
sale of stock, sale of assets, merger or otherwise) of any substantial part of
its business (each a “Change in Control”) shall constitute an assignment by
Senko or MacroPore of its rights and interest in and to this Agreement.  In the event of a Change in Control, each party agrees to notify the other party in writing no less than
thirty (30) days prior to such Change in Control.  Nothing in this Agreement, expressed or
implied, is intended to confer on any person other than the parties hereto and
their respective successors and assigns any rights or remedies under or by
reason of this Agreement.

 

(b)                                 Notwithstanding
Section 22.1 (a), MacroPore shall have the express right (not subject to any prior consent of Senko) to assign
all of its rights, interests and obligations in and to this Agreement in
connection with the purchase rights of MAST Biosurgery AG (“MAST”) granted to
MAST in the May 7, 2004, Asset Purchase Agreement (“APA”), between MacroPore
and MAST.  The APA provides that MAST
shall have the right to purchase all rights of MacroPore to the Products in the
Territory, which would include the rights and obligations of MacroPore provided
by this Agreement.    Also, in the event
of an assignment to MAST, MacroPore agrees to provide (i) a written notice with the detailed description of the assignment to
Senko before the closing date of the assignment; and (ii) back-up supply
of Product directly to Senko (and not through MAST) for the Term of this Agreement
if MAST fails to supply Product to Senko in accordance with the terms of this
Agreement, and such failure would otherwise

 

23

 

amount to a material
breach on the part of MAST.  The terms of
the back-up supply shall be subject to all of the terms of this Agreement,
except that the Product transfer price shall be established through good faith
negotiations between the parties at the time of such failure, provided that such transfer price shall not
be higher than that under this Agreement. Upon MAST’s provision of
reasonably satisfactory assurances to Senko that it can and will resume the
contractual supply of Product to Senko, MacroPore shall be relieved of this
duty.

 

22.2                           Notices.  All notices, requests, demands and other
communications which may be given or are required to be given under this
Agreement shall be in writing and in the English language with certified
translations as necessary.  All notices
shall be sent by facsimile transmission and confirmed by letter, certified mail
return receipt requested, and shall be deemed given on the date of such
facsimile transmission.  All notices
shall be addressed as set forth below in Schedule 22.2, hereto, or
to such other address as each party hereto may from time to time designate by
written notice to the other party as provided herein.

 

22.3                           Governing
Law.  This Agreement shall be
governed by, construed and enforced in accordance with the laws of the State of
California and the United States of America. Any actions, suits or
proceedings arising out of or related to this Agreement shall be brought in,
and determined exclusively by the courts of the State of California and
the United States of America. The United Nations Convention for the International
Sale of Goods will not apply.

 

22.4                           Resolution
of Disputes.  The parties hereto (a)
mutually consent and submit to the jurisdiction of any state or federal court
of competent jurisdiction located in the City of San Diego, State of
California, in any action or proceeding arising out of or relating in any
manner to this Agreement, (b) each waive any claim that any such state or
federal court is an inconvenient forum, and (c) each irrevocably agree that any
and all actions or proceedings arising out of or relating to this Agreement or
from transactions contemplated herein shall be exclusively heard only in such
state or federal court, provided that nothing in this Section 22.4
shall affect MacroPore’s right to bring an action or proceeding against Senko
in the courts of any other jurisdiction where the purpose of such action or
proceeding is to (i) seek injunctive relief against Senko, or (ii) collect
moneys due and owing from Senko to MacroPore on account of Senko’s failure to
pay for Products or services provided by MacroPore.  Service of process in any such action or
proceeding brought hereunder may be made by mailing copies of such process to
the address of the parties provided for in Section 22.2 hereto,
provided that nothing in this Section 22.4 shall affect the right
of either party to serve legal process in any other manner permitted by law.

 

22.5                           Headings.  The headings herein are for convenience only,
do not constitute a part of this Agreement, and shall not be deemed to limit or
affect any of the terms or provisions hereof.

 

24

 

22.6.                        Construction.  Whenever in this Agreement the context so
requires, references to the masculine shall be deemed to include feminine and
the neuter, references to the neuter shall be deemed to include the masculine
and feminine, and references to the plural shall be deemed to include the
singular and the singular to include the plural.  Any references in this Agreement to either
party hereto shall include such party’s Agents.

 

22.7                           Waiver
and Amendment.  No waiver, amendment,
modification or change of any provision of this Agreement shall be effective
unless and until made in writing and signed by all of the parties hereto.  No waiver, forbearance or failure by any
party hereto of its right to enforce any provision of this Agreement shall
constitute a waiver or estoppel of such party’s right to enforce any other
provision of this Agreement or a continuing waiver by such party of compliance
with any provision.

 

22.8                           Severability.  The provisions of this Agreement are intended
to be interpreted and construed in a manner so as to make such provisions
valid, binding and enforceable.  In the
event that any provision of this Agreement is determined to be partially or
wholly invalid, illegal or unenforceable, then such provision shall be deemed
to be modified or restricted to the extent necessary to make such provision
valid, binding and enforceable, or, if such provision cannot be modified or
restricted in a manner so as to make such provision valid, binding and
enforceable, then such provision shall be deemed to be excised from this
Agreement and the validity, binding effect and enforceability of the remaining
provisions of this Agreement shall not be affected or impaired in any manner.  Nothing in this Agreement shall be
interpreted or construed as creating, expressly or by implication, a
partnership, joint venture, agency relationship or employment relationship
between the parties hereto or between a party hereto and the respective Agents
of the other party.

 

22.9                           Cooperation.  Each party hereto shall cooperate with the
other party hereto and shall take such further action and shall execute and
deliver such further documents as may be necessary or desirable in order to
carry out the provisions and purposes of this Agreement.

 

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

 

22.11                     Entire
Agreement.  This Agreement (including
any exhibits and schedules hereto, each of which is incorporated herein and
made a part of this Agreement) constitutes the entire agreement and
understanding of the parties hereto and terminates and supersedes any and all
prior agreements, arrangements and understandings, both oral and written,
express or implied, between the parties hereto concerning the subject matter of
this Agreement.

 

25

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
Effective Date.

 

 

	
  MACROPORE
  BIOSURGERY, INC.

  	
  SENKO
  MEDICAL TRADING CO. 

  
	
   

  	
   

  
	
  By:

  	
  /s/ Christopher
  J. Calhoun 

  	
   

  	
  By:

  	
  /s/ Tetsuo
  Sasaki 

  	
   

  
	
   

  	
   

  
	
  Title: CEO 

  	
  Title: President
  

  
	
   

  	
   

  
	
  Date: July 13,
  2004

  	
  Date: July 16,
  2004

  
						

 

26

 

EXCLUSIVE DISTRIBUTION AGREEMENT

 

SCHEDULES

 

27

 

Schedule 12

 

TRADEMARKS

 

	
  Outside #

  	
   

  	
  Title

  	
   

  	
  Serial # or

  Registration #

  	
   

  	
  Date Filed

  	
   

  	
  Status

  	
   

  
	
  MA9672JP

  (Japan)

  	
   

  	
  SURGIWRAP

  	
   

  	
  2003-015208

  	
   

  	
  27-Feb-03

  	
   

  	
  Pending

  	
   

  
	
  MA9644JP

  (Japan)

  	
   

  	
  CARDIOWRAP

  	
   

  	
  2005-015207

  	
   

  	
   

  	
   

  	
  Pending

  	
   

  

 

28

 

Schedule 22.2

 

ADDRESSES

 

MACROPORE
BIOSURGERY, INC.:

 

MACROPORE

Attention:  Bruce Reuter

6740 Top Gun Street

San Diego, CA  92121

(858) 458- 0900 –
Telephone

(858) 458- 0994 –
Facsimile

 

With copy to:

Attention:  Seijiro Shirahama

 

 

SENKO MEDICAL
TRADING CO.:

 

SENKO

Attention: 
Executive Director

20-12,
3-chome, Yushima

Bunkyo-ku,
Tokyo, Japan

(813)
3836-9031 – Telephone

(813)
3836-9087 – Facsimile

 

29

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