GRANT AGREEMENT BETWEEN THE WISCONSIN DEPARTMENT OF COMMERCE AND CELLULAR DYNAMICS INTERNATIONAL, INC.

DISBURSEMENT OF GRANT PROCEEDS. Grant disbursements to the Recipient hereunder for Eligible Project Costs (Defined in Exhibit A) shall be made on a periodic basis upon the Department's receipt and approval of The Request for Disbursement Form (attached as Exhibit C) and required supporting documentation. .

"EVENT OF DEFAULT" DEFINED. The occurrence of any one or more of the following events shall constitute an "Event of Default" for the purposes of this Agreement:

The Recipient's failure to comply with or perform any of its obligations under this Agreement;

Any material misrepresentation with respect to the Recipient's warranties and representations under this Agreement or the Application.

REMEDIES IN EVENT OF DEFAULT. Upon the occurrence of any Event of Default, the Department shall send a written notice of default to the Recipient, setting_. forth with reasonable specificity the nature of the default. If the Recipient fails to cure the default to the reasonable satisfaction of the Department within ten (10) calendar days, the Department may, without further written notice to the Recipient, declare the Recipient in default, terminate this Agreement effective immediately, and recover from the Recipient all of the following:

An amount equal to the funds disbursed under this Agreement.

All court costs and reasonable attorney's fees incurred by the Department in recovering the amounts owed by the Recipient hereunder.

RECIPIENT'S WARRANTIES AND REPRESENTATIONS. To induce the Department to enter into this Agreement, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the Recipient hereby warrants and represents that:

The Recipient is duly organized, validly existing, and authorized to engage in business in the State of Wisconsin.

The Recipient is qualified to engage in business in every jurisdiction where the nature of its business makes such qualification necessary;

The Recipient is in compliance with all laws, regulations, ordinances and orders of public authorities applicable to it, the violation of which would have a material and adverse effect on the Recipient's ability to comply with this Agreement;

The Recipient is unaware of any conditions which could subject it to any damages, penalties or clean-up costs under any federal or state environmental laws which would have a material adverse effect on the Recipients ability to comply with this agreement.

The financial statements and other information provided by the Recipient to the Department are complete and accurate in accordance with Generally Accepted Accounting Principles, and may be relied upon by the Department in deciding whether to enter into this Agreement with the Recipient;

The Recipient is not in default under the terms and conditions of any grant agreements, leases, or financing arrangements with the Recipient's other creditors;

The Recipient has private Project funds as identified in Exhibit A to fund all other costs relating to the Project;

Deliverables. The Recipient shall comply with the terms and conditions set forth in Exhibit A Section 3. of this agreement.

Reporting. The Recipient shall provide the Department with reports, utilizing forms provided by the Department, as well as interim and/or fiscal year end financial statements in accordance with Exhibit B.

Inspection.

The Department and its respective agents, shall, at any reasonable time and upon 48 hours notice, have the right to enter upon the Recipient's premises to inspect the Project.

The Recipient shall produce for the Department's inspection, examination, auditing and copying, upon reasonable advance notice, any and all records which relate to this Agreement.

Nondiscrimination in Employment. During the Term of this Agreement, the Recipient shall not discriminate against any employee or applicant for employment because of
age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in sec. 51.01 (5) Stats., sexual orientation or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Except with respect to sexual orientation, the recipient further agrees to take affirmative action to ensure equal employment opportunities. The recipient agrees to post in conspicuous places, available for employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of the nondiscrimination clause.

Notification of Position °Denim's. In accordance with sec. 106.16, Stats., the Recipient shall, for a period of one year from the Effective Date, provide the Wisconsin Department of Workforce Development, local Job Service offices, and the area Workforce Development Board with prior written notice of any new or vacant Full‑Time Positions that are related to the Project.

Consolidation or Merger. During the term of this Agreement, the Recipient shall not consolidate or merge with or into any other corporation or business entity without providing prior written consent of the Department.

Relocation of Operations. In accordance with §560.075(2), the Recipient shall not relocate the Project, or any Full-Time Positions related thereto, outside of Wisconsin for a minimum of five years from the date of the award.

WISCONSIN OPEN RECORDS LAW. Subject to the following terms, the Department shall safeguard all of the financial statements provided to them by the Recipient:

Except as otherwise required or provided by court order, legal process or applicable Wisconsin law including, without limitation, the Wisconsin Open Records Law, sec. 19.31, Stats., et seq, the Department shall not reveal or disclose any financial information and documents provided by the Recipient to any non-government person or entity without the prior written consent of the Recipient.

If the Recipient believes or contends that any financial statements provided hereunder qualify as ‘trade secrets" exempt from disclosure under the Wisconsin Open Records Law, the Recipient shall:

Fill out a standard trade secrets designation form to be provided by the Department,
designating specific information or documents as " trade secrets" and agreeing to defend and indemnify the Department, and to hold them harmless in the event of any future open records request asking for copies of such documents; and

Provide the Department with two copies of such information — a clean copy and a copy with the "trade secret" information redacted — for the Department's files.

ENTIRE AGREEMENT. This Agreement and exhibits contain the entire Agreement of the parties concerning the Recipient's obligations under the terms and conditions of this Agreement. This Agreement may not be amended, modified or altered except in writing signed by the Recipient and the Department.

CHOICE OF LAW. THIS AGREEMENT IS AND SHALL BE GOVERNED BY THE LAWS OF THE STATE OF WISCONSIN. If any provisions of the Agreement shall be prohibited by
or invalid under Wisconsin law, such provisions shall be ineffective only to the extent-of such prohibition or invalidity, without affecting the validity or enforceability of the remaining provisions thereof.

VENUE; JURISDICTION. Any judicial action relating to the construction, interpretation, or enforcement of this Agreement, or the recovery of any principal, accrued interest, court
costs, attorney's fees and other amounts owed hereunder, shall be brought and venued in
the U.S. District Court for the Western District of Wisconsin or the Dane County Circuit Court in Madison, Wisconsin. THE RECIPIENT HEREBY CONSENTS TO PERSONAL JURISDICTION IN THOSE WISCONSIN COURTS, AND WAIVES ANY DEFENSES THAT THE RECIPIENT OTHERWISE MIGHT HAVE RELATING THERETO.

Severability. The invalidity of any provision of this Agreement shall not affect the validity of the remaining provisions, which shall remain in full force and effect to govern the parties' relationship.

Department Not A Joint Venturer Or Partner. The Department shall not, under any circumstances, be considered or represented to be a partner or joint venturer of the Recipient or any beneficiary thereof.

Documents. All documents required to be delivered contemporaneously with the execution and delivery of this Agreement are expressly made a part of this Agreement as though completely herein, and all references to this Agreement herein shall be deemed to refer to and include all such documents.

Agreement Controlling. In the event of any conflict or inconsistency between the Agreement and the exhibits hereto, the terms of this Agreement shall control.

CAPTIONS. The captions in this Agreement are for convenience of reference only and shall not define or limit any of the terms and conditions set forth herein.

AUTHORITY TO SIGN DOCUMENT. The person(s) signing this Agreement on behalf of the Recipient certifies and attests that the Recipient's respective Articles of Incorporation, By Laws, Charter, Corporate or other Resolutions, and/or other related documents give full and complete authority to bind the Recipient, on whose behalf they are executing this document.

The Recipient warrants that it will provide federal matching funds of at least 80% of total project costs as required by statute.

All grant funds must be spent in Wisconsin.

Commerce funds may not be used for founders salaries.

REPORTING REQUIREMENT. The Recipient shall provide the Department with reports or surveys, in accordance with the following table:

Annual Reports The Recipient will be required to submit this report within 90 days of the calendar year end, as well as fiscal year end financial statements, and utilizing forms provided by the Department attached as Exhibit B-1.

PROJECT RECORDS. The Recipient shall prepare, keep and maintain such records as may be reasonably required by the Department to show:

The number of Target Employees Created, Trained, or Maintained by the Recipient pursuant to this Agreement;

The amount and disposition of Grant funds provided and disbursed under this Agreement; and

The total cost of the Project.

FINANCIAL RECORDS. All of the Recipient’s financial records shall be prepared, kept and maintained in accordance with Generally Accepted Accounting Principles. The Recipient shall provide such records to the Department during the Term of the Agreement as required in the annual reports, or otherwise as requested by the Department. Such materials shall be retained by the Recipient for a period of at least three (3) years after the Project End Date.

The financial statements and other information provided by the Recipient to the Department are complete and accurate in accordance with Generally Accepted Accounting Principles, and may be relied upon by the Department in deciding whether to enter into this Agreement with the Recipient;

AUDIT REPORT. Within (90) days after the Project End Date, or upon the request of the Department, the Recipient shall provide the Department with an audited financial report, in form and substance reasonably satisfactory to the Department, documenting that the Grant funds were expended in accordance with this Agreement.