Document:

Orgenesis Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

EXECUTION VERSION 

 

STOCK PURCHASE AGREEMENT 

by and among 

Masthercell Global Inc., 

Orgenesis Inc., 

and 

GPP-II Masthercell, LLC

 

Dated June 28, 2018 

TABLE OF CONTENTS 

	 	 	 	 	Page
 
	 	 	 	 	 
	ARTICLE
    1 	PURCHASE
    AND SALE OF COMPANY PREFERRED STOCK 	1
  
	 	 	 
	 	1.1
    	Basic
    Transaction 	1
  
	 	1.2
    	Purchase
    Price 	2
  
	 	1.3
    	Estimated
    Cash Payment 	2
  
	 	1.4
    	Payment
    and Delivery of Purchase Price 	2
  
	 	1.5
    	Cash
    Payment Determination 	3
  
	 	1.6
    	Calculation
    of Future Payments 	3
  
	 	1.7
    	Determination
    of Future Payments 	5
  
	 	1.8
    	Calculations
    	6
  
	 	1.9
    	Closing
    	6
  
	 	1.10
    	Israel
    Sub and South Korea Sub 	6
  
	 	 	 	 
	ARTICLE
    2 	REPRESENTATIONS
    AND WARRANTIES CONCERNING TRANSACTION 	7
  
	 	 	 
	 	2.1
    	Representations
    and Warranties of Orgenesis Parent 	7
  
	 	2.2
    	Representations
    and Warranties of Investor 	8
  
	 	 	 	 	 
	ARTICLE
    3 	REPRESENTATIONS
    AND WARRANTIES CONCERNING THE COMPANY AND ITS SUBSIDIARIES 	11
  
	 	 	 
	 	3.1
    	Organization,
      Qualification, and Power 	11
  
	 	3.2
    	Authorization
    of Transaction 	11
  
	 	3.3
    	Capitalization
    and Subsidiaries 	12
  
	 	3.4
    	Non-contravention
    	13
  
	 	3.5
    	Brokers’
    Fees 	13
  
	 	3.6
    	Assets
    	 	13
  
	 	3.7
    	Financial
    Statements; Interim Conduct 	14
  
	 	3.8
    	Undisclosed
    Liabilities 	16
  
	 	3.9
    	Legal
    Compliance 	17
  
	 	3.10
    	Tax
    Matters 	 	17
  
	 	3.11
    	Real
    Property 	19
  
	 	3.12
    	Intellectual
    Property 	20
  
	 	3.13
    	Contracts
    	 	22
  
	 	3.14
    	Insurance
    	 	24
  
	 	3.15
    	Litigation
    	 	24
  
	 	3.16
    	Employees
    	 	25
  
	 	3.17
    	Employee
    Benefits 	25
  
	 	3.18
    	Debt
    	 	26
  
	 	3.19
    	Environmental,
      Health, and Safety Matters 	26
  
	 	3.20
    	Business
    Continuity 	27
  
	 	3.21
    	Certain
    Business Relationships with the Company and its Subsidiaries 	28
  
	 	3.22
    	Customers
    and Vendors 	28
  
	 	3.23
    	Product
    Warranty 	29
  
	 	3.24
    	Product
    Liability 	29

-i- 

TABLE OF CONTENTS (continued) 

				 	Page
 
	 	 	 	 	 
	 	3.25
    	Information
    Privacy and Data Security 	30
  
	 	 	 	 	 
	ARTICLE
    4 	POST-CLOSING
    COVENANTS 	30
  
	 	 	 
	 	4.1
    	General
    	30
  
	 	4.2
    	Litigation
    Support 	30
  
	 	4.3
    	Transition
    	31
  
	 	4.4
    	Confidentiality
    	31
  
	 	4.5
    	Covenant
    Not to Compete 	31
  
	 	4.6
    	Covenant
    Not to Solicit 	31
  
	 	4.7
    	Enforcement
    	32
  
	 	4.8
    	Release
    	 	33
  
	 	4.9
    	Israel
    Sub and South Korea Sub 	33
  
	 	4.10
    	Stockholders’
    Agreement Terms 	33
  
	 	4.11
    	QMS
    License Agreement 	34
  
	 	 	 	 	 
	ARTICLE
    5 	CLOSING
    DELIVERIES 	34
  
	 	 	 
	 	5.1
    	Closing
    Deliveries of Orgenesis Parent 	34
  
	 	5.2
    	Closing
    Deliveries of Investor 	36
  
	 	 	 	 	 
	ARTICLE
    6 	REMEDIES
    FOR BREACHES OF THIS AGREEMENT 	36
  
	 	 	 
	 	6.1
    	Indemnification
    by Orgenesis Parent 	36
  
	 	6.2
    	Indemnification
    by Investor 	37
  
	 	6.3
    	Survival
    and Time Limitations 	37
  
	 	6.4
    	Limitations
    on Indemnification by Orgenesis Parent 	37
  
	 	6.5
    	Limitations
    on Indemnification by Investor 	38
  
	 	6.6
    	Third-Party
    Claims 	38
  
	 	6.7
    	Other
    Indemnification Matters 	39
  
	 	6.8
    	Indemnity
    Payments 	40
  
	 	 	 	 	 
	ARTICLE
    7 	TAX
    MATTERS 	40
  
	 	 	 
	 	7.1
    	Tax
    Indemnification 	40
  
	 	7.2
    	Responsibility
    for Filing Tax Returns for Periods through Closing Date 	41
  
	 	7.3
    	Straddle
    Periods 	41
  
	 	7.4
    	Cooperation
    on Tax Matters 	41
  
	 	7.5
    	Certain
    Taxes 	41
  
	 	 	 	 	 
	ARTICLE
    8 	DEFINITIONS
    	41
  
	 	 	 	 	 
	ARTICLE
    9 	MISCELLANEOUS
    	54
  
	 	 	 
	 	9.1
    	Press
    Releases and Public Announcements 	54
  
	 	9.2
    	No
    Third-Party Beneficiaries 	54
  
	 	9.3
    	Entire
    Agreement 	54
  
	 	9.4
    	Succession
    and Assignment 	54

-ii- 

TABLE OF CONTENTS (continued) 

	 	 	  	 	Page
 
	 	  	  	 	  
	 	9.5
      	Counterparts
      	 	55
      
	 	9.6
      	Headings
      	 	55
      
	 	9.7
      	Notices
      	 	55
      
	 	9.8
      	Governing
      Law 	57
      
	 	9.9
      	Amendments
      and Waivers 	57
      
	 	9.10
      	Injunctive
      Relief 	57
      
	 	9.11
      	Severability
      	 	58
      
	 	9.12
      	Expenses
      	 	58
      
	 	9.13
      	Construction
      	 	58
      
	 	9.14
      	Incorporation
      of Exhibits and Disclosure Schedule 	58
      
	 	9.15
      	Schedules
      	 	58
      
	 	9.16
      	Waiver
      of Jury Trial 	58
      
	 	9.17
      	Exclusive
      Venue 	59
      
	 	9.18
      	Time
      to Bring Claims 	59
      

-iii- 

	EXHIBITS AND SCHEDULES 
	 
	Exhibit A 	— 	Advisory Services Agreements
  
	 	 	 
	Exhibit B 	— 	Amended and Restated
      Certificate of Incorporation 
	 	 	 
	Exhibit C 	— 	Employment Agreement 
	 	 	 
	Exhibit D 	— 	Stockholders’ Agreement 
	 	 	 
	Disclosure Schedule 	— 	Exceptions to Representations
      and Warranties 
	 	 	 
	Schedule 1.3 	— 	Certificate for Balance Sheet
      and Estimated Cash Payment and Related Components 
	 	 	 
	Schedule 1.4(a)(ii) 	— 	Debt Paid at Closing 
	 	 	 
	Schedule 1.8 	— 	Methodology of Calculation of
      Working Capital, Net Income, EBITDA and Net Revenue 
	 	 	 
	Schedule 5.1(b) 	— 	Consents Under Contracts and
      Permits 
	 	 	 
	Schedule 5.1(g) 	— 	Resignations at Closing 
	 	 	 
	Schedule 5.1(i) 	— 	Debt 
	 	 	 
	Schedule 5.1(m) 	— 	Related Party Agreements
      Terminated at Closing 
	 	 	 
	Schedule 8.1 	— 	Sample Calculation of Working
      Capital 
	 	 	 
	Schedule 9.1 	— 	Press Release

- i - 

STOCK PURCHASE AGREEMENT 

 This Stock Purchase Agreement (this
“Agreement”) is entered into on June 28, 2018 by and among GPP-II
Masthercell, LLC, a Delaware limited liability company (“Investor”),
Masthercell Global Inc., a Delaware corporation (the “Company”), and
Orgenesis Inc., a Nevada corporation (“Orgenesis Parent”). Investor, the
Company, and Orgenesis Parent are referred to collectively herein as the
“Parties” and individually as a “Party”. 

PRELIMINARY STATEMENTS 

 In connection with the purchase of the
Company Preferred Stock by Investor, and concurrently therewith, Orgenesis
Parent consummated a reorganization (the “Reorganization”) pursuant to
which Orgenesis Parent contributed, or caused to be contributed, to the Company
(i) 83.32% of the equity interests of MaSTherCell S.A., a company organized
under the laws of Belgium, (ii) all of the equity interests of Cell Therapy
Holding S.A., a company organized under the laws of Belgium, (iii) all of the
equity interests of Atvio Biotech Ltd., a company organized under the laws of
Israel (the “Israel Sub”) (which shall be owned by the Company within
four (4) Business Days after the date hereof), (iv) 94.12% of the equity
interests of CureCell Co., Ltd., a Korean stock corporation (the “South Korea
Sub”) (which shall be owned by the Company within four (4) Business Days
after the date hereof), and (v) all other assets related to or used in the
Business. 

 Immediately prior to the Closing,
Orgenesis Parent owns all of the outstanding equity interests of the Company.
Investor desires to make an equity investment in the Company on the date hereof
pursuant to which the Company will issue certain equity interests to Investor
and Orgenesis Parent desires to cause the Company to accept such investment and
issue such equity interests to Investor, upon the terms and subject to the
conditions set forth in this Agreement. Consequently, immediately after the
Closing, Orgenesis Parent and Investor will own all of the outstanding equity
interests of the Company. 

 The Parties shall treat the purchase
of the Company Preferred Stock and the Reorganization as part of the same plan
of reorganization pursuant to Section 351 of the Code. 

AGREEMENT

 Now, therefore, in consideration of
the premises and the mutual promises herein made, and in consideration of the
representations, warranties, covenants and other valuable consideration herein
contained, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows: 

ARTICLE 1 

PURCHASE AND SALE OF COMPANY PREFERRED STOCK 

 1.1     
 Basic Transaction. In accordance with the terms and upon the
conditions of this Agreement and concurrently with the Reorganization, at the
Closing the Company shall issue, and Investor shall purchase, 378,000 shares of
Series A Preferred Stock of the Company, par value $0.0001 per share (the
“Company Preferred Stock”) to Investor, free and clear of all Liens, such shares representing 37.8% of the share capital of the
Company on a fully diluted basis as of the Closing
Date.      

 1.2     
   Purchase Price. The purchase price for the Company Preferred Stock
(the “Purchase Price”) shall consist of:

 (a)       the Cash Payment, subject to
adjustment as provided in this Article 1; plus 

(b)       the Future
  Payments (if any), to the extent payable in accordance with Section
1.4(c). 

1.3       Estimated Cash Payment. Attached
hereto as Schedule 1.3 is a certificate signed by an officer of Orgenesis Parent
which (a) attaches a balance sheet of the Company and (b) sets forth Orgenesis
Parent’s best estimate of the Debt Amount, the Working Capital and Working
Capital Deficit, if any, and the Cash Shortfall, if any, in each case as of the
Closing Date and, based on such estimates, the Cash Payment (the “Estimated
Cash Payment”), and as of the date hereof Orgenesis Parent has delivered to
Investor all records and work papers as requested by Investor and reasonably
necessary to compute and verify the information set forth in such certificate,
all of which must be reasonably acceptable to Investor. 

 1.4     
 Payment and Delivery of Purchase Price. 

(a)       Closing Payments. At the Closing,
Investor shall: 

(i)       pay the Estimated Cash Payment to the
Company; and 

(ii)       pay the Debt Amount set forth on
Schedule 1.4(a)(ii) pursuant to the payoff letters delivered by Orgenesis Parent
to Investor pursuant to Section 5.1(i). 

(b)       Cash Payment Adjustment. Within
five (5) Business Days after the Cash Payment becomes final and binding in
accordance with Section 1.5, if ninety-five percent (95%) of the
Estimated Cash Payment exceeds the Final Cash Payment (the amount of such
excess, the “Cash Payment Shortfall”), then Orgenesis Parent shall pay an
amount equal to the Cash Payment Shortfall to the Company in cash. 

(c)       Future Payments. Within ten (10)
days after the Future Payments become final and binding in accordance with
Section 1.7, Investor shall pay such Future Payments, if any, to the
Company. 

(d)       Payments. All payments to the
Company pursuant to this Section 1.4 shall be made by wire transfer of
immediately available funds to an account designated by the Company in writing.

(e)       Withholding. The Parties and any
other applicable withholding agent of Investor will be entitled to deduct and
withhold from any amounts payable pursuant to or contemplated by this Agreement
any Taxes required to be deducted and withheld under the Code or any applicable
Law, and, to the extent that any amounts are so deducted or withheld, such amounts will be treated for all purposes of this Agreement as
having been paid to the Person in respect of which such deduction and
withholding was made. 

-2- 

 1.5     
   Cash Payment Determination. Within ninety (90) days after the
  Closing Date, the Company shall prepare and deliver to the Investor a statement
  setting forth the Company’s calculation of the Debt Amount, the Working Capital
  and Working Capital Deficit, if any, and the Cash Shortfall, if any, in each
  case as of the Closing Date and, based on such calculations, the Cash Payment
  (the “Closing Statement”). If the Investor has any objections to the
  Closing Statement prepared by the Company based on the contention that such
  Closing Statement was not prepared in accordance with the terms of the
  Agreement, then the Investor will deliver a detailed written statement (the
  “Objections Statement”) describing (a) which items on the Closing
  Statement have not been prepared in accordance with this Agreement, (b) the
  basis for the Investor’s disagreement with the calculation of such items and (c)
  the Investor’s proposed dollar amount for each item in dispute, to the Company
  within thirty (30) days after delivery of the Closing Statement. If the Investor
  fails to deliver an Objections Statement within such thirty (30) day period,
  then the Closing Statement shall become final and binding on all Parties. The
  Investor and the Company shall be deemed to have agreed with all amounts and
  items contained or reflected in the Closing Statement to the extent such amounts
  or items are not disputed in the Objections Statement. If the Investor delivers
  an Objections Statement within such thirty (30) day period, then the Investor
  and the Company will use commercially reasonable efforts to resolve any such
  disputes, but if a final resolution is not obtained within thirty (30) days
  after the Investor has submitted any Objections Statements, any remaining
  matters which are in dispute will be resolved by BDO USA, LLP (the
  “Accountants”). The Accountants will prepare and deliver a written report
  to the Investor and the Company and will submit a proposed resolution of such
  unresolved disputes promptly, but in any event within thirty (30) days after the
  dispute is submitted to the Accountants. The Accountants’ determination of such
  unresolved disputes shall be final and binding upon all Parties and not subject
  to review by a court or other tribunal; provided, however, that no
  such determination shall be any more favorable to the Company than is set forth
  in the Closing Statement or any more favorable to the Investor than is proposed
  in the Objections Statement. The costs, expenses and fees of the Accountants
  shall be borne by the Party whose calculation of the Cash Payment has the
  greatest difference from the Final Cash Payment as determined by the Accountants
  under this Section 1.5; otherwise, such costs, fees and expenses shall be borne
  equally by the Investor, on the one hand, and the Company, on the other hand.
  The final Closing Statement, however determined pursuant to this Section
    1.5, will produce the Working Capital Deficit, if any, the Cash Shortfall,
  if any, and the Debt Amount to be used to determine the final Cash Payment (the
“Final Cash Payment”). 

 1.6     
 Calculation of Future Payments. 

(a)       If, during any twelve month period
ending on or prior to December 31, 2018 (the “First Measurement Period”),
the Company and its Subsidiaries generate Net Revenue equal to or greater than
€14,100,000 and EBITDA equal to or greater than €1,800,000 (collectively, both
such Net Revenue and EBITDA targets are the “First Milestones”), and the
shareholders of Orgenesis Parent have approved the Stockholders’ Agreement Terms
prior to December 31, 2018 in accordance with Law and in a manner that will
ensure that Investor is able to exercise its rights under the Stockholders’
Agreement without any further action or approval by Investor, Orgenesis Parent,
the shareholders of Orgenesis Parent, or any other Person (collectively, “Proper Approval”, and the act of
providing such Proper Approval shall be referred to as “Properly
Approved”), then Investor shall make a payment to the Company equal to
$6,600,000 (subject to potential adjustment in accordance with Section
1.6(d), the “First Future Payment”) within ten (10) days from
the date such First Future Payment becomes final and binding in accordance with Section 1.7. For the avoidance of doubt, if (i) the Company and its
Subsidiaries fail to reach either of the First Milestones, or (ii) the
shareholders of Orgenesis Parent have not Properly Approved the Stockholders’
Agreement Terms prior to December 31, 2018, then the First Future Payment shall
be zero (0); provided, that if both of the First Milestones have been
reached but the shareholders of Orgenesis Parent have not Properly Approved the
Stockholders’ Agreement Terms prior to December 31, 2018, if at any time prior
to December 31, 2019 the shareholders of Orgenesis Parent do Properly Approve
the Stockholders’ Agreement Terms, then the First Future Payment shall become
payable at that time. For the sake of clarity, the terms “Proper Approval” and
“Properly Approved” shall not include any secondary or additional approval that
may be required after the Proper Approval has been obtained (and if such Proper
Approval has been obtained, any secondary or additional approval that may
subsequently be required shall not cause the Stockholders’ Agreement Terms to be
deemed not Properly Approved by the shareholders of Orgenesis) and the First
Future Payment and the Second Future Payment are not, and shall not, be
conditioned upon receiving any such secondary or additional approval of the
Stockholders’ Agreement Terms from the shareholders of Orgenesis Parent as may
be required by Law at a later date.

-3- 

Notwithstanding the foregoing, in the event that (a) the
  Company and its Subsidiaries fail to reach either or both of the EBITDA or Net
  Revenue First Milestones during the First Measurement Period (with such
  shortfalls being referred to as a “First Period EBITDA Shortfall” or a
  “First Period Net Revenue Shortfall”, as applicable), and (b) the Company
  and its Subsidiaries achieves both the EBITDA and the Net Revenue Second
  Milestones during the Second Measurement Period, and (c) to the extent there was
  a First Period EBITDA Shortfall the Company and its Subsidiaries generate EBITDA
  during the Second Measurement Period that exceeds the EBITDA Second Milestone by
  an amount that is equal to, or greater than, such First Period EBITDA Shortfall
  and (d) to the extent there was a First Period Net Revenue Shortfall the Company
  and its Subsidiaries generate Net Revenue during the Second Measurement Period
  that exceeds the Net Revenue Second Milestone by an amount that is equal to, or
  greater than, such Net Revenue Shortfall, then (if the shareholders of Orgenesis
  Parent have Properly Approved the Stockholders’ Agreement Terms prior to
  December 31, 2019) the First Future Payment shall become payable at that time.

(b)       If, during any twelve month period
ending on or prior to December 31, 2019 (the “Second Measurement
Period”), the Company and its Subsidiaries generate Net Revenue equal to or
greater than €19,100,000 and EBITDA equal to or greater than €3,900,000
(collectively, both such Net Revenue and EBITDA targets are the “Second
Milestones”), and the shareholders of Orgenesis Parent have Properly
Approved the Stockholders’ Agreement Terms, then Investor shall make a payment
to the Company equal to $6,600,000 (subject to potential adjustment in
accordance with Section 1.6(d), the “Second Future Payment”)
within ten (10) days from the date such Second Future Payment becomes final and
binding in accordance with Section 1.7. For the avoidance of doubt, if
(i) Net Revenue generated by the Company and its Subsidiaries during the Second
Measurement Period is less than €19,100,000, or (ii) EBITDA generated by the
Company and its Subsidiaries during the Second Measurement Period is less than €3,900,000, or (iii) the shareholders of Orgenesis Parent
have not Properly Approved the Stockholders’ Agreement Terms prior to the end of
the Second Measurement Period, then the Second Future Payment shall be zero (0). 

-4- 

  (c)       In the event Orgenesis Parent fails to
  obtain Proper Approval of the Stockholders’ Agreement Terms in accordance with
  Nevada law on or before December 31, 2019, the Parties agree that Orgenesis
  Parent shall not be entitled to the First Future Payment or the Second Future
Payment and such Future Payments shall be zero (0). 

(d)       The Investor may, in its sole discretion
and at any time, regardless of whether the conditions required for payment of
the First Future Payment and/or the Second Future Payment as set forth in
Sections 1.6(a) and 1.6(b) have been achieved, choose to pay all
or a portion of the First Future Payment or the Second Future Payment to the
Company; provided, that in the event the Investor does make such a
payment to the Company, the amount of any required unpaid Future Payments shall
be reduced by an amount equal to such payment (beginning first with reduction of
the Second Future Payment and after the Second Future Payment has been reduced
to zero (0), then reduction of the First Future Payment). For example, if the
Investor makes a payment to the Company pursuant to this Section 1.6(d)
in an amount equal to $1,000,000 and the conditions set forth in Section
1.6(b) are achieved such that the Second Future Payment becomes payable,
then the Second Future Payment that would be payable in such event would be
equal to $5,600,000. 

1.7       Determination of Future Payments.
Within one hundred twenty (120) days after the end of each of the First
Measurement Period and the Second Measurement Period, the Company shall prepare
and deliver to the Investor a report (each, a “Future Payment Report”)
containing the unaudited financial statements of the Company and its
Subsidiaries on a consolidated basis for the applicable Measurement Period and
setting forth the Company’s calculation of Net Revenue and EBITDA generated by
the Company and its Subsidiaries during such Measurement Period and the
resulting First Future Payment or Second Future Payment, as applicable. If the
Investor has any objections to the calculation of Net Revenue or EBITDA
generated by the Company and its Subsidiaries during the applicable Measurement
Period and the resulting First Future Payment or Second Future Payment prepared
by the Company, then the Investor will deliver a detailed written statement
(each, a “Future Payment Objections Statement”) describing its
objections to the Company within thirty (30) days after delivery of the
applicable Future Payment Report. If the Investor fails to deliver the
applicable Future Payment Objections Statement within such thirty (30) day
period, then the calculation of Net Revenue and EBITDA generated by the Company
and its Subsidiaries during the applicable Measurement Period and the resulting
applicable Future Payment set forth in the applicable Future Payment Report
shall become final and binding on all Parties. If the Investor delivers the
applicable Future Payment Objections Statement within such thirty (30) day
period, then the Investor and the Company will use commercially reasonable
efforts to resolve any such disputes, but if a final resolution is not obtained
within thirty (30) days after the Investor has submitted the applicable Future
Payment Objections Statement, any remaining matters which are in dispute will be
resolved by the Accountants. The Accountants will prepare and deliver a written
report to the Company and the Investor and will submit a resolution of such
unresolved disputes promptly, but in any event within thirty (30) days after the
dispute is submitted to the Accountants. The Accountants’ determination of such
unresolved disputes shall be final and binding upon all Parties; provided, however, that no such
determination shall be any more favorable to the Company than is set forth in
the applicable Future Payment Report or any more favorable to the Investor than
is proposed in the applicable Future Payment Objections Statement. The costs,
expenses and fees of the Accountants shall be borne by the Party whose
calculation of the First Future Payment or Second Future Payment, as applicable,
has the greatest difference from the final First Future Payment or Second Future
Payment, as applicable, as determined by the Accountants under this Section
1.7; otherwise, such costs, fees and expenses shall be borne equally by the
Investor, on the one hand, and the Company, on the other hand. Upon the First
Future Payment and the Second Future Payment, as applicable, becoming final and
binding in accordance with this Section 1.7, the Investor shall pay such
First Future Payment (if any) and such Second Future Payment (if any), as
applicable, to the Company in accordance with Section 1.4(c). 

-5- 

  1.8       Calculations. All calculations of
  Working Capital, Net Income, EBITDA and Net Revenue under this Agreement,
  whether estimates or otherwise, shall be determined in accordance with GAAP
  except as otherwise provided in the definitions of Working Capital, Net Income,
EBITDA and Net Revenue and as set forth on Schedule 1.8. 

 1.9     
 Closing. The closing of the transactions contemplated by this
Agreement (the “Closing”) shall take place simultaneously on the date the
Reorganization is complete, all deliverables set forth in Sections 5.1
and 5.2 are provided by the Parties, and payment of the Estimated Cash
Payment is made by the Investor to the Company pursuant to the terms of this
Agreement on the date of this Agreement (the “Closing Date”). The Parties
may execute this Agreement electronically by the mutual exchange of facsimile or
portable document format (.PDF) signatures on the Closing Date. All transactions
contemplated herein to occur on and as of the Closing Date shall be deemed to
have occurred simultaneously and to be effective as of 12:01 a.m. Chicago time
on such date. 

1.10       Israel Sub and South Korea Sub.
In the event that the Company does not own one hundred percent (100%) of the
equity interests of (a) the South Korea Sub and (b) the Israel Sub on or prior
to the one (1) year anniversary of the Closing Date, (i) Orgenesis Parent shall,
during the period that the Company owns equity interests of the South Korea Sub
and the Israel Sub, as applicable, pay to the Company in immediately available
funds an amount equal to any portion of any dividend or distribution paid by the
South Korea Sub or the Israel Sub that the Company does not receive due to the
Company not having ownership of one hundred percent (100%) of the equity
interests of the South Korea Sub and the Israel Sub, as applicable and (ii) upon
a Sale of the Company (as defined in the Stockholders’ Agreement) or any sale or
transfer of equity interests of the South Korea Sub or the Israel Sub, Investor
shall receive proceeds as a result of such transaction (the “Subsidiary
Proceeds”) in an amount equal to the product of (x) the value of the equity
interests of the South Korea Sub or the Israel Sub, as applicable, that are not
owned by the Company multiplied by (y) the percentage representing
Investor’s ownership of the total share capital of the Company on a fully
diluted basis as of the time of such transaction, and the amount of such
Subsidiary Proceeds shall be deducted from the proceeds that Orgenesis Parent is
entitled to receive as a result of such transaction. 

-6- 

ARTICLE 2 

REPRESENTATIONS AND WARRANTIES CONCERNING TRANSACTION

2.1       Representations and Warranties of
Orgenesis Parent. Orgenesis Parent, on behalf of itself only, represents and
warrants to Investor that the statements contained in this Section 2.1
are correct and complete as of the Closing Date, except as set forth in the
corresponding section of the Disclosure Schedule. The Parties hereby agree that
any items, references or disclosures made in the Disclosure Schedule shall be
subject to Section 9.15. 

(a)       Authorization of Transaction.
Orgenesis Parent is duly formed, validly existing and in good standing under the
Laws of the State of Nevada. Orgenesis Parent has full power, authority and
legal capacity to execute and deliver this Agreement and the Ancillary
Agreements to which Orgenesis Parent is a party and to perform Orgenesis
Parent’s obligations hereunder and thereunder and to complete the Reorganization
concurrently with the investment contemplated by this Agreement. The execution
and delivery by Orgenesis Parent of this Agreement and the Ancillary Agreements
to which Orgenesis Parent is a party and the completion of the Transactions have
been duly approved by all requisite action of Orgenesis Parent. Assuming the due
authorization, execution and delivery of this Agreement and the Ancillary
Agreements by the other parties thereto, this Agreement and each Ancillary
Agreement to which Orgenesis Parent is a party constitute the valid and legally
binding obligation of Orgenesis Parent, enforceable against Orgenesis Parent in
accordance with their terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors generally and by the availability of equitable remedies. Except as set
forth on Section 2.1(a) of the Disclosure Schedule, Orgenesis Parent is
not required to give any notice to, make any filing with, or obtain any Consent
of any Governmental Body or any other Person in connection with the consummation
of the Transactions. 

(b)       Non-contravention. Except as set
forth in Section 2.1(b) of the Disclosure Schedule, the execution
and the delivery of this Agreement and the Ancillary Agreements to which
Orgenesis Parent is a party, and the consummation of the Transactions, will not
(i) violate or conflict with any Law or Order to which Orgenesis Parent is
subject, (ii) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice or Consent under any
Contract to which Orgenesis Parent is a party or by which Orgenesis Parent or
any of its Subsidiaries is bound or to which any of Orgenesis Parent’s or assets
is subject, (iii) result in the imposition or creation of a Lien upon or with
respect to the Company Preferred Stock or any asset of Orgenesis Parent, or (iv)
violate any provision of the Organizational Documents of Orgenesis Parent. 

(c)       Brokers’ Fees. Orgenesis Parent
has no liability or obligation to pay any fees or commissions to any broker,
finder, or agent with respect to this Agreement or any Ancillary Agreement or
the Transactions. 

(d)       Company Securities. At the
Closing, the Company will issue the Company Preferred Stock to Investor, free
and clear of any Liens. Neither Orgenesis Parent nor the Company is a party to,
and the Company Securities are not subject to, any option, warrant, purchase right or other Contract or commitment that could
require the Company or Orgenesis Parent to sell, transfer, or otherwise dispose
of any Company Securities or any other equity interests of the Company (other
than this Agreement). Other than as set forth in the Stockholders’ Agreement,
neither Orgenesis Parent nor the Company is a party to any voting trust, proxy
or other Contract with respect to the voting of any Company Securities or any
other equity interests of the Company. 

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  (e)       Litigation. Orgenesis Parent is
  not engaged in or a party to or, to the Knowledge of Orgenesis Parent,
  threatened with any complaint, charge, Proceeding, Order or other process or
  procedure for settling disputes or disagreements with respect to the Company or
  any of its Subsidiaries or the Transactions, and Orgenesis Parent has not
  received written or, to the Knowledge of Orgenesis Parent, oral notice of a
  claim or dispute that is reasonably likely to result in any such complaint,
  charge, Proceeding, Order or other process or procedure for settling disputes or
  disagreements with respect to the Company or any of its Subsidiaries or the
Transactions. 

(f)       Reorganization. Orgenesis Parent
has full power, authority and legal capacity to execute the documents and
consummate the transactions necessary to effectuate the Reorganization. The
execution of the documents and consummation of the transactions necessary to
effectuate the Reorganization have been duly approved by all requisite action of
Orgenesis Parent. All assets (tangible and intangible), properties and rights
owned or developed, in whole or in part, by Orgenesis Parent in connection with
the operation of the Business or owned or licensed by Orgenesis Parent and used
in the operation of the Business any time during the twelve (12) months prior to
Closing, have been properly transferred, at Closing and concurrently with the
investment contemplated by this Agreement, free and clear of all Liens to the
Company and its Subsidiaries as a result of the Reorganization. 

(g)       Subsidiaries. Orgenesis Parent
represents that each of its applicable Subsidiaries has taken the necessary
actions (including the execution and delivery of all necessary documents and
agreements), and received the necessary approvals, required to consummate the
Transactions (including the Reorganization) and that such actions and the
consummation of the Transactions will not (i) violate or conflict with any Law
or Order to which any of the Subsidiaries of Orgenesis Parent is subject, (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice or Consent under any Contract to which any such
Subsidiary is a party or by which any such Subsidiary is bound or to which any
of their assets is subject, (iii) result in the imposition or creation of a Lien
upon or with respect to any asset of any such Subsidiary, or (iv) violate any
provision of the Organizational Documents of any such Subsidiary. All assets
(tangible and intangible), properties and rights owned, licensed or developed,
in whole or in part, by any of the Subsidiaries of Orgenesis Parent that are
required to operate the Business or used in the operation of the Business any
time during the twelve (12) months prior to Closing, have been properly
transferred free and clear of all Liens to the Company or one of its
Subsidiaries as a result of the Reorganization. 

2.2       Representations and Warranties of
Investor. Investor represents and warrants to the Company and Orgenesis
Parent that the statements contained in this Section 2.2 are correct and
complete as of the Closing Date. 

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(a)       Organization of Investor.
Investor is a limited liability company duly formed, validly existing and in
good standing under the Laws of the State of Delaware. 

(b)       Authorization of Transaction.
Investor has full power and authority to execute and deliver this Agreement and
the Ancillary Agreements to which Investor is a party and to perform Investor’s
obligations hereunder and thereunder. The execution and delivery by Investor of
this Agreement and the Ancillary Agreements to which Investor is a party and the
performance by Investor of the Transactions have been duly approved by all
requisite entity level action of Investor. Assuming the due authorization,
execution and delivery of this Agreement and the Ancillary Agreements by the
other parties thereto, this Agreement and each Ancillary Agreement to which
Investor is a party constitute the valid and legally binding obligation of
Investor, enforceable against Investor in accordance with their terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors generally and by the
availability of equitable remedies. Investor is not required to give any notice
to, make any filing with, or obtain any Consent of any Governmental Body or any
other Person in order to consummate the Transactions. 

(c)       Non-contravention. Neither the
execution and the delivery of this Agreement nor the Ancillary Agreements to
which Investor is a party, nor the consummation of the Transactions, will (i)
violate or conflict with any Law or Order to which Investor is subject, (ii)
violate any provision of the Organizational Documents of Investor or (iii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice or Consent under any Contract to which Investor
is a party or by which it is bound or to which any of its assets is subject.

(d)       Brokers’ Fees. Investor does not
have any liability or obligation to pay any fees or commissions to any broker,
finder or agent with respect to the Transactions for which Orgenesis Parent or
the Company could become liable or obligated. 

(e)       Investment. Investor is not
acquiring the Company Preferred Stock with a view to or for sale in connection
with any distribution thereof within the meaning of the Securities Act. 

(f)       Accredited Investor Status;
Investment Experience. Investor is an “accredited investor” as that term is
defined in Rule 501(a) of Regulation D promulgated under the Securities Act. The
Investor has such knowledge and experience in financial and business matters
such that the Investor is capable of evaluating the merits and risks of an
investment in the Company Preferred Stock, or has consulted with advisors who
possess such knowledge and experience. The Investor is able to bear the economic
risk and a complete loss of its investment in the Company for an indefinite
period of time. 

(g)       Reliance on Exemptions. Investor
understands that the Company Preferred Stock and any other capital stock into
which such Company Preferred Stock is convertible (collectively, the
“Securities”) are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state
securities laws and that the Company and Orgenesis Parent are relying in part
upon the truth and accuracy of, and Investor’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of Investor set forth
herein in order to determine the availability of such exemptions and the
eligibility of such Investor to acquire the Securities. 

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 (h)     
   Information. Investor acknowledges that it has received all of the
  information it considers necessary or appropriate for deciding whether to
  acquire the Securities. Investor and its advisors, if any, have been afforded
the opportunity to ask questions of the Company. 

(i)       No Government Review. Investor
understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or
endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits
of the offering of the Securities. 

(j)       Transfer or Resale. Investor
understands that: (i) the Securities have not been and may not being registered
under the Securities Act or any state securities laws, and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) Investor shall have delivered to the Company (if requested by
the Company) an opinion of counsel, in a form reasonably acceptable to the
Company, to the effect that such Securities to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from such
registration, or (C) Investor provides the Company with reasonable assurance
that such Securities can be sold, assigned or transferred pursuant to Rule 144
or Rule 144A promulgated under the Securities Act (or a successor rule thereto)
(collectively, “Rule 144”); (ii) any sale of the Securities made
in reliance on Rule 144 may be made only in accordance with the terms of Rule
144, and further, if Rule 144 is not applicable, any resale of the Securities
under circumstances in which the seller (or the Person through whom the sale is
made) may be deemed to be an underwriter (as that term is defined in the
Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the U.S. Securities and Exchange
Commission promulgated thereunder; and (iii) except as set forth in the
Stockholders’ Agreement, neither the Company nor any other Person is under any
obligation to register the Securities under the Securities Act or any state
securities laws or to comply with the terms and conditions of any exemption
thereunder unless otherwise agreed to by the Company and Investor. 

(k)       Investor (i) shall treat the purchase of
the Company Preferred Stock and the Reorganization as part of a plan of
reorganization pursuant to Section 351 of the Code (the “Tax Treatment”);
and (ii) will, and will cause its Affiliates to, prepare and file all applicable
Tax Returns required to be filed by Investor or its Affiliates with any
Governmental Authority in any manner consistent with the Tax Treatment and to
take no position inconsistent with the Tax Treatment in any applicable Tax
Return or in any proceeding before any Governmental Authority, unless otherwise
required by applicable Law. 

 (l)     
 There is no Contract of Investor to (i) dispose of the Company Preferred
Stock issued pursuant to this Agreement, (ii) require the Company to redeem any
of the Company Preferred Stock held by Investor (other than pursuant to the
redemption rights set forth in the Stockholders’ Agreement and the Company’s
Certificate of Incorporation), or (iii) require the Company to issue to Investor any stock of the Company for
services rendered to, or for the benefit of, the Company in connection with the
proposed transaction. 

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Nothing contained in this Section 2.2, nor any breach by
  Investor of any of its representations contained in this Section 2.2,
  shall limit, modify, amend or affect in any way Investor’s right (i) to rely on
  the representations and warranties contained in this Agreement or (ii) to
  receive indemnification from Orgenesis Parent in connection with any breach of
  any representations and warranties contained in this Agreement. For the sake of
  clarity, nothing in this paragraph shall derogate from, or limit, any of the
  restrictions, exclusions or limitations to Investor’s right to receive
  indemnification from Orgenesis Parent set forth in Section 4.10, Article
6 and Section 9.15. 

ARTICLE 3 

REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY AND ITS
SUBSIDIARIES 

 The Company represents and warrants to
Investor that the statements contained in this Article 3 are correct and
complete as of the Closing Date, except as set forth in the corresponding
section of the Disclosure Schedule. 

 3.1     
 Organization, Qualification, and Power. Section 3.1(a) of the
Disclosure Schedule sets forth the jurisdiction of incorporation or
formation of the Company and each of its Subsidiaries and each state or other
jurisdiction in which the Company and each of its Subsidiaries is licensed or
qualified to do business. The Company and each of its Subsidiaries are duly
organized, validly existing and in good standing under the Laws of their
respective jurisdictions of incorporation or formation. The Company and each of
its Subsidiaries are duly authorized to conduct their business and are in good
standing under the Laws of each jurisdiction where such qualification is
required. The Company and each of its Subsidiaries have full power and authority
and all Permits necessary to carry on the businesses in which they are engaged
and to own, lease and use the properties owned, leased and used by them.
Section 3.1(b) of the Disclosure Schedule lists the board of
directors, managers, management board and officers, as the case may be, of the
Company and each of its Subsidiaries. The Company has delivered to Investor
correct and complete copies of the Organizational Documents, the minute book and
equity interest record books for the Company and each of its Subsidiaries, each
of which is correct and complete. Neither the Company nor any of its
Subsidiaries is in default under or in violation of any provision of their
Organizational Documents. 

 3.2      
Authorization of Transaction. The Company and each of its Subsidiaries
has full power, authority and legal capacity to execute and deliver the
Agreement and the Ancillary Agreements to which it is a party and to perform its
obligations hereunder and thereunder and to complete the Reorganization. The
execution and delivery by the Company and its Subsidiaries of the Agreement and
the Ancillary Agreements to which it is a party and the performance by the
Company and its Subsidiaries of the Transactions have been duly approved by all
requisite entity level action of the Company and its Subsidiaries. Assuming the
due authorization, execution and delivery of this Agreement and the Ancillary
Agreements by the other parties thereto, this Agreement and each Ancillary
Agreement to which the Company and its Subsidiaries are a party constitute the valid and legally binding obligation of the
Company and such Subsidiaries (as the case may be), enforceable against the
Company and such Subsidiaries (as the case may be) in accordance with their
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors generally and by
the availability of equitable remedies. Except as set forth on Section 3.2 of
the Disclosure Schedule, neither the Company nor any of its Subsidiaries is
required to give any notice to, make any filing with, or obtain any Consent of
any Governmental Body or any other Person in connection with the consummation of
the Transactions. 

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  3.3       Capitalization and Subsidiaries.

(a)       622,000 shares of Common Stock of the
Company, par value $0.0001 per share (the “Company Common Stock”) are
owned beneficially and of record by Orgenesis Parent and Orgenesis Parent has
good and indefeasible title to all of the Company Common Stock free and clear of
all Liens. Upon the Closing, (i) the Company Preferred Stock shall be owned
beneficially and of record by Investor, (ii) the Company Common Stock and the
Company Preferred Stock (collectively, the “Company Securities”) shall
represent one hundred percent (100%) of the outstanding equity or other
ownership interests in the Company, and (iii) all of the Company Securities
shall have been duly authorized, validly issued, fully paid, and shall be
non-assessable and shall have been issued without violation of any preemptive
right or other right to purchase. There are no outstanding securities
convertible or exchangeable into equity or other ownership interests of the
Company, and other than as set forth in the Stockholders’ Agreement, there are
no options, warrants, purchase rights, subscription rights, conversion rights,
exchange rights, calls, puts, rights of first refusal or other Contracts that
could require the Company to issue, sell or otherwise cause to become
outstanding or to acquire, repurchase or redeem equity or other ownership
interests in the Company. There are no outstanding or authorized equity
appreciation, phantom equity, profit participation or similar rights with
respect to the Company. Other than as set forth in the Stockholders’ Agreement,
there are no voting trusts, proxies or other Contracts with respect to the
voting of the equity or other ownership interests of the Company. Upon the
Closing, the Company Preferred Stock will be delivered to Investor free and
clear of all Liens, and Investor will have good and marketable title to the
Company Preferred Stock. 

(b)       All of the Subsidiaries, direct and
indirect, of the Company are listed in Section 3.3(b)(i) of the Disclosure
Schedule. Section 3.3(b)(i) of the Disclosure Schedule lists the
entire authorized stock, equity or other ownership interests of each such
Subsidiary and the record and beneficial owner of such stock, equity or other
ownership interests, all of which have been duly authorized, are validly issued,
fully paid and non-assessable and have been issued without violation of any
preemptive right or other right to purchase. The Company owns, directly or
indirectly, all of the stock, equity or other ownership interests of the
Subsidiaries listed in Section 3.3(b)(i) of the Disclosure Schedule, free
and clear of all Liens except as set forth in Schedule 3.3(b)(i) of the
Disclosure Schedule. There are no outstanding securities convertible or
exchangeable into stock, equity or other ownership interests of any such
Subsidiary, and there are no options, warrants, purchase rights, subscription
rights, conversion rights, exchange rights, calls, puts, rights of first refusal
or other Contracts that could require any such Subsidiary to issue, sell or
otherwise cause to become outstanding or to acquire, repurchase or redeem stock,
equity or other ownership interests in any such Subsidiary. There are no outstanding or authorized equity appreciation, phantom
appreciation, profit participation or similar rights with respect to any
Subsidiary required to be listed on Section 3.3(b)(i) of the Disclosure Schedule. There are no voting trusts, proxies or other
Contracts with respect to the voting of the stock, equity or other ownership
interests of any such Subsidiary. 

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  (c)       Notwithstanding anything contained in
  this Agreement or in any section of the Disclosure Schedule, within four (4)
  Business Days after the date hereof, (i) the Company owns beneficially and of
  record free and clear of all Liens (A) 83.32% of the equity interests of
  MaSTherCell S.A., a company organized under the laws of Belgium, (B) all of the
  equity interests of Cell Therapy Holding S.A., a company organized under the
  laws of Belgium, (C) all of the equity interests of Israel Sub and (D) all of
  the equity interests of South Korea Sub other than the shares of South Korea Sub
  referenced in Section 3.3(b)(i) of the Disclosure Schedule, (ii) the
  Company has the full and unrestricted right to acquire all of the shares of
  South Korea Sub referenced in Section 3.3(b)(i) of the Disclosure
    Schedule promptly after the Closing Date and any amounts payable to or
  obligations owed to the holder of such shares in connection with the acquisition
  of such shares shall be the sole responsibility of Orgenesis Parent, (iii) there
  are no outstanding securities convertible or exchangeable into stock, equity or
  other ownership interests of any of the Company’s Subsidiaries, and there are no
  options, warrants, purchase rights, subscription rights, conversion rights,
  exchange rights, calls, puts, rights of first refusal or other Contracts that
  could require any such Subsidiary to issue, sell or otherwise cause to become
  outstanding or to acquire, repurchase or redeem stock, equity or other ownership
  interests in any such Subsidiary, (iv) there are no amounts payable by the
  Company or any of its Subsidiaries to any former equityholder of any Subsidiary
  of the Company in connection with (A) the acquisition of equity interests from
  such former equityholder or (B) the Reorganization, and (v) any amounts payable
  to any former equityholder of any Subsidiary of the Company in connection with
  (A) the acquisition of equity interests from such former equityholder or (B) the
Reorganization are obligations of Orgenesis Parent. 

 3.4     
 Non-contravention. Neither the execution and the delivery of this
Agreement and the Ancillary Agreements to which the Company or any of its
Subsidiaries is a party, nor the consummation of the Transactions, will (i)
violate or conflict with any Law or Order to which the Company or any of its
Subsidiaries is subject, (ii) violate or conflict with any provision of the
Organizational Documents of the Company or any of its Subsidiaries, or (iii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice, Consent or payment under any Contract or
Permit to which the Company or any of its Subsidiaries is a party or by which it
is bound or to which any of its assets is subject (or result in the imposition
or creation of any Lien upon or with respect to any of its assets).

 3.5     
 Brokers’ Fees. Except as set forth on Section 3.5 of the
Disclosure Schedule, neither the Company nor any of its Subsidiaries has any
liability or obligation to pay any fees or commissions to any broker, finder, or
agent with respect to the Transactions. 

3.6       Assets. 

(a)       The Company and its Subsidiaries have
good and marketable title to, or a valid leasehold interest or license in, all
of the assets (tangible and intangible), properties and rights used in the operation of the Business or developed for
use, in whole or in part, in connection with the Business, free and clear of all
Liens, except for Permitted Liens. The assets, properties and rights owned by
the Company and its Subsidiaries are all the assets, properties and rights
necessary to operate the Businesses, consistent with past practice. 

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  (b)       The buildings, machinery, equipment and
  other tangible assets that the Company and its Subsidiaries own and lease are
  free from material defects (patent and latent), have been maintained in all
  material respects in accordance with normal industry practice, are in good
  operating condition and repair (subject to normal wear and tear) and are
  suitable for the purposes for which they are presently used. None of the
  personal or moveable property owned or leased by the Company or any of its
  Subsidiaries is located at any facility other than the Leased Real Property.

3.7       Financial Statements; Interim
Conduct. 

(a)       Attached to Section 3.7(a)(i) of the
Disclosure Schedule are correct and complete copies of the following
financial statements of the Company and its Subsidiaries (collectively, the
“Financial Statements”): (i) unaudited consolidated balance sheets,
statements of income, equityholders’ equity and cash flows as of and for the
fiscal years ended November 31, 2015 and November 31, 2016 (the “Most Recent
Fiscal Year End”) after giving pro forma effect to the Reorganization; (ii)
unaudited consolidated balance sheets, statements of income, equityholders’
equity and cash flows (the “Most Recent Financial Statements”) as of and
for the fiscal year ended November 30, 2017 and as of and for the three (3)
month period ended February 28, 2018 (the “Most Recent Fiscal Month End”)
after giving pro forma effect to the Reorganization, and (iii) unaudited balance
sheets, statements of income, equityholders’ equity and cash flows as of and for
the year to date period ended April 30, 2018 for MaSTherCell S.A. only. The
Financial Statements are correct and complete and consistent with the books and
records of the Company and its Subsidiaries (which are in turn correct and
complete), have been prepared in accordance with GAAP consistently applied, do
not reflect any revenue or assets other than those used in the Business, and
present fairly in all material respects the financial condition, results of
operation, changes in equity and cash flow of the Company and its Subsidiaries
as of and for their respective dates and for the periods then ending after
giving effect to the Reorganization on a pro forma basis; provided,
however, that the Most Recent Financial Statements are subject to normal,
recurring year-end adjustments and lack notes (none of which will be material
individually or in the aggregate). Section 3.7(a)(ii) of the Disclosure
Schedule sets forth (x) a schedule setting forth all pro forma adjustments
made to the Financial Statements in order to give pro forma effect to the
Reorganization and (y) a reasonably detailed description of all adjustments that
were made to Orgenesis Parent’s internal financial statements when preparing the
Financial Statements (including the amount of each such adjustment and the
methodology utilized in its determination). All adjustments set forth on
Section 3.7(a)(ii) of the Disclosure Schedule are reasonable and
were prepared in good faith by Orgenesis Parent. The Financial Statements do not
reflect or include any revenues other than revenue generated from the operation
of the Business and do not reflect or include any assets other than assets
owned, at the time of Closing, by the Company or its Subsidiaries and used in
the Business. Section 3.7(a)(iii) of the Disclosure Schedule sets
forth the budget for the Company and its Subsidiaries for the three (3) month
period ended May 31, 2018 and the operations and performance of the Company and its Subsidiaries during such period has been
materially consistent with such budget. 

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  (b)       Since the Most Recent Fiscal Year End,
  the Business has been conducted in the Ordinary Course of Business, and there
  has not been any Material Adverse Effect and no event has occurred which could
  reasonably be expected to result in a Material Adverse Effect. Except as set
  forth on Section 3.7(b) of the Disclosure Schedule, since the Most Recent
  Fiscal Year End neither the Company, nor any of its Subsidiaries, nor the
Business has: 

(i)       sold, leased, transferred or assigned
any assets or property (tangible or intangible) with a value in excess of
$25,000 (or $100,000 in the aggregate), other than sales of inventory in the
Ordinary Course of Business; 

(ii)       experienced any damage, destruction or
loss (whether or not covered by insurance) to its assets or property (tangible
or intangible) in excess of $25,000 (or $100,000 in the aggregate); 

(iii)       accelerated, terminated, cancelled or
allowed to expire any Contract, which, if in existence on the date hereof, would
be required to be listed on Section 3.13 of the Disclosure Schedule or
received notice from any Person regarding the acceleration, termination,
modification or cancellation of a Contract required to be listed on Section
3.13 of the Disclosure Schedule; 

(iv)      issued, created, incurred, assumed or
guaranteed any Debt; 

(v)       forgave, cancelled, compromised, waived
or released any Debt owed to it or any right or claim except for resolving its
accounts receivable in the Ordinary Course of Business; 

(vi)       issued, sold or otherwise disposed of
any of its equity or other ownership interests, or granted any options, warrants
or other rights to acquire (including upon conversion, exchange or exercise) any
of its equity or other ownership interests or declared, set aside, made or paid
any dividend or distribution with respect to its equity or other ownership
interests or redeemed, purchased or otherwise acquired any equity or other
ownership interest or amended or made any change to any of its Organizational
Documents or made any other payment to its members or equityholders (or any
Affiliates of such members or equityholders); 

(vii)       granted any increase in salary, wages
or bonus or otherwise increased the compensation or benefits payable or provided
to any director, manager, officer, employee, consultant, advisor or agent;

(viii)      
engaged in any promotional, sales or discount or other activity that has or
could reasonably be expected to have the effect of accelerating sales or
receivables prior to the Closing that would otherwise be expected to occur
subsequent to the Closing; 

(ix)       made any commitment outside of the
Ordinary Course of Business or in excess of $25,000 in the aggregate for capital
expenditures to be paid after the Closing or failed to incur capital expenditures in accordance
with its capital expense budget; 

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  (x)        incurred any material liability or
obligation; 

(xi)       instituted any material change in the
conduct of their business or any material change in its accounting practices or
methods, cash management practices or method of purchase, sale, lease,
management, marketing, or operation; 

(xii)       taken or omitted to take any action
which could be reasonably anticipated to have a Material Adverse Effect; 

(xiii)       made, changed or rescinded any Tax
election, settled or compromised any Tax liability, amended any Tax Return or
took any position on any Tax Return, took any action, omitted to take any action
or entered into any other transaction that would have the effect of materially
increasing the Tax liability or materially reducing any Tax assets of the
Company in respect of any taxable period ending after the Closing Date;

                (xiv)     
collected its accounts receivable or paid any accrued liabilities or accounts
payable or prepaid any expenses or other items, in each case other than in the
Ordinary Course of Business; 

(xv)       entered into any transaction with any
Affiliate; and

(xvi)       agreed or committed to any of the
foregoing. 

(c)       All notes and accounts receivable
reflected on the Most Recent Financial Statements, and all accounts receivable
of the Company and its Subsidiaries and the Business generated since the Most
Recent Fiscal Month End (the “Receivables”), constitute bona fide
receivables resulting from the sale of inventory, services or other obligations
in favor of the Company and its Subsidiaries as to which full performance has
been fully rendered, and are valid and enforceable claims. The Receivables are
not subject to any pending, or to the Company’s Knowledge threatened, defense,
counterclaim, right of offset, returns, allowances or credits, except to the
extent reserved in the final calculation of Working Capital.

(d)       Except as otherwise set forth in
Section 3.7(d) of the Disclosure Schedule, all accounts payable of the
Company and its Subsidiaries have either been paid when due, are not yet due and
payable in the Ordinary Course of Business, or are being contested by the
Company and its Subsidiaries in good faith.      

(e)       The inventory of the Company and its
Subsidiaries includes only items sold by the Company and its Subsidiaries in the
Ordinary Course of Business. The inventory disposed of subsequent to the date of
the Most Recent Fiscal Year End has been disposed of only in the Ordinary Course
of Business. 

 3.8        Undisclosed Liabilities.
The Company and its Subsidiaries do not have any, and to the Company’s Knowledge
there is no basis for any, liability (whether known or unknown, whether asserted or unasserted, whether absolute or contingent,
whether accrued or unaccrued, whether liquidated or unliquidated, and whether
due or to become due), except for liabilities that (a) are accrued or reserved
against in the Most Recent Financial Statements, (b) were incurred subsequent to
the Most Recent Fiscal Month End in the Ordinary Course of Business, (c) result
from the obligations of the Company under this Agreement or the Ancillary
Agreements, or (d) liabilities and obligations pursuant to any Contract listed
on Section 3.13 of the Disclosure Schedule or not required by the
terms of Section 3.13 to be listed on Section 3.13 of the Disclosure Schedule, in either case which arose in the Ordinary Course of
Business and did not result from any default, tort, breach of contract or breach
of warranty. 

-16- 

3.9       Legal Compliance. 

(a)       The Business and the Company and its
Subsidiaries (and with respect to the South Korean Sub, to the Company’s
Knowledge), and their respective predecessors and Affiliates, have complied and
are currently in compliance with all applicable Laws and Orders in all material
respects as such relate to the Business, and no Proceeding has been filed or
commenced or, to the Knowledge of the Company, threatened alleging any failure
so to comply. Except as otherwise set forth in Section 3.9 of the Disclosure
Schedule, since January 1, 2014, Orgenesis Parent, the Company and their
Subsidiaries have not received any notice or communication alleging any
non-compliance of the foregoing. 

(b)       Section 3.9(b) of the Disclosure
Schedule sets forth a correct and complete list of all Permits held by the
Company and its Subsidiaries. Such Permits (i) constitute all material Permits
necessary for the operation of the Business and (ii) are in full force and
effect. No Proceeding is pending or, to the Knowledge of the Company, threatened
to revoke or limit any Permit. 

(c)       Neither the Business, nor the Company,
nor any of its Subsidiaries, nor any of their officers, managers, equityholders,
directors, agents, employees or any other Persons acting on their behalf has (i)
violated the U.S. Foreign Corrupt Practices Act or any other applicable
anti-bribery or anti-corruption Law, (ii) authorized or made any illegal payment
or provided any unlawful compensation or gifts to any officer, employee or agent
of any Governmental Body, or any employee, customer or supplier of the Business
or the Company or any of its Subsidiaries, or (iii) accepted or received any
unlawful contributions, payments, expenditures or gifts; and no Proceeding has
been filed or commenced alleging any such contributions, payments, expenditures
or gifts. 

3.10       Tax Matters. 

(a)       The Business and the Company and its
Subsidiaries have filed with the appropriate taxing authorities all income and
other material Tax Returns that they were required to file. All such Tax Returns
are correct and complete in all material respects. All Taxes due and owing by
the Business and the Company and its Subsidiaries (whether or not shown on any
Tax Return) have been paid. The Company and its Subsidiaries are not currently
the beneficiary of any extension of time within which to file any Tax Return or
pay any Tax. There are no Liens for Taxes (other than Taxes not yet due and
payable) upon the Business or the Company Securities or any of the assets of the
Company or any of its Subsidiaries. 

-17- 

(b)       The accrual for Taxes on the Most Recent
Balance Sheet, as adjusted for the passage of time through the Closing Date in
accordance with past practice, would be adequate to pay all unpaid Taxes of the
Company and its Subsidiaries through the Closing Date. 

(c)       No material deficiency or proposed
adjustment for any amount of Tax has been proposed, asserted or assessed by any
taxing authority against the Business or the Company and its Subsidiaries that
has not been paid, settled or otherwise resolved. There is no Proceeding or
audit now pending, proposed or, to the Knowledge of the Company, threatened
against the Company or any of its Subsidiaries or concerning the Company or any
of its Subsidiaries with respect to any Taxes. The Business, the Company and its
Subsidiaries have not been notified by any taxing authority that any issues have
been raised with respect to any Tax Return. There has not been, within the past
five (5) calendar years, an examination or written notice of potential
examination of the Tax Returns filed with respect to the Business or the Company
or any of its Subsidiaries by any taxing authority. 

(d)      All income and other material Taxes that are
required to be withheld or collected by the Business, the Company and its
Subsidiaries, including, but not limited to, Taxes arising as a result of
payments (or amounts allocable) to foreign persons or to employees, agents,
contractors or equityholders of the Company or any of its Subsidiaries, have
been duly withheld and collected and, to the extent required, have been properly
paid or deposited as required by applicable Laws. 

(e)       No claim has ever been made by any
taxing authority in a jurisdiction where the Business, the Company or any of its
Subsidiaries do not file Tax Returns that they are or may be subject to taxation
by that jurisdiction. 

(f)       Neither the Company nor any of its
Subsidiaries is a “United States real property holding corporation” within the
meaning of Section 897(c)(2) of the Code. 

(g)       The Business has not waived any statute
of limitations in respect of Taxes or agreed to any extension of time with
respect to the payment of any Tax or any Tax assessment or deficiency. 

(h)       Neither the Company nor any of its
Subsidiaries is a party to any “reportable transaction,” as defined in Treasury
Regulation Section 1.6011 -4(b), and none of the Business, the Company or any of
its Subsidiaries has been a party to such a transaction nor has claimed any Tax
benefit from any such transaction in any taxable year which remains open to or
for assessment. 

(i)       None of the Business, the Company or any
of its Subsidiaries (i) has been a member of an affiliated group filing a
consolidated federal income Tax Return (other than a group the common parent of
which was the Company or Orgenesis Parent) or (ii) has any liability for the
Taxes of any Person (other than any of the Company or its Subsidiaries) under
Treasury Regulation Section 1.1502 -6 (or any similar provision of state, local
or foreign Law), as a transferee or successor, by Contract, or otherwise. 

(j)       None of the Business, the Company or any
of its Subsidiaries has engaged in a trade or business, had a permanent
establishment (within the meaning of an applicable Tax treaty or convention between the United States and such foreign
country), or otherwise been subject to taxation in any country other than the
country of its formation. 

-18- 

  (k)       None of the Business, the Company or any
  of its Subsidiaries is or has been a party to a transaction or Contract that is
  in conflict with the Tax Laws related to transfer pricing in any relevant
  jurisdiction. All applicable transfer pricing Laws have been complied with by
  the Business, the Company and its Subsidiaries, and all documentation required
  by all relevant transfer pricing Laws have been timely prepared and, if
necessary, retained. 

(l)       Section 3.10(l) of the Disclosure
Schedule lists the United States federal tax classification of each
Subsidiary of the Company. 

3.11       Real Property. 

(a)       The Business and the Company and its
Subsidiaries do not own, and have never owned, any real property. 

(b)       Section 3.11(b) of the Disclosure
Schedule sets forth the address of each parcel of Leased Real Property, and
a true and complete list of all Leases for each parcel of Leased Real Property.

(c)       Subject to the respective terms and
conditions in the Leases, the Company or one of its Subsidiaries is the sole
legal and equitable owner of the leasehold interest in the Leased Real Property
and possesses good and marketable, indefeasible title thereto, free and clear of
all Liens (other than Permitted Liens). 

(d)       With respect to each parcel of Leased
Real Property: (i) there are no pending or, to the Knowledge of the Company,
threatened condemnation Proceedings, suits or administrative actions relating to
any such parcel or other matters affecting adversely the current use, occupancy
or value thereof; (ii) the ownership and operation of the Leased Real Property
in the manner in which it is now owned and operated comply with all zoning,
building, use, safety or other similar Laws in all material respects; (iii) all
Improvements on any such parcel are in good operating condition, ordinary wear
and tear excepted, are supplied with utilities and other services necessary for
the operation of the Business as currently conducted at such facilities and safe
for their current occupancy and use; (iv) neither the Company, nor any of its
Subsidiaries nor Orgenesis Parent has received any notice of any special Tax,
levy or assessment for benefits or betterments that affect any parcel of Leased
Real Property and, to the Knowledge of the Company, no such special Taxes,
levies or assessments are pending or contemplated; (v) there are no Contracts
granting to any third party or parties the right of use or occupancy of any such
parcel, and there are no third parties (other than the Company and its
Subsidiaries) in possession of any such parcel except for such Contracts
relating to Orgenesis Parent and/or its Subsidiaries that are set forth on
Section 3.11(d) of the Disclosure Schedule; and (vi) each such parcel has
adequate vehicular access to a road and there is no pending or, to the Knowledge
of the Company, threatened termination of such access. The Leased Real Property
comprises all of the real property used or intended to be used in the Business,
and neither the Company nor any of its Subsidiaries is a party to any Contract,
option or right of first refusal to purchase any real property or any portion
thereof or interest therein. 

-19- 

3.12       Intellectual Property. 

(a)       The Company and its Subsidiaries own and
possess or have the right to use pursuant to a valid and enforceable written
Contract, all Intellectual Property used in or necessary for the operation of
the Business free and clear of all Liens.

(b)       To the Company’s Knowledge, the
operation of the Business and the Company and its Subsidiaries (and the
Business’s and the Company’s and its Subsidiaries’ products, services and
methods of operation) have not infringed upon, misappropriated, or violated any
Intellectual Property rights of third parties in any respect, and none of
Orgenesis Parent, the Company, nor any of their Subsidiaries, nor any of their
directors, managers and officers, has received any charge, complaint, claim,
demand, or notice alleging any such infringement, misappropriation, or violation
(including any claim that the Business or the Company or any of its Subsidiaries
must license or refrain from using any Intellectual Property rights of any third
party). No third party has challenged, infringed upon, misappropriated, or
violated any Intellectual Property rights of the Business or the Company or its
Subsidiaries. Section 3.12(b) of the Disclosure Schedule sets forth an
accurate list and description of any charge, complaint, claim, demand or notice
made by the Business, the Company or any of its Subsidiaries since January 1,
2015 alleging that a third party has interfered with, challenged, infringed
upon, misappropriated, or violated any Intellectual Property rights of the
Business, the Company or its Subsidiaries. 

(c)       Sections 3.12(c)(i)-(iii) of the
Disclosure Schedule identify the following Intellectual Property that is
owned by the Company or any of its Subsidiaries or currently used in the conduct
of the Business, whether registered or unregistered: (i) issued patents and
patent applications, and counterparts claiming priority therefrom, and all
related continuations, continuations-in-part, divisionals, reissues,
re-examinations, substitutions, and extensions thereof (together, the
“Patents”); (ii) trademarks, service marks, certification marks,
collective marks, logos, slogans, trade dress, trade names (including social
media user account names), and other source or business identifiers (together,
the “Trademarks”); and (iii) works of authorship and other copyrightable
subject matter, whether or not published, including copyrights, software code,
and databases (and all translations, derivative works, adaptations,
compilations, and combinations of the foregoing) (together, the
“Copyrights”). Section 3.12(c)(iv) of the Disclosure
Schedule identifies all internet domain names owned by the Company and its
Subsidiaries. Section 3.12(c)(v) of the Disclosure Schedule identifies
each license, sublicense, agreement, or other permission pursuant to which the
Business, the Company or any of its Subsidiaries have granted any rights to any
third party with respect to any of its Intellectual Property (together with any
exceptions). The Company and its Subsidiaries have all right, title and interest
in and to, free and clear of any Lien, license, or other restriction or
limitation regarding use, and have the sole and exclusive right to use all the
Intellectual Property required to be disclosed on Sections 3.12(c)(i)-(iv) of
the Disclosure Schedule (the “Designated Intellectual
Property”) (subject to the applicable license agreements listed in
Section 3.12(c)(v) of the Disclosure Schedule), and such
Intellectual Property is not subject to any outstanding Order restricting the
use or licensing thereof by the Company or any of its Subsidiaries, and the
Business, the Company and its Subsidiaries have not received any written claim
challenging the validity or effectiveness of such Intellectual Property, and
such Intellectual Property is valid and enforceable. 

-20- 

 (d)      
The Business, the Company (or its Subsidiaries to the extent applicable) have
made all necessary filings and paid all necessary registration, maintenance and
renewal fees to maintain the Designated Intellectual Property. 

 (e)     
 Each item of Intellectual Property owned or used by the Business, except
for Customer Intellectual Property (which, for the purposes hereof, shall
include any Intellectual Property of Orgenesis Parent or its Subsidiaries as a
Customer) the Company and its Subsidiaries immediately prior to the Closing will
be owned or available for use, respectively, by the Company and its Subsidiaries
immediately subsequent to the Closing on identical terms and conditions as owned
or used by the Business, the Company and its Subsidiaries immediately prior to
the Closing. 

(f)       Section 3.12(f) of the Disclosure
Schedule identifies all third party Software used by the Company and its
Subsidiaries in the operation of the Business (except for “off-the-shelf,”
commercially-available software). The Business has not owned or used, and the
Company and its Subsidiaries do not own or use, any Software developed by or for
the Business, the Company or its Subsidiaries. The Company and its Subsidiaries
have the right to use pursuant to a valid and enforceable written Contract, all
Software used by in the operation of the Business. 

  (g)     
 All Intellectual Property owned by the Company and its Subsidiaries was
developed by (i) employees of the Business, the Company or its Subsidiaries
within the scope of their employment; or (ii) independent contractors who have
entered into written agreements with the Business, the Company or one of its
Subsidiaries that assigned all right, title and interest in and to any
Intellectual Property developed to the Company or one of its Subsidiaries and
whereby the ownership of such Intellectual Property vested immediately in the
Company and its Subsidiaries (and to the extent that such vesting did not occur,
the independent contractor is required to assign all such ownership to the
Company and its Subsidiaries without further consideration). Except as set forth
in Section 3.12(g) of the Disclosure Schedule, no employee or independent
contractor of the Business, the Company or any of its Subsidiaries has entered
into any agreement, contract, obligation, promise or undertaking (whether
written or oral and whether express or implied) that restricts or limits in any
way the scope of the Intellectual Property owned by the Company and its
Subsidiaries or requires the employee or independent contractor to transfer,
assign or disclose information concerning the Intellectual Property owned by the
Company and its Subsidiaries to anyone other than the Company and its
Subsidiaries. 

 (h)     
Section 3.12(h) of the Disclosure Schedule contains a complete and
accurate list of all rights in internet domain names, user names, handles and
social media site names presently used or owned by the Company or its
Subsidiaries or otherwise used in connection with the Business. The Company or
its Subsidiaries own or have the right to use all such internet domain names,
subdomains, URLs, website names, social media site names, user names, handles,
email addresses, log-in names, passwords, pin numbers, customer numbers, and the
like, or other account information necessary to access, transfer, use and update
all of the foregoing presently used or owned by the Company or its Subsidiaries
(collectively “Net Names”). All Net Names have been registered in
the name of the Company or its Subsidiaries and are, and have been, in
compliance with all Laws. No Net Name has been or is now involved in any
dispute, opposition, invalidation or cancellation Proceeding and, to the
Company’s Knowledge, no such action is threatened with respect to any Net
Name. In addition, to the Knowledge of the Company and its Subsidiaries: (i) no
Net Name has been challenged, interfered with or threatened in any way and (ii)
no Net Name infringes, interferes with or is alleged to interfere with or
infringe the trademark, copyright or domain name of any other Person. 

-21- 

  (i)       The Company and its Subsidiaries have
  taken all necessary and reasonable steps to protect and preserve the
  confidentiality of all trade secrets, know-how, source code, databases, customer
  lists, schematics, ideas, algorithms and processes and all use, disclosure or
  appropriation thereof by or to any Person has been pursuant to the terms of a
  written agreement between such third party and the Company and its Subsidiaries.
  The Company and its Subsidiaries have complied with all of its confidentiality
  obligations under each Contract to which the Company and its Subsidiaries are a
party. 

3.13       Contracts. 

(a)       Section 3.13(a) of the Disclosure
Schedule lists the following Contracts to which the Company or any of its
Subsidiaries is a party: 

(i)       each Contract with any Material Customer
or Material Vendor;

(ii)       each lease, rental or occupancy
agreement, license, installment and conditional sale agreement, and other
Contract affecting the ownership of, leasing of, title to, use of, or any
leasehold or other interest in, any real or personal property; 

(iii)       each joint venture, partnership or
Contract involving a sharing of profits, losses, costs or liabilities with any
other Person; 

(iv)       each Contract relating to the
acquisition, sale, transfer or disposition by the Company or any of its
Subsidiaries of any material assets or properties, or of the operating business
or the capital stock of or other equity interests in any other Person; 

(v)       each Contract that contains provisions
granting any rights of first refusal, rights of first negotiation, rights of
exclusivity, most favored nations or similar rights to any Person; 

(vi)       each Contract for the purchase, sale or
license of any assets of the Company or any of its Subsidiaries, other than in
the Ordinary Course of Business, and each Contract granting an option or
preferential rights to purchase, sell or license any assets of the Company or
any of its Subsidiaries; 

(vii)       each Contract in which a Governmental
Body is a counterparty; 

(viii)       each Contract containing any covenant
that purports to restrict the business activity of the Company or any of its
Subsidiaries or limit the freedom of the Company or any of its Subsidiaries to
engage in any line of business or to compete with any Person; 

-22- 

(ix)       each Contract for or relating to, or
evidencing or guaranteeing, Debt;

(x)       each Contract providing for the payment
of any cash or other compensation or benefits in connection with the
Transactions; 

(xi)       each Contract with any labor union or
labor organization or any bonus, pension, profit sharing, retirement or any
other form of deferred compensation plan or practice, whether formal or
informal, or any severance agreement or arrangement; 

(xii)       each Contract under which the Company
or any of its Subsidiaries has advanced or loaned any amounts to any Person;

(xiii)       each franchise, dealership, vendor,
manufacturing or service center agreements; 

(xiv)       each Contract with Orgenesis Parent or
any Affiliate of the Company, any of its Subsidiaries, or Orgenesis Parent; 

(xv)       any settlement or similar agreement;

(xvi)      each employment or consulting Contract or
other Contract with any of their officers, managers, partners, directors,
employees, agents or representatives; 

(xvii)       each Intellectual Property Agreement;

(xviii)       each confidentiality agreement and
non-disclosure agreement still in effect; 

(xix)       each Contract which purports to be
binding on Affiliates of the Company (other than the Company’s Subsidiaries);
and 

(xx)       any other agreement material to the
Company or any of its Subsidiaries whether or not entered into in the Ordinary
Course of Business. 

(b)       The Company has delivered to Investor a
correct and complete copy of each written Material Contract, together with all
amendments, exhibits, attachments, waivers or other changes thereto. Section
3.13(b) of the Disclosure Schedule contains an accurate and complete
description of all material terms of all oral Material Contracts (if any). 

(c)       Each Material Contract is legal, valid,
binding, enforceable, in full force and effect and will continue to be legal,
valid, binding and enforceable on identical terms following the Closing Date.
Except as specifically disclosed and described in Section 3.13(c) of
the Disclosure Schedule, (i) no Material Contract has been breached or
cancelled by the Company, any of its Subsidiaries or, to the Knowledge of the
Company, any other party thereto, (ii) the Company or each of its Subsidiaries
has materially performed all obligations under such Material Contracts required
to be materially performed by the Company or such Subsidiary, (iii) there is no
event which, upon giving of notice or lapse of time or both, would constitute a
breach or default under any such Material Contract by the Company or
any of its Subsidiaries, or to the Company’s Knowledge, by any other party, or
would permit the termination, modification or acceleration of such Material
Contract, (iv) no party has given notice of breach, default, termination or
non-renewal of any Material Contract, and (v) neither the Company nor any of its
Subsidiaries has assigned, delegated or otherwise transferred to any Person any
of its rights, title or interest under any such Material Contract. 

-23- 

  (d)       Section 3.13(d) of the Disclosure
    Schedule sets forth each Contract to which Orgenesis Parent or any of its
  Subsidiaries is a party that is used in the operation of the Business or was
  used in the operation of the Business any time during the twelve (12) months
prior to Closing.      

 3.14     
 Insurance. Section 3.14(a) of the Disclosure Schedule sets
forth the following information with respect to each insurance policy (including
policies providing property, casualty, liability, director & officer, and
workers’ compensation coverage and bond and surety arrangements) with respect to
which the Company or any of its Subsidiaries is a party, a named insured, or
otherwise the beneficiary of coverage (collectively, the “Company
Insurance Agreements”): (a) the name of the insurer, the name of the
policyholder, and the name of each covered insured; (b) the policy number and
the period of coverage; and (c) a description of any retroactive premium
adjustments or other material loss-sharing arrangements. 

There is no claim by the Company or any of its Subsidiaries or
any other Person pending under any such policies and bonds related to the
Business as to which coverage has been questioned, denied or disputed. All
premiums payable under all such policies and bonds have been paid. To the
Company’s Knowledge, there are no threatened terminations of, or material
premium increases with respect to, any of such policies or bonds. Section
3.14(b) of the Disclosure Schedule sets forth a list of all claims
made under the Company Insurance Agreements, or under any other insurance
policy, bond or agreement covering the Business, the Company or any of its
Subsidiaries or their operations since January 1, 2014. Except as otherwise set
forth in Section 3.14(b) of the Disclosure Schedule, since January 1,
2014, the Business, the Company and its Subsidiaries have maintained insurance
policies with coverage and policy limits that are substantially similar to the
coverage and policy limits provided by the Company Insurance Agreements. 

3.15       Litigation. Except as set forth
in Section 3.15(a) of the Disclosure Schedule, there are no (and during
the last four (4) years preceding the date hereof, there have not been any)
complaints, charges, Proceedings, Orders, or investigations pending or, to the
Knowledge of the Company, threatened or anticipated relating to or affecting the
Business, the Company or any of its Subsidiaries. There is no outstanding Order
to which the Business, the Company or any of its Subsidiaries is subject.
Section 3.15(b) of the Disclosure Schedule sets forth an accurate list
and description of all Proceedings that the Company or any of its Subsidiaries
or Orgenesis Parent or its Affiliates (to the extent related to the Company or
its Subsidiaries or the Business) has initiated or threatened in writing to
initiate since January 1, 2014. 

-24- 

3.16       Employees. 

(a)       Section 3.16(a)(i) of the Disclosure
Schedule sets forth a complete and correct list of all officers, employees
and consultants of the Company and its Subsidiaries, showing for each: (i) name,
(ii) hire date, (iii) current job title, (iv) actual base salary, bonus,
commission or other remuneration paid during 2017, (v) 2018 base salary level
and 2018 target bonus, and (vi) indicating whether there has been any increase
in compensation, bonus, incentive, or service award or any grant of any
severance or termination pay or any other increase in benefits or any commitment
to do any of the foregoing since January 1, 2017. Section 3.16(a)(ii) of the
Disclosure Schedule sets forth a complete and correct list of all employees
or contractors of Orgenesis Parent or any of its Subsidiaries who, any time
during the twelve (12) months prior to Closing, were utilized in the operation
of the Business or spent a material amount of time working on matters related
to, or providing material services in, the operation of the Business. 

(b)       The Company has provided Investor with
access to complete and correct copies of all trade secret, non-compete,
non-disclosure and invention assignment agreements, and all manuals and
handbooks applicable to any current or former director, manager, officer,
employee or consultant of the Company or any of its Subsidiaries. The employment
or consulting arrangement of each officer, employee or consultant of the Company
and its Subsidiaries is, subject to applicable Laws involving the wrongful
termination of employees and consultants, terminable at will (without the
imposition of penalties or damages) by the Company or its Subsidiaries as the
case may be, and neither the Company nor any of its Subsidiaries has any
severance obligations if any such officer, employee or consultant is terminated.
To the Knowledge of the Company, no officer, employee or consultant of the
Company or any of its Subsidiaries or any group of officers, employees or
consultants of the Company or any of its Subsidiaries has any plans to terminate
its employment or consulting arrangement with the Company or any of its
Subsidiaries.

(c)       Neither the Business, nor the Company
nor any of its Subsidiaries has experienced (nor, to the Knowledge of the
Company, has it been threatened with) any strike, slow down, work stoppage or
material grievance, claim of unfair labor practices, or other collective
bargaining dispute within the past three (3) years. Neither the Business, nor
the Company nor any of its Subsidiaries has committed any material unfair labor
practice. The Company has no Knowledge of any organizational effort presently
being made or threatened by or on behalf of any labor union with respect to
employees of the Company or its Subsidiaries. The Business and the Company and
each of its Subsidiaries have paid in full to all of its employees and
independent contractors all wages, salaries, commissions, bonuses, benefits and
other compensation due and payable to such employees and independent
contractors. 

3.17       Employee Benefits. 

(a)       Section 3.17 of the Disclosure
Schedule lists each Employee Benefit Plan that the Company or any of its
Subsidiaries maintains or to which the Company or any of its Subsidiaries
contributes or has any obligation to contribute or with respect to which the
Company and its Subsidiaries have any liabilities. 

-25- 

(i)       Each such Employee Benefit Plan (and
each related trust, insurance Contract, or fund, if any) has been maintained,
funded and administered in accordance with the terms of such Employee Benefit
Plan and complies in form and in operation in all respects with applicable Laws.

(ii)       All required reports and descriptions
have been timely filed and/or distributed in accordance with the applicable Laws
with respect to each such Employee Benefit Plan. The requirements of applicable
Laws have been met in all material respects with respect to each such Employee
Benefit Plan. 

(iii)       All contributions (including all
employer contributions and employee salary reduction contributions) that are due
have been made within the time periods prescribed by applicable Laws to each
applicable Employee Benefit Plan. All premiums or other payments for all periods
ending on or before the Closing Date have been paid with respect to each such
Employee Benefit Plan. 

(iv)       The Business, the Company and its
Subsidiaries do not have any Employee Benefit Plans subject to the Laws of the
United States. 

(v)      There have been no prohibited transactions
with respect to any such Employee Benefit Plan and no fiduciary with respect to
any such Employee Benefit Plan has any liability for material breach of
fiduciary duty or any other failure to act or comply in connection with the
administration or investment of the assets of any such Employee Benefit Plan. No
Proceeding with respect to the administration or the investment of the assets of
any such Employee Benefit Plan (other than routine claims for benefits) is
pending or, to the Knowledge of the Company, threatened. 

(vi)       The Company has made available to
Investor correct and complete copies of the plan documents and summary plan
descriptions, the most recent annual reports, and all related trust agreements,
insurance Contracts, and other funding arrangements which implement each such
Employee Benefit Plan. 

3.18       Debt. Except as set forth on
Section 3.18 of the Disclosure Schedule, the Company and its Subsidiaries
do not have any Debt and are not liable for any Debt of any other Person. 

 3.19     
 Environmental, Health, and Safety Matters. 

(a)       The Business, the Company and its
Subsidiaries have complied and are in compliance with all Environmental, Health,
and Safety Requirements. 

(b)       Without limiting the generality of the
foregoing, the Business, the Company and its Subsidiaries have obtained, have
complied, and are in compliance with all Permits and other authorizations that
are required pursuant to Environmental, Health, and Safety Requirements for the
occupation of the facilities of the Company and its Subsidiaries and the
operation of the Business. A list of all such Permits and other authorizations
is set forth on Section 3.19(b) of the Disclosure Schedule. 

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(c)       Neither the Business, the Company nor
any of its Subsidiaries has received any written or oral notice, report or other
information regarding any actual or alleged violation of Environmental, Health,
and Safety Requirements, or any liabilities or potential liabilities (whether
accrued, absolute, contingent, unliquidated or otherwise), including any
investigatory, remedial or corrective obligations, relating to any of them,
their current or former facilities or the Leased Real Property arising under
Environmental, Health, and Safety Requirements. 

(d)       Except as set forth on Section
3.19(d) of the Disclosure Schedule, no property or facility owned, leased or
operated by the Company or its Subsidiaries contains any underground storage
tanks currently, nor, to the Knowledge of the Company, has contained any
underground storage tanks in the past. 

(e)       Neither the Business, the Company nor
any of its Subsidiaries has treated, stored, disposed of, arranged for or
permitted the disposal of, transported, handled, or released any substance,
including without limitation any Hazardous Substance, or owned or operated any
property or facility (and no such property or facility is contaminated by any
such substance) in a manner that has given or would give rise to material
liabilities, including any material liability for investigation costs, response
costs, remedial costs, corrective action costs, personal injury, property
damage, natural resources damages or attorney and consultant fees and costs,
pursuant to any Environmental, Health, and Safety Requirements or any other
applicable Law. 

(f)       There are no environmental conditions or
circumstances on the Leased Real Property that pose an unreasonable risk to the
environment or the health or safety of Persons or Hazardous Substances present
at, on or under the Leased Real Property in violation of Environmental, Health,
and Safety Requirements. 

(g)       Neither this Agreement nor the
consummation of the Transactions will result in any obligations for site
investigation or cleanup, or notification to or Consent of Governmental Bodies
or third parties, pursuant to any of the Environmental, Health, and Safety
Requirements. 

(h)       Section 3.19(h) of the Disclosure
Schedule lists each written environmental audit, health and safety audit,
Phase I environmental site assessment, Phase II environmental site assessment or
investigation, soil and/or groundwater report, environmental compliance
assessment prepared within the past five (5) years by the Business, the Company
or any of its Subsidiaries or, to the Knowledge of the Company, any Governmental
Body under the Environmental, Health, and Safety Requirements relating to any
property currently or formerly owned or operated by the Business, the Company or
any of its Subsidiaries or their Affiliates. 

3.20       Business Continuity. Except as
set forth in Section 3.20 of the Disclosure Schedule, none of the
Software, computer hardware (whether general or special purpose),
telecommunications capabilities (including all voice, data and video networks),
data storage and other similar or related items of automated, computerized,
and/or software systems and any other networks or systems and related services
that are used by or relied on by the Business, the Company or its Subsidiaries
in the conduct of the Business (collectively, the “Systems”) have
experienced bugs, failures, breakdowns, breaches, unauthorized access, or
continued substandard performance in the past two (2) years that has caused or
reasonably could be expected to cause any substantial disruption or interruption
in or to the use of any such Systems by the Business, the Company or its
Subsidiaries. 

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 3.21     
   Certain Business Relationships with the Company and its
Subsidiaries. 

(a)       Except as set forth on Section 3.21
of the Disclosure Schedule, none of Orgenesis Parent or its Subsidiaries,
nor to the Knowledge of Orgenesis Parent, any officer, or director of Orgenesis
Parent, the Company or any of their Subsidiaries, or any Affiliates of any of
the foregoing (other than the Company and its Subsidiaries): 

(i)       owns, directly or indirectly, any stock,
equity or other ownership interest or investment in any Person that is engaged
in the Business or is a competitor, supplier, customer, lessor or lessee of the
Company or any of its Subsidiaries; provided, however, that the
foregoing representation shall be deemed not to be made as to the ownership of
not more than two percent (2%) of the capital stock of any such Person that has
securities registered pursuant to Section 13 or Section 15 of the Securities
Exchange Act; 

(ii)       has any claim against or owes any
amount to, or is owed any amount by, the Company or any of its Subsidiaries;

(iii)       has any interest in or owns any
assets, properties or rights used in the conduct of the Business; 

(iv)       is a party to any Contract to which the
Company or any of its Subsidiaries is a party or which otherwise benefits the
Business; or 

(v)       has received from or furnished to the
Company or any of its Subsidiaries any goods or services since the Most Recent
Fiscal Year End, or is involved in any business relationship (other than an
employment relationship in the Ordinary Course of Business) with the Company or
any of its Subsidiaries. 

(b)       Without derogating from Section
4.8, the Company and its Subsidiaries do not have any liability, and there
is no basis for any liability, nor is Orgenesis Parent aware of any claim,
arising out of or related to that certain manufacturing services agreement, by
and between Orgenesis Parent and MaSTherCell S.A. (the “Orgenesis
Manufacturing Agreement”), other than liabilities and obligations for
performance pursuant to the terms of the Orgenesis Manufacturing Agreement and
that did not result from any default or breach of the terms of the Orgenesis
Manufacturing Agreement. 

 3.22     
 Customers and Vendors. 

(a)       Section 3.22 of the Disclosure
Schedule sets forth a correct and complete list of the twenty-five (25)
largest suppliers and vendors (by dollar volume) of products or services to the
Company and its Subsidiaries with respect to the Business (the “Material
Vendors”), and all customers of the Company and its Subsidiaries with
respect to the Business (the “Material Customers”), each during the
calendar year 2016, the calendar year 2017, and the five (5) months ended May 31, 2018. Section 3.22 of
the Disclosure Schedule also sets forth, for each such Material Vendor and
Material Customer, the aggregate payments from and to such Person by the Company
and its Subsidiaries during such periods. There are no outstanding disputes with
any of such Material Vendors or Material Customers. 

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  (b)       Since January 1, 2017, none of the
  Material Vendors have indicated that it shall stop, or materially decrease the
  rate of, or materially change the pricing of, supplying materials, products or
  services to the Company or its Subsidiaries, or otherwise materially change the
  terms of its relationship with the Company or its Subsidiaries. Neither the
  Company, nor any of its Subsidiaries has any reason to believe that any Material
  Vendor will stop, or materially decrease the rate of, or materially change the
  pricing of, supplying products or services to the Company or its Subsidiaries or
  otherwise materially change the terms of its relationship with the Company or
  its Subsidiaries after, or as a result of, the consummation of any Transactions.
  Neither the Company, nor any of its Subsidiaries know of any fact, condition or
  event which would adversely affect the relationship of the Company or its
Subsidiaries with any such Material Vendor. 

(c)       Since January 1, 2017, none of the
Material Customers have indicated that it shall stop, or materially decrease the
rate of, or materially change the pricing of, buying products or services from
the Company or its Subsidiaries or otherwise materially change the terms of its
relationship with the Company or its Subsidiaries. Neither the Company, nor any
of its Subsidiaries, has any reason to believe that any Material Customer will
stop, or materially decrease the rate of, of materially change the pricing of,
buying products or services from the Company or its Subsidiaries or otherwise
materially change the terms of its relationship with the Company or its
Subsidiaries after, or as a result of, the consummation of any Transactions.
Neither the Company, nor any of its Subsidiaries, know of any fact, condition or
event which would adversely affect the relationship of the Company or its
Subsidiaries with any such Material Customer. 

3.23       Product Warranty. Section
3.23 of the Disclosure Schedule sets forth an accurate, correct and complete
list and summary description of all claims arising from any product or service,
alleged to have been manufactured, sold, provided, distributed, leased, or
delivered by the Business, the Company and its Subsidiaries not in conformity
with all applicable contractual commitments and all express and implied
warranties during the prior three (3) years.

 3.24     
 Product Liability. Section 3.24 of the Disclosure Schedule
sets forth an accurate, correct and complete list and summary description of all
claims arising from or alleged to arise from any injury to person or property as
a result of the ownership, possession or use of any product manufactured,
processed, sold, provided, distributed or delivered by the Business, the
Company, its Subsidiaries or their predecessors during the prior three (3)
years. Neither the Company nor any of its Subsidiaries has any liability (and to
the Company’s Knowledge there is no reasonable basis for any present or future
action, suit, proceeding, hearing, investigation, charge, complaint, claim, or
demand against the Company or any of its Subsidiaries giving rise to any
liability) arising out of any injury to individuals or property as a result of
the ownership, possession, or use of any product manufactured, processed, sold,
provided, distributed or delivered by the Business, the Company, its
Subsidiaries or any of their predecessors. 

-29- 

 3.25     
 Information Privacy and Data Security.

(a)       The Business’s, the Company’s and its
Subsidiaries’ practices concerning the creation, receipt, maintenance,
transmission, use, disclosure, processing, protection, collection, analysis,
retention, storage, privacy, security, breach, transfer, destruction, and
disposal of Personal Information comply with, and have not violated, any (i)
Contract, (ii) Privacy Laws, or (iii) written policy or privacy statement of the
Company or its Subsidiaries. 

(b)       The Company and its Subsidiaries have
implemented reasonable administrative, physical, contractual and technical
safeguards sufficient to protect the Personal Information processed or
maintained by the Company and its Subsidiaries, and such safeguards are
sufficient for the size and scope of the Company and its Subsidiaries and the
risks posed to the Personal Information processed by the Business, the Company
and its Subsidiaries. The Company and its Subsidiaries maintain reasonable and
sufficient written policies and procedures concerning the (i) protection of
Personal Information, (ii) the protection of the systems, technology and
networks that process such Personal Information, and (iii) prevention,
detection, containment, and correction of security violations respecting its
information systems. 

(c)       Section 3.25(c) of the Disclosure
Schedule sets forth all incidents impacting the confidentiality, security,
integrity, or availability of the Business’s, the Company’s and its
Subsidiaries’ information systems and/or the Personal Information processed by
the Business, the Company and its Subsidiaries. 

ARTICLE 4 

POST-CLOSING COVENANTS 

 The Parties agree as follows with
respect to the period following the Closing. 

4.1       General. In case at any time
after the Closing any further action is reasonably necessary to carry out the
purposes of this Agreement, each of the Parties will take such further action
(including the execution and delivery of such further instruments and documents)
as any other Party reasonably may request, all at the sole cost and expense of
the requesting Party (unless the requesting Party is entitled to indemnification
therefor under Article 6). In furtherance of the foregoing, the Parties
agree that each of the Parties will take such further action (including the
execution and delivery of such further instruments and documents) as may be
reasonably requested by the Investor in order to duly transfer any assets,
properties or rights that are owned by Orgenesis Parent or any of its
Subsidiaries that were not transferred to the Company or its Subsidiaries in
connection with the Reorganization but that either (a) are necessary to operate
the Business or (b) were used in the operation of the Business at any time
during the twelve (12) month period prior to the Closing Date. 

4.2       Litigation Support. In the event
and for so long as any of Investor or the Company or its Subsidiaries is
actively contesting or defending against any Proceeding in connection with any
fact, situation, circumstance, status, condition, activity, practice, plan,
occurrence, event, incident, action, failure to act, or transaction on or prior
to the Closing Date involving the Company or any of its Subsidiaries, the
Company will cooperate with it and its counsel in the contest or defense and provide such testimony
and access to the Company’s books and records as shall be necessary in
connection with the contest or defense (and Orgenesis Parent shall use
commercially reasonable efforts to promptly review, respond to and, to the
extent Orgenesis Parent is not prohibited by Law or by contractual obligation,
comply with any reasonable requests for information and/or documents in
connection therewith), all at the sole cost and expense of the Company (unless
Investor is entitled to indemnification therefor under Article 6). 

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  4.3       Transition. Orgenesis Parent
  shall not intentionally take any action that is designed or intended to have the
  effect of discouraging any lessor, licensor, Customer, supplier, or other
  business associate of the Company and its Subsidiaries from maintaining the same
  business relationships with the Company or its Subsidiaries after the Closing as
it maintained with the Company and its Subsidiaries prior to the Closing. 

 4.4     
 Confidentiality. Orgenesis Parent agrees not to, directly or
indirectly, disclose to any other Person or use any Confidential Information. If
Orgenesis Parent is requested or required pursuant to written or oral question
or request for information or documents in any Proceeding, interrogatory,
subpoena, civil investigation demand or similar process to disclose any
Confidential Information, then Orgenesis Parent will notify Investor and the
Company promptly of the request or requirement so that Investor or the Company
may seek an appropriate protective order or waive compliance with the provisions
of this Section 4.4. If, in the absence of a protective order or the
receipt of a waiver hereunder, Orgenesis Parent is, on the advice of counsel,
compelled to disclose any Confidential Information to any tribunal or else stand
liable for contempt, then Orgenesis Parent may disclose the Confidential
Information to the tribunal; provided, however, that Orgenesis
Parent shall use reasonable commercial efforts to obtain, at the request of
Investor, an order or other assurance that confidential treatment will be
accorded to such portion of the Confidential Information required to be
disclosed as Investor shall designate. The foregoing provisions shall not apply
to any Confidential Information that (i) is generally available to the public
immediately prior to the time of disclosure unless such Confidential Information
is so available due to the actions of Orgenesis Parent or (ii) that does not
relate to the Company or its Subsidiaries, the Business or a Customer. 

4.5       Covenant Not to Compete. Nothing
in this Agreement shall derogate from, or limit, Orgenesis Parent from
conducting any business as it presently conducts or may conduct in the future
(including, without limitation, business related to the manufacturing,
researching, marketing, developing, selling and commercialization (either alone
or jointly with Third Parties) products that are not directly related to the
Business); provided, however, that during the Restricted Period,
Orgenesis Parent will not directly (whether on its, his or her own account, or
as an owner, operator, manager, consultant, officer, director, employee,
investor, independent contractor, agent, representative or otherwise), anywhere
in the Applicable Area, conduct the Business. Any activities or transactions
conducted by Orgenesis Parent with any Third Party which does not directly
relate to Orgenesis Parent as a CDMO business shall not be deemed a violation of
this Section 4.5. 

 4.6     
 Covenant Not to Solicit. During the Restricted Period, Orgenesis
Parent will not, and will cause each of its Affiliates not to, in any manner
(whether on its, his or her own account, or as an owner, operator, manager,
consultant, officer, director, employee, investor, independent contractor, agent, representative or otherwise), (a) call upon,
solicit or provide services to any Customer with the intent of selling or
attempting to sell any products or services that are the same as, or competitive
with, those offered by the Business, (b) hire or engage, or recruit, solicit or
otherwise attempt to employ or engage, or enter into any business relationship
with, any Person currently or formerly employed by, or providing consulting
services to, the Company or any of its Subsidiaries, or induce or attempt to
induce any Person to leave such employment or consulting arrangement, (c) in any
way materially interfere with the relationship between the Company or any of its
Subsidiaries and any employee, consultant, Customer, sales representative,
broker, supplier, licensee or other business relation (or any prospective
employee, consultant, customer, sales representative, broker, supplier, licensee
or other business relation) of the Company or any of its Subsidiaries
(including, without limitation, by making any negative or disparaging statements
or communications regarding Investor, the Company, any of its Subsidiaries or
any of their operations, officers, directors, managers, employees, Affiliates or
investors), or (d) recommend, or provide any reference to a third party for, any
employee or contractor of the Company or any of its Subsidiaries;
provided, however that (i) Orgenesis Parent may recruit, hire or engage
former employees and consultants to the Company and its Subsidiaries after such
former employees or consultants have ceased to be employed or otherwise engaged
by the Company or any of its Subsidiaries for a period of at least twelve (12)
months, (ii) Orgenesis Parent may obtain the services of certain employees of
the Company and its Subsidiaries pursuant to a services agreement between
Orgenesis Parent and the Company and with the prior written approval of a
Supermajority of the Board (as defined in the Stockholders’ Agreement), (iii)
Orgenesis Parent may recruit, hire or engage Noam Bercovich, Moshe Cohen, Moran
Hod, Dana Fuchs-Telem and Moshe Lindner, and (iv) nothing in this Section
4.6 will prohibit Orgenesis Parent from engaging in any activity that does
not violate Section 4.5. 

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  4.7       Enforcement. If the final
  judgment of a court of competent jurisdiction declares that any term or
  provision of Sections 4.4, 4.5 or 4.6 is invalid or
  unenforceable, then the Parties agree that the court making the determination of
  invalidity or unenforceability shall have the power to reduce the scope,
  duration or area of the term or provision, to delete specific words or phrases,
  or to replace any invalid or unenforceable term or provision with a term or
  provision that is valid and enforceable and that comes closer to expressing the
  intention of the invalid or unenforceable term or provision, and this Agreement
  shall be enforceable as so modified after the expiration of the time within
  which the judgment may be appealed. In the event of litigation involving
  Sections 4.4, 4.5 or 4.6, the non-prevailing party shall
  reimburse the prevailing party for all reasonable costs and expenses actually
  incurred by the prevailing party, including reasonable attorneys’ fees and
  expenses, incurred in connection with any such litigation, including any appeal
  therefrom. The existence of any claim or cause of action by
  Orgenesis Parent against Investor, the Company or any of their respective
  Affiliates, whether predicated on this Agreement or otherwise, will not
  constitute a defense to the enforcement by Investor of the provisions of
  Sections 4.4, 4.5 or 4.6, which Sections will be
  enforceable notwithstanding the existence of any breach by Investor or the
  Company. Notwithstanding the foregoing, (a) Orgenesis Parent will not be
  prohibited from pursuing such claims or causes of action against Investor or the
  Company and (b) if Orgenesis Parent obtains a binding judgment against Investor
  which provides that Investor owes a Future Payment in accordance with the terms
  of this Agreement and Investor has not paid such Future Payment to the Company
within thirty (30) days of the issuance of such judgment, then such non-payment of
such Future Payment may constitute a defense to the enforcement by Investor of
the provisions of Sections 4.4, 4.5 or 4.6. 

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 4.8     
   Release. Orgenesis Parent, for itself and each of its Affiliates,
  and its and their heirs, personal representatives, successors and assigns
  (collectively, the “Releasors”), hereby (a) forever fully and irrevocably
  releases and discharges Investor, the Company, each of its respective
  Subsidiaries, and each of their respective predecessors, successors, wholly
  owned subsidiaries and present equityholders, members, managers, directors,
  officers, employees, contractors, and agents (collectively, the “Released
    Parties”) from any and all actions, suits, claims, demands, debts,
  agreements, obligations, promises, judgments, or liabilities of any kind
  whatsoever in law or equity and causes of action of every kind and nature, or
  otherwise (including, claims for damages, costs, expenses, and attorneys’,
  brokers’ and accountants fees and expenses) related to events, facts, conditions
  or circumstances existing or arising prior to the Closing Date, which the
  Releasors can, shall or may have against the Released Parties, whether known or
  unknown, suspected or unsuspected (collectively, the “Released Claims”),
  and (b) irrevocably agrees to refrain from directly or indirectly asserting any
  claim or demand or commencing (or causing to be commenced) any Proceeding
  against any Released Party based upon any Released Claim. Notwithstanding the
  preceding sentence of this Section 4.8, “Released Claims” does not
  include, and the provisions of this Section 4.8 shall not release or
  otherwise diminish, (x) the obligations of any Party set forth in or arising
  under any provisions of this Agreement or the Ancillary Agreements or breach
  thereof (including, without limitation, with respect to any Intellectual
  Property Rights), or (y) the rights and obligations of Orgenesis Parent and any
  of its Affiliates on the one hand, and the Company and any of its Subsidiaries
  on the other hand, set forth in or arising under any provisions of the Orgenesis
  Manufacturing Agreement, or (z) any claims against the Company, or any of its
  Subsidiaries that relate to Orgenesis Parent as a customer of the Business, or
  (aa) any claims that Orgenesis Parent may have against the Company or its
  Subsidiaries based upon fraud or willful or intentional misconduct;
  provided, however, that Orgenesis Parent shall indemnify the Investor for
  all Adverse Consequences that may be suffered by the Investor in connection with
  or as a result of any such claim. Nothing herein shall derogate from, or be
  deemed to limit, Orgenesis Parent’s ability to bring an action against the
  Company and/or the Company’s Subsidiaries in the event such action is required
  under Law as a necessary step for Orgenesis Parent to bring suit against any
  executive, director, stockholder (but not the Investor) or officer of the
  Company or its Subsidiaries, provided, however, that Orgenesis Parent
  shall indemnify Investor, the Company and its Subsidiaries for all Adverse
  Consequences that may be suffered by Investor, the Company or its Subsidiaries
as a result of such action. 

4.9       Israel Sub and South Korea Sub.
Orgenesis Parent will, at its sole expense, take all actions necessary so that
within twelve (12) months following the Closing, Orgenesis Parent has (a)
acquired all equity and other ownership interests of both the Israel Sub and the
South Korea Sub and (b) for no additional consideration contributed all right,
title and interest in and to all such equity and other ownership interests, free
and clear of all Liens, to the Company.      

4.10       Stockholders’ Agreement Terms.
Orgenesis Parent shall use its best efforts to ensure that the Stockholders’
Agreement Terms are Properly Approved as soon as possible after Closing. If
Orgenesis Parent obtains Proper Approval of the Stockholders’ Agreement Terms,
then in the event that the applicable laws of the State of Nevada require
Orgenesis Parent to obtain an additional or secondary approval of the Stockholders’
Agreement Terms from its shareholders, Investor shall have no recourse or remedy
of any kind against Orgenesis Parent, the Company or any Subsidiary and shall
not be entitled to any indemnification under this Agreement for any damages and
or liability that Investor may incur as a result of such additional or secondary
approval. The Investor hereby waives, and agrees not to bring any claims
against, Orgenesis Parent, the Company or any of their Subsidiaries in the event
that applicable laws require Orgenesis Parent to secure any such additional or
second approval of the Stockholders’ Agreement Terms from its shareholders and
that Orgenesis Parent, the Company and any of their Subsidiaries shall not have
any liability of any kind, including breach of this Agreement or any Ancillary
Agreement for any Adverse Consequences resulting from any such additional or
second approval. The Investor hereby agrees and confirms that Orgenesis Parent
shall have no obligation of any kind toward the Investor with respect to such
secondary approval (including, without limitation, obtaining any proxies) beyond
approaching its shareholders for such approval. 

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  4.11       QMS License Agreement. As part
  of the Reorganization, Orgenesis Parent has assigned to the Company that certain
  License Agreement, by and between Orgenesis Parent and MaSTherCell S.A., dated
  December 30, 2016 (the “QMS License Agreement”), but Orgenesis Parent
  shall remain solely responsible for paying all costs and making all payments
  (including any in-kind contributions, which may be determined by Orgenesis
  Parent in its reasonable discretion so long as any such contributions comply
  with the terms of the QMS License Agreement) under or related to the QMS License
  Agreement as if Orgenesis Parent was still a party to the QMS License Agreement.
  The Board of Directors of the Company will provide reasonable assistance and
  support to Orgenesis Parent in connection with Orgenesis Parent’s structuring of
any in-kind contributions to be made by Orgenesis Parent. 

ARTICLE 5 

CLOSING DELIVERIES 

 5.1     
 Closing Deliveries of Orgenesis Parent. At or prior to the Closing,
the Company or Orgenesis Parent shall deliver to Investor: 

(a)       duly executed certificates representing
all of the Company Preferred Stock against payment of the Estimated Cash
Payment; 

(b)       all Consents and Permits of Governmental
Bodies and other Persons necessary for the consummation of the Transactions,
including those Consents and Permits set forth on Schedule 5.1(b); 

(c)       a certificate of the Secretary of the
Company, on behalf of the Company and each of its Subsidiaries, dated as of the
Closing Date, attaching and certifying (i) the Organizational Documents of the
Company and each of its Subsidiaries, (ii) the resolutions of the Company
authorizing and approving the entry into and consummation of the Transactions,
and (iii) the incumbency and signatures of the Persons signing this Agreement
and the Ancillary Agreements to which the Company or any of its Subsidiaries is
a party; 

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(d)       a certificate of the Secretary of
Orgenesis Parent, dated as of the Closing Date, attaching and certifying (i) the
Organizational Documents of Orgenesis Parent, (ii) the resolutions of Orgenesis
Parent and each of its Subsidiaries (as necessary) authorizing and approving the
entry into and consummation of the Transactions, and (iii) the incumbency and
signatures of the Persons signing this Agreement and the Ancillary Agreements to
which Orgenesis Parent or any of its Subsidiaries is a party; 

(e)       good standing certificates for the
Company and to the extent applicable, each of its Subsidiaries, from the
jurisdiction of each such Person’s organization and each jurisdiction in which
the Company or any of its Subsidiaries is qualified to do business; 

(f)       counterpart signature pages to the
Employment Agreement signed by the Company and Darren Head; 

(g)       signed resignation letters from each
member of the board of directors or board of managers or similar governing body
and each officer of the Company and its Subsidiaries set forth on Schedule
5.1(g); 

(h)       all documentation necessary to obtain
releases of all Liens (other than the Permitted Liens) related to the Company
and its Subsidiaries, including appropriate UCC termination statements; 

(i)       payoff and release letters from the
holders of the Debt set forth on Schedule 5.1(i) that (i) reflect the
amounts required in order to pay in full such Debt and (ii) provide that, upon
payment in full of the amounts indicated, all Liens with respect to the assets
of the Company or any of its Subsidiaries shall be terminated and of no further
force and effect, together with UCC-3 termination statements with respect to the
financing statements filed against the assets or equity interests of the Company
or any of its Subsidiaries by the holders of such Liens; 

(j)       a counterpart signature page to the
Stockholders’ Agreement signed by Orgenesis Parent; 

(k)       counterpart signature pages to the
Advisory Services Agreements signed by the Company; 

(l)       a copy of the Amended and Restated
Certificate of Incorporation of the Company filed with the Secretary of State of
the State of Delaware; 

(m)       all documentation necessary to terminate
each related party Contract set forth on Schedule 5.1(m); and 

(n)       all other instruments and documents
required by this Agreement to be delivered by the Company, its Subsidiaries, or
Orgenesis Parent to Investor, and such other instruments and documents which
Investor or its counsel may reasonably request to effectuate the Transactions.

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 All such agreements, documents and
other items shall be in form and substance satisfactory to Investor. 

5.2       Closing Deliveries of Investor.
At or prior to the Closing, Investor shall deliver to Orgenesis Parent: 

(a)       a certificate from the Secretary of
Investor, dated as of the Closing Date, attaching and certifying (i) the
Organizational Documents of Investor, (ii) the resolutions of Investor
authorizing and approving the entry into and consummation of the Transactions,
and (iii) the incumbency and signatures of the Persons signing this Agreement
and the Ancillary Agreements to which Investor is a party; 

(b)       a counterpart signature page to the
Stockholders’ Agreement signed by Investor; 

(c)       counterpart signature pages to the
Advisory Services Agreements signed by Great Point Partners, LLC and GPP
Securities, LLC, as applicable; and 

(d)       all other instruments and documents
required by this Agreement to be delivered by Investor to the Company or
Orgenesis Parent, and such other instruments and documents which Orgenesis
Parent or its counsel may reasonably request to effectuate the Transactions.

 All such agreements, documents and
other items shall be in form and substance satisfactory to Orgenesis Parent.

ARTICLE 6 

REMEDIES FOR BREACHES OF THIS AGREEMENT 

6.1       Indemnification by Orgenesis
Parent.

(a)       Subject to the terms and conditions of
this Article 6, Orgenesis Parent will indemnify, defend and hold harmless
Investor and the Company (the “Investor Indemnitees”) from and against
the entirety of any Adverse Consequences that any Investor Indemnitee may suffer
or incur (including any Adverse Consequences they may suffer or incur after the
end of any applicable survival period, provided that an indemnification claim
with respect to such Adverse Consequence is made pursuant to this Article
6 prior to the end of any applicable survival period) resulting from,
arising out of, relating to, or caused by (i) any breach of any representation
or warranty made by Orgenesis Parent, the Company or any of its Subsidiaries in
Section 2.1 or Article 3 or in any Ancillary Agreement or (ii) any
breach of any covenant or agreement of Orgenesis Parent in this Agreement or in
any Ancillary Agreement. The Investor shall not be entitled to indemnification
for breaches of a representation and warranty pursuant to this Article 6
with respect matters or items that are properly disclosed as exceptions to such
representation and warranty in the applicable section(s) of the Disclosure
Schedule and in accordance with Section 9.15. 

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(b)       Orgenesis Parent agrees that it shall
pay and otherwise fully satisfy and discharge all Designated Pre-Closing
Liabilities, and shall indemnify, defend and hold all Investor Indemnitees
harmless from and against, and shall reimburse all Investor Indemnitees for, the
entirety of any Adverse Consequences that any Investor Indemnitee may suffer or
incur in connection with any Designated Pre-Closing Liabilities. 

6.2       Indemnification by Investor.
Subject to the terms and conditions of this Article 6, Investor will
indemnify, defend and hold harmless Orgenesis Parent and its successors and
assigns (the “Orgenesis Indemnitees”) from and against the entirety of
any Adverse Consequences they may suffer or incur (including any Adverse
Consequences they may suffer or incur after the end of any applicable survival
period, provided that an indemnification claim with respect to such Adverse
Consequence is made pursuant to this Article 6 prior to the end of any
applicable survival period) resulting from, arising out of, relating to, or
caused by (a) any breach of any representation or warranty made by Investor in
Section 2.2 or in any Ancillary Agreement or (b) any breach of any
material covenant or agreement of Investor in this Agreement. 

6.3       Survival and Time Limitations.
All representations, warranties, covenants and agreements of the Parties in this
Agreement or any other certificate or document delivered pursuant to this
Agreement will survive the Closing indefinitely subject to the following
sentence. Notwithstanding the foregoing, Orgenesis Parent will have no liability
with respect to any claim under Section 6.1(a)(i) unless Investor
notifies Orgenesis Parent of such a claim on or before the date that is eighteen
(18) months after the Closing Date (the “General Survival Date”);
provided, however, that (a) any claim relating to any
representation made in Section 3.9 (Legal Compliance) may be made at any
time until the date that is three (3) years after the Closing Date, (b) any
claim relating to any representation made in Sections 2.1(c) (Brokers’ Fees),
3.5 (Brokers’ Fees), 3.6 (Assets), 3.10 (Tax Matters),
3.12 (Intellectual Property), and 3.18 (Debt) may be made at any
time until the date that is seven and a half (7.5) years after the Closing Date
and, (c) any claim relating to any representation made in Sections 2.1(a)
(Authorization of Transaction), 2.1(d) (Company Securities),
2.1(f) (Reorganization), 2.1(g) (Subsidiaries), 3.1
(Organization, Qualification, and Power), 3.2 (Authorization of
Transaction), and 3.3 (Capitalization and Subsidiaries) may be made at
any time without limitation (collectively, the representations and warranties
described in clauses (a), (b) and (c) are referred to as the “Excluded
Representations”) and (d) any claim related to intentional or fraudulent
breaches of the representations and warranties may be made at any time without
limitation. Investor will have no liability with respect to any claim for any
breach or inaccuracy of any representation or warranty in this Agreement unless
Orgenesis Parent notifies Investor of such a claim on or before the General
Survival Date. Notwithstanding anything to the contrary contained herein, if
Investor or Orgenesis Parent, as applicable, provides notice of a claim in
accordance with the terms of this Agreement within the applicable time period
set forth above, then liability for such claim will continue until such claim is
fully resolved. 

 6.4      
Limitations on Indemnification by Orgenesis Parent. 

(a)       With respect to the matters described in
Sections 6.1(a)(i), Orgenesis Parent will have no liability until
Investor Indemnitees have suffered aggregate Adverse Consequences by reason of
all such breaches in excess of $350,000 (the “Threshold”), after which
point Orgenesis Parent will be obligated to indemnify Investor Indemnitees from
and against all Adverse Consequences from dollar one;
provided, that the foregoing limitations shall not apply in respect of
any Adverse Consequences relating to (i) breaches of the Excluded
Representations or (ii) any intentional or fraudulent breach of a representation
or warranty. 

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  (b)       With respect to the matters described in
  Sections 6.1(a)(i), the aggregate maximum liability of Orgenesis Parent shall be
  $2,500,000 (the “Cap”); provided, that the foregoing limitations
  shall not apply in respect of any Adverse Consequences relating to (i) breaches
  of the Excluded Representations or (ii) any intentional or fraudulent breach of
representation or warranty. 

(c)       With respect to the matters described in
Sections 6.1(a)(i) relating to breach of any Excluded Representation, the
aggregate maximum liability of Orgenesis Parent shall be the Purchase Price paid
to the Company pursuant to this Agreement. 

(d)       Investor agrees that it shall not be
entitled to indemnification or have any recourse against Orgenesis Parent or the
Company, solely for the Company’s failure to meet the conditions required for
payment of the First Future Payment and/or Second Future Payment as set forth in
Sections 1.6(a) and 1.6(b) and that Investor’s sole remedy and
recourse for such failure is that the First Future Payment and/or the Second
Future Payment, as applicable, shall not be earned and shall not be payable.

6.5       Limitations on Indemnification by
Investor. 

(a)       With respect to the matters described in
Section 6.2(a), Investor will have no liability until Orgenesis
Indemnitees have suffered Adverse Consequences by reason of all such breaches in
excess of the Threshold, after which point Investor will be obligated to
indemnify Orgenesis Indemnitees from and against all Adverse Consequences from
dollar one; provided, that the foregoing limitations shall not apply in
respect of any Adverse Consequences relating to (a) breaches of any
representation made in Sections 2.2(a) (Organization of Investor),
2.2(b) (Authorization of Transaction), and 2.2(d) (Brokers’
Fees) or (b) any intentional or fraudulent breach of a representation or
warranty. 

(b)       With respect to the matters described in
Section 6.2(a), the aggregate maximum liability of Investor shall be the
Cap; provided, that the foregoing limitation shall not apply in respect
of any Adverse Consequences relating to (i) breaches of any representation made
in Sections 2.2(a) (Organization of Investor), 2.2(b)
(Authorization of Transaction), and 2.2(d) (Brokers’ Fees) or (ii) any
intentional or fraudulent breach of a representation or warranty. 

6.6       Third-Party Claims. 

(a)       If a third party initiates a claim,
demand, dispute, lawsuit or arbitration (a “Third-Party Claim”) against
any Person (the “Indemnified Party”) with respect to any matter that the
Indemnified Party might make a claim for indemnification against any Party (the
“Indemnifying Party”) under this Article 6, then the Indemnified
Party must promptly notify the Indemnifying Party in writing of the existence of
such Third-Party Claim and must deliver copies of any documents served on the
Indemnified Party with respect to the Third-Party Claim; provided,
however, that any failure on the part of an Indemnified Party to so
notify an Indemnifying Party shall not limit any of the obligations of
the Indemnifying Party under this Article 6 (except to the extent such
failure materially prejudices the defense of such proceeding). 

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  (b)       Upon receipt of the notice described in
  Section 6.6(a), the Indemnifying Party will have the right to defend the
  Indemnified Party against the Third-Party Claim with counsel reasonably
  satisfactory to the Indemnified Party, provided, that (i) the Indemnifying Party
  notifies the Indemnified Party in writing within fifteen (15) days after the
  Indemnified Party has given notice of the Third-Party Claim that the
  Indemnifying Party will indemnify the Indemnified Party from and against the
  entirety of any Adverse Consequences the Indemnified Party may suffer resulting
  from, arising out of, relating to, or caused by the Third-Party Claim, (ii) the
  Indemnifying Party provides the Indemnified Party with evidence reasonably
  acceptable to the Indemnified Party that the Indemnifying Party will have the
  financial resources to defend against the Third-Party Claim and fulfill its
  indemnification obligations hereunder, (iii) the Third-Party Claim involves only
  money damages and does not seek an injunction or other equitable relief, (iv)
  the Third-Party Claim does not involve any customer of the Company or any of its
  Subsidiaries, (v) settlement of, or an adverse judgment with respect to, the
  Third-Party Claim is not, in the good faith judgment of the Indemnified Party,
  likely to establish a precedential custom or practice adverse to the continuing
  business interests or the reputation of the Indemnified Party, and (vi) the
  Indemnifying Party conducts the defense of the Third-Party Claim actively and
  diligently. The Indemnifying Party will keep the Indemnified Party apprised of
  all material developments, including settlement offers, with respect to the
  Third-Party Claim and permit the Indemnified Party to participate in the defense
  of the Third-Party Claim. So long as the Indemnifying Party is conducting the
  defense of the Third-Party Claim in accordance with this Section 6.6(b),
  the Indemnifying Party will not be responsible for any attorneys’ fees or other
  expenses incurred by the Indemnified Party regarding the defense of the
Third-Party Claim. 

(c)       In the event that any of the conditions
under Section 6.6(b) is or becomes unsatisfied, however, (i) the Indemnified
Party may defend against, and consent to the entry of any judgment on, or enter
into any settlement with respect to, the Third-Party Claim in any manner it may
reasonably deem appropriate, (ii) the Indemnifying Parties will reimburse the
Indemnified Party promptly and periodically for the costs of defending against
the Third-Party Claim (including reasonable attorneys’ fees and expenses), and
(iii) the Indemnifying Parties will remain responsible for any Adverse
Consequences the Indemnified Party may suffer resulting from, arising out of,
relating to, or caused by the Third-Party Claim to the fullest extent provided
in this Article 6. 

(d)       Except in circumstances described in
Section 6.6(c), neither the Indemnified Party nor the Indemnifying Party
will consent to the entry of any judgment or enter into any settlement with
respect to the Third-Party Claim without the prior written consent of the other
party, which consent will not be unreasonably withheld or delayed. 

6.7       Other Indemnification Matters.
All indemnification payments under this Article 6 will be deemed
adjustments to the Cash Payment. For purposes of determining the amount of
Adverse Consequences resulting from any misrepresentation or breach of a
representation or warranty (but for the avoidance of doubt, not for purposes of
determining whether there has been any misrepresentation or breach of a
representation or warranty), all qualifications or exceptions in any
representation or warranty relating to or referring to the terms “material”,
“materiality”, “in all material respects”, “Material Adverse Effect” or any
similar term or phrase shall be disregarded, it being the understanding of the
Parties that for such purposes, the representations and warranties of the
Parties contained in this Agreement shall be read as if such terms and phrases
were not included in them. Orgenesis Parent agrees that Orgenesis Parent and its
Affiliates have no claims or rights to contribution or indemnity from the
Company or any of its Subsidiaries with respect to any amounts paid by Orgenesis
Parent pursuant to this Article 6. The right to indemnification, payment
of any losses or other remedy based on such representations and warranties (as
modified by the applicable sections of the Disclosure Schedule), covenants, and
obligations will not be affected by any investigation conducted with respect to,
or any knowledge acquired (or capable of being acquired) at any time, whether
before or after the execution and delivery of this Agreement, with respect to
the accuracy or inaccuracy of or compliance with, any such representation or
warranty (as modified by the applicable sections of the Disclosure Schedule),
covenant, or obligation. Orgenesis Parent hereby acknowledges that, regardless
of any investigation made (or not made) by or on behalf of Investor, and
regardless of the results of any such investigation, Investor has entered into
this transaction in express reliance upon such representations and warranties
(as modified by the applicable sections of the Disclosure Schedule) covenants
and obligations.

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  6.8       Indemnity Payments. Orgenesis
  Parent shall have the option to make prompt payment to an Investor Indemnitee in
  the entire amount of all Adverse Consequences claimed by such Investor
  Indemnitee (each such amount, an “Indemnity Claim”) pursuant to an
  indemnification claim made pursuant to this Agreement, either (a) in an amount
  of cash equal to the Indemnity Claim or (b) in an amount of shares of Company
  Preferred Stock issued by the Company equal to the quotient of (i) the Indemnity
  Claim divided by (ii) $31.22; provided, that if an Investor
  Indemnitee is the Company or any of its Subsidiaries, then the Indemnity Claim
shall be satisfied in cash by Orgenesis Parent. 

ARTICLE 7 

TAX MATTERS

 7.1     
 Tax Indemnification. In addition to the indemnification provisions
of Article 6, Orgenesis Parent shall be liable for, and shall indemnify
and hold Investor Indemnitees harmless from and against the entirety of any
Adverse Consequences that any Investor Indemnitee may suffer or incur resulting
from, arising out of, relating to, or caused by (a) all Taxes of Orgenesis
Parent, (b) all Taxes imposed on or incurred by the Company and its Subsidiaries
with respect to any Pre-Closing Tax Periods, (c) all Taxes imposed on or
incurred by Orgenesis Parent, the Company or any of their Subsidiaries with
respect to the Reorganization, (d) any withholding, payroll, social security,
unemployment or similar Taxes caused by or resulting from the sale or issuance
of the Company Preferred Stock, (e) all Taxes of any Person imposed on any of
the Company or any of its Subsidiaries as a transferee or successor, by contract
or otherwise, which Taxes relate to an event or transaction occurring before the
Closing, and (f) all Taxes of any member of an affiliated, consolidated,
combined, or unitary group of which the Company or its Subsidiaries (or any
predecessor) is or was a member on or prior to the Closing Date, including
pursuant to Treasury Regulation Section 1.1502 -6 or any analogous or similar
state, local, or foreign Law.

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7.2       Responsibility for Filing Tax Returns
for Periods through Closing Date. The Company shall prepare or cause to be
prepared and file or cause to be filed all Tax Returns for the Company and its
Subsidiaries that are filed after the Closing Date. The Company shall permit
Investor to review, comment and consent with respect to each such Tax Return
related to a Pre-Closing Tax Period prior to filing and shall make such
revisions as are reasonably requested by Investor. 

7.3       Straddle Periods. For purposes of
this Article, in the case of any Taxes that are imposed on a periodic basis and
are payable for a Tax period that includes (but does not end on) the Closing
Date, the portion of such Tax that relates to the Pre-Closing Tax Period will
(a) in the case of any Taxes other than Taxes based upon or related to income or
receipts, be deemed to equal the amount of such Tax for the entire Tax period
multiplied by a fraction the numerator of which is the number of days in the Tax
period ending on the Closing Date and the denominator of which is the number of
days in the entire Tax period, and (b) in the case of any Tax based upon or
related to payroll, income or receipts, be deemed to equal the amount that would
be payable if the relevant Tax period ended on the Closing Date.

7.4       Cooperation on Tax Matters.
Investor and Orgenesis Parent will cooperate, as and to the extent reasonably
requested by the other Party, in connection with the filing and preparation of
Tax Returns pursuant to this Article and any Proceeding related thereto. Such
cooperation will include the retention and (upon the other Party’s request) the
provision of records and information that are reasonably relevant to any such
Proceeding and making employees available on a mutually convenient basis to
provide additional information and explanation of any material provided
hereunder. Investor and Orgenesis Parent will retain all books and records with
respect to Tax matters pertinent to the Company and its Subsidiaries relating to
any Tax period beginning before the Closing Date until thirty (30) days after
the expiration of the statute or period of limitations of the respective Tax
periods.

7.5       Certain Taxes. All transfer
(including real estate transfer), documentary, sales, use, stamp, registration
and other such Taxes and fees (including any penalties and interest) incurred in
connection with this Agreement or the Transactions will be paid by Orgenesis
Parent when due, and Orgenesis Parent will, at its own expense, file all
necessary Tax Returns and other documentation with respect to all such transfer,
documentary, sales, use, stamp, registration and other Taxes and fees, and, if
required by applicable Law, the Company and Investor will join in the execution
of any such Tax Returns and other documentation. 

ARTICLE 8 

DEFINITIONS 

 “Accountants” has the meaning
set forth in Section 1.5. 

 “Adverse Consequences” means
all actions, suits, Proceedings, charges, complaints, claims, Orders, dues,
penalties, fines, costs, amounts paid in settlement, liabilities, obligations,
Taxes, Liens, losses, damages, deficiencies, costs of investigation, court
costs, and other expenses (including interest, penalties and reasonable
attorneys’ fees and expenses, whether in connection with Third-Party Claims or claims among the Parties
related to the enforcement of the provisions of this Agreement. 

-41- 

 “Advisory Services Agreements”
  means that certain Advisory Services Agreement dated as of the date hereof
  between the Company and Great Point Partners, LLC, and that certain Transaction
  Services Agreement dated as of the date hereof between the Company and GPP
  Securities, LLC, each in the applicable form attached hereto as Exhibit
A. 

 “Affiliate” means, with respect
to the Person to which it refers, (a) a Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with, such Person, (b) any officer, director, manager or
equityholder of such Person, (c) any parent, sibling, descendant or spouse of
such Person or of any of the Persons referred to in clauses (a) and (b), and (d)
any corporation, limited liability company, general or limited partnership,
trust, association or other business or investment entity that directly or
indirectly, through one or more intermediaries controls, is controlled by or is
under common control with any of the foregoing individuals. For purposes of this
definition, the term “control” of a Person shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies, whether through the ownership of voting securities, by Contract or
otherwise. 

 “Agreement” has the meaning set
forth in the preface. 

 “Amended and Restated Certificate
of Incorporation” means that certain Amended and Restated Certificate of
Incorporation of the Company filed with the State of Delaware as of the date
hereof, in the form of Exhibit B attached hereto. 

 “Ancillary Agreements” means
all of the agreements, documents and instruments executed and delivered pursuant
to this Agreement or the Reorganization. 

 “Applicable Area” means (a)
anywhere in the world, but if such area is determined by judicial action to be
too broad, then it means (b) Europe, North America and Asia, but if such area is
determined by judicial action to be too broad, then it means (c) any country in
which Orgenesis Parent, the Company or their Subsidiaries engaged in Business
prior to the Closing Date, but if such area is determined by judicial action to
be too broad, then it means (d) any state or locality within any country in
which Orgenesis Parent, the Company or their Subsidiaries engaged in Business
prior to the Closing Date.

 “Business” means the business
of providing manufacturing and development services to third parties related to
cell and gene therapy products, processes and solutions and providing related
manufacturing or development services, and the creation and development of
technology, Intellectual Property, tools and optimizations in connection with
such manufacturing and development services for third parties; provided,
however, that notwithstanding the foregoing, research, manufacturing,
development and all other activities related to the development, discovery,
manufacturing and commercialization of therapeutic products and the process,
methods or services thereof (including, without limitation, such therapeutic
products in which Orgenesis Parent has an economic interest or any relationship
with any Third Party in which Orgenesis has an economic interest or that are
created, developed, manufactured or sold by a joint venture, partnership or collaboration between Orgenesis
and a Third Party) with a Third Party shall not, for purposes of this Agreement,
be considered part of the “Business”. 

-42- 

 “Business Day” means any day
  that is not a Saturday, Sunday or any other day on which banks are required or
authorized by Law to be closed in New York, New York. 

 “Cap” has the meaning set forth
in Section 6.4(b). 

 “Cash” means the aggregate
amount of cash and cash equivalents of the Company and its Subsidiaries on a
consolidated basis as of the Closing Date as determined in accordance with GAAP,
excluding any Restricted Cash; provided, that if such aggregate amount of
cash and cash equivalents is a negative number, then it shall include the amount
of all fees, penalties or interest related to such negative amount of Cash. 

 “Cash Payment” means the amount
equal to (a) $11,800,000, minus (b) the Working Capital Deficit, if any,
minus (c) the Debt Amount, minus (d) the Cash Shortfall, if any.

 “Cash Payment Shortfall” has
the meaning set forth in Section 1.4(b). 

 “Cash Shortfall” means the
amount (if any) by which the amount of Cash is less than the Required Cash. 

 “Change of Control Transaction”
has the meaning set forth in Section 9.18.

 “Closing” has the
  meaning set forth in Section 1.9. 

 “Closing Date” has the meaning
set forth in Section 1.9. 

 “Closing Statement” has the
meaning set forth in Section 1.5. 

 “Code” means the Internal
Revenue Code of 1986, as amended, and any applicable rules and regulations
thereunder, and any successor to such statute, rules or regulations. 

 “Company” has the meaning set
forth in the preface. 

 “Company Common Stock” has the
meaning set forth in Section 3.3(a). 

 “Company Insurance Agreements”
has the meaning set forth in Section 3.14.

 “Company Preferred
  Stock” has the meaning set forth in Section 1.1. 

 “Company Securities” has the
meaning set forth in Section 3.3(a). 

 “Confidential Information”
means any information concerning the Company or the Business and the business
and affairs of the Company and its Subsidiaries not already generally available
to the public. 

-43- 

 “Consent” means, with respect
to any Person, any consent, approval, authorization, permission or waiver of, or
registration, declaration or other action or filing with or exemption by such
Person.

 “Contract” means any oral or
written contract, obligation, understanding, commitment, lease, license,
purchase order, bid or other agreement. 

 “Copyrights” has the meaning
set forth in Section 3.12(c). 

 “Customer” means any Person who
(a) purchased or licensed services of the Business from the Company or any of
its Subsidiaries (or their predecessors) during the three (3) years prior to the
Closing Date, (b) was called upon or solicited by the Company or any of its
Subsidiaries (or their predecessors) during such three (3) year period if such
solicitation relates to the Business, or (c) was a distributor, sales
representative, agent or broker for the Company or any of its Subsidiaries
during such three (3) year period with respect to the Business. Notwithstanding
the foregoing, the term “Customer” shall not include (i) any Third Party or (ii)
any Person purchasing or licensing products from or providing or receiving
services from/to the Company that do not relate to the Business. 

 “Debt” means any (a)
obligations relating to indebtedness for borrowed money, (b) obligations
evidenced by bonds, notes, debentures or similar instruments, (c) obligations in
respect of capitalized leases (calculated in accordance with GAAP), (d) the
principal or face amount of banker’s acceptances, surety bonds, performance
bonds or letters of credit (in each case whether or not drawn), (e) obligations
for the deferred purchase price of property or services, including, without
limitation, the maximum potential amount payable with respect to earnouts,
purchase price adjustments or other payments related to acquisitions (other than
current accounts payable to suppliers and similar accrued liabilities incurred
in the Ordinary Course of Business, paid in a manner consistent with industry
practice and reflected as a current liability in the final calculation of
Working Capital), (f) obligations under any existing interest rate, commodity or
other swap, hedge or financial derivative agreement entered into by the Company
or its Subsidiaries prior to Closing, (g) Off-Balance Sheet Financing of the
Company or its Subsidiaries in existence immediately prior to the Closing, (h)
other long term or non-ordinary course liabilities, (i) obligations relating to
any annual bonuses of employees of the Company and its Subsidiaries for the
calendar year 2017 or prior (including any payroll, employment or other Taxes
required to be paid in connection therewith), (j) obligations relating to any
Taxes imposed on or incurred by the Company and its Subsidiaries with respect to
all periods prior to the Closing Date to the extent not included in Working
Capital, (k) obligations related to any deferred compensation or other unfunded
or underfunded retirement or pension plan, fund, program, or other benefits of
the Company or its Subsidiaries (including any amounts the Company or any of its
Subsidiaries are required to pay in connection with defined contribution schemes
(including any minimum returns related thereto)), (l) all accounts payable of
the Company and its Subsidiaries that have been outstanding for more than 90
days, (m) indebtedness or obligations of the types referred to in the preceding
clauses (a) through (l) of any other Person secured by any Lien on any assets of
the Company or any of its Subsidiaries, even though the Company and its
Subsidiaries have not assumed or otherwise become liable for the payment
thereof, and (n) obligations in the nature of guarantees of obligations of the
type described in clauses (a) through (l) above of any other Person, in each
case together with all accrued interest thereon and any applicable prepayment,
redemption, breakage, make-whole or other premiums, fees or penalties. 

-44- 

 “Debt Amount” means all Debt of
  the Company and its Subsidiaries (on a consolidated basis) as of the Closing
  Date plus, without duplication, any amounts required to fully pay or
  otherwise satisfy all such Debt (including, but not limited to, any prepayment
  premium or penalty, breakage costs, accrued interest and costs and
expenses).

 “Designated Courts” has the
meaning set forth in Section 9.17. 

 “Designated Intellectual
Property” has the meaning set forth in Section 3.12(c). 

 “Designated Pre-Closing
Liabilities” means any liability or obligation of the Company and its
Subsidiaries other than: (a) liabilities for accounts payable, accrued expenses
and other current liabilities of the Company and its Subsidiaries as of the
Closing to the extent accrued for and reflected as a current liability in the
final calculation of Working Capital; (b) liabilities and obligations for
accrued wages, commissions, annual bonuses, accrued vacation and other amounts
payable to the Company’s and its Subsidiaries’ employees as of the Closing to
the extent specifically accrued for and reflected as a current liability in the
final calculation of Working Capital; and (c) liabilities under Contracts first
arising or becoming payable after the Closing Date, excluding, however, any such
liabilities resulting from or relating to any breach, default, violation or
occurrence of a contingency thereunder occurring on or prior to the Closing
Date. 

 “Disclosure Schedule” means the
disclosure schedule delivered by Orgenesis Parent and the Company to Investor on
the date hereof. 

 “EBITDA” means, for the
relevant time period, the amount equal to the sum of (a) Net Income attributable
to the Company during such period, plus (b) to the extent (but only to
the extent) deducted in determining such Net Income attributable to the Company,
without duplication, (i) all interest expense for such period, (ii) all charges
against Net Income for such period for federal, state and local income Taxes and
deferred tax charges, (iii) all depreciation expenses for such period, and (iv)
all amortization expenses for such period, and (iv) any extraordinary expenses
or losses (including losses on the sale of assets outside the Ordinary Course of
Business) to the extent realized during such period (subject to the Investor’s
approval of any such “add back” items (such approval not to be unreasonably
withheld)) minus (c) to the extent (but only to the extent) added in
determining such Net Income attributable to the Company (i) all interest income
during such period and (ii) any extraordinary income or gains (including gains
on the sales of assets outside of the Ordinary Course of Business), to the
extent realized during such period. Notwithstanding anything in this Agreement
to the contrary, (x) if the Company or any of its Subsidiaries engages in an
acquisition, joint venture or similar transaction prior to the end of the
applicable Measurement Period, then EBITDA will be calculated without giving
effect to such acquisition, joint venture or similar transaction (or the
business acquired thereby), (y) the initial costs and expenses of organizing and
establishing the operations of the Company’s Subsidiary based in the United
States shall not be included in any calculation of EBITDA, (z) all inter-company
revenues, costs and expenses among the Company and any of its Subsidiaries shall
be eliminated for purposes of calculating EBITDA, (aa) all non-cash expenses (such as for example stock based compensation)
shall not be included in any calculation of EBITDA, (bb) during the period
beginning on the Closing Date and ending two (2) years after the Closing Date
only, the cost of the annual compensation of Darren Head and any Chief Financial
Officer of the Company hired after the date hereof shall not be included in any
calculation of EBITDA, and (cc) all management fees paid by the Company pursuant
to Section 6 of that certain Advisory Services Agreement dated as of the date
hereof between the Company and Great Point Partners, LLC shall not be included
in any calculation of EBITDA. 

-45- 

 “Employee Benefit Plan” means
  any (a) pension plan or deferred compensation or retirement plan, fund, program,
  or arrangement, (b) equity-based plan, program, or arrangement (including any
  stock or equity interest option, stock or equity interest purchase, stock or
  equity interest ownership, stock or equity interest appreciation, phantom stock
  or equity interest, or restricted stock or equity interest plan) or (c) other
  retirement, severance, bonus, profit-sharing, incentive, health, dental,
  medical, surgical, hospital, indemnity, welfare, sickness, accident, disability,
  death, apprenticeship, training, day care, scholarship, tuition reimbursement,
  education, adoption assistance, prepaid legal services, termination,
  unemployment, vacation or other paid time off, change in control, or other
  similar plan, fund, program, or arrangement, whether written or unwritten, that
  is sponsored, maintained, or contributed to, or required to be maintained or
  contributed to, by the Company or any of its Subsidiaries or any other Person
  for the benefit of any present or former officers, employees, agents, directors,
  consultants, or independent contractors of the Company or any of its
Subsidiaries. 

 “Employment Agreement” means
that certain Employment Agreement dated as of the date hereof between the
Company and Darren Head, in the form of Exhibit C attached hereto.

 “Environmental, Health, and Safety
Requirements” means all Laws and Orders concerning public health and safety,
worker and occupational health and safety, natural resources and pollution or
protection of the environment, including all those relating to the presence,
use, production, generation, handling, transportation, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, release,
threatened release, control, or cleanup of any Hazardous Substances, materials,
or wastes, chemical substances, or mixtures, pesticides, pollutants,
contaminants, toxic chemicals, petroleum products or byproducts, fuel oil
products and byproducts, mold, asbestos, polychlorinated biphenyls, noise, or
radiation.

 “Estimated Cash Payment” has
the meaning set forth in Section 1.3.

 “Excluded Representations”
  has the meaning set forth in Section 6.3.

 “Final Cash Payment” has
  the meaning set forth in Section 1.5. 

 “Financial Statements” has the
meaning set forth in Section 3.7(a).

 “First Future Payment” has
  the meaning set forth in Section 1.6(a).

 “First Period EBITDA
    Shortfall” has the meaning Section 1.6. 

 “First Period Net Revenue
Shortfall” has the meaning Section 1.6. 

-46- 

 “First Measurement Period” has
the meaning set forth in Section 1.6(a). 

“First Milestones” has
  the meaning set forth in Section 1.6(a).

 “Future Payments” means the
First Future Payment and the Second Future Payment, collectively. 

 “Future Payment Objections
Statement” has the meaning specified in Section 1.7. 

“Future
  Payment Report” has the meaning specified in Section 1.7. 

 “GAAP” means generally accepted
accounting principles in the United States as set forth in pronouncements of the
Financial Accounting Standards Board (and its predecessors) and the American
Institute of Certified Public Accountants. 

 “General Survival Date” has the
meaning set forth in Section 6.3. 

 “Governmental Body” means any
foreign or domestic federal, state or local government or quasi-governmental
authority or any department, agency, subdivision, court or other tribunal of any
of the foregoing. 

 “Hazardous Substances” means
(a) petroleum or petroleum products, flammable materials, explosives,
radioactive materials, radon gas, lead-based paint, asbestos in any form, urea
formaldehyde foam insulation, polychlorinated biphenyls (PCBs), transformers or
other equipment that contain dielectric fluid containing PCBs and toxic mold or
fungus of any kind or species, (b) any chemicals or other materials or
substances which are defined as or included in the definition of “hazardous
substances,” “hazardous wastes,” “hazardous materials,” “toxic substances,”
“toxic pollutants,” “contaminants,” “pollutants,” or words of similar import
under any applicable Environmental, Health, and Safety Requirements, and (c) any
other chemical, material or substance exposure to which is prohibited, limited
or regulated under any applicable Environmental, Health, and Safety
Requirements. 

 “Improvements” means all
buildings, structures, fixtures, building systems and equipment, and all
components thereof (including the roof, foundation and structural elements),
included in the Leased Real Property. 

 “Indemnified Party” has the
meaning set forth in Section 6.6(a).

 “Indemnifying Party” has the
  meaning set forth in Section 6.6(a). 

“Indemnity Claim” has the
  meaning set forth in Section 6.8. 

 “Intellectual Property” means
all intellectual property, whether registered or unregistered, including the
following in any jurisdiction throughout the world: (a) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents, patent applications, and patent
disclosures, together with all reissuances, continuations,
continuations-in-part, divisions, extensions, and reexaminations thereof, (b)
all trademarks, service marks, trade dress, logos, slogans, trade names
(including social media user names), corporate and business names, Internet domain names,
and rights in telephone numbers, together with all translations, adaptations,
derivations, and combinations thereof and including all goodwill associated
therewith, and all applications, registrations, and renewals in connection
therewith, (c) all copyrightable works, all copyrights, and all applications,
registrations, and renewals in connection therewith, (d) all mask works and all
applications, registrations, and renewals in connection therewith, (e) all trade
secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production
processes and techniques, technical data and information, data rights, materials
designs, drawings, specifications, customer and supplier lists, pricing and cost
information, and business and marketing plans and proposals), (f) all Software,
(g) all material advertising and promotional materials, (h) all other
proprietary rights, and (i) all copies and tangible embodiments thereof (in
whatever form or medium). Intellectual Property of the Company shall include any
such Intellectual Property listed in the relevant schedules of the Disclosure
Schedule.

-47- 

 “Intellectual Property
  Agreements” means any Contract pursuant to which the Company or any of its
  Subsidiaries uses Intellectual Property which is not owned by the Company or one
  of its Subsidiaries or pursuant to which the Company or any of its Subsidiaries
  grants any other Person the any rights with respect to any Intellectual Property
owned or licensed by the Company or any of its Subsidiaries. 

 “Investor” has the meaning
set forth in the preface. 

 “Investor Expenses” means
any and all legal, accounting, tax, financial advisory and other professional or
transaction related costs, fees and expenses incurred by Great Point Partners,
LLC, Investor or their Affiliates in connection with this Agreement or in
investigating, pursuing or completing the Transactions (including any amounts
owed to any consultants, auditors, accountants, attorneys, brokers or investment
bankers), as evidenced by appropriate written invoices. 

 “Investor Indemnitees” has
the meaning set forth in Section 6.1(a). “Israel Sub” has the
meaning set forth in the Preliminary Statements. 

 “Knowledge” means (a) in
the case of an individual, the actual knowledge of such individual, upon
reasonable inquiry and (b) in the case of Orgenesis Parent, the Company, and
their Subsidiaries, the actual knowledge of Vered Caplan, Fred Tonglet, David
Kim, Ohad Karnieli, Nufar Gross and Denis Bedoret in each case upon reasonable
inquiry of such Person’s direct reports who hold executive office or management
positions. 

 “Law” means any foreign or
domestic federal, state or local law, statute, code, ordinance, regulation,
rule, directive, consent agreement, constitution or treaty of any Governmental
Body, including common law. 

 “Leased Real Property”
means all leasehold or subleasehold estates and other rights to use or occupy
any land, buildings, structures, Improvements, fixtures or other interest in
real property held by the Company or any of its Subsidiaries. 

-48- 

 “Leases” means all written
or oral leases, subleases, licenses, easements, concessions and other
agreements, including all amendments, extensions, renewals, guaranties, and
other agreements with respect thereto, pursuant to which the Company or any of
its Subsidiaries holds any Leased Real Property. 

 “Lien” means any lien,
mortgage, pledge, encumbrance, charge, security interest, adverse claim,
liability, interest, charge, preference, priority, proxy, transfer restriction
(other than restrictions under the Securities Act and state securities Laws),
encroachment, Tax, order, community property interest, equitable interest,
option, warrant, right of first refusal, easement, profit, license, servitude,
right of way, covenant, condition or zoning restriction. 

 “Material Adverse Effect”
means any event, change, development, or effect that, individually or in the
aggregate, will or could reasonably be expected to have a materially adverse
effect on (a) the business, operations, assets (including intangible assets),
liabilities, operating results, or financial condition of the Company or any of
its Subsidiaries or (b) the ability of the Company or Orgenesis Parent to
consummate timely the Transactions. 

 “Material Contracts”
means, collectively, the Contracts required to be listed in Section 3.13(a)
of the Disclosure Schedule, the Leases, the Intellectual Property
Agreements, and the Company Insurance Agreements. 

 “Material Customers” has
the meaning set forth in Section 3.22(a). 

“Material Vendors” has
  the meaning set forth in Section 3.22(a). 

 “Measurement Periods”
means the First Measurement Period and the Second Measurement Period,
collectively. 

 “Most Recent Balance
Sheet” means the balance sheet contained within the Most Recent Financial
Statements. 

 “Most Recent Financial
Statements” has the meaning set forth in Section 3.7(a). 

“Most
  Recent Fiscal Month End” has the meaning set forth in Section 3.7(a) . 

 “Most Recent Fiscal Year
End” has the meaning set forth in Section 3.7(a). 

 “Net Income” means, for
any period of determination, net earnings (or net loss) of the Company and its
Subsidiaries on a consolidated basis for such period, but excluding (without
duplication) (a) any income or gains or losses from the collection of the
proceeds of any insurance policies or settlements, (b) any restoration to income
of any contingency reserve, except to the extent that provision for such reserve
was made out of income accrued during the Measurement Periods, (c) any income or
gain or loss during such period from (i) any prior period adjustments resulting
from any change in accounting principles in accordance with GAAP or (ii) any
discontinued operations or disposition thereof, and (d) any income or gains or
losses resulting from the retirement or extinguishment of Debt or the
acquisition of any securities. 

 “Net Names” has the
meaning set forth in Section 3.12(h). 

-49- 

  "Net
Revenue”means, for the relevant time period, the revenue (net of
discounts, returns, price adjustments, refunds, rebates, credits, offsets and
allowances) generated by the Company and its Subsidiaries on a consolidated
basis for such time period. Notwithstanding anything in this Agreement to the
contrary, if the Company or any of its Subsidiaries engages in an acquisition,
joint venture, disposition or similar transaction prior to the end of the
applicable Measurement Period, then Net Revenue will be calculated without
giving effect to such acquisition, joint venture, disposition or similar
transaction (or the business acquired thereby). 

 “Objections Statement” has the
meaning set forth in Section 1.5.

 “Off-Balance Sheet
Financing” means (a) any liability of the Company or any of its Subsidiaries
under any sale and leaseback transactions which does not create a liability on
the consolidated balance sheet of the Company and (b) any liability of the
Company or any of its Subsidiaries under any synthetic lease, Tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing
product where the transaction is considered indebtedness for borrowed money for
federal income Tax purposes but is classified as an operating lease in
accordance with GAAP for financial reporting purposes. 

 “Order” means any foreign
or domestic order, award, decision, injunction, judgment, ruling, decree,
charge, writ, subpoena or verdict entered, issued, made or rendered by any
Governmental Body or arbitrator. 

 “Ordinary Course of
Business” means the ordinary course of business consistent with past custom
and practice (including with respect to quantity and frequency). 

 “Organizational Documents”
means (a) any certificate or articles of incorporation, bylaws, certificate or
articles of formation, operating agreement or partnership agreement, (b) any
documents comparable to those described in clause (a) as may be applicable
pursuant to any Law, and (c) any amendment or modification to any of the
foregoing. 

 “Orgenesis Indemnitees”
has the meaning set forth in Section 6.2. 

 “Orgenesis Manufacturing
Agreement” has the meaning set forth in Section 3.21(b). 

 “Orgenesis Parent” has the
meaning set forth in the preface. 

 “Orgenesis Transaction
Expenses” means any and all (a) legal, accounting, tax, financial advisory,
environmental consultants and other professional or transaction related costs,
fees and expenses incurred by Orgenesis Parent, its Affiliates, the Company or
any of its Subsidiaries in connection with this Agreement or in investigating,
pursuing or completing the Transactions (in each case including any amounts owed
to any consultants, auditors, accountants, attorneys, brokers or investment
bankers), (b) payments, bonuses or severance which become due or are otherwise
required to be made by Orgenesis Parent, its Affiliates, the Company or any of
its Subsidiaries as a result of or in connection with the Closing or as a result
of any change of control or other similar provisions, and (c) payroll,
employment or other Taxes, if any, required to be paid by Orgenesis Parent, its
Affiliates, the Company or any of its Subsidiaries with respect to the amounts
payable pursuant to this Agreement, the amounts described in clause (a) and (b),
or the forgiveness of any loans or other obligations owed by
Orgenesis Parent or employees in connection with the Transactions. 

-50- 

 “Party” has the meaning
set forth in the preface. 

 “Patents” has the meaning
set forth in Section 3.12(c)(i). 

 “Permit” means any
license, import license, export license, franchise, Consent, permit,
certificate, certification, certificate of occupancy or Order issued by any
Person. 

 “Permitted Lien” means any
(a) statutory liens for Taxes not yet due or payable or for Taxes that the
Company or any of its Subsidiaries are contesting in good faith through
appropriate proceedings in a timely manner, in each case for which adequate
reserves have been established and shown on the Most Recent Balance Sheet, (b)
statutory liens of landlords, carriers, warehousemen, workmen, repairmen,
mechanics, materialmen and similar liens arising in the Ordinary Course of
Business and not incurred in connection with the borrowing of money, (c)
restrictions, easements, covenants, reservations, rights of way or other similar
matters of title to the Leased Real Property of record, and (d) zoning
ordinances, restrictions, prohibitions and other requirements imposed by any
Governmental Body, all of which do not materially interfere with the conduct of
the Business. 

 “Person” means any
individual, corporation, partnership, limited liability company, firm, joint
venture, association, joint-stock company, trust, unincorporated organization,
Governmental Body or other entity. 

 “Personal Information”
refers to data that, separately or when combined with other data, can be used to
identify an individual person, including, without limitation, name, address,
email address, photograph, IP address, and unique device identifier. 

 “Pre-Closing Tax Period”
means any taxable period ending on or before the Closing Date and the portion
through the end of the Closing Date for any taxable period that includes (but
does not end on) the Closing Date. 

 “Privacy Laws” means all
Laws and industry self-regulatory programs concerning the creation, receipt,
maintenance, transmission, use, disclosure, processing, protection, collection,
analysis, retention, storage, privacy, security, breach, transfer, destruction,
or disposal of Personal Information including, without limitation, foreign,
state and local consumer protection Laws, foreign, state and local breach
notification Laws. 

 “Proceeding” means any
foreign or domestic action, hearing, proceeding, audit, lawsuit, litigation,
grievance, investigation or arbitration (in each case, whether civil, criminal
or administrative) pending by or before any Governmental Body or arbitrator.

 “Proper Approval” has the
meaning set forth in Section 1.6(a). 

 “Properly Approved” has
the meaning set forth in Section 1.6(a). 

 “Purchase Price” has the
meaning set forth in Section 1.2. 

-51- 

 “QMS License Agreement”
has the meaning set forth in Section 4.11. 

 “Receivables” has the
meaning set forth in Section 3.7(c). 

 “Released Claims” has the
meaning set forth in Section 4.8. 

 “Released Parties” has the
meaning set forth in Section 4.8. 

 “Releasors” has the
meaning set forth in Section 4.8. 

 “Reorganization” has the
meaning set forth in the Preliminary Statements. 

 “Required Cash” means an
amount of Cash equal to $2,407,771. 

 “Restricted Cash” means
any Cash held in escrow, any deposits, Cash held for, or on behalf of, or owed
to, any clients or customers and any other Cash if the use of, or access to,
such Cash is restricted. 

 “Restricted Period” means
a period of four (4) years following Closing. 

 “Rule 144” has the meaning
set forth in Section 2.2(j). 

 “Second Future Payment”
has the meaning set forth in Section 1.6(b). 

 “Second Measurement
Period” has the meaning set forth in Section 1.6(b). 

 “Second Milestones” has
the meaning set forth in Section 1.6(b).

 “Securities” has the
meaning set forth in Section 2.2(g). 

 “Securities Act” means the
Securities Act of 1933, as amended, and any applicable rules and regulations
thereunder, and any successor to such statute, rules or regulations. 

 “Securities Exchange Act”
means the Securities Exchange Act of 1934, as amended, and any applicable rules
and regulations thereunder, and any successor to such statute, rules or
regulations. 

 “Software” means computer
software programs (and all enhancements, versions, releases, and updates
thereto), including software compilations, software tool sets, compilers, higher
level or “proprietary” languages and all related programming and user
documentation, whether in source code, object code or human readable form, or
any translation or modification thereof that substantially preserves its
original identity. 

 “South Korea Sub” has the
meaning set forth in the Preliminary Statements. 

 “Stockholders’ Agreement”
means that certain Stockholders’ Agreement of the Company dated as of the date
hereof among the Company, Investor and Orgenesis Parent, in the form of
Exhibit D attached hereto. 

-52- 

 “Stockholders’ Agreement
Terms” means Sections 3.2, 3.5, 3.7, 3.9,
3.10, 3.11, 3.12 and Article 4 of the Stockholders’
Agreement, that must be approved by the shareholders of Orgenesis Parent. 

 “Subsidiary” means, with
respect to any Person, any corporation, limited liability company, partnership,
association, or other entity of which (a) if a corporation, fifty percent (50%)
or more of the total voting power of shares of stock entitled (without regard to
the occurrence of any contingency) to vote in the election of directors,
managers, or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof or (b) if a limited liability company,
partnership, association, or other entity (other than a corporation), fifty
percent (50%) or more of partnership or other similar ownership interest thereof
is at the time owned or controlled, directly or indirectly, by that Person or
one or more Subsidiaries of that Person or a combination thereof and for this
purpose, a Person or Persons also owns fifty percent (50%) or more of an
interest in any entity if such Person or Persons shall be allocated fifty
percent (50%) or more of such entity’s gains or losses or shall be or control
any manager, management board, managing director or general partner of such
entity. The term “Subsidiary” shall include
all Subsidiaries of such Subsidiary and for the avoidance of doubt the South
Korea Sub and the Israel Sub are considered Subsidiaries of the Company.

 “Subsidiary Proceeds” has
the meaning set forth in Section 1.10. 

 “Systems” has the meaning
set forth in Section 3.20. 

 “Tax” or “Taxes”
means any federal, state, local and foreign net income, alternative or add-on
minimum, estimated, gross income, gross receipts, sales, use, ad valorem, value
added, transfer, franchise, capital profits, lease, service, license,
withholding, payroll, employment, excise, severance, stamp, occupation, premium,
property, abandoned property or escheat, environmental or windfall profit tax,
customs duty or other tax, governmental fee or other like assessment or charge
of any kind whatsoever (and any liability incurred or borne by virtue of the
application of Treasury Regulation Section 1.1502 -6 (or any similar or
corresponding provision of state, local or foreign Law), as a transferee or
successor, by contract or otherwise), together with all interest, penalties,
additions to tax and additional amounts with respect thereto. 

 “Tax Return” means any
return, declaration, report, claim for refund, or information return or
statement relating to Taxes, including any schedule or attachment thereto, and
including any amendment thereof. 

 “Third Party” means any
entity other than the Company or the Subsidiaries with whom Orgenesis Parent or
any of its Subsidiaries has a collaboration, joint venture, partnership or
similar economic relationship for the development of a product with therapeutic
use where the primary purpose of such collaboration, joint venture, partnership
or relationship is not manufacturing related to such product. 

 “Third-Party Claim” has
the meaning set forth in Section 6.6(a). 

 “Threshold” has the
meaning set forth in Section 6.4(a). 

-53- 

 “Trademarks” has the
meaning set forth in Section 3.12(c)(ii). 

 “Transactions” means all
of the transactions contemplated by this Agreement and the Ancillary Agreements,
including but not limited to, the Reorganization. 

 “Working Capital” means an
amount equal to (a) the amount of the current assets (excluding Cash, Restricted
Cash and income Tax assets) of the Company and its Subsidiaries, minus
(b) the amount of the current liabilities (excluding Cash, Debt, income Tax
liabilities and all accounts payable of the Company and its Subsidiaries that
have been outstanding for more than 90 days) of the Company and its
Subsidiaries, in each case determined on a consolidated basis, consistently with
the calculation and principles set forth on Schedule 8.1. For purposes of
clarity, Orgenesis Transaction Expenses shall not be accrued as a liability but
shall be paid by Orgenesis Parent, and the Working Capital shall be otherwise
calculated as if the Transactions had not occurred. 

 “Working Capital Deficit”
means the amount by which the Working Capital as of the Closing Date is less
than negative Four Million Nine Hundred Sixty-One Thousand Six Hundred Ninety
Dollars (-$4,961,690). 

ARTICLE 9 

MISCELLANEOUS 

 9.1        Press Releases and Public
Announcements. No press release or any public announcement relating to the
subject matter of this Agreement shall be made by any Party without the prior
written approval of the other Parties, except (i) the approved press release
attached hereto as Schedule 9.1 and (ii) any press release or public
announcement that is required by applicable Law, in which case the Party
required to make the press release or announcement will allow the other Parties
reasonable time to comment on such press release or announcement in advance of
issuance and shall incorporate such comments into such press release or
announcement. Notwithstanding the foregoing, after the Closing, the Company and
Investor shall be permitted to issue press releases, make public announcements
and communicate with employees, customers and suppliers of Orgenesis Parent.

 9.2        No Third-Party
Beneficiaries. This Agreement shall not confer any rights or remedies upon
any Person other than the Parties and their respective successors and permitted
assigns. 

 9.3        Entire Agreement. This
Agreement (including the documents referred to herein) constitutes the entire
agreement among the Parties and supersedes any prior understandings, agreements,
or representations by or among the Parties, written or oral, to the extent they
relate in any way to the subject matter hereof. 

 9.4        Succession and
Assignment. This Agreement shall be binding upon and inure to the benefit of
the Parties named herein and their respective successors and permitted assigns.
No Party may assign either this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of Investor and
Orgenesis Parent; provided, however, that Investor may (a) assign
any or all of its rights and interests hereunder to one or more of its Affiliates and designate one or more of its Affiliates to
perform its obligations hereunder (in any or all of which cases Investor
nonetheless shall remain responsible for the performance of all of its
obligations hereunder) for reorganization purposes; provided, that such
assignment is not to a competitor of the Company and its Subsidiaries, (b)
assign its rights under this Agreement for collateral security purposes to any
lenders providing financing to Investor, the Company or any of their respective
Subsidiaries or Affiliates; provided, that such lender is approved by
Orgenesis Parent (such approval not to be unreasonably withheld), or (c) assign
its rights under this Agreement to any Person that acquires the Company or any
of its Subsidiaries or any of their assets or any of Investor’s equity interests
in the Company. Notwithstanding the foregoing, Orgenesis Parent may assign its
rights under this Agreement without the prior written approval of Investor to
any Person that acquires the Company or any of its Subsidiaries or any of their
assets. 

-54- 

 9.5      Counterparts. This
  Agreement may be executed in one or more counterparts (including by means of
  facsimile or via email in electronic or portable document format (.pdf)
  signature pages), each of which shall be deemed an original but all of which
together will constitute one and the same instrument. 

 9.6       Headings. The section
headings contained in this Agreement are inserted for convenience only and shall
not affect in any way the meaning or interpretation of this Agreement. 

 9.7       Notices. All notices,
requests, demands, claims, and other communications hereunder will be in
writing. Any notice, request, demand, claim, or other communication hereunder
shall be deemed duly given (a) when delivered personally to the recipient, (b)
when sent by electronic mail or facsimile, on the date of transmission to such
recipient, (c) one (1) Business Day after being sent to the recipient by
reputable overnight courier service (charges prepaid), or (d) four (4) Business
Days after being mailed to the recipient by certified or registered mail, return
receipt requested and postage prepaid, and addressed to the intended recipient
as set forth below: 

	 	If to Orgenesis 	Orgenesis Inc. 
	 	Parent: 	20271 Goldenrod Lane 
	 	  	Germantown, MD 20876 
	 	  	Attention: Vered Caplan 
	 	  	Fax: 646-878-0801 
	 	  	Email: vered.c@orgenesis.com 
	 	  	  
	 	Copy to: 	Pearl Cohen Zedek Latzer Baratz LLP 
	 		1500 Broadway  
	 	  	New York, NY 10036 
	 	  	Attention: Mark Cohen 
	 	  	Fax: 646-878-0801 
	 	  	Email: MCohen@PearlCohen.com

-55- 

	 	If to the Company: 	Masthercell Global Inc. 
	 	 	c/o Pearl Cohen Zedek Latzer Baratz LLP 
	 		1500 Broadway  
	 	 	New York, NY 10036 
	 	 	Attention: Mark Cohen, Esq. 
	 		Fax: 646-878-0801  
	 	 	Email: vered.c@orgenesis.com 
	 	 	 
	 	Copy to: 	Pearl Cohen Zedek Latzer Baratz LLP 
	 		1500 Broadway  
	 	 	New York, NY 10036 
	 	 	Attention: Mark Cohen 
	 		Fax: 646-878-0801  
	 	 	Email: MCohen@PearlCohen.com 
	 	 	 
	 	Copy to: 	GPP-II Masthercell, LLC 
	 	 	c/o Great Point Partners, LLC 
	 	 	165 Mason Street, 3rd Floor 
	 	 	Greenwich, CT 06830 
	 	 	Attention: Noah F. Rhodes, III 
	 	 	Fax: (203) 971-3320 
	 	 	Email: nrhodes@gppfunds.com 
	 	 	 
	 	Copy to Investor 	McDermott Will & Emery LLP 
	 	Counsel: 	444 West Lake Street, Suite 4000 
	 	 	Chicago, Illinois 60606 
	 	 	Attention: Brooks B. Gruemmer 
	 	 	Fax: (312) 984-7700 
	 	 	Email: bgruemmer@mwe.com 
	 	 	 
	 	Copy to: 	Orgenesis Inc. 
	 	 	20271 Goldenrod Lane 
	 	 	Germantown, MD 20876 
	 	 	Attention: Vered Caplan 
	 		Fax: 646-878-0801  
	 	 	Email: vered.c@orgenesis.com 
	 	 	 
	 	Copy to: 	Pearl Cohen Zedek Latzer Baratz LLP 
	 		1500 Broadway  
	 	 	New York, NY 10036 
	 	 	Attention: Mark Cohen 
	 		Fax: 646-878-0801  
	 	 	Email: MCohen@PearlCohen.com

-56- 

	 	If to Investor: 	GPP-II Masthercell, LLC 
	 	  	c/o Great Point Partners, LLC 
	 	  	165 Mason Street, 3rd Floor 
	 	  	Greenwich, CT 06830 
	 	  	Attention: Noah F. Rhodes, III 
	 	  	Fax: (203) 971-3320 
	 	  	Email: nrhodes@gppfunds.com 
	 	  	  
	 	Copy to Investor 	McDermott Will & Emery LLP 
	 	Counsel: 	444 West Lake Street, Suite 4000 
	 	  	Chicago, Illinois 60606 
	 	  	Attention: Brooks B. Gruemmer 
	 	  	Fax: (312) 984-7700 
	 	  	Email: bgruemmer@mwe.com 

Any Party may change the address to which notices, requests,
demands, claims, and other communications hereunder are to be delivered by
giving the other Parties notice in the manner herein set forth. 

 9.8       Governing Law. This
Agreement and any claim, controversy or dispute arising out of or related to
this Agreement, any of the Transactions, the relationship of the Parties, and/or
the interpretation and enforcement of the rights and duties of the Parties,
whether arising in contract, tort, equity or otherwise, shall be governed by and
construed in accordance with the domestic Laws of the State of Delaware
(including in respect of the statute of limitations or other limitations period
applicable to any such claim, controversy or dispute), without giving effect to
any choice or conflict of Law provision or rule (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the Laws
of any jurisdiction other than the State of Delaware. 

 9.9       Amendments and
Waivers. No amendment of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by Investor and Orgenesis Parent.
No waiver by any Party of any provision of this Agreement or any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be valid unless the same shall be in writing and
signed by the Party making such waiver nor shall such waiver be deemed to extend
to any prior or subsequent default, misrepresentation, or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence. 

 9.10       Injunctive Relief.
The Parties hereby agree that, in the event of breach of Sections 4.1,
4.3, 4.4, 4.5, or 4.6 of this Agreement, damages
would be difficult, if not impossible, to ascertain, that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached,
and that the character, periods and geographical area and the scope of the
restrictions on Orgenesis Parent’s activities in Sections 4.4, 4.5
and 4.6 are fair and reasonably required for the protection of Investor
and its Affiliates. It is accordingly agreed that, in addition to and without
limiting any other remedy or right it may have, Investor shall be entitled to an
injunction or other equitable relief in any court of competent jurisdiction,
without any necessity of proving damages or any requirement for the posting of a bond
or other security, enjoining any such breach of Sections 4.1, 4.3, 4.4, 4.5, or 4.6 and enforcing specifically the terms and
provisions. Orgenesis Parent and Investor hereby (a) waives any and all defenses
it may have on the ground of lack of jurisdiction or competence of the court to
grant such an injunction or other equitable relief and (b) acknowledges that
Orgenesis Parent and Investor shall receive significant benefits as a result of
the completion of the Transactions. 

-57- 

 9.11       Severability. Any
  term or provision of this Agreement that is invalid or unenforceable in any
  situation in any jurisdiction shall not affect the validity or enforceability of
  the remaining terms and provisions hereof or the validity or enforceability of
  the offending term or provision in any other situation or in any other
jurisdiction. 

 9.12       Expenses. Except as
otherwise expressly provided in this Agreement, each Party will bear its own
costs and expenses (including legal fees and expenses) incurred in connection
with this Agreement and the Transactions; provided, that (a) all
Orgenesis Transaction Expenses shall be paid by Orgenesis Parent and (b) upon
consummation of the Transactions, the Investor Expenses will be assumed and paid
by the Company up to an amount not to exceed $1,500,000. 

 9.13       Construction. The
Parties have participated jointly in the negotiation and drafting of this
Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favoring or disfavoring any
Party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any Law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word “including” shall mean including without limitation. 

 9.14       Incorporation of Exhibits
and Disclosure Schedule. The Exhibits, Disclosure Schedule and other
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof. 

 9.15       Schedules. Any item
or information set forth in the Disclosure Schedule shall be deemed fully
disclosed to the extent the relevance of such item or information is reasonably
apparent from the face of such disclosure. The Parties intend that each
representation, warranty, and covenant contained herein shall have independent
significance. If any Party has breached any representation, warranty or covenant
contained herein in any respect, the fact that there exists another
representation, warranty or covenant relating to the same subject matter
(regardless of the relative levels of specificity) which the Party has not
breached shall not detract from or mitigate the fact that the Party is in breach
of the first representation, warranty, or covenant. Investor has been provided
full and complete copies of all documents referred to on the Disclosure
Schedule. The Investor shall have no recourse of any kind against Orgenesis
Parent, the Company or any of their Subsidiaries pursuant to Section
6.1(a)(i) with respect matters or items that are properly disclosed as
exceptions to such representation and warranty in the applicable section(s) of
the Disclosure Schedule and in accordance with this Section 9.15. 

 9.16       Waiver of Jury Trial.
EACH OF THE PARTIES WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OR RELATED TO THIS AGREEMENT
IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
PARTIES AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH PARTY,
WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. THE PARTIES AGREE THAT ANY SUCH CLAIM OR CAUSE OF
ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE
FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR
OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT. 

-58- 

 9.17       Exclusive Venue. THE
  PARTIES AGREE THAT ALL DISPUTES, LEGAL ACTIONS, SUITS AND PROCEEDINGS ARISING
  OUT OF OR RELATING TO THIS AGREEMENT MUST BE BROUGHT EXCLUSIVELY IN A FEDERAL
  DISTRICT COURT LOCATED IN THE DISTRICT OF DELAWARE OR THE DELAWARE CHANCERY
  COURT IN NEW CASTLE COUNTY, DELAWARE (COLLECTIVELY THE “DESIGNATED
    COURTS”). EACH PARTY HEREBY CONSENTS AND SUBMITS TO THE EXCLUSIVE
  JURISDICTION OF THE DESIGNATED COURTS. NO LEGAL ACTION, SUIT OR PROCEEDING WITH
  RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN ANY OTHER FORUM. EACH PARTY HEREBY
  IRREVOCABLY WAIVES ALL CLAIMS OF IMMUNITY FROM JURISDICTION AND ANY OBJECTION
  WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT,
  ACTION OR PROCEEDING IN ANY DESIGNATED COURT, INCLUDING ANY RIGHT TO OBJECT ON
  THE BASIS THAT ANY DISPUTE, ACTION, SUIT OR PROCEEDING BROUGHT IN THE DESIGNATED
  COURTS HAS BEEN BROUGHT IN AN IMPROPER OR INCONVENIENT FORUM OR VENUE. EACH OF
  THE PARTIES ALSO AGREES THAT DELIVERY OF ANY PROCESS, SUMMONS, NOTICE OR
  DOCUMENT TO A PARTY HEREOF IN COMPLIANCE WITH SECTION 9.7 SHALL BE
  EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING IN A DESIGNATED
  COURT WITH RESPECT TO ANY MATTERS TO WHICH THE PARTIES HAVE SUBMITTED TO
JURISDICTION AS SET FORTH ABOVE. 

 9.18       Time to Bring Claims.
Pursuant to Section 8106, Title 10 of the Delaware Code, the Parties agree that
this Agreement involves at least U.S. $100,000, and that any Proceeding arising
out of or relating to this Agreement or the Transactions may be brought at any
time within 10 years following the date on which there is a Change of Control
Transaction of the Company (as hereinafter defined); it being the intention of
the Parties that, except as otherwise expressly provided in this Agreement with
respect to shorter periods of time, the Parties shall have the maximum amount of
time permitted under the Laws of the State of Delaware to bring a Proceeding
arising out of or relating to this Agreement or the Transactions. Except as
otherwise expressly provided in Section 6.3 with respect to shorter
periods of time, each Party hereby waives the right to assert any statute of
limitations of less than 10 years following the date of a Change of Control
Transaction of the Company in defense of any such Proceeding; provided,
however, that this waiver shall not bar a defense to any Proceeding that
was not commenced within the 10 year time limit imposed by this Section
9.18. For the purposes of this Section 9.18, the term “Change of
Control Transaction” shall mean the following: (i) the sale of all, or
substantially all, of the assets of the Company to a third party that is
unrelated to the Company or its stockholders; (ii) a merger with or into or
consolidated with another entity under circumstances where the stockholders of the Company immediately
prior to such merger or consolidation do not own after such merger or
consolidation shares representing at least fifty percent (50%) of the voting
power of the Company or the surviving or resulting entity, as the case may be;
or (iii) an acquisition of more than 50% of the outstanding equity of the
Company by a third party that is unrelated to the Company or its
stockholders.

-59- 

[Remainder of Page Intentionally Left Blank] 

-60- 

IN WITNESS WHEREOF, the
Parties have executed this Agreement as of the date first above written. 

	INVESTOR: 
	 	 
	GPP-II MASTHERCELL, LLC 
	  	 
	By: 	 
	Name: 	 
	Title: 	 
	  	 
	COMPANY: 
	 
	MASTHERCELL GLOBAL INC. 
	  	 
	By: 	 
	Name: 	 
	Title: 	 
	  	 
	ORGENESIS
  PARENT: 
	 
	ORGENESIS INC. 
	  	 
	By: 	 
	Name: 	 
	Title: 	 

[SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT]Orgenesis Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

EXECUTION VERSION 

MASTHERCELL GLOBAL INC. 

STOCKHOLDERS’ AGREEMENT

TABLE OF CONTENTS 

	 	 	 	 	Page
	 	 	 	 	 
	ARTICLE 1
    	DEFINITIONS
    	1 
	 	 	 	 	 
	 	1.1 	Definitions 	1 
	 	1.2 	Other Definitions
      	13 
	 	 	 	 	 
	ARTICLE 2 	REPRESENTATIONS, WARRANTIES
      AND COVENANTS 	13 
	 	 	 	 	 
	 	2.1 	Representations,
      Warranties and Covenants of the Stockholders 	13 
	 	2.2 	Representations and Warranties of the Company 	14
  
	 	2.3 	Stock Dividends,
      Splits, Reclassifications, Mergers, etc 	15 
	 	 	 	 	 
	ARTICLE 3 	COVENANTS AND CONDITIONS
    	15 
	 	 	 	 	 
	 	3.1 	Restrictions on
      Transfers; General Right of First Refusal 	15 
	 	3.2 	Tag Along and Drag Along 	18
  
	 	3.3 	Rights to Purchase
      	23 
	 	3.4 	Board Composition 	24
  
	 	3.5 	GPP Approval
      Rights 	27 
	 	3.6 	Right of Repurchase 	30
  
	 	3.7 	Irrevocable Proxy
      	32 
	 	3.8 	Information Rights 	33
  
	 	3.9 	Orgenesis Right of
      First Refusal 	34 
	 	3.10 	Spin-Off 	36
  
	 	3.11 	Put and Call
      Rights 	36 
	 	3.12 	Exchange Right 	38
  
	 	 	 	 	 
	ARTICLE 4
    	REGISTRATION
      RIGHTS 	39
  
	 	 	 	 	 
	 	4.1 	General 	39
  
	 	4.2 	Demand
      Registrations 	39 
	 	4.3 	Piggyback Registration 	39
  
	 	4.4 	Obligations of the
      Company 	40 
	 	4.5 	Furnish Information 	42
  
	 	4.6 	Expenses of
      Registration 	42 
	 	4.7 	Underwriting Requirements 	42
  
	 	4.8 	Indemnification
      	43 
	 	4.9 	Suspension of Sales 	45
  
	 	4.10 	Market Stand-Off
      Agreement 	45 
	 	4.11 	Timing Limitations 	45
  
	 	4.12 	Initial Public
      Offering 	46 
	 	 	 	 	 
	ARTICLE 5 	OTHER COVENANTS 	46 
	 	 	 	 	 
	 	5.1 	Confidentiality
      	46 
	 	5.2 	Noncompetition 	47
  
	 	5.3 	Nonsolicitation of
      Employees 	47 

-i- 

TABLE OF CONTENTS 
(continued) 

	 	 	 	Page
	 	 	 	 
	 	5.4 	Nonsolicitation of Customers and Other Persons 	48
  
	 	5.5 	Enforcement
	48 
	 	5.6 	Further Acknowledgments 	48
  
	 	5.7 	Investment
      Opportunities and Conflicts of Interest 	49 
	 	5.8 	Indemnification 	50
  
	 	5.9 	Tech Transfer
      Agreement 	50 
	 	5.10 	Insurance 	50
  
	 	5.11 	Orgenesis
      Shareholder Approvals 	50 
	 	5.12 	Stock Option Plan 	51
  
	 	 		 
	ARTICLE 6
    	MISCELLANEOUS   	51
  
	 		 
	 	6.1 	Entire Agreement; Amendment 	51
  
	 	6.2 	Purchase for
      Investment; Legend on Certificate 	51 
	 	6.3 	Effectiveness of Transfers; Additional Stockholders
	52
  
	 	6.4 	Remedies 	52 
	 	6.5 	Severability 	53
  
	 	6.6 	Notices 	53 
	 	6.7 	Binding Effect; Assignment; Termination 	55
  
	 	6.8 	Action Necessary
      to Effectuate the Agreement 	55 
	 	6.9 	No
      Waiver 	55
  
	 	6.10 	Counterparts
    	56 
	 	6.11 	No
      Strict Construction 	56
  
	 	6.12 	Mutual Waiver of
      Jury Trial 	56 
	 	6.13 	Choice of Law; Exclusive Venue 	56
  
	 	6.14 	Business Days
    	57 
	 	6.15 	Construction 	57
  

-ii- 

STOCKHOLDERS’ AGREEMENT 

 This Stockholders’ Agreement
(this “Agreement”) is entered into as of June 28, 2018 by and among
Masthercell Global Inc. a Delaware corporation (the “Company”), GPP-II
Masthercell, LLC, a Delaware limited liability company (“GPP”), Orgenesis
Inc., a Nevada corporation (“Orgenesis”), the Management Holders and any
other Person who may from time to time become party to this Agreement and be
bound by its provisions. 

PRELIMINARY STATEMENTS 

 A.     The
parties to this Agreement desire to provide for certain restrictions on the
disposition of the Company’s securities, to create certain options with respect
to such securities, and to agree to certain other matters, all upon the terms,
conditions and provisions set forth herein. The parties to this Agreement also
contemplate that additional stockholders in the Company may from time to time
acquire securities of the Company and become a party to this Agreement, and the
parties to this Agreement desire to provide that such securities will be subject
to the terms, conditions and provisions of this Agreement. 

AGREEMENT 

 In consideration of the mutual
representations, warranties, covenants and conditions set forth in this
Agreement, the parties to this Agreement mutually agree as follows: 

ARTICLE 1 

DEFINITIONS 

 1.1    
Definitions. For the purposes of this Agreement, the following terms
shall be defined as follows: 

 “10% Holder” shall have
the meaning set forth in the definition of “Independent Third
Party”. 

 “1933 Act” shall mean the
Securities Act of 1933 and the rules, regulations and interpretations
thereunder, in each case as amended from time to time, or any successor thereto.

 “1934 Act” shall mean the
Securities Exchange Act of 1934 and the rules, regulations and interpretations
thereunder, in each case as amended from time to time, or any successor thereto.

 “Act” shall have the
meaning set forth in Section 6.2. 

 “Activist Shareholder of
Orgenesis” shall mean any Person who acquires shares of capital stock of
Orgenesis who either (i) acquires more than a majority of the voting power of
Orgenesis, (ii) actively takes over and controls a majority of the board of
directors of Orgenesis, or (iii) is required to file a Schedule 13D with respect
to such Person’s ownership of Orgenesis and has described a plan, proposal or
intent to take action with respect to exerting significant pressure on the
management of or directors of, Orgenesis. For the sake of clarity, Activist Shareholder of Orgenesis shall not mean any stockholder of
Orgenesis who is passive and does not take or propose to take active steps with
respect to exerting significant pressure on the management of, or directors of,
Orgenesis. 

 “Additional Repurchase
Event” means, with respect to any Management Holder, any breach or violation
by such Management Holder or his, her or its Affiliates of any of the covenants
set forth in Sections 5.1, 5.2, 5.3 or 5.4 of this
Agreement or any similar obligations set forth in any other contract between
such Management Holder or his, her or its Affiliates, on the one hand, and the
Company or any of its Subsidiaries or Affiliates, on the other hand (including
any employment agreement). 

 “Affiliate” shall mean,
with respect to any Person, any other Person Controlling, Controlled by or under
common Control with such first Person, and any partner of such Person if such
Person is a partnership and when used with respect to the Company or any
Subsidiary of the Company, shall include any holder of capital stock or other
ownership interest of such Person, such Person’s parent entity and any officer
or director of such Person. 

 “Agreement” shall mean
this Agreement, as amended, modified or restated from time to time. 

 “Applicable Area” shall
mean (i) anywhere in the world, but if such area is determined by judicial
action to be too broad, then it means (ii) Europe, North America and Asia, but
if such area is determined by judicial action to be too broad, then it means
(iii) any country in which the Company or any of its Subsidiaries either engaged
in the Business (including, but not limited to, any country in which the Company
or any of its Subsidiaries has a Customer), or actually planned to engage in the
Business, in each case, at any time prior to the date that such Restricted
Stockholder and its, his or her Affiliates and Permitted Transferees cease to
hold any Securities, but if such area is determined by judicial action to be too
broad, then it means (iv) any state or locality within any country in which the
Company or any of its Subsidiaries either engaged in the Business (including,
but not limited to, any state or locality in which the Company or any of its
Subsidiaries has a Customer), or actually planned to engage in the Business, in
each case, at any time prior to the date that such Restricted Stockholder and
its, his or her Affiliates and Permitted Transferees cease to hold any
Securities. 

 “Approved Future Budget”
shall have the meaning set forth in Section 3.5(c). 

 “Approved Initial Budget”
shall have the meaning set forth in Section 3.5(d). 

 “Approved Sale” shall
have the meaning set forth in Section 3.2(b)(i) . 

 “Board” shall mean the
board of directors of the Company. 

 “Business” means the
business of (i) providing manufacturing and development services to third
parties related to cell and gene therapy products, processes and solutions and
providing related manufacturing or development services, and the creation and
development of technology, Intellectual Property, tools and optimizations in
connection with such manufacturing and development services for third parties
and (ii) any other business that the Company or any of its Subsidiaries engaged
in with the approval of the Board, or that the Company or any of its Subsidiaries actively considered engaging in with the approval
of the Board, at any time prior to the date that such Restricted Stockholder and
its, his or her Affiliates and Permitted Transferees cease to hold any
Securities, provided, however, that notwithstanding the foregoing (A) any
new business that is first approved by the Board pursuant to this clause (ii) at
any time when GPP has appointed a majority of the members of the Board shall
not, for purposes of this Agreement and with respect to Orgenesis only, be
considered part of the “Business” and (B) research, manufacturing, development
and all other activities related to the research, development, manufacturing,
discovery and commercialization of therapeutic products, and processes, methods
or services thereof (including, without limitation, such therapeutic products in
which Orgenesis has an economic interest or any relationship with any Third
Party in which Orgenesis has an economic interest or that are created,
developed, manufactured or sold by a joint venture, partnership or collaboration
between Orgenesis and a Third Party) with a Third Party shall not, for purposes
of this Agreement and with respect to Orgenesis only, be considered part of the
“Business”.

- 2 - 

 “Business Day” shall mean
  any day, other than a Saturday, Sunday or legal holiday, on which banks in
Chicago, Illinois are open for business. 

 “Bylaws” shall have the
meaning set forth in Section 3.4(c). 

 “Call Date” shall have
the meaning set forth in Section 3.11(c)(i). 

 “Call Notice” shall have
the meaning set forth in Section 3.11(a). 

 “Call Price” shall have
the meaning set forth in Section 3.11(c). 

 “Cause” means with
respect to a Management Holder (i) “Cause” as such term is defined in such
Management Holder’s employment or similar agreement, if any, with the Company or
any of its Subsidiaries, or (ii) in the absence of such agreement or in the
absence of such definition contained therein (A) the commission of a felony or
other crime involving moral turpitude or the commission of any other act or
omission involving misappropriation, dishonesty, unethical business conduct,
disloyalty, fraud or breach of fiduciary duty, (B) reporting to work under the
influence of alcohol, (C) the use of illegal drugs (whether or not at the
workplace) or other conduct, even if not in conjunction with its, his or her
duties to the Company or any of its Subsidiaries, which could reasonably be
expected to, or which does, cause the Company or any of its Subsidiaries public
disgrace or disrepute or economic harm, (D) repeated failure to perform duties
as reasonably directed by the Board or any officer to whom the Management Holder
reports, (E) gross negligence or willful misconduct with respect to the Company
or any of its Subsidiaries or Affiliates or in the performance of such
Management Holder’s duties to the Company or its Subsidiaries, (F) obtaining any
personal profit not thoroughly disclosed to and approved by the Board in
connection with any transaction entered into by, or on behalf of, the Company or
any of its Subsidiaries, (G) violating any of the terms of the Company’s or any
of its Subsidiaries’ established rules or policies which, if curable, is not
cured to the Board’s reasonable satisfaction within fifteen (15) days after
written notice thereof to such Management Holder, or (H) any other material
breach of this Agreement or any other agreement between the Management Holder
and the Company or any of its Subsidiaries which, if curable, is not cured to the Board’s reasonable satisfaction within fifteen (15) days
after written notice thereof to Management Holder. 

- 3 - 

 “Code” shall have the
meaning set forth in Section 3.1(b). 

 “Common Stock” shall mean
the Voting Common Stock and the Non-Voting Common Stock. 

 “Company” shall have the
meaning set forth in the introductory paragraph of this Agreement and shall also
include its successors and assigns. 

 “Company Option Period”
shall have the meaning set forth in Section 3.1(a)(ii). 

 “Confidential
Information” shall have the meaning set forth in Section 5.1. 

 “Control” (including
“Controlling”, “Controlled by” and “under common control with”) shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through ownership
of voting securities, by contract or otherwise. 

 “Customer” shall mean,
with respect to any Restricted Stockholder, any Person who: (i) purchased or
licensed services from the Company or any of its Subsidiaries (or their
predecessors) relating to the Business of the Company during the three (3) years
prior to the date that such Restricted Stockholder or any of its Permitted
Transferees cease to hold any Securities and entered into an agreement with
respect to such services; (i) was solicited by the Company or any of its
Subsidiaries (or their predecessors) in connection with the Business during such
three (3) year period; or (iii) was a distributor, sales representative, agent
or broker for the Business during such three (3) year period. Notwithstanding
the foregoing, the term “Customer” shall not include (a) any Third Party or (b)
any Person purchasing or licensing products from, or providing or receiving
services from/to, the Company (or any joint venture, collaborators, partners or
the like of the Company) that is not related to the Business. 

 “Definitive
Documentation” shall mean this Agreement, the Company’s Certificate of
Incorporation, the Stock Purchase Agreement and all Ancillary Agreements (as
defined in the Stock Purchase Agreement). 

 “Designated Courts” shall
have the meaning set forth in Section 6.13. 

 “EBITDA” shall have the
meaning set forth in the Stock Purchase Agreement. 

 “Eligible Stockholders”
shall have the meaning set forth in Section 3.1(a)(iii). 

 “Exchange” shall have the
meaning set forth in Section 3.12. 

 “Exchange Notice” shall
have the meaning set forth in Section 3.12. 

 “Exchange Price” shall
have the meaning set forth in Section 3.12. 

- 4 - 

 “Fair Market Value” with
respect to Management Holder Securities means the fair market value of such
Management Holder Securities as of the Termination of such Management Holder’s
employment or engagement with the Company or its Subsidiaries, as reasonably
determined by the Board after taking into account appropriate minority and
liquidity discounts. 

 “Family Group” shall mean
(a) the spouse and descendants (by birth or adoption) of a Stockholder, (b) any
custodian of a custodianship for and on behalf of a Stockholder or his or her
spouse or descendants (by birth or adoption), or (c) any trustee of a trust
solely for the benefit of a Stockholder or his or her spouse or descendants (by
birth or adoption). 

 “First GPP Minimum Ownership
Level” shall have the meaning set forth in Section 3.4(a)(i).

 “First Orgenesis Minimum
Ownership Level” shall have the meaning set forth in Section
3.4(a)(ii). 

 “Fully-Diluted Basis”
shall mean the number of shares of Common Stock which would be outstanding, as
of the date of computation, if all issued and outstanding Stock Equivalents had
been converted, exercised or exchanged; provided, however, that
any Stock Equivalents which are subject to vesting but have not vested as of the
date of computation will be disregarded for purposes of determining
Fully-Diluted Basis. 

 “Fully Participating
Stockholder” shall have the meaning set forth in Section 3.3(b). 

 “GAAP” means generally
accepted accounting principles in the United States as set forth in
pronouncements of the Financial Accounting Standards Board (and its
predecessors) and the American Institute of Certified Public Accountants. 

 “Good Reason” means with
respect to a Management Holder, if applicable, “Good Reason” as such term is
defined in such Management Holder’s employment or similar agreement, if any.

 “GPP” shall have the
meaning set forth in the introductory paragraph of this Agreement and shall also
include its successors and assigns. 

 “GPP Directors” shall
have the meaning set forth in Section 3.4(a)(i) . 

 “GPP Holders” shall mean
(a) GPP, (b) the other Persons listed as GPP Holders on the signature pages of
this Agreement, and (c) any Person (i) to whom Securities, whether on or
following the date of this Agreement, are Transferred by any GPP Holder or
issued by the Company and (ii) who becomes a party (if not already a party) to
this Agreement as a “GPP Holder” by execution of a Joinder Agreement in
substantially the form attached hereto as Exhibit A. Notwithstanding the
foregoing, if a GPP Holder Transfers any of its Securities to a Restricted
Stockholder, then such Restricted Stockholder will not become a “GPP Holder” as
a result of such Transfer and the Securities Transferred to such Restricted
Stockholder will become Restricted Securities. 

 “GPP Offer Price” shall
have the meaning set forth in Section 3.9(i). 

- 5 - 

 “GPP Offered Securities”
shall have the meaning set forth in Section 3.9(i). 

 “GPP Transfer Notice”
shall have the meaning set forth in Section 3.9(i). 

 “Holder” shall have the
meaning set forth in Section 4.1. 

 “Independent Third Party”
shall mean any Person who, immediately before the contemplated transaction, (a)
does not own in excess of ten percent (10%) of the Common Stock on a
Fully-Diluted Basis (a “10% Holder”), (b) is not an Affiliate of a 10%
Holder, and (c) is not the spouse or descendent (by birth or adoption) of a 10%
Holder. 

 “Industry Expert
Director” shall have the meaning set forth in Section 3.4(a)(ii).

 “Initial Two Year Period”
shall mean the two (2) year period following the Investment Date. 

 “Initiating Stockholder”
shall have the meaning set forth in Section 3.2(a)(i). 

 “Intellectual Property”
shall have the meaning set forth in the Stock Purchase Agreement. 

 “Investment Date” means
June 28, 2018. 

 “Management Holder
Securities” shall mean all Securities held by any Management Holder or one
or more of its, his or her Permitted Transferees. 

 “Management Holders”
shall mean (a) those Persons listed as Management Holders on the signature pages
of this Agreement, (b) any Person that acquires any Securities who is or was
formerly an officer or employee of the Company or any of its Subsidiaries, and
(c) any Person that becomes a party to this Agreement as a “Management Holder”
by executing a Joinder Agreement substantially in the form attached hereto as
Exhibit A, and (d) any Permitted Transferee of a Management Holder unless
such transferee is a GPP Holder. 

 “Material Underperformance
Event” means any of the following: (i) if at any time during the Initial Two
Year Period, the Company does not generate positive EBITDA for any twelve (12)
month period as determined on a quarterly basis every six months as measured as
of the end of the second and fourth quarters of each year, (ii) if at any time
after the Initial Two Year Period, the Company generates less than $1,000,000 of
EBITDA for any twelve (12) month period as determined on a quarterly basis every
six months as measured as of the end of the second and fourth quarters of each
year, or (iii) if a PCE has occurred and has not been cured (if such PCE is
subject to an ability to cure in accordance with the definition of “PCE”).

 “Minimum Ownership Level”
shall have the meaning set forth in Section 3.4(c) . 

 “New Securities” shall
have the meaning set forth in Section 3.3(a). 

 “Non-Voting Common Stock”
shall mean the shares of the Company’s non-voting common stock, par value
$0.0001 per share, that the Company may be authorized to issue from time to time
and any stock or other securities issued or issuable with respect to such
shares, including pursuant to a stock dividend, stock split, or like
action, or pursuant to a plan of recapitalization, reorganization,
reclassification, exchange, merger, sale of assets or otherwise. 

- 6 - 

 “Offer Price” shall have
the meaning set forth in Section 3.1(a)(i). 

 “Offered Securities”
shall have the meaning set forth in Section 3.1(a)(i). 

 “Orgenesis” shall have
the meaning set forth in the introductory paragraph of this Agreement. 

 “Orgenesis Change of
Control” shall mean any of (i) the acquisition, directly or indirectly (in a
single transaction or a series of related transactions) by a Person or group of
Persons of either (a) a majority of the common stock of Orgenesis (whether by
merger, consolidation, stock purchase, tender offer, reorganization,
recapitalization or otherwise), or (b) all or substantially all of the assets of
Orgenesis and its Subsidiaries (but only if such transaction includes the
transfer of Securities held by Orgenesis), (ii) if any four (4) of the directors
of Orgenesis as of the Investment Date are removed or replaced or for any other
reason cease to serve as directors of Orgenesis, (iii) the filing of a petition
in bankruptcy or the commencement of any proceedings under bankruptcy laws by or
against Orgenesis, provided that such filing or commencement shall be deemed an
Orgenesis Change of Control immediately if filed or commenced by Orgenesis or
after sixty (60) days if such filing is initiated by a creditor of Orgenesis and
is not dismissed; (iv) insolvency of Orgenesis that is not cured by Orgenesis
within thirty (30) days; (v) the appointment of a receiver for Orgenesis,
provided that such appointment shall constitute an Orgenesis Change of Control
immediately if the appointment was consented to by Orgenesis or after sixty (60)
days if not consented to by Orgenesis and such appointment is not terminated; or
(vi) or dissolution of Orgenesis. 

 “Orgenesis Directors”
shall have the meaning set forth in Section 3.4(a)(ii). 

 “Orgenesis Entity” shall
mean Orgenesis or any of its Subsidiaries other than the Company and its
Subsidiaries. 

 “Orgenesis Loan” shall
mean any loan granted by Orgenesis to the Company within the Initial Two Year
Period which shall be made pursuant to a loan agreement between Orgenesis and
the Company. Any such loan (a) shall be repaid by the Company in accordance with
the terms of the loan agreement (which may specify that the proceeds of any such
loan are to be utilized by certain Subsidiaries of the Company) and (b) shall be
subject to Section 3.5 in all respects. 

 “Orgenesis Option Period”
shall have the meaning set forth in Section 3.9(ii).

 “Original Cost” means the
original purchase or exercise price actually paid for a Management Holder
Security. 

 “Other Business” shall
have the meaning set forth in Section 5.7. 

 “Participating Offeree”
shall have the meaning set forth in Section 3.2(a)(i) . 

- 7 - 

 “Participation Notice”
shall have the meaning set forth in Section 3.2(a)(i). 

 “Participation Price”
shall have the meaning set forth in Section 3.2(a)(i) . 

 “Participation Sale”
shall have the meaning set forth in Section 3.2(a)(i).

 “Participation
Securities” shall have the meaning set forth in Section 3.2(a)(i) . 

 “PCE” shall mean the
occurrence of any of the following: (i) the existence or introduction of an
Activist Shareholder of Orgenesis, (ii) the termination (for any reason),
resignation, or replacement of the person serving, as of the Investment Date, as
the Chief Executive Officer of Orgenesis and the person serving, as of the
Investment Date, as the Chairman of the board of directors of Orgenesis that
occurs within five (5) years from the date hereof, (iii) an Orgenesis Change of
Control, or (iv) the removal or replacement of the Industry Expert Director or
the appointment of a new Industry Expert Director without GPP’s prior written
consent. 

 “Permitted Investors”
shall have the meaning set forth in Section 5.7. 

 “Permitted Issuances”
shall mean any issuances of Securities (a) pursuant to the exercise or
conversion of any Stock Equivalents, (b) pursuant to a stock split, stock
dividend, plan of recapitalization, reorganization or like action, (c) pursuant
to a Public Offering, (d) to the current or future directors, managers,
officers, employees or consultants of the Company or any of its Subsidiaries
pursuant to an equity incentive plan (including a stock purchase plan or
agreement) approved by a Supermajority of the Board or pursuant to a
compensation-related plan or agreement approved by a Supermajority of the Board,
(e) in connection with the acquisition of another Person’s business by the
Company or any of its Subsidiaries (whether by acquisition of stock or assets or
by merger, consolidation, reorganization or other similar transaction) or the
formation of a joint venture, (f) in connection with a non-capital raising
transaction or for non-cash consideration, such as issuances of Securities to
vendors or strategic or marketing partners or in joint ventures or in connection
with sponsored research, collaboration, technology license, development, or OEM
transactions, (g) to lenders or other financing sources in connection with
obtaining financing for the Company or any of its Subsidiaries, (h) in
connection with the reissuance of Securities previously purchased by the Company
from Management Holders, (i) to GPP pursuant to the provisions of the Stock
Purchase Agreement; and (j) any Securities that the Board determines in good
faith (such determination to include the approval of at least one (1) GPP
Director) that any preemptive rights or other rights exercised with respect
thereto might interfere or risk a transaction or pending transaction considered
by the Company. 

 “Permitted Transfer”
shall mean a Transfer of Securities: 

(a)     between any Restricted Stockholder who is a natural
person and such Restricted Stockholder’s Family Group (whether inter vivos or
upon death); provided, however, that, prior to any such Transfer, the Restricted
Stockholder must demonstrate to the reasonable satisfaction of the Company that
the Restricted Stockholder will retain, until its, his or her death, all rights
to vote and Transfer the Securities that are proposed to be Transferred to such
Restricted Stockholder’s Family Group; 

- 8 - 

(b)     by a Restricted Stockholder who is a natural person
and who is deceased or adjudicated incompetent to the personal representative of
such Restricted Stockholder; 

(c)     by the personal representative of a Restricted
Stockholder who is a natural person and who is deceased or adjudicated
incompetent to such Restricted Stockholder’s Family Group; 

(d)     by a GPP Holder to its Affiliates with the prior
written consent of Orgenesis (not to be unreasonably withheld, delayed or
conditioned); provided that such Affiliate is not a competitor of the
Company or the Business; 

(e)     by Orgenesis to its Affiliates with the prior
written consent of GPP (not to be unreasonably withheld, delayed or
conditioned); 

(f)     by a Restricted Stockholder to another Restricted
Stockholder with the prior written consent of a Supermajority of the Board; or

(g)     by a Stockholder to the Company with the prior
written consent of a Supermajority of the Board. 

 “Permitted Transferee”
shall mean any Person who shall have acquired and who shall hold Securities
pursuant to a Permitted Transfer. 

 “Person” shall mean any
individual, partnership, corporation, limited liability company, association,
joint stock company, trust, estate, joint venture, unincorporated organization,
or the United States of America or any other nation, state or other political
subdivision thereof, or any entity exercising executive, legislative, judicial,
regulatory or administrative functions of government. 

 “Preferred Stock” shall
mean the shares of any series of the Company’s preferred stock that the Company
may be authorized to issue from time to time, including the Company’s Series A
Preferred Stock, par value $0.0001 per share, and any stock or other securities
issued or issuable with respect to such shares, including pursuant to a stock
dividend, stock split, or like action, or pursuant to a plan of
recapitalization, reorganization, reclassification, exchange, merger, sale of
assets or otherwise. 

 “Pro-Rata Portion” shall
have the meaning set forth in Section 3.3(a). 

 “Proper Approval” shall
have the meaning set forth in Section 3.11(a).

 “Properly Approved” shall
have the meaning set forth in Section 3.11(a). 

 “Public Offering” shall
mean the completion of a sale of Common Stock pursuant to a registration
statement which has become effective under the 1933 Act, excluding registration
statements on Form S-4, S-8 or similar limited purpose forms, occurring after
the date of this Agreement. 

 “Put Date” shall have the
meaning set forth in Section 3.11(b)(i). 

- 9 - 

 “Put Notice” shall have
the meaning set forth in Section 3.11(a). 

 “Put Price” shall have
the meaning set forth in Section 3.11(b). 

 “Recapitalization” shall
have the meaning set forth in Section 4.12. 

 “Registrable Securities”
shall mean all shares of Common Stock held by any Stockholder or issuable upon
conversion of any Stock Equivalents; provided, that as to any particular
Registrable Securities, such securities shall cease to be Registrable Securities
when (a) a registration statement (other than a registration statement on Form
S-8) with respect to the sale of such securities shall have become effective
under the 1933 Act and such securities shall have been disposed of in accordance
with such registration statement, (b) a registration statement on Form S-8 with
respect to such securities shall have become effective under the 1933 Act, (c)
such securities shall have been sold under a Rule 144 Transaction, (d) all
Registrable Securities held by such Stockholder are eligible to be sold without
restriction under Rule 144(k), or (e) such securities have ceased to be
outstanding. 

 “Repurchase Closing”
shall have the meaning set forth in Section 3.6(e). 

 “Repurchase Price” shall
have the meaning set forth in Section 3.6(d) . 

 “Restricted Period” shall
mean the period during which a Stockholder or any of its, his or her Affiliates
or Permitted Transferees holds any Securities and for two (2) years
thereafter. 

 “Restricted Securities”
shall mean the Securities held by a Restricted Stockholder, whether acquired by
a Restricted Stockholder pursuant to this Agreement or any other agreement,
option plan or other arrangement with the Company or any of its Subsidiaries,
whether on or following the date of this Agreement, and all securities of the
Company issued or issuable with respect to such Securities pursuant to a stock
dividend, stock split, or like action, or pursuant to a plan of
recapitalization, reorganization, reclassification, exchange, merger, sale of
assets or otherwise. 

 “Restricted Stockholder”
shall mean any Stockholder, other than a GPP Holder. Notwithstanding the
foregoing, if a Restricted Stockholder Transfers any of its Securities to a GPP
Holder, then such GPP Holder will not become a “Restricted Stockholder” as a
result of such Transfer and the Securities Transferred to such GPP Holder will
no longer be Restricted Securities. 

 “Restrictive Covenants”
shall have the meaning set forth in Section 5.6. 

 “ROFR Allocation” shall
have the meaning set forth in Section 3.1(a)(iii). 

 “Rule 144 Transaction”
shall mean a Transfer of Securities (a) complying with Rule 144 under the 1933
Act as such Rule or a successor thereto is in effect on the date of such
Transfer (but not including a sale other than pursuant to a “brokers
transaction” as defined in clauses (i) and (ii) of paragraph (g) of Rule 144 as
in effect on the date of this Agreement) and (b) occurring at a time when
Securities are registered pursuant to Section 12 of the 1934 Act. 

- 10 - 

 “Sale of the Company”
shall mean the sale (in a single transaction or a series of related
transactions) of the Company to any Independent Third Party or group of
Independent Third Parties pursuant to which such Independent Third Party or
group of Independent Third Parties acquires (a) a majority of the Common Stock
on a Fully-Diluted Basis (whether by merger, consolidation, sale or Transfer of
Common Stock, reorganization, recapitalization or otherwise), or (b) all or
substantially all of the assets of the Company and its Subsidiaries, determined
on a consolidated basis. For purposes of this definition, all Common Stock that
is issuable upon exercise or conversion of any Stock Equivalents acquired by an
Independent Third Party shall be deemed to be issued and held by such
Independent Third Party. 

 “Sale Request” shall have
the meaning set forth in Section 3.2(b)(i). 

 “SEC” shall mean the
Securities and Exchange Commission. 

 “Second GPP Minimum Ownership
Level” shall have the meaning set forth in Section 3.4(a)(i).

 “Second Orgenesis Minimum
Ownership Level” shall have the meaning set forth in Section
3.4(a)(ii). 

 “Securities” shall mean
all (a) shares of Common Stock, (b) shares of Preferred Stock, (c) Stock
Equivalents, (d) securities of the Company issued or issuable with respect to
the securities referred to in clauses (a), (b) and (c) above, including pursuant
to a stock dividend, stock split, or like action, or pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or otherwise, and (e)
during the Initial Two Year Period only, debt securities and debt instruments
issued by the Company (including pursuant to any credit or loan agreement or
similar arrangement). 

 “Spousal Consent” shall
mean a consent by a spouse of a Stockholder or prospective holder of Securities
in the form set forth in Exhibit B. 

 “Stock Equivalents” shall
mean any (a) warrants, options or other right to subscribe for, purchase or
otherwise acquire any shares of Common Stock or (b) any securities or evidence
of indebtedness, directly or indirectly, convertible into or exchangeable for
shares of Common Stock (including, but not limited to, any outstanding Preferred
Stock) or all rights issued by the Company to acquire shares of Common Stock
whether by exercise of a warrant, option or similar call or conversion of any
existing instruments, in either case for consideration fixed in amount or by
formula, into shares of Common Stock. 

 “Stock Option Plan” shall
have the meaning set forth in Section 5.12. 

 “Stock Purchase
Agreement” shall mean that certain Stock Purchase Agreement, dated as of the
Investment Date, by and among the Company, Orgenesis and GPP, as amended,
modified or restated from time to time. 

 “Stockholders” shall mean
the GPP Holders, the Management Holders, Orgenesis, and any other Person to whom
Securities, whether on or following the date of this Agreement, are issued, sold
or Transferred by the Company or any other Person (including by a Permitted Transferee or other transferee of a Stockholder), and who is a
party to this Agreement or, if not a party, who executes and delivers to the
Company a Joinder Agreement in substantially the form attached hereto as
Exhibit A. 

- 11 - 

 “Stockholders’ Agreement
  Terms” means Sections 3.2, 3.5, 3.7, 3.9,
  3.10, 3.11, 3.12 and Article 4 of this Agreement,
that must be approved by the shareholders of Orgenesis. 

 “Subsequent Offer Notice”
shall have the meaning set forth in Section 3.1(a)(iii). 

 “Subsequent Option
Period” shall have the meaning set forth in Section 3.1(a)(iii). 

 “Subsidiary” shall mean
any corporation, limited liability company, partnership, association, joint
stock company, trust, joint venture or unincorporated organization of which the
Company, at the time in respect of which such term is used, (a) owns directly or
indirectly fifty percent (50%) or more of the equity or beneficial interests, on
a consolidated basis, or (b) owns directly or controls with power to vote,
indirectly through one or more subsidiaries, shares of capital stock or
beneficial interests having the power to cast a fifty percent (50%) or more of
the votes entitled to be cast for the election of directors, trustees, managers
or other officials having powers analogous to those of directors of a
corporation. Unless otherwise specifically indicated, when used in this
Agreement, the term Subsidiary shall refer to a direct or indirect Subsidiary of
the Company. For purposes of this Agreement, (i) MaSTherCell S.A., a company
organized under the laws of Belgium, (ii) Cell Therapy Holding S.A., a company
organized under the laws of Belgium, (iii) Atvio Biotech Ltd., a company
organized under the laws of Israel, and (iv) CureCell Co., Ltd., a Korean stock
corporation, are each considered Subsidiaries of the Company. 

 “Supermajority of the
Board” shall mean a majority of the members of the board of directors of the
Company which must include at least one (1) GPP Director and; so long as a
Material Underperformance Event has not occurred, at least one (1) Orgenesis
Director. 

 “Tech Transfer Agreement”
shall have the meaning set forth in Section 5.9. 

 “Termination” shall have
the meaning set forth in Section 3.6(a). 

 “Third Party” shall mean
any entity other than the Company or the Subsidiaries with whom Orgenesis or any
of its Subsidiaries has a collaboration, joint venture, partnership or similar
economic relationship for the development of a product with therapeutic use
where the primary purpose of such collaboration, joint venture, partnership or
relationship is not manufacturing related to such product. 

 “Transfer” shall mean any
direct or indirect transfer, donation, sale, assignment, pledge, encumbrance,
hypothecation, gift, creation of a security interest in or lien on, or other
disposition, irrespective of whether any of the foregoing are effected with or
without consideration, voluntarily or involuntarily, directly or indirectly, by
operation of law or otherwise, inter vivos or upon death. 

 “Transfer Notice” shall
have the meaning set forth in Section 3.1(a)(i). 

- 12 - 

 “Transferring
Stockholder” shall have the meaning set forth in Section 3.1(a)(i).

 “Trigger Notice Period”
shall mean a period of ninety (90) days which shall begin after GPP provides
revocable written notice to Orgenesis of GPP’s decision that it intends to
exercise certain rights granted to GPP pursuant to this Agreement;
provided, that for the avoidance of doubt no Trigger Notice Period can
end on a date that is earlier than the end of the Initial Two Year Period. 

 “Voting Common Stock”
shall mean the shares of the Company’s voting common stock, par value $0.0001
per share, that the Company may be authorized to issue from time to time and any
stock or other securities issued or issuable with respect to such shares,
including pursuant to a stock dividend, stock split, or like action, or pursuant
to a plan of recapitalization, reorganization, reclassification, exchange,
merger, sale of assets or otherwise. 

 1.2    
Other Definitions. Other defined terms are contained in the body of this
Agreement. 

ARTICLE 2 

REPRESENTATIONS, WARRANTIES AND COVENANTS 

 2.1    
Representations, Warranties and Covenants of the Stockholders. Each
Stockholder represents and warrants to the Company, and agrees and acknowledges,
as follows: 

(a)     All Securities acquired by or for the Stockholder
are and will be acquired solely for the Stockholder’s own account for investment
purposes only and not with a present view toward the distribution thereof or
with any present intention of distributing or reselling any such Securities in
violation of the 1933 Act or any state securities laws. Irrespective of any
other provisions of this Agreement, the Stockholder may only Transfer the
Securities if the Company determines that such Transfer is in compliance with
all applicable Federal and state securities laws, including the 1933 Act.

(b)     The Stockholder has had the opportunity to ask
questions and receive answers concerning the Company and the Securities acquired
by the Stockholder. The Stockholder acknowledges that it has received all of the
information it considers necessary or appropriate for deciding whether to
acquire the Securities. The Stockholder and its advisors, if any, have been
afforded the opportunity to ask questions of the Company. 

(c)     The Stockholder has such knowledge and experience in
financial and business matters such that the Stockholder is capable of
evaluating the merits and risks of an investment in the Securities, or has
consulted with advisors who possess such knowledge and experience. The
Stockholder is able to bear the economic risk of its investment in the
Securities for an indefinite period of time. The Stockholder understands that
the Securities have not been and may never be, registered under the 1933 Act and
therefore cannot be Transferred unless subsequently registered under the 1933
Act or unless an exemption from such registration is available. 

- 13 - 

(d)     The Stockholder is an accredited investor (as such
term is defined in Rule 501 of the 1933 Act). 

(e)     The Stockholder has not and will not enter into any
agreement or arrangement of any kind which conflicts with or violates any
provision of this Agreement, including but not limited to, any agreement or
arrangement with respect to the acquisition, disposition or voting of shares
inconsistent with this Agreement. If the Stockholder is at any time a married
individual, then such Stockholder shall cause its spouse to execute and deliver
to the Company a Spousal Consent. 

(f)     If the Stockholder is a corporation, partnership,
limited liability company, trust, custodianship, estate or other entity, then
(i) such Stockholder is validly existing and in good standing under the laws of
its jurisdiction of formation or organization, (ii) such Stockholder has full
power and authority to enter into and perform its obligations under this
Agreement, (iii) the execution and delivery by such Stockholder of this
Agreement and the performance by such Stockholder of its obligations under this
Agreement have been duly authorized and approved by all requisite corporate,
partnership, limited liability company or trust action, and (iv) this Agreement
has been duly executed and delivered by a duly authorized person on such
Stockholder’s behalf. 

(g)     This Agreement constitutes the legally binding
obligation of the Stockholder, enforceable against the Stockholder in accordance
with its terms in each case subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally and subject to general principles of equity (regardless of
whether enforceability is considered in a proceeding at law or equity). The
execution, delivery and performance of this Agreement by the Stockholder does
not and will not conflict with, violate or cause a breach of any document,
agreement, contract or instrument to which such Stockholder is a party or any
judgment, order or decree to which such Stockholder is subject. 

 2.2    
Representations and Warranties of the Company. The Company represents and
warrants to the Stockholders as follows: 

(a)     The Company is validly existing and in good standing
under the laws of the State of Delaware. The Company has full corporate power
and authority to enter into and perform its obligations under this Agreement.
The execution and delivery by the Company of this Agreement and the performance
by the Company of its obligations under this Agreement have been duly authorized
and approved by all requisite corporate action. This Agreement has been duly
executed and delivered by a duly authorized officer of the Company.

(b)     This Agreement constitutes the legally binding
obligation of the Company, enforceable against the Company in accordance with
its terms, in each case subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally and subject to general principles of equity (regardless of
whether enforceability is considered in a proceeding at law or equity). 

- 14 - 

(c)     The execution, delivery and performance of this
Agreement by the Company do not and will not conflict with, violate or cause a
breach of any of the terms or provisions of the Company’s Certificate of
Incorporation or Bylaws, or of any agreement, contract or instrument to which
the Company is a party, or any judgment, order or decree to which the Company is
subject. 

 2.3    
Stock Dividends, Splits, Reclassifications, Mergers, etc. Each
Stockholder acknowledges and agrees that any Securities issued by the Company
pursuant to a stock dividend, stock split, reclassification or like action, or
pursuant to the exercise of a right granted by the Company to all holders of
Securities to purchase Securities on a proportionate basis, will be Transferred
only, and for all purposes be treated in the same manner as, and be subject to
the same options with respect to, the Securities which were split or
reclassified or with respect to which a stock dividend was paid or rights to
purchase stock on a proportionate basis were granted. In the event of a merger
of or exchange involving the Company where this Agreement does not terminate,
partnership units, membership units, shares of common stock or similar equity
interests (and/or securities convertible into such units, shares or similar
equity interests) that are issued in exchange for Securities will thereafter be
deemed to be Securities subject to the terms of this Agreement. 

ARTICLE 3 

COVENANTS AND CONDITIONS 

 3.1    
Restrictions on Transfers; General Right of First Refusal. 

(a)     Subject to Section 3.1(c) and (d), no
Restricted Stockholder may Transfer any Securities or any interest in all or any
part of any of the Securities owned by such Restricted Stockholder, unless such
Transfer is (x) approved in advance by a Supermajority of the Board, and (y)
made in accordance with the following procedures: 

(i)     If any Restricted Stockholder desires to Transfer
Securities in a bona fide arm’s length transaction to any Person (a
“Transferring Stockholder”), then such Transferring Stockholder shall
deliver written notice of such proposed Transfer to the Company and GPP. Such
written notice (the “Transfer Notice”) shall set forth, in reasonable
detail, the terms and conditions of such proposed Transfer, including the name
of the prospective purchaser (including all parties that directly or indirectly
hold interests in the prospective purchaser), the payment terms, the type of
disposition, the number and type of Securities proposed to be Transferred
(“Offered Securities”), the proposed purchase price for the Offered
Securities on a per share basis (the “Offer Price”) and any other information
reasonably requested by a Supermajority of the Board with respect to such
proposed Transfer and the prospective purchaser, together with a complete and
accurate copy of the prospective purchaser’s written offer to purchase the
Offered Securities from the Transferring Stockholder. The Transfer Notice shall
further state that first the Company, and then GPP and the other Stockholders
may acquire, in accordance with the provisions of this Agreement, the Offered
Securities for the price and upon the other terms and
conditions set forth in the Offer Notice. 

- 15 - 

(ii)     For a period of thirty (30) calendar days after
  receipt of the Transfer Notice (the “Company Option Period”), the Company
  may elect, by delivery of written notice to the Transferring Stockholder, to
  purchase all or any portion of the Offered Securities at the Offer Price and on
the other terms and conditions set forth in the Offer Notice. 

(iii)     If the Company does not elect to purchase all of
the Offered Securities pursuant to clause (ii) above, then, promptly after the
expiration of the Company Option Period, the Company shall notify each of the
other Stockholders (other than the Transferring Stockholder and any Management
Holders that are no longer employed or engaged by the Company or any of its
Subsidiaries) (the “Eligible Stockholders”) of the number of Offered
Securities, if any, which the Company has not elected to purchase (the
“Subsequent Offer Notice”). For a period of fifteen (15) calendar
days after the expiration of the Company Option Period (the “Subsequent
Option Period”), each Eligible Stockholder may elect, by giving written
notice as described below, to purchase up to that number of remaining Offered
Securities as shall be equal to the product obtained by multiplying (A) the
total number of remaining Offered Securities by (B) a fraction, the
numerator of which is the total number of shares of Common Stock on a
Fully-Diluted Basis owned by such Eligible Stockholder on the date of the
Subsequent Offer Notice and the denominator of which is the total number
of shares of Common Stock on a Fully-Diluted Basis then held by all of the
Eligible Stockholders on the date of the Subsequent Offer Notice, subject to
increase as hereinafter provided. The number of shares that each Eligible
Stockholder is entitled to purchase under this Section 3.1(a) shall be
referred to as a “ROFR Allocation.” If any Eligible Stockholder
does not elect to purchase the full amount of its ROFR Allocation, then all
Eligible Stockholders who so elect shall have the right to purchase such
remaining Offered Securities, and if more than one Eligible Stockholders so
elect, the right to purchase such remaining Offered Securities shall be
allocated among such Eligible Stockholders on a pro-rata basis (based on the
number of shares of Common Stock on a Fully-Diluted Basis then owned by such
Eligible Stockholders). In order to exercise its right to purchase its ROFR
Allocation of any Offered Securities not purchased by Eligible Stockholders, an
Eligible Stockholder must give written notice to the Company, GPP and the
Transferring Stockholder within fifteen (15) calendar days after receipt of the
Subsequent Offer Notice, which notice shall indicate whether or not the Eligible
Stockholder is exercising its right to purchase its ROFR Allocation of the
Offered Securities and, if applicable, whether such Eligible Stockholder is
electing to purchase any additional Offered Securities in the event fewer than
all of the Eligible Stockholders elect to purchase their ROFR Allocations (in
which case the notice shall also state the maximum number of shares of
additional Offered Securities which such Eligible Stockholder is willing to
purchase). 

- 16 - 

(iv)     The closing of the purchase of any Offered
Securities pursuant to Sections 3.1(a)(ii) or 3.1(a)(iii) shall
take place at the principal office of the Company as soon as practical after the
delivery of all applicable election notices, but in no event later than the 40th
calendar day after the expiration of the Company Option Period. At such closing,
each purchaser of Offered Securities shall deliver to the Transferring
Stockholder the Offer Price, on the same terms and conditions as set forth in
the Transfer Notice, payable in respect of the Offered Securities in exchange
for certificates duly endorsed representing the Offered Securities being
acquired by such purchaser, together with stock powers, free and clear of all
claims, liens and other encumbrances. All of the foregoing deliveries will be
deemed to be made simultaneously and none shall be deemed completed until all
have been completed. 

(v)     If all of the Offered Securities are not purchased
by the Company and the Eligible Stockholders pursuant to Section
3.1(a)(iv), then the Transferring Stockholder may Transfer all (but not less
than all) of the remaining Offered Securities to the prospective purchaser
identified in the Transfer Notice, but only in accordance with Section
3.1(b) and in accordance with the terms (including the purchase price) set
forth in the Transfer Notice, within three months after expiration of the
Subsequent Option Period. Any of such Offered Securities that have not been
Transferred by the Transferring Stockholder in such three month period shall
again be subject to the restrictions set forth in this Section 3.1 and
must be reoffered to the Company, GPP and the other Stockholders pursuant to
this Section 3.1(a) before any subsequent Transfer. 

(b)     Any Securities transferred pursuant to this
Section 3.1, including to a Permitted Transferee, shall remain subject to
the Transfer restrictions of this Agreement, and each purchaser of Offered
Securities (other than the Company) who is not a party to this Agreement shall
(i) execute and deliver to the Company a Joinder Agreement in substantially the
form attached hereto as Exhibit A, (ii) in the event such purchaser is a
Management Holder, within thirty (30) days after the date of such purchase, make
an effective election with the Internal Revenue Service under Section 83(b) of
the Internal Revenue Code of 1986, as it may be amended from time to time, and
the regulations promulgated thereunder (the “Code”), in the form of
Exhibit C attached hereto and (iii) take such other actions and execute
such other documents as the Company reasonably requests. The Transferring
Stockholder shall pay all expenses incurred by the Company in connection with a
Transfer pursuant to this Section 3.1. 

(c)     The provisions of Section 3.1(a) and
Section 3.9 shall not apply to a Transfer of Securities which is (i) a
Permitted Transfer, (ii) a Transfer pursuant to Section 3.2(a) (provided
that a Transfer by a Restricted Stockholder that is the Initiating Stockholder
shall be subject to the provisions of Section 3.1(a)), (iii) a Transfer
pursuant to Section 3.2(b), (iv) a Transfer made pursuant to or after a
Public Offering, (v) a Transfer by a GPP Holder or (vi) a Transfer by a
Management Holder to another Management Holder, if such Transfer is approved by
the Board and GPP. 

- 17 - 

(d)     Notwithstanding anything to the contrary contained
in this Agreement, (i) in no event shall any Restricted Stockholder transfer any
interest in any Securities to a competitor of the Company or any of its
Subsidiaries, unless such Transfer is pursuant to a Sale Request, (ii) a
Transfer of Securities will not be valid or of any force or effect if such
Transfer would result in a violation or breach of any applicable Federal or
state securities law or any agreement to which the Company or any Subsidiary is
a party, (iii) the purchase price specified in any Transfer Notice must be
payable solely in cash at the closing of the transaction or in installments over
time not to exceed two (2) years, (iv) no Permitted Transfer shall be effective
unless and until (A) the transferee of the Securities so Transferred, if such
transferee is not a party to this Agreement, executes and delivers to the
Company a Joinder Agreement in substantially the form attached hereto as
Exhibit A, and (B) the transferee of the Securities so Transferred, if
such transferee is a Management Holder, within thirty (30) days after the date
of such Transfer, makes an effective election with the Internal Revenue Service
under Section 83(b) of the Code in the form of Exhibit C attached hereto,
and (v) no Restricted Stockholder shall avoid the provisions of this Agreement
by making one or more Transfers to one or more Permitted Transferees and then
disposing of all or any portion of such party’s interest in any such Permitted
Transferee. In addition, each Restricted Stockholder that is an entity agrees
that (x) certificates for shares of its common stock or other instruments
reflecting equity interests in such entity (and the certificates for shares of
common stock or other equity or ownership interests in any similar entities
controlling such entity) will note the restrictions contained in this Agreement
on the restrictions on Transfer as if such common stock or other equity or
ownership interests were Securities, (y) no shares of such common stock or other
equity or ownership interests may be issued or Transferred to any Person other
than in accordance with the terms and provisions of this Agreement as if such
common stock or other equity or ownership interests were Securities and (z) any
Transfer of such common stock or other equity or ownership interests shall be
deemed to be a Transfer of a pro-rata number of Securities hereunder subject to
the restrictions herein. 

 3.2    
Tag Along and Drag Along. 

(a)     Tag Along. Subject to Section
3.2(a)(vi), no Stockholder shall Transfer Securities owned by such
Stockholder to any Person without complying with the terms and conditions set
forth in this Section 3.2(a); provided, that a Stockholder may be
an Initiating Stockholder (defined below) under this Section 3.2(a) only
if such Transfer is permitted under Section 3.1 and only after such
Stockholder has fully complied with any applicable requirements of Section
3.1. 

(i)     If any Stockholder (the “Initiating
Stockholder”) desires to Transfer Securities to any Person, then such
Initiating Stockholder shall deliver written notice of such proposed Transfer
(the “Participation Sale”) to each other Stockholder (“Participating
Offeree”) and to the Company. Such written notice (the “Participation
Notice”) shall be delivered not less than ten (10) calendar days prior to
such proposed Transfer and shall set forth, in reasonable detail, the terms and
conditions of such proposed Transfer, including the name of the prospective
purchaser, the payment terms, the type of disposition, the number and type of
 Securities proposed to be Transferred
(the “Participation Securities”), and the proposed purchase price for the
Participation Securities on a per share basis (the “Participation
Price”), together with a complete and accurate copy of the prospective
purchaser’s written offer to purchase the Participation Securities from the
Initiating Stockholder. Within ten (10) calendar days following the delivery of
the Participation Notice by the Initiating Stockholder to each Participating
Offeree and to the Company, each Participating Offeree may elect, by delivery of
written notice to the Initiating Stockholder and to the Company, to Transfer to
the purchaser in such Participation Sale up to that number of Securities owned
by such Participating Offeree as shall be equal to the product obtained by
multiplying (A) the number of Participation Securities by (B) a fraction, the numerator of which is the total number of shares of Common Stock on a
Fully-Diluted Basis owned by such Participating Offeree on the date of such
Participation Notice and the denominator of which is the total number of
shares of Common Stock on a Fully-Diluted Basis then held by all of the
Stockholders on the date of such Participation Notice. If any Participating
Offeree fails to deliver such written notice to the Initiating Stockholder and
the Company within such ten (10) calendar day period, then such Participating
Offeree shall no longer have any right to Transfer Securities pursuant to this Section 3.2(a) in such Participation Sale. 

- 18 - 

(ii)     If the Participation Securities consist of more
  than one series or class or type of Securities and if a Participating Offeree
  exercises rights pursuant to this Section 3.2(a), then such Participating
  Offeree shall be required as a condition of such exercise (and shall be
  entitled) to Transfer the same proportionate amount of the series or class or
  type of Securities that the Initiating Stockholder Transfers to the purchaser in
  connection with such Participation Sale; provided, that this sentence
  shall not apply to the extent that such Participating Offeree does not then own
  such other Securities or securities convertible or exchangeable into such other
  Securities. If the purchaser of any Participation Securities refuses to buy any
  of the Securities which any Participating Offeree has validly elected to include
  in the Participation Sale pursuant to this Section 3.2(a), then the
  Initiating Stockholder may not Transfer any of its Securities to such purchaser
  unless the Initiating Stockholder purchases from such Participating Offeree the
  number of Securities that such Participating Offeree would be entitled to
  Transfer pursuant to this Section 3.2(a) for the consideration the
  Participating Offeree would have received pursuant to this Section
3.2(a). 

(iii)     The Participating Offerees that have validly
elected to participate in the Participation Sale shall receive, upon the
consummation of such Participation Sale, the same form and amount of
consideration on a per share basis, or if any such Participating Offerees are
given an option as to the form and amount of consideration to be received, all
such Participating Offerees must be given substantially the same option.
Notwithstanding the foregoing, if a Participating Offeree elects to offer for
sale Securities in the Participation Sale that are of a different type, class or
series than the Participation Securities or the Participation Securities consist
of more than one series, class or type of Securities and a Participating Offeree does not
then own some or all of such series, classes or types of Securities (or
Securities convertible or exchangeable into such series, class or type of
Securities) and elects to offer for sale another series, class or type of
Securities in place thereof, then all proceeds payable by the transferee(s) to
holders of Securities on account of their Securities upon consummation of the
Transfer of such Securities to the transferee(s) shall be paid to the Company
and shall be allocated by the Company among and paid to the holders of such
Securities based upon the amount that such holders would have received pursuant
to the Company’s certificate of incorporation, assuming that such proceeds were
distributed in a liquidation of the Company and the Securities Transferred in
the Participation Sale were the only Securities outstanding.

- 19 - 

(iv)     At the closing of any Participation Sale, the
  Initiating Stockholder, together with all Participating Offerees validly
  electing to participate in such Participation Sale pursuant to this Section
    3.2(a), shall deliver to the proposed transferee certificates evidencing the
  Securities to be sold, free and clear of all claims, liens and encumbrances,
  together with stock powers duly endorsed. To the extent any Participating
  Offeree does not comply with this Section 3.2(a)(iv) or Section
    3.2(a)(v), such Participating Offeree shall not be entitled to participate
  in such Participation Sale and the Initiating Stockholders shall be entitled to
  sell an additional number of Securities equal to the Securities that otherwise
would have been sold by such Participating Offeree. 

(v)     As a condition to the effective exercise of its
rights under this Section 3.2(a) each Participating Offeree validly
electing to participate in the Participation Sale shall (A) be required to make
such representations, warranties and covenants and agree to provide such
indemnification as the Initiating Stockholder agrees to make or provide in
connection with such Participation Sale, (B) pay such Stockholder’s pro-rata
share of the costs and expenses incurred in connection with such Participation
Sale to the extent such costs and expenses are incurred for the benefit of the
Stockholders participating in such Participation Sale and are not otherwise paid
by the Company (it being agreed that costs incurred by each Participating
Offeree on its own behalf will not be considered costs of such Participation
Sale), and (C) take such other actions and execute such documents as the Company
or the Initiating Stockholder may reasonably request. 

(vi)     The provisions of this Section 3.2(a) shall
not apply to (A) a Permitted Transfer, (B) a Transfer made pursuant to or after
a Public Offering, (C) a Transfer pursuant to Section 3.2(b) or (D) a
Transfer by a Management Holder to another Management Holder if such Transfer is
approved by a Supermajority of the Board. Any Securities Transferred pursuant to
this Section 3.2(a) shall remain subject to the Transfer restrictions of
this Agreement, and each purchaser of Securities who is not a party to this
Agreement shall (A) execute and deliver to the Company a Joinder Agreement in
substantially the form attached hereto as Exhibit A, (B) in the event
such purchaser is a Management Holder, within thirty (30) days after the date of
such purchase, make an effective election with the Internal Revenue Service
under Section 83(b) of the Code in the form of Exhibit C attached
hereto and (C) take such other actions and execute such other documents as the
Company reasonably requests.

- 20 - 

(b)     Drag Along. 

(i)     At any time following the earlier to occur of (a)
the end of the Initial Two Year Period and (b) the occurrence of a Material
Underperformance Event, if GPP or the Board approves a Sale of the Company (an
“Approved Sale”), then GPP or the Company may give written notice
to the Stockholders of the Approved Sale, which notice shall be delivered at
least five (5) Business Days prior to the Approved Sale and shall include the
material terms of the Approved Sale (the “Sale Request”). Each
Stockholder agrees not to directly or indirectly, without the prior written
consent of the Company, disclose to any other Person any information related to
the Sale Request or the Approved Sale, other than disclosures to legal counsel
in confidence or as otherwise required by law. In connection with the Approved
Sale, (A) each Stockholder shall be obligated to and agrees that, in such
Stockholder’s capacity as a stockholder of the Company, such Stockholder will
vote, or grant proxies relating to such shares to vote, all of such
Stockholder’s Securities in favor of, consent to, raise no objections to, and
waive any dissenters, appraisal or similar rights with respect to, the Approved
Sale and will not exercise any right to dissent or seek appraisal rights in
respect of the Approved Sale, (B) each Stockholder shall take all actions which
the Board or GPP deems necessary or advisable in the sole judgment of GPP or the
Board in connection with the consummation of the Approved Sale, including
executing, delivering and agreeing to be bound by the terms of any agreement
related to the Approved Sale and any other agreement, instrument or certificates
necessary to effectuate the Approved Sale, and including appointing a
representative to administer the transactions on behalf of all of the
Stockholders, (C) if the Approved Sale is structured as a Transfer of
Securities, each Stockholder will agree to Transfer its Securities and shall
deliver at the closing of the Approved Sale its Securities, including
certificates relating thereto, free and clear of all claims, liens and
encumbrances, on the terms and conditions as approved by the Board or GPP (it
being understood and agreed that each Stockholder will only be obligated to
Transfer the same percentage of its Common Stock on a Fully-Diluted Basis as the
percentage of Common Stock on a Fully-Diluted Basis proposed to be Transferred
in the Approved Sale), and (D) each Stockholder shall pay such Stockholder’s
pro-rata share of the costs and expenses incurred in connection with the
Approved Sale to the extent such costs and expenses are incurred for the benefit
of the Stockholders and are not otherwise paid by the Company. Costs incurred by
any Stockholder on its own behalf will not be considered costs of the Approved
Sale. Without limiting the foregoing, each Stockholder agrees that, in
connection with the Approved Sale, such Stockholder will (A) make such
representations, warranties and covenants as GPP agrees to make or provide, and
(B) agree to provide severally (not jointly) and on a pro rata basis (based upon
the consideration to be received by such Stockholder in connection with such
Approved Sale) such indemnification, purchase price adjustments and holdbacks as
GPP agrees to provide (provided that each  Stockholder shall be responsible for
all obligations that relate specifically to such Stockholder such as
indemnification with respect to representations and warranties given by a
Stockholder regarding such Stockholder’s title to and ownership of Securities).

- 21 - 

(ii)     Notwithstanding the foregoing, if one of the terms
  or conditions of such Approved Sale requires any Management Holder to agree to
  be bound by customary restrictive covenants, including confidentiality,
  non-competition, and non-solicitation covenants, then each Management Holder
  hereby agrees, that to the extent required by a buyer in connection with an
  Approved Sale, such Management Holder will agree to be bound by such customary
restrictive covenants. 

(iii)     In the event that GPP or the Company provides
notice to Orgenesis that either GPP or the Board is considering exercising its
drag along rights described in Section 3.2(b)(i) or the Company provides
notice to Orgenesis that the Board has determined that the Company will begin
committing significant time and resources in pursuit of exploring a potential
Sale of the Company, Orgenesis shall, within thirty (30) days, provide written
notice to the Company and the Board indicating whether or not Orgenesis would
like to be a potential acquiror of the Company. If Orgenesis does not provide
such notice within such thirty (30) day period, Orgenesis shall be deemed to
have elected that it would not like to be a potential acquiror of the Company.
After such thirty (30) day period, the Board shall form a committee of Directors
(which will include the Industry Expert Director) that will be responsible for
managing the process in connection with such Sale of the Company transaction
and, notwithstanding anything in this Agreement to the contrary, (A) if
Orgenesis has not elected to be a potential acquiror in such a Sale of the
Company transaction, Orgenesis shall have the ability to appoint one (1) member
of such committee, or (B) if Orgenesis has elected to be a potential acquiror in
such a Sale of the Company transaction, an Orgenesis Director shall not be
appointed to such committee, Orgenesis shall recuse itself and all Orgenesis
Directors from such committee and Orgenesis may be a participant in the process
in connection with such Sale of the Company transaction in a manner similar to
other potential third party aquirors. The goal of any process in connection with
a Sale of the Company is anticipated to be consummating a Sale of the Company on
arm’s length terms and with respect to any such Sale of the Company, the Company
shall obtain a fairness opinion from one of the top ten (10) United States
independent third party accounting firms selected by GPP in its sole discretion;
provided, however, that if such accounting firms do not provide
such fairness opinions in the ordinary course of their business as of the time
such fairness opinion is to be requested, then the Company shall obtain a
fairness opinion from a reputable, independent third party entity that provides
such opinions as chosen by GPP in its sole discretion. 

(iv)     In the event that GPP Holders do not own at least
189,000 Securities, then GPP shall no longer be able to exercise its drag along
rights set forth in this Section 3.2(b).

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(v)     The Parties hereby agree that the Stockholders shall
not, and cannot, complete an Approved Sale pursuant to this Section 3.2
unless the obligations set forth in Section 5.9 of this Agreement have
been satisfied. 

 3.3    
Rights to Purchase. Each Stockholder acknowledges that, (x) subject to
Section 3.5, the Company shall have the absolute right, in its
sole discretion, to raise capital from all sources and in all manners available
to it, including, but not limited to, the incurrence of debt in any form.
Nothing herein shall be deemed to derogate from Orgenesis’ ability to grant one
or more Orgenesis Loans to the Company subject to Section 3.5 below;
provided that each Stockholder shall have a right to participate in its
Pro-Rata Portion of such Orgenesis Loan in accordance with this Section
3.3. 

(a)     Purchase Right. If the Company authorizes the
issuance and sale of any Securities, other than pursuant to a Permitted Issuance
(“New Securities”), then each Stockholder who is an accredited investor (as
defined in Rule 501 promulgated under the 1933 Act), other than Management
Holders that are no longer employed or engaged by the Company or any of its
Subsidiaries, will have the right to purchase a pro-rata portion of such New
Securities (the “Pro-Rata Portion”). A Stockholder’s Pro-Rata Portion,
for purposes of this Section 3.3, is the ratio that results from (i) the
number of shares of Common Stock on a Fully-Diluted Basis which such Stockholder
then owns divided by (ii) total number of shares of Common Stock on a
Fully-Diluted Basis then held by all of the Stockholders that are accredited
investors, subject to increase pursuant to Section 3.3(b). 

(b)     Right of Over-Allotment. Each of the
Stockholders who has a purchase right under Section 3.3(a) and who
elected to purchase the full amount of their Pro-Rata Portion of the New
Securities pursuant to Section 3.3(a) (a “Fully Participating
Stockholder”), may after five (5), but within ten (10), calendar days
from the date such non-purchasing Stockholder fails to exercise its rights to
purchase its Pro-Rata Portion under Section 3.3(a), elect to purchase the
remaining Pro-Rata Portion. If more than one Fully Participating Stockholder
elects to purchase the remaining Pro-Rata Portion, then the right to purchase
such remaining Pro-Rata Portion shall be allocated among such Fully
Participating Stockholders (based on the number of shares of Common Stock on a
Fully-Diluted Basis then owned by such Fully Participating Stockholders). 

(c)     Notice from the Company. Subject to Section
3.3(d), if the Company proposes to undertake an issuance of New Securities, then
the Company shall give each Stockholder who has a purchase right under
Section 3.3(a) written notice of such proposal, describing in reasonable
detail the type of New Securities, the price and the terms upon which the
Company proposes to issue the New Securities and the terms thereof if other than
Common Stock. For a period of fifteen (15) calendar days following the mailing
of such notice by the Company, each Stockholder may elect to purchase up to its
Pro-Rata Portion of such New Securities (and, if applicable, pursuant to
Section 3.3(b) any Pro-Rata Portion of the New Securities not purchased
by other Stockholders) prior to such issuance. The Stockholder may exercise such
elections by giving written notice to the Company within such fifteen (15)
calendar day period stating therein whether the Stockholder is electing to
purchase all or part of its Pro-Rata Portion and, if applicable,  the maximum number of additional New
Securities it is electing to purchase pursuant to Section 3.3(b).

- 23 - 

(d)     Notice After Sale. Notwithstanding anything
  in this Agreement to the contrary, with the prior approval of the Board, the
  Company may in its sole discretion issue New Securities prior to providing the
  Stockholders with notice and the opportunity to purchase New Securities as set
  forth in Section 3.3(c) above, so long as the Company provides to the
  Stockholders that have a purchase right under Section 3.3(a) such notice
  and opportunity to purchase within 90 calendar days after the issuance of such
  New Securities. For a period of fifteen (15) calendar days following the mailing
  of such notice by the Company, each Stockholder that has a purchase right under
  Section 3.3(a) may elect to purchase up to that number of New Securities
  that would, if purchased by such Stockholder, maintain such Stockholder’s
  ownership percentage of the Common Stock on a Fully-Diluted Basis at the same
  level as such Stockholder owned prior to such sale of New Securities. Each
  Stockholder may exercise such election by giving written notice to the Company
and stating therein the quantity of New Securities to be purchased. 

(e)     Sale by the Company. In the event any
Stockholder who has a purchase right under Section 3.3(a) fails to
exercise in full such Stockholder’s purchase right within the fifteen (15)
calendar day period provided in Section 3.3(c) and after the expiration
of the ten (10) calendar day period for the exercise of the over-allotment in
Section 3.3(b), the Company shall have ninety (90) calendar days
thereafter to sell the New Securities with respect to which the purchase right
was not exercised, at a price and upon terms not materially more favorable to
the purchasers thereof than specified in the Company’s notice given pursuant to
Section 3.3(c). 

(f)     Closing. The Closing for any such issuance
shall take place as proposed by the Company with respect to the New Securities
to be issued, at which Closing the Company shall deliver certificates for the
New Securities in the respective names of the purchasing Stockholders against
receipt of the consideration therefor. 

 3.4    
Board Composition. 

(a)     The Company and each Stockholder agree to take all
actions (including but not limited to each Stockholder voting, or executing
written consents with respect to, all Securities owned by such Stockholder or
over which such Stockholder exercises voting control), that are necessary or
desirable (whether in its, his or her capacity as a stockholder, director,
member of a board committee, officer or otherwise including, without limitation,
attendance at meetings in person or by proxy for purposes of obtaining a quorum
and execution of written consents) to cause: 

(i)     so long as GPP Holders own at least 283,500
Securities (the “First GPP Minimum Ownership Level”), the election
to the Board of up to three (3) individuals designated from time to time by GPP
(the “GPP Directors”); provided, that if the GPP Holders do not own the
First GPP Minimum Ownership Level but own at least 189,000 Securities (the
“Second GPP Minimum Ownership Level”), then GPP shall only be entitled to
designate a total of two (2) GPP Directors;  provided further, that if the
GPP Holders do not own the Second GPP Minimum Ownership Level, then GPP shall
only be entitled to designate a total of one (1) GPP Director; 

- 24 - 

(ii)     so long as Orgenesis owns at least 466,500
  Securities (the “First Orgenesis Minimum Ownership Level”), then,
  subject to Section 3.5 and clause (b) below, the election
  to the Board of four (4) individuals designated from time to time by Orgenesis
  (the “Orgenesis Directors”), one (1) of which will be an expert in the
  industry in which the Company and its Subsidiaries operate and who is not an
  employee of Orgenesis or any of its Subsidiaries (the “Industry Expert
  Director”, which for the avoidance of doubt shall be considered one of
  the Orgenesis Directors); provided, that if Orgenesis does not own the
  First Orgenesis Minimum Ownership Level but owns at least 311,000 Securities
  (the “Second Orgenesis Minimum Ownership Level”), then, subject to
  Section 3.5 and clause (b) below, Orgenesis shall only be entitled
  to designate a total of three (3) Orgenesis Directors, one (1) of which will be
  the Industry Expert Director; provided further, that if Orgenesis does
  not own the Second Orgenesis Minimum Ownership Level, then Orgenesis shall only
be entitled to designate a total of one (1) Orgenesis Director; 

(iii)     the removal from the Board, with or without cause,
of any GPP Director at the written request of GPP, but only upon such written
request and under no other circumstances; 

(iv)     subject to Section 3.5 and clause (b)
below, the removal from the Board, with or without cause, of any Orgenesis
Director at the written request of Orgenesis, but only upon such written request
and under no other circumstances; 

(v)     if any GPP Director resigns, or for any other reason
ceases to serve as a member of the Board during his or her term of office, then
so long as the GPP Holders own the First GPP Minimum Ownership Level or the
Second GPP Minimum Ownership Level, as applicable, the filling of the resulting
vacancy on the Board by a representative designated by GPP; and 

(vi)     if any Orgenesis Director resigns, or for any other
reason ceases to serve as a member of the Board during his or her term of
office, then so long as Orgenesis owns the First Orgenesis Minimum Ownership
Level or the Second Orgenesis Minimum Ownership Level, as applicable, and
subject to Section 3.5 and clause (b) below, the filling of the
resulting vacancy on the Board by a representative designated by Orgenesis. 

(b)     the initial GPP Directors shall be Noah Rhodes,
Jeffrey R. Jay, and Stephen Weaver and the initial Orgenesis Directors shall be
Vered Caplan, Mark Cohen, Rosemary Mazanet and Darren Head all of which shall be
appointed for an initial term of two (2) years. During the Initial Two Year
Period, unless otherwise agreed to in writing by GPP and Orgenesis, Darren Head
shall be designated as the Industry Expert Director.

- 25 - 

(c)     If the GPP Holders fail to own the First GPP Minimum
Ownership Level or the Second GPP Minimum Ownership Level, then so long as
Orgenesis owns the First Orgenesis Minimum Ownership Level, Orgenesis shall be
entitled to fill any director position that GPP no longer has the right to fill.
If Orgenesis fails to own the First Orgenesis Minimum Ownership Level or the
Second Orgenesis Minimum Ownership Level, then so long as the GPP Holders own
the First GPP Minimum Ownership Level, GPP shall be entitled to fill any
director position that Orgenesis no longer has the right to fill. In all other
cases if either the GPP Holders or Orgenesis are no longer entitled to appoint a
director or directors as a result of failing to own an applicable “Minimum
Ownership Level” then the size of the board shall be reduced by the number of
directors that such Party no longer has the right to appoint. If any Person
entitled to appoint a member of the Board as described above fails to appoint
such member, then any member of the Board who would otherwise have been
designated in accordance with the terms of this Section 3.4 shall instead
be elected pursuant to the Company’s Certificate of Incorporation and the bylaws
of the Company (the “Bylaws”). 

(d)     If a Stockholder fails to perform its obligations
under this Section 3.4, then such Stockholder hereby grants to the
Company its proxy to vote such Stockholder’s Securities in accordance with this
Section 3.4. 

(e)     At least one (1) GPP Director and one (1) Orgenesis
Director will be appointed to serve on (i) each committee of the Board and (ii)
each board of directors, board of managers or similar governing body (and each
committee thereof) of any Subsidiary of the Company. The Board shall use
commercially reasonable efforts to meet at least quarterly. The Company shall
purchase D&O insurance in form and substance customary for entities in the
industry in which the Company and its Subsidiaries operate and otherwise
reasonably satisfactory to GPP and Orgenesis assuming such insurance is
available on customary and commercial terms and pricing. Board members will be
reimbursed by the Company for reasonable out of pocket travel and other expenses
related to attending meetings of the Board. 

(f)     Notwithstanding any other term of this Agreement,
(i) at any time after either (x) a PCE described in clause (iv) of the
definition of PCE has occurred, or (y) the end of the Initial Two Year Period if
any other Material Underperformance Event has occurred, GPP shall have the right
to increase the number of directors that constitute the whole Board and the
right to the elect to the Board a number of individuals designated from time to
time by GPP that constitute at least a majority of the total number of directors
on the Board and (ii) the Company and each Stockholder agree to take all action
necessary or desirable to effectuate the foregoing clause (i). In the
event GPP exercises its rights pursuant to this Section 3.4(f), Orgenesis
shall have the approval rights as provided to GPP in Section 3.5(a) (but
only with respect to a liquidation, dissolution and winding-up and only if such
liquidation, dissolution or winding-up is not related to, or following, any
Deemed Liquidation Event (as defined in the Company’s Certificate of
Incorporation), Sale of the Company or Approved Sale), Section 3.5(b),
Section 3.5(j) (but not in connection with any purchase or redemption
contemplated by this Agreement or by the Company’s Certificate of
Incorporation), Section 3.5(k), Section 3.5(m) (but not in
connection with any Deemed Liquidation Event (as defined in the Company’s Certificate of Incorporation), Sale of
the Company or Approved Sale), and Section 3.5(p), provided, however, that (x) any reference to Series A Preferred Stock in Section
3.5(k) shall be deemed to refer to Common Stock with respect to Orgenesis,
(y) in Section 3.5(p) the reference to “Orgenesis Entity” shall be
deemed to be to “GPP” for purposes of this sentence, and (z) none of the
approval rights granted to Orgenesis shall in any way limit, impact or restrict
GPP’s rights under Sections 3.2(b), 3.10, 3.11 or 3.12 or under the Company’s Certificate of Incorporation. 

- 26 - 

(g)     The Stockholders hereby acknowledge and agree that
  each Orgenesis Director, in determining whether or not to vote in support of or
  against any particular decision for which the Board’s consent is required, may
  act in and consider the best interest of Orgenesis and shall not be required to
  act in or consider the best interests of the other Stockholders or other parties
  hereto. The Stockholders acknowledge that (i) the Company has engaged and is
  represented by, and shall continue to engage and be represented by following the
  date hereof, Pearl Cohen Zedek Latzer Baratz LLP for certain legal services and
  the Stockholders hereby waive any claims against Mark Cohen in his capacity as
  an Orgenesis Director that such engagement as counsel to Orgenesis and the
  Company and as a director constitutes (a) a conflict of interest in respect of
  his representation and continued representation of the Company, Orgenesis and
  any of their Subsidiaries and (b) a conflict and/or breach of Mark Cohen’s
  fiduciary duties to the Company so long as all terms of such engagement are
  fully disclosed to the Board, and (ii) to the extent that certain Orgenesis
  Directors are also employees of Orgenesis and engage in activities in the
  ordinary course of such person’s duties on behalf of Orgenesis, so long as such
  activities are performed in the ordinary course of business of Orgenesis and
  would not reasonably be expected to violate the specific terms of this
  Agreement, the Stockholders hereby waive any claims against such Orgenesis
  Directors based upon breach of fiduciary duty in relation to such activities.

(h)     The Stockholders hereby acknowledge and agree that
each GPP Director, in determining whether or not to vote in support of or
against any particular decision for which the Board’s consent is required, may
act in and consider the best interest of GPP and shall not be required to act in
or consider the best interests of the other Stockholders or other parties
hereto. 

 3.5    
GPP Approval Rights. Notwithstanding any other term of this Agreement,
neither Company nor any of its Subsidiaries shall, either directly or by
amendment, merger, reorganization, consolidation or otherwise, take any of the
following actions without the prior written approval of GPP: 

(a)     liquidate, dissolve or wind-up the business and
affairs of the Company or any of its Subsidiaries, effect any Deemed Liquidation
Event (as defined in the Company’s Certificate of Incorporation), or consent to
any of the foregoing; 

(b)     amend, alter or repeal, or waive or exercise any
right under, any provision of the Company’s Certificate of Incorporation or the
Bylaws or any provision of any organizational documents of any Subsidiary of the
Company (which shall include, without limitation, any limited liability company
agreement or operating agreement of  any Subsidiary); provided, however,
that in the event of a Public Offering, GPP agrees to act in good faith and in a
reasonable manner to approve an amendment to the Company’s Certificate of
Incorporation in order to increase the authorized shares of Common Stock of the
Company in connection with such Public Offering. 

- 27 - 

(c)     approve or adopt any budget that covers any period
  following the Initial Two Year Period (any such approved budget being an
“Approved Future Budget”); 

(d)     modify or amend in any material way the budget that
is (i) month-by-month from the date hereof until December 31, 2019 and (ii)
quarterly for the period beginning on January 1, 2020 and ending on June 30,
2020, which is attached hereto as Exhibit D (the “Approved Initial
Budget”) or any Approved Future Budget; 

(e)     incur costs, expenses or expenditures (including
capital expenditures) in an aggregate amount that would be in excess of 120% of
the amounts set forth in the Approved Initial Budget or any Approved Future
Budget on a year to date basis; 

(f)     after the Initial Two Year Period, create or issue
any shares of stock or other equity, debt or other securities or accept any
grants or increase the authorized number of shares of Preferred Stock or
increase the authorized number of shares of any additional class or series of
shares of stock, or create or authorize any obligation or security convertible
into shares of any class or series of stock; 

(g)     during the Initial Two Year Period, create or issue
any debt, equity or other securities or borrow any funds or accept any grants
unless the securities issued or funds borrowed or grants accepted (i) are
subordinate to GPP, (ii) not dilutive to GPP in any way, (iii) do not impact any
of GPP’s rights under this Agreement or as a holder of Securities in any way,
(iv) are without any preferential or approval rights or Board seats (or Board
observer or other rights), and (v) if in the form of debt, are non-convertible
and unsecured (such that no stock or assets of the Company or any of its
Subsidiaries may be pledged or used as collateral) and are consistent with
market interest rates; 

(h)     permit any Subsidiary to issue any debt or borrow
any money, except that intercompany loans by the Company to its Subsidiaries
shall be permitted with Board approval; provided, that the aggregate
outstanding amount of all such loans at any time shall not exceed $1,000,000;

(i)     issue any debt, equity or other security to, or
borrow any money from, or accept any grants from, a competitor of the Company or
any of its Subsidiaries; 

(j)     purchase or redeem or pay or declare any dividend
(or in any way modify any dividend policy) or make any distribution on, any
shares of stock, except (i) for dividends payable by Subsidiaries of the Company
to the Company and (ii) that during the Initial Two Year Period the Company
shall be permitted to declare and pay dividends with Board approval in the event
that the Board determines that (A) the Company and its Subsidiaries are
generating positive cash flows and are expected to continue to generate positive
cash flows for at least the following twelve (12) months, and (B) after giving
effect to such dividend, the Company and its Subsidiaries would have cash
reserves sufficient to pay all of the Company’s
and its Subsidiaries’ current and anticipated obligations and liabilities
(including all costs and expenditures (including capital expenditures) related
to growth and expansion of the business of the Company and its Subsidiaries); 

- 28 - 

(k)     amend or modify in any way the terms or the rights,
  preferences, powers, privileges and restrictions, qualifications and limitations
of any Series A Preferred Stock; 

(l)     initiate or complete any Sale of the Company or an
Approved Sale or any issuance or sale of any ownership or equity interests of
any of the Company’s Subsidiaries or take any action which results in all or a
material portion of the assets of the Company or any of its Subsidiaries being
sold, leased, exchanged or conveyed in a single transaction or a series of
related transactions; 

(m)     sell, transfer, convey, lease or dispose of, outside
the ordinary course of business, any assets or properties of the Company or any
of its Subsidiaries, whether now or hereafter acquired, in any transaction or
series of related transactions; 

(n)     after the Initial Two Year Period, incur any debt,
borrow any money or assume or become liable for, directly or indirectly,
borrowed money or grant any security in its assets in respect of borrowed money
or make, directly or indirectly, loans or advances to, or give security for or
guarantee the indebtedness of, or otherwise give financial assistance to, any
Person; 

(o)     purchase equity interests of any Person or purchase
part or all of the assets of a Person outside the ordinary course of business or
enter into a partnership, joint venture or any other arrangement for the sharing
of profits with any Person other than in connection with research and
development collaborations entered into in the ordinary course of business; 

(p)     enter into any agreements or other arrangement with,
or make or agree to make any loan, advance or other payment to, any Orgenesis
Entity or any other Stockholder or any of their Subsidiaries or any director,
officer, employee or other affiliate or related party (or any family member or
affiliate thereof) of any of the foregoing; 

(q)     make payments, contribute capital or issue loans to
any Subsidiary of the Company that is not wholly-owned by the Company; 

(r)     take any action or omit to take any action that
would allow SFPI – FPIM SA to put, transfer or sell its equity interests in
MaSTherCell S.A. under that certain Subscription and Shareholders Agreement,
dated November 11, 2017, by and among Orgenesis, SFPI – FPIM SA and MaSTherCell
S.A.; or 

(s)     agree, commit or resolve to take or authorize any of
the foregoing actions. 

In the event the Company does not have sufficient funds to
operate the Business or meet its obligations at any time, and the Board has
elected to declare bankruptcy or appoint a receiver rather than raise additional capital by way of new financing
(whether by debt, equity or otherwise) to support the Company’s continued
operations, the Stockholders agree that Orgenesis, in its sole discretion and
without regard to the approval rights provided to GPP in this Section
3.5, may elect to provide such capital to the Company as it deems necessary
to conduct its Business and continue its operations, whether such capital is by
way of a loan or equity investment. 

- 29 - 

 3.6    
Right of Repurchase. 

(a)     General. Upon the termination of any
Management Holder’s employment or engagement with the Company and its
Subsidiaries for any reason (whether by the Management Holder or the Company or
one of its Subsidiaries and whether with or without Cause) (a
“Termination”) and in the event that an Additional Repurchase Event
occurs, the Company, GPP and Orgenesis will have the option to repurchase all or
any portion of the Management Holder Securities held by such Management Holder
(whether held by the Management Holder or one or more of its, his or her
Permitted Transferees) (“Management Holder Securities”) pursuant to the
terms and conditions set forth in this Section 3.6. 

(b)     Company’s Option. The Company may elect in
its sole discretion to purchase all or any portion of the Management Holder
Securities by giving written notice to the Management Holder or its, his or her
Permitted Transferees either (i) within 90 days following such Termination or
(ii) if an Additional Repurchase Event shall occur with respect to a Management
Holder, then within 90 days of the Board becoming aware of an Additional
Repurchase Event. Such notice will set forth the number and type of Management
Holder Securities to be acquired by the Company from such Management Holder, the
aggregate consideration to be paid for such Management Holder Securities, and
the time and place for the closing of such purchase. If such Management Holder
is a member of the Board at the time of such election, then Management Holder
will not have the right to vote with respect to such election or any other
matter relating to this Section 3.6. 

(c)     GPP’s and Orgenesis’s Option. If for any
reason the Company does not elect to purchase all of the Management Holder
Securities pursuant to Section 3.6(b), then each of GPP and Orgenesis may
at any time within 180 days following such Termination or the date on which the
Board becomes aware of an Additional Repurchase Event, elect in its sole
discretion to purchase its pro-rata portion of the Management Holder Securities
which the Company has not elected to purchase (provided, that if either
GPP or Orgenesis does not elect to purchase its full pro-rata portion of such
Management Holder Securities, then the other party may elect to purchase the
remaining amount of the other party’s pro-rata portion of such Management Holder
Securities that such other party did not elect to purchase) by giving written
notice to the Company and such Management Holder or its, his or her Permitted
Transferees. Such notice will set forth the number and type of Management Holder
Securities to be acquired by GPP or Orgenesis, as applicable, from such
Management Holder, the aggregate consideration to be paid for such Management
Holder Securities, and the time and place for the closing of such purchase. 

- 30 - 

(d)     Purchase Price. Unless otherwise approved by
a Supermajority of the Board, the purchase price for the Management Holder
Securities (the “Repurchase Price”) will be calculated as follows:

(i)     If a Termination occurs by reason of (A) such
Management Holder’s death or Disability or (B) such Management Holder’s
retirement at age 65 or older, or (C) termination of such Management Holder’s
employment by, or engagement with, the Company or any of its Subsidiaries
without Cause or by reason of such Management Holder’s resignation with Good
Reason, then the Repurchase Price will be the Fair Market Value of the
Management Holder Securities on the date of Termination; or 

(ii)     If (A) a Termination occurs by reason of such
Management Holder’s termination by the Company or any of its Subsidiaries for
Cause or by reason of such Management Holder’s resignation (other than with Good
Reason) or (B) upon the determination of a Supermajority of the Board that an
Additional Repurchase Event has occurred, then the Repurchase Price will be the
lesser of the Original Cost and the Fair Market Value of the Management Holder
Securities. 

(e)     Repurchase Closing. If the Company, GPP or
Orgenesis has elected to purchase any of the Management Holder Securities, then
the purchase of such Management Holder Securities pursuant to this Section 3.6
will be completed (the “Repurchase Closing”) at the Company’s principal
office, at 10:00 a.m., on the thirtieth (30th) day following the date
the Company, GPP or Orgenesis provides notice to the Management Holder that the
Company, GPP or Orgenesis, as the case may be, are purchasing any of the
Management Holder Securities or on such earlier day as designated by the
Company, in its sole discretion, upon not less than ten (10) days prior notice
to GPP, Orgenesis and the Management Holder. If such date is not a Business Day,
then the Repurchase Closing will occur at the same time and place on the next
succeeding Business Day. The Company and/or GPP and/or Orgenesis will pay for
the Management Holder Securities, at their respective options, by (a) delivery
of a cashier’s check or wire transfer of immediately available funds, or (b)
setoff against any and all obligations (to the extent of such obligations) owed
to the Company, its Subsidiaries, GPP, Orgenesis or any of their respective
Affiliates, as applicable, by Management Holder. The Company and/or GPP and/or
Orgenesis may rescind any exercise of their repurchase rights under this
Section 3.6 at any time prior to the Repurchase Closing. At the
Repurchase Closing, the Management Holder and any Holder shall deliver a
certificate or certificates representing the Management Holder Securities to be
purchased duly endorsed, or with stock powers duly endorsed, for transfer, and
such other documents as the Company, GPP or Orgenesis may reasonably request.
The Company, GPP and Orgenesis will be entitled to receive customary
representations and warranties regarding matters such as ownership, title and
authority to sell from the Holders regarding such sale, and to receive such
other evidence, including applicable inheritance and estate tax waivers, as may
reasonably be necessary to effect the purchase of the Management Holder
Securities to be purchased pursuant to Section 3.6. 

- 31 - 

(f)     Failure To Deliver Securities. If Management
Holder or any other Stockholder whose Management Holder Securities are to be
purchased pursuant to this Section 3.6 fails to deliver certificates
representing the Management Holder Securities and such other documents as the
Company, GPP or Orgenesis may reasonably request on the scheduled closing date
of such purchase, then the Company, GPP or Orgenesis may elect to deposit the
consideration representing the purchase price of the Management Holder
Securities with a third party (which may be the Company’s attorney, a bank or a
financial institution), as escrow agent. In the event of the foregoing election:
(i) such Management Holder Securities will be deemed for all purposes (including
the right to vote and receive payment for dividends) to have been transferred to
the Company, GPP or Orgenesis, as applicable; (ii) to the extent that such
Management Holder Securities are evidenced by certificates or other instruments,
such certificates or other instruments will be deemed canceled and the Company
will issue new certificates or other instruments in the name of GPP or
Orgenesis, as applicable; (iii) the Company will make an appropriate notation in
its stock ledger to reflect the transfer of such Management Holder Securities to
the Company, GPP or Orgenesis, as applicable; and (iv) the Person obligated to
sell such Management Holder Securities will merely be a creditor with respect to
such Management Holder Securities, with the right only to receive payment of the
purchase price, without interest, from the deposited funds. If, prior to the
third anniversary of the scheduled closing date as determined pursuant to this
Section 3.6, the proceeds of sale have not been claimed by such
Management Holder or other seller of the Management Holder Securities, then the
deposited funds (and any interest earned thereon) will be returned to the Person
originally depositing the same, and the transferors whose Management Holder
Securities were so purchased will look solely to the purchasers thereof for
payment of the purchase price, without interest. The escrow agent will not be
liable for any action or inaction taken by it in good faith. 

 3.7    
Irrevocable Proxy. Each Stockholder hereby constitutes and appoints GPP
with full power of substitution, as the proxy of the Stockholder with respect to
the election of persons as members of the Board in accordance with Section
3.4 hereof and votes regarding any Sale of the Company pursuant to
Section 3.2 hereof, and hereby authorizes GPP to represent and to vote,
if and only if the party (i) fails to vote or (ii) attempts to vote (whether by
proxy, in person or by written consent), in a manner which is inconsistent with
the terms of this Agreement, all of such party’s Securities in favor of the
election of persons as members of the Board determined pursuant to and in
accordance with the terms and provisions of this Agreement or the approval of
any Sale of the Company pursuant to and in accordance with the terms and
provisions of Sections 3.4 or 3.2, respectively, of this
Agreement. The proxy granted pursuant to the immediately preceding sentence is
given in consideration of the agreements and covenants of the Company and the
parties in connection with the transactions contemplated by this Agreement and,
as such, is coupled with an interest and shall be irrevocable unless and until
this Agreement terminates or expires. Each Stockholder hereby revokes any and
all previous proxies with respect to the Securities and shall not hereafter,
unless and until this Agreement terminates or expires, purport to grant any
other proxy or power of attorney with respect to any of the Securities, deposit
any of the Securities into a voting trust or enter into any agreement (other
than this Agreement), arrangement or understanding with any Person, directly or
indirectly, to vote, grant any proxy or give instructions with respect to the
voting of any of the Securities, in each case, with respect to any of the
matters set forth in this Agreement. 

- 32 - 

 3.8    
Information Rights.

(a)     The Company shall deliver to GPP and Orgenesis: 

(i)     within ninety (90) days after the end of each fiscal
year of the Company, unaudited copies (unless audited copies are available) of a
balance sheet as of the end of such year, statements of income and of cash flows
for such year, and a statement of stockholders’ equity as of the end of such
year, all prepared in accordance with GAAP; 

(ii)     within forty-five (45) days after the end of each
of the first three (3) quarters of each fiscal year of the Company, unaudited
statements of income and of cash flows for such fiscal quarter, and an unaudited
balance sheet and a statement of stockholders’ equity as of the end of such
fiscal quarter, all prepared in accordance with GAAP (except that such financial
statements may be subject to normal year-end audit adjustments and not contain
all notes thereto that may be required in accordance with GAAP); 

(iii)     beginning with the month ended October 31, 2018,
within fifteen (15) days of the end of each month, an unaudited income statement
for such month, and an unaudited balance sheet as of the end of such month, all
prepared in accordance with GAAP (except that such financial statements may be
subject to normal year-end audit adjustments and not contain all notes thereto
that may be required in accordance with GAAP); 

(iv)     with respect to the financial statements called for
in Section 3.8(a)(i), Section 3.8(a)(ii) and Section
3.8(a)(iii) an instrument executed by the chief financial officer or the
chief executive officer of the Company certifying that such financial statements
were prepared in accordance with GAAP consistently applied with prior practice
for earlier periods and fairly present the financial condition of the Company
and its Subsidiaries and their results of operation for the periods specified
therein; and 

(v)     such other information relating to the financial
condition, business, prospects, or corporate affairs of the Company and its
Subsidiaries as GPP may from time to time reasonably request. 

If, for any period, the Company has any
Subsidiary whose accounts are consolidated with those of the Company, then in
respect of such period the financial statements delivered pursuant to the
forgoing sections shall be the consolidated and consolidating financial
statements of the Company and all such consolidated Subsidiaries. 

(b)     The Company shall permit GPP to visit and inspect
the Company’s and any of its Subsidiaries’ properties; examine their books of
account and records; and discuss the Company’s and any of its Subsidiaries’
affairs, finances, and accounts with their officers, during normal business
hours of the Company and its Subsidiaries as may be reasonably requested by GPP.

- 33 - 

3.9     Orgenesis Right of First Refusal. 

(i)     Subject to Section 3.1(c), if during the
Initial Two Year Period GPP desires to Transfer Securities to any Person, then
GPP shall deliver written notice of such proposed Transfer to the Company and
Orgenesis. Such written notice (the “GPP Transfer Notice”) shall set
forth, in reasonable detail, the terms and conditions of such proposed GPP
Transfer, including the name of the prospective purchaser (including all parties
that directly or indirectly hold interests in the prospective purchaser), the
payment terms, the type of disposition, the number and type of Securities
proposed to be Transferred (“GPP Offered Securities”), the
proposed purchase price for the GPP Offered Securities on a per share basis (the
“GPP Offer Price”) and any other information reasonably requested by the
Company or Orgenesis with respect to such proposed GPP Transfer and the
prospective purchaser, together with a complete and accurate copy of the
prospective purchaser’s written offer to purchase the GPP Offered Securities
from GPP. The GPP Transfer Notice shall further state that Orgenesis may
acquire, in accordance with the provisions of this Agreement, the GPP Offered
Securities for the price and upon the other terms and conditions set forth in
the GPP Transfer Notice. 

(ii)     For a period of thirty (30) calendar days
after receipt of the GPP Transfer Notice (the “Orgenesis Option Period”),
Orgenesis may elect, by giving written notice to GPP, to purchase all or any
portion of the GPP Offered Securities at the GPP Offer Price and on the other
terms and conditions set forth in the GPP Transfer Notice. 

(iii)     The closing of the purchase of any GPP Offered
Securities pursuant to Section 3.9(ii) shall take place at the principal
office of the Company as soon as practical after the delivery of all applicable
election notices, but in no event later than the 30th calendar day after the
expiration of the Orgenesis Option Period. At such closing, Orgenesis shall
deliver to GPP the GPP Offer Price, on the same terms and conditions as set
forth in the GPP Transfer Notice, payable in respect of the GPP Offered
Securities in exchange for certificates duly endorsed representing the GPP
Offered Securities being acquired by such purchaser, together with stock powers,
free and clear of all claims, liens and other encumbrances. All of the foregoing
deliveries will be deemed to be made simultaneously and none shall be deemed
completed until all have been completed. 

(iv)     If all of the GPP Offered Securities are not
purchased by Orgenesis pursuant to Section 3.9(iii), then GPP may
Transfer all (but not less than all) of the remaining GPP Offered Securities to
the prospective purchaser identified in the GPP Transfer Notice in accordance
with the terms (including the purchase price) set forth in the GPP Transfer
Notice, within three (3) months after expiration of the Orgenesis Option Period.
Any of such GPP Offered Securities that have not been Transferred by GPP in such
three (3) month period shall again  be subject to the restrictions set
forth in this Section 3.9 and must be reoffered to Orgenesis pursuant to this Section 3.9 before any subsequent Transfer. 

- 34 - 

(v)     For the avoidance of doubt, the provisions of this
  Section 3.9 shall not apply (and shall not impact or restrict GPP’s or
  the Company’s ability to freely exercise its rights) in connection with a Sale
  of the Company or an Approved Sale that is contemplated pursuant to Section
3.2(b). 

(vi)     For the avoidance of doubt, the provisions of this
Section 3.9 shall not apply (and shall not impact or restrict any
Person’s ability to freely exercise its rights) in connection with a Permitted
Transfer. 

(vii)     Notwithstanding anything to the contrary contained
in this Agreement, only during the Initial Two Year Period and so long as a
Material Underperformance Event has not occurred, (i) a Transfer of Securities
by GPP pursuant to this Section 3.9 will not be valid or of any force or
effect if such Transfer would result in a violation or breach of any applicable
Federal or state securities law or any agreement to which the Company or any
Subsidiary is a party, (ii) the purchase price specified in any GPP Transfer
Notice must be payable solely in cash at the closing of the transaction or in
installments over time not to exceed two (2) years, (iii) no Permitted Transfer
by GPP shall be effective unless and until the transferee of the Securities so
Transferred, if such transferee is not a party to this Agreement, executes and
delivers to the Company a Joinder Agreement in substantially the form attached
hereto as Exhibit A, and (iv) GPP shall not avoid the provisions of this
Agreement by making one or more Transfers to one or more Permitted Transferees
and then disposing of all or any portion of such party’s interest in any such
Permitted Transferee. In addition, GPP agrees that only during the Initial Two
Year Period and so long as a Material Underperformance Event has not occurred
(x) certificates for shares of its common stock or other instruments reflecting
equity interests in such entity (and the certificates for shares of common stock
or other equity or ownership interests in any similar entities controlling such
entity) will note the restrictions contained in this Agreement on the
restrictions on Transfer as if such common stock or other equity or ownership
interests were Securities, (y) no shares of such common stock or other equity or
ownership interests may be issued or Transferred to any Person other than in
accordance with the terms and provisions of this Agreement as if such common
stock or other equity or ownership interests were Securities and (z) any
Transfer of such common stock or other equity or ownership interests shall be
deemed to be a Transfer of a pro-rata number of Securities hereunder subject to
the restrictions herein. GPP shall not Transfer Securities to a direct
competitor of the Company (unless otherwise agreed by Orgenesis);
provided, that for the avoidance of doubt, this sentence shall not apply
(and shall not impact or restrict GPP’s or the Company’s ability to freely
exercise its rights) in connection with a Sale of the Company or an Approved
Sale that is contemplated pursuant to Section 3.2(b). 

- 35 - 

 3.10    
Spin-Off. Following the earlier to occur of (a) a PCE and (b) the end of
a Trigger Notice Period, GPP shall have the right to effectuate a spin-off of
the Company and its Subsidiaries which, (i) in the event that a PCE has
occurred, reflects a fair market valuation of the Company and its Subsidiaries
as determined by one of the top ten (10) United States independent third party
accounting firms with experience in performing valuation services selected by
GPP in its sole discretion; provided, however, that if such
accounting firms do not provide such valuation services in the ordinary course
of their business as of the time such valuation is to be requested, then such
valuation shall be determined by a reputable, independent third party entity
that provides such valuation services as selected by GPP in its sole discretion,
or (ii) in the event that the Initial Two Year Period has ended and a PCE has
not occurred, reflects a fair market valuation of the Company and its
Subsidiaries of at least $50,000,000. Orgenesis and the Company shall take all
actions necessary or desirable in order to effectuate such spin-off (including
preparing and filing a registration statement in compliance with the 1933 Act
and the distribution and Transfer of Securities to any Persons). 

 3.11    
Put and Call Rights. 

(a)     Upon the occurrence of a PCE, GPP shall have the
right to: (i) sell the Securities held by GPP to Orgenesis (or if elected by
Orgenesis and only if the Company has the funds readily available that are
necessary to consummate such purchase, to the Company) pursuant to Section
3.11(b), after GPP provides at least five (5) Business Days written notice
to Orgenesis and the Company of its election to exercise such right (the “Put
Notice”), (ii) purchase all of the Securities owned by Orgenesis pursuant to
Section 3.11(c), after GPP provides at least five (5) Business
Days written notice to Orgenesis of its election to exercise such right (the
“Call Notice”), or (iii) take no action. In addition, in the event that
the shareholders of Orgenesis fail to duly and validly approve on or before
December 31, 2019, the Stockholders’ Agreement Terms in accordance with Nevada
law and in a manner that will ensure that GPP is able to exercise its rights
under this Agreement without any further action or approval by GPP, Orgenesis,
the shareholders of Orgenesis, or any other Person (collectively, “Proper
Approval” and the act of providing such Proper Approval shall be referred to
as “Properly Approved”), then GPP shall have the right to sell the Securities
held by GPP to Orgenesis (or if elected by Orgenesis and only if the Company has
the funds readily available that are necessary to consummate such purchase, to
the Company) pursuant to Section 3.11(b), after GPP provides a Put Notice
of its election to exercise such right. In the event Orgenesis elects that the
Company purchase Securities held by GPP pursuant to a Put Notice, Orgenesis
shall guarantee all payment obligations of the Company related to such purchase
and Orgenesis shall be responsible for all such payment obligations in the event
the Company does not promptly and fully satisfy such payment obligations in
accordance with Section 3.11(b). For the sake of clarity, the
terms “Proper Approval” and “Properly Approved” shall not include any secondary
or additional approval that may be required after the Proper Approval has been
obtained (and if such Proper Approval has been obtained, any secondary or
additional approval that may subsequently be required shall not cause the
Stockholders’ Agreement Terms to be deemed not Properly Approved by the
shareholders of Orgenesis). 

- 36 - 

(b)     Put Right Price and Mechanics. The price per
share of Series A Preferred Stock at which Orgenesis or the Company shall
purchase shares of Series A Preferred Stock from GPP pursuant to a Put Notice
(the “Put Price”) shall be equal to the fair market value of the Series A
Preferred Stock at the time the Put Notice is issued as determined by one of the
top ten (10) United States independent third party accounting firms selected by
GPP in its sole discretion; provided, however, that if such accounting
firms do not provide such valuation services in the ordinary course of their
business as of the time such valuation is to be requested, then the valuation
shall be determined by a reputable, independent third party entity that provides
such valuation services as chosen by GPP in its sole discretion; provided
further, that in no event shall the Put Price be (i) greater than the
Series A Original Issue Price (as defined in the Company’s Certificate of
Incorporation) applicable to each share of Series A Preferred Stock
multiplied by three (3) or (ii) less than the Series A Original Issue
Price (as defined in the Company’s Certificate of Incorporation) applicable to
each share of Series A Preferred Stock. 

(i)     Orgenesis or the Company, as applicable, shall,
pursuant to this Section 3.11(b), purchase all shares of Series A
Preferred Stock of GPP with a single cash payment within sixty (60) days after
the date that the Put Notice is submitted to the Company and Orgenesis (the date
of such payment shall be referred to herein as the “Put Date”). 

(ii)     If the Put Notice shall have been duly given and,
if on the applicable Put Date, the Put Price payable upon sale of the shares of
Series A Preferred Stock to be sold on such Put Date is paid or tendered for
payment or deposited with an independent payment agent so as to be available
therefore in a timely manner, then, notwithstanding that the certificates
evidencing any of the shares of Series A Preferred Stock subject to the sale
shall not have been surrendered, dividends with respect to such shares of Series
A Preferred Stock shall cease to accrue in favor of GPP after such Put Date and
all rights with respect to such shares shall forthwith after the Put Date
terminate with respect to GPP, except only the right of GPP to receive the Put
Price without interest upon surrender of GPP’s certificate or certificates
therefor. 

(c)     Call Purchase Price and Mechanics. The price
per share of the Securities that GPP shall purchase from Orgenesis pursuant to
Section 3.11(a)(ii) (the “Call Price”) shall be, before adjustment for
interest (if any) as described below, an amount equal to the fair market value
of such Securities as determined by one of the top ten (10) United States
independent third party accounting firms with experience in performing valuation
services selected by GPP in its sole discretion; provided,
however, that if such accounting firms do not provide such valuation
services in the ordinary course of their business as of the time such valuation
is to be requested, then the valuation shall be determined by a reputable,
independent third party entity that provides such valuation services as chosen
by GPP in its sole discretion. In no event shall GPP have the right to issue a
Call Notice and purchase the Securities held by Orgenesis or issue a Put Notice
and require Orgenesis to purchase the Securities of GPP after the third
(3rd) anniversary of the first occurrence of a PCE. 

- 37 - 

(i)     GPP shall, pursuant to this Section 3.11(c),
purchase all Securities of Orgenesis with a single cash payment within sixty
(60) days after the date of the Call Notice (the date of such payment shall be
referred to herein as the “Call Date”). 

(ii)     If the Call Notice shall have been duly given and,
if on the applicable Call Date, the Call Price payable upon sale of the
Securities to be sold on such Call Date is paid or tendered for payment or
deposited with an independent payment agent so as to be available therefore in a
timely manner, then, notwithstanding that the certificates evidencing any of the
Securities so called for sale shall not have been surrendered, dividends with
respect to such Securities shall cease to accrue in favor of Orgenesis after
such Call Date and all rights with respect to such Securities shall forthwith
after the Call Date terminate with respect to Orgenesis, except only the right
of Orgenesis to receive the Call Price without interest upon surrender of
Orgenesis’ certificate or certificates therefor. 

(iii)     GPP shall be permitted to assign its rights under
Section 3.11(a)(ii) and Section 3.11(c) to the Company, to an
Affiliate or a Permitted Transferee. 

 3.12    
Exchange Right. GPP shall have the right, at its option, to exchange its
Series A Preferred Stock for Orgenesis voting common stock (the “Exchange”). GPP
may provide written notice to Orgenesis of GPP’s election to exercise such right
(the “Exchange Notice”) which shall set forth the number of shares of
Series A Preferred Stock to be so exchanged. Within thirty (30) days of
Orgenesis’ receipt of the Exchange Notice, Orgenesis shall deliver to GPP a
number of shares of Orgenesis common stock equal to the lesser of: (a) (i) the
fair market value of the shares of GPP’s Series A Preferred Stock to be
exchanged as determined by one of the top ten (10) United States independent
third party accounting firms with experience in performing valuation services
selected by GPP and Orgenesis; provided, however, that if such
accounting firms do not provide such valuation services in the ordinary course
of their business as of the time such valuation is to be requested, then the
valuation shall be determined by a reputable, independent third party entity
that provides such valuation services as chosen by GPP and Orgenesis divided
by (ii) the average closing price per share of Orgenesis common stock during
the thirty (30) day period ending on the date that GPP provides the Exchange
Notice (the “Exchange Price”), and (b) (i) the value of the shares of
GPP’s Series A Preferred Stock to be exchanged assuming a value of the Company
equal to three and a half (3.5) times the revenue of the Company during the last
twelve (12) complete calendar months immediately prior to the Exchange
divided by (ii) the Exchange Price; provided, that in no event
will (A) the Exchange Price be less than a price per share that would result in
Orgenesis having an enterprise value of less than $250,000,000 (which is
equivalent to $18.48 per share based on the current outstanding shares of common
stock of Orgenesis) and (B) the maximum number of shares of Orgenesis common
stock issued pursuant to the Exchange shall not exceed 2,704,247 shares unless
Orgenesis obtains shareholder approval for the issuance of such greater amount
of shares of Orgenesis common stock in accordance with the rules and regulations
of the NASDAQ Stock Market. GPP and Orgenesis shall take all actions necessary
or desirable in order to effectuate such Exchange. For the sake of clarity, the
Exchange shall not be accompanied by the migration of any rights attached to the Series A Preferred Stock or
otherwise included in, or granted to GPP under, this Agreement. 

- 38 - 

ARTICLE 4 

REGISTRATION RIGHTS 

 4.1    
General. For purposes of this Article 4, (a) the terms “register”,
“registered” and “registration” refer to a registration effected by preparing
and filing a registration statement in compliance with the 1933 Act and the
declaration or ordering of effectiveness of such registration statement, and (b)
the term “Holder” means any Stockholder holding Registrable Securities.

 4.2    
Demand Registrations. 

(a)     Subject to Section 4.2(b), if the Company
shall receive a written request (specifying that it is being made pursuant to
this Section 4.2) from GPP that the Company file a registration statement
under the 1933 Act, or a similar document pursuant to any other statute then in
effect corresponding to the 1933 Act, covering the registration of at least
thirty percent (30%) of the Registrable Securities, then the Company shall (i)
if the Company previously completed a Public Offering at least ten (10) days
prior to the filing date give written notice to all other Holders of such
request in accordance with Section 4.3 and (ii) not later than 90 days
after receipt by the Company of a written request for a demand registration
pursuant to this Section 4.2 (except that such filing may be coordinated
with the close of the fiscal year of the Company), file a registration statement
with the SEC relating to such Registrable Securities as to which such request
for a demand registration relates and the Company shall use its commercially
reasonable efforts to cause all Registrable Securities of the same class that
Holders have requested be registered pursuant to Section 4.3, to be
registered under the 1933 Act. 

(b)     The GPP Holders shall be entitled to request, and
the Company shall be obligated to effect for the GPP Holders two (2)
registrations of Registrable Securities pursuant to this Section 4.2 on
any form other than S-3 and an unlimited number of registrations if the Company
is eligible to use Form S-3 for such registration; provided, that GPP may
not deliver such request until the later of (a) the end of the Initial Two Year
Period and (b) the occurrence of a Material Underperformance Event.
Notwithstanding the foregoing, GPP agrees to act in good faith (taking into
consideration the current situation of the Company) in exercising its rights
under this Section 4.2. 

 4.3    
Piggyback Registration. If, at any time after the Company completes a
Public Offering, the Company determines to register any of its Securities for
its own account or for the account of others under the 1933 Act in connection
with the public offering of such Securities, or if the Company registers any
Registrable Securities pursuant to Section 4.2, then the Company shall,
at each such time, promptly give each Holder written notice of such
determination no later than ten (10) days before its filing with the SEC;
provided, that registrations relating solely to Securities to be offered
by the Company (or other Person for whose account the registration is made) in
connection with any acquisition or stock option or stock purchase or savings
plan or any other benefit plan shall not be subject to this Section
4.3. Upon the written request of any Holder received by the Company within
ten (10) days after the giving of any such notice by the Company, the Company
shall use its commercially reasonable efforts to cause to be registered under
the 1933 Act all of the Registrable Securities of such Holder that each Holder
has requested be registered. If the underwriters of the proposed sale of
Registrable Securities determine that inclusion of all of the Registrable
Securities requested to be included in such sale would adversely affect the sale
of Securities by the Company, then the Company will include in such registration
only the number of Securities which in the opinion of such underwriters and the
Company would not adversely affect such sale in the following order: 

- 39 - 

(a)     first, the Securities of the Company; and 

(b)     second, the Registrable Securities requested to be
included by the Holders (including the GPP Holders) pro-rata based on the number
of Registrable Securities which each of them request be included in such
registration. 

 4.4    
Obligations of the Company. 

(a)    
Whenever required under Sections 4.2 or 4.3 to use its
commercially reasonable efforts to effect the registration of any Registrable
Securities, the Company shall: 

(i)     prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use its commercially
reasonable efforts to cause such registration statement to become and remain
effective, including, without limitation, filing of post-effective amendments
and supplements to any registration statement or prospectus necessary to keep
the registration statement current; provided, however, that if
such registration statement does not become effective, then any demand
registration pursuant to Section 4.2 prompting such undertaking by the
Company shall be deemed to be rescinded and retracted and shall not be counted
as, or deemed or considered to be or to have been, a demand registration
pursuant to Section 4.2 for any purpose; 

(ii)     prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the 1933 Act with respect to the disposition of all Securities
covered by such registration statement and to keep each registration and
qualification under this Agreement effective (and in compliance with the 1933
Act) by such actions as may be necessary or appropriate for a period of 90 days
after the effective date of such registration statement, all as requested by
such Holder or Holders; provided, however, that notwithstanding
anything in this Agreement to the contrary: (1) if a material development
regarding the Company occurs and the Company is advised by its counsel that
keeping the registration statement current would require the acceleration of
disclosure of such material development, then the Company shall not be obligated
to use its commercially reasonable efforts to keep the registration statement
effective or any prospectus current during the 180-day period following  the date of such development; and (2)
the Company shall not be required to use its commercially reasonable efforts to
keep the registration statement effective at any time after all Registrable
Securities included in such registration have been distributed; 

- 40 - 

(iii)     furnish to the Holders such numbers of copies of a
  prospectus, including a preliminary prospectus, in conformity with the
  requirements of the 1933 Act, and such other documents as they may reasonably
  request in order to facilitate the disposition of Registrable Securities owned
by them; 

(iv)     use its commercially reasonable efforts to register
and qualify the Securities covered by such registration statement under such
securities or “blue sky” laws of such jurisdictions as shall be reasonably
appropriate for the distribution of the Securities covered by the registration
statement, provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such jurisdiction, and further
provided that (anything in this Agreement to the contrary notwithstanding with
respect to the bearing of expenses) if any jurisdiction in which the Securities
shall be qualified shall require that expenses incurred in connection with the
qualification of the Securities in that jurisdiction be borne by selling
stockholders, then such expenses shall be payable by selling stockholders
pro-rata, to the extent required by such jurisdiction; 

(v)     notify each seller of Registrable Securities covered
by such registration statement, at any time when a prospectus relating thereto
is required to be delivered under the 1933 Act, upon discovery that, or upon the
happening of any event as a result of which, the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the
circumstances under which they were made, and, subject to Section
4.4(a)(ii), at the request of any such seller or Holder promptly prepare to
furnish to such seller or Holder a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such Securities, such prospectus shall not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances under which they were made; 

(vi)     otherwise use its commercially reasonable efforts
to comply with all applicable rules and regulations of the SEC, and make
available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least twelve months, but not more
than eighteen months, beginning with the first full calendar month after the
effective date of such registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the 1933 Act, and will furnish to
each such seller at least two Business Days prior to the filing thereof a copy
of any amendment or supplement to such  registration statement or prospectus
and shall not file any thereof to which any such seller shall have reasonably
objected, except to the extent required by law, on the grounds that such
amendment or supplement does not comply in all material respects with the
requirements of the 1933 Act; 

- 41 - 

(vii)     provide and cause to be maintained a transfer
  agent and registrar for all Registrable Securities covered by such registration
  statement from and after a date not later than the effective date of such
registration statement; and 

(viii)     use its commercially reasonable efforts to list
all Registrable Securities covered by such registration statement on any
securities exchange on which any class of Registrable Securities is then listed.

(b)     If the Company at any time proposes to register any
of its Securities under the 1933 Act, other than pursuant to a request made
under Section 4.2, whether or not for sale for its own account, and such
Securities are to be distributed by or through one or more underwriters, then
the Company will make commercially reasonable efforts, if requested by any
Holder who requests registration of Registrable Securities in connection
therewith pursuant to Sections 4.2 or 4.3, to arrange for such
underwriters to include such Registrable Securities among the Securities to be
distributed by or through such underwriters. 

 4.5    
Furnish Information. It shall be a condition precedent to the obligations
of the Company to take any action pursuant to Article 4 that the Holders
shall furnish to the Company such information regarding them, the Registrable
Securities held by them, and the intended method of disposition of such
Securities as the Company shall reasonably request and as shall be required in
connection with the action to be taken by the Company. 

 4.6    
Expenses of Registration. All reasonable expenses incurred by the Company
in connection with a registration pursuant to Sections 4.2 or 4.3
(excluding underwriters’ discounts and commissions, which shall be borne by the
sellers), including without limitation all registration and qualification fees,
printers’ and accounting fees, fees and disbursements of counsel for the Company
shall be borne by the Company; provided, however, that the Holders
requesting a demand registration pursuant to Section 4.2 may withdraw
such request, in which event so long as such Holders pay all expenses incurred
by the Company in connection with such requested registration, such withdrawn
request shall be deemed for all purposes in this Agreement not to have been
made. 

 4.7    
Underwriting Requirements. In connection with any registration of
Registrable Securities under this Agreement, the Company will, if requested by
the underwriters for any Registrable Securities included in such registration,
enter into an underwriting agreement with such underwriters for such offering,
such agreement to contain such representations and warranties by the Company and
such other terms and provisions as are customarily contained in underwriting
agreements with respect to such distributions, including, without limitation,
provisions relating to indemnification and contribution. The Holders on whose
behalf Registrable Securities are to be distributed by such underwriters shall
be parties to any such underwriting agreement, and the representations and
warranties by, and the other agreements on the part of, the Company to and for the benefit of such
underwriters shall be also made to and for the benefit of such Holders. Such
representations and warranties will be limited to matters that relate to such
Holders, such as due organization, authorization, no violation, title and
ownership and investor status. Such underwriting agreement shall comply with
Section 4.8. Such underwriters shall be selected (a) by the Company, in
the case of a registration pursuant to Section 4.3, or (b) by GPP in the
case of a registration pursuant to Section 4.2. 

- 42 - 

 4.8    
  Indemnification. In the event any Registrable Securities are included in
a registration statement under Article 4: 

(a)     To the fullest extent permitted by law, the Company
will indemnify and hold harmless each Holder requesting or joining in a
registration and its officers, directors, employees and agents and Affiliates,
and any underwriter (as defined in the 1933 Act) for it, from and against any
losses, claims, damages, expenses (including reasonable attorneys’ fees and
expenses and reasonable costs of investigation) or liabilities, joint or
several, to which they or any of them may become subject under the 1933 Act or
otherwise, insofar as such losses, claims, damages, expenses or liabilities (or
actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based on any untrue or alleged untrue statement of any
material fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto, or arise out of or are based upon the omission to state
therein a material fact required to be stated therein, or necessary to make the
statements therein not misleading, or arise out of any violation by the Company
of any rule or regulation promulgated under the 1933 Act applicable to the
Company and relating to action or inaction required of the Company in connection
with any such registration; provided, however, that the indemnity agreement
contained in this Section 4.8(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable to anyone for any
such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon an untrue statement or omission made in connection with such
registration statement, preliminary prospectus, final prospectus or amendments
or supplements thereto in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
such Holder, underwriter or control person. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such
Holder, underwriter or control person and shall survive the Transfer of such
Securities by such Holder. 

(b)     To the fullest extent permitted by law, each Holder
requesting or joining in a registration will severally and not jointly indemnify
and hold harmless the Company, each of its directors, each of its officers who
has signed the registration statement, each Person, if any, who controls the
Company within the meaning of the 1933 Act, and each agent and any underwriter
for the Company and any Person who controls any such agent or underwriter and
each other Holder and any Person who controls such Holder (within the meaning of
the 1933 Act) against any losses, claims, damages, expenses or liabilities to
which the Company or any such director, officer, control person, agent,
underwriter, or other Holder may become subject, under the 1933 Act or
otherwise, insofar as such  losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon an untrue
statement of any material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, or arise out of or are based upon the
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or omission was made
in such registration statement, preliminary or final prospectus, or amendments
or supplements thereto, in reliance upon and in conformity with written
information furnished by such Holder with respect to such Holder expressly for
use in connection with such registration; and such Holder will reimburse any
legal or other expenses reasonably incurred by the Company or any such director,
officer, control person, agent, underwriter, or other Holder in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, the indemnity obligation of each such Holder hereunder shall
be limited to and shall not exceed the proceeds actually received by such Holder
upon a sale of Registrable Securities pursuant to a registration statement
hereunder; and provided, further that the indemnity agreement contained in this Section 4.8(b) shall not apply to amounts paid in settlements effected
without the consent of such Holder (which consent shall not be unreasonably
withheld). Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of the Company or any such director,
officer, Holder, underwriter or control person and shall survive the Transfer of
such Securities by such Holder. 

- 43 - 

(c)     Any Person seeking indemnification under this
  Section 4.8 will (i) give prompt notice to the indemnifying party of any
  claim with respect to which it seeks indemnification (but the failure to give
  such notice will not affect the right to indemnification hereunder, unless the
  indemnifying party is materially prejudiced by such failure and then only to the
  extent of such prejudice) and (ii) unless in such indemnified party’s reasonable
  judgment a conflict of interest may exist between such indemnified and
  indemnifying parties with respect to such claim, permit such indemnifying party,
  and other indemnifying parties similarly situated, jointly to assume the defense
  of such claim with counsel reasonably satisfactory to the parties. In the event
  that the indemnifying parties cannot mutually agree as to the selection of
  counsel, each indemnifying party may retain separate counsel to act on its
  behalf and at its expense. The indemnified party shall in all events be entitled
  to participate in such defense at its expense through its own counsel. If such
  defense is not assumed by the indemnifying party, the indemnifying party will
  not be subject to any liability for any settlement made without its consent (but
  such consent will not be unreasonably withheld). No indemnifying party will
  consent to entry of any judgment or enter into any settlement which does not
  include as an unconditional term thereof the giving by the claimant or plaintiff
  to such indemnified party of a release from all liability in respect of such
  claim or litigation. An indemnifying party who is not entitled to, or elects not
  to, assume the defense of a claim will not be obligated to pay the fees and
  expenses of more than one counsel for all parties indemnified by such
  indemnifying party with respect to such claim, unless in the reasonable judgment
  of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with  respect to such claim, in which event
the indemnifying party shall be obligated to pay the reasonable fees and
expenses of such additional counsel. 

- 44 - 

(d)     If for any reason the
foregoing indemnification is unavailable to any party or insufficient to hold it
harmless as and to the extent contemplated by the preceding paragraphs of this
Section 4.8, then each indemnifying party shall contribute to the amount
paid or payable by the indemnified party as a result of such loss, claim, damage
expense or liability in such proportion as is appropriate to reflect the
relative benefits received by the Company, on the one hand, and the applicable
indemnified party, as the case may be, on the other hand, and also the relative
fault of the Company and any applicable indemnified party, as the case may be,
as well as any other relevant equitable considerations. 

(e)     The provisions herein are not exclusive and will not
limit any rights to indemnity, contribution or insurance proceeds which a party
may under any other agreement or instrument or provision of this Agreement. 

 4.9    
Suspension of Sales. Each Holder agrees that, upon receipt of written
notice from the Company of the happening of any event which results in the
prospectus included in any registration statement filed pursuant to the terms of
this Agreement includes an untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing,
such Holder will treat such information as confidential, will immediately
discontinue the disposition of Registrable Securities pursuant to such
registration statement until Holder’s receipt of the copies of a revised
prospectus and, if so directed by the Company, such Holder will deliver to the
Company all copies, other than permanent file copies then in Holder’s
possession, of the most recent prospectus covering such registered Common Stock.

 4.10    
Market Stand-Off Agreement. Each Stockholder agrees not to sell, make any
short sales of or otherwise Transfer or dispose of any Common Stock (or other
Securities) of the Company held by such Stockholder (other than Securities
included in the applicable registration statement or shares purchased in the
public market after the effective date of registration) or any interest or
future interest therein during such period (not to exceed 180 days) as may be
requested by the Company or the underwriters following the effective date of a
registration statement of the Company filed under the 1933 Act, which includes
Securities to be sold on the Company’s or a GPP Holder’s behalf to the public in
an underwritten offer. 

 4.11     Timing
Limitations. 

(a)     No request shall be made with respect to any
registration pursuant to Section 4.2 within six (6) months immediately
following the effective date of any registration statement filed by the Company.

(b)     If the Company shall furnish to the Holders
requesting a registration pursuant to Section 4.2 a certificate stating
that in the good faith judgment of the Company, undertaking such registration
would accelerate the disclosure of a material development involving the Company
or would otherwise be detrimental to the Company  or its Stockholders, then the Company
shall have the right to defer the filing of the registration statement for a
period of not more than one hundred twenty (120) days in any twelve-month period
and the demand then made shall not be counted for purposes of determining the
number of registrations pursuant to Section 4.2. 

- 45 - 

 4.12    
  Initial Public Offering. If a Supermajority of the Board approves a
  Public Offering, then the Stockholders shall take all necessary or desirable
  actions in connection with the consummation of the Public Offering including the
  execution of customary lock-up and similar agreements. In the event that such
  Public Offering is an underwritten offering and the managing underwriters advise
  the Company that in their opinion the Company's capital stock structure would
  adversely affect the marketability of the offering, each Stockholder shall
  consent to and vote for a recapitalization, stock split, reorganization and/or
  exchange of the Securities into Securities that the managing underwriters, the
  Board and GPP find acceptable (the “Recapitalization”) and shall take all
  necessary or desirable actions in connection with the consummation of the
  Recapitalization; provided that the resulting Securities reflect and are
  consistent with the rights and preferences of the Securities as of immediately
prior to such Recapitalization. 

ARTICLE 5 

OTHER COVENANTS 

 5.1    
Confidentiality. Each Stockholder recognizes and acknowledges that he,
she or it has and may in the future receive certain confidential and proprietary
information and trade secrets of the Company and its Subsidiaries and their
customers and suppliers (the “Confidential Information”), and that
such Confidential Information constitutes valuable, special and unique property
of the Company. The term Confidential Information will be interpreted to include
all information of any sort (whether merely remembered or embodied in a tangible
or intangible form) that is (a) related to the Company and its Subsidiaries or
their current or potential business, and (b) is not generally or publicly known.
Confidential Information includes, without limitation, the information,
observations and data obtained by any Stockholder during the course of his, her
or its ownership of Securities concerning the business and affairs of the
Company and its Affiliates, information concerning acquisition opportunities in
or reasonably related to the Company’s or its Subsidiaries’ business or
industry, the persons or entities that are current, former or prospective
suppliers, sales representatives or customers of the Company or its
Subsidiaries, methodologies and methods of doing business, strategic,
transition, marketing, sales and expansion plans, employee lists and telephone
numbers, new and existing products, services, prices and terms, customer
service, integration processes, requirements and costs of providing products and
services. The term Confidential Information shall also include all information
provided to a Stockholder in connection with a Participation Sale, an Approved
Sale or the issuance of New Securities. Each Stockholder agrees not to disclose
to any third party or use, either for his, her or its own account or for the
benefit of others, any Confidential Information without a Supermajority of the
Board’s prior written consent, unless and to the extent that (i) the
Confidential Information becomes generally known to and available for use by the
public other than as a result of such Stockholder’s acts or omissions or (ii)
such Stockholder can demonstrate that the Confidential Information was known to
such Stockholder prior to the date of such Stockholder’s first day of employment
or engagement with the Company or any of its affiliates (which may have been prior to the date of this
Agreement), (iii) the Confidential Information is learned by such Stockholder
after the date hereof from a third party who is not under an obligation of
confidence to the Company or its Subsidiaries or affiliates or parties with whom
the Company or its Subsidiaries does business or (iv) such Stockholder is
ordered by a court of competent jurisdiction to disclose Confidential
Information, provided that such Stockholder must (A) provide prompt written
notice to the Company of any relevant process or pleadings that could lead to
such an order and (B) cooperate with the Company to contest, object to or limit
such a request and, in any case, when revealing, such Confidential Information
to such court order. Stockholders may also disclose such information to their
accountants provided that such Stockholder shall cause each Person receiving
such Confidential Information to be informed that such Confidential Information
is strictly confidential and subject to this Agreement and to agree in writing
to not to disclose or use such information except as provided herein. Each
Stockholder acknowledges and agrees that all notes, records, reports, sketches,
plans, unpublished memoranda or other documents, whether in paper or electronic
form (and copies thereof), held by such Stockholder concerning any information
relating to the Company’s and its Subsidiaries’ business, whether confidential
or not, are the property of the Company and will be promptly delivered to it
upon the Company’s request. 

- 46 - 

 5.2    
  Noncompetition. Nothing in this Agreement shall derogate from, or limit,
  Orgenesis from conducting any business as it presently conducts or may conduct
  in the future (including, without limitation, business related to the
  manufacturing, researching, marketing, developing, selling and commercialization
  (either alone or jointly with Third Parties) products that are not directly
  related to the Business); provided, however, that during the Restricted
  Period, each Restricted Stockholder (including Orgenesis) shall not, directly
  anywhere in the Applicable Area (whether on its, his or her own account, or as
  an employee, director, consultant, contractor, agent, partner, manager, owner,
  operator or officer of any other Person, or in any other capacity) conduct the
  Business. Any activities or transactions conducted by Orgenesis with any Third
  Party which does not directly relate to Orgenesis as a CDMO business shall not
be deemed a violation of this Section 5.2 by Orgenesis. 

 5.3    
Nonsolicitation of Employees. During the Restricted Period, each
Stockholder shall not, directly or indirectly, in any manner (whether on its,
his or her own account, or as an employee, director, consultant, contractor,
agent, partner, manager, joint venturer, owner, operator or officer of any other
Person, or in any other capacity): (i) recruit, solicit or otherwise attempt to
employ or retain, or enter into any business relationship with, any current or
former employee of or consultant to the Company or any of its Subsidiaries that
was or is involved in the Business, (ii) hire or engage or otherwise retain or
enter into any business relationship with, any current or former employee of or
consultant to the Company or any of its Subsidiaries that was or is involved in
the Business, and (iii) induce or attempt to induce any current or former
employee of, or consultant to, the Company or any of its Subsidiaries, to leave
the employ of the Company or any such Subsidiary, or in any way interfere with
the relationship between the Company or any of its Subsidiaries and any their
employees or consultants that was or is involved in the Business;
provided, however that (a) a Stockholder may recruit, hire or engage
former employees and consultants to the Company and its Subsidiaries after such
former employees or consultants have ceased to be employed or otherwise engaged
by the Company or any of its Subsidiaries for a period of at least twelve (12)
months, (b) GPP Holders may recruit, hire or engage former employees and
consultants to the Company and its Subsidiaries after such former employees or consultants have (x) been terminated by the
Company or any of its Subsidiaries, as applicable, or (y) resigned their
employment or engagement with the Company or any of its Subsidiaries, as
applicable, without influence or encouragement by any GPP Holder, and (c)
Orgenesis may recruit, hire or engage those individuals as set forth in
Schedule 5.3 attached hereto or any individual who is terminated by the
Company at any time when GPP has appointed a majority of the members of the
Board. 

- 47 - 

 5.4    
  Nonsolicitation of Customers and Other Persons. During the Restricted
  Period, each Restricted Stockholder shall not, directly or indirectly, in any
  manner (whether on its, his or her own account, or as an employee, director,
  consultant, contractor, agent, partner, manager, joint venturer, owner, operator
  or officer of any other Person, or in any other capacity): (i) call upon,
  solicit or provide services to any Customer in order to sell any products,
  software or services that are the same as, or competitive with, those offered by
  the Business or (ii) in any way interfere with the relationship between the
  Company or any of its Subsidiaries and any Customer, supplier or other business
  relation (or any Person that such Restrictive Stockholder is aware is a
  prospective customer, supplier or other business relation) of the Company or any
  of its Subsidiaries as such relates to the Business (including, without
  limitation, by intentionally making any negative or disparaging statements or
  communications regarding the Company, any of its Subsidiaries or any of their
  operations, officers, directors or investors). Nothing in this Section
    5.4 will prohibit Orgenesis from engaging in any business that does not
violate Section 5.2 above. 

 5.5    
Enforcement. If, at the time of enforcement of any provision of
Section 5.1, 5.2, 5.3 or 5.4, a court shall hold
that the duration, scope or area restrictions stated therein are unreasonable
under circumstances then existing, the parties agree that the maximum duration,
scope or area reasonable under such circumstances shall be substituted for the
stated duration, scope or area and that the court shall be allowed to revise the
restrictions contained therein to cover the maximum period, scope and area
permitted by law. Because each Stockholder has access to proprietary information
and Confidential Information, the parties hereto agree that money damages would
not be an adequate remedy for any breach of any of the applicable Restrictive
Covenants. Therefore, in the event of a breach of any of the Restrictive
Covenants, the Company or any of its successors or assigns may, in addition to
other rights and remedies existing in their favor, obtain specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions hereof (without posting a bond or other security and without
proving actual damages).

 5.6    
Further Acknowledgments. In the event of a breach or violation by any
Stockholder of any applicable provision of Section 5.2, 5.3 or
5.4 (the “Restrictive Covenants”), the Restricted Period shall be tolled
until such breach or violation has been duly cured but in no event shall the
Restricted Period be tolled for more than twelve (12) months. The existence of
any claim or cause of action by any Stockholder against the Company or any of
its affiliates, whether predicated on this Agreement or otherwise, will not
constitute a defense to the enforcement by the Company of the applicable
provisions of any of Section 5.1 or the Restrictive Covenants which
Sections will be enforceable notwithstanding the existence of any breach by the
Company. Each Stockholder expressly agrees and acknowledges that the applicable
restrictions contained in the Restrictive Covenants do not preclude such
Stockholder from earning a livelihood, nor do they unreasonably impose
limitations on such Stockholder’s ability to earn a living. In addition, each Stockholder agrees and
acknowledges that the potential harm to the Company of the non-enforcement of
the applicable Restrictive Covenants outweighs any harm to such Stockholder of
its, his or her enforcement by injunction or otherwise. Each Stockholder
acknowledges that such Stockholder has carefully read this Agreement and has
given careful consideration to the restraints imposed upon such Stockholder, and
is in full accord as to their necessity for the reasonable and proper protection
of the Confidential Information. Each Stockholder expressly acknowledges and
agrees that (i) each and every restriction imposed by this Agreement is
reasonable with respect to subject matter and time period and such restrictions
are necessary to protect the Company’s interest in, and value of, the Company
(including, without limitation, the goodwill inherent therein), and (ii) the
Company would not have consummated the transactions contemplated herein without
the restrictions contained in the Restrictive Covenants. Each Stockholder
understands and agrees that the applicable restrictions and covenants contained
in the Restrictive Covenants are in addition to, and not in lieu of, any
non-competition, non-solicitation or other similar obligations contained in any
other agreements between such Stockholder and the Company. 

- 48 - 

 5.7    
  Investment Opportunities and Conflicts of Interest. Each Restricted
  Stockholder (other than Orgenesis) shall, and shall cause each of its Affiliates
  to, bring all investment or business opportunities to the Company of which any
  of the foregoing become aware and which are related to, complimentary with, or
  competitive with, the Business. The Stockholders expressly acknowledge that, (a)
  any of the Stockholders and their Affiliates (including their representatives
  serving on the Board), other than a Restricted Stockholder and their Affiliates
  (collectively, the “Permitted Investors”) are permitted to have, and may
  presently or in the future have, investments or other business relationships
  with entities engaged in the business engaged in by the Company and its
  Subsidiaries (including in areas in which the Company or any of its Subsidiaries
  may in the future engage in business), and in related businesses other than
  through the Company or any of its Subsidiaries (an “Other Business”), (b)
  the Permitted Investors have and may develop a strategic relationship with
  businesses that are and may be competitive with the Company or any of its
  Subsidiaries, (c) the Permitted Investors (including their respective
  representatives serving on the Board) will not be prohibited by virtue of their
  investments in the Company or its Subsidiaries or their service on the Board or
  the board of directors of any Subsidiary from pursuing and engaging in any such
  activities, (d) the Permitted Investors and Orgenesis (including their
  representatives serving on the Board) will not be obligated to inform the
  Company or the Board of any such opportunity, relationship or investment, (e)
  the other Stockholders will not acquire or be entitled to any interest or
  participation in any Other Business as a result of the participation therein of
  any of the Permitted Investors (including their respective representatives
  serving on the Board), (f) the involvement of the Permitted Investors (including
  their respective representatives serving on the Board) in any Other Business
  will not constitute a conflict of interest by such Persons with respect to the
  Company, any of its Subsidiaries, any of its Stockholders or any of their
  respective Affiliates and (g) the passive ownership by any Restricted
  Stockholder and its, his or her Affiliates of less than 1% of the stock of a
  publicly-held corporation whose stock is traded on a national securities
  exchange or in the over-the-counter market will not constitute a conflict of
  interest by such persons so long as neither the Restricted Stockholder nor its,
  his or her Affiliates have any active participation in the business of such
  company. For the sake of clarity, this Section 5.7 shall not prohibit
  Orgenesis from engaging in any business that does not violate Section 5.2
above. 

- 49 - 

 5.8    
Indemnification. Orgenesis shall be responsible for resolving, and shall
indemnify and hold the Company, GPP and their Affiliates harmless from and
against any and all liabilities, costs, expenses (including reasonable legal
fees and expenses), obligations, damages and losses suffered or incurred by the
Company, GPP or their Affiliates related to or arising out of, any disputes
with, or claims made by, any shareholder of Orgenesis or any other Person that
relate to or arise out of the execution of this Agreement, the Stock Purchase
Agreement, or any other Definitive Documentation, or any transaction
contemplated by or related to any of the foregoing, unless such liability, cost,
expense, obligation, damage, or loss was directly and solely caused by the gross
negligence, willful misconduct or bad faith of GPP or directly arises from an
untrue statement in a registration statement or prospectus which is based solely
on information about GPP that was specifically provided by GPP in writing to the
Company or Orgenesis for use in such registration statement or prospectus. In
connection with any such dispute or claim involving the Company, GPP or their
Affiliates, the Company, GPP or their Affiliates, as applicable, shall be
entitled to engage their own counsel and control the defense of such dispute or
claim, in each case at the sole expense of Orgenesis. 

 5.9    
Tech Transfer Agreement. The Company and Orgenesis have entered into a
Tech Transfer Agreement dated the date hereof (as amended from time to time, the
“Tech Transfer Agreement”). If, at the time that GPP exercises its
drag along rights set forth in Section 3.2(b), Orgenesis is a customer of
the Company or its Subsidiaries, the Tech Transfer Agreement is still in effect
and the tech transfer contemplated by the Tech Transfer Agreement has not
previously been effectuated, then GPP hereby agrees and undertakes to ensure
that the purchaser of the Company in such Approved Sale will cause the Company
to be bound by, and to comply with, the Tech Transfer Agreement. 

 5.10    
Insurance. The Company shall use its commercially reasonable efforts to
obtain, within ninety (90) days of the date hereof, from financially sound and
reputable insurers, Directors and Officers liability insurance in an amount and
on terms and conditions satisfactory to the Board and will use commercially
reasonable efforts to cause such insurance policies to be maintained until such
time as the Board determines that such insurance should be discontinued. Such
insurance policy shall not be cancellable by the Company without prior approval
by the Board. 

 5.11    
Orgenesis Shareholder Approvals. Orgenesis shall use its best efforts to
ensure that the Stockholders’ Agreement Terms are Properly Approved as soon as
possible after the Investment Date. In the event that the applicable laws of the
State of Nevada require Orgenesis to obtain an additional or secondary approval
of the Stockholders’ Agreement Terms from its shareholders, GPP shall have no
recourse or remedy of any kind against Orgenesis, the Company or any Subsidiary
and shall not be entitled to any indemnification under this Agreement for any
damages and or liability that GPP may incur as a result of such additional or
secondary approval. GPP hereby waives, and agrees not to bring any claims
against, Orgenesis, the Company or any of their respective Subsidiaries in the
event that applicable laws require Orgenesis to secure any additional or second
approval of the Stockholders’ Agreement Terms from its shareholders and that
Orgenesis, the Company and any of their Subsidiaries shall not have any
liability of any kind, including breach of this Agreement or any Definitive
Documentation for any Adverse Consequences (as defined in the Stock Purchase
Agreement) resulting from any such additional or second approval. GPP hereby
agrees and confirms that Orgenesis shall have no obligation to GPP of any kind with respect to any such additional or
secondary approval (including, without limitation, obtaining any proxies) except
for the obligation of Orgenesis to approach its shareholders for such approval.
For the avoidance of doubt, the parties to this Agreement do not believe or
expect that any secondary or additional approval of the Stockholders’ Agreement
Terms by the shareholders of Orgenesis shall be required for any reason after
Proper Approval of the Stockholders’ Agreement Terms has been obtained; provided, that if any such secondary or additional approval of the
Stockholders’ Agreement Terms shall be required by law, (a) the parties to this
Agreement shall work in good faith to obtain such approval (which shall include
Orgenesis using its best efforts to obtain such approval from its shareholders)
and (b) none of the rights or obligations of GPP or Orgenesis set forth in the
Definitive Documentation shall be impacted or restricted in any way. 

- 50 - 

 5.12    
  Stock Option Plan. The Stockholders hereby agree, approve, and adopt that
  certain Stock Option Plan, in the form attached hereto as Exhibit E (the
  “Stock Option Plan”), which provides for the reservation of an initial
  pool of 111,111 shares of Non-Voting Common Stock for issuance to individuals
pursuant to the terms of the Stock Option Plan. 

ARTICLE 6 

MISCELLANEOUS 

 6.1    
Entire Agreement; Amendment. 

(a)     This Agreement, and with respect to any Stockholder,
together with any Subscription Agreement or Purchase Agreement by and between
the Company and such Stockholder, sets forth the entire understanding of the
parties, and supersedes all prior agreements and all other arrangements and
communications, whether oral or written, with respect to the subject matter of
this Agreement. 

(b)     Any amendment to this Agreement shall be in writing
and shall require the written consent of (i) the Company, (ii) GPP, and (iii)
Orgenesis. 

(c)     Notwithstanding the foregoing provisions of this
Section 6.1, this Agreement may be terminated at any time after the
completion of a Public Offering or a Sale of the Company upon the written
consent of the Company and GPP. 

(d)     From and after the date that a Stockholder ceases to
own any Securities, such Stockholder will no longer be deemed to be a
Stockholder for purposes of this Agreement and all rights such Stockholder may
have under this Agreement will terminate. 

 6.2    
Purchase for Investment; Legend on Certificate. All the certificates (if
any) of Securities of the Company which are now or hereafter owned by the
Stockholders and which are subject to the terms of this Agreement shall be held
by the Company and have endorsed in writing, stamped or printed, thereon the
following legend: 

 THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD OR
TRANSFERRED, SOLD, PLEDGED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT UNLESS IN THE OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY AN EXEMPTION FROM REGISTRATION REQUIREMENTS OF THE
ACT AND SUCH SECURITIES LAWS IS AVAILABLE. THE SECURITIES REPRESENTED HEREBY ARE
ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS
AND CERTAIN OTHER AGREEMENTS SET FORTH IN A STOCKHOLDERS AGREEMENT BETWEEN THE
ISSUER AND THE OTHER SIGNATORIES THERETO. THE ISSUER RESERVES THE RIGHT TO
REFUSE THE TRANSFER OF THIS SECURITY UNTIL THE CONDITIONS THEREIN HAVE BEEN
FULFILLED WITH RESPECT TO SUCH TRANSFER. A COPY OF SUCH AGREEMENT MAY BE
OBTAINED BY THE HOLDER HEREOF AT THE ISSUER’S PRINCIPAL PLACE OF BUSINESS
WITHOUT CHARGE. 

- 51 - 

 6.3    
  Effectiveness of Transfers; Additional Stockholders. Any Person acquiring
  Securities (except for the Company and transferees acquiring Securities (a) in
  an offering registered under the 1933 Act or (b) in a Rule 144 Transaction) who
  is not a party to this Agreement shall, on or before the Transfer or issuance to
  it of Securities, (i) execute and deliver to the Company a Joinder Agreement in
  substantially the form attached hereto as Exhibit A (and, if the
  transferee is a married individual, cause the transferee’s spouse to execute and
  deliver to the Company a Spousal Consent) and (ii) in the event such Person is a
  Management Holder, within thirty (30) days after the date of such acquisition,
  make an effective election with the Internal Revenue Service under Section 83(b)
  of the Code in the form of Exhibit C attached hereto. No Securities shall
  be Transferred on the Company’s books and records, and no Transfer of Securities
  shall be otherwise effective, unless any such Transfer is made in accordance
  with the terms and conditions of this Agreement, and the Company is hereby
  authorized by all of the Stockholders to enter appropriate stop transfer
notations on its transfer records to give effect to this Agreement. 

 6.4    
Remedies. Each of the parties to this Agreement will be entitled to
enforce its rights under this Agreement specifically, to recover damages and
costs caused by any breach or threatened breach of any provision of this
Agreement and to exercise all other rights existing in such party’s favor.
Without limiting the foregoing, if any dispute arises concerning the Transfer of
any of the Securities subject to this Agreement or concerning any other
provisions of this Agreement, then the parties to this Agreement agree that an
injunction or other equitable relief may be issued in connection therewith
(without requirement to post a bond or other security and without proving actual
damages). Such remedies shall be cumulative and non-exclusive and shall be in
addition to any other rights and remedies the parties may have under this
Agreement or otherwise. If the Company (a) brings any action or proceeding to
enforce any provision of this Agreement or to obtain damages as a result of a
breach of this Agreement by any Stockholder or to enjoin any breach of this
Agreement by any Stockholder and (b) prevails in such action or proceeding, then
such Stockholder will, in addition to any other rights and remedies available to
the Company, reimburse the Company for any and all reasonable costs and expenses
(including attorneys’ fees) incurred by the Company in connection with such
action or proceeding. 

- 52 - 

 6.5    
Severability. Whenever possible, each term and provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any term or provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other term or provision of this Agreement or the validity or
enforceability of such term on provision in any other jurisdiction, and this
Agreement will be reformed, construed and enforced in such jurisdiction so as to
best give effect to the intent of the parties under this Agreement. 

 6.6    
Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing. Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly given (a) when delivered personally
to the recipient, (b) one Business Day after being sent to the recipient by
reputable overnight courier service (charges prepaid), electronic mail, or
facsimile transmission, or (c) four Business Days after being mailed to the
recipient by certified or registered mail, return receipt requested and postage
prepaid, and addressed to the intended recipient as set forth below: 

	 	If to the Company: 
	 	  
	 	Masthercell Global Inc. 
	 	c/o Pearl Cohen Zedek Latzer Baratz LLP 
	 	1500 Broadway 
	 	New York, NY 10036 
	 	Attention: Mark Cohen, Esq. 
	 	Fax: 646-878-0801 
	 	Email: vered.c@orgenesis.com 
	 	  
	 	with a copy to: 
	 	  
	 	Pearl Cohen Zedek Latzer Baratz LLP 
	 	1500 Broadway 
	 	New York, NY 10036 
	 	Attention: Mark Cohen 
	 	Fax: 646-878-0801 
	 	Email: MCohen@PearlCohen.com 
	 	  
	 	and 
	 	  
	 	c/o Great Point Partners, LLC 
	 	165 Mason Street, 3rd Floor 
	 	Greenwich, CT 06830 
	 	Attention: Noah Rhodes 
	 	Facsimile: (203) 971-3320 
	 	Email: nrhodes@gppfunds.com

- 53 - 

	 	with a copy to (as counsel for GPP) 
	 	  
	 	McDermott Will & Emery LLP 
	 	444 West Lake Street, Suite 4000 
	 	Chicago, Illinois 60606 
	 	Attention: Brooks Gruemmer 
	 	Facsimile: 312-984-7700 
	 	Email: bgruemmer@mwe.com 
	 	  
	 	and 
	 	  
	 	Orgenesis Inc. 
	 	20271 Goldenrod Lane 
	 	Germantown, MD 20876 
	 	Attention: Vered Caplan 
	 	Fax: 646-878-0801 
	 	Email: vered.c@orgenesis.com 
	 	  
	 	with a copy to: 
	 	  
	 	Pearl Cohen Zedek Latzer Baratz LLP 
	 	1500 Broadway 
	 	New York, NY 10036 
	 	Attention: Mark Cohen 
	 	Fax: 646-878-0801 
	 	Email: MCohen@PearlCohen.com 
	 	  
	 	If to Orgenesis: 
	 	  
	 	Orgenesis Inc. 
	 	20271 Goldenrod Lane 
	 	Germantown, MD 20876 
	 	Attention: Vered Caplan 
	 	Fax: 646-878-0801 
	 	Email: vered.c@orgenesis.com 
	 	  
	 	with a copy to: 
	 	  
	 	Pearl Cohen Zedek Latzer Baratz LLP 
	 	1500 Broadway 
	 	New York, NY 10036 
	 	Attention: Mark Cohen 
	 	Fax: 646-878-0801 
	 	Email: MCohen@PearlCohen.com

- 54 - 

	 	If to GPP: 
	 	  
	 	c/o Great Point Partners, LLC 
	 	165 Mason Street, 3rd Floor 
	 	Greenwich, CT 06830 
	 	Attention: Noah Rhodes 
	 	Facsimile: (203) 971-3320 
	 	Email: nrhodes@gppfunds.com 
	 	  
	 	with a copy to: 
	 	  
	 	McDermott Will & Emery LLP 
	 	444 West Lake Street, Suite 4000 
	 	Chicago, Illinois 60606 
	 	Attention: Brooks Gruemmer 
	 	Facsimile: 312-984-7700 
	 	Email: bgruemmer@mwe.com 

 If to the Stockholders, to the
respective addresses on file with the Company. 

Any party to this Agreement may change the address to which
notices, requests, demands, claims, and other communications hereunder are to be
delivered by giving the other parties to this Agreement notice in the manner
herein set forth. 

 6.7    
Binding Effect; Assignment; Termination. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and to their respective
heirs, representatives, successors and permitted assigns including Permitted
Transferees; provided, however, that the rights under this
Agreement may not be assigned except as expressly provided in this Agreement. No
such assignment shall relieve an assignor of its obligations hereunder.
Notwithstanding the foregoing, the Company shall be entitled to assign any of
its rights and obligations under Section 3.1 and Section 3.2 of
this Agreement to GPP or any of its Affiliates. This Agreement (other than
Article 4 (Registration Rights), Sections 5.1, 5.2,
5.3, 5.4, Article 6 (Miscellaneous) and all related defined
terms, all of which shall remain in effect) shall automatically terminate upon
the completion of a Public Offering in which the Preferred Stock has been
converted into Common Stock of the Company in accordance with the Company’s
Certificate of Incorporation. 

 6.8    
Action Necessary to Effectuate the Agreement. The parties hereto agree to
take or cause to be taken all such corporate and other action as may be
necessary to effect the intent and purposes of this Agreement. 

 6.9    
No Waiver. No course of dealing and no delay or failure on the part of
any party hereto in exercising any right, power or remedy conferred by this
Agreement shall operate or be construed as waiver thereof or otherwise effect
the right of such party thereafter to enforce each and every provision of this
Agreement in accordance with its terms. No single or partial exercise of any
rights, powers or remedies conferred by this Agreement shall preclude any other
or further exercise thereof or the exercise of any other right, power or remedy.

- 55 - 

 6.10    
Counterparts. This Agreement may be executed in one or more counterparts
(including by means of facsimile and electronic portable document format (PDF)),
each of which shall be deemed an original but all of which together will
constitute one and the same agreement. 

 6.11    
No Strict Construction. The parties hereto jointly participated in the
negotiation and drafting of this Agreement. The language used in this Agreement
will be deemed to be the language chosen by the parties hereto to express their
collective mutual intent, this Agreement will be construed as if drafted jointly
by the parties hereto, and no rule of strict construction will be applied
against any Person. 

 6.12    
Mutual Waiver of Jury Trial. THE COMPANY AND EACH STOCKHOLDER WAIVE THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OR RELATED TO THIS AGREEMENT IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR
ANY AFFILIATE OF ANY OTHER SUCH PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS,
TORT CLAIMS OR OTHERWISE. THE COMPANY AND EACH STOCKHOLDER AGREE THAT ANY SUCH
CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO
A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION,
COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE
THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT. 

 6.13    
Choice of Law; Exclusive Venue. THIS AGREEMENT, AND ALL ISSUES AND
QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
OF THIS AGREEMENT WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR
CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF DELAWARE OR ANY OTHER
JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION
OTHER THAN DELAWARE. THE PARTIES AGREE THAT ALL DISPUTES, LEGAL ACTIONS, SUITS
AND PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT MUST BE BROUGHT
EXCLUSIVELY IN A FEDERAL DISTRICT COURT LOCATED IN THE DISTRICT OF DELAWARE OR
THE DELAWARE COURT OF CHANCERY (COLLECTIVELY THE “DESIGNATED COURTS”).
EACH PARTY HEREBY CONSENTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
DESIGNATED COURTS. NO LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT MAY BE BROUGHT IN ANY OTHER FORUM. EACH PARTY HEREBY IRREVOCABLY
WAIVES ALL CLAIMS OF IMMUNITY FROM JURISDICTION AND ANY RIGHT TO OBJECT ON THE
BASIS THAT ANY DISPUTE, ACTION, SUIT OR PROCEEDING BROUGHT IN THE DESIGNATED
COURTS HAS BEEN BROUGHT IN AN IMPROPER OR INCONVENIENT FORUM OR VENUE. EACH OF
THE PARTIES ALSO AGREES THAT DELIVERY OF ANY PROCESS, SUMMONS, NOTICE OR
DOCUMENT TO A PARTY HEREOF IN COMPLIANCE WITH SECTION 6.6 OF THIS
AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR
PROCEEDING IN A DESIGNATED COURT WITH RESPECT TO ANY MATTERS TO WHICH THE
PARTIES HAVE SUBMITTED TO JURISDICTION AS SET FORTH ABOVE. 

- 56 - 

 6.14    
  Business Days. If any time period for giving notice or taking action
  hereunder expires on a day which is a Saturday, Sunday or legal holiday in the
  state in which the Company's chief-executive office is located, the time period
  shall automatically be extended to the business day immediately following such
Saturday, Sunday or legal holiday. 

 6.15    
Construction. Any reference in this Agreement to an “Article,” “Section”
or “Schedule” refers to the corresponding Article, Section or Schedule of or to
this Agreement, unless the context indicates otherwise. The headings of Articles
and Sections are provided for convenience only and should not affect the
construction or interpretation of this Agreement. All words used in this
Agreement should be construed to be of such gender or number as the
circumstances require. The terms “include” and “including” indicate examples of
a foregoing general statement and are not a limitation on that general
statement. Any reference to a statute refers to the statute, any amendments or
successor legislation, and all regulations promulgated under or implementing the
statute, as in effect at the relevant time. Any reference to a contract,
instrument or other document as of a given date means the contract, instrument
or other document as amended, supplemented and modified from time to time
through such date. 

* * * 

- 57 - 

STOCKHOLDERS’ AGREEMENT 

Counterpart Signature Page 

 The parties have executed and
delivered this Stockholders’ Agreement as of the date indicated in the first
sentence of this Agreement. 

	COMPANY: 
	 
	MASTHERCELL GLOBAL INC. 
	  	  
	By: 	 
    
	Its: 	  
	Name: 	  
	  	  
	GPP: 	  
	 	 
	GPP-II MASTHERCELL, LLC 
	 	 
	By: 	GREAT POINT PARTNERS II, L.P. 
	Its: 	Sole Member 
	 	 
	By: 	GREAT POINT PARTNERS II GP, LLC 
	Its: 	General Partner 
	 	 
	By:	 
	Its: 	  
	Name: 	  
	  	  
	ORGENESIS: 
	 
	ORGENESIS INC. 
	  	  
	By: 	 
    
	Its: 	  
	Name: 	  

[SIGNATURE PAGE TO STOCKHOLDERS’ AGREEMENT] 

STOCKHOLDERS’ AGREEMENT 

Counterpart Signature Page 

 The parties have executed and
delivered this Stockholders’ Agreement as of the date indicated in the first
sentence of this Agreement. 

	MANAGEMENT HOLDERS: 
	 
	 
	 
	 
	 
	 

[SIGNATURE PAGE TO STOCKHOLDERS’ AGREEMENT] 

EXHIBIT A 

FORM OF JOINDER AGREEMENT 

 The undersigned hereby agrees,
effective as of the date hereof, to become a party to that certain Stockholders’
Agreement (the “Stockholders’ Agreement”) dated as of
[_________________], 2018 and as may be amended from time to time by and among
Masthercell Global Inc. a Delaware corporation (the “Company”), and the
other parties named therein. Capitalized terms used but not defined in this
Joinder Agreement shall have the meanings ascribed to such terms in the
Stockholders’ Agreement. The undersigned acknowledges and agrees that (a) the
Securities Transferred to the undersigned shall continue to be subject to the
Stockholders’ Agreement, (b) as to such Securities the undersigned shall be
bound by the restrictions of the Stockholders’ Agreement and shall take such
other actions and execute such other documents as the Company reasonably
requests, and (c) for all purposes of the Stockholders’ Agreement, the
undersigned shall be included within the term “[GPP Holder / Management
Holder / Stockholder]” [and that the Securities Transferred to the
undersigned shall be included in the term “Restricted Securities.”] The
address and facsimile number to which notices may be sent to the undersigned are
as follows: 

	 	Name: 	 
	 	Address: 	 
	 	 	 
	 	Facsimile No: 	 
	 	 	 
	Date: ______________________		[Signature Block to be provided]
  

EXHIBIT B 

FORM OF SPOUSAL CONSENT 

 I acknowledge that I have read
the foregoing Stockholders’ Agreement and that I know its contents. I
acknowledge and agree that capitalized terms used and not defined in this
spousal consent shall have the meanings ascribed to such terms in the
Stockholders’ Agreement. I am aware that by the provisions of the Stockholders’
Agreement, my spouse agrees, among other things, to a right of first refusal, to
the granting of rights to purchase and to the imposition of certain restrictions
on the Transfer of Securities, including my community interest therein (if any),
which rights and restrictions may survive my spouse’s death. I hereby consent to
such rights and restrictions, approve of the provisions of the Stockholders’
Agreement, and agree that I will bequeath any interest which I may have in said
Securities or any of them, including my community interest, if any, or permit
any such interest to be purchased, in a manner consistent with the provisions of
the Stockholders’ Agreement. I direct that any residuary clause in my will not
be deemed to apply to my community interest (if any) in such Securities except
to the extent consistent with the provisions of the Stockholders’ Agreement.

 I further agree that in the
event of a dissolution of the marriage between myself and my spouse, in
connection with which I secure or am awarded any Securities or any interest
therein through property settlement agreement or otherwise, (a) I will receive
and hold said Securities subject to all the provisions and restrictions
contained in the Stockholders’ Agreement, including any option of the Company or
other Stockholders to purchase such shares or interest from me, and (b) I hereby
irrevocably constitute and appoint my spouse, as true and lawful attorney and
proxy (the “Proxy”) of my Securities with full power of substitution, to
vote (at any annual or special meeting or by written consent) such Securities
which I would be entitled to vote as a Stockholder, together with any and all
Securities issued in replacement or in respect of such Securities by dividend,
distribution, stock split, reorganization, recapitalization or otherwise. 

 I also acknowledge that I have
been advised to obtain independent counsel to represent my interests with
respect to this spousal consent. 

	Date:
      _____________________________	 
	 	 	 
	 	Name of Spouse: 	
	 	 	 
	 	Name of
      Stockholder: 	

EXHIBIT C 

FORM OF 83(b) ELECTION 

ELECTION TO INCLUDE SECURITIES IN GROSS 
INCOME
PURSUANT TO SECTION 83(b) OF THE 
INTERNAL REVENUE CODE 

The undersigned taxpayer hereby elects, pursuant to §83(b) of
the Internal Revenue Code of 1986, as amended, to include in gross income as
compensation for services the excess (if any) of the fair market value of the
shares described below over the amount paid for those shares. 

1. The name, taxpayer identification
number, address of the undersigned, and the taxable year for which this election
is being made are: 

	 	Name: _______________________________
	 	Social Security Number: 	 
	 	Address: 	 
	 	 	 
	 	Taxable Year: Calendar Year 	 

2. The property which is the subject of
this election is _________________shares of the Non-Voting Common Stock of
Masthercell Global Inc. a Delaware corporation (the “Company”). 

3. The property was transferred to the
undersigned on _______________, ____. 

4. The property is subject to the
following restrictions:

a.    
Restrictions on Transferability 
The Taxpayer may not sell, assign,
pledge, encumber, charge or otherwise transfer any of the shares without the
approval by the board of directors of the Company and in accordance with that
certain Stockholders’ Agreement, dated[_________________], 2018, by and among
the Company, the Taxpayer and the other parties thereto (the “Stockholders’
Agreement”). 

b.    
Forfeiture Restrictions
Pursuant to the terms of the Stockholders’
Agreement, if the Taxpayer’s employment or engagement with the Company and/or
its Subsidiaries is terminated for cause, or if Taxpayer resigns [without Good
Reason] or if the Taxpayer has breached certain covenants in the Stockholders’
Agreement or his or her employment or similar agreement, then the Company will
have the right to repurchase the shares at the lesser of $[_______________]
[Note to Form: Insert amount paid for shares of stock] and the fair market value
of the shares as of such date.

5. The fair market value of the
property at the time of transfer (determined without regard to any restriction
other than a nonlapse restriction as defined in §1.83 -3(h) of the Income Tax
Regulations) is: $[________________] [Note to Form: Insert amount paid for
shares of stock]. 

6. For the property transferred, the
undersigned paid $[__________________] [Note to Form: Insert amount paid for
shares of stock]. 

7. The amount to include in gross
income is $0.00. 

The undersigned taxpayer will file this
election with the Internal Revenue Service office with which taxpayer files his
or her annual income tax return not later than thirty (30) days after the date
of transfer of the property. A copy of the election also will be furnished to
the person for whom the services were performed.

	Taxpayer: 	
	 	 
	Dated: 	____________________________,
      ______________________

EXHIBIT D

APPROVED INITIAL BUDGET 

Please see attached. 

EXHIBIT E 

STOCK OPTION PLAN 

Please see attached. 

SCHEDULE 5.3 

	1. 	
      Noam Bercovich

	 	 
	2. 	
      Moshe Cohen

	 	 
	3. 	
      Moran Hod

	 	 
	4. 	
      Dana Fuchs-Telem

	 	 
	5. 	
      Moshe Lindner

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