Document:

Exhibit 10.26

 

PROMISSORY NOTE

 

	
  $339,000

  	
   

  	
   

  	
  Worcester, Massachusetts

  July 1, 2003

  

 

FOR VALUE RECEIVED, ADVANCED CELL TECHNOLOGY,
INC. a Delaware corporation (the “Maker”), promises to pay to the order of
PIERCE ATWOOD, a Maine general partnership (the “Holder”), the principal sum of
Three Hundred Thirty-Nine Thousand Dollars ($339,000), with interest at the
rate of ten percent (10%) per annum.  Payment
of this Note shall be made in lawful U.S. money in immediately available funds
to the Holder on the earlier of (1) the receipt by Maker of an infusion of
$2,000,000 or more in cash in any form, including without limitation loans,
equity investments in any form of capital stock or other security of the Maker,
license fees, proceeds of sale of any assets, sponsored research payments or
any other form of cash infusion, or (2) October 1, 2003.

 

The Maker may make prepayments of principal
due hereunder at any time and from time to time without payment of any penalty
or premium.  Any such prepayments shall
be applied, first, to any costs due hereunder to the Holder from the
Maker, second, to accrued interest and third, to unpaid
principal.

 

The Maker waives presentment, demand, notice
and protest and agrees to pay all costs of collection or attempted collection,
including reasonable attorneys’ fees.

 

This Promissory Note shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts.  If any provision of this Promissory Note is held
to be invalid or unenforceable, that provision shall be ineffective to the
extent of such prohibition or shall be modified to conform with applicable law,
without invalidating any other provisions of this Promissory Note.

 

	
  WITNESS:

  	
  MAKER:

  
	
   

  	
   

  
	
   

  	
  ADVANCED CELL TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Gunnar Engstrom

  	
   

  	
  By:

  	
  /s/ Michael West

  	
   

  
	
   

  	
  Its
  President

  	
  7-9-03Exhibit
10.27

 

PROMISSORY
NOTE

 

	
  Principal amount $$272,108.45

  	
   

  	
  Date: July 8, 2003

  

 

FOR VALUE RECEIVED, Advanced Cell Technology, Inc. (ACT) hereby
promises to pay to the order of Rothwell, Figg, Ernst & Manbeck, P.C.
(“Holder”) the sum of Two Hundred Seventy Two Thousand One Hundred Eight and
45/100 Dollars ($272,108.45), together with interest thereon at the rate of 5%
per annum on the unpaid balance from above date.  Said sum shall be paid in twelve monthly
installments according to the following schedule (or until interest and
principal are paid in full):

 

	
  •

  	
  August 1, 2003: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  September 1, 2003: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  October 1, 2003: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  November 1, 2003: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  December 1, 2003: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  January 1, 2004: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  February 1, 2004: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  March 1, 2004: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  April 1, 2004: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  May 1, 2004: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  June 1, 2004: 

  	
  $

  	
  25,000

  	
   

  
	
  •

  	
  July 1, 2004: 

  	
  The Balance

  	
   

  

 

Provided, however, that in the event that ACT receives payments from
Cyagra for partial reimbursement of Holder’s billings to ACT for legal fees and
expenses, then 50% of such payments promptly shall be paid to Holder and shall
be applied first to interest and then to principal.

 

All payments shall be first applied to interest and the balance to principal.  This note may be prepaid, at any time, in whole
or in part, without penalty.

 

This note shall at the option of Holder be immediately due and payable
upon the occurrence of any of the following;

 

1) Failure to make any payment due hereunder within five days of its
due date.

 

2) Upon the dissolution or liquidation of ACT or the acquisition of
forty percent (40%) or more of the voting shares of ACT by any other entity.

 

 

1

 

3) Upon the filing by ACT of an assignment for the benefit of
creditors, bankruptcy or other form of insolvency, or by suffering an
involuntary petition in bankruptcy or receivership not vacated within thirty
(30) days.

 

4) Upon receipt of an infusion of funds of at least $5,000,000 in any
form, including without limitation loans, equity investments in any form of
capital stock or other security of ACT, license fees, proceeds of sale of any
assets or any

other form of cash infusion, excluding sponsored research and government funded
grants.

 

In the event this note shall be in default and placed for collection,
then ACT agrees to pay all reasonable attorney fees and costs of collection.  Payments not made within five (5) days
of due date shall be subject to a late charge of 10% of said payment.  All payments hereunder shall be made to such
address as may from time to time be designated by Holder.

 

This note is not transferable by either party.

 

ACT agrees to remain fully bound until this note has been fully paid
and waive demand, presentment and protest and all notices hereto and further
agree to remain bound, notwithstanding any extension, modification, waiver, or
other indulgence or discharge or release of any obligor hereunder.  No modification or indulgence by Holder shall
be binding unless in writing; and any indulgence on any one occasion shall not
be an indulgence for any other or future occasion.  This note shall take effect as a sealed
instrument and shall be construed, governed and enforced in accordance with the
laws of the District of Columbia.

 

	
  Witnessed:

  	
   

  
	
   

  	
   

  
	
   

  	
  Advanced
  Cell Technology, Inc.

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Robin E.
  Menard

  	
   

  	
  /s/ Gunnar
  Engstrom

  	
   

  
	
  Witness

  	
  Gunnar
  Engstrom

  
	
   

  	
  Chief
  Financial Officer

  
				

 

2Exhibit 10.28

 

FORBEARANCE &
STOCK PURCHASE AGREEMENT

 

THIS FORBEARANCE & STOCK PURCHASE
AGREEMENT (this “Agreement”) is dated as of July 16,
1999, by and among AVIAN FARMS, INC.,
a Delaware corporation with a principal place of business at 295 Kennedy Memorial
Drive, Waterville, Maine 04903 (“Seller”), A.C.T. Group Inc.,
a Delaware corporation with a principal place of business at One Innovation
Drive, Worcester, Massachusetts 01605 (“Buyer”), ADVANCED
CELL TECHNOLOGY, INC., a Delaware corporation with a principal place
of business at One Innovation Drive, Worcester, Massachusetts 01605 (“ACT”),
and CIMA BIOTECHNOLOGY, INC., a Delaware
corporation with a principal place of business at 495 Animal Science/Veterinary
Building, 1988 Fitch Ave, University of Minnesota, 55108 (“CIMA,” and together
with ACT, collectively referred to herein as the “Companies”).

 

W I T N E S S E T H  T H A T:

 

WHEREAS, Seller is the owner and holder of
record of (i) all of the issued and outstanding capital stock of ACT, and (ii) ninety-five
(95%) percent of the issued and outstanding capital stock of CIMA; and

 

WHEREAS, Seller has been making inter-company
advances to the Companies to fund their operations since they were formed, and
the Companies collectively owe Seller in excess of $2,000,000 as a result of
such inter-company advances; and

 

WHEREAS, upon and subject to the terms and
conditions hereinafter set forth, Seller desires to sell to Buyer, and Buyer
desires to purchase from Seller eighty percent (80%) of all of Seller’s shares
of capital stock in each of the Companies;

 

NOW, THEREFORE, in consideration of the
mutual covenants and conditions set forth below, and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereto agree as follows:

 

1.                                       Forbearance.  The parties hereto acknowledge and agree that
(i) Seller has made advances to or on behalf of ACT and CIMA in excess of
$2,000,000, (ii) Seller has committed to continue making inter-company
advances to support ACT and CIMA through the close of business on July 16,
1999 as hereinafter provided, and (iii) ACT and CIMA are obligated to
repay the aggregate amount of such advances to Seller (collectively, the “Inter-Company
Advances”).  Seller hereby agrees to
forbear from taking any actions to collect the Inter-Company Advances and from
exercising any remedies with respect to the Inter-Company Advances from and
after the date of the Closing until the earlier of (A) the second
anniversary date of the Closing, or (B) the date ACT secures an aggregate
of at least two million seven hundred eightyseven thousand ($2,787,000) dollars
in Equity Funding (as hereinafter defined). 
In consideration for such forbearance, the Companies covenant and agree
as follows:

 

 

(a)                                  At
the Closing, ACT shall execute and deliver a promissory note to Seller in the
amount of one million seven hundred eighty-seven thousand ($1,787,000) dollars
(“ACT’s Note”).  Seller agrees to accept
ACT’s Note in full payment and satisfaction of the Inter-Company Advances and
the terms of ACT’s Note shall include the following: (i) interest shall
accrue at a rate of ten (10%) percent per annum, and (ii) all principal
and accrued interest shall be due and payable upon the earlier of (A) the
second anniversary date of the Closing, or (B) the date ACT receives an
aggregate of at least two million seven hundred eighty-seven thousand
($2,787,000) dollars in Equity Funding. For the purposes of this Agreement, the
term “Equity Funding” shall include any investment in and/or payment to ACT in
exchange for common stock, preferred stock, convertible debt, subordinated debt
with attendant conversion options and/or warrants, or any other instrument or
certificate with characteristics substantially similar to any of the foregoing;
provided, however, that Equity Funding shall not include any bank
loan, capitalized lease, sale/leaseback or similar commercial financing.  For the purposes of illustration only, if ACT
receives $2,500,000 in Equity Funding six months after the Closing and an
additional $287,000 in Equity Funding nine months after the Closing, ACT shall
be deemed to have received an aggregate of $2,787,000 in Equity Funding as of
the date nine months after the Closing and ACT’s Note will become automatically
due and payable in full.  ACT’s Note
shall be in a form and substance reasonably acceptable to Buyer and Seller.

 

(b)                                 ACT
agrees to pay Seller fifty percent (50%), up to an aggregate amount of eight
million dollars ($8,000,000), of any and all license fees, license maintenance
fees, up-front fees, success fees, royalties or milestone payments, minimum
annual payments, or other revenues received in connection with sublicenses
(however such sublicenses may be characterized) or other agreements relating to
the use of ACT’s Intellectual Property, after netting payments made to the
University of Massachusetts (“University”) as required under the Exclusive
License Agreement between ACT and the University dated April 16, 1996, as
amended, such payments to be made when and as such funds are received. For
example, if ACT receives a license fee of $100,000, it will be obligated to pay
to Seller $41,000 ($100,000 - $18,000 x 50%). 
ACT shall not be obligated to make any such payments to Seller in
respect of (1) payments made in consideration for the issuance of equity
or debt securities of ACT at fair market value, and (2) payments
specifically committed to budgeted research or development of such products or
services (so-called “sponsored research”).

 

(c)                                  The
Companies hereby grant to Seller a right of first negotiation to acquire any
license or any other collaboration or partnering agreement that the Companies
(or any one of them) propose to enter into in connection with the development,
manufacture, use or sale of Agricultural Products or Services (as defined
below) in the avian field (i.e., poultry and other bird species)
utilizing the Companies’ Intellectual Property. 
ACT or CIMA, as the case may be, shall notify Seller of its intention to
enter into such license,

 

2

 

collaboration or partnering agreement.  Seller shall then have a period of thirty
(30) days to notify the Companies in writing of its willingness to enter into
such transaction.  If Seller so notifies
the Companies, then Seller and ACT or CIMA shall negotiate in good faith for
not more than thirty (30) days.  If, by
the end of such thirty (30) day period Seller and ACT or CIMA have not reached
agreement, ACT or CIMA, as the case may be, shall be free to enter into such transaction,
but only on terms no more favorable to the other party as were offered to
Seller.

 

(d)                                 Subject
to the rights previously granted to Cyagra, LLC, a Delaware limited liability
company, as of the effective date of this Agreement, the Companies hereby grant
to Seller a right of first negotiation to acquire from the Companies an
exclusive license to develop, make, use and sell Agricultural Products or
Services utilizing any of the Companies’ Intellectual Property.  ACT or CIMA, as the case may be, shall notify
Seller of its intention to license such Agricultural Products or Services
utilizing the Companies’ Intellectual Property (the “License Notice”).  Seller shall have thirty (30) days from
receipt of the License Notice to exercise an option (the “Negotiation Right”)
to negotiate with ACT or CIMA for an exclusive license to develop, make, use
and sell such Agricultural Products or Services utilizing the Companies’
Intellectual Property (the “Option License”). 
In the event that Seller exercises the Negotiation Right pursuant to the
preceding sentence, then Seller and ACT or CIMA shall negotiate in good faith
for a period of not re more than thirty (30) days the Option License.  If, at the end of such 30-day period, Seller
and ACT or CIMA, as the case may be, have not reached agreement on the terms of
such Option License, then ACT or CIMA, as the case may be, shall thereafter be
free to enter into an agreement with any third party regarding such
Agricultural Products or Services utilizing the Companies’ Intellectual
Property on terms no more favorable to such third party as were offered to
Seller.

 

(e)                                  The
Companies hereby grant to Seller, for the later of 15 years or the date on
which all of the Companies’ Patent Rights (as defined below) have expired, the
exclusive, worldwide right to market and sell all Agricultural Products or
Services in the avian field developed or manufactured by the Companies.  The Companies agree to pay Seller fees to be
agreed upon by the parties, after good faith negotiation, for the sale of such
products or services; provided, however, that such fees shall be at least as
favorable to Seller as the fees provided for in other agreements relating to
the sale of other Agricultural Products or Services based on the Companies
Intellectual Property.

 

For purposes of this Agreement “Intellectual
Property” means (1) any and all patents and patent applications which are
useful, necessary or required for the development, manufacture or production of
Agricultural Products or Services owned by or licensed to the Companies as of
the date of the Closing, together with reissues, extensions (or other
governmental acts which effectively extend the period of exclusivity by the
patent holder), substitutions, confirmations, registrations, revalidations,
additions, continuations, continuations-in-part, divisions, or foreign
counterparts of or to the foregoing patent rights, and any patents infringing
such patents or by

 

3

 

patents issued, if any, from such patent applications (the “Patent
Rights”), and (2) the following which are owned or controlled by the
Companies and which are useful, necessary or required for the development,
manufacture or production of Agricultural Products or Services: confidential information,
knowledge and data, included but not limited to inventions (whether patentable
or not), trade secrets, ideas, designs, drawings, know-how, processes,
techniques and like technical information, as well as any process described
within the Patent Rights described herein (all of which are referred to herein
as the “Technology”) as of the date of the Closing, together with such
Technology that would infringe the Patent Rights.

 

For purposes of this Agreement “Agricultural
Products or Services” means food (i.e., something of nutritional value)
or fiber, or products that are intended to be used in, or are useful for, the
production of food or fiber, produced or developed by or for animals or of
animal origin and the rendering of services that relate to the production or
development of such products.  Specifically
excluded from the definition of Agricultural Products or Services are “nutraceuticals”
(i.e., any food or other preparation intended for oral consumption by humans
whose primary function when taken into the human body, (a) services to
nourish or build up tissues or supply energy and/or (b) maintains,
restores or supports adequate nutritional status or nutritional metabolic
function).

 

2.                                       Purchase of
Shares.  Subject to the terms and
conditions set forth in this Agreement, at the Closing, Seller agrees to sell,
transfer and assign to Buyer, and Buyer agrees to purchase from Seller:

 

(a)                                  Two
hundred forty thousand (240,000) shares of the Common Stock, .001 par value, of
ACT (the “ACT Common Shares”);

 

(b)                                 Four
million (4,000,000) shares of Series A Preferred Stock, .001 par value, of
ACT, together with Seller’s rights under that certain Investor’s Rights
Agreement dated December 31, 1998, with respect to such shares
(collectively, the “ACT Preferred Shares”); and

 

(c)                                  Seven
hundred sixty (760) shares of the Common Stock, $.01 par value, of CIMA (the “CIMA
Shares,” and together with the ACT Common Shares and the ACT Preferred Shares,
collectively referred to herein as the “Shares”).

 

3.                                       Purchase
Price.  The consideration from Buyer
to Seller for the Shares shall be as follows:

 

(a)                                  At
the Closing, Buyer shall execute and deliver its promissory note to Seller in
the amount of one million ($1,000,000) dollars (“Buyer’s Note”), the terms of
which shall include the following: (i) interest shall accrue at a rate of
ten (10%) percent per annum, and (ii) all principal and accrued interest
shall be due and payable upon the earlier of (A) the second anniversary
date of the Closing, or (B) the date ACT secures an

 

4

 

aggregate of at least two million seven
hundred eighty-seven thousand ($2,787,000) dollars in Equity Funding; Buyer’s
Note shall be in a form and substance reasonably acceptable to Buyer and
Seller;

 

(b)                                 From
and after the Closing, Buyer shall use its best efforts to obtain at least two
million seven hundred eighty-seven thousand ($2,787,000) dollars of Equity
Funding for the benefit of ACT.

 

UNTIL ACT’S NOTE AND BUYER’S NOTE HAVE BEEN
PAID IN FULL, BUYER COVENANTS AND AGREES NOT TO SELL, TRANSFER, PLEDGE,
HYPOTHECATE, OR OTHERWISE ENCUMBER THE SHARES.

 

4.                                       Closing.  The closing of the transactions contemplated
by this Agreement (the “Closing”) shall take place at the offices of Pierce
Atwood, One Monument Square, Portland, Maine, at 10:00 a.m. local time on July 29,
1999, or at such other time and place as the parties shall mutually agree (the “Closing
Date”).

 

5.                                       Representations
and Warranties of Seller.  Seller
represents and warrants the following to Buyer as of the date hereof and as of
the Closing:

 

(a)                                  Ownership
of Shares.  Seller is the owner and
holder of record of the Shares, free and clear of all liens, liabilities,
limitations, restrictions, options, warrants, rights of purchase, security
interests, mortgages, pledges and encumbrances of any kind or nature
whatsoever, except for a certain lien of Fleet Bank which shall be released at
or prior to the Closing but in no event later than July 29, 1999.

 

(b)                                 Liabilities.  Seller represents and warrants that as of the
time of the Closing, neither ACT nor CIMA shall have any liabilities which
would be required to be reflected on the balance sheets of ACT and CIMA,
respectively, as of the time of the Closing under generally accepted accounting
principles, with the exception of liabilities relating to Dr. Stice, Dr. Robl,
Infigen Inc. and Trans-Ova, Inc. referred to in paragraph 10(a) below,  and liabilities of CIMA to Dr. Ponce de
Leon and the University of Minnesota referred to in paragraph 10(b) below.

 

6.                                       Representations
and Warranties of Buyer.  Buyer
represents and warrants the following to Seller as of the date hereof and as of
the Closing:

 

(a)                                  Organization,
Power.  Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has the power and right to enter into and perform this Agreement.

 

(b)                                 Authority:
No Violation.  The execution and
delivery of this Agreement by Buyer and the consummation by Buyer of the
transactions contemplated by this Agreement have been duly and validly
authorized by all necessary corporate action on the part of

 

5

 

Buyer. 
This Agreement constitutes legal, valid, and binding obligations of
Buyer, enforceable against Buyer in accordance with its terms and conditions.  Neither the execution and delivery of this
Agreement, nor the consummation of the transactions contemplated by this
Agreement, nor compliance by Buyer with any of the provisions of this
Agreement, will:

 

(i)                                     Result
in the breach of any of the terms or conditions of, or constitute a default
under, Buyer’s current Articles of Incorporation or Bylaws, or any contract,
agreement, lease, commitment, indenture, mortgage, pledge, note, bond, license,
or other instrument or obligation to which Buyer is now a party or by which
Buyer may be bound or affected; or

 

(ii)                                  Result
in a violation by Buyer of any federal, state, or local law, rule, or
regulation, or any order, writ, injunction or decree of any court,
administrative agency, governmental body or arbitration tribunal.

 

(c)                                  Agreement
Not in Breach of Other Instruments.  The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not result in the breach of any of the terms
or conditions of, or constitute a default under, any contract, agreement,
lease, commitment, indenture, mortgage, pledge, note, bond, license, or other
instrument or obligation to which Buyer is now a party.

 

(d)                                 Brokers
and Finders.  Neither Buyer nor any
of Buyer’s officers, directors or employees has employed any broker or finder
or incurred any liability for any brokerage fees, commissions or finders’ fees
in connection with the transactions contemplated hereby.

 

(e)                                  Accredited
Investor Status.  BUYER UNDERSTANDS
THAT ITS INVESTMENT IN THE COMPANY IS ILLIQUID AND INVOLVES A HIGH DEGREE OF
SPECULATIVE RISK.  Buyer is an “accredited
investor” (as that term is used in the Securities Act of 1933, as amended (the “Securities
Act”) and the Rules and Regulations thereunder).

 

(f)                                    Independent
Investigation; Access.  Buyer, in
making the decision to purchase the Shares, has relied upon independent
investigations made by Buyer, and Buyer has, prior to any sale to it, been
given access and the opportunity to examine all material books and records of
the Companies, all material contracts and documents relating to this sale and
an opportunity to ask questions of, and to receive answers from, Seller and the
Companies concerning the terms and conditions of this safe, and to obtain any
additional information to the extent Seller or the Companies possess such
information or can acquire it without unreasonable effort or expense.

 

Buyer has been
furnished with all materials relating to the business, finances and operation
of the Companies and materials relating to the offer and sale of the Shares
that has been requested.  Buyer has
received complete and satisfactory answers to any such inquiries.

 

6

 

Notwithstanding
any thing to the contrary contained herein, the representations and warranties
set forth in this paragraph 6(f) shall become effective at and as of the
Closing.

 

(g)                                 Adequacy
of Investigation.  Bayer acknowledges
that it is purchasing the Shares after what Buyer deems to be adequate investigation
of the business, finances and prospects of the Companies by Buyer.  Notwithstanding anything to the contrary
contained herein, the representations and warranties set forth in this
paragraph 6(g) shall become effective at and as of the Closing.

 

(h)                                 No
Governmental Recommendation or Approval.  Buyer understands that no federal or state
agency has passed on or made any recommendation or endorsement of the Shares.

 

(i)                                     Shares
Not Registered: Indefinite Holding.  Buyer
has been advised by Seller, and understands, that Buyer must bear the economic
risk of an investment in the Shares for an indefinite period of time because
the Shares have not been registered under the Securities Act, and Seller and
the Companies are under no obligation to register the Shares.  Therefore, the Shares must be held by Buyer
unless they are subsequently registered under the Securities Act or an
exemption from such registration is available for the transfer of the Shares.

 

(j)                                     Purchase
for own Account.  Buyer represents
that the Shares are being acquired solely for Buyer’s own account for
investment and not with a view toward, or for resale in connection with, any “distribution”
(as that term is used in the Securities Act and the Rules and Regulations
thereunder) of all or any portion thereof.

 

(k)                                  No
Disposition of Shares Without Securities Law Compliance.  Buyer agrees not to subdivide the Shares or
to offer, sell, pledge, hypothecate or otherwise transfer or dispose of any of
the Shares in the absence of an effective registration statement under the
Securities Act covering such disposition, or an opinion of counsel,
satisfactory to the Companies and their counsel, to the effect that
registration under the Securities Act is not required in respect of such
transfer or disposition.

 

(l)                                     Stop-Transfer
and Legends on Certificates.  Buyer
further understands that a stop-transfer order will be placed on the
stock-transfer books of the Company respecting the certificates evidencing the
Shares, and such certificates shall bear, until such time as the Shares, as the
case may be, shall have been registered under the Securities Act or shall have
been transferred in accordance with such an opinion of counsel, the following
legend or one substantially similar thereto:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT

 

7

 

UNDER SAID ACT, OR AN AVAILABLE EXEMPTION
THEREUNDER.

 

plus any legend that may be required under
any applicable state law.

 

(m)                               Reliance
on Representations.  Buyer
understands that the offer and sale of the Shares are not being registered
under any federal or state security laws in reliance on the so-called “private
offering” exemption provided by the Securities Act and/or Regulation D
promulgated pursuant to the Securities Act and the exemptions provided by
Sections 402(b)(l) and (b)(9) of Chapter 110A of the General Laws of
Massachusetts, and that Seller is basing its reliance on such exemptions in
part on the representations, warranties, statements and agreements contained
herein.

 

7.                                       Conduct Prior
to Closing.  Seller covenants and
agrees that between the date of this Agreement and the Closing, except as otherwise
consented to by Buyer:

 

(a)                                  Operation
of Businesses.  Seller shall not take any action to cause (i) ACT’s
and/or CIMA’s businesses to be operated in any manner other than in the
ordinary course, consistent with past practices, (ii) any of the assets of
ACT or CIMA to be encumbered, sold or otherwise disposed of, except in the
ordinary course, and (iii) any distribution of any kind or character for
the benefit of the holders of the capital stock of ACT or CIMA to be made or
declared.  Furthermore, Seller will not
in connection with the Companies, without the prior written consent of Buyer:

 

(i)                                     grant
any increase in the rate of pay of any of the Companies’ employees, grant any
increase in the salaries of any of the Companies’ officers, employees or
agents, enter into or increase the benefits provided under any bonus,
profit-sharing, incentive compensation, pension, retirement, medical,
hospitalization, life insurance or other insurance plan or plans, or other
contracts or commitments, or in any other way increase in any amount the
benefits or compensation of any such officer, employee or agent except,
however, ordinary merit increases not unusual in character or amount made in
the ordinary course of the business to employees who are not officers,
directors or stockholders;

 

(ii)                                  enter
into any employment contract or collective bargaining agreement;

 

(iii)                               enter
into any contract or commitment or engage in any transaction which is not in
the ordinary course of the business or which is inconsistent with past
practices;

 

(iv)                              make,
or enter into any contract for, any material capital expenditure or enter into
any material lease of capital equipment or real estate;

 

8

 

(v)                                 create,
assume, incur or guarantee any indebtedness other than (i) in the ordinary
course of the business and with a maturity date of less than one year or (ii) that
was incurred pursuant to existing contracts disclosed to Buyer;

 

(vi)                              except
as may otherwise be provided by paragraph 9(b) hereof, make any amendments
to or changes in its articles or certificate of incorporation or association or
bylaws; or

 

(vii)                           perform
any act, or attempt to do any act, or permit any act or omission to act, which
will cause a breach of any material contract, commitment or obligation to which
the Companies are parties.

 

(b)                                 ACT’s
Operating Liabilities.  Seller shall
fund all operating liabilities of ACT incurred in the ordinary course of ACT’s
business consistent with past practices, including any costs of defending the
Infigen Suit (but not funding any settlement or compromise thereof), which are
incurred prior to the close of business on July 15, 1999.

 

(c)                                  Preservation
of Business.  Seller shall carry on the
Companies’ business diligently and substantially in the same manner as
heretofore conducted and shall keep the Companies’ business organizations
intact, including its present employees and present relationships with vendors
and customers and others having business relations with the Companies.

 

7-A.                         Transition
Matters.

 

(a) Employees:
Benefits.  Buyer and Seller
acknowledge that individuals performing work for CIMA and ACT have heretofore
been employees of Seller.  Effective as
of July 16, 1999, all said individuals performing work for ACT and/or CIMA
will be terminated as employees of Seller. 
ACT and CIMA, as the case may be, shall thereupon employ said
individuals and shall provide all insurance and benefits, including health
insurance, except as required by law with respect to so-called COBRA rights of
employees.  As of July 16, 1999 said
individuals shall be removed from coverages from insurance and other benefit
plans heretofore made available as employees of Seller.

 

(b) Insurance.  ACT and CIMA have been listed as named or
additional insureds on insurance policies maintained by Seller.  As of the time of the Closing, ACT and CIMA
will be removed as named or additional insureds from insurance policies
maintained by Seller, and ACT and CIMA shall be responsible for procuring and
maintaining their own insurance, including property, commercial general
liability, automobile, workers’ compensation, umbrella, commercial property,
boiler & machinery, employer practices liability, director &
officer liability, fiduciary, and other insurance, in the sole discretion of
ACT and CIMA,

 

9

 

employer practices liability, director & officer liability, fiduciary, and other
insurance, in the sole discretion of ACT and CIMA.

 

(c) Bank
Accounts.  ACT currently has the
following three bank accounts:

 

(i)                                     KeyBank
Account 1903 1400 3012 (a zero-balance account tied into Seller’s other bank
accounts);

 

(ii)                                  KeyBank
Account 1903 1400 2030 (the “operating account”); and

 

(iii)                               Flagship
Bank account.

 

Seller will fund and utilize the account
referenced in clause (i) above for checks issued on or before the time of
the Closing to pay ACT expenses, and ACT will not independently utilize that
account.  After all outstanding checks
have cleared, that account will be closed. 
The bank accounts referred to in clauses (ii) and (iii) above
will, as of the time of the Closing, be solely for use by ACT.

 

CIMA currently
has the following bank account: KeyBank Account 1903 1400 2048.  Seller will fund and utilize said account for
checks issued on or before the time of the Closing to pay CIMA expenses, and
CIMA will not independently utilize that account.  After all outstanding checks have cleared,
that account will be closed.

 

8.                                       Conditions to
Buyer’s Obligation to Close.  The
obligation of Buyer to consummate the transaction contemplated hereby is
subject to the fulfillment (or waiver by Buyer) prior to or at the Closing of
each of the following conditions:

 

(a)                                  Representations,
Warranties and Covenants of Seller.  Seller
shall have complied in all material respects with all of its agreements and
covenants contained herein to be performed at or prior to the Closing, and all
the representations and warranties of Seller contained herein shall be true in
all material respects on and as of the Closing Date with the same effect as
though made on and as of the Closing Date.

 

(b)                                 Delivery
of Stock Certificates.  Seller shall
have delivered to Buyer all stock certificates representing the Shares,
accompanied by a stock power assigning and transferring the Shares in
accordance with the provisions of this Agreement.

 

(c)                                  Cyagra.  Seller’s interest in Cyagra, LLC, a Delaware
limited liability company, shall have been assigned to ACT in accordance with
the Operating Agreement of Cyagra, LLC and the Assignment and Reassignment
Agreement attached hereto as Exhibit A.

 

10

 

(d)                                 Cash
in Rank Account.  As of the Closing
Date, ACT shall have two hundred and eighty-five thousand ($285,000) dollars in
its KeyBank checking account (acct. no. 1903 1400 2030).

 

(e)                                  No
Legal Restraints, No statute, rule, regulation or order of any court or
administrative agency shall be in effect which restrains or prohibits Seller
from consummating the transactions contemplated hereby.

 

(f)                                    Capitalization.  Immediately prior to the Closing, (i) Seller
shall be the owner and holder of record of all of the capital stock of ACT, and
(ii) Seller shall be the owner and holder of record of ninety-five (95%)
percent of the capital stock of CIMA.  As
of the date of execution of this Agreement, F. Abel Ponce de Leon shall be the
owner and holder of record of the remaining five (5%) percent of the capital
stock of CIMA.  Except as otherwise
disclosed on Schedule 8(f) attached hereto, there shall be no
options, warrants, or rights of purchase, conversion or exchange of any kind or
nature whatsoever with respect to any of the Companies’ capital stock.

 

(g)                                 Insurance.  All insurance premiums payable as of the Closing
with respect to ACT’s, and CIMA's (if there is such a policy on the date
hereof), directors and officers insurance shall have been paid and the Buyer
shall have received assurances to its satisfaction that appropriate directors’
and officers’ insurance or other insurance is in place with respect to all or a
portion of the liabilities set forth in paragraph 10(a)(iii) or that
appropriate claims have been filed with respect to such liabilities.

 

(h)                                 Taxes.  All tax returns (including information
returns) and reports which ACT and CIMA are required to file prior to the
Closing pursuant to federal, state, or local law shall have been filed, and all
federal, state and local taxes, assessments and other governmental charges owed
by ACT or CIMA as of the Closing shall have been paid.

 

(i)                                     No
Material Adverse Change.  There shall
have been no material adverse change, actual or threatened, in the Companies’
business (including relationships with customers or vendors for any reason),
whether or not covered by insurance, as a result of any cause whatsoever.

 

(j)                                     Opinion
of Counsel.  Buyer shall have
received from Pierce Atwood, counsel to Seller, an opinion of such counsel,
dated the Closing Date, solely to the effect that this Agreement has been duly
authorized by Seller, ACT and CIMA.

 

(k)                                  No
Lawsuits.  No suit, action or other
proceeding or investigation shall be threatened or pending before or by any
Court or Government concerning this Agreement or the consummation of the
transactions contemplated hereby, or in connection with any claim against
Seller not disclosed herein.  No
Government shall have threatened or directed any request for information
concerning this Agreement, the transaction contemplated

 

11

 

hereby or the consequences or implications of
such transaction to Buyer or Seller, or any officer, director, employee or
agent of either of them.

 

(l)                                     Consents.  All consents and approvals necessary to
enable Seller, ACT and CIMA to carry out the agreements of each contained
herein shall have been obtained.

 

(m)                                Releases.  Prior to the Closing Date, Seller shall have
delivered to Buyer the written release of all Liens relating to the Shares,
executed by the holder of or parties to each such Lien.  The releases shall be satisfactory in
substance and form to Buyer and its counsel.

 

(n)                                 Due
Diligence.  Buyer shall be satisfied
in all respects with the results of its due diligence review of the Seller, the
Shares, the Companies and the Companies business condition, including without
limitation customer, vendor, and other third person relationships and tort,
corporate, product liability, employee benefits, taxation and insurance
matters.

 

9.                                       Condition to
Seller’s Obligation to Close.  The
obligation of Seller to consummate the transactions contemplated hereby is
subject to the fulfillment (or waiver by Seller) prior to or at the Closing of
each of the following conditions:

 

(a)                                  Representations,
Warranties and Covenants of Buyer.  Buyer
shall have complied in all material respects with all of its agreements and
covenants contained herein to be performed at or prior to the Closing, and all
the representations and warranties of Buyer contained herein shall be true in
all material respects on and as of the Closing Date with the same effect as
though made on and as of the Closing Date.

 

(b)                                 Board
Representation and Pre-Emptive Rights. 
All actions shall have been taken which Seller reasonably determines is
necessary to guarantee that Seller will, for so long as Seller in the owner and
holder of record of any of the Companies’ capital stock, have (i) at least
one seat on the board of directors of each of the Companies, and (ii) pre-emptive
rights to acquire its pro rata share of any capital stock offered by either of
the Companies after the Closing.  Notwithstanding
the foregoing, (A) Seller’s rights under the immediately preceding
sentence shall terminate with respect to ACT upon the occurrence of either of
the following: (I) an initial public offering of ACT’s common stock, or (II)
any sale by Buyer of any of the Shares which results in more than fifty percent
of ACT’s issued and outstanding capital stock being owned or controlled by a
third party which is not an affiliate of Buyer, and (B) Seller’s rights
under the immediately preceding sentence shall terminate with respect to CIMA
upon the occurrence of either of the following: (I) an initial public offering
of CIMA’s common stock, or (II) any sale by Buyer of any of the Shares which
results in more than fifty percent of CIMA’s issued and outstanding capital
stock being owned or controlled by a third party which is not an affiliate of
Buyer

 

12

 

shall have the option of requiring that all
or a portion of its shares of the applicable Companies’ capital stock be
purchased as part of the same transaction, for the same consideration per
share, and otherwise on the same terms and conditions, upon which Buyer is
selling its shares.

 

(c)                                  No
Legal Restraints.  No statute, rule or
regulation or order of any court or administrative agency shall be in effect
which restrains or prohibits Buyer from consummating the transactions
contemplated hereby.

 

10.                                 Liabilities.

 

(a)                                  Buyer
acknowledges and agrees that immediately after the Closing, the liabilities of
ACT shall include the following:

 

(i)                                     ACT’s
Note;

 

(ii)                                  Any
and all liabilities of ACT to Steven L. Stice and James Robl arising before,
after, or by reason of the Closing;

 

(iii)                               Any
liability of ACT arising out of Infigen, Inc. v. Advanced Cell Technology,
Inc. and Steven L. Stice, No. 98 C 0431 C (W.D. Wisconsin June 19,
1998), and Advanced Cell Technology, Inc. v. Paul Golueke and Infigen, Inc.,
pending in Worcester, Massachusetts, or the subject matter of either of them
(collectively, the “Infigen Suit”); and

 

(iv)                              Any
liability of ACT to Trans-Ova, Inc., up to $213,389 (but excluding regular
monthly payments by ACT to Trans-Ova, in the approximate amounts of $7,000-$10,000
per month, accrued through the close of business on July 16, 1999, which will
be paid by Seller).

 

(b)                                 Buyer
acknowledges and agrees that immediately after the Closing, the liabilities of
CIMA shall include the following:

 

(i)                                     Any
and all liabilities of CIMA to F. Abel Ponce de Leon arising before, after, or
by reason of the Closing; and

 

(c)                                  Any
liability of CIMA to the University of Minnesota.

 

13

 

11.                                 Indemnification.

 

(a)                                  By
Seller.  Seller agrees to defend, indemnify and hold Buyer, Buyer’s
officers, directors, agents, representatives, subsidiary and parent entities
and affiliates and Buyer’s successors and assigns, harmless from and against
any claim, liability, expense, loss or other damage (including, without
limitation, reasonable attorneys’ fees and expenses) (“Claims”) in respect of
any and all Claims resulting from any misrepresentation or breach of warranty
or violation of any covenant or agreement made by Seller hereunder, or in any
agreement furnished or to be furnished by Seller hereunder.

 

(b)                                 By
Buyer.  Buyer agrees to defend, indemnify and hold Seller, Seller’s
officers, directors, agents, representatives, subsidiary and parent entities
and affiliates and Seller’s successors and assigns, harmless from and against
any Claims in respect of any and all Claims resulting from any
misrepresentation or breach of warranty or violation of any covenant or
agreement made by Buyer hereunder, or in any agreement furnished or to be
furnished by Buyer hereunder.

 

(c)                                  Indemnification
Procedures.

 

(i)                                     In
the event any third party makes a claim or commences any action or proceeding
against the Buyer with respect to any matter as to which the Buyer intends to
seek indemnification under paragraph 11 (a), or against the Seller with respect
to any matter as to which the Seller intends to seek indemnification under
paragraph 11(b), the party to be so indemnified (the “Indemnified Party”) shall
promptly notify the party from which such indemnification is to be sought (the “Indemnifying
Party”) of the existence of such claim or the commencement of such action or
proceeding.

 

(ii)                                  The
Indemnifying Party shall be entitled at any time to participate in (but not
direct, except as otherwise provided in paragraph 11(c)(iii) below) the
defense of any such claim, action, or proceeding with counsel of its own
choice, and the parties agree to cooperate fully with one another in connection
with the defense and/or settlement thereof.

 

(iii)                               Subject
to the rights of any insurance company under any policy of insurance covering
Buyer or Seller with respect to the claim, action, or proceeding in question,
Seller and Buyer shall each have the right, upon receipt of notice from the
other party of the existence of such claim or the commencement of any such
third-party action or proceeding, to undertake and direct the defense of such
claim, action, or proceeding at any time by delivering to the other party a
written notice of such undertaking. In the event Seller or Buyer, as the case
may be, declines to undertake the defense of any such claim, action, or
proceeding when first notified thereof, the defending party shall keep the
other party advised as to the current

 

14

 

status and progress thereof.  The defending party agrees not to make any
offer of settlement without first having provided five days’ advance written
notice thereof to the other party and obtained the written approval of the
other party.  The non-defending party
shall be entitled to participate in (but not direct) the defense of any such
claim, action or proceeding with counsel of its own choice, and the parties
agree to cooperate fully with one another in connection with the defense and/or
settlement thereof.  From and after
delivery of written notice to undertake the defense of any such claim, action,
or proceeding as provided herein, the defending party shall be relieved of the
obligation to reimburse the non-defending party for any other legal,
accounting, or other out-of-pocket costs and expenses thereafter incurred by
the non-defending party with respect to the defense of such claim, action, or
proceeding notwithstanding any participation by the non-defending party
therein.

 

12.                                 Survival of
Representations and Warranties.  The
representations and warranties of Seller and Buyer set forth in this Agreement
shall survive the Closing.

 

13.                                 Termination If
any condition specified in paragraph 8 of this Agreement is not satisfied and
such condition is not waived by Buyer, Buyer may terminate this Agreement by
giving written notice to Seller at or prior to the Closing Date.  If any condition specified in paragraph 9 of
this Agreement is not satisfied and such condition is not waived by Seller,
Seller may terminate this Agreement by giving written notice to Buyer at or
prior to the Closing Date.  If this
Agreement is terminated pursuant to this Section, all further obligations of
the parties under this Agreement will terminate; provided, however, that if
this Agreement is terminated by a party because of the willful breach of the
Agreement by the other party or because one or more of the conditions to the
terminating party’s obligations under this Agreement is not satisfied as a
result of the other party’s willful failure to comply with its obligations
under this Agreement, the terminating party’s right to pursue all legal
remedies will survive such termination unimpaired.

 

14.                                 Notices.  Any notice relating in any way to this
Agreement and of any of the transactions contemplated hereunder shall be in
writing and shall be delivered by hand or sent by facsimile transmission or by
national overnight delivery or by Registered or Certified mail addressed as
follows:

 

To Seller:                               Avian
Farms, Inc.

285 Kennedy Memorial Drive

Waterville, Maine

Attn: Pichet Laokasem

(Fax: 207-861-3581)

 

15

 

With Copy to:                                                                    James
B. Zimpritch, Esq.

Pierce Atwood

One Monument Square

Portland, Maine 04101

(Fax: 207-791-1350)

 

To Buyer:                                                                                           A.C.T.
Group Inc.

One Innovation Drive

Worcester, Massachusetts 01605

Attn: Michael West

(Fax: 508-756-0931)

 

With Copy to:                                                                    Palmer &
Dodge LLP

One Beacon Street

Boston, Massachusetts 02108

Attn: 
Michael Lytton

(Fax: 617-227-4420)

 

Any such notice shall be deemed received the
day the delivery is made, if delivered by hand or by facsimile transmission,
and the following business day, if delivered by national overnight delivery
service or by Registered or Certified mail. 
Any party may, by such manner of notice, change the address or
substitute persons for notice other than those listed above.

 

15.                                 Expenses.  Except as otherwise provided herein, each
party shall pay its own expenses in connection with the performance of this
Agreement.

 

16.                                 Arbitration.  The parties agree that all controversies,
disputes, and claims among the parties arising out of this Agreement, and all
questions concerning the validity, interpretation and enforcement of this
Agreement, shall be determined by arbitration conducted in accordance with this
Section.  Any arbitration initiated under
this Agreement shall be conducted before a single neutral arbitrator appointed
by the parties.  For purposes of this
Agreement an arbitrator shall not be considered “neutral” if the arbitrator has
previously served as an arbitrator for a dispute involving the parties or is a
present or former lawyer, employee or consultant of a party or any of its
affiliates.  The arbitrator shall be
knowledgeable in matters that are the subject of the dispute, and shall not
have any current or past substantial business or financial relationships with
any party to the arbitration.  Any
arbitration under this Agreement shall be initiated by written request of a
party.  Copies of any such request shall
be served on the other party, and shall specify the issue or issues in dispute
and summarize the party’s claim with respect thereto.  Within ten business days after receipt of
such a request, authorized representatives of the parties shall confer and
attempt to agree upon appointment of a single neutral arbitrator.  If such agreement is not accomplished within
15 business days after receipt of such a request, any party may request the
American Arbitration Association (“AAA”) to administer the arbitration and to

 

16

 

appoint an arbitrator in accordance with its Commercial Arbitration
Rules, which rules shall govern the conduct of the arbitration in the
absence of contrary agreement by all parties. 
An arbitrator appointed by the AAA shall be a neutral arbitrator, shall
be knowledgeable in the matters that are the subject of the dispute, and shall not
have any current or past substantial business or financial relationship with
either party, all as more fully set forth above.  Any arbitration hereunder shall be conducted
in Portland, Maine unless otherwise agreed to by both parties.  Unless otherwise agreed, the arbitrator shall
render a decision within ninety (90) days of appointment and shall notify the
parties in writing of such decision and the reasons therefor.  Each party shall be responsible for its own
costs, including attorneys’ fees, incurred during the arbitration process and
for one-half of the cost of the arbitrator.

 

The arbitrator shall be authorized only to
interpret and apply the provisions of this Agreement or any related agreements
entered into under this Agreement and shall have no power to modify or change
any of the above in any manner.  The
decision of the arbitrator shall be final and binding upon the parties, and
judgment on the award may be entered in any court having jurisdiction.  Nothing in this paragraph 16 shall preclude, or
be construed to preclude, the resort by either party to a court of competent
jurisdiction solely for the purposes of securing a temporary or preliminary
injunction to preserve the status quo or avoid irreparable harm pending
arbitration pursuant to this paragraph 16.

 

17.                                 Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties and the successors and assigns of each of
them.

 

18.                                 Waiver.  No waiver of any breach of any term hereof
shall be effective unless made in writing signed by the party having the right
to enforce such breach, and no waiver shall be construed as a waiver of any
subsequent breach.  No course of dealing
or delay or omission on the part of any party in exercising any right or remedy
shall operate as a waiver thereof or otherwise be prejudicial thereto.

 

19.                                 Counterparts.  This Agreement may be signed in any number of
counterparts with the same effect as if the signature on each such counterpart
were upon the same instrument.

 

20.                                 Severability.  No determination by any court, governmental
body or otherwise that any provision of this Agreement or any amendment hereof
is invalid or unenforceable in any instance shall affect the validity or
enforceability of (a) any other provision hereof, or (b) such provision
in any circumstances not controlled by such determination.  Each such provision shall be valid and
enforceable to the fullest extent allowed by, and shall be construed whenever
possible as being consistent with, applicable law.

 

21.                                 Headings.  The headings to the various paragraphs of
this Agreement have been inserted for convenient reference only, and shall not
to any extent have the effect of modifying, amending or changing the express
terms and provisions of this Agreement.

 

22.                                 Construction.  Words of the masculine gender used in this
Agreement shall be construed as though they also are used in the feminine
gender, where applicable.  Similarly,
words used in the singular form shall be construed as though they also are used
in the plural form, where applicable.

 

17

 

23.                                 Entire Agreement:
Amendment.  This Agreement, and all
documents, agreements, schedules, exhibits or certificates prepared in
connection herewith, represent the entire understanding and agreement between
the parties with respect to the subject matter hereof, supersede all prior
agreements or negotiations between such parties, and may be amended,
supplemented or modified only by an agreement in writing which makes specific
reference to this Agreement or the agreement delivered pursuant hereto, as the
case may be, and which is signed by the party against whom enforcement of any
such amendment, supplement or modification is sought.

 

24.                                 Governing Law.  This Agreement shall be construed in accordance
with the laws of the State of Maine.

 

18

 

IN WITNESS WHEREOF, the parties have executed
and delivered this Agreement as of the date first set forth above.

 

	
   

  	
  AVIAN FARMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  
	
   

  	
  Its

  	
  C.O.O.

  

 

 

	
   

  	
  A.C.T. GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael D. West

  
	
   

  	
  Its

  	
  President

  

 

 

	
   

  	
  ADVANCED CELL TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael D. West

  
	
   

  	
  Its

  	
  President

  

 

 

	
   

  	
  CIMA BIOTECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  
	
   

  	
  Its

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WITNESS:

  	
  /s/ 

  	
   

  
					

 

19

 

EXHIBIT A

TO

FORBEARANCE &
STOCK PURCHASE AGREEMENT

 

ASSIGNMENT
AND RE-ASSIGNMENT

 

THIS ASSIGNMENT AND RE-ASSIGNMENT is made as
of                ,
1999, by and among AVIAN FARMS, INC., a Delaware corporation (“Avian”), and
ROBERT H. SAGLIO, as trustee with respect to certain of the membership units of
Cyagra, LLC, a Delaware limited liability company, held in trust for the sole
benefit of Avian (“Saglio”),

 

RECITALS

 

WHEREAS, pursuant to a certain Limited
Liability Company Agreement of ACT Agriculture, LLC dated March 26, 1998
(the “Operating Agreement”), 2,200 Class B Membership Units (as defined in
the Operating Agreement) were issued to Saglio in trust for the sole benefit of
Avian (the “Membership Units”); and

 

WHEREAS, Saglio wishes to transfer the
Membership Units to Avian; and

 

WHEREAS, after giving effect to such
transfer, Avian wishes to transfer the Membership Units to Advanced Cell
Technology, a Delaware corporation (“ACT”), which is a wholly owned subsidiary
of Avian;

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.                                       Saglio, as
trustee for the sole benefit of Avian, hereby transfers and assigns all right,
title and interest in and to the Membership Units to Avian as a “Permitted
Transferee” under the Operating Agreement.

 

2.                                       After giving
effect to paragraph 1 above, Avian hereby transfers and assigns all of right,
title and interest in and to the Membership Units to ACT as a “Permitted
Transferee” under the Operating Agreement.

 

This Assignment has been executed and
delivered as of the date first set forth above.

 

	
   

  	
  AVIAN FARMS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Its

  	
  C.O.O.

  
	
   

  	
   

  
	
   

  	
  /s/ Robert Saglio

  
	
   

  	
  Robert Saglio, Trustee

  
	
   

  	
   

  
	
   

  	
  WITNESS:

  	
  /s/ [ILLEGIBLE]

  	
   

  
					

 

 

SCHEDULE 8(f)

TO

FORBEARANCE &
STOCK PURCHASE AGREEMENT

 

ACT Stock
Ownership Analysis

12/30/98

 

	
  Class of Stock 

  	
   

  	
  Investment 

  	
   

  	
  Conv. Price

  	
   

  
	
  Series A Prfd. Convertible

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  1.00

  	
   

  
								

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Debt Conversion and

  Recapitalization as of 12/98 

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  

  Initial Capitalization

  	
   

  	
  NonVoting

  Common/Options (1)

  	
   

  	
  Series A

  Fully

  Converted

  	
   

  	
  Common

  Stock

  Fully Diluted

  	
   

  	
  %

  	
   

  
	
  Common

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Outstanding:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Avian Farms

  	
   

  	
  3,000,00

  	
   

  	
  100.00

  	
  %

  	
  300,000

  	
   

  	
  5,000,000

  	
   

  	
  5,300,000

  	
   

  	
  53.925

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Options:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Michael West

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  1,965,693

  	
   (2)

  	
  0

  	
   

  	
  1,965,693

  	
   

  	
  20.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  James Robl

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  491,423

  	
   (3)

  	
  0

  	
   

  	
  491,423

  	
   

  	
  5.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jose Cibelli

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  294,854 

  	
   (2),(3)

  	
  0

  	
   

  	
  294,854 

  	
   

  	
  3.000 

  	
  %

  
	
   

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  196,569

  	
   

  	
  0

  	
   

  	
  196,569

  	
   

  	
  2.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Others

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J. Cain

  	
   

  	
  0 

  	
   

  	
  0.00

  	
  %

  	
  22,114 

  	
   

  	
  0

  	
   

  	
  22,114 

  	
   

  	
  0.225

  	
  %

  
	
  C. Blackwell

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  22,114 

  	
   

  	
  0

  	
   

  	
  22,114

  	
   

  	
  0.225

  	
  %

  
	
  N. Kieser 

  	
   

  	
  0 

  	
   

  	
  0.00

  	
  %

  	
  14,743 

  	
   

  	
  0

  	
   

  	
  14,473

  	
   

  	
  0.150

  	
  %

  
	
  W. Ingels 

  	
   

  	
  0 

  	
   

  	
  0.00

  	
  %

  	
  2,457

  	
   

  	
  0

  	
   

  	
  2,457

  	
   

  	
  0.025

  	
  %

  
	
  E. Malino

  	
   

  	
  0 

  	
   

  	
  0.00

  	
  %

  	
  14,743 

  	
   

  	
  0

  	
   

  	
  14,743

  	
   

  	
  0.150

  	
  %

  
	
  K. Cunniff 

  	
   

  	
  0 

  	
   

  	
  0.00

  	
  %

  	
  19,657 

  	
   

  	
  0

  	
   

  	
  19,657

  	
   

  	
  0.200

  	
  %

  
	
  K. Delegge 

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  9,828

  	
   

  	
  0

  	
   

  	
  9,828

  	
   

  	
  0.100

  	
  %

  
	
  Total Others

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  105,656

  	
   (3)

  	
  0

  	
   

  	
  105,656

  	
   

  	
  1.075

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Add’l ISO
  Pool(4)

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  1,474,270

  	
   (2)

  	
  0

  	
   

  	
  1,474,270

  	
   

  	
  15.000

  	
  %

  
	
  Totals

  	
   

  	
  3,000,000

  	
   

  	
  100.00

  	
  %

  	
  4,828,465

  	
   

  	
  5,000,000

  	
   

  	
  9,828,465

  	
   

  	
  100.000

  	
  %

  

 

NOTES

 

(1)            Upon recapitalization,
all outstanding shares of common shall be converted to nonvoting common in a
reverse

stock split of 10 shares of outstanding
common for each new share of nonvoting common. 
Upon conversion of all classes of preferred stock with voting rights,
the nonvoting common shall obtain voting rights on a one share one vote basis.

 

(2)            Assumes full exercise
of 1998 grant of incentive stock options at $.25 strike price.

 

(3)            Assumes full exercise
of 1997 grants of nonqualified stock options at $.05 strike price.

 

(4)            Reserved; none granted
to date.

 

 

Execution
Copy

 

AMENDMENT TO

FORBEARANCE & STOCK PURCHASE AGREEMENT

 

This Amendment to the Forbearance &
Stock Purchase Agreement (the “Amendment”) dated as of December 23, 1999,
is entered into by and among AVIAN FARMS, INC.,
a Delaware corporation with a principal place of business at 295 Kennedy
Memorial Drive, Waterville, Maine 04903 (“Seller”), A.C.T.
GROUP INC., a Delaware corporation with a principal place of
business at One Innovation Drive, Worcester, Massachusetts 01605 (“Buyer”), ADVANCED CELL TECHNOLOGY, INC., a Delaware corporation with
a principal place of business at One Innovation Drive, Worcester, Massachusetts
01605 (“ACT”), and CIMA BIOTECHNOLOGY, INC.,
a Delaware corporation with a principal place of business at 495 Animal
Science/Veterinary Building, 1988 Fitch Ave, University of Minnesota, 55108 (“CIMA,”
and together with ACT, collectively referred to herein as the “Companies”).

 

Whereas, Seller,
Buyer and the Companies have entered into that certain Forbearance &
Stock Purchase Agreement dated July 16, 1999 (the “Agreement”), and desire
to amend the Agreement as provided herein.

 

Now, Therefore, in
consideration of the foregoing premises and the mutual covenants and conditions
set forth below, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties to this Amendment hereby agree as
follows:

 

1.                                       Right to Market and Sell Agricultural Products or Services.  Section 1 of the Agreement is hereby
amended by deleting existing paragraph (e) in its entirety.

 

2.                                       Buyer’s Right of First Negotiation.  Section 1 of the Agreement is hereby
amended by inserting the following paragraph:

 

(e)                                  Seller hereby grants
to Buyer a right of first negotiation to acquire all or any portion of shares
of capital stock of the Companies (the “Interests”) owned by Seller that the
Seller proposes to sell, convey, assign or otherwise transfer in any way
(hereinafter referred to as a “Sale” or to “Sell”) to any third party.  Seller shall notify Buyer of its intention to
Sell its Interests.  Buyer shall then
have a period of thirty (30) days to notify the Seller in writing of its
willingness to purchase such shares of capital stock upon terms and conditions
to be agreed.  If Buyer so notifies
Seller, then Buyer (or an affiliate or subsidiary of Buyer) and Seller shall
negotiate in good faith for not more than thirty (30) days for the Sale of the
Interests to Buyer or its affiliate or subsidiary upon terms and conditions to
be agreed.  If, by the end of such thirty
(30) day period Buyer (or its affiliate or subsidiary, as the case may be) and
Seller have not reached agreement, Seller shall be free to sell such shares of
capital stock to such third party, but only on terms no more favorable to such
third party as were offered in good faith to Buyer.

 

3.                                       Closing.  Section 4
of the Agreement is hereby amended by deleting the date “July 29, 1999”
and substituting therefor the date “December 23, 1999”.

 

4.                                       Representations and Warranties of Seller.

 

(a)                                  Section 5(a) of
the Agreement is hereby amended by deleting the date

 

 

“July 29, 1999” and substituting
therefor the date “December 23, 1999”.

 

(b)                                 Section 5(b) of
the Agreement is hereby amended by inserting the phrase “arising prior to July 16,
1999” following the words “neither ACT nor CIMA shall have any liabilities”.

 

5.                                       Conditions
to Buyer’s Obligation to Close.  Section 8(d) of
the Agreement is hereby deleted.

 

6.                                       Indemnification,
Section 11 (a) of the Agreement is hereby amended by inserting
the following at the end of said section: “, or any assertion by Origen
relating to conflicts of interest, breaches of duties or dual roles of Michael
West for Origen and ACT.”

 

7.                                      Attorney’s
Fees; American Motorists Recovery.  The
Agreement is hereby amended by adding the following new sections:

 

“23.                           Seller Counsel’s Attorney’s
Fees.  Seller and Buyer acknowledge that
ACT and Seller have incurred obligations to Pierce Atwood for fees for legal
services rendered and expenses incurred in connection with defense of the
Infigen Suit and other ACT matters.  As
of December 20, 1999, outstanding attorneys’ fees and expenses were
$131,505.88.  On the Closing Date, Seller
shall pay Pierce Atwood the sum of $56,741.95 and ACT shall pay Pierce Atwood
the sum of $37,336.96, and, within thirty days after the Closing Date, ACT
shall pay Pierce Atwood the sum of $37,336.97 in satisfaction of such fees and
expenses.  In addition, after the Closing
Date, ACT shall pay Pierce Atwood the full amount of any fees and expenses
incurred on ACT’s matters from and after December 21, 1999.

 

24.                                 Buyer Counsel’s
Attorney’s Fees, Buyer and ACT acknowledge that Buyer and ACT have incurred
obligations to Palmer & Dodge LLP for fees for legal services rendered
and expenses incurred in connection with representation of A.C.T. Group Inc. in
its negotiations for the purchase of ACT from Avian and representation of ACT
in other business matters.  As of November 30,
1999, outstanding attorneys’ fees and expenses were $42,765.43.  On the Closing Date, Buyer and ACT shall pay
Palmer & Dodge LLP the sum of $42,765.43 in satisfaction of such fees
and expenses.  In addition, after the
Closing Date, ACT shall pay Palmer & Dodge LLP the full amount of any
fees and expenses incurred on ACT’s matters from and after November 30,1999.

 

25.                                 American Motorists
Recovery.  On September 2, 1999,
American Motorists Ins. Co. (“American Motorists”) filed with United States
District Court for Western District of Wisconsin a civil action seeking a
determination that there was no insurance coverage for the settlement of or
attorneys’ fees and expenses incurred in connection with the Infigen suit.  On September 14, 1999, ACT and Avian
filed with the United States District Court for the District of Maine a civil
action for recovery of fees and expenses incurred by Avian and ACT in defending
the Infigen suit.  ACT shall be
responsible for payment of any and all legal fees and expenses incurred in
defending and prosecuting said civil actions. 
Any recovery from American Motorists in such civil actions shall be used
first to pay any outstanding legal expenses incurred in connection with such
civil actions, second to reimburse ACT for legal fees and expenses paid by ACT
after the Closing Date in connection with such civil actions, third to
reimburse ACT the

 

2

 

sum of $20,962.00 for legal expenses paid by ACT to Pierce Atwood on
the Closing Date relating to the Infigen suit, and the balance shall be paid to
Seller.

 

8.                                      Severability.  If any provision of this Amendment is deemed
to be or becomes invalid, illegal or unenforceable in any respect in any
jurisdiction, (a) such provision will be deemed amended to conform to
applicable laws of such jurisdiction so as to be valid and enforceable; (b) the
validity, legality and enforceability of such provision will not in any way be
affected or impaired thereby in any other jurisdiction; and (c) the
remaining provisions of this Amendment shall continue in force without being
impaired or invalidated in any way.

 

9.                                      Full
Force and Effect.  Except as specifically amended by this
Amendment, the Agreement shall remain in full force and effect.

 

10.                               Section Headings.  The descriptive section headings herein
have been inserted for convenience of reference only and shall not be deemed to
be a part of this Amendment.

 

11.                               Counterparts.  This Amendment may be signed in any number of
counterparts with the same effect as if the signature on each such counterpart
were upon the same instrument.

 

12.                               Governing
Law.  This Amendment shall be
governed by and construed in accordance with the laws of the State of Maine.

 

 

(Remainder of page intentionally blank.]

 

3

 

IN WITNESS WHEREOF, Seller, Buyer and the
Companies have duly executed and delivered this Amendment to the Forbearance &
Stock Purchase Agreement as an instrument under seal as of the date first above
written.

 

 

	
  ADVANCED CELL TECHNOLOGY, INC.

  	
  AVIAN FARMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
    /s/ Michael West

  	
   

  	
  By:

  	
    /s/ Pichet Laokasem

  	
   

  
	
  Name: MICHAEL WEST

  	
  Name:

  	
  Pichet Laokasem

  
	
  Title: PRES & CEO

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  CIMA BIOTECHNOLOGY, INC.

  	
  A.C.T. GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
    /s/ Robert H. Saglio

  	
   

  	
  BY: 

  	
    /s/ Michael West

  	
   

  
	
  Name:

  	
  Robert H. Saglio

  	
  Name: MICHAEL WEST

  
	
  Title:

  	
  President

  	
  Title: PRES.

  
											

 

4

 

Execution
Copy

 

AMENDMENT TO

FORBEARANCE & STOCK PURCHASE AGREEMENT

 

This Amendment to the Forbearance &
Stock Purchase Agreement (the “Amendment”) dated as of December 23,1999,
is entered into by and among AVIAN FARMS, INC.,
a Delaware corporation with a principal place of business at 295 Kennedy
Memorial Drive, Waterville, Maine 04903 (“Seller”), A.C.T. GROUP
INC., a Delaware corporation with a principal place of business at
One Innovation Drive, Worcester, Massachusetts 01605 (“Buyer”), ADVANCED CELL TECHNOLOGY, INC., a Delaware corporation with
a principal place of business at One Innovation Drive, Worcester, Massachusetts
01605 (“ACT”), and CIMA BIOTECHNOLOGY, INC.,
a Delaware corporation with a principal place of business at 495 Animal
Science/Veterinary Building, 1988 Fitch Ave, University of Minnesota, 55108 (“CIMA,”
and together with ACT, collectively referred to herein as the “Companies”).

 

Whereas, Seller,
Buyer and the Companies have entered into that certain Forbearance &
Stock Purchase Agreement dated July 16,1999 (the “Agreement”), and desire
to amend the Agreement as provided herein.

 

Now, Therefore,
in consideration of the foregoing premises and the mutual covenants and
conditions set forth below, and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties to this Amendment hereby
agree as follows:

 

1.                                       Right to Market and Sell Agricultural Products or Services:  Section 1 of the Agreement is
hereby amended by deleting existing paragraph (e) in its entirety.

 

2.                                       Buyer’s Right of First Negotiation.  Section 1 of the Agreement is hereby
amended by inserting the following paragraph:

 

(e)                                  Seller hereby grants
to Buyer a right of first negotiation to acquire all or any portion of shares of
capital stock of the Companies (the “Interests”) owned by Seller that the
Seller proposes to sell, convey, assign or otherwise transfer in any way
(hereinafter referred to as a “Sale” or to “Sell”) to any third party.  Seller shall notify Buyer of its intention to
Sell its Interests.  Buyer shall then
have a period of thirty (30) days to notify the Seller in writing of its
willingness to purchase such shares of capital stock upon terms and conditions
to be agreed.  If Buyer so notifies
Seller, then Buyer (or an affiliate or subsidiary of Buyer) and Seller shall
negotiate in good faith for not more than thirty (30) days for the Sale of the
Interests to Buyer or its affiliate or subsidiary upon terms and conditions to
be agreed.  If, by the end of such thirty
(30) day period Buyer (or its affiliate or subsidiary, as the case may be) and
Seller have not reached agreement, Seller shall be free to sell such shares of
capital stock to such third party, but only on terms no more favorable to such
third party as were offered in good faith to Buyer.

 

3.                                     Closing.  Section 4
of the Agreement is hereby amended by deleting the date “July 29, 1999”
and substituting therefor the date “December 23, 1999”.

 

4.                                     Representations and Warranties of Seller.

 

(a)                              Section 5(a) of
the Agreement is hereby amended by deleting the date

 

 

“July 29, 1999” and substituting
therefor the date “December 23,1999”.

 

(b)                                Section 5(b) of
the Agreement is hereby amended by inserting the phrase “arising prior to July 16,1999”
following the words “neither ACT nor CIMA shall have any liabilities”.

 

5.                                     Conditions to Buyer’s Obligation to Close.  Section 8(d) of the Agreement Is
hereby deleted.

 

6.                                     Indemnification.  Section 11
(a) of the Agreement is hereby amended by inserting the following at the
end of said section: “, or any assertion by Origen relating to conflicts of interest,
breaches of duties or dual roles of Michael West for Origen and ACT.”

 

7.                                     Attorney’s Fees; American Motorists Recovery.  The Agreement is hereby amended by adding the
following new sections:

 

“23.                           Seller Counsel’s Attorney’s
Fees.  Seller and Buyer acknowledge that ACT
and Seller have incurred obligations to Pierce Atwood for fees for legal
services rendered and expenses incurred in connection with defense of the
Infigen Suit and other ACT matters.  As of
December 20, 1999, outstanding attorneys’ fees and expenses were
$131,505.88.  On the Closing Date, Seller
shall pay Pierce Atwood the sum of 556,741.95 and ACT shall pay Pierce Atwood
the sum of $37,336.96, and, within thirty days after the Closing Date, ACT
shall pay Pierce Atwood the sum of $37,336.97 in satisfaction of such fees and
expenses.  In addition, after the Closing
Date, ACT shall pay Pierce Atwood the full amount of any fees and expenses
incurred on ACT’s matters from and after December 21,1999.

 

24.                                 Buyer Counsel’s
Attorney’s Fees.  Buyer and ACT
acknowledge that Buyer and ACT have incurred obligations to Palmer &
Dodge LLP for fees for legal services rendered and expenses incurred in
connection with representation of A.C.T. Group Inc. in its negotiations for the
purchase of ACT from Avian and representation of ACT in other business matters.  As of November 30, 1999, outstanding
attorneys’ fees and expenses were $42,765.43. 
On the Closing Date, Buyer and ACT shall pay Palmer & Dodge LLP
the sum of $42,765.43 in satisfaction of such fees and expenses.  In addition, after the Closing Date, ACT
shall pay Palmer & Dodge LLP the full amount of any fees and expenses
incurred on ACT’s matters from and after November 30, 1999.

 

25,                                 American Motorists
Recovery.  On September 2,1999,
American Motorists Ins. Co. (“American Motorists”) filed with United States
District Court for Western District of Wisconsin a civil action seeking a
determination that there was no insurance coverage for the settlement of or
attorneys’ fees and expenses incurred in connection with the Infigen suit.  On September 14, 1999, ACT and Avian
filed with the United States District Court for the District of Maine a civil
action for recovery of fees and expenses incurred by Avian and ACT in defending
the Infigen suit.  ACT shall be
responsible for payment of any and all legal fees and expenses incurred in
defending and prosecuting said civil actions. 
Any recovery from American Motorists in such civil actions shall be used
first to pay any outstanding legal expenses incurred in connection with such
civil actions, second to reimburse ACT for legal fees and expenses paid by ACT
after the Closing Date in connection with such civil actions, third to
reimburse ACT the

 

2

 

sum of $20,962.00 for legal expenses paid by ACT to Pierce Atwood on
the Closing Date relating to the Infigen suit, and the balance shall be paid to
Seller.

 

8.                                     Severability.  If any
provision of this Amendment is deemed to be or becomes invalid, illegal or
unenforceable in any respect in any jurisdiction, (a) such provision will
be deemed amended to conform to applicable laws of such jurisdiction so as to
be valid and enforceable; (b) the validity, legality and enforceability of
such provision will not in any way be affected or impaired thereby in any other
jurisdiction; and (c) the remaining provisions of this Amendment shall
continue in force without being impaired or invalidated in any way.

 

9.                                     Full Force and Effect.  Except as specifically amended by this
Amendment, the Agreement shall remain in full force and effect.

 

10.                               Section Headings.  The descriptive section headings herein
have been inserted for convenience of reference only and shall not be deemed to
be a part of this Amendment.

 

11.                               Counterparts.  This
Amendment may be signed in any number of counterparts with the same effect as if
the signature on each such counterpart were upon the same instrument.

 

12.                               Governing Law.  This
Amendment shall be governed by and construed in accordance with the laws of the
Stare of Maine.

 

 

(Remainder of page intentionally
blank,]

 

3

 

IN WITNESS WHEREOF, Seller, Buyer and the
Companies have duly executed and delivered this Amendment to the Forbearance &
Stock Purchase Agreement as an instrument under seal as of the date first above
written.

 

 

	
  ADVANCED CELL TECHNOLOGY, INC.

  	
  AVIAN FARMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
    /s/ Michael West

  	
   

  	
  By:

  	
    /s/ Pichet Laokasem

  	
   

  
	
  Name:  MICHAEL WEST

  	
  Name:

  	
  Pichet Laokasem

  
	
  Title:  PRES & CEO

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  CIMA BIOTECHNOLOGY, INC.

  	
  A.C.T. GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
    /s/ Robert H. Saglio

  	
   

  	
  BY: 

  	
    /s/ MICHAEL WEST

  	
   

  
	
  Name:

  	
  Robert H. Saglio

  	
  Name:  MICHAEL WEST

  
	
  Title:

  	
  President

  	
  Title:  PRES.

  
											

 

4

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