Document:

Exhibit
10.29

 

SECURITYHOLDERS’
AGREEMENT

 

among

 

CYAGRA,
INC.,

 

ADVANCED
CELL TECHNOLOGY, INC.,

 

A.C.T.
GROUP, INC.,

 

GOYAIKE
S.A.

 

and

 

THE
SECURITYHOLDERS HEREAFTER SIGNATORY HERETO

 

dated as
of November 20, 2001

 

 

TABLE OF
CONTENTS

 

	
  Section

  	
   

  
	
   

  	
   

  
	
  ARTICLE I

  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 1.01.

  	
  Certain Defined
  Terms

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  REPRESENTATIONS AND WARRANTIES OF THE COMPANY, PARENT AND ACT

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  REPRESENTATIONS AND WARRANTIES OF GOYAIKE

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 3.01.

  	
  Organization
  and Authority

  	
   

  
	
   

  	
  SECTION 3.02.

  	
  No Conflict

  	
   

  
	
   

  	
  SECTION 3.03.

  	
  Governmental
  Consents and Approvals

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  CORPORATE GOVERNANCE

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 4.01.

  	
  Agreement
  to Vote

  	
   

  
	
   

  	
  SECTION 4.02.

  	
  Election
  of Directors; Voting

  	
   

  
	
   

  	
  SECTION 4.03.

  	
  Nomination
  and Election of Directors

  	
   

  
	
   

  	
  SECTION 4.04.

  	
  Removal;
  Vacancies

  	
   

  
	
   

  	
  SECTION 4.05.

  	
  Audit
  Committee

  	
   

  
	
   

  	
  SECTION 4.06.

  	
  Compensation
  Committee

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  TRANSFER OF SHARES

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 5.01.

  	
  General
  Restriction

  	
   

  
	
   

  	
  SECTION 5.02.

  	
  Legends

  	
   

  
	
   

  	
  SECTION 5.03,

  	
  Certain
  Restrictions on Transfer of Shares

  	
   

  
	
   

  	
  SECTION 5.04.

  	
  Right of
  First Offer

  	
   

  
	
   

  	
  SECTION 5.05.

  	
  Tag-Along
  Rights

  	
   

  
	
   

  	
  SECTION 5.06.

  	
  Transferees
  to Execute Agreement

  	
   

  
	
   

  	
  SECTION 5.07.

  	
  Improper
  Sale

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  [INTENTIONALLY DELETED]

  	
   

  

 

 

	
  ARTICLE VII

  ADDITIONAL AGREEMENTS

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 7.01.

  	
  New Securityholders
  to Execute Agreement.

  	
   

  
	
   

  	
  SECTION 7.02.

  	
  Rights to
  Purchase New Securities

  	
   

  
	
   

  	
  SECTION 7.03.

  	
  Further
  Assurances

  	
   

  
	
   

  	
  SECTION 7.04.

  	
  Restriction
  on Transactions with Affiliates

  	
   

  
	
   

  	
  SECTION 7.05.

  	
  Information
  Rights

  	
   

  
	
   

  	
  SECTION 7.06.

  	
  Dividend
  Rights

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
   

  	
  SECTION 8.01.

  	
  Termination

  	
   

  
	
   

  	
  SECTION 8.02.

  	
  Expenses

  	
   

  
	
   

  	
  SECTION 8.03.

  	
  Notices

  	
   

  
	
   

  	
  SECTION 8.04.

  	
  Public
  Announcements

  	
   

  
	
   

  	
  SECTION 8.05.

  	
  Headings

  	
   

  
	
   

  	
  SECTION 8.06.

  	
  Severability

  	
   

  
	
   

  	
  SECTION 8.07.

  	
  Entire
  Agreement

  	
   

  
	
   

  	
  SECTION 8.08.

  	
  Assignment

  	
   

  
	
   

  	
  SECTION 8.09.

  	
  No
  Third-Party Beneficiaries

  	
   

  
	
   

  	
  SECTION 8.10.

  	
  Amendment

  	
   

  
	
   

  	
  SECTION 8.11.

  	
  Governing
  Law

  	
   

  
	
   

  	
  SECTION 8.12.

  	
  Counterparts

  	
   

  
	
   

  	
  SECTION 8.13.

  	
  Specific
  Performance

  	
   

  
	
   

  	
  SECTION 8.14.

  	
  Waiver of
  Jury Trial

  	
   

  
	
   

  	
   

  
	
  Schedule I

  	
  Subsequent
  Securityholders

  	
   

  
	
  Schedule II

  	
  Addresses of
  Securityholders

  	
   

  
	
  Schedule III

  	
  Nominees
  to Board of Directors

  	
   

  
	
  Schedule IV

  	
  Consent
  Events

  	
   

  
					

 

ii

 

SECURITYHOLDERS’
AGREEMENT

 

This SECURITYHOLDERS’
AGREEMENT (this “Agreement”), dated as of November 20, 2001, among
CYAGRA, INC., a Delaware corporation (the “Company”), ADVANCED CELL
TECHNOLOGY, INC., a Delaware corporation and a wholly owned subsidiary of ACT
(“Parent”), A.C.T. GROUP, INC., a Delaware corporation (“ACT”),
and GOYAIKE S.A., a company incorporated under the laws of Argentina (“Goyaike”),
and each Person hereafter signatory to this Agreement.

 

W
1  T N E
S  S  E  T  H:

 

WHEREAS, the Company is
engaged in the business of researching and developing technology, manufacturing
and selling products and providing services related thereto, in each case, in
the field of agriculture, including researching and developing technology and
manufacturing and selling products that are composed of, made in or derived,
extracted or isolated from cloned non-human domesticated animals (including
cattle, goats, sheep, pigs, and other domesticated animals, but excluding
animals of the avian or equine species) or the cells or tissues, including
genes, of such animals for the production of food or fiber and the rendering of
services or uses that relate to the production of such products, and the
production of transgenic animals for the purposes described above (the “Business”);

 

WHEREAS, pursuant to a
Securities Purchase Agreement, dated November 20, 2001, among the Company,
Parent, ACT and Goyaike (the “Securities Purchase Agreement”), Goyaike
has agreed to (i) purchase 2,750,000 newly issued shares of the Company’s
common stock, par value $0.001 per share (“Common Stock”), from the
Company, (ii) purchase 544,481 shares of Common Stock from Parent, and
(iii) purchase 1,455,519 shares of Common Stock from ACT;

 

WHEREAS, after giving
effect to the transactions contemplated by the Securities Purchase Agreement, Goyaike
will own approximately 29% of the outstanding shares of Common Stock of the
Company on a fully diluted basis, and ACT and Parent will collectively own
approximately 64.6% of the outstanding shares of Common Stock of the Company on
a fully diluted basis;

 

WHEREAS, Goyaike is also
acquiring a license of certain intellectual property pursuant to a sublicense
among Parent, ACT, the Company and Goyaike dated as of the date hereof;

 

WHEREAS, in connection
with the development of the Company, Parent and ACT are agreeing to provide
certain management, research and development, and operational services to the
Company in exchange for arm’s-Length consideration; and

 

WHEREAS, the parties
hereto believe it is in their respective best interests to enter into certain
agreements concerning the composition of the Company’s Board (as defined
below), corporate governance, transfer restrictions on the Common Stock and
consent/supermajority rights, all as set forth herein.

 

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and agreements
hereinafter set forth, the parties hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.                                         Certain
Defined Terms.  As used in this
Agreement, the following terms shall have the following meanings:

 

“ACT” has
the meaning specified in the Preamble.

 

“Affiliate”
means, with respect to any specified Person, any other Person that directly, or
indirectly through one or more intermediaries, Controls, is Controlled by, or
is under common Control with, such specified Person.

 

“Agreement”
has the meaning specified in the Preamble.

 

“Beneficial
Owner” or “Beneficially Own” has the meaning given such term in
Rule 13d-3 under the Exchange Act; provided, however, that
Beneficial Ownership under Rule 13d-3(1)(i) shall be determined based
on whether a Person has a right to acquire Beneficial Ownership irrespective of
whether such right is exercisable within sixty (60) days of the time of
determination.

 

“Board”
means the board of directors of the Company.

 

“Business”
has the meaning specified in the Recitals.

 

“Business Day”
means any day that is not a Saturday, a Sunday or other day on which banks are
required or authorized by Law to be closed in The City of New York, U.S.A. or
The City of Buenos Aires, Argentina.

 

“Capital Stock”
means, with respect to any Person at any time, any and all shares, interests,
participations or other equivalents (however designated, whether voting or
non-voting) of capital stock, partnership interests (whether general or
limited), limited liability company interests or equivalent ownership interests
in such Person.

 

“Common Stock”
has the meaning specified in the Recitals.

 

“Company”
has the meaning specified in the Preamble.

 

“Company Option”
has the meaning specified in Section 5.04(c).

 

“Company Option
Period” has the meaning specified in Section 5.04(c).

 

“Control”
(including the terms “controlled by” and “under common control with”)
means the possession, directly or indirectly, or as trustee or executor, of the
power to

 

2

 

direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, as trustee or executor, by contract or credit
arrangement or otherwise.

 

“EBITDA” means
earnings before interest, taxes, depreciation and amortization.

 

“Encumbrance”
means any security interest, pledge, bailment (in the nature of a pledge or for
purposes of security), mortgage, deed of trust, the grant of a power to confess
judgment, conditional sale or title retention agreement (including any lease in
the nature thereof), lien (including, without limitation, environmental and tax
liens), charge, encumbrance, easement, reservation, restriction, cloud, adverse
claim, right of first refusal or first offer, option or other similar
arrangement or interest in real or personal property.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

“Goyaike”
has the meaning specified in the Preamble. 

 

“Goyaike
Directors” has the meaning specified in Section 4.02.

 

“Law” means
any U.S. or non-U.S. constitution, law, statute, treaty, rule, directive,
requirement or regulation or governmental order.

 

“Management
Services and Intellectual Property Agreement” means the management services
and intellectual property agreement between Parent, ACT and the Company to be
entered into simultaneously upon consummation of the transactions contemplated
by the Securities Purchase Agreement.

 

“Material
Adverse Effect” means any circumstance, change in or effect on the Company
that, individually or in the aggregate with all other circumstances, changes in
or effects on the Company, is or could reasonably be expected to be materially
adverse to the business, operations, properties, results of operations or
condition (financial or otherwise) of the Company, except for any changes in or
effects on the Company principally arising from or principally relating to
(i) the U.S. or the global economy or the securities markets generally or
(ii) the biomedical industry in general; provided, however,
that in the case of each of clause (i) and (ii) the Company is not
disproportionately affected by such changes or effects compared to other
Persons engaged in similarly situated businesses within the biomedical
industry.

 

“Net Income”
means net income as reflected on the Company’s internal quarterly financial
statements as prepared in accordance with US generally accepted accounting
principles.

 

“New Securities”
means any Capital Stock of the Company, whether now authorized or not, and
rights, options or warrants to purchase such Capital Stock, and securities of
any type whatsoever that are, or may become, convertible into or exchangeable
or exercisable for Capital Stock of the Company; provided, however,
that the term “New Securities” does not include (i) shares of Common Stock
of the Company which have been reserved for issuance to employees, officers and
directors of the Company pursuant to an incentive stock option pool administered
by the Board consisting of ten (10%) percent of the outstanding shares of
Common

 

3

 

Stock of the Company on a
fully diluted basis as of the Closing Date, (ii) securities of the Company
issued in connection with any stock split, stock dividend or recapitalization
of the Company, (iii) securities of the Company issued in a Qualified
Initial Public Offering, or (iv) securities issued in connection with
(a) any acquisition of assets or capital stock or other equity interest of
any other business enterprise (whether such acquisition is structured as a
purchase and sale, merger, consolidation or other amalgamation) if the issuance
of such securities has been approved by the Board pursuant to Article IV
and pursuant to Schedule IV hereof, as applicable, or (b) the
licensing or acquisition of intellectual property for use in the Business if
the issuance of such securities has been approved by the Board pursuant to Article IV
and/or pursuant to Schedule IV hereof, as applicable.

 

“Notice of
Issuance” has the meaning specified in Section 7.02(b).

 

“Offer Price”
has the meaning specified in Section 5.04(b).

 

“Offering
Notice” has the meaning specified in Section 5.04(b).

 

“Offered
Securities” has the meaning specified in Section 5.04(b).

 

“Offering
Securityholder” has the meaning specified in Section 5.04(a).

 

“Other
Securityholders” has the meaning specified in Section 5.05(a).

 

“Parent”
has the meaning specified in the Preamble.

 

“Percentage”
has the meaning specified in Section 5.05(b).

 

“Permitted
Transferee” means, with respect to a specified Person, (i) any
Affiliate of such Person, provided such Person is not a competitor of the
Company, as unanimously determined by the Board, (ii) a donee of Shares
who is a member of the family of such Person or any trust for the benefit of
any such family member and (iii) a transferee of Shares who receives such
Shares by will or the laws of descent and distribution.  For purposes of this definition, the word
“family” shall include any spouse, lineal ancestor or descendant, brother or
sister.

 

“Person”
means any individual, partnership, firm, corporation, association, trust,
unincorporated organization or other entity, as well as any syndicate or group
that would be deemed to be a person under Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended.

 

“Prospective
Transferee” has the meaning specified in Section 5.06.

 

“Qualified
Initial Public Offering” means a public offering of shares of Common Stock
of the Company that (i) yields actual cash proceeds to the Company in
excess of US$25 million and at an effective per share offering price that is
not less than fifty (50%) percent greater than the effective per share price of
the shares of Common Stock issued to Goyaike hereunder, (ii) is
underwritten by a reputable underwriter reasonably acceptable to both Goyaike
and the Company and (iii) is effected in conjunction with such shares
being listed for trading on a national securities exchange.

 

4

 

“Required
Number of Directors” has the meaning specified in Section 4.05.

 

“Remaining
Offered Securities” has the meaning specified in Section 5.04(d)(i).

 

“Sale”
means any sale, assignment, transfer, distribution or other disposition of
Shares or of a participation therein, whether voluntarily or by operation of
Law.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

 

“Securities
Purchase Agreement” has the meaning specified in the Recitals.

 

“Securityholder”
means each holder or Beneficial Owner of Common Stock or any security
convertible into, or exchangeable for, Common Stock who is or hereafter becomes
a party to this Agreement or the rightful and permitted assignee or successor
of such a party.

 

“Stockholder
Directors” has the meaning specified in Section 4.02. 

 

“Securityholder
Option Period” has the meaning specified in Section 5.04(d).

 

“Selling
Securityholder” has the meaning specified in Section 5.05(a). 

 

“Share” means
any share of Common Stock.

 

“Subsidiary”
means any and all corporations, partnerships, joint ventures, associations and
other entities Controlled by the Company directly or indirectly through one or
more intermediaries.

 

“Tag-Along
Notice” has the meaning specified in Section 5.05(a).

 

“Tag-Along
Option” has the meaning specified in Section 5.05(b).

 

“Third Party”
means, with respect to any Securityholder, any other Person (other than a
Permitted Transferee of such Securityholder).

 

“Voting Interest”
means one Share of Common Stock of the Company and any other share of Capital
Stock issued by the Company, the holders of which are ordinarily, in the
absence of contingencies, entitled to vote in the election of the Company’s
directors (or Persons performing similar functions), or the approval of its
management and policies, even if the right to vote has been suspended by the
occurrence of a contingency.

 

5

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY, PARENT AND ACT

 

Each of the
Company, Parent and ACT jointly and severally represents and warrants to
Goyaike as follows:

 

SECTION 2.01                                            Due
Organization and Authority of the Company, Parent and ACT.  Each of the Company, Parent and ACT is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all necessary power and authority to enter into this
Agreement, to carry out its obligations hereunder and to perform the actions
contemplated hereby.  Each of the
Company, Parent and ACT is duly licensed or qualified to do business and is in
good standing in each jurisdiction in which the properties owned or leased by
it or the operation of its business makes such licensing or qualification
necessary, except to the extent that the failure to be so licensed or qualified
would not prevent or materially hinder the performance of the actions
contemplated by this Agreement.  The
execution and delivery of this Agreement by each of the Company, Parent and
ACT, the performance by each of the Company, Parent and ACT of its obligations
hereunder and the performance by each of the Company, Parent and ACT of the
actions contemplated hereby have been duly authorized by all requisite action
on the part of the Company, Parent and ACT, as applicable.  This Agreement has been duly executed and
delivered by each of the Company, Parent and ACT, and (assuming due
authorization, execution and delivery by the other Persons signatory hereto)
this Agreement constitutes a legal, valid and binding obligation of each of the
Company, Parent and ACT, enforceable against each of the Company, Parent and
ACT in accordance with its terms.

 

SECTION 2.02                                            No
Conflict.  The execution, delivery
and performance of this Agreement by each of the Company, Parent and ACT do not
and will not (a) violate, conflict with or result in the breach of any
provision of the Certificate of Incorporation or By-laws of the Company, Parent
or ACT, (b) conflict with or violate any Law applicable to the Company, Parent
or ACT or any of their respective assets, properties or businesses or (c)
conflict with, result in any breach of, constitute a default (or event which
with the giving of notice or lapse of time, or both, would become a default)
under, require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, or result
in the creation of any Encumbrance on any of the Company’s, Parent’s or ACT’s
assets or properties pursuant to, any note, bond, mortgage or indenture,
contract, agreement, lease, sublease, license, permit, franchise or other
instrument or arrangement to which the Company, Parent or ACT is a party or by
which any of their respective assets or properties is bound or affected.

 

SECTION 2.03                                            Governmental
Consents and Approvals.  The
execution, delivery and performance of
this Agreement by each of the Company, Parent and ACT do not and will
not require any consent, approval, authorization or other order of, action by,
filing with or notification to, any governmental authority.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF GOYAIKE

 

Goyaike represents
and warrants to the Company, Parent and ACT as follows:

 

SECTION 3.01.                                         Organization
and Authority.  Goyaike is a
corporation duly incorporated or organized, validly existing and in good
standing under the laws of the Republic

 

6

 

of Argentina and has all
necessary power and authority to enter into this Agreement, to carry out its
obligations hereunder and to perform the actions contemplated hereby.  Goyaike is duly licensed or qualified to do
business and is in good standing in each jurisdiction in which the properties
owned or leased by it or the operation of its business makes such licensing or
qualification necessary, except to the extent that the failure to be so
licensed or qualified would not prevent or materially hinder the performance of
the actions contemplated by this Agreement.  The execution and delivery of this Agreement
by Goyaike, the performance by it of its obligations hereunder and the
performance by it of the actions contemplated hereby have been duly authorized
by all requisite action on its part.  This
Agreement has been duly executed and delivered by Goyaike, and (assuming due
authorization, execution and delivery by the other Persons signatory thereto)
this Agreement constitutes a legal, valid and binding obligation of Goyaike
enforceable against it in accordance with its terms.

 

SECTION 3.02.                                         No
Conflict.  Assuming that all
consents, approvals, authorizations and other actions described in Section 3.03
have been obtained, the execution, delivery and performance of this Agreement
by Goyaike do not and will not (a) violate, conflict with or result in the
breach of any provision of its Certificate of Incorporation or By-laws (or
similar organizational documents), (b) conflict with or violate any Law
applicable to it or any of its assets, properties or businesses or (c) conflict
with, result in any breach of, constitute a default (or event which with the
giving of notice or lapse of time, or both, would become a default) under,
require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, or result
in the creation of any Encumbrance on any of Goyaike’s assets or properties
pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to
which Goyaike is a party or by which any of its assets or properties is bound
or affected.

 

SECTION 3.03.                                         Governmental
Consents and Approvals.  The
execution, delivery and performance of this Agreement by Goyaike do not and
will not require any consent, approval, authorization or other order of, action
by, filing with or notification to, any governmental authority, except to the
extent that obtaining any such consent, approval, authorization or other order,
or making such filing or notification would not prevent or materially hinder
the performance of the actions contemplated by this Agreement.

 

ARTICLE IV

CORPORATE GOVERNANCE

 

SECTION 4.01.                                         Agreement
to Vote.  The Securityholders agree
to vote all of their shares of Capital Stock, and the Company agrees to take
all necessary measures, in order to carry out the agreements set forth in this Article IV,
and to prevent any action by the Company or the Securityholders that is
inconsistent with such agreements.

 

SECTION 4.02.                                         Election
of Directors; Voting.  The number of
directors constituting the Board of the Company, as fixed from time to time by
the Board in accordance with the Company’s By-laws, shall initially be five (5).  Notwithstanding any provision to the

 

7

 

contrary in the Company’s
Certificate of Incorporation or By-laws, for so long as Goyaike holds or
Beneficially Owns at least ten (10%) percent of the outstanding Common Stock of
the Company on a fully diluted basis, the number of directors constituting the
Board shall not be changed without the consent of Goyaike.  With respect to each election of directors of
the Company, whether at a special or annual meeting and whether by vote or by
consent (in each case, in accordance with the provisions for electing directors
set forth in the Company’s Certificate of Incorporation and By-laws), the
Securityholders shall vote all of the shares of Capital Stock of the Company
held and/or Beneficially Owned by them or consent in writing with respect to
such shares as follows: (i) two (2) directors shall be designated by Goyaike
and approved by the holders and/or Beneficial Owners of at least a majority of
the then outstanding shares of Common Stock (the “Goyaike Directors”),
provided that Goyaike owns at least twenty (20%) percent of the outstanding
shares of Common Stock of the Company on a fully diluted basis; (ii) one (1)
director shall be designated by Goyaike and approved by the holders and/or
Beneficial Owners of at least a majority of the then outstanding shares of
Common Stock, provided that Goyaike owns less than twenty (20%) percent, but at
least ten (10%) percent, of the outstanding shares of Common Stock of the
Company on a fully diluted basis; and (iii) three (3) directors (the “Securityholder
Directors”) shall be designated and approved by the holders and/or
Beneficial Owners of a majority of the then outstanding Common Stock, other
than Goyaike, for so long as there are two (2) Goyaike Directors, and four (4)
directors shall be designated and approved by the holders and/or Beneficial
Owners of a majority of the then outstanding Common Stock, other than Goyaike,
for so long as there is one (1) Goyaike Director.

 

SECTION 4.03.                                         Nomination
and Election of Directors.  Goyaike’s
initial nominees for the Board shall be as set forth in Schedule III
hereto.  Notwithstanding any provision to
the contrary in the Company’s Certificate of Incorporation or

By-laws, if not already named by the Company’s existing Board, the
Securityholders shall act to elect such nominees as directors as soon as
practicable by written consent or at a securityholders’ meeting to he held as
promptly as practicable hereafter.  Hereafter,
notwithstanding any provision to the contrary in the Company’s Certificate of
Incorporation or By-laws, Goyaike shall make the nominations to which they are
entitled hereunder not later than thirty (30) days prior to each annual meeting
of the Company’s securityholders, and the Board shall be elected at such
meeting or by written consent in accordance herewith.

 

SECTION 4.04.                                         Removal;
Vacancies.  Notwithstanding any
provision to the contrary in the Company’s Certificate of Incorporation or
By-laws, a director shall be removed only by the party with the power to
designate such director and the Securityholders shall vote all of their shares
of Capital Stock of the Company to remove any director whose removal is
required by the party with the power to designate such director.  Notwithstanding any provision to the contrary
in the Company’s Certificate of Incorporation or By-laws, if, as a result of
death, disability, retirement, resignation, removal (with or without cause) or
otherwise, there shall exist or occur any vacancy in the Board, then, if the
departed director was designated by Goyaike, Goyaike shall be entitled to
designate in writing one nominee for election to fill such vacancy and if the
departed director was designated by the holders of at least a majority of the
then outstanding Common Stock, then such holders of Common Stock shall be
entitled to designate in writing one nominee for election to fill such vacancy.
 The Securityholders shall as soon as
practicable after such nomination is made act to elect such nominee to the
Board.  Any director elected pursuant to
this Section 4.04 shall serve until the next annual election of directors.

 

8

 

SECTION 4.05                                            Quorum;
Certain Actions.  Notwithstanding any
provision to the contrary in the Company’s Certificate of Incorporation or
By-laws, subject to the immediately following sentence, at least four (4)
Directors shall be present in person at any meeting of the Board in order to
constitute a quorum for the transaction of business at such meeting, and,
except with respect to Consent Events or as otherwise set forth in this
Agreement or as required by Law or by the Company’s Certificate of
Incorporation and By-laws, the vote of a majority of those directors present at
any such meeting at which a quorum is present shall be necessary for the
passage of any resolution or act of the Board; provided, however,
that, subject to the following sentence, in the event a meeting of the Board
has been duly noticed and a quorum is not present on two (2) consecutive
meeting dates, then only three (3) directors present in person at the next
immediately scheduled meeting shall constitute a quorum for the transaction of
business at such meeting.  Notwithstanding
any other provision of this Agreement or the Company’s Certificate of
Incorporation or By-laws, for so long as Goyaike holds or Beneficially Owns at
least ten (10%) of the outstanding shares of Common Stock on a fully diluted
basis, any Consent Event shall be taken by the Company only upon (and the
Company, and the Board on behalf of the Company, shall not take such action
without) the prior affirmative vote or written consent of at least one (1)
Goyaike Director.  For purposes of this
Agreement, a “Consent Event” shall mean any of the matters set forth on Schedule IV
attached hereto.

 

SECTION 4.05.                                         Audit
Committee.  The Company shall
establish and maintain an Audit Committee, which shall consist of three (3)
members of the Board, including one (1) director nominated by Goyaike for so
long as Goyaike holds or Beneficially Owns at least ten (10%) percent of the
outstanding shares of Common Stock on a fully diluted basis.

 

SECTION 4.06.                                         Compensation
Committee.  The Company shall
establish and maintain a Compensation Committee of the Board.  The Compensation Committee shall consist of
three (3) members of the Board, including one (1) director nominated by Goyaike
for so long as Goyaike holds or Beneficially Owns at least ten (10%) percent of
the outstanding shares of Common Stock on a fully diluted basis.

 

ARTICLE V

TRANSFER OF SHARES

 

SECTION 5.01.                                         General
Restriction.  No Securityholder
shall, directly or indirectly, make or solicit any Sale of any Share except in
compliance with the Securities Act and this Agreement.

 

SECTION 5.02.                                         Legends.
 The Company shall affix to each
certificate evidencing Shares issued to Securityholders a legend in
substantially the following form:

 

“THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN
ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE

 

9

 

SECURITIES
ACT OF 1933 OR AN EXEMPTION THEREFROM AND, IN EACH CASE, IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES LAWS.

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AS SET FORTH IN A SECURITYHOLDERS’ AGREEMENT DATED AS OF NOVEMBER 20,
2001, AS IT MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE AT THE
PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY.  NO REGISTRATION OF TRANSFER OF THESE SHARES
WILL BE MADE ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL SUCH RESTRICTIONS
SHALL HAVE BEEN COMPLIED WITH.”

 

SECTION 5.03.                                         Certain
Restrictions on Transfer of Shares.  No
Securityholder shall, directly or indirectly (through the transfer of capital
stock of any Person that holds, or controls any Person that holds, such
Shares), make or solicit any Sale of any Share of Common Stock Beneficially
Owned by such Securityholder, other than

 

(i)                                     any
Sale to a Permitted Transferee,

 

(ii)                                  any
Sale of Shares of Common Stock that is made in compliance with the procedures,
and subject to the limitations, set forth in Sections 5.04 and 5.05 hereof,

 

(iii)                               any Sale in connection
with a merger of the Company or a sale of all or substantially all of its
assets or other similar business combination that has been approved by the
Board in accordance with the provisions of Section 4.05 and Schedule IV
hereof,

 

(iv)                              any
Sale in connection with the merger of Goyaike or a sale of all or substantially
all of its assets or other similar business combination that has been approved
by Goyaike’s Board of Directors (except that no Sale of Shares shall be
permitted under this Section 5.03(a)(iv) to any of the competitors of the
Business identified on Schedule V attached hereto), and

 

(v)                                 any
Sale in connection with the merger of Parent or ACT or a sale of all or
substantially all of Parent’s or ACT’s assets or other similar business
combination that has been approved by Parent’s or ACT’s Board of Directors, as
applicable, except that no Sale of Shares shall be permitted under this Section 5.03(a)(v)
to any of the competitors of the Business identified on Schedule V
attached hereto.

 

Notwithstanding
the foregoing, except as otherwise expressly provided in this Agreement, all
Sales permitted by the foregoing clauses (i) through (v) shall be subject to,
and shall not be made other than in compliance with, the provisions of this Article V.

 

(b)  No Sale of Shares to a Permitted Transferee
shall be effective if a purpose or effect of such transfer shall have been to
circumvent the provisions of this Section 5.03, Section 5.04 or Section 5.05.  Each Securityholder shall remain responsible
for the performance of this

 

10

 

Agreement by each
Permitted Transferee of such Securityholder to which Shares are transferred,
except if such Permitted Transferee received such Shares by will or the laws of
descent and distribution.  If any
Permitted Transferee to which Shares are transferred pursuant to clause (i) of Section 5.03(a)
is not a natural Person and ceases to be a Permitted Transferee of the
Securityholder from which or whom it acquired such Shares pursuant to such
provision, such Person shall reconvey such Shares to such transferring
Securityholder immediately before such Person ceases to be a Permitted
Transferee of such transferring Securityholder so long as such Person knows of
its upcoming change of status immediately prior thereto.  If such change of status is not known until
after its occurrence, the former Permitted Transferee shall make such transfer
to such transferring Securityholder as soon as practicable after the former
Permitted Transferee receives notice thereof.

 

SECTION 5.04.                                         Right
of First Offer.  If any
Securityholder (the “Offering Securityholder”) proposes to make a Sale
of all or any portion of its Shares to a Person other than to a Permitted
Transferee of the Offering Securityholder or other than as permitted under Section 5.03
hereof:

 

(b)  The Offering Securityholder shall offer such
Shares first to the Company, by sending written notice (an “Offering Notice”)
to the Company, with a copy to Parent, if Parent is not the Offering
Securityholder, and a copy to Goyaike, if Goyaike is not the Offering Securityholder,
which Offering Notice shall state (i) the number of Shares proposed to be sold (the
“Offered Securities”), (ii) the proposed purchase price per Share of the
Offered Securities (the “Offer Price”), (iii) the proposed terms and
conditions of such Sale and (iv) the proposed purchaser of the Shares.  Upon delivery of the Offering Notice, such
offer shall be irrevocable unless and until the rights of first offer provided
for herein shall have been waived or shall have expired.

 

(c)  For a period of fifteen (15) days after
delivery of the Offering Notice pursuant to Section 5.04(b) (the “Company
Option Period”), subject to Section 5.04(g) hereof, the Company shall
have the right (the “Company Option”) to purchase any or all of the
Offered Securities at a purchase price equal to the Offer Price and otherwise
upon the terms and conditions set forth in the Offering Notice.  The right of the Company to purchase any or
all of the Offered Securities under this Section 5.04 shall be exercisable
by delivering written notice of the exercise thereof, prior to the expiration
of the Company Option Period, to the Offering Securityholder, with a copy to
each of Parent and Goyaike, provided they are not the Offering Securityholder,
which notice shall state the number of Offered Securities proposed to be purchased
by the Company.  The failure of the
Company to respond within such 15 day period shall be deemed to be a waiver of
the Company Option, provided that the Company may waive its rights under this Section 5.04
prior to the expiration of the Company Option Period by giving written notice
to the Offering Securityholder, with a copy to each of Parent and Goyaike, provided
they are not the Offering Securityholder.

 

(d)  If the Company does not elect to purchase all
of the Offered Securities pursuant to this Section 5.04, then for a period
of fifteen (15) days (the “Securityholder Option Period”) after the
earlier to occur of (i) the expiration of the Company Option Period pursuant to
this Section 5.04 and (ii) the date upon which the Company delivers
written notice of its partial

 

11

 

exercise of the Company
Option pursuant to this Section 5.04 or its waiver thereof and subject to Section 5.04(g):

 

(i)                                     Provided
that it is not the Offering Securityholder, Parent shall have the right to purchase
that percentage of the Offered Securities not offered to be purchased by the
Company (the “Remaining Offered Securities”) determined by dividing (A)
the number of Shares owned by Parent at the time the Offering Notice is
delivered pursuant to this Section 5.04 by (B) the number of Shares owned
by Parent and Goyaike (provided that if Goyaike is the Offering Securityholder,
those Shares owned by Goyaike shall not be included in this calculation) at the
time the Offering Notice is delivered pursuant to this Section 5.04, plus
any of the Remaining Offered Securities that Goyaike does not elect to purchase
pursuant to Section 5.04(d)(ii), at a purchase price equal to the Offer
Price and otherwise upon the terms and conditions set forth in the Offering
Notice; and

 

(ii)                                  Provided
that it is not the Offering Securityholder, Goyaike shall have the right to
purchase that percentage of the Remaining Offered Securities determined by
dividing (A) the number of Shares owned by Goyaike at the time the Offering
Notice is delivered pursuant to this Section 5.04 by (B) the number of
Shares owned by Parent and Goyaike (provided that if Parent is the Offering
Securityholder, those Shares owned by Parent shall not be included in this
calculation) at the time the Offering Notice is delivered pursuant to this Section 5.04,
plus any of the Remaining Offered Securities that Parent does not elect
to purchase pursuant to Section 5.04(d)(i), at a purchase price equal to
the Offer Price and otherwise upon the terms and conditions set forth in the
Offering Notice.

 

(e)  The rights of Parent and Goyaike to purchase
any or all of the Remaining Offered Securities under this Section 5.04
shall be exercisable by delivering written notice of the exercise thereof,
prior to the expiration of the Securityholder Option Period, to the Offering
Securityholder.  Such notice shall state
the number of Offered Securities proposed to be purchased from the Offering
Securityholder.  The failure of Parent or
Goyaike to respond within the Securityholder Option Period to the Offering
Securityholder shall be deemed to be a waiver by such Person of its respective
rights under this Section 5.04; provided that either Parent or Goyaike may
waive its rights under this Section 5.04 prior to the expiration of the
Securityholder Option Period by giving written notice to the Offering
Securityholder with a copy to each of the Company and Parent or Goyaike, as
applicable.

 

(f)  The closing of the purchases of the Offered
Securities by the Company, Parent and/or Goyaike under Section 5.04 shall
be held at the executive offices of the Company at 11:00 a.m., local time, on
the thirtieth (30th) day after delivery of the Offering Notice
pursuant to this Section 5.04 or at such other time and place as the
parties to the transaction may agree.  At
such closing, the Offering Securityholder shall deliver certificates
representing the Offered Securities, duly endorsed for transfer or accompanied
by stock powers duly executed in blank, and accompanied by all requisite
transfer taxes (or evidence of payment thereof), if any, and such Offered
Securities shall be free and clear of any Encumbrance, and the Offering Securityholder
shall so represent and warrant, and shall further represent and warrant that it
is the sole Beneficial Owner of such Offered Securities.  The Company and/or Parent and/or Goyaike, as
the case may be, shall deliver at the closing payment in full in immediately
available

 

12

 

funds of the Offer Price
for the Offered Securities purchased by it.  At such closing, all of the parties to the
transaction shall execute such additional documents as are otherwise reasonably
necessary or appropriate in connection with the purchase and sale of the
Offered Securities.

 

(g)
Notwithstanding anything to the contrary contained in this Section 5.04,
unless the Company and/or Parent and/or Goyaike, individually or in the
aggregate, elect to purchase all, but not less than all, of the Offered
Securities, (i) such parties shall not have the right to purchase any Offered
Securities pursuant to this Section 5.04 and (ii) the Offering
Securityholder may, subject to the other provisions of this Agreement
(including, without limitation, the Tag-Along Right set forth in Section 5.05),
sell all the Offered Securities to the Person identified in, and otherwise on
the terms and conditions set forth in the Offering Notice (including that the
entire purchase price of such sale must paid in cash); provided, however,
such Sale must be consummated within ninety (90) days after delivery of the
Offering Notice pursuant to this Section 5.04; provided  further,
however, that such Sale shall not be consummated unless and until the
Offering Securityholder shall represent in writing to the Company and to Parent
and Goyaike (provided they are not the Offering Securityholder) that such
Person is aware of the rights contained in this Section 5.04. If any sale
to a Person pursuant to this Section 5.04 is not consummated within ninety
(90) days after delivery of the Offering Notice pursuant to this Section 5.04
for any reason, then the restrictions provided for herein shall again become
effective, and no Sale of such Offered Securities may be made thereafter by the
Offering Securityholder without complying with the terms of this Section 5.04.

 

(h)
Anything in this Section 5.04 or in Section 5.03 to the contrary
notwithstanding, the provisions of this Section 5.04 shall not be
applicable to any Sale or Encumbrance described in clause (i), (iii), (iv) or
(v) of Section 5.03(a).

 

SECTION 5.05.                                         Tag-Along
Rights.  Subject to the Right of
First Offer set forth in Section 5.04, if, at any time during the term of
this Agreement, any Securityholder (the “Selling Securityholder”)
proposes to directly or indirectly make a Sale of any of its Shares to a
Person, other than to a Permitted Transferee, the Selling Securityholder shall
provide Parent and/or Goyaike, as applicable (the “Other Securityholders”),
and the Company with not less than fifteen (15) days’ prior written notice of
such proposed Sale (the “Tag-Along Notice”), which Tag-Along Notice
shall state (i) the number of Shares proposed to be sold, (ii) the proposed
purchase price per Share, (iii) the proposed terms and conditions of such Sale
and (iv) the proposed purchaser of the Shares, provided that any Offering
Notice delivered pursuant to Section 5.04(b) shall be deemed to be the
delivery of the Tag-Along Notice if such Offering Notice was delivered at least
fifteen (15) days prior to the date of the proposed Sale.

 

(b) Each
of the Other Securityholders shall have the option (“Tag-Along Option”),
exercisable by written notice to the Selling Securityholder prior to the
earlier of (x) fifteen (15) days after delivery of the Tag-Along Notice
pursuant to this Section 5.05 and (y) the expiration of the Securityholder
Option Period, to require the Selling Securityholder to arrange for such
purchaser or purchasers to purchase the same percentage (the “Percentage”)
of the Shares then Beneficially Owned by such Other Securityholder as the ratio
of (i) the total number of Shares which are to be sold by the Selling
Securityholder pursuant to the proposed Sale to (ii) the total number of Shares
Beneficially Owned by the Selling Securityholder immediately prior to such
Sale, or any lesser amount of Shares as such Other Securityholder shall desire.
 Any such

 

13

 

purchase shall be made at
the same time, and upon the same terms and conditions (including all direct or
indirect consideration or compensation), as the Sale by the Selling
Securityholder of its Shares; provided, however, that such Other
Securityholder shall not be required to agree to indemnity or contribution
provisions in excess of such Other Securityholder’s proceeds from such Sale.

 

(c)  Upon the exercise of the Tag-Along Option,
the Selling Securityholder agrees that it shall either (a) arrange for the
proposed purchaser or purchasers to purchase all or a portion (as each of the
Other Securityholders shall specify) of the same Percentage of the Shares then
Beneficially Owned by each Other Securityholder electing to participate in the
proposed Sale at the same time as and upon the same terms and conditions on
which the Selling Securityholder sells its Shares; provided, however,
that if such purchaser or purchasers shall elect to purchase only such
aggregate number of Shares as originally agreed with the Selling Securityholder,
then the number of Shares to be sold by the Selling Securityholder and each of the
Other Securityholders electing to participate in the proposed sale shall be
reduced pro rata to such aggregate number or (b) not effect the proposed Sale
to such purchaser or purchasers.

 

(d)  In the event that the Other Securityholders
do not exercise their right to participate in such sale or decline to so
participate, the Selling Securityholder shall have ninety (90) days from the
date the Tag-Along Notice was delivered pursuant to this Section 5.05 to consummate
the Sale to the same purchaser and upon the same terms set forth therein
without being required to provide an additional Tag-Along Notice to the Other
Securityholders.

 

(e)  Anything in this Section 5.05 or in Section 5.03
to the contrary notwithstanding, the provisions of this Section 5.05 shall
not be applicable to any Sale described in clause (i), (iii), (iv) or (v) of Section 5.03(a).  Nothing in this Section 5.05 shall
affect any of the rights or obligations of any of the Securityholders under any
other provision of this Agreement.

 

SECTION 5.06.                                         Transferees
to Execute Agreement.  Each
Securityholder agrees that it will not, directly or indirectly, make any Sale
of any Shares Beneficially Owned by such Securityholder unless, prior to the
consummation of any such Sale, the Person to whom such Sale is proposed to be
made (the “Prospective Transferee”) (i) executes and delivers this
Agreement to the Company and each of Parent and Goyaike, and (ii) delivers to
the Company an opinion of counsel, satisfactory in form and substance to the
Company, to the effect that the execution of this Agreement by such Prospective
Transferee makes this Agreement a legal, valid and binding obligation of such
Prospective Transferee enforceable against such Prospective Transferee in
accordance with its terms.  Upon the
execution and delivery by such Prospective Transferee of this Agreement and, if
required, the delivery of the opinion of counsel referred to in clause (ii) of
the preceding sentence, such Prospective Transferee shall be deemed a “Securityholder”
for purposes of this Agreement and shall have the rights and be subject to the
obligations of a Securityholder under this Agreement, in each case with respect
to the Shares Beneficially Owned by such Prospective Transferee.

 

SECTION 5.07.                                         Improper
Sale.  Any attempt not in compliance
with this Agreement to make any Sale of any Shares shall be null and void and
of no force and effect, the

 

14

 

purported transferee
shall have no rights or privileges in or with respect to the Company, and the
Company shall not give any effect in the Company’s stock records to such
attempted Sale.

 

ARTICLE VI

[INTENTIONALLY DELETED]

 

ARTICLE VII

ADDITIONAL AGREEMENTS

 

SECTION 7.01.                                         New
Securityholders to Execute Agreement.  The Company shall not, at any time prior to
its initial public offering, issue any Shares of Common Stock, or resell any
Shares of Common Stock held in its treasury, or issue or resell any security
convertible or exchangeable into Common Stock, unless prior to the consummation
of any such issuance or Sale, each Person to whom such security is proposed to
be issued or sold executes and delivers this Agreement to the Company and each
of Parent and Goyaike.  Upon the
execution and delivery by any Person of this Agreement, Schedule I hereto
shall be revised to include the name of such Person and such Person shall be
deemed a “Securityholder” for purposes of this Agreement and shall have the
rights and be subject to the obligations of a Securityholder as such under this
Agreement.

 

SECTION 7.02.                                         Rights
to Purchase New Securities.  In the
event that the Company proposes to issue New Securities (prior to, and other
than in connection with, a Qualified Initial Public Offering), each of Parent,
ACT and Goyaike shall have the right to purchase in lieu of the Person to whom
the Company proposed to issue such New Securities, in accordance with paragraph
(b) below, a number of Shares or other New Securities which the Company
proposes to issue equal to the product of (i) the total number or amount of
Shares or other New Securities which the Company proposes to issue at such time
and (ii) a fraction, the numerator of which shall be the total number of Voting
Interests which Parent, ACT or Goyaike, as applicable, holds or Beneficially
Owns at such time, and the denominator of which shall be the total number of
Voting Interests then outstanding.  The
rights given by the Company under this Section 7.02 shall terminate if
unexercised within thirty (30) days after receipt of the Notice of Issuance
referred to in paragraph (b) below.

 

(b)  In the event that the Company proposes to
undertake an issuance of New Securities (prior to, and other than in connection
with, a Qualified Initial Public Offering), it shall give written notice (a “Notice
of Issuance”) of its intention to each of Parent, ACT and Goyaike,
describing all material terms of the New Securities and the price and all
material terms upon which the Company proposes to issue such New Securities.  Each of Goyaike, Parent and ACT, as
applicable, shall have thirty (30) days from the date of the Notice of Issuance
to agree to purchase all or any portion of its pro rata share of such New
Securities (as determined pursuant to paragraph (a) above) for the same
consideration, if such consideration shall consist solely of cash, or for cash,
cash equivalents or marketable securities having an equivalent value to the

 

15

 

consideration payable by
the Person to whom the Company proposes to issue such New Securities at the
time of payment, and otherwise upon the terms specified in the Notice of
Issuance by giving written notice to the Company, and stating therein the
quantity of New Securities to be purchased by such Securityholder.

 

SECTION 7.03.                                         Further
Assurances.  Each party to this
Agreement shall use reasonable efforts to take, or cause to be taken, all
appropriate action, and to do, or cause to be done, all things necessary,
proper or advisable under applicable Laws to consummate and make effective the
transactions contemplated hereunder, including, without limitation, using
reasonable efforts to obtain all licenses, permits, consents, approvals,
authorizations, qualifications and orders of any applicable governmental
entities.  Each of the parties shall
cooperate with the other when required in order to effect the transactions
contemplated hereunder.  In case at any
time after the date hereof, any further action is necessary or desirable to
carry out the purposes of this Agreement, the proper officers and directors of
each of the parties shall use all reasonable efforts to take all such action.

 

SECTION 7.04.                                         Restriction
on Transactions with Affiliates.  Except for transactions expressly contemplated
by this Agreement or as otherwise approved by the Goyaike Directors pursuant to
Article IV hereof, the Company shall not enter into any transaction,
arrangement, agreement or understanding with any director, officer, employee,
or holder of more than five (5%) percent of the outstanding shares of any class
or series of Capital Stock of the Company, any member of the family of such
Person, or any corporation, partnership, trust, or other entity in which any
such Person, or member of the family of such Person, is a director, officer,
trustee, partner, or holder of more than five (5%) percent of the outstanding
capital stock thereof, except for transactions on customary terms related to
such Person’s employment.

 

SECTION 7.05.                                         Information
Rights.  The Company shall deliver
the following reports to Goyaike:

 

(i)                                     As
soon as practicable after the end of each fiscal year of the Company, and in
any event within ninety (90) days thereafter, the balance sheet of the Company,
as of the end of such fiscal year, and a statement of income and statement of
cash flow of the Company for such fiscal year, in each case, in accordance with
U.S. generally accepted accounting principals and as audited by the Company’s
accountants.

 

(ii)                                  As
soon as practicable after the end of each quarter and in any event within
forty-five (45) days thereafter, an unaudited balance sheet and statements of
income and cash flow of the Company for such quarter and for the year to date,
in each case prepared in accordance with U.S. generally accepted accounting
principals,

 

(b)  Goyaike shall also have the right to visit and
inspect any of the properties, books or records of the Company and to discuss
its affairs, finances and accounts with officers, all at such reasonable times
during normal business hours and as often as may be reasonably requested.

 

SECTION 7.06.                                         Dividend
Rights.  For so long as Goyaike holds
or Beneficially Owns at least ten (10%) of the outstanding shares of Common
Stock on a fully diluted basis, the

 

16

 

Company shall be required
to, and Parent, ACT and the Board shall cause the Company to, declare and pay
in cash to each holder or Beneficial Owner of shares of Common Stock on a
quarterly basis its pro rata share of the Dividend Amount (as defined below);
provided, however, that the Company shall have no obligation to declare or pay
to such Persons the Dividend Amount until such time as the Company has achieved
eight (8) separate quarters of positive EBITDA, as determined by the Board (it
being understood that this provision does not require the Company to achieve eight
(8) consecutive quarters of positive EBITDA before it is required to declare
and pay the Dividend Amount). For purposes of this Agreement, the Dividend
Amount shall be equal to thirty (30%) percent of Net Income (as defined herein)
for the applicable quarterly period.  Mandatory
dividends under this Section 7.06 shall not be declared and paid in
violation of applicable Law, and shall in no event be paid in violation of any
of the Company’s contractual commitments to third parties prohibiting such
payments as such commitments may exist from time to time; provided, however,
that the Company shall not enter into any such contractual commitments
prohibiting the payment of such dividends without the prior written consent of
Goyaike.

 

ARTICLE VIII

MISCELLANEOUS

 

SECTION 8.01.                                         Termination.
 This Agreement shall terminate:

 

(a)  upon the
mutual written agreement of the Company, Parent and/or ACT, on the one hand,
and Goyaike, on the other hand;

 

(b)  upon the
expiration of all rights created hereunder; or

 

(c)  immediately
prior to a Qualified Initial Public Offering of Shares of the Company.

 

SECTION 8.02.                                         Expenses.
 Except as otherwise specified in this
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs and expenses.

 

SECTION 8.03.                                         Notices.
 All notices, requests, claims, demands
and other communications hereunder shall be in writing and shall be given or
made (and shall be deemed to have been duly given or made upon receipt) by
delivery in Person, by courier service, by telecopy or by registered or
certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 8.03):

 

17

 

a)  if to Parent
or ACT:

 

Advanced Cell Technology, Inc.

One Innovation Drive

Worcester, Massachusetts 01605

 

Telecopy:
(508) 756-0931

Attention:
Dr. Michael D. West, President

 

with
a copy to:

 

Pierce
Atwood

One
Monument Square

Portland,
Maine 04101

 

Telecopy:
(207) 791-1350

Attention:
William L. Worden, Esq.

Christopher
E. Howard, Esq.

 

b)  if to the Company:

 

Cyagra,
Inc.

One
Innovation Drive

Worcester,
Massachusetts 01605

 

Telecopy:
(508) 756-0931

Attention:
Dr. Michael D. West, President

 

with
a copy to:

 

Pierce
Atwood

One
Monument Square

Portland,
Maine 04101

 

Telecopy:
(207) 791-1350

Attention:
William L. Worden, Esq.

 

18

 

c) if
to Goyaike:

 

Goyaike
S.A.

Av,
do Mayo 701, Piso 16

Buenos
Aires, Argentina

 

Telecopy:
(54) 3488-436300

Attention:
Mr. Ricardo Hosel

 

with
a copy to:

 

Shearman
& Sterling

599
Lexington Avenue

New
York, NY 10022

 

Telecopy:
(212) 848-7179

Attention:
Alfred J. Ross, Esq.

 

(a)  if to any
other Securityholder, then to the address or telecopy number set forth opposite
such Person’s name on Schedule I or II attached hereto.

 

SECTION 8.04.                                         Public
Announcements.  Except as required by
Law, no party to this Agreement shall make, or cause to be made, any press
release or public announcement in respect of this Agreement without the prior
written consent of the other party, and the parties shall cooperate as to the timing
and contents of any such press release or public announcement.

 

SECTION 8.05.                                         Headings.
 The descriptive headings contained in
this Agreement are for convenience of reference only and shall not affect in
any way the meaning or interpretation of this Agreement.

 

SECTION 8.06.                                         Severability.
 If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any Law, all other
terms and provisions of this Agreement shall nevertheless remain in full force
and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any
party.  Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the greatest possible extent.

 

19

 

SECTION 8.07.                                         Entire
Agreement.  This Agreement, the
Securities Purchase Agreement and the Management Services and Intellectual
Property Agreement constitute the entire agreement of the parties hereto with
respect to the subject matter hereof and supersede all prior agreements and
undertakings of the parties, both written and oral, with respect to the subject
matter hereof.

 

SECTION 8.08.                                         Assignment.
 This Agreement shall not be assigned by
any party without the express written consent of the other parties, except in
connection with any Sale of Shares permitted by, and effected in accordance
with, Article V hereof.

 

SECTION 8.09.                                         No
Third-Party Beneficiaries.  This
Agreement shall be binding upon and inure solely to the benefit of the parties
hereto and their permitted assigns and successors and nothing herein, express
or implied, is intended to or shall confer upon any other Person or entity, any
legal or equitable right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement.

 

SECTION 8.10.                                         Amendment.
 This Agreement may not be amended or
modified except by an instrument in writing signed by, or on behalf of, each of
the Company, Parent and ACT, on the one hand, and Goyaike, on the other hand.

 

SECTION 8.11.                                         Governing
Law.  This Agreement shall be
governed by the laws of the State of New York.  All actions and proceedings arising out of or
relating to this Agreement may be heard and determined in any New York State or
federal court sitting in the City of New York, County of Manhattan, and the
parties hereto hereby irrevocably submit to the nonexclusive jurisdiction of
such courts in any such action or proceeding and irrevocably waive any defense
of an inconvenient forum to the maintenance of any such action or proceeding.

 

SECTION 8.12.                                         Counterparts.
 This Agreement may be executed in one or
more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement.  Copies of executed counterparts transmitted by
telecopy or other electronic transmission service shall be considered original
executed counterparts for purposes of this Section 8.12, provided that
receipt of copies of such counterparts is confirmed.

 

SECTION 8.13.                                         Specific
Performance.  The parties hereto
agree that irreparable damage would occur in the event any provision of this
Agreement were not performed in accordance with the terms hereof and that the
parties shall be entitled to specific performance of the terms hereof, in
addition to any other remedy at Law or equity.

 

SECTION 8.14.                                         Waiver
of Jury Trial.  Each of the parties
hereto irrevocably and unconditionally waives trial by jury in any legal action
or proceeding relating to this Agreement or the transactions contemplated
hereby and thereby and for any counterclaim therein.

 

20

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized signatories hereunto duly authorized as
of the date first above written.

 

	
   

  	
  CYAGRA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael
  West

  	
   

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL WEST

  
	
   

  	
   

  	
  Title:

  	
  PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANCED CELL
  TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael
  West

  	
   

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL WEST

  
	
   

  	
   

  	
  Title:

  	
  PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  A.C.T. GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael
  West

  	
   

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL WEST

  
	
   

  	
   

  	
  Title:

  	
  PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOYAIKE S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Ricardo
  Hosel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ricardo Hosel

  
	
   

  	
   

  	
  Title:

  	
  Attorney in Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Alejandro
  Cantarelli

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Alejandro Cantarelli

  
	
   

  	
   

  	
  Title:

  	
  Attorney in Fact

  
					

 

 

SCHEDULE I

 

LIST OF PERSONS WHO BECOME SIGNATORIES HERETO
SUBSEQUENT TO THE

DATE HEREOF

 

	
  Securityholders

  	
   

  	
  Address

  	
   

  	
  Date

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE II

ADDRESSES OF CERTAIN
SECURITYHOLDERS

 

 

SCHEDULE III

 

GOYAIKE’S INITIAL
NOMINEES TO THE BOARD OF DIRECTORS

 

	
  Securityholder

  	
   

  	
  Nominee

  
	
   

  	
   

  	
   

  
	
  Goyaike

  	
   

  	
  Ricardo Hosel

  
	
  Goyaike

  	
   

  	
  Alejandro Cantarelli

  

 

 

SCHEDULE IV

 

CONSENT EVENTS

 

Each
of the following matters shall be a Consent Event:

 

(a)  altering, amending or repealing the Certificate
of Incorporation or By-laws of the Company;

 

(b)  authorizing or issuing any shares of Capital
Stock of the Company (excluding any debt securities), or any option, warrant,
purchase or subscription right or any other security convertible, exchangeable
or exercisable into shares of Capital Stock of the Company (excluding any debt
securities), except in conjunction with any of the following: (i) except with
respect to a public offering of shares, the issuance of shares of Common Stock
(other than in connection with the issuance of shares of Common Stock or
securities convertible or exchangeable into shares of Common Stock (a “Common
Stock Equivalent”) in connection with any exchange of options as contemplated
by clause (ii) below) in which the effective per share price of the Common
Stock is fifty (50%) percent greater than the effective per share price of the
shares of Common Stock issued to Goyaike hereunder, (ii) the issuance to
employees, officers and directors of options convertible or exercisable into
shares of Common Stock pursuant to an incentive stock option plan that is to be
administered by the Board and which shall consist often (10%) percent of the outstanding
shares of Common Stock of the Company on a fully diluted basis as of the
Closing Date (the “Stock Option Plan”); (iii) the issuance of shares of
Common Stock in a Qualified Initial Public Offering and (iv) the issuance of
shares of Common Stock of the Company to a non-affiliated third party in
consideration of or exchange for intellectual property rights or other assets
that are to be used in the operation of the Business; provided, however,
that the maximum number of shares of Common Stock that may be issued pursuant
to this clause (iii), individually or in the aggregate, shall not exceed that
number of shares which is equal to five (5%)
percent of the outstanding shares of Common Stock of the Company on a
fully diluted basis as of the Closing Date.

 

(c)  commencing any proceeding for the voluntary
winding up, dissolution, liquidation or similar event of the Company;

 

(d)  redeeming, re-purchasing or otherwise
re-acquiring any Common Stock of the Company without first offering pro-rata
redemption, re-purchase or re-acquisition of Goyaike’s Common Stock on the same
terms and conditions as the proposed redemption, re-purchase or re-acquisition;

 

(e)  other than as set forth in the Management
Services and Intellectual Property Agreement, entering into any transaction or
series of transactions with “affiliates” of the Company, as that term is
defined in the Securities Exchange Act of 1934, as amended;

 

(f)  effecting any change in the nature of the
Company’s business away from the Business;

 

 

(g)  amalgamating, consolidating, merging or
entering into any business combination with another company, business, concern,
firm or Person;

 

(h)  entering into or forming any partnership or
joint venture, except in the ordinary course of business;

 

(i)  selling, transferring or otherwise disposing
of any of the Company’s assets, subsidiaries or securities outside the ordinary
course of business;

 

(j)  materially modifying or amending any strategy
for the commercialization of any Intellectual Property that is owned or
licensed by the Company;

 

(k)  acquiring any assets or securities (in one
transaction or in a series of related transactions) which, at the time of such
acquisition, have a fair market value in excess of US$250,000;

 

(1)  entering into any settlement the value of
which exceeds $250,000 or the terms of which materially impact the Company’s
business;

 

(m)  appointing the Company’s President and Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer and/or
Chief Technology Officer or any other officer providing similar functions, and
approving the terms of employment of such person;

 

(n)  authorizing or implementing any stock option
or other equity incentive plan, other than the Stock Option Plan;

 

(o)  declaring, paying or making any cash or
non-cash dividends or distributions of any nature on any Capital Stock of the
Company, except that the Board shall be required to declare and pay to holders
or Beneficial Owners of Common Stock a cash dividend as per Section 7.06
of this Agreement;

 

(p)  commencing litigation other than litigation
(i) commenced in the ordinary course of the Company’s business for amounts
involving less than US$100,000 or (ii) involving trade debt for amounts
involving less than US$100,000;

 

(q)  changing the Company’s outside independent
auditor or accountants, or materially changing its accounting polices, practices
or principles;

 

(r)  approving the Company’s annual operating
budget (it being understood that the annual operating budget for the 2002
fiscal year shall be the operating budget which is included in the Business
Plan attached hereto as Exhibit IV); provided, however, that if
such approval is not obtained or the parties otherwise fail to agree on an
annual operating budget, then the Company shall revert to using the operating
budget from the prior year, except that each budgeted item reflected on the
previous year’s operating budget may be increased or decreased by up to twenty
(20%) percent at the discretion of the Company (the “Default Budget”)(any
such agreed upon or Default Budget being, the “Operating Budget”); and

 

 

(s)  taking any action or otherwise engaging in any
conduct, including without limitation increasing indebtedness, increasing
capital expenditures or increasing operating expenses, that would result in an
increase, decrease or deviation to any budgeted item/category reflected in the
Operating Budget, except that, with respect to each of the following items, the
Company may exceed or otherwise deviate by up to twenty (20%) percent annually
from the budgeted target for such item (as set forth in the applicable
Operating Budget) without obtaining the prior consent of Goyaike:

 

Balance
Sheet Items – current assets; property, plant and equipment; other non-current
assets; current liabilities; intercompany balances; long term liabilities; and
other non-current liabilities, excluding any balance sheet items relating to
recipient herds

 

Income
Statement Items – in-process research and development; research and
development; sponsored research and development; sales, general &
administrative expenses; management contract expenses; and intercompany
expenses and interest expenses

 

	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  

 

 

SCHEDULE V

 

COMPETITORS OF THE
BUSINESS

 

	
  Infigen Inc.

  	
  Prolinea

  
	
  Genetic Savings and
  Clone

  	
  XY Cloning

  
	
  XY Genetics

  	
  Clone Australia

  
	
  XY, Inc.

  	
  Semex

  
	
  Evergreen Biotechnologies

  	
   

  
	
  PPL Theraputics

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  Imclone

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  Genzyme Transgenics

  	
   

  
	
  Geron Corporation

  	
   

  
	
  Bresagen

  	
   

  

 

	
  /s/ [ILLEGIBLE]

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
  /s/ [ILLEGIBLE]Exhibit
10.30.1

 

EXECUTION COPY

 

 

SECURITYHOLDERS’ AGREEMENT

 

among

 

CYAGRA, INC.,

 

ADVANCED CELL TECHNOLOGY, INC.,

 

A.C.T. GROUP, INC.,

 

GOYAIKE S.A.

 

and

 

THE SECURITYHOLDERS HEREAFTER SIGNATORY HERETO

 

dated as of July 1, 2002

 

 

TABLE OF
CONTENTS

 

	
   

  	
  ARTICLE I

  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.01.

  	
  Certain
  Defined Terms

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE II

  REPRESENTATIONS AND WARRANTIES OF THE COMPANY, GROUP AND ACT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.01.

  	
  Due Organization and Authority of the
  Company, Group and ACT

  	
   

  
	
   

  	
  SECTION 2.02.

  	
  No Conflict

  	
   

  
	
   

  	
  SECTION 2.03.

  	
  Governmental Consents and Approvals

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE III
REPRESENTATIONS AND WARRANTIES OF GOYAIKE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.01.

  	
  Organization
  and Authority

  	
   

  
	
   

  	
  SECTION 3.02.

  	
  No Conflict

  	
   

  
	
   

  	
  SECTION 3.03.

  	
  Governmental Consents and Approvals.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE IV

  CORPORATE GOVERNANCE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.01.

  	
  Agreement to Vote

  	
   

  
	
   

  	
  SECTION 4.02.

  	
  Election of Directors; Voting

  	
   

  
	
   

  	
  SECTION 4.03.

  	
  Nomination and Election of Directors

  	
   

  
	
   

  	
  SECTION 4.04.

  	
  Removal; Vacancies

  	
   

  
	
   

  	
  SECTION 4.05.

  	
  Quorum; Certain Actions

  	
   

  
	
   

  	
  SECTION 4.06.

  	
  Audit Committee

  	
   

  
	
   

  	
  SECTION 4.07.

  	
  Compensation Committee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE V

  TRANSFER OF SHARES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.01.

  	
  General
  Restriction

  	
   

  
	
   

  	
  SECTION 5.02.

  	
  Legends

  	
   

  
	
   

  	
  SECTION 5.03.

  	
  Certain Restrictions on Transfer of Shares

  	
   

  
	
   

  	
  SECTION 5.04.

  	
  Right of First Offer

  	
   

  
	
   

  	
  SECTION 5.05.

  	
  Tag-Along Rights

  	
   

  

 

 

	
   

  	
  SECTION 5.06.

  	
  Transferees to Execute Agreement

  	
   

  
	
   

  	
  SECTION 5.07.

  	
  Improper Sale

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VI

  [INTENTIONALLY DELETED]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VII

  ADDITIONAL AGREEMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.01.

  	
  New Securityholders to Execute Agreement

  	
   

  
	
   

  	
  SECTION 7.02.

  	
  Rights to Purchase New Securities

  	
   

  
	
   

  	
  SECTION 7.03.

  	
  Further Assurances

  	
   

  
	
   

  	
  SECTION 7.04.

  	
  Restriction on Transactions with Affiliates

  	
   

  
	
   

  	
  SECTION 7.05.

  	
  Information Rights

  	
   

  
	
   

  	
  SECTION 7.06.

  	
  Dividend Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VIII

  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.01.

  	
  Termination

  	
   

  
	
   

  	
  SECTION 8.02.

  	
  Expenses

  	
   

  
	
   

  	
  SECTION 8.03.

  	
  Notices

  	
   

  
	
   

  	
  SECTION 8.04.

  	
  Public Announcements

  	
   

  
	
   

  	
  SECTION 8.05.

  	
  Headings

  	
   

  
	
   

  	
  SECTION 8.06.

  	
  Severability

  	
   

  
	
   

  	
  SECTION 8.07.

  	
  Entire Agreement

  	
   

  
	
   

  	
  SECTION 8.08.

  	
  Assignment

  	
   

  
	
   

  	
  SECTION 8.09.

  	
  No Third-Party Beneficiaries

  	
   

  
	
   

  	
  SECTION 8.10.

  	
  Amendment

  	
   

  
	
   

  	
  SECTION 8.11.

  	
  Governing Law

  	
   

  
	
   

  	
  SECTION 8.12.

  	
  Counterparts

  	
   

  
	
   

  	
  SECTION 8.13.

  	
  Specific Performance

  	
   

  
	
   

  	
  SECTION 8.14.

  	
  Waiver of Jury Trial

  	
   

  
	
   

  	
   

  
	
  Schedule I

  	
  Subsequent Securityholders

  	
   

  
	
  Schedule II

  	
  Addresses of Securityholders

  	
   

  
	
  Schedule III

  	
  Nominees to Board of Directors

  	
   

  
	
  Schedule IV

  	
  Consent Events

  	
   

  
	
  Schedule V

  	
  Competitors of the Business

  	
   

  
					

 

ii

 

SECURITYHOLDERS’ AGREEMENT

 

This SECURITYHOLDERS’ AGREEMENT (this “Agreement”), dated as of July 1,
2002, among CYAGRA, INC., a Delaware corporation (the “Company”),
ADVANCED CELL TECHNOLOGY, INC., a Delaware corporation (“ACT”), A.C.T.
GROUP, INC., a Delaware corporation (“GROUP”), and GOYAIKE S.A., a
company incorporated under the laws of Argentina (“Goyaike”), and each
Person hereafter signatory to this Agreement.

 

W I  T  N  E  S  S
E  T  H:

 

WHEREAS, the Company is engaged in the business of researching and
developing technology, manufacturing and selling products and providing
services related thereto, in each case, in the field of agriculture, including
researching and developing technology and manufacturing and selling products
that are composed of, made in or derived, extracted or isolated from cloned
non-human domesticated animals (including cattle, goats, sheep, pigs, and other
domesticated animals, but excluding animals of the avian or equine species) or
the cells or tissues, including genes, of such animals for the production of
food or fiber and the rendering of services or uses that relate to the
production of such products, and the production of transgenic animals for the
purposes described above (the “Business”);

 

WHEREAS, pursuant to a Securities Purchase
Agreement, dated July 1, 2002, among the Company, ACT and Goyaike (the “Securities
Purchase Agreement”), Goyaike has agreed to purchase 8,171,000 shares of
the Company’s common stock, par value $0.001 per share (“Common Stock”)
from ACT;

 

WHEREAS, after giving effect to the transactions contemplated by the
Securities Purchase Agreement, Goyaike will own approximately 79% of the
outstanding shares of Common Stock of the Company on a fully diluted basis, and
ACT and Group will collectively own approximately 14.7% of the outstanding
shares of Common Stock of the Company on a fully diluted basis;

 

WHEREAS, the Company is also acquiring a license of certain
intellectual property pursuant to a sublicense agreement, dated July 1,
2002, among Group, ACT, the Company, the University of Massachusetts, Tufts
University and Dr. Chengyu Liu (the “Sublicense Agreement”);

 

WHEREAS, pursuant to a Separation Agreement, dated July 1, 2002,
between the Group, ACT and the Company (the “Separation Agreement”),
Group, ACT and the Company have agreed to take actions necessary to establish
separate business operations for ACT and the Company.

 

WHEREAS,
as a condition to closing the transactions contemplated by this Agreement, on or
prior to the Closing, ACT and the Fleni Foundation (“Fleni”), an
affiliate of the Purchaser, shall agree to the material terms (the “Collaboration
Agreement  Term Sheet”) for a collaboration agreement pursuant to
which ACT shall grant Fleni a license to use ACT Technology (as defined in the
Collaboration Agreement) related to human therapeutic cloning within the
territory of Argentina and the parties shall develop a collaboration program.

 

 

WHEREAS, the parties hereto believe it is in their
respective best interests to terminate the Securityholders’ Agreement, dated as
of November 20, 2001, among the Company, Act, Group and Goyaike and enter
into certain agreements concerning the composition of the Company’s Board (as
defined below), corporate governance, transfer restrictions on the Common Stock
and consent/supermajority rights, all as set forth herein.

 

NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements hereinafter set forth, the parties hereby agree as
follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01.     Certain
Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings:

 

“ACT”
has the meaning specified in the Preamble.

 

“Affiliate” means, with respect to any specified Person, any other
Person that directly, or indirectly through one or more intermediaries,
Controls, is Controlled by, or is under common Control with, such specified
Person.

 

“Agreement” has the meaning specified in the Preamble.

 

“Beneficial Owner” or “Beneficially Own”
has the meaning given such term in Rule 13d-3 under the Exchange Act; provided,
however, that Beneficial Ownership under Rule 13d-3(1)(i) shall
be determined based on whether a Person has a right to acquire Beneficial
Ownership irrespective of whether such right is exercisable within sixty (60)
days of the time of determination.

 

“Board”
means the board of directors of the Company.

 

“Business”
has the meaning specified in the Recitals.

 

“Business Day” means any day that is not a Saturday, a Sunday or
other day on which banks are required or authorized by Law to be closed in The
City of New York, U.S.A. or The City of Buenos Aires, Argentina.

 

“Capital Stock” means, with respect to any
Person at any time, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) of capital
stock, partnership interests (whether general or limited), limited liability
company interests or equivalent ownership interests in such Person.

 

“Common
Stock” has the meaning specified in the Recitals.

 

“Company”
has the meaning specified in the Preamble.

 

2

 

“Company
Option” has the meaning specified in Section 5.04(c).

 

“Company
Option Period” has the meaning specified in Section 5.04(c).

 

“Control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, or as
trustee or executor, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, as trustee or executor, by contract or credit arrangement or
otherwise.

 

“EBITDA”
means earnings before interest, taxes, depreciation and amortization.

 

“Encumbrance”
means any security interest, pledge, bailment (in the nature of a pledge or for
purposes of security), mortgage, deed of trust, the grant of a power to confess
judgment, conditional sale or title retention agreement (including any lease in
the nature thereof), lien (including, without limitation, environmental and tax
liens), charge, encumbrance, easement, reservation, restriction, cloud, adverse
claim, right of first refusal or first offer, option or other similar
arrangement or interest in real or personal property.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

 

“Goyaike”
has the meaning specified in the Preamble.

 

“Goyaike
Directors” has the meaning specified in Section 4.02.

 

“Group”
has the meaning specified in the preamble.

 

“Indebtedness” means, with respect to any
Person, (a) all indebtedness of such Person, whether or not contingent,
for borrowed money, (b) all obligations of such Person for the deferred
purchase price of property or services, other than accounts payable incurred in
the ordinary course of business, (c) all indebtedness created or arising
under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of such Person
or lender under such agreement in the event of default are limited to
repossession or sale of such property), (d) all obligations of such Person
as lessee under leases that have been or should be, in accordance with US GAAP,
recorded as capital leases, (e) all obligations, contingent or otherwise,
of such Person under acceptance, letter of credit or similar facilities, (f) all
Indebtedness of others referred to in clauses (a) through (e) above
guaranteed directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person, and (g) all Indebtedness
referred to in clauses (a) through (e) above secured by (or for which
the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Encumbrance on property (including, without limitation,
accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Indebtedness.

 

“Law” means any U.S. or non-U.S. constitution, law, statute,
treaty, rule, directive, requirement or regulation or governmental order.

 

3

 

“Material Adverse Effect” means any circumstance, change in or
effect on the Company that, individually or in the aggregate with all other
circumstances, changes in or effects on the Company, is or could reasonably be
expected to be materially adverse to the business, operations, properties,
results of operations or condition (financial or otherwise) of the Company,
except for any changes in or effects on the Company principally arising from or
principally relating to (i) the United States or the global economy or the
securities markets generally or (ii) the biomedical industry in general; provided,
however, that in the case of each of clause (i) and (ii) the
Company is not disproportionately affected by such changes or effects compared
to other Persons engaged in similarly situated businesses within the biomedical
industry.

 

“Net Income” means net income as reflected on
the Company’s internal quarterly financial statements as prepared in accordance
with US GAAP.

 

“New Securities” means any Capital Stock of the Company, whether
now authorized or not, and rights, options or warrants to purchase such Capital
Stock, and securities of any type whatsoever that are, or may become,
convertible into or exchangeable or exercisable for Capital Stock of the
Company; provided, however, that the term “New Securities” does
not include (i) shares of Common Stock of the Company which have been
reserved for issuance to employees, officers and directors of the Company
pursuant to an incentive stock option pool administered by the Board consisting
of ten (10%) percent of the outstanding shares of Common Stock of the Company
on a fully diluted basis as of the Closing Date, (ii) securities of the
Company issued in connection with any stock split, stock dividend or
recapitalization of the Company, (iii) securities of the Company issued in
a Qualified Initial Public Offering, or (iv) securities issued in
connection with (a) any acquisition of assets or capital stock or other
equity interest of any other business enterprise (whether such acquisition is
structured as a purchase and sale, merger, consolidation or other amalgamation)
if the issuance of such securities has been approved by the Board pursuant to Article IV
or (b) the licensing or acquisition of intellectual property for use in
the Business if the issuance of such securities has been approved by the Board
pursuant to Article IV.

 

“Notice
of Issuance” has the meaning specified in Section 7.02(b).

 

“Offer
Price” has the meaning specified in Section 5.04(b).

 

“Offering
Notice” has the meaning specified in Section 5.04(b).

 

“Offered
Securities” has the meaning specified in Section 5.04(b).

 

“Offering
Securityholder” has the meaning specified in Section 5.04(a).

 

“Other
Securityholders” has the meaning specified in Section 5.05(a).

 

“Percentage”
has the meaning specified in Section 5.05(b).

 

“Permitted
Transferee” means, with respect to a specified Person, (i) any
Affiliate of such Person, provided such Person is not a competitor of the
Company, as unanimously determined by the Board, (ii) a donee of Shares
who is a member of the family of such Person or any trust for the benefit of
any such family member and (iii) a transferee of Shares who receives

 

4

 

such
Shares by will or the laws of descent and distribution.  For purposes of this definition, the word “family”
shall include any spouse, lineal ancestor or descendant, brother or sister.

 

“Person” means any individual, partnership, firm, corporation,
association, trust, unincorporated organization or other entity, as well as any
syndicate or group that would be deemed to be a person under Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended.

 

“Prospective Transferee” has the meaning specified in Section 5.06.

 

“Qualified Initial Public Offering” means a public offering of
shares of Common Stock of the Company that (i) yields actual cash proceeds
to the Company in excess of US$25 million and at an effective per share
offering price that is not less than fifty (50%) percent greater than the
effective per share price of the shares of Common Stock issued to Goyaike
hereunder, (ii) is underwritten by a reputable underwriter reasonably
acceptable to both Goyaike and the Company, and (iii) is effected in
conjunction with such shares being listed for trading on a national securities
exchange.

 

“Remaining
Offered Securities” has the meaning specified in Section 5.04(d)(i).

 

“Required
Number of Directors” has the meaning specified in Section 4.05.

 

“Sale” means any sale, assignment, transfer, distribution or
other disposition of Shares or of a participation therein, whether voluntarily
or by operation of Law.

 

“Securities Act” means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

 

“Securities
Purchase Agreement” has the meaning specified in the Recitals.

 

“Securityholder” means each holder or Beneficial Owner of Common
Stock or any security convertible into, or exchangeable for, Common Stock who
is or hereafter becomes a party to this Agreement or the rightful and permitted
assignee or successor of such a party.

 

“Securityholder
Directors” has the meaning specified in Section 4.02.

 

“Securityholder
Option Period” has the meaning specified in Section 5.04(d).

 

“Selling
Securityholder” has the meaning specified in Section 5.05(a).

 

“Share”
means any share of Common Stock.

 

“Subsidiary” means any and all corporations, partnerships, joint
ventures, associations and other entities Controlled by the Company directly or
indirectly through one or more intermediaries.

 

“Tag-Along
Notice” has the meaning specified in Section 5.05(a).

 

“Tag-Along
Option” has the meaning specified in Section 5.05(b).

 

5

 

“Third Party” means, with respect to any
Securityholder, any other Person (other than a Permitted Transferee of such
Securityholder).

 

“US
GAAP” means United States generally accepted accounting principles.

 

“Voting Interest” means one Share of Common Stock of the Company
and any other share of Capital Stock issued by the Company, the holders of
which are ordinarily, in the absence of contingencies, entitled to vote in the
election of the Company’s directors (or Persons performing similar functions),
or the approval of its management and policies, even if the right to vote has
been suspended by the occurrence of a contingency.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY, GROUP AND ACT

 

Each of the Company, Group and ACT jointly and severally represents and
warrants to Goyaike as follows:

 

SECTION 2.01.      Due
Organization and Authority of the Company, Group and ACT.  Each of the Company, Group and ACT is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all necessary power and authority to enter into this
Agreement, to carry out its obligations hereunder and to perform the actions
contemplated hereby.  Each of the
Company, Group and ACT is duly licensed or qualified to do business and is in
good standing in each jurisdiction in which the properties owned or leased by
it or the operation of its business makes such licensing or qualification
necessary, except to the extent that the failure to be so licensed or qualified
would not prevent or materially hinder the performance of the actions
contemplated by this Agreement.  The
execution and delivery of this Agreement by each of the Company, Group and ACT,
the performance by each of the Company, Group and ACT of its obligations
hereunder and the performance by each of the Company, Group and ACT of the
actions contemplated hereby have been duly authorized by all requisite action
on the part of the Company, Group and ACT, as applicable.  This Agreement has been duly executed and
delivered by each of the Company, Group and ACT, and (assuming due
authorization, execution and delivery by the other Persons signatory hereto)
this Agreement constitutes a legal, valid and binding obligation of each of the
Company, Group and ACT, enforceable against each of the Company, Group and ACT
in accordance with its terms.

 

SECTION 2.02.      No
Conflict.  The execution, delivery
and performance of this Agreement by each of the Company, Group and ACT do not
and will not (a) violate, conflict with or result in the breach of any
provision of the Certificate of Incorporation or By-laws of the Company, Group
or ACT, (b) conflict with or violate any Law applicable to the Company,
Group or ACT or any of their respective assets, properties or businesses or (c) conflict
with, result in any breach of, constitute a default (or event which with the
giving of notice or lapse of time, or both, would become a default) under,
require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, or result
in the creation of any Encumbrance on any of the Company’s, Group’s or ACT’s
assets or properties pursuant to, any note, bond, mortgage or indenture,
contract, agreement, lease,

 

6

 

sublease,
license, permit, franchise or other instrument or arrangement to which the
Company, Group or ACT is a party or by which any of their respective assets or
properties is bound or affected.

 

SECTION 2.03.      Governmental
Consents and Approvals.  The
execution, delivery and performance of this Agreement by each of the Company,
Group and ACT do not and will not require any consent, approval, authorization
or other order of, action by, filing with or notification to, any governmental
authority.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF GOYAIKE

 

Goyaike
represents and warrants to the Company, Group and ACT as follows:

 

SECTION 3.01       Organization
and Authority.  Goyaike is a
corporation duly incorporated or organized, validly existing and in good
standing under the laws of the Republic of Argentina and has all necessary
power and authority to enter into this Agreement, to carry out its obligations
hereunder and to perform the actions contemplated hereby.  Goyaike is duly licensed or qualified to do
business and is in good standing in each jurisdiction in which the properties
owned or leased by it or the operation of its business makes such licensing or
qualification necessary, except to the extent that the failure to be so
licensed or qualified would not prevent or materially hinder the performance of
the actions contemplated by this Agreement. 
The execution and delivery of this Agreement by Goyaike, the performance
by it of its obligations hereunder and the performance by it of the actions
contemplated hereby have been duly authorized by all requisite action on its
part.  This Agreement has been duly
executed and delivered by Goyaike, and (assuming due authorization, execution
and delivery by the other Persons signatory thereto) this Agreement constitutes
a legal, valid and binding obligation of Goyaike enforceable against it in
accordance with its terms.

 

SECTION 3.02.      No Conflict.  Assuming that all consents,
approvals, authorizations and other actions described in Section 3.03 have
been obtained, the execution, delivery and performance of this Agreement by
Goyaike do not and will not (a) violate, conflict with or result in the
breach of any provision of its Certificate of Incorporation or By-laws (or
similar organizational documents), (b) conflict with or violate any Law
applicable to it or any of its assets, properties or businesses or (c) conflict
with, result in any breach of, constitute a default (or event which with the
giving of notice or lapse of time, or both, would become a default) under,
require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, or result
in the creation of any Encumbrance on any of Goyaike’s assets or properties
pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to
which Goyaike is a party or by which any of its assets or properties is bound
or affected.

 

SECTION 3.03.      Governmental Consents and Approvals.  The
execution, delivery and performance of this Agreement by Goyaike do not and
will not require any consent,

 

7

 

approval,
authorization or other order of, action by, filing with or notification to, any
governmental authority, except to the extent that obtaining any such consent,
approval, authorization or other order, or making such filing or notification
would not prevent or materially hinder the performance of the actions
contemplated by this Agreement.

 

ARTICLE IV

 

CORPORATE GOVERNANCE

 

SECTION 4.01.      Agreement to Vote.  The
Securityholders agree to vote all of their shares of Capital Stock, and the Company
agrees to take all necessary measures, in order to carry out the agreements set
forth in this Article IV, and to prevent any action by the Company or the
Securityholders that is inconsistent with such agreements.

 

SECTION 4.02.      Election of Directors; Voting.  (a) The
number of directors constituting the Board of the Company, as fixed from time
to time by the Board in accordance with the Company’s By-laws, shall initially
be five (5).  Notwithstanding any
provision to the contrary in the Company’s Certificate of Incorporation or
By-laws, for so long as ACT holds or Beneficially Owns at least ten (10%)
percent of the outstanding Common Stock of the Company on a fully diluted
basis, the number of directors constituting the Board shall not be changed without
the consent of ACT.  With respect to each
election of directors of the Company, whether at a special or annual meeting
and whether by vote or by consent (in each case, in accordance with the
provisions for electing directors set forth in the Company’s Certificate of
Incorporation and By-laws), the Securityholders shall vote all of the shares of
Capital Stock of the Company held and/or Beneficially Owned by them or consent
in writing with respect to such shares as follows: (i) one (1) director
(the “ACT Director”) shall be designated by ACT and approved by the
holders and/or Beneficial Owners of at least a majority of the then outstanding
shares of Common Stock, provided that ACT owns at least ten (10%) percent, of
the outstanding shares of Common Stock of the Company on a fully diluted basis;
and (ii) four (4) directors (the “Goyaike Directors”) shall be
designated and approved by the holders and/or Beneficial Owners of a majority
of the then outstanding Common Stock, other than ACT, for so long as there is
one (1) ACT Director, and five (5) directors shall be designated and
approved by the holders and/or Beneficial Owners of a majority of the then
outstanding Common Stock, other than ACT, if ACT is no longer qualified to
designate an ACT Director for the Company’s Board.

 

SECTION 4.03.      Nomination and Election of Directors.  ACT’s
and Goyaike’s initial nominees for the Board shall be as set forth in Schedule III
hereto.  On or before the Closing Date
(as defined in the Securities Purchase Agreement) each of the Company’s
Directors, other than those Directors listed in Schedule III hereto, shall
have resigned from the Company’s Board of Directors, effective as of the
Closing Date (as defined in the Securities Purchase Agreement) and delivered
such signed resignations to the Company. 
Notwithstanding any provision to the contrary in the Company’s
Certificate of Incorporation or By-laws, if not already named by the Company’s
existing Board, the Securityholders shall act to elect such nominees as
directors as soon as practicable by written consent or at a securityholders’
meeting to be held as promptly as practicable hereafter.  Hereafter, notwithstanding any provision to
the contrary in the Company’s Certificate of Incorporation or By-laws, ACT and
Goyaike shall make

 

8

 

the
nominations to which they are entitled hereunder not later than thirty (30)
days prior to each annual meeting of the Company’s securityholders, and the
Board shall be elected at such meeting or by written consent in accordance
herewith.

 

SECTION 4.04.       Removal; Vacancies.  Notwithstanding any provision to the contrary
in the Company’s Certificate of Incorporation or By-laws, a director shall be
removed only by the party with the power to designate such director and the
Securityholders shall vote all of their shares of Capital Stock of the Company
to remove any director whose removal is required by the party with the power to
designate such director.  Notwithstanding
any provision to the contrary in the Company’s Certificate of Incorporation or
By-laws, if, as a result of death, disability, retirement, resignation, removal
(with or without cause) or otherwise, there shall exist or occur any vacancy in
the Board, then, if the departed director was designated by ACT, ACT shall be
entitled to designate in writing one nominee for election to fill such vacancy
and if the departed director was designated by the holders of at least a
majority of the then outstanding Common Stock, then such holders of Common
Stock shall be entitled to designate in writing one nominee for election to
fill such vacancy. The Securityholders shall as soon as practicable after such
nomination is made act to elect such nominee to the Board.  Any director elected pursuant to this Section 4.04
shall serve until the next annual election of directors.

 

SECTION 4.05.      Quorum; Certain Actions.  Notwithstanding any provision
to the contrary in the Company’s Certificate of Incorporation or By-laws,
subject to the immediately following sentence, at least four (4) Directors
shall be present in person or by phone at any meeting of the Board in order to
constitute a quorum for the transaction of business at such meeting, and,
except with respect to Consent Events or as otherwise set forth in this
Agreement or as required by Law or by the Company’s Certificate of
Incorporation and By-laws, the vote of a majority of those directors present at
any such meeting at which a quorum is present shall be necessary for the
passage of any resolution or act of the Board; provided, however, that, subject
to the following sentence, in the event a meeting of the Board has been duly
noticed and a quorum is not present on two (2) consecutive meeting dates,
then only three (3) directors present in person at the next immediately
scheduled meeting shall constitute a quorum for the transaction of business at
such meeting. Notwithstanding any other provision of this Agreement or the
Company’s Certificate of Incorporation or By-laws, for so long as ACT holds or
Beneficially Owns at least ten (10%) of the outstanding shares of Common Stock
on a fully diluted basis, any Consent Event shall be taken by the Company only
upon (and the Company, and the Board on behalf of the Company, shall not take
such action without) the prior affirmative vote or written consent of the ACT
Director.  For purposes of this
Agreement, a “Consent Event” shall mean any of the matters set forth on Schedule IV
attached hereto.

 

SECTION 4.06.      Audit Committee.  The Company shall establish and maintain an Audit Committee, which shall
consist of three (3) members of the Board, including one (1) director
nominated by ACT for so long as ACT holds or Beneficially Owns at least ten
(10%) percent of the outstanding shares of Common Stock on a fully diluted
basis.

 

SECTION
4.07.      Compensation Committee.  The Company shall establish and maintain a
Compensation Committee of the Board.  The
Compensation Committee shall consist of three (3) members of the Board,
including one (1) director nominated by ACT for so

 

9

 

long
as ACT holds or Beneficially Owns at least ten (10%) percent of the outstanding
shares of Common Stock on a fully diluted basis.

 

ARTICLE V

 

TRANSFER OF SHARES

 

SECTION 5.01.      General Restriction.  Neither
Group nor ACT shall, directly or indirectly, make or solicit any Sale of any
Share except in compliance with the Securities Act and this Agreement.

 

SECTION 5.02.      Legends.  The Company shall affix to
each certificate evidencing Shares issued to Securityholders a legend in
substantially the following form:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OF 1933 OR AN EXEMPTION THEREFROM AND, IN EACH CASE, IN
COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AS SET FORTH IN A SECURITYHOLDERS’ AGREEMENT DATED AS OF JULY 1,
2002, AS IT MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE
AT THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY.  NO REGISTRATION OF TRANSFER OF THESE SHARES
WILL BE MADE ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL SUCH RESTRICTIONS
SHALL HAVE BEEN COMPLIED WITH.”

 

SECTION 5.03.      Certain Restrictions on Transfer of Shares.  (a) No
Securityholder shall, directly or indirectly (through the transfer of capital
stock of any Person that holds, or controls any Person that holds, such
Shares), make or solicit any Sale of any Share of Common Stock Beneficially
Owned by such Securityholder, other than

 

(i)             any Sale to a Permitted Transferee,

 

(ii)           any Sale of Shares of Common Stock that is made in compliance with the
procedures, and subject to the limitations, set forth in Sections 5.04 and 5.05
hereof,

 

(iii)           any Sale in connection with a merger of the Company or a sale of all or
substantially all of its assets or other similar business combination that has
been approved

 

10

 

by
the Board in accordance with the provisions of Section 4.05 and Schedule IV
hereof, if applicable,

 

(iv)         any Sale in connection with the merger of
Group or ACT or a sale of all or substantially all of Group’s or ACT’s assets
or other similar business combination that has been approved by Group’s or ACT’s
Board of Directors, as applicable, except that no Sale of Shares shall be
permitted under this Section 5.03(a)(iv) to any of the competitors of
the Business identified on Schedule V attached hereto, and

 

(v)          any Sale in connection with the merger of
Goyaike or a sale of all or substantially all of its assets or other similar
business combination that has been approved by Goyaike’s Board of Directors, except
that no Sale of Shares shall be permitted under this Section 5.03(a)(v) to
any of the competitors of the Business identified on Schedule V attached
hereto.

 

Notwithstanding the foregoing, except as otherwise
expressly provided in this Agreement, all Sales permitted by the foregoing
clauses (i) through (v) shall be subject to, and shall not be made
other than in compliance with, the provisions of this Article V.

 

(b)           No Sale of Shares to a Permitted Transferee
shall be effective if a purpose or effect of such transfer shall have been to
circumvent the provisions of this Section 5.03, Section 5.04 or Section 5.05.  Each Securityholder shall remain responsible
for the performance of this Agreement by each Permitted Transferee of such
Securityholder to which Shares are transferred, except if such Permitted
Transferee received such Shares by will or the laws of descent and distribution.  If any Permitted Transferee to which Shares
are transferred pursuant to clause (i) of Section 5.03(a) is not
a natural Person and ceases to be a Permitted Transferee of the Securityholder
from which or whom it acquired such Shares pursuant to such provision, such
Person shall reconvey such Shares to such transferring Securityholder
immediately before such Person ceases to be a Permitted Transferee of such
transferring Securityholder so long as such Person knows of its upcoming change
of status immediately prior thereto. If such change of status is not known
until after its occurrence, the former Permitted Transferee shall make such
transfer to such transferring Securityholder as soon as practicable after the
former Permitted Transferee receives notice thereof.

 

SECTION 5.04.      Right of First Offer.  If
any Securityholder (the “Offering Securityholder”) proposes to make a
Sale of all or any portion of its Shares to a Person other than to a Permitted
Transferee of the Offering Securityholder or other than as permitted under Section 5.03
hereof:

 

(b)           The Offering Securityholder shall offer such
Shares first to the Company, by sending written notice (an “Offering Notice”)
to the Company, with a copy to ACT, if ACT is not the Offering Securityholder,
and a copy to Goyaike, if Goyaike is not the Offering Securityholder, which
Offering Notice shall state (i) the number of Shares proposed to be sold
(the “Offered Securities”), (ii) the proposed purchase price per
Share of the Offered Securities (the “Offer Price”), (iii) the
proposed terms and conditions of such Sale and (iv) the proposed purchaser
of the Shares. Upon delivery of the Offering Notice, such offer shall be
irrevocable

 

11

 

unless
and until the rights of first offer provided for herein shall have been waived
or shall have expired.

 

(c)           For a period of fifteen (15) days after delivery
of the Offering Notice pursuant to Section 5.04(b) (the “Company
Option Period”), subject to Section 5.04(g) hereof, the Company
shall have the right (the “Company Option”) to purchase any or all of
the Offered Securities at a purchase price equal to the Offer Price and
otherwise upon the terms and conditions set forth in the Offering Notice.  The right of the Company to purchase any or
all of the Offered Securities under this Section 5.04 shall be exercisable
by delivering written notice of the exercise thereof, prior to the expiration
of the Company Option Period, to the Offering Securityholder, with a copy to
each of ACT and Goyaike, provided they are not the Offering Securityholder,
which notice shall state the number of Offered Securities proposed to be purchased
by the Company.  The failure of the
Company to respond within such 15 day period shall be deemed to be a waiver of
the Company Option, provided that the Company may waive its rights under this Section 5.04
prior to the expiration of the Company Option Period by giving written notice
to the Offering Securityholder, with a copy to each of ACT and Goyaike,
provided they are not the Offering Securityholder.

 

(d)           If the Company does not elect to purchase all
of the Offered Securities pursuant to this Section 5.04, then for a period
of fifteen (15) days (the “Securityholder Option Period”) after the
earlier to occur of (i) the expiration of the Company Option Period
pursuant to this Section 5.04 and (ii) the date upon which the
Company delivers written notice of its partial exercise of the Company Option
pursuant to this Section 5.04 or its waiver thereof and subject to Section 5.04(g):

 

(i)             Provided that it is not the Offering
Securityholder, ACT shall have the right to purchase that percentage of the
Offered Securities not offered to be purchased by the Company (the “Remaining
Offered Securities”) determined by dividing (A) the number of Shares
owned by ACT at the time the Offering Notice is delivered pursuant to this Section 5.04
by (B) the number of Shares owned by ACT and Goyaike (provided that if
Goyaike is the Offering Securityholder, those Shares owned by Goyaike shall not
be included in this calculation) at the time the Offering Notice is delivered
pursuant to this Section 5.04, plus any of the Remaining Offered
Securities that Goyaike does not elect to purchase pursuant to Section 5.04(d)(ii),
at a purchase price equal to the Offer Price and otherwise upon the terms and
conditions set forth in the Offering Notice; and

 

(ii)            Provided that it is not the Offering
Securityholder, Goyaike shall have the right to purchase that percentage of the
Remaining Offered Securities determined by dividing (A) the number of
Shares owned by Goyaike at the time the Offering Notice is delivered pursuant
to this Section 5.04 by (B) the number of Shares owned by ACT and
Goyaike (provided that if ACT is the Offering Securityholder, those Shares
owned by ACT shall not be included in this calculation) at the time the
Offering Notice is delivered pursuant to this Section 5.04, plus
any of the Remaining Offered Securities that ACT does not elect to purchase
pursuant to Section 5.04(d)(i), at a purchase price equal to the Offer
Price and otherwise upon the terms and conditions set forth in the Offering
Notice.

 

12

 

(e)           The rights of ACT and Goyaike to purchase any
or all of the Remaining Offered Securities under this Section 5.04 shall
be exercisable by delivering written notice of the exercise thereof, prior to
the expiration of the Securityholder Option Period, to the Offering Securityholder.  Such notice shall state the number of Offered
Securities proposed to be purchased from the Offering Securityholder.  The failure of ACT or Goyaike to respond
within the Securityholder Option Period to the Offering Securityholder shall be
deemed to be a waiver by such Person of its respective rights under this Section 5.04;
provided that either ACT or Goyaike may waive its rights under this Section 5.04
prior to the expiration of the Securityholder Option Period by giving written
notice to the Offering Securityholder with a copy to each of the Company and
ACT or Goyaike, as applicable.

 

(f)            The closing of the purchases of the Offered
Securities by the Company, ACT and/or Goyaike under Section 5.04 shall be
held at the executive offices of the Company at 11:00 a.m., local time, on
the thirtieth (30th) day after delivery of the Offering Notice
pursuant to this Section 5.04 or at such other time and place as the
parties to the transaction may agree.  At
such closing, the Offering Securityholder shall deliver certificates representing
the Offered Securities, duly endorsed for transfer or accompanied by stock
powers duly executed in blank, and accompanied by all requisite transfer taxes
(or evidence of payment thereof), if any, and such Offered Securities shall be
free and clear of any Encumbrance, and the Offering Securityholder shall so
represent and warrant, and shall further represent and warrant that it is the
sole Beneficial Owner of such Offered Securities. The Company and/or ACT and/or
Goyaike, as the case may be, shall deliver at the closing payment in full in
immediately available funds of the Offer Price for the Offered Securities
purchased by it.  At such closing, all of
the parties to the transaction shall execute such additional documents as are
otherwise reasonably necessary or appropriate in connection with the purchase
and sale of the Offered Securities.

 

(g)           Notwithstanding anything to the contrary
contained in this Section 5.04, unless the Company and/or ACT and/or
Goyaike, individually or in the aggregate, elect to purchase all, but not less
than all, of the Offered Securities, (i) such parties shall not have the right
to purchase any Offered Securities pursuant to this Section 5.04 and (ii) the
Offering Securityholder may, subject to the other provisions of this Agreement
(including, without limitation, the Tag-Along Right set forth in Section 5.05),
sell all the Offered Securities to the Person identified in, and otherwise on
the terms and conditions set forth in the Offering Notice (including that the
entire purchase price of such sale must paid in cash); provided, however,
such Sale must be consummated within ninety (90) days after delivery of the
Offering Notice pursuant to this Section 5.04; provided  further,
however, that such Sale shall not be consummated unless and until the
Offering Securityholder shall represent in writing to the Company and to ACT
and Goyaike (provided they are not the Offering Securityholder) that such Person
is aware of the rights contained in this Section 5.04. If any sale to a
Person pursuant to this Section 5.04 is not consummated within ninety (90)
days after delivery of the Offering Notice pursuant to this Section 5.04
for any reason, then the restrictions provided for herein shall again become effective,
and no Sale of such Offered Securities may be made thereafter by the Offering Securityholder
without complying with the terms of this Section 5.04.

 

(h)           Anything in this Section 5.04 or in Section 5.03
to the contrary notwithstanding, the provisions of this Section 5.04 shall
not be applicable to any Sale or Encumbrance described in clause (i), (iii), (iv) or
(v) of Section 5.03(a).

 

13

 

SECTION 5.05.      Tag-Along Rights.  Subject
to the Right of First Offer set forth in Section 5.04, if, at any time
during the term of this Agreement, any Securityholder (the “Selling
Securityholder”) proposes to directly or indirectly make a Sale of any of
its Shares to a Person, other than to a Permitted Transferee, the Selling
Securityholder shall provide Group and/or Goyaike, as applicable (the “Other
Securityholders”), and the Company with not less than fifteen (15) days’
prior written notice of such proposed Sale (the “Tag-Along Notice”),
which Tag-Along Notice shall state (i) the number of Shares proposed to be
sold, (ii) the proposed purchase price per Share, (iii) the proposed terms
and conditions of such Sale and (iv) the proposed purchaser of the Shares,
provided that any Offering Notice delivered pursuant to Section 5.04(b) shall
be deemed to be the delivery of the Tag-Along Notice if such Offering Notice
was delivered at least fifteen (15) days prior to the date of the proposed
Sale.

 

(b)
Each of the Other Securityholders shall have the option (“Tag-Along Option”),
exercisable by written notice to the Selling Securityholder prior to the
earlier of (x) fifteen (15) days after delivery of the Tag-Along Notice
pursuant to this Section 5.05 and (y) the expiration of the Securityholder
Option Period, to require the Selling Securityholder to arrange for such
purchaser or purchasers to purchase the same percentage (the “Percentage”)
of the Shares then Beneficially Owned by such Other Securityholder as the ratio
of (i) the total number of Shares which are to be sold by the Selling
Securityholder pursuant to the proposed Sale to (ii) the total number of Shares
Beneficially Owned by the Selling Securityholder immediately prior to such
Sale, or any lesser amount of Shares as such Other Securityholder shall desire.
Any such purchase shall be made at the same time, and upon the same terms and
conditions (including all direct or indirect consideration or compensation), as
the Sale by the Selling Securityholder of its Shares; provided, however,
that such Other Securityholder shall not be required to agree to indemnity or
contribution provisions in excess of such Other Securityholder’s proceeds from such
Sale.

 

(c)
Upon the exercise of the Tag-Along Option, the Selling Securityholder agrees that
it shall either (a) arrange for the proposed purchaser or purchasers to
purchase all or a portion (as each of the Other Securityholders shall specify)
of the same Percentage of the Shares then Beneficially Owned by each Other
Securityholder electing to participate in the proposed Sale at the same time as
and upon the same terms and conditions on which the Selling Securityholder
sells its Shares; provided, however, that if such purchaser or
purchasers shall elect to purchase only such aggregate number of Shares as
originally agreed with the Selling Securityholder, then the number of Shares to
be sold by the Selling Securityholder and each of the Other Securityholders
electing to participate in the proposed sale shall be reduced pro rata to such
aggregate number or (b) not effect the proposed Sale to such purchaser or
purchasers.

 

(d)
In the event that the Other Securityholders do not exercise their right to participate
in such sale or decline to so participate, the Selling Securityholder shall
have ninety (90) days from the date the Tag-Along Notice was delivered pursuant
to this Section 5.05 to consummate the Sale to the same purchaser and upon
the same terms set forth therein without being required to provide an
additional Tag-Along Notice to the Other Securityholders.

 

(e)
Anything in this Section 5.05 or in Section 5.03 to the contrary notwithstanding,
the provisions of this Section 5.05 shall not be applicable to any Sale
described in clause (i), (iii), (iv) or (v) of Section 5.03(a).  Nothing in this Section 5.05 shall
affect any of

 

14

 

the
rights or obligations of any of the Securityholders under any other provision
of this Agreement.

 

SECTION 5.06.  Transferees
to Execute Agreement Each Securityholder agrees that it will not, directly
or indirectly, make any Sale of any Shares Beneficially Owned by such
Securityholder unless, prior to the consummation of any such Sale, the Person
to whom such Sale is proposed to be made (the “Prospective Transferee”) (i) executes
and delivers this Agreement to the Company and each of ACT and Goyaike, and (ii) delivers
to the Company an opinion of counsel, satisfactory in form and substance to the
Company, to the effect that the execution of this Agreement by such Prospective
Transferee makes this Agreement a legal, valid and binding obligation of such
Prospective Transferee enforceable against such Prospective Transferee in
accordance with its terms. Upon the execution and delivery by such Prospective
Transferee of this Agreement and, if required, the delivery of the opinion of
counsel referred to in clause (ii) of the preceding sentence, such
Prospective Transferee shall be deemed a “Securityholder” for purposes of this
Agreement and shall have the rights and be subject to the obligations of a
Securityholder under this Agreement, in each case with respect to the Shares
Beneficially Owned by such Prospective Transferee.

 

SECTION 5.07.  Improper
Sale.  Any attempt not in compliance
with this Agreement to make any Sale of any Shares shall be null and void and
of no force and effect, the purported transferee shall have no rights or
privileges in or with respect to the Company, and the Company shall not give
any effect in the Company’s stock records to such attempted Sale.

 

ARTICLE VI

 

[INTENTIONALLY DELETED]

 

ARTICLE VII

 

ADDITIONAL AGREEMENTS

 

SECTION 7.01.      New
Securityholders to Execute Agreement. 
The Company shall not, at any time prior to its initial public offering,
issue any Shares of Common Stock, or resell any Shares of Common Stock held in
its treasury, or issue or resell any security convertible or exchangeable into
Common Stock, unless prior to the consummation of any such issuance or Sale,
each Person to whom such security is proposed to be issued or sold executes and
delivers this Agreement to the Company and each of ACT and Goyaike.  Upon the execution and delivery by any Person
of this Agreement, Schedule I hereto shall be revised to include the name
of such Person and such Person shall be deemed a “Securityholder” for purposes
of this Agreement and shall have the rights and be subject to the obligations
of a Securityholder as such under this Agreement.

 

SECTION 7.02.     Rights
to Purchase New Securities.  In the
event that the Company proposes to issue New Securities (prior to, and other
than in connection with, a Qualified Initial Public Offering), each of Group,
ACT and Goyaike shall have the right to

 

15

 

purchase in lieu of the
Person to whom the Company proposed to issue such New Securities, in accordance
with paragraph (b) below, a number of Shares or other New Securities which
the Company proposes to issue equal to the product of (i) the total number
or amount of Shares or other New Securities which the Company proposes to issue
at such time and (ii) a fraction, the numerator of which shall be the
total number of Voting Interests which Group, ACT or Goyaike, as applicable,
holds or Beneficially Owns at such time, and the denominator of which shall be
the total number of Voting Interests then outstanding. The rights given by the
Company under this Section 7.02 shall terminate if unexercised within
thirty (30) days after receipt of the Notice of Issuance referred to in
paragraph (b) below.

 

(b)           In the event that the Company proposes to
undertake an issuance of New Securities (prior to, and other than in connection
with, a Qualified Initial Public Offering), it shall give written notice (a “Notice
of Issuance”) of its intention to each of Group, ACT and Goyaike, describing
all material terms of the New Securities and the price and all material terms
upon which the Company proposes to issue such New Securities.  Each of Goyaike, Group and ACT, as
applicable, shall have thirty (30) days from the date of the Notice of Issuance
to agree to purchase all or any portion of its pro rata share of such New
Securities (as determined pursuant to paragraph (a) above) for the same
consideration, if such consideration shall consist solely of cash, or for cash,
cash equivalents or marketable securities having an equivalent value to the
consideration payable by the Person to whom the Company proposes to issue such
New Securities at the time of payment, and otherwise upon the terms specified
in the Notice of Issuance by giving written notice to the Company, and stating
therein the quantity of New Securities to be purchased by such Securityholder.

 

SECTION 7.03.      Further Assurances.  Each
party to this Agreement shall use reasonable efforts to take, or cause to be
taken, all appropriate action, and to do, or cause to be done, all things
necessary, proper or advisable under applicable Laws to consummate and make
effective the transactions contemplated hereunder, including, without
limitation, using reasonable efforts to obtain all licenses, permits, consents,
approvals, authorizations, qualifications and orders of any applicable
governmental entities.  Each of the
parties shall cooperate with the other when required in order to effect the
transactions contemplated hereunder.  In
case at any time after the date hereof, any further action is necessary or
desirable to carry out the purposes of this Agreement, the proper officers and
directors of each of the parties shall use all reasonable efforts to take all
such action.

 

SECTION 7.04.      Restriction on Transactions with Affiliates.  For
so long as Group and ACT collectively hold or Beneficially Own at least ten
(10%) percent of the outstanding shares of Common Stock on a fully diluted
basis, the Company shall not enter into any transaction, arrangement, agreement
or understanding with any director, officer, employee, or holder of more than
five (5%) percent of the outstanding shares of any class or series of Capital
Stock of the Company, any member of the family of such Person, or any
corporation, partnership, trust, or other entity in which any such Person, or
member of the family of such Person, is a director, officer, trustee, partner,
or holder of more than five (5%) percent of the outstanding capital stock
thereof, except for (i) transactions on customary terms related to such
Person’s employment, (ii) transactions in the ordinary course of business
and on market terms, (iii) transactions contemplated by this Agreement,
and (iv) transactions otherwise approved by the ACT Director pursuant to Article IV
hereof.

 

16

 

SECTION 7.05.      Information Rights.  The
Company shall deliver the following reports to Group:

 

(i)            As soon as practicable after the end of each
fiscal year of the Company, and in any event within ninety (90) days
thereafter, the balance sheet of the Company, as of the end of such fiscal
year, and a statement of income and statement of cash flow of the Company for
such fiscal year, in each case, in accordance with US GAAP and as audited by the
Company’s accountants.

 

(ii)           As soon as practicable after the end of each quarter and in any event
within forty-five (45) days thereafter, an unaudited balance sheet and
statements of income and cash flow of the Company for such quarter and for the
year to date, in each case prepared in accordance with US GAAP.

 

(b)           Group and ACT shall also have the right to
visit and inspect any of the properties, books or records of the Company and to
discuss its affairs, finances and accounts with officers, all at such reasonable
times during normal business hours and as often as may be reasonably requested.

 

SECTION 7.06.      Dividend Rights.  For
so long as Group and ACT collectively hold or Beneficially Own at least ten
(10%) of the outstanding shares of Common Stock on a fully diluted basis, the
Company shall be required to, and Goyaike and the Board shall cause the Company
to, declare and pay in cash to each holder or Beneficial Owner of shares of
Common Stock on a quarterly basis its pro rata share of the Dividend Amount (as
defined below); provided, however, that the Company shall have no obligation to
declare or pay to such Persons the Dividend Amount until such time as the
Company has achieved eight (8) separate quarters of positive EBITDA, as
determined by the Board (it being understood that this provision does not
require the Company to achieve eight (8) consecutive quarters of positive
EBITDA before it is required to declare and pay the Dividend Amount). For
purposes of this Agreement, the Dividend Amount shall be equal to thirty (30%)
percent of Net Income (as defined herein) for the applicable quarterly period.  Mandatory dividends under this Section 7.06
shall not be declared and paid in violation of applicable Law, and shall in no
event be paid in violation of any of the Company’s contractual commitments to
third parties prohibiting such payments as such commitments may exist from time
to time; provided, however, that the Company shall not enter into any such
contractual commitments prohibiting the payment of such dividends without the
prior written consent of ACT.

 

ARTICLE VIII

MISCELLANEOUS

 

SECTION 8.01.      Termination.  This Agreement shall
terminate:

 

(a)           upon the mutual written agreement of the Company and/or Goyaike, on the
one hand, and Group and/or ACT, on the other hand;

 

(b)           upon the expiration of all rights created hereunder; or

 

17

 

(c)           immediately prior to a Qualified Initial Public Offering of Shares of
the Company.

 

SECTION 8.02.      Expenses.  Except as otherwise specified
in this Agreement, all costs and expenses, including, without limitation, fees
and disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs and expenses.

 

SECTION 8.03.      Notices.  All notices, requests, claims,
demands and other communications hereunder shall be in writing and shall be
given or made (and shall be deemed to have been duly given or made upon receipt)
by delivery in Person, by courier service, by telecopy or by registered or
certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 8.03):

 

	
  a) if to Group or ACT:

  
	
   

  
	
  Advanced Cell
  Technology, Inc.

  
	
  One Innovation Drive

  
	
  Worcester, Massachusetts
  01605

  
	
   

  
	
  Telecopy:

  	
  (508) 756-0931

  
	
  Attention:

  	
  Dr. Michael D. West,
  President

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Pierce Atwood

  
	
  One Monument Square

  
	
  Portland, Maine 04101

  
	
   

  
	
  Telecopy: (207) 791-1350

  
	
  Attention:

  	
  William L.
  Worden, Esq.

  
	
   

  	
  Christopher E.
  Howard, Esq.

  
	
   

  
	
   

  
	
  b) if to the Company:

  
	
   

  
	
  Cyagra, Inc.

  
	
  One Innovation Drive

  
	
  Worcester, Massachusetts
  01605

  
	
   

  
	
  Telecopy:

  	
  (508) 756-0931

  
	
  Attention:

  	
  Dr. Michael D. West,
  President

  

 

18

 

	
  with a copy to:

  
	
   

  
	
  Pierce Atwood

  
	
  One Monument Square

  
	
  Portland, Maine 04101

  
	
   

  
	
  Telecopy: (207) 791-1350

  
	
  Attention: William L.
  Worden, Esq.

  
	
   

  
	
  c) if to Goyaike:

  
	
   

  
	
  Goyaike S.A.

  
	
  Av, do Mayo 701, Piso 16

  
	
  Buenos Aires, Argentina

  
	
   

  
	
  Telecopy: (54) 3488-436300

  
	
  Attention:
  Mr. Ricardo Hosel

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Shearman &
  Sterling

  
	
  599 Lexington Avenue

  
	
  New York, NY 10022

  
	
   

  
	
  Telecopy: (212) 848-7179

  
	
  Attention: Alfred J.
  Ross, Esq.

  

 

(a) if to any other Securityholder, then to the address or
telecopy number set forth opposite such Person’s name on Schedule I or II
attached hereto.

 

SECTION 8.04.      Public Announcements.  Except
as required by Law, no party to this Agreement shall make, or cause to be made,
any press release or public announcement in respect of this Agreement without
the prior written consent of the other party, and the parties shall cooperate
as to the timing and contents of any such press release or public announcement.

 

SECTION 8.05.      Headings.  The descriptive headings
contained in this Agreement are for convenience of reference only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

SECTION 8.06.      Severability.  If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any Law, all other terms and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party.  Upon
such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest possible
extent.

 

19

 

SECTION 8.07.      Entire Agreement.  This
Agreement, the Securities Purchase Agreement, the Separation Agreement, the
Sublicense Agreement and the Collaboration Agreement Term Sheet constitute the
entire agreement of the parties hereto with respect to the subject matter
hereof and supersede all prior agreements and undertakings of the parties, both
written and oral, with respect to the subject matter hereof.

 

SECTION 8.08.      Assignment.  This Agreement shall not be
assigned by any party without the express written consent of the other parties,
except in connection with any Sale of Shares permitted by, and effected in
accordance with, Article V hereof.

 

SECTION 8.09.      No Third-Party Beneficiaries.  This
Agreement shall be binding upon and inure solely to the benefit of the parties
hereto and their permitted assigns and successors and nothing herein, express
or implied, is intended to or shall confer upon any other Person or entity, any
legal or equitable right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement.

 

SECTION 8.10.      Amendment.  This Agreement may not be
amended or modified except by an instrument in writing signed by, or on behalf
of, each of Group and ACT, on the one hand, and the Company and Goyaike, on the
other hand.

 

SECTION 8.11.      Governing Law.  This
Agreement shall be governed by the laws of the State of New York.  All actions and proceedings arising out of or
relating to this Agreement may be heard and determined in any New York State or
federal court sitting in the City of New York, County of Manhattan, and the
parties hereto hereby irrevocably submit to the nonexclusive jurisdiction of
such courts in any such action or proceeding and irrevocably waive any defense
of an inconvenient forum to the maintenance of any such action or proceeding.

 

SECTION 8.12.      Counterparts.  This
Agreement may be executed in one or more counterparts, and by the different
parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement.  Copies of
executed counterparts transmitted by telecopy or other electronic transmission
service shall be considered original executed counterparts for purposes of this
Section 8.12, provided that receipt of copies of such counterparts is
confirmed.

 

SECTION 8.13.      Specific Performance.  The
parties hereto agree that irreparable damage would occur in the event any
provision of this Agreement were not performed in accordance with the terms
hereof and that the parties shall be entitled to specific performance of the
terms hereof, in addition to any other remedy at Law or equity.

 

SECTION 8.14.      Waiver of Jury Trial.  Each
of the parties hereto irrevocably and unconditionally waives trial by jury in
any legal action or proceeding relating to this Agreement or the transactions
contemplated hereby and thereby and for any counterclaim therein.

 

20

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized signatories hereunto duly authorized as
of the date first above written.

 

	
   

  	
  CYAGRA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael West

  
	
   

  	
   

  	
  Name:

  	
  Michael West

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANCED CELL TECHNOLOGY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael West

  
	
   

  	
   

  	
  Name:

  	
  Michael West

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  A.C.T. GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael West

  
	
   

  	
   

  	
  Name:

  	
  Michael West

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOYAIKE S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ricardo Hosel

  
	
   

  	
   

  	
  Name:

  	
  Ricardo Hosel

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alejandro Cantarelli

  
	
   

  	
   

  	
  Name:

  	
  Alejandro Cantarelli

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-fact

  

 

 

SCHEDULE I

 

LIST OF PERSONS WHO BECOME SIGNATORIES HERETO SUBSEQUENT TO THE

DATE HEREOF

 

 

	
  Securityholders

  	
   

  	
  Address

  	
   

  	
  Date

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Sch.-1

 

SCHEDULE II

ADDRESSES OF CERTAIN SECURITYHOLDERS

 

Sch. 2-1

 

SCHEDULE III

GOYAIKE’S INITIAL NOMINEES TO THE BOARD OF DIRECTORS

 

	
  Securityholder

  	
   

  	
  Nominee

  
	
   

  	
   

  	
   

  
	
  ACT

  	
   

  	
  Michael D. West

  
	
   

  	
   

  	
   

  
	
  Goyaike

  	
   

  	
  Ricardo Hosel

  
	
  Goyaike

  	
   

  	
  Alejandro Cantarelli

  
	
  Goyaike

  	
   

  	
  Hernán Mondejar

  
	
  Goyaike

  	
   

  	
  Mariano Medina

  

 

Sch. 3-1

 

SCHEDULE IV

CONSENT EVENTS

 

Each
of the following matters shall be a Consent Event:

 

(a)           altering, amending or repealing the
Certificate of Incorporation or By-laws of the Company;

 

(b)           authorizing or issuing any shares of Capital
Stock of the Company (excluding any debt securities), or any option, warrant,
purchase or subscription right or any other security convertible, exchangeable
or exercisable into shares of Capital Stock of the Company (excluding any debt
securities), except in conjunction with any of the following: (i) except with
respect to a public offering of shares, the issuance of shares of Common Stock
(other than in connection with the issuance of shares of Common Stock or
securities convertible or exchangeable into shares of Common Stock (a “Common
Stock Equivalent”) in connection with any exchange of options as
contemplated by clause (ii) below) in which the effective per share price
of the Common Stock is fifty (50%) percent greater than the effective per share
price of the shares of Common Stock issued to Goyaike hereunder, (ii) the
issuance to employees, officers and directors of options convertible or
exercisable into shares of Common Stock pursuant to an incentive stock option
plan that is to be administered by the Board and which shall consist of ten (10%)
percent of the outstanding shares of Common Stock of the Company on a fully
diluted basis as of the Closing Date (the “Stock Option Plan”); (iii)
the issuance of shares of Common Stock in an initial public offering and (iv) the
issuance of shares of Common Stock of the Company to a non-affiliated third
party in consideration of or exchange for intellectual property rights or other
assets that are to be used in the operation of the Business; provided, however,
that the maximum number of shares of Common Stock that may be issued pursuant
to this clause (iii), individually or in the aggregate, shall not exceed that
number of shares which is equal to twenty (20%) percent of the outstanding
shares of Common Stock of the Company on a fully diluted basis as of the
Closing Date.

 

(c)           commencing any proceeding for the voluntary
winding up, dissolution, liquidation or similar event of the Company;

 

(d)           redeeming, re-purchasing or otherwise
re-acquiring any Common Stock of the Company without first offering pro-rata
redemption, re-purchase or re-acquisition of Group’s and ACT’s
Common Stock on the same terms and conditions as the proposed redemption, re-purchase
or re-acquisition;

 

(e)           authorizing or implementing any stock option
or other equity incentive plan, other than the Stock Option Plan;

 

(f)            amalgamating, consolidating, merger or
entering into any business combination with another company, business, concern,
firm or Person if, as a result of such transaction, ACT’s ownership of Common
Stock will fall below ten (10%) percent of the

 

Sch. 4-1

 

outstanding
shares of Common Stock on a fully diluted basis; provided  however,
that no consent shall be required and such a transaction shall not be deemed to
be a Consent Event so long as ACT is provided with an option (the “Put
Option”) to require the Company to purchase all, but not less than all, of
the Common Stock owned by ACT as a condition precedent to closing such
transaction, with the following terms of purchase:

 

(i)          The
purchase price for the Common Stock owned by ACT shall be the per share value
of the Common Stock outstanding based upon the implied valuation of the Company
in the proposed transaction;

 

(ii)         The
purchase shall close simultaneously with, and as a condition precedent to,
closing the proposed transaction;

 

(iii)        The
purchase price shall be paid in cash by wire transfer, certified check or other
means acceptable to ACT; and

 

(iv)        ACT
shall deliver the Common Stock owned by ACT at the closing with all necessary
stock powers and other customary documentation required to convey good title to
the shares to the Company, free and clear of all liens and Encumbrances.

 

(g)           declaring, paying or making any cash
dividends on a non-pro rata basis;

 

(h)           declaring, paying or making any non-cash
dividends or distributions of any nature on any Capital Stock of the Company;
and

 

(i)            creating, incurring, issuing, assuming,
guaranteeing or otherwise becoming directly or indirectly, through
subsidiaries, Affiliates or otherwise, liable, contingently or otherwise,
(collectively, “incur”) with respect to any Indebtedness; provided
however, that so long as no default hereunder has occurred and is
continuing, the Company may incur Indebtedness in an aggregate amount not in
excess of the greater of:

 

(i)            65% of the amount of Total Assets reported in the
Company’s most recently independently audited financial statements prepared in
accordance with US GAAP, consistently applied; or

 

(ii)           an amount equal to three times (3X) the Company’s EBITDA determined
based upon the Company’s most recently independently audited financial
statements prepared in accordance with US GAAP, consistently applied.

 

Sch. 4-2

 

SCHEDULE V

 

COMPETITORS OF THE BUSINESS

 

	
  Infigen Inc.

  	
  Prolinea

  
	
  Genetic Savings and Clone

  	
  NY Cloning LLC

  
	
  XY Genetics

  	
  Clone Australia

  
	
  XY, Inc.

  	
  Semex

  
	
  Evergreen Biotechnologies

  	
   

  
	
  PPL Theraputics

  	
   

  
	
  Imclone

  	
   

  
	
  Genzyme Transgenics

  	
   

  
	
  Geron Corporation

  	
   

  
	
  Bresagen

  	
   

  

 

Sch. 5-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]