Document:

Exhibit 10.34

 

Advanced Cell Technology, Inc.

 

2004 STOCK OPTION PLAN II

 

1.                                       Purpose.  Advanced Cell Technology, Inc.
(the “Company”), hereby adopts the Advanced Cell Technology, Inc. 2004
Stock Option Plan II (the “Plan”), The Plan is intended to recognize the
contributions made to the Company by employees (including employees who are
members of the Board of Directors) of and advisors or consultants to the
Company or any Affiliate, to provide such persons with additional incentive to
devote themselves to the future success of the Company or an Affiliate, and to
improve the ability of the Company or an Affiliate to attract, retain, and
motivate individuals upon whom the Company’s sustained growth and financial
success depend, by providing such persons with an opportunity to acquire or
increase their proprietary interest in the Company through receipt of rights to
acquire the Company’s Common Stock, par value $0.001 per Share (the “Common
Stock”), In addition, the Plan is intended as an additional incentive to
directors of the Company who are not employees of the Company or an Affiliate
to serve on the Board of Directors and to devote themselves to the future
success of the Company by providing them with an opportunity to acquire or
increase their proprietary interest in the Company through the receipt of
Options to acquire Common Stock.

 

2.                                       Definitions.  Unless the context clearly
indicates otherwise, the following terms shall have the following meanings:

 

(a)                                  “Affiliate” means a corporation which is a
parent corporation or a subsidiary corporation with respect to the Company
within the meaning of Section 424(e) or (f) of the Code.

 

(b)                                 “Board of Directors” means the Board of
Directors of the company.

 

(c)                                  “Code” means the Internal Revenue Code of
1986, as amended.

 

(e)                                  “Committee” means the Board of Directors, or
a committee of the Board of Directors appointed in accordance with Section 3
of the Plan, when acting in connection with the administration of the Plan.

 

(f)                                    “Company” means Advanced Cell Technology, Inc.,
a Delaware corporation.

 

(g)                                 “Consultant” shall mean a non-employee
advisor or consultant retained by the Company whose services are considered by
the Committee to be of sufficient importance to the Company to merit an award
of Options hereunder.

 

(h)                                 “Disability” shall have the meaning set forth
in Section 22(c)(3) of the Code.

 

 

(i)                                     “Fair Market Value” shall have the meaning
set forth in Subsection 8(b) of the Plan.

 

(j)                                     “ISO” means an Option granted under the Plan
that is intended to qualify as an “incentive stock option” within the meaning
of Section 422(b) of the code.

 

(k)                                  “Non-employee Director” means a member of the
Board of Directors who is not an employee of the Company or an Affiliate.

 

(1)                                  “Non-qualified Stock Option” means an Option
granted under the Plan which is not intended to qualify, or otherwise does not
qualify, as an “incentive stock option” within the meaning of Section 422(b) of
the Code.

 

(m)                               “Option” means either an ISO or a
Non-qualified Stock Option granted under the Plan.

 

(n)                                 “Optionee” means a person to whom an option
has been granted under the Plan, which Option has not been exercised and has
not expired or terminated.

 

(o)                                 “Option Document” means the document
described in Section 8 of the Plan, which sets forth the terms and
conditions of each grant of Options.

 

(p)                                 “Option Price” means the price at which
Shares may be purchased upon exercise of an Option, as calculated pursuant to
Subsection 8(b) of the Plan.

 

(q)                                 “Rule 16b-3” means Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended.

 

(r)                                    “Shares” means the shares of Common Stock of
the Company that are the subject of Options.

 

3.                                     Administration of the Plan.  The
Plan shall be administered by the Board of Directors of the Company; however,
the Board of Directors may designate a committee composed of at least two
non-employee Directors within the meaning of Rule 16b-3(3) to
operate and administer the Plan in its stead (the “Committee”).  With respect to Non-employee Directors who are
to be granted Options in accordance with the provisions of Section 9, the
directors to whom Options will be granted, the timing of grants of Options, the
price at which Shares may be purchased and the number of Shares covered by
Options granted to each Optionee shall be as specifically set forth herein, and
subject to the foregoing and the other provisions set forth herein, the Plan,
as it pertains to Non-employee Directors, shall be administered by the
Committee.

 

(a)                                  Meetings.  The Committee shall hold
meetings at such times and places as it may determine.  Acts approved at a meeting by a majority of
the members of the Committee or acts approved in writing by unanimous consent
of the members of the Committee shall be the valid acts of the Committee.

 

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(b)                                 Grants.  Except with respect to Options
granted to Non-employee Directors pursuant to Section 9, the Committee
shall from time to time at its discretion direct the Company to grant Options
pursuant to the terms of the Plan.  The
Committee shall have plenary authority to (i) determine the Optionees to
whom, the times at which, and the price at which Options shall be granted, (ii) determine
the type of Option to be granted and the number of Shares subject thereto, and (iii) approve
the form and terms and conditions of the Option Documents; all subject,
however, to the express provisions of the Plan.  In making such determinations, the Committee
may take into account the nature of the Optionee’s services and
responsibilities, the Optionee’s present and potential contribution to the
Company’s success and such other factors, as it may deem relevant.  Notwithstanding the foregoing, grants of the
Options to Non-employee Directors shall be made in accordance with Section 9.
 The interpretation and construction by
the Committee of any provisions of the Plan or of any Option granted under it
shall be final, binding and conclusive.

 

(c)                                   Exculpation.  No member of the Board of
Directors shall be personally liable for monetary damages for any action taken
or any failure to take any action in connection with the administration of the
Plan or the granting of Options under the Plan, provided that this Subsection 3(c) shall
not apply to (i) any breach of such member’s duty of loyalty to the Company
or its stockholders, (ii) acts or omissions not in good faith or involving
intentional misconduct or a knowing violation of law, (iii) acts or
omissions that would result in liability under Section 174 of the General
Corporation Law of the State of Delaware, as amended, and (iv) any
transaction from which the member derived an improper personal benefit.

 

(d)                                  Indemnification.  Service
on the Committee shall constitute service as a member of the Board of Directors
of the Company.  Each member of the Committee
shall be entitled without further act on his part to indemnity from the Company
to the fullest extent provided by applicable law and the Company’s Certificate
of Incorporation and/or By-laws in connection with or arising out of any
action, suit or proceeding with respect to the administration of the Plan or
the granting of Options thereunder in which he or she may be involved by reason
of his or her being or having been a member of the Committee, whether or not he
or she continues to be such member of the Committee at the time of the action,
suit or proceeding.

 

4.                                       Grants under the Plan.  Grants
under the Plan may be in the form of a Non-qualified Stock Option, an ISO or a
combination thereof, at the discretion of the Committee.

 

5.                                       Eligibility.  All employees, Consultants and
members of the Board of Directors shall be eligible to receive Options
hereunder.  However, Non-employee
Directors may receive Options only pursuant to Section 9.  The Committee, in its sole discretion, shall
determine all questions of eligibility to receive Options hereunder.

 

6.                                       Shares Subject to Plan.  The
aggregate maximum number of Shares for which Options may be granted pursuant to
the Plan is One Million Three Hundred One Thousand One Hundred and Sixty One
(1,301,161) Shares, subject to adjustment as provided in Section 11 of the
Plan.  The Shares shall be issued from
authorized and unissued Common Stock or Common Stock held in or hereafter
acquired for the treasury of the Company.  If an Option terminates or expires without
having been fully exercised for any reason, the Shares for which the Option was
not exercised may again be the subject of one or more Options granted pursuant
to the Plan.

 

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7.                                      Term of the Plan.  The
Plan is effective as of December 13, 2004, the date on which it was
adopted by the Board of Directors of the Company.  No Option may be granted under the Plan after December 13,
2014.

 

8.                                      Option Documents and Terms.  Each
Option granted under the Plan shall be a Non-qualified Stock Option unless the
option shall be specifically designated at the time of grant to be an ISO.  If any Option designated an ISO is determined
for any reason not to qualify as an Incentive Stock Option within the meaning
of Section 422 of the Code, such Option shall be treated as a
Non-qualified Stock Option for all purposes under the provisions of the Plan.  Options granted pursuant to the Plan shall be
evidenced by the Option Documents in such form as the Committee shall from time
to time approve, which Option Documents shall comply with and be subject to the
following terms and conditions and such other terms and conditions as the
Committee shall from time to time require which are not inconsistent with the
terms of the Plan.  However, the
provisions of this Section 8 shall not be applicable to options granted to
Non-employee Directors, except as otherwise provided in Subsection 9(c).

 

(a)                                  Number of Option Shares.  Each
Option Document shall state the number of Shares to which it pertains.  An Optionee may receive more than one Option,
which may include Options which are intended to be ISO’s and options which are
not intended to be ISO’s, but only on the terms and subject to the conditions
and restrictions of the Plan.

 

(b)                                 Option Price.  Each
Option Document shall state the Option Price which, for a Non-qualified Stock
Option, may be less than, equal to or greater than the Fair Market Value of the
Shares on the date the Option is granted and, for an ISO, shall be at least
100% of the Fair Market Value of the Shares on the date the option is granted
as determined by the Committee in accordance with this Subsection 8(b);
provided, however, that if an ISO is granted to an Optionee who then owns,
directly or by attribution under Section 424(d) of the Code, shares
possessing more than ten percent of the total combined voting power of all
classes of stock of the Company or an Affiliate, then the Option Price shall be
at least 110% of the Fair Market Value of the Shares on the date the Option is
granted.  If the Common Stock is traded
on the OTC Bulletin Board, any similar electronic quotation system or on a
nationally recognized stock exchange, then the Fair Market Value per share
shall be, if the Common Stock is listed on a national securities exchange or
included in the NASDAQ National Market System, the last reported sale price
thereof on the relevant date or, if the Common Stock is not so listed or
included, the average of the last reported “bid” and “asked” prices thereof on
the relevant date, as reported on NASDAQ or, if not so reported, as reported by
the National Quotation Bureau, Inc., or as reported in a customary
financial reporting service, as applicable and as the Committee determines.  At any time at which the Common Stock is not
traded on the OTC Bulletin Board, any similar electronic quotation system or on
a nationally recognized stock exchange, then the Fair Market Value per share
shall be determined by the Board of Directors, acting in good faith, and such
determination shall be final and binding for all purposes of this Plan.

 

(c)                                  Exercise.  No Option shall be deemed to
have been exercised prior to the receipt by the Company of written notice of
such exercise and of payment in full of the Option Price for the Shares to be
purchased.  Each such notice shall
specify the number of Shares to be

 

4

 

purchased and (unless the
Shares are covered by a then current registration statement or a Notification
under Regulation A under the Securities Act of 1933 (the “Act”) ) shall contain
the Optionee’s acknowledgment in form and substance satisfactory to the Company
that (a) such Shares are being purchased for investment and not for
distribution or resale (other than a distribution or resale which, in the
opinion of counsel satisfactory to the Company, may be made without violating
the registration provisions of the Act), (b) the Optionee has been advised
and understands that (i) the Shares have not been registered under the Act
and are “restricted securities” within the meaning of Rule 144 under the
Act and are subject to restrictions on transfer and (ii) the Company is
under no obligation to register the Shares under the Act or to take any action
which would make available to the Optionee any exemption from such
registration, (c) such Shares may not be transferred without compliance
with all applicable federal and state securities laws, and (d) an
appropriate legend referring to the foregoing restrictions on transfer and any
other restrictions imposed under the Option Documents may be endorsed on the
certificates.  Notwithstanding the
foregoing, if the Company determines that issuance of Shares should be delayed
pending (A) registration under federal or state securities laws, (B) the
receipt of an opinion of counsel satisfactory to the Company that an
appropriate exemption from such registration is available, (C) the listing
or inclusion of the Shares on any securities exchange or an automated quotation
system or (D) the consent or approval of any governmental regulatory body
whose consent or approval is necessary in connection with the issuance of such
Shares, the Company may defer exercise of any Option granted hereunder until
any of the events described in this sentence has occurred.

 

(d)                                 Medium of Payment.  An
Optionee shall pay for Shares (i) in cash, (ii) by certified, bank or
cashier’s check payable in clearing house funds to the order of the Company, or
(iii) by such other mode of payment as the Committee may approve,
including payment through a broker in accordance with procedures permitted by
Regulation T of the Federal Reserve Board.  Furthermore, the Committee may provide in an
Option Document that payment may be made in whole or in part in shares of the
Company’s Common Stock held by the Optionee.  If payment is made in whole or in part in
shares of the Company’s Common Stock, then the Optionee shall deliver to the
Company certificates registered in the name of such Optionee representing the
shares owned by such Optionee, free of all liens, claims and encumbrances of
every kind and having an aggregate Fair Market Value on the date of delivery
that is at least as great as the Option Price of the Shares (or relevant
portion thereof) with respect to which such Option is to be exercised by the payment
in shares of Common Stock, endorsed in blank or accompanied by stock powers
duly endorsed in blank by the Optionee.  In
the event that certificates for shares of the Company’s Common Stock delivered
to the Company represent a number of shares in excess of the number of shares
required to make payment for the Option Price of the Shares (or relevant
portion thereof) with respect to which such Option is to be exercised by
payment in shares of Common Stock, the stock certificate issued to the Optionee
shall represent the Shares in respect of which payment is made, and an
additional certificate shall be issued to the Optionee for such excess number
of shares.

 

(e)                                 Termination of Options.

 

 

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(i)                                     No Option shall be exercisable after the
first to occur of the following:

 

(A)                              Expiration of the Option term specified in
the Option Document, which shall not occur after (10) ten years from the
date of grant, or (2) five years from the date of grant of an ISO if the
Optionee on the date of grant owns, directly or by attribution under Section 424(d) of
the Code, shares possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or of an Affiliate.

 

(B)                                A finding by the Committee, after full
consideration of the facts presented on behalf of both the Company and the
Optionee, that the Optionee has breached his employment or service contract
with the Company or an Affiliate, or has been engaged in disloyalty to the
Company or an Affiliate, including, without limitation, fraud, embezzlement,
theft, commission of a felony or proven dishonesty in the course of his
employment or service, or has disclosed trade secrets or confidential
information of the Company or an Affiliate.  In such event, in addition to immediate
termination of the option, the Optionee shall automatically forfeit all Shares
for which the Company has not yet delivered the share certificates upon refund
by the Company of the Option Price.  Notwithstanding
anything herein to the contrary, the Company may withhold delivery of share
certificates pending the resolution of any inquiry that could lead to a finding
resulting in a forfeiture.

 

(C)                                The date, if any, set by the Board of
Directors as an accelerated expiration date in the event of the liquidation or
dissolution of the Company.

 

(ii)                                  Notwithstanding
the foregoing, the Committee may extend the period during which all or any
portion of an Option may be exercised to a date no later than the Option term
specified in the Option Document pursuant to Subsection 8(e)(i)(A),
provided that any change pursuant to this Subsection 8(e)(ii) which
would cause an ISO to become a Non-qualified Stock Option may be made only with
the consent of the Optionee.  The
Committee may also grant Options with shorter periods during which the Options
may be exercised.

 

(f)                                    Transfers.
 No Option granted under the Plan may be
transferred, except by will or by the laws of descent and distribution.  During the lifetime of the person to whom an
option is granted, such Option may be exercised only by him.  Notwithstanding the foregoing, a Non-qualified
Stock Option may be transferred pursuant to the terms of a “qualified domestic
relations order,” within the meaning of Sections 401(a)(l3) and 414(p) of the
Code or within the meaning of Title I of the Employee Retirement Income
Security Act of 1974, as amended.

 

(g)                                 Limitation on ISO Grants.  In
no event shall the aggregate fair market value of the shares of Common Stock
(determined at the time the ISO is granted) with respect to which incentive
stock options under all incentive stock option plans of the Company or its
Affiliates are exercisable for the first time by the Optionee during any
calendar year exceed $100,000.

 

6

 

(h)                                 Other Provisions.  Subject
to the provisions of the Plan, the Option Documents shall contain such other
provisions including, without limitation, provisions authorizing the Committee
to accelerate the exercisability of all or any portion of an option granted
pursuant to the Plan, additional restrictions upon the exercise of the option
or additional limitations upon the term of the Option, as the Committee shall
deem advisable.

 

(i)                                      Amendment.  Subject to the provisions of
the Plan, the Committee shall have the right to amend Option Documents issued
to an Optionee, subject to the Optionee’s consent if such amendment is not
favorable to the Optionee, except that the consent of the Optionee shall not be
required for any amendment made pursuant to Subsection 8(e)(i)(C) or Section 10
of the Plan, as applicable.

 

9.                                       Special Provisions Relating to Grants of
Options to Non-employee Directors.  Options granted pursuant to
the Plan to Non-employee Directors shall be granted, without any further action
by the Committee, in accordance with the terms and conditions set forth in this
Section 9.  Options granted pursuant
to this Section 9 shall be evidenced by Option Documents in such form as
the Committee shall from time to time approve, which option Documents shall
comply with and be subject to the following terms and conditions and such other
terms and conditions as the Committee shall from time to time require which are
not inconsistent with the terms of the Plan.

 

(a)                                  Type of Options; Option Price.  Except
as otherwise provided herein or in the applicable Option Document with respect
to the termination of such Options or the acceleration of the exercisability
thereof, each such Option shall be a Non-qualified Stock Option, exercisable at
any time during its term following the date of grant.  The Option Price shall be equal to the Fair
Market Value of the Shares on the date the Option is granted.

 

(b)                                 Termination of Option Granted Pursuant to Section 9.  All
Options granted pursuant to this Section 9 shall be exercisable until the
first to occur of the following:

 

(i)                                       Expiration of ten (10) years from the
date of grant; or

 

(ii)                                   Expiration of one (1) year from the date
the Optionee’s service with the Company as a director terminates due to the Optionee’s
Disability or death.

 

10.                                 Adjustments on Changes in Capitalization.  The
aggregate number of Shares and class of shares as to which Options may be
granted hereunder, the number and class or classes of shares covered by each
outstanding Option and the Option Price thereof shall be appropriately adjusted
in the event of a stock dividend, stock split, recapitalization or other change
in the number or class of issued and outstanding equity securities of the
Company resulting from a subdivision or consolidation of the Common Stock
and/or, if appropriate, other outstanding equity securities or a
recapitalization or other capital adjustment (not including the issuance of
Common Stock on the conversion or exchange of other securities of the Company
which are convertible into or exchangeable for Common Stock) affecting the
Common Stock which is effected without receipt of consideration by the Company.
 The

 

7

 

Committee shall have
authority to determine the adjustments to be made under this Section, and any
such determination by the Committee shall be final, binding and conclusive;
provided, however, that no adjustment shall be made which will cause an ISO to
lose its status as such without the consent of the Optionee.

 

11.                              Amendment of the Plan.  The
Board of Directors of the Company may amend the Plan from time to time in such
manner as it may deem advisable.  Nevertheless,
the Board of Directors of the Company may not change the class of individuals
eligible to receive an ISO or increase the maximum number of shares as to which
Options may be granted without obtaining approval, within twelve months before
or after such action, by vote of a majority of the votes cast at a duly called
meeting of the stockholders at which a quorum representing a majority of all
outstanding voting stock of the Company is, either in person or by proxy,
present and voting on the matter.  No
amendment to the Plan shall adversely affect any outstanding Option, however,
without the consent of the Optionee.

 

12.                              No Commitment to Retain.  The
grant of an Option pursuant to the Plan shall not be construed to imply or to
constitute evidence of any agreement, express or implied, on the part of the
Company or any Affiliate to retain the Optionee in the employ of the Company or
an Affiliate and/or as a member of the Company’s Board of Directors or in any
other capacity.

 

13.                              Withholding of Taxes.  Whenever
the Company proposes or is required to deliver or transfer Shares in connection
with the exercise of an Option, the Company shall have the right to (a) require
the recipient to remit or otherwise make available to the Company an amount
sufficient to satisfy any federal, state and/or local withholding tax
requirements prior to the delivery or transfer of any certificate or
certificates for such Shares or (b) take whatever other action it deems
necessary to protect its interests with respect to tax liabilities.  The Company’s obligation to make any delivery
or transfer of Shares shall be conditioned on the Optionee’s compliance, to the
Company’s satisfaction, with any withholding requirement.

 

14.                              Interpretation.  The
Plan is intended to enable transactions under the Plan with respect to
directors and officers (within the meaning of Section 16(a) under the
Securities Exchange Act of 1934, as amended) to satisfy the conditions of Rule 16b-3
or its successors; to the extent that any provision of the Plan would cause a
conflict with such conditions or would cause the administration of the Plan as
provided in Section 3 to fail to satisfy the conditions of Rule 16b-3,
such provision shall be deemed null and void to the extent permitted by
applicable law.  This Section shall
not be applicable if no class of the Company’s equity securities is then
registered pursuant to Section 12 of the Securities Exchange Act of 1934,
as amended.

 

8Exhibit
10.36

 

ADVANCED CELL TECHNOLOGY, INC.

 

STOCK OPTION AGREEMENT

 

THIS AGREEMENT, made as of this 12th day of August,
2004, by and between ADVANCED CELL TECHNOLOGY, INC. (“Company”), a Delaware
corporation, and                               
(“Optionee”).

 

WITNESSETH:

 

WHEREAS, Company desires to
provide an incentive to Optionee, to encourage stock ownership by Optionee, to
encourage Optionee to remain in the employ of Company, and to increase such
Optionee’s proprietary interest in Company’s success;

 

NOW, THEREFORE, it is agreed between Company and
Optionee as follows.

 

1.                                       Stock Option—Number and Price.

 

Subject to the terms and
conditions herein and to the provisions of the Advanced Cell Technology, Inc.
2004 Stock Option Plan, as it may be amended from time to time (the “Plan”),
the provisions of which are incorporated herein by reference, Company hereby
grants to Optionee the right and option (the “Option”) to purchase from Company
up to                         
shares (the “Shares”) of the Company’s Common Stock (“Stock”), par value $0.001
per share, at a price of $0.05 per Share (the “Option Price”).

 

2.                                       Type of Option.

 

This Option is intended to be an incentive stock option as defined in Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

 

3.                                       Exercise—Timing
and Method.

 

(a)                                  Subject to the restriction in Section 6
of this Agreement, the Option may be exercised at any time on or after the date
of this Agreement with respect to the Shares vested as of the date of exercise.
                   shares
of the Shares shall be deemed vested upon signature of this Agreement and the
remaining Shares shall vest at a rate of
                   
shares as of the last day of each month following the signature of this
Agreement for so long as the Optionee remains in the employ of the Company.  All unvested Shares shall be deemed fully
vested on the date the Company executes a definitive agreement to effectuate a
reverse merger with a company whose stock is qualified to be quoted on the OTC
Bulletin Board or similar electronic quotation system or with a company whose
stock is listed on a nationally recognized exchange.

 

(b)                                Optionee, from time to time during the period
when the Option may be exercised hereunder, may so exercise the Option in whole
or in part by delivering to Company (attention: Stock Option Plan Committee):

 

 

(i)                                     A written notice signed by Optionee

 

(1)                                  stating the number of shares of Stock that
Optionee has elected to purchase at any time; and

 

(2)                                  (unless the Shares are covered by a then
current registration statement or a Notification under Regulation A under the Securities
Act of 1933 (the “Act”)) acknowledging in form and substance satisfactory to
the Company that

 

(a)                                  such Shares are being purchased for
investment and not for distribution or resale (other than a distribution or
resale which, in the opinion of counsel satisfactory to the Company, may be
made without violating the registration provisions of the Act);

 

(b)                                 the Optionee has been advised and understands
that (i) the Shares have not been registered under the Act and are “restricted securities”
within the meaning of Rule 144 under the Act and are subject to restrictions on
transfer and (ii) the Company is under no obligation to register the Shares
under the Act or to take any action which would make available to the Optionee
any exemption from such registration;

 

(c)                                  such Shares may not be transferred without
compliance with all applicable federal and state securities laws;

 

(d)                                 the Optionee agrees to be bound by the terms
of any shareholders agreement then in effect among all (or a substantial number)
of the Company’s shareholders; and

 

(e)                                  an appropriate legend referring to the
foregoing restrictions on transfer and any other restrictions imposed under the
Option Documents, as defined in the Plan, may be endorsed on the certificates;
and

 

(ii)                                  In an amount equal to the Option Price of the
Shares of Stock then to be purchased, Optionee’s cash, certified, bank or
cashier’s check payable in clearing house funds to the order of the Company, or
such other mode of payment as the Committee may approve, including (1) payment
through a broker in accordance with procedures permitted by Regulation T of the
Federal Reserve Board, or (2) payment in whole or in part in shares of the
Company’s Common Stock held by the Optionee or to be issued to the Optionee
under the Option, in which case Optionee shall deliver to the Company
certificates registered in the name of such Optionee representing the shares
owned by such Optionee, free of all liens, claims and encumbrances of every
kind and having an aggregate Fair Market Value on the date of delivery that is
at least as great as the Option Price of

 

 

the Shares (or relevant portion thereof) with respect to which such
Option is to be exercised by the payment in shares of Common Stock, endorsed in
blank or accompanied by stock powers duly endorsed in blank by the Optionee,

 

4.                                       Restriction on Transferability.

 

This Option is not transferable by Optionee otherwise than by will or
the laws of descent and distribution, and is exercisable, during the lifetime
of Optionee, only by Optionee.

 

5.                                       Adjustment in Number of Shares and Option
Prices: Reserved Option Shares.

 

In the event that there are any changes in the outstanding Stock of the
Company by reason of stock dividends, splits, combinations of shares,
recapitalizations, reorganizations, mergers, consolidations, combinations, or
exchanges of shares or the like, the number of shares subject to the Option and
the Option Price shall be appropriately adjusted by the Committee (as defined
in the Plan), if necessary, to reflect equitably such change or changes.  The determination of the Committee in this
regard shall be conclusive.

 

The Company shall at all times during the term of this Agreement
reserve and keep available such number of shares of Stock as will be sufficient
to satisfy the requirements of this Agreement.

 

6.                                       Termination of Option.

 

(a)                                  This Option is not exercisable after (i) the
tenth anniversary of the date first above written.

 

(b)                                 Notwithstanding the termination date provided
in Section 6(a), no Option shall be exercisable after the date, if any,
set by the Board of Directors as an accelerated expiration date in the event of
the liquidation or dissolution of the Company.

 

(c)                                  Notwithstanding the limitations of Section 6(b),
the Committee may extend the period during which all or any portion of an
Option may be exercised to a date no later than the term specified in Section 6(a).

 

7.                                       Amendment.

 

The Committee shall have the right to amend this Agreement, subject to
the Optionee’s consent if such amendment is not favorable to the Optionee.  Optionee may not amend this Agreement other
than in a writing signed by the Company and the Optionee.

 

8.                                   Right of First Refusal.

 

(a)                                  Transfer Notice.  If at any time prior to an “Effective
Transaction” (as defined in the Company’s Certificate of Amendment of
Certificate of Incorporation), Optionee (or any transferee of Optionee subject
to or bound by this Agreement) proposes to transfer shares of

 

 

Stock
to one or more third parties pursuant to an understanding with such third
parties (a “Transfer”), then Optionee shall give the Company written notice of
the Optionee’s intention to make the Transfer (the “Transfer Notice”), which
Transfer Notice shall include (i) a description of the Stock to be transferred
(“Offered Shares”), (ii) the name and address of the prospective transferee(s)
and (iii) the consideration and the material terms and conditions upon which
the proposed Transfer is to be made. The Transfer Notice shall certify that the
Optionee has received a firm offer from a prospective transferee(s) and in good
faith believes a binding agreement for the Transfer is obtainable on the terms
set forth in the Transfer Notice.  The
Transfer Notice shall also include a copy of any written proposal, term sheet
or letter of intent or other agreement relating to the proposed Transfer.

 

(b)                                 Company’s Option.  The Company shall have an option for a period
of fifteen (15) days from receipt of the Transfer Notice to elect to purchase
the Offered Shares at the same price and subject to the same material terms and
conditions as described in the Transfer Notice. 
The Company may exercise such purchase option and, thereby, purchase all
(but not less than all) of the Offered Shares by notifying the Optionee in
writing before such expiration of such fifteen (15) day period.  If the Company gives the Optionee notice that
it desires to purchase such shares, then payment for the Offered Shares shall
be by check or wire transfer, against delivery of the Offered Shares to be
purchased at a place agreed upon between the parties and at the time of the
scheduled closing therefor, which shall be no later than forty-five (45) days
after the Company’s receipt of the Transfer Notice, unless the Transfer Notice
contemplates a later closing with the prospective third party transferee(s). If
the Company fails to purchase all of the Offered Shares by exercising the
option granted in this Section 8(b) within the period provided, the
Optionee may effect the Transfer upon terms not more favorable to the
prospective third-party transferee than those described in the Transfer Notice.

 

(c)                                  No Offered Shares shall be transferred by
Optionee until and unless the proposed transferee enters into an agreement
satisfactory to the Company agreeing to be bound by the provisions of this Section 8.

 

9.                                       General.

 

Words used in this Agreement shall have the same meaning as the same
words used in the Plan.  In the event of
any inconsistency between this Agreement and the Plan, the terms of this
Agreement shall govern.  This Agreement,
together with the Plan, constitutes the parties’ entire agreement with respect
to the subject matter hereof, and supersedes any and all prior and or written
agreements or understandings with respect thereto.

 

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

 

	
   

  	
  ADVANCED
  CELL TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Michael D. West, President

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