Document:

Supplementary
      Agreement to

    The
      Project Construction Contract Dated July 25, 2008

    

    Party
      A:
      The People’s Government of Linwei District, Weinan City (addressed as party A
      below)

    Party
      B:
      Tianjin Yayi Industrial Co., Ltd. (addressed as party B below)

    

    According
      to the Contract Law of the People’s Republic of China and related regulations,
      both parties have negotiated and agreed on the following clauses which are
      supplementary to the Project Construction Contract signed on July 25,
      2008:

    

    Clause1.
      Considering that party B will have to do a lot of preliminary preparation such
      as measuring, building design, construction materials purchase and so on, and
      that it is earth frozen period, which is not suitable for construction, from
      December to the next February in Weinan City, party A agrees that party B may
      start construction within 6 months after signing this agreement. The first
      phase
      of the project will complete within 10 months after construction starts, while
      the second phase of the project construction will start before January 2010
      and
      will complete10 months after construction starts.

    

    Clause2.
      Party A agrees that party B may pay one million first within ten days after
      signing the Project Construction Contract dated July 25, 2008. And the balance
      should be paid off before the construction starts.

    

    Clause3.
      The supplementary agreement is effective right after both parties’ signing.
      Meanwhile, the related clauses in the Project Construction Contract dated July
      25, 2008 will be subject to the content of this agreement.

    

    Clause4.
      The agreement shall be in duplicate, with each of party A and party B holding
      one copy.

     

     

    Party
      A:
      The People’s Republic of Linwei District, Weinan City

    Authorized
      representative: signature and stamp

    Date:
      September 16, 2008

    

    

    Party
      B:
      Tianjin Yayi Industrial Co., Ltd.

    Authorized
      representative: signature and company seal

    Date:
      September 16, 2008Execution
      Copy

     

    AGREEMENT
      entered into this 22nd day of September, 2008 by and between Paul Royalty Fund,
      L.P. (the "Seller") and Forticell Bioscience, Inc. (the "Company").

     

    WHEREAS,
      in order to simplify the Company's capital structure and thereby facilitate
      its
      ability to obtain additional funding for continued operations of the Company,
      the Company desires to purchase and redeem the Securities (as defined below)
      from Seller, 

     

    WHEREAS,
      Seller desires to sell the Securities to the Company;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements herein
      contained, the parties hereto agree as follows:

     

    1. Subject
      to the terms and conditions of this Agreement, at the Closing (as defined
      below), Seller shall sell to the Company, and the Company shall purchase and
      redeem from
      Seller, all of the equity securities of the Company owned by Seller
      which consists of the following (collectively, the "Securities"):

     

    
      	 	
              (a)

            	
              500
                shares of the Company's Series A-1 Convertible Preferred
                Stock;

            

    

     

    
      	 	
              (b)

            	
              500
                shares of the Company's Series A-2 Convertible Preferred
                Stock;

            

    

     

    
      	 	
              (c)

            	
              21,434
                shares of the Company's Common Stock;
                and

            

    

     

    
      	 	
              (d)

            	
              The
                Company's Series E Warrant No. 20 entitling the Seller to purchase
                556
                shares of the Company's Common
                Stock.

            

    

     

    The
      purchase price for the Securities will be payable by the Company on a deferred
      basis as described in and in accordance with Section 4 hereof.

     

    2. Subject
      to the terms and conditions of this Agreement and as a condition to Seller's
      obligation to sell the Securities and to the Company's obligation to purchase
      the Securities, at the Closing (a) Seller shall also execute and deliver to
      the
      Company a general release and non-disparagement agreement in the form attached
      to this Agreement as Exhibit A (the "Seller/Forticell Release") and (b) the
      Company
      shall
      execute and deliver
      to Seller a general release and non-disparagement agreement in the form attached
      as
      Exhibit B (the "Forticell/Seller Release"). The
      Seller/Forticell
      Release and the Forticell/Seller Release, are
      hereinafter collectively referred to as the "Releases".

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. The
      closing of the transactions set forth in this Agreement (the "Closing"),
      including execution and delivery of the Releases, is taking place simultaneously
      with the execution and delivery of this Agreement. The time
      and
      date on which the Closing actually occurs is herein referred to as the "Closing
      Date."

     

    4. (a) In
      addition to the exchange of releases occurring at the Closing, if and only
      if
      the FDA has granted approval hereafter to Forticell (or any successor,
      assignee or affiliate of Forticell) for the marketing and commercial sale of
      Forticell's cryo-preserved Orcel product
      (the "FDA Approval") on or before the second anniversary of the Closing Date,
      the Company shall pay to Seller an amount (the "Deferred Purchase Price")
equal
      to
      (a) $5 million (reduced by the amount of any reimbursement payment made by
      the
      Company to the Seller pursuant to Section 8 hereof) if the FDA Approval has
      occurred on or before the first anniversary
      of the Closing Date, or (b) $2 million (reduced
      by the amount of any reimbursement payment made by the Company to the Seller
      pursuant to Section 8 hereof)
      if the
      FDA Approval has occurred after the first anniversary of the Closing Date and
      on
      or before the second anniversary of the Closing Date. In the event the FDA
      Approval has not occurred on or before the second anniversary of the Closing
      Date, thereafter the Company will have no Deferred Purchase Price payment
      obligation hereunder. The Company shall not retire the Securities while it
      has
      an outstanding Deferred Purchase Price payment obligation hereunder. The Company
      will cause any subsequent transferee
      of the Securities to assume the obligations of the Company to pay the Deferred
      Purchase
      Price. The obligation of the Company to pay the Deferred Purchase Price shall
      survive and remain the obligation of the Company regardless of any subsequent
      sale or transfer of the Securities by the Company to a third
      party.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b) To
      secure
      payment and performance of the Company's obligations hereunder, including
      payment of the Deferred Purchase Price pursuant to Section 4(a) hereof, the
      Company is granting a security interest to the Seller in its Intellectual
      Property, except that with respect to patents, patent registrations and patent
      applications, the security interest is limited to U.S. patents and patent
      registrations (the "Patents") and U.S. Patent applications listed in Exhibit
      "C", by executing and delivering (i) a patent security agreement in the form
      attached as Exhibit "D" (the "Patent Security Agreement") and (ii) a security
      agreement in the form attached as Exhibit "E" (the "Security Agreement"). The
      Patent Security Agreement and Security Agreement are hereinafter collectively
      referred to as the "Security Documents". As used herein, the term "Intellectual
      Property" shall mean, relating to cryo-preserved and fresh Orcel products,
      all
      inventions (whether patentable or unpatentable and whether or not reduced to
      practice), all improvements thereto, and all patents, patent rights, patent
      applications and invention disclosures, together with all reissuance,
      continuations, continuations-in-part, revisions, extensions, and reexaminations
      thereof, all registered or unregistered trademarks, trade names, service
      marks, including all goodwill associated therewith, and copyrights and all
      applications and registrations for any of the foregoing, and all Confidential
      Information. As used herein, "Confidential Information" shall mean, relating
      to
      cryo-preserved and fresh Orcel products, know-how, trade secrets, confidential
      business information, financial data and other like information (including
      ideas, research and development, know-how, formulas, schematics, compositions,
      technical data, specifications, customer and supplier lists, pricing and cost
      information, and business and marketing plans and proposals), inventory, ideas,
      algorithms, processes, computer software programs or applications (in both
      source code and object code form), client lists and tangible or intangible
      proprietary information or material. Notwithstanding the foregoing definition,
      Confidential Information shall not include information already in the public
      domain at the time such information is disclosed. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5. The
      Company represents and warrants that (a) it has the full power and
      authority to execute and deliver this Agreement and to perform its obligations
      hereunder;
      (b) this Agreement has been duly and validly executed by it and constitutes
      its
valid
      and
      legally binding obligation enforceable in accordance with this Agreement's
      terms
      except as such enforceability may be limited by bankruptcy, insolvency,
reorganization,
      moratorium, or similar laws relating to or affecting the enforcement of
      creditors rights in general and by general principles of equity; (c) the
      execution, delivery and performance of this Agreement will not violate any
      provision of, or result in the acceleration of any material obligation under,
      any mortgage, lien, lease, agreement, instrument,
      order , arbitration award, judgment or decree to which it is a party or by
      which
      it
      is bound in a manner which would prevent it from consummating the transactions
      contemplated hereby; and (d) it is the owner, free and clear of all liens or
      security interests therein, of the Intellectual Property. Schedule 5 hereto
      sets
      forth a complete and accurate list of all the Company's (i) U.S. Patents and
      U.S. Patent applications and (ii) registrations and applications for
      registration with the U.S. Trademark Office of trade names, trademarks and
      copyrights and all material unregistered trademarks and copyrights, if any,
      relating to the development, manufacture, commercialization, marketing or other
      use of cryo-preserved and fresh Orcel products.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6. Seller
      represents and warrants that (a) it is the owner of the Securities free and
      clear of any liens thereon or security interests therein; (b) it has the full
      power and authority to execute and deliver this Agreement and to perform its
      obligations hereunder; (c) this Agreement has been duly and validly executed
      by
      it and constitutes its valid and legally binding obligation enforceable in
      accordance with this Agreement's terms except
      as
      such enforceability may be limited by bankruptcy, insolvency, reorganization,
      moratorium, or similar laws relating to or affecting the enforcement of
      creditors rights in general
      and by general principles of equity; and (d) the execution, delivery and
      performance of this Agreement will not violate any provision of, or result
      in
      the acceleration of any material obligation under, any mortgage, lien, lease,
      agreement, instrument, order , arbitration award, judgment or decree to which
      it
      is a party or by which
      it
      is bound in a manner which would prevent it from consummating the transactions
      contemplated hereby.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    7. Seller
      expressly disclaims any representations and warranties of any
      kind
      or nature, express or implied, as to the Securities (except as set forth in
      Section 6(a)), the Company or its subsidiaries or affiliates or any of their
      respective assets, liabilities, operations or prospects. The Company
      acknowledges that no such representations and warranties have been made by
      Seller and the Company
      is
      relying solely on its own knowledge of its own affairs
      before
      acquiring the Securities.

     

    8. Each
      of
      the parties hereto shall pay without right of reimbursement from any other
      party
      all the costs incurred by it incident to
      the
      preparation, execution and delivery of this Agreement and the performance of
      its
      obligations hereunder, including without limitation the fees and expenses of
      its
      counsel, financial
      advisors and accountants, except that the Company shall reimburse the Seller
      for
      $10,000 of such fees and expenses of counsel to Seller upon the earlier to
      occur
      of (a) the sixtieth day following the Closing Date and (b) the day the Company
      has received, in one or more financings completed after the Closing, in the
      aggregate, $100,000 or more of additional capital in any form.

     

    9. Except
      for the Releases and the Security Documents, this Agreement constitutes the
      entire Agreement
      between the parties hereto with respect to the subject matter
      hereof.

     

    10. Any
      notice, demand, request, waiver or other communication required
      or permitted to be given hereunder shall be in writing and shall be effective
      (a) upon
      hand
      delivery, by telecopy or facsimile at the address or number designated below
      (if
      delivered on a business day during normal business hours where such notice
      is to
      be received), or the first business day following such delivery (if delivered
      other than on a business
      day during normal business hours where such notice is to be received) or (b)
      on
the
      second business day following the date of mailing by express courier service,
      fully prepaid,
      addressed to such address, or upon actual receipt of such mailing, whichever
      shall
      first occur.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Address
      of Seller

     

    Paul
      Royalty Fund, L.P.

    c/o
      Paul
      Capital Advisors, L.L.C.

    Two
      Grand
      Central Tower

    140
      East
      45th
      Street,
      44th
      Floor

    New
      York,
      New York 10017

    Attention:
      Lionel Leventhal

    Telephone:
      (646) 264-1106

    Facsimile:
      (646) 264-1101

     

    with
      a copy to

     

    Chadbourne
      & Parke LLP

    30
      Rockefeller Plaza

    New
      York,
      New York 10012

    Attention:
      Morton E. Grosz and A. Robert Colby

    Telephone:
      (212) 408-5592

    Facsimile:
      (212) 541-5369

     

    Address
      of the Company

     

    3960
      Broadway 

    New
      York,
      New York 10032

    Attention:
      Alan W. Schoenbart

    Telephone:
      (646) 218-1885

    Facsimile:
      (212) 740-2570

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    with
      a copy to

     

    Feder
      Kaszovitz Isaacson Weber Skala Bass & Rhine LLP

    750
      Lexington Avenue

    New
      York,
      New York 10022

    Attention:
      Gabriel Kaszovitz, Esq.

    Telephone:
      (212) 888-8200

    Facsimile:
      (212) 888-7776

     

    IN
      WITNESS WHEREOF, the
      undersigned have duly executed this Agreement as
      of the
      22nd day of September,
      2008

     

    
      	
              FORTICELL
                BIOSCIENCE, INC.

            	 
	
              The
                Company

            	 
	 	 	 
	 	 	 
	
              By:

            	
              /s/
                Alan W. Schoenbart

            	 
	
              Name

            	
              Alan
                W. Schoenbart

            	 
	
              Title:

            	
              Chief
                Executive Officer

            	 

    

    

      
        	
                PAUL
                  ROYALTY FUND, L.P.

              	 
	
                (formerly
                  known as Paul Capital

              	 
	
                Royalty
                  Acquisition Fund, L.P.)

              	 
	
                Seller

              	 
	 	 

      

    

     

    
      	
              By:

            	
              Paul
                Capital Management, LLC, its
                

            
	 	
              General
                Partner

            

    

     

    
      	
              By:

            	
              Paul
                Capital Advisors, L.L.C.

            
	 	
              its
                Manager

            

    

     

     

    
      	
              By:

            	
              /s/
                Lionel Leventhal

            
	 	
              Name:
                Lionel Leventhal

            
	 	
              Title:
                Manager

            

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    Form
      of
      Seller/Forticell Release

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    Form
      of
      /Forticell/Seller Release

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    List
      of
      U.S. Patents, Patent Registrations and Patent Applications

     

    Patents
      and Patent Registrations

     

    
      	
              OrCel® U.S. Patents

            	 	
              Title

            	 	
              Expiration

            
	 	 	 	 	 
	
              5282859/Re.
                35399

            	 	
              Composite
                Living Skin Equivalent

            	 	
              02/01/11

            
	
              6039760

            	 	
              Composite
                Living Skin Equivalent

            	 	
              02/01/11

            
	
              6500464B2

            	 	
              Trilayered
                Collagen Construct

            	 	
              12/28/20

            
	
              6638709

            	
                

            	
              Processes
                for Making Cryopreserved Composite Living Constructs

            	
                

            	
              10/28/21

            

    

     

    Patent
      Applications

     

    
      	
              U.S.
                Patent Application Serial No. 09/749,226

            	
              Filing
                Date – December 27, 2000

            
	 	 
	
              U.S.
                Patent Application Serial No. 10/032,925

            	
              Filing
                Date – December 26, 2001

            
	 	 
	
              U.S.
                Patent Application Serial No. 10/032,929

            	
              Filing
                Date – December 26, 2001

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

     

    Form
      of
      Patent Security Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    Form
      of
      Security Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      5

    (i) U.S.
      Patents and Patent Applications

     

    
      	
              OrCel® U.S. Patents

            	 	
              Title

            	 	
              Expiration

            
	 	 	 	 	 
	
              5282859/Re.
                35399

            	 	
              Composite
                Living Skin Equivalent

            	 	
              02/01/11

            
	
              6039760

            	 	
              Composite
                Living Skin Equivalent

            	 	
              02/01/11

            
	
              6500464B2

            	 	
              Trilayered
                Collagen Construct

            	 	
              12/28/20

            
	
              6638709

            	
                

            	
              Processes
                for Making Cryopreserved Composite Living Constructs

            	
                

            	
              10/28/21

            

    

     

    
      	
              U.S.
                Patent Application Serial No. 09/749,226

            	
              Filing
                Date – December 27, 2000

            
	 	 
	
              U.S.
                Patent Application Serial No. 10/032,925

            	
              Filing
                Date – December 26, 2001

            
	 	 
	
              U.S.
                Patent Application Serial No. 10/032,929

            	
              Filing
                Date – December 26, 2001

            

    

     

    (ii) Trademarks
      and Trademark Applications

     

    ORCEL,
      Registration Number 2637146, Registration Date – October 15, 2002

     

    ORCYTE,
      Serial Number 76330744, Filing Date – October 25, 2001

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