Document:

Exhibit
10.30.2

 

Summary of Terms

Collaboration Agreement and Technology License

 

July 1, 2002

 

This Summary of Terms summarizes the prior
discussions between Advanced Cell Technology, Inc. (“ACT”) and Fleni
Foundation (“Fleni”) and sets forth generally the terms and conditions of a
possible transaction under which ACT and Fleni would enter into a collaborative
research effort and non-exclusive license of certain intellectual property and
patent applications, on the terms and conditions set forth below.  Neither ACT nor Fleni will be obligated to
consummate the transaction until the execution of mutually acceptable
definitive documentation, as described below, provided, however,
that certain provisions hereof are binding.

 

	
  Research
  Scope and Objective:

  	
   

  	
  Identify commercially viable
  procedures to manufacture dopaminergic neurons from primate embryonic stem cells;

  
	
   

  	
   

  	
  •        Identify differentiation pathways and establish
  protocols for differentiation.

  
	
   

  	
   

  	
  •        Conduct pre-clinical studies for
  Parkinson’s Disease in animal models.

  
	
   

  	
   

  	
   

  
	
  Fleni Obligations:

  	
   

  	
  Fleni will supply laboratory
  facilities, approximately 2000 sq feet, up to $ 500,000 start up equipment,
  three permanent positions (one Principal Investigator with PhD level and at least
  two years of postdoctoral training, and two technicians or post-doctoral fellows.  An annual operating budget (annual
  programmatic support) of up to $ 100,000.

  
	
   

  	
   

  	
   

  
	
  ACT Obligations:

  	
   

  	
  ACT will transfer Cyno-1
  cells and know-how to Fleni.

  
	
   

  	
   

  	
   

  
	
  Joint
  Research Committee:

  	
   

  	
  The parties shall form a
  joint research committee with two representatives from ACT and two
  representatives from Fleni.

  
	
   

  	
   

  	
   

  
	
  Termination:

  	
   

  	
  Either party shall have
  the right to terminate this Summary of Terms upon 1 month’s notice.

  
	
   

  	
   

  	
   

  
	
  Licensed Property:

  	
   

  	
  ACT will license to Fleni
  the intellectual property outlined in Exhibit A on a non-exclusive
  basis.

  
	
   

  	
   

  	
   

  
	
  Field:

  	
   

  	
  Human cell therapy.

  
	
   

  	
   

  	
   

  
	
  Territory:

  	
   

  	
  Argentina.

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  For the duration of the
  patents.

  

 

 

	
  Innovations:

  	
   

  	
  Intellectual property developed
  under the research collaboration will be the joint property of Fleni and ACT.
   Fleni shall have the right to use any
  innovations within the Field and within the Territory for no additional
  consideration.  ACT shall have the exclusive
  licensing rights for other application areas and for areas outside the
  Territory.  All patent prosecution
  costs shall be borne by [...]

  
	
   

  	
   

  	
   

  
	
  Commercialization
  Milestones:

  	
   

  	
  The definitive agreements
  shall contain commercialization milestones to be agreed upon between the
  parties.

  
	
   

  	
   

  	
   

  
	
  Upfront
  fee:

  	
   

  	
  $500,000 due upon signing

  
	
   

  	
   

  	
   

  
	
  Royalty
  Rates:

  	
   

  	
  Fleni shall pay royalty on
  Net Sales to ACT according to the following schedule:

  
	
   

  	
   

  	
  •        8% of Net Sales up to $50 million per year

  •        15% of Net Sales between $50 and $ 100 million
  per year.

  •        30% of Net Sales on sales over $100 million
  per year

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  No minimum royalties

  
	
   

  	
   

  	
   

  
	
  Confidentiality:

  	
   

  	
  The terms and conditions
  of this term sheet, including its existence, shall be confidential
  information and shall not be disclosed to any third party by Fleni without ACT’s
  prior approval.

  
	
   

  	
   

  	
   

  
	
  Commitment
  Status:

  	
   

  	
  Except for the sections
  above entitled “Upfront Fee,” “Royalty Rates” and “Confidentiality,” (i) this
  Summary of Terms is not contractual in nature and reflects only the
  intentions of the parties to proceed toward the negotiation of definitive
  agreements and, if such agreements are executed, the consummation of the
  transaction described herein; (ii) no party will have any obligation to
  any other party hereunder and the parties will have only those obligations,
  and will make only those representations, warranties and covenants as may be
  set forth in definitive agreements which are signed and delivered. Except as
  expressly set forth in this Summary of Terms, no party will have any obligation
  or liability based upon or arising under this Summary of Terms to any other
  party by reason of the fact that a definitive agreement is not prepared,
  authorized, executed or delivered.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To confirm the foregoing
  accurately memorializes our previous discussions and to indicate the parties’
  agreement to the provisions of the sections above entitled “Upfront Fee,”
  “Royalty Rates” and “Confidentiality,” the parties have signed this Summary
  of Terms as of July 1 2002.

  

 

 

	
  Agreed and Accepted:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fleni Foundation

  	
   

  	
  Advanced Cell Technology, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Ramón C.
  Leiguarda

  	
   

  	
  /s/ Michael West

  	
   

  
	
   

  	
   

  	
  Michael West

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
  Ramón C. Leiguarda

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  July 1, 2002

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  
	
  President, FLENI

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  07/01/2002

  	
   

  	
   

  	
   

  
	
  DateExhibit 10.30.3

 

EXECUTION
COPY

 

SEPARATION
AGREEMENT

 

among

 

A.C.T.
GROUP, INC.,

 

ADVANCED
CELL TECHNOLOGY, INC.,

 

CYAGRA INC.

 

and

 

GOYAIKE
S.A.

 

dated as
of July 1, 2002

 

1

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  DEFINITIONS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01.  Certain
  Defined Terms

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  SEPARATION DATE; PAYMENT

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.  Separation Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.02.  Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  TRANSFER OF CERTAIN ASSETS, ASSUMPTION OF CERTAIN LIABILITIES; CERTAIN

  OTHER ARRANGEMENTS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.  Transfer of
  Assets

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.02.  Assumption
  of Liabilities

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.03.  Settlement
  of Intercompany Accounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.04.  Settlement
  of Trans Ova Genetics, Inc. Accounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.05.  Transactions
  Related to the GSC License Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.06.  Research
  Payments to Tufts University and Cornell University

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.07.  Governmental
  Approvals and Consents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.08.  Research
  Payments to Tufts University and Cornell University

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.09.  Governmental
  Approvals and Consents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  ALLOCATION OF THE PREMISES

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.  Sublease
  Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.02.  Division
  of the Premises

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  MUTUAL COVENANTS

  

 

1

 

	
  SECTION 5.01.  Governmental
  Approvals and Consents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.02.  Transfer
  Documents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.03.  Additional
  Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.04.  Termination
  of Certain Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.05.  Implementation
  of Computer and Accounting Systems

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.06.  Efforts
  to Fulfill Conditions

  	
   

  
	
   

  	
   

  
	
  SECTION 5.07.  Agreement
  for Exchange of Information

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.08.  Conflict
  with Third-Party Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.09.  Consistency
  with Past Practices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  CONDITIONS TO THE SEPARATION

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.  Conditions
  to Obligations of Group and ACT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.02.  Conditions
  to Obligations of Cyagra

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.03.  Conditions
  to Obligations of Goyaike

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  TRANSITION SERVICES AND SHARED ASSETS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.  Transition
  Services

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.02.  Shared Assets

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  INDEMNIFICATION

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.  Indemnification
  by Group and ACT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.02.  Indemnification
  by Cyagra

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.03.  Insurance
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.04.  Procedure
  for Indemnification

  	
   

  

 

2

 

	
  SECTION 8.05.  Remedies
  Cumulative

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.06.  Survival of
  Indemnities

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01.  Entire
  Agreement; No Third Party Beneficiaries

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.02.  Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.03.  Governing
  Law; Submission to Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.04.  Notices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.05.  Amendments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.06.  Assignments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.07.  Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.08.  Specific
  Performance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.09.  Headings;
  References

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.10.  Counterparts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.11.  Severability;
  Enforcement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.12.  Approvals,
  Consent and Waivers

  	
   

  

 

3

 

SEPARATION
AGREEMENT

 

This Separation Agreement
(this “Agreement”) is entered into as of July 1, 2002, among A.C.T.
 Group, Inc., a Delaware corporation
(“Group”), Advanced Cell Technology, Inc., a Delaware corporation
and wholly owned subsidiary of Group (“ACT”), Cyagra Inc., a Delaware
corporation (“Cyagra”) and Goyaike S.A., a company incorporated under
the laws of the Republic of Argentina (“Goyaike”).

 

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

 

WHEREAS,
as a condition to closing the transactions contemplated by the Securities
Purchase Agreement, on or before the Closing Date (as defined in the Securities
Purchase Agreement), Group, ACT, Cyagra and Goyaike shall enter into an
agreement pursuant to which they will take actions to establish separate
business operations for ACT and Cyagra;

 

WHEREAS,
the parties intend in this Agreement, including the Exhibits and Schedules
hereto, to set forth the principal arrangements between them regarding the
Separation (as defined below).

 

NOW,
THEREFORE, in consideration of the foregoing and the covenants and agreements
set forth below, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

For
the purpose of this Agreement the following terms shall have the following
meanings:

 

SECTION 1.01.
 Certain Defined Terms.  For
purposes of this Agreement:

 

“ACT”
has the meaning specified in the preamble to this Agreement.

 

“ACT
Assets” means:

 

(i)                                     Any and all Assets that are expressly
contemplated by this Agreement as Assets to be transferred to ACT, including
those Assets listed in Exhibit 1.01(A) hereto;

 

 

(ii)                                  Any Assets reflected in the Group Balance
Sheet as Assets of Group and its Subsidiaries not relating to the Cyagra
Business, subject to any dispositions of such Assets subsequent to the date of
the Group Balance Sheet;

 

(iii)                               Any and all Assets owned or held immediately
prior to the Separation Date by Group or any of its Subsidiaries that are not
used in the Cyagra Business; and

 

(iv)                              Any and all Assets owned or held immediately
prior to the Separation Date by Cyagra that are used primarily in the ACT
Business.

 

“ACT Business” means the business of
researching, developing and commercializing nuclear transfer technology, stem
cell technology and cellular cloning technology for all applications of any
nature whatsoever, including without limiting the generality of the foregoing,
all human applications, other than those applications specified as within the
definition of “Cyagra Business” set forth below, and manufacturing and selling
products and providing services related thereto.

 

“ACT Indemnities” has the meaning
specified in Section 9.02.

 

“Action” means any claim, action,
suit, arbitration, inquiry, proceeding or investigation by or before any
Governmental Authority.

 

“ACT Liabilities” means:

 

(i)                                     any and all Liabilities that are expressly
contemplated by this Agreement as Liabilities to be assumed by ACT, including
those Liabilities listed in Exhibit 1.01(C) hereto;

 

(ii)                                  all Liabilities, including any
employee-related Liabilities and environmental Liabilities, relating to,
arising out of or resulting from:

 

(A)                              the operation of the ACT Business, as
conducted at any time prior to, on or after the Separation Date (including any
Liability relating to, arising out of or resulting from (i) the options
granted to Cyagra employees pursuant to the ACT 1997 Stock Option Plan and the Group
2000 Stock Option Plan or (ii) any act or failure to act by any director,
officer, employee, agent or representative (whether or not such act or failure
to act is or was within such Person’s authority));

 

(B)                                any ACT Assets (including any contracts and
any real property and leasehold interests);

 

in any such case whether arising before, on or after the Separation
Date;

 

(iii)                               all Liabilities relating to, arising out of
or resulting from any of the terminated, divested or discontinued businesses
and operations of the ACT Business; and

 

2

 

(iv)                              all Liabilities reflected as liabilities or obligations not relating primarily to the Cyagra
Business in the Group Balance Sheet, subject to any discharge of such
Liabilities subsequent to the date of the Group Balance Sheet.

 

“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” means this Separation Agreement, including all of
the Schedules and Exhibits hereto.

 

“Ancillary Agreements” means the Securities Purchase Agreement,
the New Securityholders’ Agreement and the Sublicense Agreement.

 

“Assets” means assets, properties and rights (including
goodwill), wherever located (including in the possession of vendors or other
third parties or elsewhere), whether real, personal or mixed, tangible,
intangible or contingent, in each case whether or not recorded or reflected or
required to be recorded or reflected on the books and records or financial
statements of any Person, including the following:

 

(a)                                  all accounting and other books, records and
files whether in paper, microfilm, microfiche, computer tape or disc, magnetic
tape or any other form;

 

(b)                                 all apparatus, computers and other electronic
data processing equipment, fixtures, machinery, equipment, furniture, office
equipment, automobiles, trucks, aircraft rolling stock, vessels, motor vehicles
and other transportation equipment, special and general tools, test devices,
prototypes and models and other tangible personal property;

 

(c)                                  all inventories of material, parts, raw
materials, supplies, work-in-process and finished goods and products;

 

(d)                                 all interests in real property of whatever
nature, including easements, whether as owner, mortgagee or holder of a
security interest in real property, lessor, sublessor, lessee, sublesee or
otherwise;

 

(e)                                  all interests in any capital stock or other
equity interests of any Subsidiary or any other Person, all bonds, notes,
debentures or other securities issued by any Subsidiary or any other Person,
all loans, advances or other extensions of credit or capital contributions to
any Subsidiary or any other Person and all other investments in securities of
any Person;

 

(f)                                    all license agreements, leases of personal
property, open purchase orders for raw materials, supplies, parts or services,
unfilled orders for the manufacture and sale of products and other contracts,
agreements or commitments;

 

(g)                                 all deposits, letters of credit and
performance and surety bonds;

 

3

 

(h)                                 all written technical information, data,
specifications, research and development information, engineering drawings,
operating and maintenance manuals, and materials and analyses prepared by
consultants and other third parties;

 

(i)                                     all domestic and foreign intellectual,
intangible and industrial property of any type, including, without limitation,
patents, copyrights, trade names, trademarks, service marks and registrations
and applications for any of the foregoing trade secrets, inventions, other
proprietary information and licenses from third Persons granting the right to
use any of the foregoing;

 

(j)                                     all computer applications, programs and other
software, including operating software, network software, firmware, middleware,
design software, design tools, systems documentation and instructions;

 

(k)                                  all cost information, sales and pricing data,
customer prospect lists, supplier records, customer and supplier lists,
customer and vendor data, correspondence and lists, product literature,
artwork, design, development and manufacturing files, vendor and customer
drawings, formulations and specifications, quality records and reports and other
books, records, studies, surveys, reports, plans and documents;

 

(l)                                     all prepaid expenses, trade accounts and
other accounts and notes receivables;

 

(m)                               all rights under contracts or agreements, all
claims or rights against any Person arising from the ownership of any Asset,
all rights in connection with any bids or offers and all claims, choses in
action or similar rights, whether accrued or contingent;

 

(n)                                 all rights under insurance policies and all
rights in the nature of insurance, indemnification or contribution;

 

(o)                                 all licenses, permits, approvals and
authorizations which have been issued by any Governmental Authority;

 

(p)                                 cash or cash equivalents, bank accounts, lock
boxes and other deposit arrangements; and

 

(q)                                 interest rate, currency, commodity or other
swap, collar, cap or other hedging or similar agreements or arrangements.

 

“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.

 

“Consents” means any consents, waivers or approvals from, or
notification requirements to, any third parties.

 

“Cyagra” has the meaning specified in the preamble to this
Agreement.

 

4

 

“Cyagra Assets” means:

 

(i)                                     Any and all Assets that are expressly
contemplated by this Agreement as Assets to be transferred to Cyagra, including
those Assets listed in Exhibit 1.01(B) hereto;

 

(ii)                                  Any Assets reflected in the Group Balance
Sheet as Assets of Cyagra or Assets relating to the Cyagra Business, subject to
any dispositions of such Assets in the ordinary course subsequent to the date
of the Group Balance Sheet;

 

(iii)                               Any and all Assets owned or held immediately prior to the Separation Date
by Cyagra that are used in the Cyagra Business; and

 

(iv)                              Any and all Assets owned or held immediately
prior to the Separation Date by Group or any of its Subsidiaries that are used
in the Cyagra Business;

 

provided, however,
that the Shared Assets (as defined below) listed in Exhibit 8.02(A) shall
not constitute “Cyagra Assets” and shall be owned and administered in the
manner specified in Section 8.02 hereof.

 

“Cyagra Business” means the business of researching and
developing technology related to the manufacture and sale of products and the
provision of services in the Fields of Use.

 

“Cyagra Indemnities” has the meaning specified in Section 9.01.

 

“Cyagra Liabilities” means:

 

(i)                                     any and all Liabilities that are expressly
contemplated by this Agreement as Liabilities to be assumed by Cyagra,
including those Liabilities listed in Exhibit 1.01(D) hereto;

 

(ii)                                  all Liabilities, including any
employee-related Liabilities and environmental Liabilities, primarily relating
to, arising out of or resulting from:

 

(A)                              the operation of the Cyagra Business, as
conducted at any time prior to, on or after the Separation Date (including any
Liability relating to, arising out of or resulting from any act or failure to
act by any director, officer, employee, agent or representative (whether or not
such act or failure to act is or was within such Person’s authority));

 

(B)                                any Cyagra Assets (including any contracts
and any real property and leasehold interests);

 

in any such case whether arising before, on or after the Separation
Date;

 

5

 

(iii)                               all Liabilities relating to, arising out of
or resulting from any of the terminated, divested or discontinued businesses
and operations of the Cyagra Business; and

 

(iv)                              all Liabilities reflected as liabilities or
obligations relating primarily to the Cyagra Business in the Group Balance
Sheet, subject to any discharge of such Liabilities subsequent to the date of
the Group Balance Sheet.

 

Cyagra Liabilities shall not include (i) any
obligation to pay severance amounts to any Person who provided any Services
pursuant to the Management Agreement and (ii) any Liability relating to,
arising out of or resulting from the options granted to Cyagra employees
pursuant to the ACT 1997 Stock Option Plan and the Group 2000 Stock Option Plan.

 

“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, closed, adverse claim, right
of first refusal or first offer, option or other similar arrangement or
interest in real or personal property.

 

“Equine Field” means the cloning, development, making, using,
selling, offering to sell, importing or exporting of cloned equine animals (as
well as any transgenic variants or enhancements thereto) or products that are
composed of, made in or derived, extracted or isolated from cells or tissues of
such animals for nonthereapeutic purposes, including but not limited to, for
use in agriculture, for use as companion or service animals, or for use as
racing or other equine event animals, and the rendering of services or uses
that relate to the production of such products.  Specifically excluded from the Equine Field is
the cloning of such animals, and/or the development, making, using, selling,
offering to sell, importing or exporting of products that are composed of, made
in or derived, extracted or isolated from cells or tissues of such animals, for
all purposes related to veterinary or medical therapies, including, but not limited
to, the production of biopharmaceutical agents, proteins, peptides and
polypeptides in milk for pharmaceutical, neutraceutical or other use; provided,
however, that the aforementioned exclusion shall not apply to the making
of transgenic cloned equine animals whereby gene therapy has been employed to
correct a particular medical or health defect in that animal.

 

“Existing Technology” means the “ACT Licensed Property” as
defined in the Sublicense Agreement.

 

“Field of Agriculture” means the cloning, development, making,
using, selling, offering to sell, importing or exporting of cloned non-human
animals, excluding avian (as well as any transgenic variants or enhancements
thereto) or products that are composed of, made in or derived, extracted or
isolated from cells or tissues 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.  Specifically excluded from the
Field of Agriculture is the cloning of such animals for all purposes related to
veterinary or medical therapies, including, but not limited to, the production
of biopharmaceutical agents, proteins, peptides and polypeptides in milk for
pharmaceutical,

 

6

 

neutraceutical
or other use; provided, however, that the aforementioned
exclusion shall not apply to the making of transgenic cloned animals whereby
gene therapy has been employed to correct a particular medical or health defect
in that animal.

 

“Fields of Use” means the Field of Agriculture and the Equine
Field.

 

“Future Technology” means “Cyagra Developments” as defined in
the Goyaike Sublicense Agreement.

 

“Governmental Approvals” means any notices, report or other
filings to be made, or any consents, registrations, approvals, permits or
authorizations to be obtained from, any Governmental Authority.

 

“Governmental Authority” means any United States federal, state
or local or any non-United States government, governmental, regulatory or
administrative authority, agency or commission or any court, tribunal or
judicial or arbitral body.

 

“Governmental Order” means any order, writ, judgment,
injunction, decree, stipulation, determination or award entered by or with any
Governmental Authority.

 

“Goyaike” has the meaning specified in the preamble to this
Agreement

 

“Goyaike Sublicense Agreement” means the Nonexclusive Sublicense
Agreement, dated November 20, 2001, among Cyagra, ACT, Group and Goyaike.

 

“Group Balance Sheet” means the unaudited combined balance sheet
of Group and Group’s Subsidiaries, including the notes thereto, as of March 31,
2002.

 

“Group Subsidiaries” means Advanced Cell Technology, Inc., CIMA
Biotechnology Inc. and Cyagra, Inc.

 

“GSC Sublicense Agreement” means the Non-Exclusive License
Agreement, dated January 4, 2002, between ACT and Genetic Savings &
Clone.

 

“Indemnifiable Losses” has the meaning specified in Section 9.01.

 

“Indemnified Person” has the meaning specified in Section 9.03.

 

“Indemnifying Party” has the meaning specified in Section 9.03.

 

“Information” means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, organizational
documents, minutes and stock record books, other books and records, corporate
seals, contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications, drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including

attorney-client privileged communication), memos and other materials prepared
by attorneys or under their

 

7

 

direction
(including attorney work product), and other technical, financial, employee or
business information or data.

 

“Insurance Proceeds” means those moneys (i) received by an
insured from an insurance carrier or (ii) paid by an insurance carrier on
behalf of the insured, in either case net of any applicable premium adjustment,
retrospectively rated premium, deductible, retention, cost or reserve paid or
held by or for the benefit of such insured.

 

“Law” means any constitution, law, statute, treaty, rule,
directive, requirement or regulation or Governmental Order.

 

“Liabilities” means any and all debts, liabilities and
obligations, whether accrued or fixed, absolute or contingent, matured or
unmatured or determined or determinable, including, without limitation, those
arising under any Law, Action or Governmental Order and those arising under any
contract, agreement, arrangement, commitment or undertaking.

 

“Liu Agreement” means the “Terms for Exclusive License Agreement”,
dated December 20, 2000, between Group and Dr. Chengyu Liu.

 

“Management Agreement” means the Management Services and
Intellectual Property Agreement, dated November 20, 2001, among Group, Act
and Cyagra.

 

“Material Adverse Effect” means any circumstance, change in or
effect on a Person that, individually or in the aggregate with all other
circumstances, changes in or effects on such Person, is or could reasonably be
expected to be materially adverse to the business, operations, properties,
results of operations or condition (financial or otherwise) of such Person,
except for any changes in or effects on such Person 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) such
Person is not disproportionately affected by such changes or effects compared
to other Persons engaged in similarly situated businesses within the biomedical
industry.

 

“New Securityholders’ Agreement” means the securityholders’
agreement, dated July 1, 2002, among Group, ACT, Cyagra and Goyaike.

 

“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.

 

“Premises” means the offices leased by ACT in the building at
100 Innovation Drive, Worcheseter, Massachusetts 01605.

 

“Separation” means (i) the transfer of Cyagra Assets to
Cyagra and the assumption by Cyagra of the Cyagra Liabilities and the transfer
of ACT Assets to ACT and the assumption of the ACT Liabilities by ACT, (ii) the
allocation of employees between ACT and Cyagra, and (iii) the allocation
of the Premises between ACT and Cyagra, all as more fully described in this
Agreement and the Ancillary Agreements.

 

8

 

“Shared Assets” means those ACT Assets listed on Exhibit 8.02
hereto, which Cyagra may continue to use pursuant to the terms set forth in Article VIII
of this Agreement.

 

“Sublicense Agreement” means the sublicense agreement, dated July 1,
2002, among Group, ACT and Cyagra

 

“Subsidiary” of any Person means any corporation or other
organization whether incorporated or unincorporated of which at least a
majority of the securities or interests having by the terms thereof ordinary
voting power to elect at least a majority of the board of directors or others
performing similar functions with respect to such corporation or other
organization is directly or indirectly owned or controlled by such Person or by
any one or more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries; provided, however that no Person that is not
directly or indirectly wholly owned by any other Person shall be a Subsidiary
of such other Person unless such other Person controls, or has the rights,
power or ability to control, that Person.

 

“Third Party Claim” has the meaning set forth in Section 9.04(a).

 

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

 

ARTICLE II

SEPARATION DATE; PAYMENT

 

SECTION 2.01.  Separation
Date.  Except as specifically provided to the
contrary in this Agreement, or as otherwise mutually agreed to in writing among
the parties, the effective time and date of the Separation shall be 11:59 p.m.
Eastern Standard Time, September 1, 2002 (the “Separation Date”).

 

SECTION 2.02.
 Payment.  Subject
to the terms and conditions of this Agreement, and in accordance with Goyaike’s
obligations under Section 2.0l(b) of the Securities Purchase
Agreement, on the fifth Business Day following satisfaction of Group’s and ACT’s
obligations hereunder, as reasonably determined by ACT and Goyaike, or on such
other date as the parties hereto may mutually agree upon in writing, Goyaike
shall deliver to ACT, by wire transfer in immediately available funds, to an
account designated by ACT, an amount equal to US$1,500,000.

 

ARTICLE III

TRANSFER OF CERTAIN ASSETS, ASSUMPTION OF CERTAIN LIABILITIES; CERTAIN

OTHER ARRANGEMENTS

 

SECTION 3.01.  Transfer
of Assets.  Subject to Article VII:

 

(a)                                  On or before the Separation Date, Group and
ACT each agree to assign, transfer, convey and deliver to Cyagra, and Cyagra
agrees to accept from Group

 

9

 

and ACT and their respective applicable Affiliates all of Group’s, ACT’s
and such Affiliates respective rights, titles and interests in and to the
Cyagra Assets free of any Encumbrances.

 

(b)                                 On or before the Separation Date, Cyagra
agrees to assign, transfer, convey and deliver to ACT, and ACT agrees to accept
from Cyagra and its applicable Affiliates all of Cyagra’s and such Affiliates
respective rights, titles and interests in and to the ACT Assets free of any
Encumbrances.

 

(c)                                  On or before the Separation Date, Group, ACT
and Cyagra will, and will cause their respective applicable Affiliates to,
execute and deliver such deeds, bill of sale, subleases, assignments and other
documents, and will do such other things, as are necessary or appropriate to
carry out the assignment and transfer of Assets described in this Section 3.01.

 

(d)                                 In the event that at any time or from time to
time any party hereto shall receive or otherwise possess any Asset that should
have been allocated to any other Person pursuant to this Agreement, such party
shall promptly transfer, or cause to be transferred, such Asset to the Person
so entitled thereto.  Prior to any such
transfer, the Person receiving or possessing such Asset shall hold such Asset
in trust for the benefit of any such other Person.

 

SECTION 3.02.  Assumption
of Liabilities.  Subject to Article VII:

 

(a)                                  From and after the Separation Date, ACT
agrees to accept, assume and faithfully to pay, perform, discharge and fulfill
all ACT Liabilities, in accordance with their respective terms.  ACT shall be responsible for all ACT
Liabilities, regardless of when or where such Liabilities arose or arise, or
whether the facts on which they are based occurred prior to or subsequent to
the Separation Date, regardless of where or against whom such Liabilities are asserted
or determined (including any ACT Liabilities arising out of claims made by ACT’s
or Cyagra’s respective directors, officers, employees, agents, Subsidiaries or
Affiliates against ACT or
Cyagra) or whether asserted or determined prior to the Separation Date.

 

(b)                                 From and after the Separation Date, Cyagra
agrees to accept, assume and faithfully to pay, perform, discharge and fulfill
all Cyagra Liabilities, in accordance with their respective terms.  Cyagra shall be responsible for all Cyagra
Liabilities, regardless of when or where such Liabilities arose or arise, or
whether the facts on which they are based occurred prior to or subsequent to
the Separation Date, regardless of where or against whom such Liabilities are asserted
or determined (including any Cyagra Liabilities arising out of claims made by
ACT’s or Cyagra’s respective directors, officers, employees, agents,
Subsidiaries or Affiliates against ACT or Cyagra) or whether asserted or
determined prior to the Separation Date.

 

(c)                                  As soon as practicable after the date hereof,
and in any event before the Separation Date, Group shall deliver to Cyagra and
Goyaike true and complete copies of (i) the audited balance sheet of
Cyagra as of March 31, 2002 and the related statement of income of Cyagra,
together with all related notes and any related schedules thereto, accompanied
by the report thereon of Cyagra’s accountants (the “Cyagra Financial
Statements”) and (ii) the audited

 

10

 

balance
sheet of ACT as of December 31, 2001 and the related statement of income
of ACT, together with all related notes and any related schedules thereto,
accompanied by the report thereon of ACT’s accountants (the “ACT Financial
Statements”).  Group and ACT jointly
and severally represent and warrant that the Cyagra Financial Statements and
the ACT Financial Statements (i) were prepared in accordance with the
books of account and other financial records of Cyagra or ACT, as applicable, (ii) present
fairly the financial condition and results of the operations of Cyagra or ACT,
as applicable, as of the dates thereof and for the periods covered thereby, (iii) have
been prepared in accordance with US GAAP applied on a basis consistent with the
past practices of Cyagra or ACT, as applicable, and (iv) include all
adjustments (consisting only of normal recurring accruals) that are necessary
for a fair presentation of the financial condition of Cyagra or ACT, as
applicable, and the results of operations of Cyagra or ACT, as applicable, as
of the dates thereof and for the periods covered thereby.

 

SECTION 3.03.  Settlement
of Intercompany Accounts.  All intercompany receivables,
payables and loans between Group and/or ACT, on the one hand, and Cyagra, on
the other hand, shall, on or prior to the Separation Date, be paid in full and
deemed settled and discharged.

 

SECTION 3.04.  Settlement
of Trans Ova Genetics, Inc. Accounts.  On
or prior to the Separation Date, ACT shall (i) pay Trans Ova Genetics, Inc.
(“Trans Ova”) the amount, in full, that ACT owes to Trans Ova and (ii) take
all actions necessary and appropriate to cause Trans Ova to pay, in full, the
amount Trans Ova owes to Cyagra prior to the Separation Date.

 

SECTION 3.05.  Transactions
Related to the GSC License Agreement.  (a) On
or prior to the Separation Date, ACT shall pay Cyagra US$50,000, which shall
represent fifty (50%) percent of the License Fee (as defined in the GSC License
Agreement) paid by Genetic Savings & Clone to ACT.  ACT shall, and Group shall cause ACT to,
deliver to Cyagra, within five (5) Business Days of ACT’s receipt of any
royalty payments related to any Licensed Product (as defined in the GSC License
Agreement) or Licensed Process (as defined in the GSC License Agreement) that
pertain to the Equine Field or the Field of Agriculture that ACT receives, at
any time on or after the date of this Agreement, pursuant to Article IV of
the GSC License Agreement until such time as the GSC License Agreement is
amended as set forth in Section 3.05(b) below.

 

(b)                                 As soon as practicable after the Separation
Date, ACT shall use its reasonable best efforts to (i) amend the GSC
License Agreement such that the GSC Agreement shall no longer cover the Equine
Field and the Field of Agriculture and (ii) cause Genetic Savings &
Clone to enter into a new non-exclusive sublicense agreement with Cyagra, on
terms no less favorable to Cyagra than the terms of the GSC License Agreement
applicable to ACT, with respect to the Equine Field and the Field of
Agriculture; provided that Cyagra shall be responsible for any and all
costs and expenses, including out-of-pocket expenses but excluding any costs
and expenses associated with the time and effort expended by any employees of
Group or ACT, in pursuing the foregoing; provided  further, however,
that before ACT incurs any fee or expense in connection with this Section 3.05(b) that
could reasonably be expected to exceed US$5,000, ACT shall obtain the prior
written consent of Cyagra; and provided  further that if ACT fails
to obtain the prior written consent of Cyagra before incurring any fee or
expense

 

11

 

greater
than US$5,000, ACT shall be solely responsible for the amount of the fee or
expense incurred that exceeds US$5,000.

 

SECTION 3.06.
 Transactions Related to the Goyaike
Sublicense Agreement.
 (a) Notwithstanding anything to the
contrary in the Goyaike Sublicense Agreement, Goyaike shall pay directly to
Cyagra all amounts Goyaike is required to pay pursuant to Section 5.2 of
the Goyaike Sublicense Agreement resulting from Net Sales (as defined in the
Goyaike Sublicense Agreement) of Licensed Products or Licensed Services (each
as defined in the Goyaike Sublicense Agreement) derived from Existing
Technology.  Within five (5) Business
Days of Cyagra’s receipt of any payments pursuant to this Section 3.06(a),
Cyagra shall deliver to ACT any sublicense fees required to be paid pursuant to
the Sublicense Agreement.

 

(b)                                Notwithstanding anything to the contrary in
the Goyaike Sublicense Agreement, Goyaike shall pay directly to ACT all amounts
Goyaike is required to pay pursuant to Section 5.2 of the Goyaike
Sublicense Agreement, resulting from Net Sales of any Licensed Products or
Licensed Services derived from Future Technology.

 

(c)                                 Notwithstanding anything to the contrary in
the Goyaike Sublicense Agreement, fifty percent (50%) of the minimum royalty to
be paid by Goyaike per calendar year (the “Minimum Royalty”) pursuant to
Section 5.3 of the Goyaike Sublicense Agreement shall be allocated to
Licensed Products and Licensed Services derived from Existing Technology and
the remaining fifty percent (50%) of the Minimum Royalty shall be allocated to
Licensed Products and Licensed Services derived from Future Technology.  Notwithstanding anything to the contrary
contained in the Goyaike Sublicense Agreement, Goyaike shall not be obligated
to pay any Minimum Royalty related to Future Technology; provided that
if Goyaike fails to pay any Minimum Royalty related to Future Technology,
Goyaike shall lose its license to use Future Technology.

 

SECTION 3.07.
 Liu Agreement.  (a) Prior
to the Separation Date, Group shall use its reasonable best efforts to obtain Dr. Chengyu
Liu’s written consent to the Sublicense Agreement.

 

(b)                                 If, prior to the Separation Date, Group is
unable to obtain Dr. Liu’s written consent to the Sublicense Agreement,
then on the Separation Date, Group shall (i) consent in writing that Dr. Liu
may negotiate and enter into a license agreement with Cyagra relating to the
Licensed Property (as defined in the Liu Agreement) and (ii) deliver such
executed consent to Cyagra and Dr. Liu.

 

SECTION 3.08.  Research
Payments to Tufts University and Cornell University.  (a) On
or prior to the Separation Date, ACT shall reimburse Cyagra in an amount equal
to thirty percent (30%) of all payments Cyagra made to Tufts University (“Tufts”)
and Cornell University (“Cornell”) with respect to research conducted by
Tufts and Cornell (the “Research”).

 

(b)                                 After the Separation Date, ACT shall, and
Group shall cause ACT to, pay directly to Tufts and Cornell, as applicable,
thirty percent (30%) of all fees charged by Tufts and Cornell for the Research
and Cyagra shall pay seventy percent (70%) of all such fees.

 

12

 

SECTION 3.09.  Governmental
Approvals and Consents.  (a) If and to the extent
that the valid, complete and perfected transfer or assignment to ACT or Cyagra
of any Assets or Liabilities would be a violation of applicable laws or require
any Consent or Governmental Approval in connection with the Separation, then, unless ACT or Cyagra, as applicable, shall otherwise determine,
such transfer or assignment, as the case may be, of such Assets or Liabilities
shall be automatically deemed deferred and any such purported transfer or
assignment shall be null and void until such time as all legal impediments are
removed and/or such Consents or Governmental Approvals have been obtained.

 

(b)                                 If and when the Consents and/or Governmental
Approvals, the absence of which caused the deferral of transfer of any Asset or
Liability pursuant to Section 3.01 are obtained, the transfer
of the applicable Asset or Liability shall be effected in accordance with the terms
of this Agreement and/or the applicable Ancillary Agreement.

 

(c)                                  The Person retaining an Asset due
to the deferral of the transfer of such Asset shall not be obligated, in
connection with the foregoing, to expend any money in connection with the
maintenance of such Asset unless the necessary funds are advanced by the Person
entitled to the Asset, other than reasonable out-of-pocket expenses, attorneys’
fees and recording or similar fees, all of which shall be promptly reimbursed
by the Person entitled to such Asset.

 

ARTICLE IV

ALLOCATION OF THE PREMISES

 

SECTION 4.01.  Sublease
Agreement.  (a) On or prior to the Separation Date,
Group, ACT and Cyagra shall execute and deliver a sublease agreement (the “Sublease”),
with a term beginning on the Separation Date and ending March 31, 2003 and
other terms mutually agreeable to Group, ACT and Cyagra, pursuant to which
Cyagra will sublet from ACT that portion of the Premises described in Exhibit 4.01(A),
which shall not be less than 7,000 square feet, and will continue to have
access to and use of the laboratory located on the Premises, and for that
purpose, to enter and pass through any other necessary portion of the Premises,
in accordance with the economic terms and conditions specified in Exhibit 4.01(B) and
otherwise upon terms consistent with ACT’s lease of the Premises.

 

(b)                                 Notwithstanding anything in this Agreement to
the contrary, prior to the execution and delivery of the Sublease, Cyagra will
continue to have access to and use of that portion of the Premises described in
Exhibit 4.01(A) and the laboratory located on the Premises, and for
that purpose, to enter and pass through any other necessary portion of the
Premises.

 

(c)                                  Each of Group, ACT, Cyagra and Goyaike
acknowledge that the provisions of Section 5.07(g) of this Agreement
shall apply to all information gained by each of Group, ACT, Cyagra or Goyaike,
as the case may be, relating to the other parties hereto as a result of such parties
sharing the Premises and the laboratory located on the Premises.

 

13

 

SECTION 4.02.  Division
of the Premises.  (a) On or prior to the Separation Date,
Group, ACT and Cyagra shall take all actions necessary and appropriate to
physically divide and segregate Cyagra’s portion of the Premises from the rest
of the Premises (the “Division”).

 

(b)                                 All fees and expenses incurred in connection
with the Division pursuant to this Section 4.02 shall be shared equally by
ACT and Cyagra; provided that before any party incurs any fee or expense
in connection with the Division that could reasonably be expected to exceed
US$5,000, such party shall obtain the prior written consent of ACT or Cyagra,
as applicable; and provided, further, that if any such party
fails to obtain the prior written consent of ACT or Cyagra, as applicable,
before incurring any fee or expense greater than US$5,000, such party shall be
solely responsible for the amount of the fee or expense incurred that exceeds
US$5,000.

 

ARTICLE V

MUTUAL COVENANTS

 

SECTION 5.01.  Governmental
Approvals and Consents.  To the extent that the
Separation requires any Governmental Approvals or Consents, the parties will
use their reasonable best efforts to obtain any such Governmental Approvals and
Consents.

 

SECTION 5.02.  Transfer
Documents.  On or prior to the Separation Date, Group, ACT
and Cyagra each shall execute and deliver, and shall cause their applicable
Subsidiaries to execute and deliver, any documents which may reasonably be
requested by the other of them in order to perfect the transfers of Assets,
assumption of Liabilities and any other transactions contemplated by this
Agreement.

 

SECTION 5.03 Additional Agreements.  In
addition to the specific agreements, documents and instruments referenced in or
annexed to this Agreement, each of Group, ACT, Cyagra and Goyaike agree to
execute or cause to be executed by the appropriate parties and deliver, as
appropriate, such other agreements, instruments and other documents as may be
necessary or desirable in order to effect the purpose of this Agreement and the
Ancillary Agreement.

 

SECTION 5.04.  Termination
of Certain Agreements.  (a) Group, ACT and Cyagra
shall take all actions necessary to ensure that on the Separation Date, the
Management Agreement is terminated without any cost, expense, liability or
recourse to the parties thereto, whether direct or indirect, solely as a result
of the termination of such agreement.

 

(b)                                 Group and ACT, on the one hand, and Cyagra,
on the other hand, hereby terminate any and all other agreements, arrangements,
commitments or understandings, whether or not in writing, between or among
Group and/or ACT, on the one hand, and Cyagra, on the other hand, effective as
of the Separation Date.  No such
terminated agreement, arrangement, commitment or understanding (including any
provision thereof which purports to survive termination) shall be of any
further force or effect after the Separation Date.  Each party shall, at

 

14

 

the
reasonable request of any other party, take, or cause to be taken, such other
actions as may be necessary to effect the foregoing.

 

(c)                                  The provisions of Section 5.04(b) shall
not apply to any of the following agreements, arrangements, commitments or
understandings (or to any of the provisions thereof): (i) this Agreement
or any of the Ancillary Agreements (and each other agreement or instrument
expressly contemplated by this Agreement or any Ancillary Agreement to be
entered into by any of the parties hereto); (ii) any agreements,
arrangements, commitments or understandings listed or described on Exhibit 5.04(C)(ii) hereto;
(iii) any agreements, arrangements, commitments or understandings to which
any Person other than the parties hereto and their respective Affiliates is a
party; and (iv) any other agreements, arrangements, commitments or
understandings that this Agreement or any of the Ancillary Agreements expressly
contemplates will survive the Separation Date.

 

SECTION 5.05.  Implementation
of Computer and Accounting Systems.  (a) On
or prior to the Separation Date, ACT shall, and Group shall cause ACT to, at
Cyagra’s sole cost (i) establish a separate computer server (the “Cyagra
Server”) for Cyagra’s computer system operations, including, but not
limited to, Cyagra’s use of the computer to provide to the Cyagra Business (A) accounting
services, including without limitation, cash management, bank relations,
investor relations, financial record-keeping and reporting and credit and
collection services (collectively, the “Accounting Services”) and (B) tax
services, including without limitation, the preparation and filing of all
required corporate tax returns and other federal, state and local tax-related
reports (collectively, the “Tax Services”); (ii) load the computer
software used in the ACT Business as of the date of this Agreement, including,
but not limited to, QuickBooks and the software related to Cyagra’s bovine
cloning service agreements, on to the Cyagra Server; and (iii) transfer
all information related to the Cyagra Business into the Cyagra Server’s
QuickBooks application as necessary for Cyagra to perform its Accounting
Services and Tax Services; provided that before ACT incurs any fee or
expense in connection with this Section 5.05(a) that could reasonably
be expected to exceed US$10,000, ACT shall obtain the prior written consent of
Cyagra; and provided  further, that if ACT fails to obtain the
prior written consent of Cyagra before incurring any fee or expense greater
than US$10,000, ACT shall be solely responsible for the amount of the fee or
expense incurred that exceeds US$10,000.

 

(b)                                 On or prior to the Separation Date, ACT
shall, for Cyagra’s benefit and subject to Cyagra’s approval, hire an
accounting manager for Cyagra, at Cyagra’s expense.  For the avoidance of doubt, such accounting
manager shall be a Cyagra Employee.

 

SECTION 5.06.  Efforts to
Fulfill Conditions.
 Each of Group, ACT, Cyagra and Goyaike
shall use its reasonable best efforts to cause all the conditions in Article VI
to be fulfilled on or before the Separation Date.

 

SECTION 5.07.  Agreement
For Exchange of Information.  (a) Subject to clause (g) of
this Section 5.07, each of Group and ACT agrees to provide, or cause to be
provided, to Cyagra, on or before the Separation Date, all Information in the
possession of Group, ACT and/or their respective Affiliates relating to the
Cyagra Business.  Subject to clause (g) of
this Section 5.07, each of Group, ACT and Cyagra agrees to provide, or cause
to be provided, to each

 

15

 

other, at any time after the date hereof and until one year after the
Separation Date, as soon as reasonably practicable after written request
therefore, any additional Information in the possession or under the control of
such party therefore, any additional Information in the possession or under the
control of such party that the requesting party reasonably needs (i) to
comply with reporting, disclosure, filing or other requirements imposed on the
requesting party (including under applicable securities laws) by a Governmental
Authority having jurisdiction over the requesting party, (ii) for use in
any other judicial, regulatory, administrative or other proceeding or in order
to satisfy audit, accounting, claims, regulatory, litigation or other similar
requirements, (iii) to comply with its obligations under this Agreement or
any Ancillary Agreement or (iv) in connection with the ongoing businesses
of ACT or Cyagra, as the case may be; provided, however, that in the event that
any party determines that any such provision of Information could be
commercially detrimental, violate any law or agreement, or waive any
attorney-client privilege, the parties shall take all reasonable measures to
permit the compliance with such obligations in a manner that avoids any such
harm or consequence.

 

(b)  Internal Accounting Controls; Financial
Information.  After the
Separation Date, (i) each party shall maintain in effect at its own cost
and expense adequate systems and controls for its business to the extent
necessary to enable the other parties to satisfy their respective reporting,
accounting, audit and other obligations, and (ii) each party shall
provide, or cause to be provided, to the other parties and their respective
Subsidiaries in such form as such requesting party shall request, at no charge
to the requesting party, all financial and other data and information as the
requesting party reasonably determines necessary or advisable in order to prepare
its financial statements and reports or filings with any Governmental
Authority.

 

(c)  Ownership of Information.  Any information owned by a party
that is provided to a requesting party pursuant to this Section 5.07 shall
be deemed to remain the property of the providing party.  Unless specifically set forth herein, nothing
contained in this Agreement shall be construed as granting or conferring rights
of license or otherwise in any such Information.

 

(d)  Record Retention.  To facilitate the possible exchange
of Information pursuant to this Section 5.07 and other provisions of this
Agreement after the Separation Date, each party agrees to use its reasonable
commercial efforts to retain all Information in their respective possession or
control on the Separation Date substantially in accordance with the policies of
Group and ACT as in effect on the Separation Date.  However, at any time within one year after the
Separation Date, each party may amend their respective record retention
policies at such party’s discretion; provided, however, that if a party desires
to effect the amendment within three (3) years after the Separation Date,
the amending party must give thirty (30) days prior written notice of such
change in the policy to each party to this Agreement.  In addition, no party will destroy, or permit
any of its Subsidiaries to destroy, any Information that exists on the
Separation Date (other than Information that is permitted to be destroyed under
the current record retention policy of such party) without first using its
reasonable commercial efforts to notify the other party of the proposed
destruction and giving the other party the opportunity to take possession of such
Information prior to such destruction.

 

(e)  Limitation of Liability.  No party shall have any liability
to any other party in the event that any Information exchanged or provided
pursuant to this Section is found to be

 

16

 

inaccurate,
in the absence of willful misconduct by the party providing such Information.  No party shall have any liability to any other
party if any Information is destroyed or lost after reasonable commercial
efforts by such party to comply with the provisions of Section 5.07(c).

 

(f)  Other
Agreements Providing For Exchange of Information.  The rights and obligations granted
under this Section 5.07 are subject to any specific limitations,
qualifications or additional provisions on the sharing, exchange or
confidential treatment of Information set forth in this Agreement and any
Ancillary Agreement.

 

(g)  Confidentiality.
 (i) The confidential
information provided by Group or ACT, on the one hand, to Cyagra or Goyaike, on
the other hand, and by Cyagra or Goyaike, on the one hand, to Group or ACT, on
the other hand, relating to the matters set forth in this Agreement and the
Ancillary Agreements and the transactions contemplated thereby (such party when
disclosing such information being the “Disclosing Party”, and such party
when receiving such information being the “Receiving Party”) shall be
considered confidential information.  The
Receiving Party agrees that it shall treat and hold as confidential all such
information and shall not disclose to any third party other than a
Representative any such confidential information provided to it by the Disclosing
Party; provided, however, that the Receiving Party agrees to
cause any of its Representatives who receive such confidential information to
observe the requirements with respect to confidentiality contained herein.  Neither the Receiving Party nor any of its Representatives
shall use such confidential information provided by the Disclosing Party for
any other purpose than provided under this Agreement or the Ancillary
Agreements and the transactions contemplated hereby or thereby and regulatory
and internal compliance purposes.  The
Receiving Party shall be responsible for any failure by any of its
Representatives to observe the requirements with respect to confidentiality
contained herein.

 

(ii)                                  The obligation to hold in confidence and not
to disclose confidential information pursuant to this Section 5.07(g) shall
not apply to any such information that (a) is or becomes generally
available to the public other than as a result of a direct or indirect
disclosure by the Receiving Party or any of its Representatives, (b) is
disclosed to the Receiving Party or any of its Representatives on a
non-confidential basis by a third-party; provided, however, that
such third party is not, to the knowledge of the Receiving Party or any of its
Representatives, bound by a confidentiality agreement with the Disclosing
Party, (c) is independently discovered, derived or developed by the
Receiving Party or any of its Representatives without access to the
confidential information or (d) is requested or required to be disclosed
by oral questions, interrogatories, requests for information or documents,
subpoena, civil investigative demand or similar process or, upon the advice of
the Receiving Party’s counsel, is required to be disclosed by applicable law or
regulation, regulatory body, stock exchange, court or administrative order, or
any listing or trading agreement with such regulatory body or stock exchange.  In the event that the Receiving Party is
requested or required to disclose any confidential information pursuant to this
Section 5.07(g)(ii), the Receiving Party will provide the Disclosing Party
with prompt notice of each such request or requirement so that the Disclosing
Party may seek an appropriate protective order, request for confidential
treatment and/or waive compliance with the requirements with respect to
confidentiality contained herein.

 

17

 

For purposes of this Section 5.07(g), “Representative” means, as
to any Person, such Person’s Affiliates, directors, officers, employees, agents
and advisors (including, without limitation, financial and investment advisors,
attorneys and accountants).

 

(iii)                          In the event that any party either determines
on the advice of its counsel that it is required to disclose any Information
pursuant to applicable Law or receives any demand under lawful process or from
any Governmental Authority to disclose or provide Information of any other
party that is subject to the confidentiality provisions hereof, such party
shall notify the other party prior to disclosing or providing such Information
and shall cooperate at the expense of the requesting party in seeking any
reasonable protective arrangements requested by such other party.  Subject to the foregoing, the Person that
received such request may thereafter disclose or provide Information to the
extent required by such Law (as so advised by counsel) or by lawful process or
such Governmental Authority.

 

SECTION 5.08.  Conflict
with Third-Party Agreements.  Nothing in Section 5.07
shall require Group, ACT, Cyagra or Goyaike to violate any agreement with any
third parties regarding the confidentiality of confidential and proprietary
information relating to that third party or its business; provided, however,
that in the event that Group, ACT, Cyagra or Goyaike is required under Section 5.07
to disclose any such information, Group, ACT, Cyagra or Goyaike, as applicable,
shall use all commercially reasonable efforts to seek to obtain such customer’s
consent to the disclosure of such information.

 

SECTION 5.09.  Consistency
with Past Practices.  Except as otherwise expressly permitted
by the terms of this Agreement, from the date hereof through the Separation
Date, Group, ACT and Cyagra shall, and ACT shall cause Cyagra to, conduct their
respective businesses in the ordinary course consistent with past practice, and
Group, ACT and Cyagra shall not do any of the following without the prior
written consent of Goyaike:

 

(i)                                     permit or allow any of the Cyagra Assets to
be subjected to any material Encumbrance;

 

(ii)                                  incur any Indebtedness on behalf of Cyagra;

 

(iii)                               make any capital expenditure or commitment for any capital expenditures
related to the Cyagra Business in excess of US$35,000, individually, or US$100,000,
in the aggregate;

 

(iv)                              sell, transfer, lease, sublease, license or otherwise dispose of any
Cyagra Assets, other than in the ordinary course of business consistent with
past practice;

 

(v)                                 (A) grant any increase, or announce any
increase, in the wages, salaries, compensation, bonuses, incentives, retention,
severance, pension or other benefits payable by Cyagra to any of its directors,
officers or employees, consultants or independent contractors, including,
without limitation, any increase or change pursuant to any Plan (as defined in
the Securities Purchase Agreement) or (B) establish or increase or promise
to increase any benefits under any Plan, in either case except as required by
Law or any collective bargaining agreement and involving ordinary increases
consistent with the past practice of Cyagra;

 

18

 

(vi)                              amend, terminate, cancel or compromise any material claims of Cyagra or
waived any other rights of substantial value to Cyagra;

 

(vii)                           make any change in any accounting policy of Cyagra, other than those
required by US GAAP;

 

(viii)                        adopt, amend or consent to the termination of any material contract
related to the Cyagra Business or Cyagra’s rights thereunder, except as
required by applicable Law;

 

(ix)                                disclose any secret or confidential Intellectual Property (except by
way of issuance of a patent) or permit to lapse or abandon any Intellectual
Property (or any registration or grant thereof or any application relating
thereto) to which, or under which, Cyagra has any right, title, interest or
license;

 

(x)                                   settle any Action if such settlement would
result in the payment by Cyagra of more than US$50,000 or material injunctive
or other equitable relief; or

 

(xi)                                agree, whether in writing or otherwise, to do any of the foregoing.

 

ARTICLE VI

 

CONDITIONS TO THE
SEPARATION

 

SECTION 6.01.
 Conditions to Obligations of Group
and ACT.  The obligations of Group and ACT to consummate
the transactions contemplated by this Agreement shall be subject to the fulfillment,
at or prior to the Separation Date, of each of the following conditions:

 

(a)                                  All required Governmental Approvals of the
Separation, if any, will have been obtained, other than Governmental Approvals
the lack of which would not have a Material Adverse Effect on either Group or
ACT, as applicable.

 

(b)                                 No order of a court enjoining or otherwise
restraining the Separation will be in effect and no governmental proceeding
regarding the Separation will be pending which is reasonably likely to result
in the imposition of penalties against Group or ACT which would be material to
either Group or ACT.

 

(c)                                  (i) The covenants contained in this
Agreement and the Ancillary Agreements to be complied with by Cyagra and
Goyaike on or before the Separation Date shall have been complied with in all
material respects and (ii) Group and ACT shall have received certificates
from Goyaike and Cyagra to such effect signed by a duly authorized officer
thereof.

 

(d)                                 Group and ACT shall have received a true and
complete copy, certified by the Secretary or an Assistant Secretary of Cyagra
and Goyaike, as applicable, of the resolutions duly and validly adopted by the
Board of Directors of each of Cyagra and Goyaike, in each case

 

19

 

evidencing
its authorization of the execution and delivery of this Agreement and the
Ancillary Agreements and the consummation of the transactions contemplated
hereby and thereby.

 

SECTION 6.02.  Conditions
to Obligations of Cyagra.  The obligations of Cyagra to
consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment, at or prior to the Separation Date, of each of the following
conditions:

 

(a)                                  All required Governmental Approvals of the
Separation, if any, will have been obtained, other than Governmental Approvals
the lack of which would not have a Material Adverse Effect on Cyagra.

 

(b)                                 No order of a court enjoining or otherwise
restraining the Separation will be in effect and no governmental proceeding regarding the Separation will be pending which is reasonably likely to
result in the imposition of penalties against Cyagra which would be material to
Cyagra.

 

(c)                                  (i) The covenants contained in this
Agreement and the Ancillary Agreements to be complied with by Group, ACT and
Goyaike on or before the Separation Date shall have been complied with in all
material respects and (ii) Group and ACT shall have received certificates
from Goyaike and Cyagra to such effect signed by a duly authorized officer thereof.

 

(d)                                 Cyagra shall have received a true and
complete copy, certified by the Secretary or an Assistant Secretary of Group,
ACT and Goyaike, as applicable, of the resolutions duly and validly adopted by
the Board of Directors of each of Group, ACT and Goyaike, in each case
evidencing its authorization of the execution and delivery of this Agreement
and the Ancillary Agreements and the consummation of the transactions
contemplated hereby and thereby.

 

SECTION 6.03.  Conditions
to Obligations of Goyaike.  The obligations of Goyaike to
consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment, at or prior to the Separation Date, of each of the following
conditions:

 

(a)                                 All required Governmental Approvals of the
Separation, if any, will have been obtained, other than Governmental Approvals
the lack of which would not have a Material Adverse Effect on Goyaike.

 

(b)                                No order of a court enjoining or otherwise
restraining the Separation will be in effect and no governmental proceeding
regarding the Separation will be pending which is reasonably likely to result
in the imposition of penalties against Goyaike which would be material to
Goyaike.

 

(c)                                  (i) The covenants contained in this
Agreement and the Ancillary Agreements to be complied with by Group and ACT on
or before the Separation Date shall have been complied with in all material
respects and (ii) Goyaike shall have received certificates from Group and
ACT to such effect signed by a duly authorized officer thereof.

 

20

 

(d)                                 Goyaike shall have received a true and
complete copy, certified by the Secretary or an Assistant Secretary of Group
and ACT of the resolutions duly and validly adopted by the Board of Directors
of each of Group and ACT, in each case evidencing its authorization of the
execution and delivery of this Agreement and the Ancillary Agreements and the
consummation of the transactions contemplated hereby and thereby.

 

ARTICLE VII

TRANSITION SERVICES AND SHARED ASSETS

 

SECTION 7.01.  Transition
Services.  (a) From the date hereof until the
Separation Date, ACT shall continue to, and Group shall cause ACT to continue
to, provide Cyagra with the Services (as defined in the Management Agreement)
pursuant to the terms of the Management Agreement.

 

(b)                                 On or prior to the Separation Date, ACT shall
deliver to Cyagra and Goyaike true and complete copies of (i) Cyagra’s
unaudited balance sheet as of the last day of the month preceding the
Separation Date and the related statement of income, together with any related
schedules thereto, (ii) all tax returns and other federal, state and local
tax-related reports prepared by ACT or prepared under ACT’s supervision in
connection with ACT’s provision of Tax Services pursuant to this Section 7.01(a);
and (iii) all other reports and other Information produced by ACT or under its
supervision in connection with its provision of the Services pursuant to Section 7.01
(a).

 

SECTION 7.02.
 Shared Assets.  (a) As
and to the extent required in the Cyagra Business, Group and ACT shall provide
Cyagra the use of the Shared Assets identified in Exhibit 7.02(A) hereto.
 Unless a specific Shared Asset
identified in Exhibit 7.02(A) is designated therein as being
exclusive to Cyagra, the Shared Assets will be available for use by Group, ACT
and Cyagra on an as-needed basis.  In the
event Cyagra determines that it requires any additional equipment, Cyagra shall
acquire such equipment at its own expense and solely for its own use, unless
otherwise mutually agreed in writing by ACT and Cyagra.

 

(b)                                 Group or ACT, as applicable, shall remain the
owner or lessee, as applicable of each of the Shared Assets and shall be solely
responsible for maintaining the Shared Assets with all costs associated with
such maintenance to be shared by ACT and Cyagra in proportion to their use of
each Shared Asset.  Cyagra shall exercise
reasonable care to avoid any damage to the Shared Assets.

 

(c)                                  In consideration for the continued
availability to Cyagra of the Shared Assets and the Laboratory, Cyagra shall
pay ACT a monthly fee of US$1,000 (pro rated for any partial month) commencing
on the Separation Date and thereafter payable on the first day of each month
until the earlier of March 31, 2003 or the termination of the Sublease; provided
that if prior to the earlier of March 31, 2002 or the termination of the
Sublease, ACT decides to vacate the Premises, ACT shall give Cyagra written
notice of its decision to vacate the Premises at least 60 days prior to
vacating, and once ACT has vacated the Premises, neither party shall any

 

21

 

longer be obligated under
this Section 7.02(c).  On or prior
to the Separation Date, ACT shall, and Group shall cause ACT to, deliver to
Cyagra copies of the invoices relating to the acquisition of each Shared Asset.
 If an invoice indicates that Cyagra,
rather than Group or ACT, paid for any Shared Asset, such asset will be deemed
to be a Cyagra Asset, rather than a Shared Asset, and the monthly fee payable
by Cyagra pursuant to this Section 7.02(c) shall be reduced by an
amount mutually agreed upon in writing by ACT and Cyagra.

 

(d)                                 Each of Group, ACT, Cyagra and Goyaike
acknowledge that the provisions of Section 5.07(g) of this Agreement
shall apply to all information gained by each of Group, ACT, Cyagra or Goyaike,
as the case may be, relating to the other parties hereto as a result of such
parties using the Shared Assets.

 

ARTICLE VIII

INDEMNIFICATION

 

SECTION 8.01.  Indemnification
by Group and ACT.
 Except as otherwise expressly set forth
in Section 8.03, Group and ACT shall indemnify, defend and hold harmless
Cyagra and its past or present directors, officers, employees, agents and
Affiliates (other than ACT) and each of the heirs, executors, successors and
assigns of any of the foregoing (the “Cyagra Indemnitees”) from and
against any and all Liabilities, losses, damages, claims, costs and expenses,
interest, awards, judgments and penalties (including, without limitation,
attorneys’ and consultants’ fees and expenses) actually suffered or incurred by
them (including, without limitation, any Action brought or otherwise initiated
by any of them) (collectively, “Indemnifiable Losses” and individually,
an “Indemnifiable Loss”), arising act of or resulting from:

 

(i)                                     the failure or alleged failure of Group, ACT
or any of their respective Affiliates (other than Cyagra) to pay, perform or
otherwise discharge in due course any of the ACT Liabilities, including any
breach of any provision of this Agreement by Group, ACT or any of their
respective Affiliates (other than Cyagra);

 

(ii)                                  Group’s or ACT’s use of the Cyagra Assets
prior to or on the Separation Date;

 

(iii)                               the conduct and operation of the ACT Business by Group, ACT, their
respective Subsidiaries (other than Cyagra), Affiliates, or predecessors on or
at any time prior to or following the Separation Date;

 

(iv)                              the ACT Assets and any other Assets owned by Group and/or ACT, other
than the Cyagra Assets;

 

(v)                                  the breach by Group or ACT of any
representation, covenant or agreement set forth in this Agreement or any
Ancillary Agreement; and

 

22

 

(vi)                              any act or omission occasioned by the negligence or misconduct of
Group, ACT, their respective Affiliates (other than Cyagra), agents, officers,
directors, employees or consultants in connection with the performance of the
Services pursuant to Section 8.01 (regardless of whether such act or
omission constitutes a breach of this Agreement).

 

To the extent that Group’s
and ACT’s undertakings set forth in this Section 9.01 may be
unenforceable, Group and ACT shall each contribute the maximum amount that it
is permitted to contribute under applicable Law to the payment and satisfaction
of all Indemnifiable Losses incurred by the Cyagra Indemnitees.

 

SECTION 8.02.  Indemnification
by Cyagra.  Except as otherwise expressly set forth in Section 8.03,
Cyagra shall indemnify, defend and hold harmless Group, ACT and each of its
respective past or present directors, officers, employees, agents and Affiliates
(other than Cyagra) and each of the heirs, executors, successors and assigns of
any of the foregoing (the “ACT Indemnitees”) from and against any
and all Indemnifiable Losses arising out of or resulting from:

 

(i)                                     failure or alleged failure of Cyagra or any
of its Affiliates (other than Group and ACT) to pay, perform or otherwise
discharge in due course any of the Cyagra Liabilities, including any breach of
any provision of this Agreement by Cyagra or any of its Affiliates (other than
Group and ACT);

 

(ii)                                  Cyagra’s use of the ACT Assets prior to or on
the Separation Date;

 

(iii)                               the conduct and operation of the Cyagra Business by Cyagra or its
Affiliates on or at any time prior to or following the Separation Date;

 

(iv)                              the Cyagra Assets and any other Assets owned by Cyagra, other than the
ACT Assets; and

 

(v)                                 the breach by Cyagra of any representation,
covenant or agreement set forth in this Agreement or any Ancillary Agreement.

 

To the extent that Cyagra’s
undertakings set forth in this Section 8.02 may be unenforceable, Cyagra
shall contribute the maximum amount that it is permitted to contribute under
applicable Law to the payment and satisfaction of all Indemnifiable Losses
incurred by the ACT Indemnitees.

 

SECTION 8.03.  Insurance
Proceeds.  The amount which any party (an “Indemnifying
Party”) is or may be required to pay to or on behalf of any other Person
(an “Indemnified Person”) pursuant to Section 8.01 or Section 8.02
shall be reduced (including, without limitation, retroactively) by any insurance
proceeds or other amounts actually recovered by or on behalf of such
Indemnified Person in reduction of the related Indemnifiable Loss.  If an Indemnified Person shall have received
the payment required by this Agreement from an Indemnifying Party in respect of
an Indemnifiable Loss and shall subsequently actually receive

 

23

 

insurance proceeds, or
other amounts in respect of such Indemnifiable Loss as specified above, then
such Indemnified Person shall pay to such Indemnifying Party a sum equal to the
amount of such insurance proceeds or other amounts actually received.

 

SECTION 8.04.
 Procedure for Indemnification.  (a) If
an Indemnified Person shall receive written notice of the assertion by a Person
(including, without limitation, any Governmental Authority) who is not a party
to this Agreement of any claim or of the commencement by any such Person of any
Action with respect to which an Indemnifying Party may be obligated to provide
indemnification pursuant to this Agreement (a “Third-Party Claim”), such
Indemnified Person shall give the Indemnifying Party written notice thereof
promptly after becoming aware of such Third-Party Claim; provided that
the failure of any Indemnified Person to give notice as required by this Section 8.04
shall not relieve the Indemnifying Party of its obligations under this Article VIII,
except to the extent that such Indemnifying Party is materially prejudiced by
such failure to give notice.  Such notice
shall describe the Third-Party Claim in reasonable detail, and shall indicate
the amount (estimated if necessary) of the Indemnifiable Loss that has been
claimed against or may be sustained by such Indemnified Person.

 

(b)                                 Subject to Section 8.04(e) hereof,
an Indemnifying Party may elect to defend or to seek to settle or compromise,
at such Indemnifying Party’s own expense and by counsel reasonably satisfactory
to the Indemnified Person, any Third-Party Claim, provided that (i) the
Indemnifying Party must confirm in writing that it agrees that the Indemnified
Person is entitled to indemnification hereunder in respect of such Third-Party
Claim and (ii) no compromise or settlement shall be made without the prior
written consent of the Indemnified Person, which consent shall not be
unreasonably withheld.  Within 15 days of
the receipt of notice from an Indemnified Person in accordance with Section 8.04(a) (or
sooner, if the nature of such Third-Party Claim so requires), the Indemnifying
Party shall notify the Indemnified Person of its election whether to assume
responsibility for such Third-Party Claim (provided that if the Indemnifying
Party does not so notify the Indemnified Person of its election within 15 days
after receipt of such notice from the Indemnified Person, the Indemnifying
Party shall be deemed to have elected not to assume responsibility for such
Third-Party Claim).

 

(c)                                  In the event that the Indemnifying Party
elects to assume responsibility for the Third-Party Claim, pursuant to Section 8.04(b) above,
(i) the Indemnified Person shall cooperate in the defense or settlement or
compromise of such Third-Party Claim, including making available to the
Indemnifying Party any personnel and any books, records or other documents
within the Indemnified Person’s control or which it otherwise has the ability
to make available that are necessary or appropriate for the defense of the
Third-Party Claim, (ii) the Indemnifying Party shall keep the Indemnified
Person reasonably informed regarding the strategy, status and progress of the
defense of the Third-Party Claim, and (iii) the Indemnifying Party shall
consider, in good faith, the opinions and suggestions of the Indemnified Person
with respect to the Third-Party Claim.  After
notice from an Indemnifying Party to an Indemnified Person of its election to
assume responsibility for a Third-Party Claim, such Indemnifying Party shall
not be liable to such Indemnified Person under this Article VIII for any
legal or other costs or expenses (except costs or expenses approved in advance
by the Indemnifying Party) subsequently incurred by such Indemnified Person in
connection with the defense thereof; provided, that if the defendants in
any such claim include both the Indemnifying Party and one or

 

24

 

more Indemnified Persons
and in such Indemnified Persons’ reasonable judgment a conflict of interest
between such Indemnified Persons and such Indemnifying Party exists in respect
of such claim, such Indemnified Persons shall have the right to employ separate
counsel and in that event the reasonable fees, costs and expenses of such
separate counsel (but not more than one separate counsel reasonably
satisfactory to the Indemnifying Party) shall be paid by such Indemnifying
Party.

 

(d)                                 If an Indemnifying Party elects not to assume
responsibility for a Third-Party Claim, the Indemnified Person may defend or
(subject to the following sentence) seek to compromise or settle such
Third-Party Claim.  Notwithstanding the
foregoing, an Indemnified Person may not settle or compromise any claim without
prior written notice to the Indemnifying Party, which shall have the option
within ten days following the receipt of such notice (i) to disapprove the
settlement and to then assume all past and future responsibility for the claim,
including immediately reimbursing the Indemnified Person for prior expenditures
in connection with the claim, (ii) to disapprove the settlement and
continue to refrain from participation in the defense of the claim, in which
event the Indemnified Person may, in its sole discretion, proceed with the
settlement and the Indemnifying Party shall have no further right to contest
the amount or reasonableness of the settlement, (iii) to approve and pay the
amount of the settlement, reserving the Indemnifying Party’s right to contest
the Indemnified Person’s right to indemnity, or (iv) to approve and pay
the settlement.  In the event the
Indemnifying Party makes no response to such written notice, the Indemnifying
Party shall be deemed to have elected option (ii).  When the Indemnifying Party chooses, or is
deemed to have chosen, option (ii) or (iii), prior to the bringing of any
Action to determine the issue of whether the Indemnified Person has a right to
indemnity under this Article VIII, the parties shall comply with
provisions of Section 9.12 hereof.

 

(e)                                  Notwithstanding the foregoing, if an
Indemnified Person reasonably and in good faith determines that (i) the
Indemnifying Party is not financially capable to defend a Third-Party Claim and
to provide full indemnification with respect to any settlement thereof or (ii) the
Indemnifying Party or such Indemnifying Party’s attorney is not adequately
representing the Indemnified Person’s interests with respect to such
Third-Party Claim, the Indemnified Person may, by notice to the Indemnifying
Party, assume the exclusive right to defend, compromise or settle such
Third-Party Claim and the Indemnifying Party shall remain responsible for, and
be bound by the resolution of, such Third-Party Claim.

 

(f)                                    Any claim on account of an Indemnifiable Loss
which does not result from a Third-Party Claim shall be asserted by written
notice given by the Indemnified Person to the applicable Indemnifying Party.  Such Indemnifying Party shall have a period of
15 days after the receipt of such notice within which to respond thereto.  If such Indemnifying Party does not respond
within such 15-day period, such Indemnifying Party shall be deemed to have
refused to accept responsibility to make payment.  If such Indemnifying Party does not respond
within such 15-day period or rejects such claim in whole or in part, such
Indemnified Person shall be free to pursue such remedies as may be available to
such party under applicable law or under this Agreement.

 

(g)                                 In addition to any adjustments required
pursuant to Section 8.03, if the amount of any Indemnifiable Loss shall,
at any time subsequent to the payment required by this

 

25

 

Agreement, be reduced by recovery, settlement or otherwise, the amount
of such reduction, less any expenses incurred in connection therewith, shall
promptly be repaid by the Indemnified Person to the Indemnifying Party.

 

(h)                                 In the event of payment by an Indemnifying
Party to any Indemnified Person in connection with any Third-Party Claim, such
Indemnifying Party shall be subrogated to and shall stand in the place of such
Indemnified Person as to any events or circumstances in respect of which such
Indemnified Person may have any right or claim relating to such Third-Party
Claim against any claimant or plaintiff asserting such Third-Party Claim or
against any other party that may be liable.  Such Indemnified Person shall cooperate with
such Indemnifying Party in a reasonable manner, and at the cost and expense of
such Indemnifying Party, in prosecuting any subrogated right or claim.

 

SECTION 8.05.  Remedies Cumulative. The remedies provided in this Article VIII shall be cumulative and
shall not preclude assertion by any Indemnified Person of any other rights or
the seeking of any and all other remedies against any Indemnifying Party.

 

SECTION 8.06.  Survival
of Indemnities.  The obligations of each of Group, ACT and
Cyagra under this Article VIII shall survive the sale or other transfer by
it of any Assets or businesses or the assignment by it of any Liabilities, with
respect to any Indemnifiable Loss of the other related to such Assets,
businesses or Liabilities.

 

SECTION 8.07.  Limitation
on Damages.  In no event shall any party be liable for
special, incidental, indirect or consequential damages, whether or not caused
by or resulting from the negligence of such party.

 

ARTICLE IX

MISCELLANEOUS

 

SECTION 9.01.  Entire Agreement; No Third Party
Beneficiaries.  This
Agreement and all documents and instruments referred to herein constitute the
entire agreement and supersede all prior agreements and understandings, both
written and oral, among the parties with respect to the subject matter hereof,
and are not intended to confer upon any Person other than the parties hereto
any rights or remedies hereunder.

 

SECTION 9.02.  Expenses.  Except
as specifically provided in this Agreement, all fees and expenses incurred in
connection with this Agreement and the consummation of the transactions
contemplated hereby shall be paid by the party incurring such expenses.

 

SECTION 9.03.
 Governing Law; Submission to
Jurisdiction.  This Agreement shall be governed and construed
in accordance with the laws of the State of Massachusetts, without regard to
any applicable conflicts of laws.  All
actions and proceedings arising out of or relating to this Agreement shall be heard and determined in any Massachusetts
state or federal court sitting in The City of Boston.  The parties hereby (a) submit to the
exclusive jurisdiction of any state or federal court sitting in The City of
Boston for the purpose of any Action arising out

 

26

 

of
or relating to this Agreement brought by any party and (b) irrevocably
waive, and agree not to assert by way of motion, defense, or otherwise in any
such Action, any claim that it is not subject personally to the jurisdiction of
the above-named courts, that its property is exempt or immune from attachment
or execution, that the Action is brought in an inconvenient forum, that the
venue of the Action is improper, or that this Agreement may not be enforced in
or by any of the above-named courts.

 

SECTION 9.04.
 Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed given if delivered personally, telecopied (which is confirmed) or mailed
by registered or certified mail (return receipt requested) to the parties at
the following addresses (or at such other address for a party as shall be
specified by like notice):

 

(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.

 

(b)                                 if to Cyagra:

 

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.

 

27

 

(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.

 

SECTION 9.05.
 Amendments.  This
Agreement may not be amended except by an instrument in writing signed on behalf
of each of the parties hereto.

 

SECTION 9.06.
 Assignments.  Neither
this Agreement nor any of the rights, interests or obligations hereunder shall
be assigned by the parties hereto (whether by operation of law or otherwise)
without the prior written consent of the other party.  Subject to the preceding sentence, this
Agreement will be binding upon, inure to the benefit of and be enforceable by
the parties and their respective successors and assigns.

 

SECTION 9.07.
 Termination.  This
Agreement may be terminated upon the mutual written agreement of Group, ACT,
Cyagra and Goyaike:

 

(i)                                     by Group or ACT if Cyagra or Goyaike is in
default or material breach of any provision of this Agreement by giving ten (10) days
prior written notice to the other parties specifying the cause of the
termination; provided, however, that if the breach is cured
within the ten (10) day period, the notice shall be withdrawn and shall be
of no effect; and provided further, however that Group or ACT
shall not have caused Cyagra to default or breach any material provisions of
this Agreement;

 

(ii)                                  by Cyagra if Group, ACT or Goyaike is in
default or material breach of any provision of this Agreement by giving ten (10) days
prior written notice to the other parties specifying the cause of the
termination; provided, however, that if the breach is cured
within the ten (10) day period, the notice shall be withdrawn and shall be
of no effect; or

 

(iii)                               by Goyaike if Group, ACT or Cyagra is in default or material breach of
any provision of this Agreement by giving ten (10) days prior written
notice to the other parties specifying the cause of the termination; provided,
however, that if the breach is cured within the ten (10) day
period, the notice shall be withdrawn and shall be of no effect.

 

28

 

SECTION 9.08.  Specific
Performance.  The parties hereto agree that the remedy at
law for any breach of this Agreement will be inadequate and that any party by
whom this Agreement is enforceable shall be entitled to specific performance in
addition to any other appropriate relief or remedy.  Such party may, in its sole discretion, apply
to a court of competent jurisdiction for specific performance or injunctive or
such other relief as such court may deem just and proper in order to enforce
this Agreement or prevent any violation hereof and, to the extent permitted by
applicable laws, each party waives any objection to the imposition of such
relief.

 

SECTION 9.09.  Headings;
References.  The article, section and paragraph
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.  All references herein to “Article,” “Sections”
or “Exhibits” shall be deemed to be references to Articles or Sections hereof
or Exhibits hereto unless otherwise indicated.

 

SECTION 9.10.
 Counterparts.  This
Agreement may be executed in two or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when two or
more counterparts have been signed by each of the parties and delivered to the
other parties, it being understood that all parties need not sign the same
counterpart.

 

SECTION 9.11.  Severability;
Enforcement.  The invalidity of any portion hereof shall not
affect the validity, force or effect of the remaining portions hereof.  If it is ever held that any covenant hereunder
is too broad to permit enforcement of such covenant to its fullest extent, each
party agrees that a court of competent jurisdiction may enforce such covenant
to the maximum extent permitted by law, and each party hereby consents and
agrees that such scope may be judicially modified accordingly in any proceeding
brought to enforce such covenant.

 

SECTION 9.12.  Approvals,
Consent and Waivers.  Any approval, consent or waiver required
or authorized by any provision of this Agreement to be given or made by any of
the parties hereto shall only be valid to the extent such approval, consent or
waiver is in writing and signed by the Chief Executive Officer, the Chief
Financial Officer, the General Counsel, the Treasurer or the Controller of the
party to be bound by such approval, consent or waiver.

 

[Signature Page to
Follow]

 

29

 

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

 

	
   

  	
  A.C.T. GROUP, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael West

  	
   

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL WEST

  	
   

  
	
   

  	
   

  	
  Title:

  	
  PRESIDENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED CELL TECHNOLOGY, INC,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael West

  	
   

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL WEST

  	
   

  
	
   

  	
   

  	
  Title:

  	
  PRESIDENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CYAGRA, 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

  	
   

  
						

 

30

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