Document:

Exhibit 10.18

SECOND AMENDMENT LOAN AND SECURITY AGREEMENT

This SECOND AMENDMENT TO
LOAN AND SECURITY AGREEMENT (this “Amendment”) is made and entered into
effective for all purposes as of December 1, 2005 (the “Effective Date”)
among INSIGHT EQUITY A.P. X, LP, a Texas limited partnership (“Borrower”),
INSIGHT EQUITY A.P. X ASIA, LLC, a Delaware limited liability company (“Asia
LLC”), PT. VISION-EASE ASIA, an investment company organized under the laws
of the Republic of Indonesia (“Vision-Ease Asia”), INSIGHT EQUITY A.P. X
CANADA, LLC, a Delaware limited liability company (“Canada LLC”),
INSIGHT EQUITY A.P. X CANADA PARTNERS, LP, a Texas limited partnership (“Canada
LP”), VISION-EASE CANADA CO., an unlimited company organized under the laws
of the Province of Nova Scotia, Canada and successor in interest by
amalgamation to Vision-Ease Canada, Ltd. (“Vision-Ease Canada”), VISION
EASE LENS EUROPE LIMITED, a company limited by shares registered in England and
Wales (“Vision-Ease Europe”), VISION-EASE LENS LIMITED, a company
limited by shares registered in England and Wales (“Vision-Ease Lens”),
INSIGHT EQUITY A.P. X COMPANY, LLC, a Texas limited liability company and the
general partner of Borrower (“General Partner”), the financial
institutions which are now or which hereafter become a party hereto
(collectively, “Lenders” and individually a “Lender”) and ORIX
Finance Corp. (“ORIX”), as agent for Lenders (ORIX and its successors
and assigns in such capacity, “Agent”).

R
E C I T A L S:

A.            Pursuant to that certain Loan and Security
Agreement dated as of December 1, 2005, by and among Borrower, Asia LLC,
Vision-Ease Asia, Canada LLC, Canada LP, Vision-Ease Canada, Vision-Ease
Europe, Vision-Ease Lens, General Partner, Lenders and Agent (as amended by
that certain Waiver and First Amendment to Loan Agreement effective as of
December 1, 2005, the “Agreement”), Lenders extended certain credit
facilities to Borrower.

B.            Borrower and the Loan Parties have requested
that the Agreement be amended in certain respects, and Agent and Lenders are
willing to comply with such request subject to the terms and provisions of this
Amendment.

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE 1

DEFINITIONS

Section 1.1  Terms Defined.  Unless otherwise defined in this Amendment,
each capitalized term used in this Amendment has the meaning given to such term
in the Agreement (as amended by this Amendment).

ARTICLE 2

AMENDMENT

Section 2.1  Amendment to Agreement.  Clause (a) of Section 6.6
of the Agreement is hereby amended such that the amount “$-0-“
presently appearing in such clause is deleted and replaced by the following
phrase:  

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“an amount equal to the actual Tangible Net Worth of Borrower and its
consolidated Subsidiaries as of December 31, 2005, as derived from the
audited financial statements”.

ARTICLE 3

MISCELLANEOUS

Section 3.1  Representations and Warranties.  Borrower and each Loan Party hereby jointly
and severally represent and warrant to Agent and Lenders that, as of the date
of and after giving effect to this Amendment, (a) the execution, delivery and
performance of this Amendment and any and all other documents executed and/or
delivered in connection herewith have been authorized by all requisite action
on the part of Borrower or any Loan Party and will not violate Borrower’s or any
Loan Party’s organizational documents, (b) the term “Other Documents” as defined in the Agreement and as used in
the Agreement or any of the Other Documents includes, without limitation, any
and all other documents executed and/or delivered in connection with this
Amendment, (c) all representations and warranties set forth in the Agreement
and in the Other Documents are true and correct in all material respects as if made again on and as of such date
(except to the extent that such representations and warranties were expressly
made only in reference to a specific date), (d) no Default or Event of Default
has occurred and is continuing, and (e) the Agreement and the Other Documents
(as amended by this Amendment) are and remain legal, valid, binding and
enforceable obligations of Borrower and/or the Loan Parties, as applicable.

Section 3.2  Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLIED TO
CONTRACTS TO BE PERFORMED WHOLLY WITHIN THE STATE OF TEXAS.

Section 3.3  Counterparts.  This Amendment may be executed in any number
of counterparts, all of which when taken together shall constitute one
agreement, and any of the parties hereto may execute this Amendment by signing
any such counterpart.  Any signature
delivered by a party by facsimile transmission shall be deemed to be an
original signature hereto.

Section 3.4  No Oral Agreements.  THIS AMENDMENT, TOGETHER WITH THE AGREEMENT
AND THE OTHER DOCUMENTS AS WRITTEN, REPRESENT THE FINAL AGREEMENTS BETWEEN AND
AMONG THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN OR AMONG (A) BORROWER, (B) ANY LOAN PARTY, (C) AGENT AND/OR (D) ANY
LENDER.

Section 3.5  Agreement Remains in Effect; No Waiver.  Except as expressly provided herein, all
terms and provisions of the Agreement and the Other Documents shall remain
unchanged and in full force and effect and are hereby ratified and
confirmed.  No waiver by Agent or any Lender
of any Default or Event of Default shall be deemed to be a waiver of any other
Default or Event of Default.  No delay or
omission by Agent or any Lender in exercising any power, right or remedy shall
impair such power, right or remedy or be construed as a waiver thereof or an
acquiescence therein, and no single or partial exercise of any such power,
right or remedy shall preclude other or further exercise thereof or the
exercise of any other power, right or remedy under the Agreement, the Other
Documents or otherwise.

 2
 

 

Section 3.6  Survival of Representations and Warranties.  All representations and warranties made in
this Amendment or any Other Document shall survive the execution and delivery
of this Amendment and the Other Documents, and no investigation by Agent or any
Lender or any closing shall affect the representations and warranties or the
right of Agent or any Lender to rely upon them.

Section 3.7  Reference to Agreement.  Each of the Agreement and the Other Documents
and any and all other agreements, documents or instruments now or hereafter
executed and/or delivered pursuant to the terms hereof or pursuant to the terms
of the Agreement as amended hereby, are hereby amended so that any reference in
such Agreement or Other Documents to the Agreement shall mean a reference to
the Agreement as amended hereby.

Section 3.8  Severability.  Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

Section 3.9  Successors and Assigns.  This Amendment is binding upon and shall
inure to the benefit of Agent, Lenders, Borrower, the other Loan Parties and
their respective successors and assigns, except that neither Borrower nor any
other Loan Party may assign or transfer any of its rights or obligations
hereunder without the prior written consent of Agent and Lenders.

Section 3.10  Headings.  The headings, captions and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

Section 3.11  Consent.  Each Loan Party, as a Guarantor of the
Obligations, hereby consents to Borrower, Agent and Lenders entering into this
Amendment and agrees that (a) the Other Documents to which such Loan Party is a
party shall remain in full force and effect and shall continue to be the legal,
valid and binding obligations of such Loan Party enforceable against it in accordance
with their respective terms and are hereby ratified and confirmed in all
respects, and (b) the indebtedness, liabilities and obligations secured,
guaranteed and/or evidenced by the Other Documents to which such Loan Party is
a party include, without limitation, all “Obligations” as such term is defined
in the Agreement as amended by this Amendment and as such “Obligations” may be
increased or modified directly or indirectly as a result of or in connection
with this Amendment.

[Signature Page Follows]

 3
 

 

IN WITNESS WHEREOF,
Borrower, the Loan Parties, Agent and Lenders have caused this Amendment to be
executed and delivered by their duly authorized officers effective as of the
date first above written.

	
  

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
  INSIGHT EQUITY A.P. X, LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Equity A.P. X Company, LLC

  
	
   

  	
  Title:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  
	
   

  	
   

  	
  Name:

  	
  Ted W. Beneski

  
	
   

  	
   

  	
  Title:

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADDITIONAL LOAN PARTIES:

  
	
   

  	
   

  	
   

  
	
   

  	
  INSIGHT EQUITY A.P. X ASIA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ted W. Beneski

  
	
   

  	
  Title:

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PT. VISION-EASE ASIA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ted W. Beneski

  
	
   

  	
  Title:

  	
   

  	
  President Commissioner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INSIGHT EQUITY A.P. X CANADA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ted W. Beneski

  
	
   

  	
  Title:

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

 

 4
 

 

 

	
   

  	
  INSIGHT EQUITY A.P. X CANADA PARTNERS, LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Equity A.P. X Canada, LLC

  
	
   

  	
  Title:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ted W. Beneski

  
	
   

  	
  Title:

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VISION-EASE CANADA CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ted W. Beneski

  
	
   

  	
  Title:

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VISION EASE LENS EUROPE LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Rich Faber

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Rich Faber

  
	
   

  	
  Title:

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VISION-EASE LENS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Rich Faber

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Rich Faber

  
	
   

  	
  Title:

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INSIGHT EQUITY A.P. X COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ted W. Beneski

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ted W. Beneski

  
	
   

  	
  Title:

  	
   

  	
  Chairman of the Board

  
						

 

 5
 

 

 

	
  

  	
  AGENT AND A LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
  ORIX FINANCE CORP.,

  
	
   

  	
  as Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Christopher L. Smith

  	
   

  
	
   

  	
  Name:

  	
  Christopher L. Smith

  
	
   

  	
  Title:

  	
  Authorized Representative

  
						

 

 6
 

 

 

	
  

  	
  BLAZERMAN AND CO., AS THE NOMINEE

  
	
   

  	
  OF BILL & MELINDA GATES FOUNDATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kevin S. Buckle

  	
   

  
	
   

  	
  Name:

  	
  Kevin S. Buckle

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
							

 7
 

 

 

	
  

  	
  CASCADE INVESTMENT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kevin S. Buckle

  	
   

  
	
   

  	
  Name:

  	
  Kevin S. Buckle

  
	
   

  	
  Title:

  	
  Senior Vice President 

  
							

 

 8
 

 

 

	
  

  	
  COASTLEDGE AND CO., AS THE NOMINEE OF

  ARROW INVESTMENT PARTNERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kevin S. Buckle

  	
   

  
	
   

  	
  Name:

  	
  Kevin S. Buckle

  
	
   

  	
  Title:

  	
  Senior Vice President

  
							

 

 9
 

 

 

	
  

  	
  NEWSTAR COMMERCIAL LOAN TRUST 2006-1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Walter J. Marullo

  	
   

  
	
   

  	
  Name:

  	
  Walter J. Marullo

  
	
   

  	
  Title:

  	
  Managing Director

  
						

 

 10Exhibit
10.96

AMENDMENT
NO.  1

TO

SECURITIES PURCHASE AGREEMENT, AMORTIZING CONVERTIBLE DEBENTURE AND
REGISTRATION RIGHTS AGREEMENT

(2005 Financing)

This Amendment No. 1
(this “Amendment”) to the Securities Purchase Agreement, the Amortizing
Convertible Debenture, and the Registration Rights Agreement, each of which is
identified on Exhibit A hereto, dated as of January 10, 2007 is
entered into by and among Advanced Cell Technology, Inc., a Delaware
corporation (the “Company”) and the investors signatory hereto (each, a “Purchaser”
and collectively, the “Purchasers”). 
Capitalized terms not defined in this Amendment shall have the meanings
ascribed to such terms in the Purchase Agreement (as defined below).

Preliminary Statement:

WHEREAS, pursuant to the Securities Purchase Agreement
dated September 15, 2005 among the Company and the Purchasers (the “Purchase
Agreement”), the Purchasers were issued amortizing convertible debentures
(the “Debentures”) in the aggregate original principal amount of
$22,276,250 and in the individual amounts set forth below such Purchaser’s name
on the signature pages to the Purchase Agreement; and

WHEREAS, subject to the terms and conditions set forth
herein, the Purchasers have, among other things, agreed to amend certain provisions
of the Purchase Agreement, Debenture and the Registration Rights Agreement,
dated as of September 15, 2005 by and among the Company and the Purchasers (the
“Registration Rights Agreement”), and the Company has agreed to reduce the
Conversion Price to $0.90.

NOW, THEREFORE, the parties to this Amendment, for
adequate and sufficient consideration, the receipt of which is hereby
acknowledged, do hereby agree as follows:

1.             Waiver of Corporate Milestones.
Each Purchaser, severally and not jointly with the other Purchasers, hereby
agrees to irrevocably waive the satisfaction of any and all Corporate
Milestones as a condition precedent to the payment of Monthly Redemptions (as
defined in the Debentures) with shares of Common Stock, with respect to all
Monthly Redemption Dates (as defined in the Debentures) occurring after the
Closing Date (as defined below), it being understood that the Company shall be
permitted to make such Monthly Redemption payments under the Debentures on such
dates in the form of Common Stock otherwise pursuant to, in accordance with,
and subject to, all other terms and conditions set forth in the Debentures and
other Transaction Documents, including, without limitation, the satisfaction of
all Equity Conditions (as defined in the Debentures), and other conditions set
forth in Section 6(b) of the Debentures which are not waived hereunder.

2.             Amendment to Conversion Price.  Section 4(b) of the Debentures is hereby
deleted in its entirety and replaced with the following:

“Conversion Price.  The conversion price in effect on any
Conversion Date shall be equal to $0.90(subject
to adjustment herein)(the “Conversion Price”).”

 

3.             Reduction in Exercise Price of
Warrants.  Notwithstanding anything
to the contrary in the Purchase Agreement or Warrants, the Exercise Price of
all Warrants (including any replacement warrants issued to a Purchaser upon the
exercise of any Warrants) issued pursuant to the Purchase Agreement or any
subsequent agreement entered into in connection therewith is hereby reduced to
equal $0.95, subject to adjustment for reverse and forward stock splits and the
like.  In the event of any conflict
between the terms and provisions of the Purchase Agreement or Warrants and this
Amendment, this Amendment shall control.

4.             Amendment to Registration Rights
Agreement Requirement to Register 130% of Registrable Securities.  Section 3(c) of the Registration Rights
Agreement is hereby amended and restated as follows:

“If during the Effectiveness Period, the number of
Registrable Securities at any time exceeds 90% of the number of shares of
Common Stock then registered in a Registration Statement and 130% of the “Registrable
Securities” under that certain Registration Rights Agreement, dated August 30,
2006, by and among the Company and the holders thereto (including without
limitation securities subject to any registration rights agreements entered
into in connection with the issuance of any securities pursuant to Section 4.18
of the Purchase Agreement), are registered for resale with the Commission, then
the Company shall file as soon as reasonably practicable but in any case prior
to the applicable Filing Date (or such later date if required pursuant to Rule
415 but in no event later than 6 months from the effective date of the most
recent Registration Statement, including registration statements filed with
respect to securities issued pursuant to Section 4.18 of the Purchase
Agreement), an additional Registration Statement covering the resale by the
Holders of not less than 130% of the number of such Registrable Securities (or
such lesser amount if required pursuant to Rule 415 but in no event less than
30% of the Company issued and outstanding Common Stock at the time of filing
less shares then held by Affiliates of the Company).”

5.             Amendment to the Definition of “Registrable
Securities” in the Registration Rights Agreement.  The definition of “Registrable Securities”
set forth in Section 1 of the Registration Rights Agreement is hereby deleted
and replaced in its entirety with the following:

“Registrable
Securities” means, as of the date in question, (i) all of the shares of
Common Stock issuable upon conversion in full of the Debentures, (ii) all of
the shares of Common Stock issuable upon exercise in full of the Warrants,
(iii) any securities issued or issuable upon any stock split, dividend or other
distribution, recapitalization or similar event with respect to the foregoing
and (iv) any additional shares issuable in connection with any anti-dilution
provisions associated with the Debentures and Warrants (in each case, without
giving effect to any limitations on conversion set forth in the Debentures or
limitations on exercise set forth in the Warrant).”

 2
 

 

6.             Amendment to Section 6(b) of the
Registration Rights Agreement. 
Section 6(b) of the Registration Rights Agreement is hereby deleted and
replaced in its entirety with the following:

“ (b)        No Piggyback on Registrations. Except as set forth on Schedule
6(b) attached hereto, neither the Company nor any of its security holders
(other than the Holders in such capacity pursuant hereto) may include
securities of the Company in the initial Registration Statement other than the
Registrable Securities.  No Person has
any right to cause the Company to effect the registration under the Securities Act
of any securities of the Company.  Until
there are no longer any Registrable Securities outstanding, the Company shall
not file any other registration statements, other than a Permitted Registration
Statement, registering for resale Common Stock, Common Stock underlying Common
Stock Equivalents and Common Stock Equivalents that are outstanding on the date
hereof.

For purposes of this
Section 6(b), “Permitted Registration Statements” shall include
registration statements filed subsequent to the date of this Agreement (i) on
Form S-8 (or similar form which may be promulgated in the future) that register
for resale Common Stock, Common Stock underlying Common Stock Equivalents and
Common Stock Equivalents in connection option plans that have been approved by
the Company’s Board of Directors, provided that such registrations shall not
exceed, in the aggregate, 1,000,000 shares (subject to adjustment for forward
and reverse stock splits and the like) in any 12 month period provided that all
such shares are issued at or above the then market price of the Common Stock;
or (ii) that register for resale Common Stock, Common Stock underlying Common
Stock Equivalents and Common Stock Equivalents issued pursuant to acquisitions
or strategic transactions, provided any such issuance shall only be to a Person
which is, itself or through its subsidiaries, an operating company in a
business synergistic with the business of the Company and in which the Company
receives benefits in addition to the investment of funds, but shall not include
a transaction in which the Company is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing
in securities; provided, however, no registration statement in
clauses (i) or (ii) shall be a Permitted Registration Statement if at the time
such registration statement is to be filed the Company has a pending
Registration Statement then on file with the Commission that has yet to be
declared effective by the Commission or the Holders have demanded that a
Registration Statement be filed in accordance with the terms thereof.”

7.             Amendment to the Definition of “Equity
Conditions” in Section 1 of the Debenture. 
The definition of “Equity Conditions” set forth in Section 1 of the
Debenture is hereby deleted and replaced in its entirety with the following:

““Equity Conditions” shall mean, during the period in
question, (i) the Company shall have duly honored all conversions and
redemptions scheduled to occur or occurring by virtue of one or more Notice of
Conversions of the Holder, if any, (ii) all liquidated damages and other
amounts owing to the Holder in respect of this Debenture shall have been paid;
(iii) either (A) there is an effective Registration Statement pursuant to which
the Holder is permitted to utilize the prospectus thereunder to resell all of
the shares in question or issuable pursuant to the portion of this Debenture in
question (and the Company is not aware of any information that would cause it
to believe such use would be interrupted) or (B) the shares in question are
eligible for immediate resale pursuant to 

 3
 

Rule 144, subject
to the volume and manner provisions thereof, or pursuant to Rule 144(k), (iv)
the Common Stock is trading on the Trading Market and all of the shares issuable
pursuant to the Transaction Documents are listed for trading on a Trading
Market (and the Company is not aware of any information that would cause it to
believe trading would be interrupted), (v) there is a sufficient number of
authorized but unissued and otherwise unreserved shares of Common Stock for the
issuance of all of the shares issuable pursuant to the Transaction Documents,
(vi) there is then existing no Event of Default, (vii) the issuance of the
shares in question (or, in the case of a redemption, the shares issuable upon
conversion in full of the redemption amount) to the Holder would not violate
the limitation set forth in Section 4(c) and (viii) no public announcement of a
pending or proposed Fundamental Transaction, Change of Control Transaction or
acquisition transaction has occurred that has not been consummated.”

8.             Amendment to the Definition of “Exempt
Issuance” in Section 1 of the Purchase Agreement.  The definition of “Exempt Issuance” set forth
in Section 1 of the Purchase Agreement is hereby deleted and replaced in its
entirety with the following:

““Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers, consultants (provided issuances to consultants shall not exceed
500,000 shares (subject to adjustments for reverse and forward stock splits and
the like) in any 12 month period and shall not be issued for an effective price
per share less than the market price of the Common Stock at the time of such
issuance) or directors of the Company pursuant to any stock or option plan duly
adopted by a majority of the non-employee members of the Board of Directors of
the Company or a majority of the members of a committee of non-employee
directors established for such purpose, (b) securities upon the exercise or
conversion of any securities issued pursuant to this Agreement, convertible
securities, options or warrants issued and outstanding on the date of this
Agreement, provided that any such securities have not been amended since the
date of this Agreement to increase the number of such securities or to decrease
the exercise, exchange or conversion price of any such securities, and (c)
securities issued pursuant to acquisitions or strategic transactions, provided
any such issuance shall only be to a Person which is, itself or through its
subsidiaries, an operating company in a business synergistic with the business
of the Company and in which the Company receives benefits in addition to the
investment of funds, but shall not include a transaction in which the Company
is issuing securities primarily for the purpose of raising capital or to an
entity whose primary business is investing in securities.”

9.             Amendment to the last sentence
of Section 4(d)(vi) of the Debenture. 
The last sentence of Section 4(d)(vi) of the Debenture is hereby deleted
and replaced in its entirety with the following:

“The Company covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be
duly and validly authorized, issued and fully paid, nonassessable.”

 4
 

 

10.           Amendment to Section 6(b) and 6(c)
of the Debenture.  The following
sentence is hereby added to the end of Section 6(b) and 6(c) of the Debenture:

“Notwithstanding
the foregoing, the Company shall have the right to pay any Monthly Redemption
Amount (or portion thereof) in cash to any holder with respect to which there
is not then available sufficient registered shares of Common Stock (or shares
of Common Stock eligible for immediate resale under Rule 144), regardless of
whether its determination to pay such Monthly Redemption Amount in cash or in
shares of Common Stock applies ratably to all holders.”

11.           Amendment to Section 8(a)x. of the
Debenture.  Section 8(a)x. of the
Debenture is hereby deleted and replaced in its entirety with the following:

“x.           if,
during the Effectiveness Period (as defined in the Registration Rights
Agreement), the effectiveness of the Registration Statement lapses for any
reason or the Holder shall not be permitted to resell Registrable Securities
(as defined in the Registration Rights Agreement) under the Registration
Statement (as described in, and to the extent required by, Section 3 of the
Registration Rights Agreement), in either case, for more than 30 consecutive
Trading Days or 60 non-consecutive Trading Days during any 12 month period;
provided, however, that in the event that the Company is negotiating a merger,
consolidation, acquisition or sale of all or substantially all of its assets or
a similar transaction and in the written opinion of counsel to the Company, the
Registration Statement, would be required to be amended to include information
concerning such transactions or the parties thereto that is not available or
may not be publicly disclosed at the time, the Company shall be permitted an
additional 10 consecutive Trading Days during any 12 month period relating to
such an event.”

12.           Conditions to Purchasers’
Obligations.  Purchasers’ obligations
hereunder (including the obligation to waive the Corporate Milestones in
accordance with Section 1) is subject to the satisfaction, at or prior to the
Closing Date, of the following conditions:

(a)           the accuracy in all material respects
of the representations and warranties of the Company contained herein;

(b)           all obligations, covenants and
agreements of the Company required to be performed hereunder shall have been
performed; and

(c)           the Company shall be in receipt of an
executed Amendment to the 2006 Transaction Documents, the form of which is
attached hereto as Exhibit B, 
which shall be executed by each of the Purchasers (as defined in the
2006 Purchase Agreement); and

(d)           there shall have been no Material
Adverse Effect with respect to the Company between the date hereof and the
Closing Date.

 5
 

 

13.           Conditions to Effectiveness of
Conversion Price Amendment and Company Obligations.  The Company’ obligations hereunder and the
effectiveness of the amendment to the conversion price set forth with Section 2
are subject to the satisfaction, at or prior to the Closing Date, of the
following conditions:

(a)           the accuracy in all material respects
of the representations and warranties of the Purchasers contained herein;

(b)           all obligations, covenants and
agreements of the Purchasers required to be performed hereunder shall have been
performed; and

(c)           the Company shall be in receipt of an
executed Amendment to the 2006 Transaction Documents, the form of which is
attached hereto as Exhibit B, 
which shall be executed by each of the Purchasers (as defined in the
2006 Purchase Agreement).

14.           Closing.  The closing of agreements, waivers,
obligations and commitments contained in this Amendment (the “Closing”) shall
take place at such time or place as the Company and Purchasers may mutually
agree (such date is hereinafter referred to as the “Closing Date”); provided
however, if the Closing has not occurred by ____ __, 200_, this Amendment shall
become null and void and all agreements, commitments, waivers and other
obligations set forth herein shall be of no force or effect.

15.           Rule 144  Commitment.  Contemporaneously herewith and subject to
Section 4.1 of the Purchase Agreement, the Company shall deliver to its
transfer agent an opinion of counsel confirming that the Underlying Shares are
eligible for resale pursuant to Rule 144, upon compliance with the volume and
manner of sale limitations set forth therein. 
With respect to each resale transaction, the Company shall deliver to
its transfer agent an opinion of counsel authorizing the resale of Underlying
Shares without restrictive legend within 24 hours following delivery to the Company’s
counsel of fully completed broker representation letters, seller representation
letters and Commission Form 144, in customary form, relating to any such
resale.

Notwithstanding anything
herein to the contrary, the Company shall have no obligation to register any
Registrable Securities that are eligible for sale without volume restrictions
pursuant to Rule 144(k).

16.           Representations
and Warranties of the Company.  The
Company hereby makes to each Purchaser the following representations and
warranties:

i.              Authorization;
Enforcement.  The Company has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by this Amendment and otherwise to carry out its
obligations hereunder and thereunder. 
The execution and delivery of this Amendment by the Company and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of the Company and no further
action is required by the Company, its board of directors or its stockholders
in connection therewith other than in connection with the Required
Approvals.  This Amendment has been duly
executed by the Company and, when delivered in accordance with the terms hereof
will constitute the valid and 

 6
 

binding
obligation of the Company enforceable against the Company in accordance with
its terms except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

ii.             No
Conflicts.  The execution, delivery
and performance of this Amendment by the Company and the consummation by the
Company of the transactions contemplated hereby do not and will not: (i)
conflict with or violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or
charter documents, or (ii) conflict with, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, result
in the creation of any Lien upon any of the properties or assets of the Company
or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both)
of, any material agreement, credit facility, debt or other material instrument
(evidencing a Company or Subsidiary debt or otherwise) or other material
understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, or
(iii) subject to the Required Approvals, conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company or a
Subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii),
such as could not have or reasonably be expected to result in a Material
Adverse Effect.

iii.            Affirmation
of Prior Representations and Warranties. 
Except as set forth under the corresponding section of the disclosure
schedules attached to the Purchase Agreement and except as set forth on Schedule
9(iii) attached hereto and as reflected in the Company’s filings with the
Commission since the issuance of the Debentures, if any, all representations
and warranties of the Company contained in the Purchase Agreement were true and
correct when made and remain true and correct as of the date hereof, as though
made at and as of the date hereof. 
Except as set forth herein or on Schedule 9(iii) attached hereto
or otherwise previously waived by the Purchasers, the Company has performed all
of the material covenants of the Company contained in the applicable
Transaction Documents to be performed by the Company through the date hereof.

iv.            Equal
Consideration.  Except as set forth
in this Amendment, no consideration has been offered or paid to any person to
amend or consent to a waiver, modification, forbearance or otherwise of any
provision of any of the Transaction Documents.

17.           Representations
and Warranties of the Purchasers. 
Each Purchaser hereby, for itself and for no other Purchaser, represents
and warrants as of the date hereof to the Company as follows:

 7
 

 

i.              Authority.  The execution, delivery and performance by
such Purchaser of the transactions contemplated by this Amendment have been
duly authorized by all necessary corporate or similar action on the part of
such Purchaser.  This Amendment has been
duly executed by such Purchaser, and when delivered by such Purchaser in
accordance with the terms hereof, will constitute the valid and legally binding
obligation of such Purchaser, enforceable against it in accordance with its
terms, except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

18.           Effect on
Transaction Documents.  Except as expressly set forth
above, all of the terms and conditions of the Transaction Documents shall
continue in full force and effect after the execution of this Amendment and
shall not be in any way changed, modified or superseded by the terms set forth
herein, including but not limited to, any other obligations the Company may
have to the Purchasers under the Transaction Documents.  This Amendment shall not constitute a
novation or satisfaction and accord of any Transaction Document.

19.           Consent.  By executing this Amendment, each Purchaser
hereby consents to the terms and conditions of this Amendment, in such
Purchaser’s capacity as both a Purchaser under the Purchaser Agreement and, if
applicable, as a Purchaser (as defined in that certain Securities Purchase
Agreement, dated as of August 30, 2006, by and among the Company and the
Purchasers (as defined therein)).

20.           Release of all
Claims.  THE COMPANY (FOR ITSELF AND
ITS AFFILIATES) HEREBY UNCONDITIONALLY RELEASES AND FOREVER DISCHARGES EACH
HOLDER AND ITS RESPECTIVE SUCCESSORS, ASSIGNS, AGENTS, DIRECTORS, OFFICERS,
EMPLOYEES, AFFILIATES, ACCOUNTANTS, CONSULTANTS, CONTRACTORS, ADVISORS AND
ATTORNEYS (COLLECTIVELY, THE “BENEFITED PARTIES”) FROM ALL CLAIMS (AS
DEFINED BELOW) AND AGREES TO INDEMNIFY THE BENEFITED PARTIES, AND HOLD THEM
HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, CAUSES OF ACTION, COSTS AND EXPENSES
OF EVERY KIND OR CHARACTER IN CONNECTION WITH THE CLAIMS. AS USED IN THIS
AMENDMENT, THE TERM “CLAIMS” MEANS ANY AND ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTIONS, COSTS, EXPENSES AND LIABILITIES WHATSOEVER, KNOWN
OR UNKNOWN, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART, WHICH THE
COMPANY, OR ANY OF ITS AGENTS, EMPLOYEES OR AFFILIATES MAY NOW OR HEREAFTER
HAVE OR CLAIM AGAINST ANY OF THE BENEFITED PARTIES AND IRRESPECTIVE OF WHETHER
ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR OTHERWISE IN
CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS, INCLUDING ANY CONTRACTING
FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF
THE MAXIMUM RATE ON INTEREST CHARGEABLE UNDER APPLICABLE LAW AND ANY LOSS, COST
OR DAMAGE, OF ANY KIND OR CHARACTER, ARISING OUT OF OR IN ANY WAY CONNECTED
WITH OR IN ANY WAY RESULTING FROM THE ACTIONS OR OMISSIONS OF THE BENEFITED
PARTIES,

 8

 

INCLUDING ANY BREACH OF FIDUCIARY DUTY, BREACH OF ANY
DUTY OF GOOD FAITH OR FAIR DEALING, UNDUE INFLUENCE, DURESS, ECONOMIC COERCION,
CONFLICT OF INTEREST, NEGLIGENCE, BAD FAITH, MALPRACTICE, VIOLATIONS OF THE
RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT, INTENTIONAL OR NEGLIGENT
INFLICTION OF MENTAL DISTRESS, TORTIOUS INTERFERENCE WITH CONTRACTUAL
RELATIONS, TORTIOUS INTERFERENCE WITH CORPORATE GOVERNANCE OR PROSPECTIVE
BUSINESS ADVANTAGE, BREACH OF CONTRACT, DECEPTIVE TRADE PRACTICES, LIBEL, SLANDER,
CONSPIRACY OR ANY CLAIM FOR WRONGFULLY ACCELERATING ANY OBLIGATIONS OR
WRONGFULLY ATTEMPTING TO FORECLOSE ON ANY COLLATERAL. THE COMPANY (FOR ITSELF
AND ITS AFFILIATES) AGREES THAT NONE OF THE BENEFITED PARTIES HAS FIDUCIARY OR
SIMILAR OBLIGATIONS TO THE COMPANY OR ANY AGENTS, EMPLOYEES OR AFFILIATES OF
THE COMPANY AND THAT THEIR RELATIONSHIPS ARE STRICTLY THAT OF CREDITOR AND
DEBTOR. THIS RELEASE IS ACCEPTED BY HOLDERS PURSUANT TO THIS AMENDMENT AND
SHALL NOT BE CONSTRUED AS AN ADMISSION OF LIABILITY BY HOLDERS OR ANY OTHER
BENEFITED PARTY.

THE COMPANY (FOR ITSELF AND ITS AFFILIATES)
ACKNOWLEDGES THAT THE FOREGOING PROVISIONS ARE INTENDED TO, AND THE TRANSACTION
DOCUMENTS CONTAIN PROVISIONS WHICH, RELEASE HOLDERS FROM LIABILITY AND/OR
INDEMNIFY AND HOLD HARMLESS HOLDERS FOR, AMONG OTHER THINGS, THE ORDINARY
NEGLIGENCE OF HOLDERS. THE COMPANY (FOR ITSELF AND ITS AFFILIATES) AGREES THAT
THE RELEASE AND/OR INDEMNITY PROVISIONS CONTAINED IN THESE DOCUMENTS ARE
CAPTIONED TO CLEARLY IDENTIFY THE RELEASE AND/OR INDEMNITY PROVISIONS AND,
THEREFORE, ARE SO CONSPICUOUS THAT THE COMPANY AND ITS AFFILIATES HAS FAIR
NOTICE OF THE EXISTENCE AND CONTENTS OF SUCH PROVISIONS.

21.           Expenses.  Except as expressly set forth herein, each
party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this
Amendment.

22.             Amendments and Waivers. The
provisions of this Amendment, including the provisions of this sentence, may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and each Purchaser.

23.           Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be delivered
as set forth in the applicable Purchase Amendment.

24.           Successors and Assigns. This
Amendment shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties and shall inure to the benefit of each
Purchaser. The Company may not assign (except by merger) its rights or
obligations hereunder without the prior written consent of all of the
Purchasers of the then-

 9
 

outstanding Securities. Each Purchaser may assign
their respective rights hereunder in the manner and to the Persons as permitted
under the applicable Purchase Agreement.

25.           Execution and Counterparts. This
Amendment may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or “.pdf” signature page were an
original thereof.

26.           Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Amendment shall be determined
in accordance with the provisions of the Purchase Agreement.

27.           Severability. If any term,
provision, covenant or restriction of this Amendment is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

28.           Headings. The headings in this
Amendment are for convenience only, do not constitute a part of the Amendment
and shall not be deemed to limit or affect any of the provisions hereof.

29.           Filing of Form
8-K.  Within 3 Trading Days of the
date hereof, the Company shall file a Current Report on Form 8-K in a form reasonably
acceptable to counsel for the Purchasers disclosing the material terms of the
transactions contemplated hereby, which shall include this Amendment as an
attachment thereto.

30.           Independent Nature of Purchasers’
Obligations and Rights. The obligations of each Purchaser hereunder
are several and not joint with the obligations of any other Purchasers
hereunder, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser hereunder. Nothing contained herein
or in any other agreement or document delivered at any closing, and no action
taken by any Purchaser pursuant hereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Amendment. Each Purchaser shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this Amendment,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.

 10
 

 

31.           Construction of Amendment
with Transaction Documents.  To the
extent possible, this Amendment shall be read consistently with the Transaction
Documents and this Amendment and the Transaction Documents should be read
together as a whole.  To the extent such
documents are inconsistent, this Amendment shall control.

[SIGNATURE
PAGE FOLLOWS]

 11
 

 

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

 

	
  

  	
   

  	
  Address for Notice:

  
	
  ADVANCED CELL TECHNOLOGY, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William M.
  Caldwell, IV

  	
   

  	
  1201 Harbor Bay Parkway

  
	
   

  	
  Name: William M.
  Caldwell, IV

  	
   

  	
  Alameda, CA 94502

  
	
   

  	
  Title: Chief
  Executive Officer

  	
   

  	
   

  

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR HOLDER FOLLOWS]

 12
 

 

[HOLDER SIGNATURE
PAGES TO ACTC AMENDMENT]

IN
WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed
by their respective authorized signatories as of the date first indicated
above.

	
  Name of Purchaser: 

  	
   

  
	
   

  
	
  Signature
  of Authorized Signatory of Purchaser: 

  	
  *

  
	
   

  
	
  Name of
  Authorized Signatory: 

  	
   

  
	
   

  
	
  Title of
  Authorized Signatory: 

  	
   

  
	
   

  
				

 

*                    This
signature page has been executed by each Purchaser identified in the Purchase
Agreement

[SIGNATURE PAGES CONTINUE]

 13
 

 

EXHIBIT A

Securities
Purchase Agreement, dated as of September 15, 2005, by and among the Company
and the Purchasers (as defined therein)

Registration
Rights Agreement, dated as of September 15, 2005, by and among the Company and
the Purchasers (as defined therein)

Amortizing
Convertible Debenture issued by the Company to each of the Purchasers
identified in the Purchase Agreement listed above, each dated as of September
15, 2005

 14
 

 

EXHIBIT B

Form of Amendment
to 2006 Transaction Documents

 15
 

 

SCHEDULE
9(III)

Update to Disclosure
Schedules

 16

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