Document:

Exhibit
10.7

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS.  SUCH SECURITIES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
THE SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THIS NOTE IS SUBJECT TO SUBORDINATION
PROVISIONS SET FORTH HEREIN.

 

CONVERTIBLE PROMISSORY NOTE

(UNSECURED)

 

On July 1,
2006, for value received, ADVANCED CELL TECHNOLOGY, INC., a Nevada corporation
formerly known as A.C.T. Holdings, Inc. (herein referred to as “HOLDINGS”
or “Maker”), hereby promises to pay to the order of                                 ,
individually (the “Holder”), the principal sum of                                               
Dollars ($            ),
together with interest on said principal sum from the date hereof until paid in
full at the rate of 7.5% per annum (as adjusted as hereinafter set forth); provided,
however, in the event that, prior to July 1, 2006 (the “Payment
Date”), the Maker has paid hereunder to the Holder an amount in the aggregate
equal to                                                               
Dollars ($                    ) (the “Partial Payment”), the remaining
outstanding balance due under this Note (including principal and past due
interest)  shall not be due until January 15,
2007.    If this Note is not paid in full
on or before, (i) in the event that the Maker has not made the Partial
Payment, July 1, 2006, or (ii) in the event that the Maker has made
the Partial Payment, January 15, 2007, interest on the outstanding
balances due under this Note (including principal and past due interest) shall
thereafter accrue until paid in full, at the rate of 12.0% per annum.  Interest shall be calculated on the basis of
actual days elapsed and a 360-day year

 

This Note may
be prepaid in whole or in part at any time without penalty at the option of the
Maker hereof.

 

The Holder of this Note shall have the right,
but not the obligation to, from time to time, convert any part or all of the
outstanding principal and accrued interest hereunder from time to time into
shares of Common Stock and/or other securities issued by the Maker, as selected
by the Holder, at the Warrant Purchase Price (as defined in the Warrant),
pursuant to and in

 

 

accordance with the warrant
dated the date hereof issued by the Maker to the Holder titled “Warrant to
Purchase Securities of Advanced Cell Technology, Inc., a Nevada
corporation formerly known as A.C.T. HOLDINGS, Inc. or Successor”, a copy
of which is attached hereto (the “Warrant”) as Exhibit A, provided,
however, that in no event may Holder convert this Note into Senior
Indebtedness, as defined herein.

 

In order to exercise the conversion right,
the Holder shall provide written notice to the Maker of the portion of this
Note (which such portion must represent at least ten (10%) of the then
outstanding principal and interest) which the Holder elects to convert and
written instructions regarding the delivery of certificates for shares of stock
or other securities purchased thereby. 
The Holder shall, upon the delivery of the notice as provided herein
(and other documents required under the Warrant in connection with an exercise
thereunder), be deemed the holder of the stock or securities so purchased and
the amount of principal or interest hereunder so converted shall be credited to
payments of outstanding principal and/or interest under the Note in the order
as determined by the Holder.

 

All payments on account of principal and
interest hereof or conversion of principal and interest to shares or
securities, shall be recorded by Holder and, prior to any transfer hereof,
endorsed on the grid attached hereto as Exhibit B which is a part
of this Note.  The entries on the records
of the Holder (including any appearing on this Note) shall be prima  facie
evidence of amounts outstanding hereunder.

 

This Note shall, at the option of the Holder,
become immediately due and payable without notice or demand upon the occurrence
of any of the following events:

 

(a)           Failure
to make any payment hereunder when due;

 

(b)                                Any
warranty or representation made or furnished to the Holder by or on behalf of
any Maker or endorser hereof shall prove to have been false in any material
respect when made or furnished;

 

(c)                                 Occurrence
of any of the following with respect to any Maker or endorser hereof: admission
in writing of his or its inability, or be generally unable, to pay his or its
debts as they become due, death, dissolution, termination of existence,
cessation of normal business operations, insolvency, appointment of a receiver
of any part of the property of, legal or equitable assignment, conveyance or
transfer of property for the benefit of creditors by, or the commencement of

 

 

any proceedings under any bankruptcy or
insolvency laws by or against, such person; provided however, in the case of
the commencement of any such proceedings against such person, such person shall
have thirty (30) days from the date of the commencement of such proceedings to
dismiss such proceedings.

 

The Maker waives presentment, demand, notice
and protest and agrees to pay on demand all costs of the Holder in connection
with this Note (including reasonable attorneys’ fees and costs) including
without limitation, the preparation of, the enforcement of, the collection or
attempted collection of this Note.

 

Pursuant to the terms hereof, Holder agrees
that payment of the Note is expressly subordinated to the prior payment in full
of the Senior Indebtedness (as defined below). Until the occurrence of an event
of default with respect to the Senior Indebtedness, for which the Holder is
given a written notice by any holder of Senior Indebtedness, the Holder may
receive and the Maker shall make all regularly scheduled payments under this
Note.  Upon receipt of the default
notice, Holder may not, for a period of nine (9) months or earlier if the
default is remedied (the “Standstill Period”), (i) accelerate, ask,
demand, sue for, take or receive from or on behalf of the Maker, by set-off or
in any other manner, the whole or any part of any monies which may now or
hereafter be owing to the Holder on the Note, or (ii) initiate or
participate with others in any suit, action or proceeding against Maker to
collect the whole or any part of the Note receive any payments. In the event of
any commencement of any proceeding under any bankruptcy or insolvency laws by
or against Maker, of any other event or proceeding involving the Maker
affecting the rights of creditors, nothing herein shall prohibit the Holder
from filing a notice of claim and taking other actions as a creditor in
connection with proceedings provided that Holder shall be prohibited during the
Standstill Period from taking any actions which are inconsistent with the terms
of this subordination.  Immediately
following the expiration of the Standstill Period (or such earlier time where
the default is cured sooner), the Holder shall have all available rights and
remedies.  Holder agrees that, during the
Standstill Period, any amounts received from Maker during such period shall be
held in trust for and promptly paid over to any holder of Senior Indebtedness
entitled to receive such moneys in accordance with the priorities established
hereunder.  Notwithstanding anything
above to the contrary, the Holder may exercise his conversion rights hereunder
and all rights under the Warrant at any time and from time to time, even after
receipt of a default notice with respect to the Senior Indebtedness.

 

For purposes of this Note, “Senior
Indebtedness” shall mean all indebtedness, obligations and liabilities of Maker
(including, without limitation,

 

 

principal, interest, fees,
costs, expenses and reasonable attorneys’ fees), owed by Maker to any unrelated
third party creditor in connection with any equity or debt financings resulting
in proceeds in aggregate of more than $5,000,000 (and any renewals,
replacements, substitutions, amendments, modifications, refinancings or
refundings thereof (provided such renewals, replacements, substitutions,
amendments, modifications, refinancings or refundings are not in excess of the
outstanding principal and accrued interest, fees, costs and expenses due to
such creditor immediately prior to such event occurring) consummated by the
Company during the period commencing on the date hereof and ending on November 14,
2005.

 

Without the prior written consent of the
Company, the Holder may not assign this Note and any rights hereunder unless
the proposed assignee is an affiliate of the Holder, as such term is defined in
the Securities Act of 1933, as amended. 
The Holder may transfer this Note upon his death to his heirs, devisees,
executors, administrators and assigns.

 

This Note shall be governed by and construed
in accordance with the laws of the Commonwealth of Massachusetts.  If any provision of this Note is held to be
invalid or unenforceable, that provision shall be ineffective to the extent of
such prohibition or shall be modified to conform with applicable law, without
invalidating any other provisions of this Note. 
No ambiguity shall be ascribed to either party by virtue of its having
drafted any portion of this agreement and its attachments.  This document may be executed in duplicate
and a telefacsimile signature sheet and any signatures thereto shall be
considered as originals for all purposes.

 

The Maker shall pay all costs incurred by the
Holder in connection with the enforcement and collection of this Note
(including attorney’s fees) as provided in the Settlement Agreement dated the
date hereof between the Maker, Holder and others.

 

This Note may, at the option of Holder, be
enforced via an expedited binding arbitration under the auspices of the
Judicial Arbitration And Mediation Service (JAMS), under the JAMS streamlined
arbitration rules and procedures, which judgment shall be final,
non-appealable (except in cases of manifest arbitrator impropriety) and
enforceable in any court of competent jurisdiction.

 

 

EXECUTED as a
document under seal this 14th day of September, 2005.

 

	
   

  	
  MAKER:

  
	
   

  	
   

  
	
   

  	
  ADVANCED CELL TECHNOLOGY,

  INC., a Nevada corporation., formerly

  A.C.T. HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jonathon Atzen

  	
   

  	
  By:

  	
  /s/ William M. Caldwell, IV

  	
   

  
	
  Witness

  	
   

  	
  William M. Caldwell, IV

  
	
   

  	
   

  	
  Its Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Melissa LeBlanc

  	
   

  	
  By:

  	
  /s/ James Stewart

  	
   

  
	
  Witness

  	
   

  	
                         ,
  Its TreasurerExhibit
10.8

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS.  SUCH SECURITIES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
THE SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

WARRANT TO PURCHASE SECURITIES

OF

ADVANCED CELL TECHNOLOGY, INC.,
A NEVADA CORPORATION

FORMERLY KNOWN AS A.C.T. HOLDINGS, INC. or Successor

 

This certifies that                           ,
or his assigns (the “Holder”), for value received, is entitled to purchase from
Advanced Cell Technology, Inc., a Nevada corporation formerly known as
A.C.T. HOLDINGS, Inc., a Nevada corporation, or its Successor, as defined
herein (the “Company”), having a place of business at 381 Plantation Street,
Biotech V, Worcester, Massachusetts 01605,                                             (          ) fully paid and nonassessable shares of
common stock of the Company (“Common Stock”) or Preferred Stock (as defined
below), or Equity Units (as defined below) as applicable, for the Warrant
Purchase Price (as defined below).  For
purposes of this Warrant, the term “Preferred Stock” shall mean any shares of
preferred stock issued by the Company during the term of this Warrant.  The term “Equity Unit “ shall include Common
Stock or Preferred Stock, either alone or issued, offered or sold together as
an integrated investment unit with any warrants or similar non-debt securities
convertible or exchangeable, directly or indirectly into Common Stock or
Preferred Stock.

 

For purposes of this Warrant, in the event
this Warrant is being exercised for shares of Common Stock, the Warrant
Purchase Price per share shall be equal to Two and 20/100 Dollars ($2.20).  In the event this Warrant is being exercised
for shares of Preferred Stock or Equity Units, the Warrant Purchase Price for
such securities shall be equal to the Warrant Purchase Price for Common Stock
(as the same may be adjusted) times a multiple equal to the number of common
shares into which one Preferred Share or Equity Unit may be converted in
accordance with its terms.  In either
case, the Warrant Purchase Price shall be automatically adjusted to each lesser
amount, from time to time, as provided in Section 3
hereof.  For example, and solely for the
purposes of illustrating the foregoing calculation, in the event a share of
Preferred Stock that is convertible into two shares of Common Stock is sold by
the Company for $4.00, and the Warrant Purchase Price per share of Common Stock
immediately prior to the sale equaled $2.20, then the new Warrant Purchase
Price per share of Common Stock would equal $2.00  per share and the new Warrant Purchase Price
of Preferred Stock would equal $4.00 per share.

 

If, at any
time (and on each time) between May 1, 2005 and January 15, 2009 (the
“Pricing Period”), after the exercise of any or all of the
Warrants hereunder, the Company issues any Equity Units other than Excluded
Units (as defined below), and the effective per share purchase price of Common
Stock represented by such Equity Units (the

 

 

“Effective Price”) being issued
is lower than the Warrant Purchase Price paid in connection with such prior
exercise, then the Company shall issue to the Holder sufficient additional
Equity Units (of the same security(ies) that was (were) previously issued to
the Holder upon the previous exercise of the Warrant) such that the total
number of Equity Units issued to the Holder equals the number determined by multiplying
                        
by a fraction, the numerator of which is $2.20 and the denominator of which is
the Effective Price, as the same may be amended.

 

This Warrant
may be exercised at any time or from time to time up to and including 5:00 p.m.
(Pacific Standard Time) on January 15, 2009 (the “Expiration Date”), upon
surrender to the Company at its principal office (or at such other location as
the Company may advise the Holder in writing) of this Warrant properly
endorsed, and the payment (i) in cash or by check, or (ii) conversion
of outstanding amounts of principal and interest under the promissory note of
the Company in favor of the Holder dated September 14, 2005 in the
original principal amount of $            ,
of the aggregate purchase price for the number of Equity Units for which this
Warrant is being exercised determined in accordance with the provisions
hereof.  The Warrant Purchase Price and
the number of Equity Units purchasable hereunder are subject to further
adjustment as provided in Section 3 of this Warrant.

 

This Warrant is subject to the following
terms and conditions:

 

1.                                       EXERCISE;
ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES.

 

1.1                                 General.  This Warrant is exercisable at the option of
the holder of record hereof, at any time or from time to time, up to the
Expiration Date for all or any part of the shares of Common Stock and/or
Preferred Stock and/or Equity Units which may be purchased hereunder.  The Company agrees that the shares of Common
Stock and/or Preferred Stock and/or Equity Units purchased under this Warrant
shall be and are deemed to be issued to the Holder hereof as the record owner
of such Equity Units as of the close of business on the date on which this
Warrant shall have been surrendered, properly endorsed, the completed, executed
Form of Subscription (in the form attached hereto) delivered and payment
made for such Equity Units.  Certificates
for the shares of Common Stock or Preferred Stock so purchased, together with
any other securities or property to which the Holder hereof is entitled upon
such exercise, shall be delivered to the Holder hereof by the Company at the
Company’s expense within a reasonable time after the rights represented by this
Warrant have been so exercised.  In case
of a purchase of less than all the Equity Units which may be purchased under
this Warrant, the Company shall cancel this Warrant and execute and deliver a
new Warrant or Warrants of like tenor for the balance of the Equity Units
purchasable under the Warrant surrendered upon such purchase to the Holder
hereof within a reasonable time.  Each
stock certificate or other evidence of Equity Unit so delivered shall be in
such denominations as may be requested by the Holder hereof and shall be registered
in the name of such Holder.

 

1.2                                 Net
Issue Exercise.  Notwithstanding any
provisions herein to the contrary, if the fair market value of one share of the
Company’s Common Stock or

 

 

Preferred Stock is greater than
the Warrant Purchase Price (at the date of calculation as set forth below), in
lieu of exercising this Warrant for cash, the Holder may elect to receive
shares equal to the value (as determined below) of this Warrant (or the portion
thereof being cancelled) by surrender of this Warrant at the principal office
of the Company together with the properly endorsed Form of Subscription
and notice of such election in which event the Company shall issue to the
Holder a number of shares of Common Stock or Preferred Stock, as applicable,
computed using the following formula:

 

X = Y (A-B)/A

 

where

 

X =                             the
number of shares of Stock to be issued to the Holder

 

Y =                               the
number of shares of Stock purchasable under the Warrant or, if only a portion
of the Warrant is being exercised, the portion of the Warrant being canceled
(at the date of such calculation)

 

A =                             the
fair market value of one share of the Company’s Stock (at the date of such
calculation)

 

B =                              Warrant
Purchase Price (as adjusted to the date of such calculation).

 

For purposes of the above calculation, in the event that this formula
is applied to the non-publicly traded shares or Equity Units or instruments of
the Company or a successor, as defined below, the fair market value of each
such share and security of which an Equity Unit is comprised shall be
determined by the Company’s Board of Directors in good faith; provided, that
the Holders may appeal any such determination to an Arbitrator as provided for
herein.  Provided further, that in the
event that this formula is applied to the publicly-traded securities of the
Company or a Successor, as defined below, the greater of the volume-weighted
trading price on public markets, as published by Bloomberg or its successor
organization, or the average of the opening and closing public market prices on
the ten trading days preceding the date of exercise shall be the fair market
value.

 

Holder shall have the right to convert on a
cashless exchange basis to Equity Units on the same terms as Holder can convert
to Common Stock or Preferred Stock under this Section.

 

2.                                       SHARES
TO BE FULLY PAID; RESERVATION OF SHARES. 
The Company covenants and agrees that all shares of Common Stock and
Preferred Stock and any other securities that are components of Equity Units
which may be issued upon the exercise of the rights represented by this Warrant
will, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable and free from all preemptive rights of any shareholder and free
of all taxes, liens and charges with respect to the issue thereof.  The Company further covenants and agrees that,
during the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have

 

 

authorized and reserved, for
the purpose of issue or transfer upon exercise of the subscription rights
evidenced by this Warrant, a sufficient number of shares of authorized but
unissued Common Stock and Preferred Stock, or other securities and property,
when and as required to provide for the exercise of the rights represented by
this Warrant, as provided for by relevant accounting rules and statutes,
and as adjusted to an amount, from time
to time, as provided for herein.  The
Company will not take any action which would result in any adjustment of the
Warrant Purchase Price (as set forth in Section 3 hereof) if the total
number of shares of Common Stock and Preferred Stock (as applicable) issuable
after such action upon the conversion of all such shares of Common Stock and
Preferred Stock (as applicable), together with all shares of Common Stock and
Preferred Stock (as applicable) then issuable upon exercise of all options and
upon the conversion of all convertible securities then outstanding, would
exceed the total number of shares of Common Stock and Preferred Stock (as
applicable) then authorized by the Company’s Articles of Incorporation,
provided, however that the Company will use its best efforts to promptly cause
a special meeting of its directors and its then stockholders to be duly called
to approve an amendment to its Articles of Incorporation increasing the number
of shares of stock necessary to fulfill its obligations hereunder.

 

3.                                       ADJUSTMENT
OF WARRANT PURCHASE PRICE AND NUMBER OF SHARES. 
The Warrant Purchase Price shall be subject to decrease and the number
of shares purchasable upon the exercise of this Warrant shall be subject to
increase from time to time upon the occurrence of certain events and/or price
determinations described in this Section 3.  Upon each decrease of the Warrant Purchase
Price per share of Common Stock, if any, the Holder of this Warrant shall thereafter
be entitled to purchase, at the Warrant Purchase Price resulting from such
adjustment, the number of Equity Units obtained by multiplying the Warrant
Purchase Price per share of Common Stock in effect immediately prior to such
adjustment by the number of shares purchasable pursuant hereto immediately
prior to such adjustment, and dividing the product thereof by the Warrant
Purchase Price per share of Common Stock resulting from such adjustment.

 

3.1                                 Issues
of Equity Securities.  If and whenever during the Pricing Period, the
Company shall issue or agree to issue any Equity Units or other securities,
other than Excluded Units (as defined below), for a consideration per share or
providing for a conversion or an exercise price per share which is less than
the Warrant Purchase Price in effect immediately prior to such issue, the
Warrant Purchase Price shall be reduced to the per- share price applicable to such issuance. The fair market value of each such share
and security of which an Equity Unit is comprised shall be determined by the
Company’s Board of Directors in good faith; provided, that the Holders may
appeal any such determination to an Arbitrator as provided for herein.  Each
such adjustment of the Warrant Purchase Price shall be calculated to the
nearest one tenth of a cent. For the
purposes of this Subparagraph, the following clauses shall also be applicable:

 

(1)                                  Convertible Securities, Options, and Rights. If the Company shall issue any
stock, security, obligation, option, or other right which directly or
indirectly may be converted, exchanged, or satisfied in shares of Common Stock,
the maximum total number of shares of Common Stock issuable upon exercise of
such rights shall thereupon be deemed to have been issued and to be
outstanding, and the consideration

 

 

received by the Company therefor shall be deemed to include the sum of
the consideration received for the issue of such rights and the minimum
additional consideration payable upon the exercise of such rights. No further
adjustment shall be made for the actual issuance of Common Stock upon the
exercise of any such right.  If the
provisions of any such rights with respect to purchase price or shares
purchasable shall change or expire, any adjustment previously made hereunder
for such rights shall be readjusted to such as would have obtained on the basis
of the rights as modified by such change or expiration, but only to the extent
that Holder suffers no detriment thereby.

 

(2)                                  For
purposes of this Agreement, the term “Excluded Units” shall mean shares of
Common Stock or options therefore issued to, exercised or purchased by
directors, officers, employees or consultants of the Company in connection with
their service as directors of the Company, their employment by the Company or
their retention as consultants by the Company, in each case authorized by the
Board of Directors and issued pursuant to the Company’s 2004 Stock Option Plans
and 2005 Stock Incentive Plans or any other such option plan approved by vote
of a majority of the independent members of the Board of Directors of the
Company.

 

3.2                                 Subdivision
or Combination of Stock.  In case the
Company shall at any time subdivide its outstanding shares of Common Stock into
a greater number of shares, the Warrant Purchase Price in effect immediately
prior to such subdivision shall be proportionately reduced, and conversely, in
case the outstanding shares of Common Stock of the Company shall be combined
into a smaller number of shares, the Warrant Purchase Price in effect
immediately prior to such combination shall be proportionately increased in
each case so as to maintain the pre-subdivision or pre-combination value of
this Warrant.

 

3.3                                 Reorganization,
Reclassification, Consolidation, Merger or Sale.  If any recapitalization, reclassification or
reorganization of the capital stock of the Company, or any share exchange,
conversion, consolidation or merger of the Company with another corporation, or
the sale of all or substantially all of its assets or other transaction shall
be effected in such a way that holders of Common Stock shall be entitled to
receive stock, securities, or other assets or property (an “Organic Change”),
then, as a condition of such Organic Change, lawful and adequate provisions
shall be made by the Company whereby the Holder hereof shall thereafter have
the right to purchase and receive (in lieu of the shares of the Common Stock of
the Company immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby) such shares of stock, securities or
other assets or property as may be issued or payable with respect to or in
exchange for a number of outstanding shares of such Common Stock equal to the
number of shares of such stock immediately theretofore purchasable and
receivable upon the exercise of the rights represented hereby.  In the event of any Organic Change,
appropriate provision shall be made by the Company with respect to the rights
and interests of the Holder of this Warrant to the end that the provisions
hereof (including, without limitation, provisions for adjustments of the
Warrant Purchase Price and of the number of shares purchasable and receivable
upon the exercise of this Warrant) shall thereafter be applicable, in relation
to any shares of stock, securities or assets thereafter deliverable upon the
exercise hereof.  The Company will

 

 

not effect any such Organic
Change unless the corporation (if other than the Company) resulting from such
consolidation or the corporation purchasing such assets shall assume by written
instrument the obligation to deliver to such Holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
Holder may be entitled to purchase.

 

3.4                                 Certain
Events.  If any change in the outstanding
Common Stock of the Company or any other event occurs as to which the other
provisions of this Section 3 are not strictly applicable or if strictly
applicable would not fairly protect the purchase rights of the Holder of the
Warrant in accordance with such provisions, then the Board of Directors of the
Company shall make an adjustment in the number of and class of shares available
under the Warrant, the Warrant Purchase Price or the application of such
provisions, so as to protect such purchase rights aforesaid.  The adjustment shall be such as will give the
Holder of the Warrant upon exercise for the same aggregate Warrant Purchase
Price the total number, class and kind of shares as he would have owned had the
Warrant been exercised prior to the event and had he continued to hold such
shares until after the event requiring adjustment.

 

3.5                                 Notices
of Change.

 

(a)                                  Immediately
upon any adjustment in the number or class of shares subject to this Warrant
and of the Warrant Purchase Price, the Company shall give written notice
thereof to the Holder, setting forth in reasonable detail and certifying the
calculation of such adjustment.

 

(b)                                 The
Company shall give written notice to the Holder at least fifteen (15) business
days prior to the date on which the Company closes its books or takes a record
for determining rights to receive any dividends or distributions.

 

(c)                                  The
Company shall also give written notice to the Holder at least 30 business days
prior to the date on which an Organic Change shall take place; provided,
however, no such notice is required in the event the Organic Change involves a
merger or consolidation effected for the primary purpose of changing the State
of organization of the Company.

 

3.6                                 Certain
specific events.

 

Notwithstanding
anything above to the contrary, the Warrant Purchase Price shall automatically
be adjusted to each lesser amount, from time to time to the lowest price per
share issued in connection with a conversion, implicitly or explicitly, to any A.C.T. Group, Inc.
note holder, for the conversion of its notes into the equity of the Company or
equity plus warrants (“Note Conversion”), whenever such conversion occurs
during the Pricing Period.

 

 

4.                                       ISSUE
TAX.  The issuance of certificates for
securities that are components of Equity Units, including, but not limited to
shares of Common Stock upon the exercise of the Warrant shall be made without
charge to the Holder of the Warrant for any issue tax (other than any
applicable income taxes) in respect thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance and delivery of any certificate in a name
other than that of the then Holder of the Warrant being exercised.

 

5.                                       CLOSING
OF THE BOOKS.  The Company will at no
time close its transfer books against the transfer of any securities that are
components of Equity Units, including, but not limited to warrants or any
shares of Common Stock issued or issuable upon the exercise of any warrant in
any manner which interferes with the timely exercise of this Warrant.

 

6.                                       NO
VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY.  Nothing contained in this Warrant shall be
construed as conferring upon the Holder hereof the right to vote or to consent
as a shareholder of the Company or any other matters or any rights whatsoever
as a shareholder of the Company; provided, however that the Holder shall be
entitled to receive notice of any and all shareholder meetings and shall have
the right to attend and observe the same. 
No dividends or interest shall be payable or accrued in respect of this
Warrant or the interest represented hereby or the shares purchasable hereunder
until, and only to the extent that, this Warrant shall have been
exercised.  No provisions hereof and no
mere enumeration herein of the rights or privileges of the Holder hereof, shall
give rise to any liability of such Holder for the Warrant Purchase Price or as
a shareholder of the Company, whether such liability is asserted by the Company
or by its creditors.

 

7.                                       WARRANTS
NON-TRANSFERABLE. Without the prior written consent of the Company, this
Warrant and all rights hereunder (except for the rights under the Units issued
to Holder in connection with the exercise of this Warrant) may not be
transferred, in whole or in part, unless the proposed transferee is an
Affiliate of the Holder, as such term is defined in the Securities Act of 1933,
as amended.  The Holder may transfer this
Warrant upon his death to his heirs, devisees, executors, administrators and
assigns.

 

8.                                       RIGHTS
AND OBLIGATIONS SURVIVE EXERCISE OF WARRANT. 
The rights and obligations of the Company, of the Holder of this Warrant
and of the holder of shares of Common Stock issued upon exercise of this
Warrant, shall survive the exercise of this Warrant.

 

9.                                       MODIFICATIONS
AND WAIVER.  This Warrant and any
provision hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of the same
is sought.

 

10.                                 REGISTRATION
RIGHTS. Subject to any requirements, conditions or restrictions imposed upon
the Company in any financing consisting of the Senior

 

 

Indebtedness (as such term is
defined in the promissory note dated the date hereof of the Company in favor of
the Holder in the original principal amount of
               ),
the Company will use its best efforts to offer “piggyback” registration rights
with respect to the shares underlying this Warrant.

 

11.                                 NOTICES.  Any notice, request or other document
required or permitted to be given or delivered to the holder hereof or the
Company shall be delivered or shall be sent by certified mail, postage prepaid,
to each such holder at its address as shown on the books of the Company or to
the Company at the address indicated therefor in the first paragraph of this
Warrant or such other address as either may from time to time provide to the
other. The Holder’s address at the date hereof is:

 

12.                                 BINDING
EFFECT ON SUCCESSORS.  This Warrant shall
be binding upon any corporation succeeding the Company by share exchange,
conversion, merger, consolidation or acquisition of all or substantially all of
the Company’s assets (a “Successor”). 
All of the obligations of the Company relating to the securities that
are components of Equity Units, including, but not limited to Common Stock
issuable upon the exercise of this Warrant shall survive the exercise and
termination of this Warrant.  All of the
covenants and agreement of the Company shall inure to the benefit of the successors
and assigns of the holder hereof.

 

13.                                 DESCRIPTIVE
HEADINGS AND GOVERNING LAW.  The
description headings of the several sections and paragraphs of this Warrant are
inserted for convenience only and do not constitute a part of this Warrant.  This Warrant shall be construed and enforced
in accordance with, and the rights of the parties shall be governed by, the
laws of the Commonwealth of Massachusetts.

 

14.                                 LOST
WARRANTS.  The Company represents and
warrants to the Holder hereof that upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of
this Warrant and, in the case of any such loss, theft, or destruction, upon
receipt of an indemnity reasonably satisfactory to the Company, or in the case
of any such mutilation upon surrender and cancellation of such Warrant, the
Company, at its expense, will make and deliver a new Warrant, of like tenor, in
lieu of the lost, stolen, destroyed or mutilated Warrant.

 

15.                                 AMBIGUITY.  No ambiguity shall be ascribed to either
party by virtue of its having drafted any portion of this agreement.

 

16.                                 ARBITRATION.  This Warrant and any determination of fair
market value made by the Company’s Board of Directors may, at the option of the
Holder, be enforced via an expedited binding arbitration under the auspices of
the Judicial

 

 

Arbitration Mediation Services
(JAMS), under the JAMS streamlined arbitration rules and procedures, which
judgment shall be final, non-appealable (except in cases of manifest arbitrator
impropriety) and enforceable in any court of competent jurisdiction.

 

17.                                 REMEDIES.  The Company stipulates that the remedies at
law of the Holder of this Warrant in the event of any default or threatened
default by the Company in the performance of or compliance with any of the
terms of this Warrant are not and will not be adequate, and that such terms may
be specifically enforced by a decree for the specific performance of any
agreement contained herein or by an injunction against a violation of any of
the terms hereof or otherwise.

 

[Signature page to follow]

 

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to be duly executed under seal by its officer, thereunto duly
authorized as of this 14th day of September, 2005.

 

	
   

  	
  ADVANCED CELL TECHNOLOGY,

  INC., A NEVADA CORPORATION

  FORMERLY KNOWN AS A.C.T.

  HOLDINGS, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  M. Caldwell, IV

  
	
   

  	
   

  	
  William M.
  Caldwell, IV

  
	
   

  	
   

  	
  Its Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Stewart

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ATTEST:

  
	
   

  	
   

  
	
   

  	
  /s/ Jonathon Atzen

  	
   

  
	
   

  	
  Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]