Document:

Exhibit 10.97

AMENDMENT NO. 
1

TO

SECURITIES
PURCHASE AGREEMENT, AMORTIZING CONVERTIBLE DEBENTURE AND REGISTRATION RIGHTS
AGREEMENT

(2006 Financing)

This
Amendment No. 1 (this “Amendment”) to the Securities Purchase Agreement
(the “Purchase Agreement”), the Amortizing Convertible Debenture (the “Debenture”),
and the Registration Rights Agreement (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.

Preliminary
Statement:

WHEREAS, pursuant to the
Purchase Agreement, the Purchasers were issued Debentures in the aggregate
original principal amount of $10,981,250 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 Transaction Documents.

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.             Amendments
to Section 2 of the Registration Rights Agreement.  The Purchasers acknowledge and agree that the
Company may withdraw the pending Registration Statement provided that the new
Filing Date for the initial Registration Statement shall be the later of (i)
the 10th Trading Day following the date hereof and (ii)
January 19, 2007 and each Registration Statement thereafter shall be subject to
the amended terms of the Registration Rights Agreement as set forth hereunder.

 

 

Section 2(a) of the Registration Rights Agreement is
hereby deleted in its entirety and replaced with the following:

            “(a)  On or prior to each Filing Date, subject to
Section 3(c), the Company shall prepare and file with the Commission a “Shelf”
Registration Statement covering the resale of 130% of the Registrable
Securities on such Filing Date for an offering to be made on a continuous basis
pursuant to Rule 415; provided, however, that if 130% of the
unregistered Registrable Securities hereunder shall equal or exceed 30% of the
issued and outstanding Common Stock of the Company on the actual filing date of
a Registration Statement less any shares of Common Stock then held by
Affiliates of the Company (“Registration Cap”), such Registration
Statement shall register a number of shares of Common Stock which is equal to
the then Registration Cap minus 10,000 shares of Common Stock (subject to
reverse and forward stock splits and the like), and the remaining Registrable
Securities shall be subject to Section 3(c). 
In such event, the number of Registrable Securities to be registered for
each Holder shall be reduced pro-rata among all Holders and each Holder shall
have the right, upon written notice from the Company, to designate which of its
Registrable Securities shall be omitted from the initial Registration
Statement; provided, however, in the event that, prior to the 4th Trading Day following the date of such notice,
any such Holder fails to notify the Company in writing which Registrable
Securities it desires to omit, the Company shall have the right to make such
determination in its sole discretion. 
The Registration Statement shall be on Form S-3 (except if the Company
is not then eligible to register for resale the Registrable Securities on Form
S-3, in which case such registration shall be on another appropriate form in
accordance herewith) and shall contain (unless otherwise directed by the
Holders) substantially the “Plan of Distribution” attached hereto as Annex
A.  Subject to the terms of this
Agreement, the Company shall use its best efforts to cause a Registration
Statement to be declared effective under the Securities Act as promptly as
possible after the filing thereof, and in any event not more than 60 days from
the applicable Filing Date, and shall use its best efforts to keep such
Registration Statement continuously effective under the Securities Act until
all Registrable Securities covered by such Registration Statement have been
sold or may be sold without volume restrictions pursuant to Rule 144(k) as
determined by the counsel to the Company pursuant to a written opinion letter
to such effect, addressed and acceptable to the Company’s transfer agent and
the affected Holders (the “Effectiveness Period”).  Notwithstanding anything herein to the
contrary, the Company shall continue to use best efforts to register all
Registrable Securities as promptly as possible and if counsel to a Holder of
Registrable Securities not then registered, in its reasonable judgment advises
the Company in writing that such filing may be made with shares in excess of
the Registration Cap, the Company shall seek to promptly register Registrable
Securities in excess of the Registration Cap; provided that the Company shall
only be required to honor such a request not more than once in any 120 day
period.  Failure to use best efforts to
honor such a request shall be deemed an Event. 
The Company shall telephonically request effectiveness of a Registration
Statement as of 5:00 pm Eastern Time on a Trading Day.   The Company shall immediately notify the
Holders via facsimile or electronic mail of the effectiveness of a Registration
Statement on the same Trading Day that the Company telephonically confirms
effectiveness with the Commission, which shall be the date requested for
effectiveness of a Registration Statement. 
The Company shall, by 9:30 am Eastern Time 

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on
the Trading Day after the Effective Date (as defined in the Purchase
Agreement), file a Form 424(b)(5) with the Commission.  Failure to so notify the Holder within 1
Trading Day of such notification shall be deemed an Event under Section 2(b).”

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

“(b) If: (i) a Registration
Statement is not filed on or prior to its Filing Date (if the Company files a
Registration Statement without affording the Holders the opportunity to review
and comment on the same as required by Section 3(a), the Company shall not be
deemed to have satisfied this clause (i)), or (ii) the Company fails to file
with the Commission a request for acceleration in accordance with Rule 461
promulgated under the Securities Act, within five Trading Days of the date that
the Company is notified (orally or in writing, whichever is earlier) by the
Commission that a Registration Statement will not be “reviewed,” or not subject
to further review, or (iii) prior to its Effectiveness Date, the Company fails
to file a pre-effective amendment and otherwise respond in writing to comments
made by the Commission in respect of such Registration Statement within 10
calendar days after the receipt of comments by or notice from the Commission
that such amendment is required in order for a Registration Statement to be
declared effective, or (iv) a Registration Statement is not declared effective
within 60 days the date such Registration Statement was initially filed with
the Commission, or (v) after the Effective Date of a Registration Statement,
such Registration Statement ceases for any reason to remain continuously
effective as to all Registrable Securities for which it is required to be
effective, or the Holders are not permitted to utilize the Prospectus therein
to resell such Registrable Securities for 10 consecutive calendar days but no
more than an aggregate of 15 calendar days during any 12-month period (which
need not be consecutive Trading Days) (any such failure or breach being
referred to as an “Event”,
and for purposes of clause (i) or (iv) the date on which such Event occurs, or
for purposes of clause (ii) the date on which such five Trading Day period is
exceeded, or for purposes of clause (iii) the date which such 10 calendar day
period is exceeded, or for purposes of clause (v) the date on which such 10 or
15 calendar day period, as applicable, is exceeded being referred to as “Event Date”), then in addition
to any other rights the Holders may have hereunder or under applicable law, on
each such Event Date and on each monthly anniversary of each such Event Date
(if the applicable Event shall not have been cured by such date) until the
applicable Event is cured, the Company shall pay to each Holder an amount in
cash, as partial liquidated damages and not as a penalty, equal to 1.5% of the
aggregate purchase price paid by such Holder pursuant to the Purchase Agreement
for any Registrable Securities then held by such Holder.  If the Company fails to pay any partial
liquidated damages pursuant to this Section in full within seven days after the
date payable, the Company will pay interest thereon at a rate of 18% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law)
to the Holder, accruing daily from the date such partial liquidated damages are
due until such amounts, plus all such interest thereon, are paid in full. The
partial liquidated damages pursuant to the terms hereof shall apply on a daily
pro-rata basis for any portion of a month prior to the cure of an Event.”

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3.             Covenant to Maintain Monthly
Cash Burn Rate below $1.3 Million.  From December 2006 until the earlier of (i)
all shares of Common Stock underlying the Debentures are registered pursuant to
a then-effective Registration Statement or are immediately tradable pursuant to
Rule 144(k), or (ii) the Debentures are no longer outstanding, the Company
shall not make cash expenditures in excess of $1.3 million in any calendar
month (the “Burn Rate Cap”); provided, however the following cash expenditures
shall not be included when calculating the Burn Rate Cap: (i) cash expenditures
made with respect to collaboration, licensing, joint venture or other
agreements approved by the Board of Directors of the Company on or after the
date hereof, (ii) extraordinary one-time cash expenditures that are not
recurring on a month-to-month basis, or (iii) redemptions or other repayment of
any amounts with respect to securities issued under the Purchase Agreement or
under the Securities Purchase Agreement, dated September 15, 2005 by and among
the Company and the Purchasers (as defined therein).  Within 3 Trading Days of a request by a
Purchaser, the chief executive officer shall provide a written representation
to such Purchaser that such limit has been met along with supporting
documentation if requested by such Purchaser. 

4.             Amendments to Section 3 of the
Registration Rights Agreement

Section 3(a) of the
Registration Rights Agreement is hereby deleted and replaced in its entirety
with the following:

“(a)  Not less than five Trading Days prior to the
filing of each Registration Statement or any related Prospectus or any
amendment or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference), the Company
shall, (i) furnish to counsel designated by 51% of the Holders all such
documents proposed to be filed, which documents (other than those incorporated
or deemed to be incorporated by reference) will be subject to the review of
such Holders, and (ii) cause its officers and directors, counsel and
independent certified public accountants to respond to such inquiries as shall
be necessary, in the reasonable opinion of respective counsel to conduct a
reasonable investigation within the meaning of the Securities Act. The Company
shall not file a Registration Statement or any such Prospectus or any
amendments or supplements thereto to which the Holders of a majority of the
Registrable Securities shall reasonably object in good faith, provided that,
the Company is notified of such objection in writing no later than 5 Trading
Days after the Holders have been so furnished copies of such documents. Each
Holder agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex B (a “Selling Shareholder Questionnaire”)
not less than two Trading Days prior to the Filing Date or by the end of the
fourth Trading Day following the date on which such Holder receives draft
materials in accordance with this Section.”

Section 3(c) of the
Registration Rights Agreement is hereby deleted and replaced in its entirety
with the following:

 “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, then the Company shall file as soon as reasonably practicable but in
any case prior to the applicable Filing Date, an additional Registration
Statement 

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covering
the resale by the Holders of not less than 130% of the number of such
Registrable Securities. In addition, in the event that all Registrable
Securities are not included in a Registration Statement as contemplated by the
proviso regarding Registrable Securities in Section 2(a) above, then, upon the
written request of Holders holding at least 10% of the then outstanding
Registrable Securities, the Company shall file as soon as reasonably
practicable, but in no event earlier than 6 months from the Effective Date of
the preceding Registration Statement (unless counsel to a Holder of Registrable
Securities not then registered, advises the Company in writing that such filing
may be made sooner, in its reasonable judgment, in which case such filing will
be made within 30 days of such request; provided that the Company shall not be
required to honor such a request more than once in any 120 day period), an
additional Registration Statement covering the resale by the Holders of not
less than the difference between 130% of the Registrable Securities and the
number of Registrable Securities in prior Registration Statements, subject to
Registration Cap proviso in Section 2(a).”

5.             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:

“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 (as defined below), 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 

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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.”

6.             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.

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, or the shares issuable pursuant to the portion of this Debenture
in question, may be immediately resold 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 

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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
Monthly Redemption Date in Section 1 of the Debenture. The definition of “Monthly
Redemption Date” set forth in Section 1 of the Debenture is hereby deleted and
replaced in its entirety with the following:

“Monthly
Redemption Date” means the 1st of each month, commencing on September 7,
2007 and ending upon the full redemption of this Debenture.

9.             Amendment to the Definition of
Monthly Redemption Conversion Price in Section 6(b) of the Debenture.  The definition of “Monthly Redemption
Conversion Price” set forth in Section 6(b) of the Debenture is hereby amended
and restated as follows:

“. . . the lesser of (i) the then Conversion Price
and (ii) 70% of the average of the 10 Closing Prices immediately prior to the
applicable Monthly Redemption Date (subject to adjustment for any stock
dividend, stock split, stock combination or other similar event affecting the
Common Stock during such 10 Trading Day period)”

10.           Amendment to the Definition of
Pre-Redemption Conversion Shares in Section 6(b) of the Debenture.  The definition of “Pre-Redemption Conversion
Shares set forth in Section 6(b) of the Debenture is hereby amended and
restated as follows:

“.
.. . the quotient of (x) the applicable Monthly Redemption Share Amount divided
by (y) the lesser of (i) the then Conversion Price and (ii) 70% of the average
of the 10 Closing Prices immediately prior to the 5th Trading Day immediately prior to the
applicable Monthly Conversion Period (subject to adjustment for any stock
dividend, stock split, stock combination or other similar event affecting the
Common Stock during such 10 Trading Day period)”

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

“ix.          The Company shall fail to cause a
Registration Statement to be declared effective under the Securities Act within
120 days of the date such Registration Statement is filed with the Commission;”

Section 8 x. of the
Debenture is hereby deleted in its entirety and replaced 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 

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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 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 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 2005 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.

13.           Conditions to Company Obligations.  The Company’ obligations hereunder 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 2005 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 2005
Purchase Agreement).

 

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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 as of September 7, 2007,
the Underlying Shares will be 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 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 

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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:

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 

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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 Agreement, 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 September 15, 2005, 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 AGREEMENTS, 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, 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 

 11
 

 

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
AGREEMENTS 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-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, it being understood
that both parties need not sign the same counterpart.  This Amendment shall be deemed to take effect
as of the original date of the Securities Purchase Agreement.  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.

 12
 

 

 

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 2 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.  Additionally,
upon the written request of any Purchaser the Company shall file, within 5
Trading Days of such request, a Current Report on Form 8-K disclosing the
number of shares of Common Stock issued and outstanding as of a date within 5
Trading Days of such filing; provided, however, in no event shall
the Company be obligated to make more than 1 such filing in any 30 day period.

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.

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]

 13
 

 

 

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]

 14
 

 

 

[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]

 15
 

 

 

EXHIBIT A

Securities
Purchase Agreement, dated as of August 30, 2006, by and among the Company and
the Purchasers (as defined therein)

Registration
Rights Agreement, dated as of August 30, 2006, 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
6, 2006

 16
 

 

 

EXHIBIT B

Form of Amendment
to 2005 Transaction Documents

 17
 

 

 

SCHEDULE
9(III)

Update to
Disclosure Schedules

 

 18Exhibit 4.1

    Exhibit
      4.1

     

    
      	
              C-O

            	
               

              Incorporated
                under the laws of the State of Nevada

               

            	 
	
               

              Phoenix
                International Ventures, Inc.

               

              50,000,000
                Shares $.001 Par Value
Common Stock

               

               

                      This
                is
                to certify
                that                          
                SPECIMEN                                             is
                the owner of 

                      _____________________________________________________________________________________

                  

                                      Fully
                Paid and
                Non-Assessable Shares of Common Stock of

               

                                          Phoenix
                International Ventures, Inc.

               

                      Transferable
                only on the books of the Corporation by the holder thereof in person
                or by
                a duly authorized    

                      Attorney
                upon
                surrender of the Certificate properly endorsed.

               

                      

                      Witness,
                the Seal of the Corporation and the signatures of its duly authorized
                officers.

                      Dated

               

                      ________________________________            _____________________________________

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