Document:

Exhibit 10.41

 

EMPLOYMENT
AGREEMENT

 

Advanced Cell Technology Holdings, Inc.,
and its wholly owned subsidiary (collectively referred to as “ACT”) desire to
retain the services of James G. Stewart (“STEWART”) in the capacity of Senior
Vice President Finance and Chief Financial Officer; and STEWART desires to
provide his services to ACT in that capacity. 
Accordingly, for and in consideration of the commitments set forth
herein, ACT and STEWART agree as follows:

 

1.                                      Position and Duties

 

ACT agrees to employ STEWART in the position of
Senior Vice President of Finance and Chief Financial Officer (CFO).  STEWART shall report to the Chief Executive
Officer (CEO) of ACT, and shall perform any and all duties now or hereafter
assigned to STEWART by the CEO of ACT, as well as any other duties consistent
with the position of CFO.  STEWART shall
abide by ACT’s rules, regulations, and practices as they may from time-to-time
be adopted or modified.

 

2.                                      Compensation

 

A.                                    Annual Salary.  STEWART’s annual
salary shall be two hundred thirty five thousand dollars ($235,000.00).  Not withstanding the aforementioned, until
such time as ACT has raised $10 million in investment capital, STEWART will be
paid at the reduced rate of one hundred eighty five thousand dollars ($185,000)
annually.  After ACT has raised $10
million in capital, STEWART will be paid the difference between his annual
salary and cash paid pursuant to this employment agreement.  STEWART’s salary shall be paid in equal
bi-monthly installments, consistent with ACT’S regular pay practices.  STEWART’s salary may be adjusted from
time-to-time by ACT without affecting this Agreement.

 

B.                                    Bonus:  Upon the
successful completion of his job responsibilities, in addition to his Annual
Salary, STEWART shall be eligible to receive an annual bonus that will be
determined by the CEO and the Board of Directors in their sole and absolute
discretion.

 

C.                                    Expenses:  ACT shall
reimburse STEWART for reasonable travel and other business expenses incurred by
STEWART in the performance of his duties hereunder.  If it is determined that the company will
locate their headquarters outside of Southern California, the company will pay
for Stewart’s reasonable moving expenses pre-approved by the CEO.  Such moving expenses will include costs incurred
on the sale of his home, purchase of his new home, and direct moving expenses,
provided that no “points” will be reimbursed in connection with the purchase of
a home and ACT shall bear no responsibility or financial obligation for losses
incurred upon the sale of STEWART’s property. 
ACT will tax equalize any reimbursements to STEWART deemed to be taxable
income to ensure that actual out of pocket cash costs related to relocation are

 

 

reimbursed. 
STEWART may elect to wait until the company has raised $10 million in
new capital before relocating.  If this
decision is made by Stewart, the company will pay for commuting and reasonable
per diem costs until such time as the above requirement is achieved.

 

3.                                      Benefits

 

STEWART shall be entitled to receive benefits
under the following benefit plans: group life insurance; medical insurance;
disability insurance, and 401K/retirement plan. 
ACT may modify, amend or terminate any or all such benefit plans at any
time.  STEWART's rights under any benefit
plans now in force or later adopted by ACT shall be governed solely by the
terms of the particular benefit plan.  In
addition, STEWART shall be entitled to the following:

 

A.                         Vacation:  Three (3) weeks
per year.

B.                           Sick Days: Ten (10) days per year.

 

4.                                      Stock Options

 

In connection with a Consulting Agreement between
STEWART and ACT dated January 14, 2005, ACT has previously granted STEWART
an option to purchase the Company’s Common Stock (the “Option”) under the
Company’s employee Stock Option Plan (the “Plan”) in an amount equal to 400,000 of
the Company’s outstanding shares (inclusive of option reserve and warrants).  The Options will vest over forty eight (48)
months as follows: 5% of the shares are vested pursuant to the Consulting
Agreement as of the Employment Date and thereafter 1/48th of the remaining number of shares will
vest at the end of each full month of employment.  Vesting will depend on STEWART’s continued
employment with the Company and will be subject to the terms and conditions of
the Plan and a Stock Option Agreement.  Except
as specifically set forth in this Section 4, STEWART’s rights under the
Plan, or any other stock option plan later adopted by ACT, shall be governed
solely by the terms of the Plan, or the later adopted stock option plan.

 

Notwithstanding the foregoing: (i) upon a
Change in Control (as defined in the Plan), the vesting of fifty percent (50%)
of the then un-vested portion of the Option and any other outstanding equity
awards will be accelerated.

 

5.                                      Competitive Activities

 

During the term of STEWART’s employment with ACT
and for one (1) year thereafter, you shall not, for himself or any third
party, directly or indirectly (a) divert or attempt to divert from ACT any
business of any kind, including, without limitation, the solicitation of or
interference with any of its members, sponsors, employees, volunteers, officers
or directors, (b) employ, solicit for employment or recommend for
employment any person employed by ACT, or (c) engage in the formation or
promotion of, or be employed by, any entity that is competitive with ACT.
STEWART acknowledges that there is a substantial likelihood that the activities
described in this Section 5 would involve the unauthorized use or
disclosure of the ACT’s Proprietary Information and that use or disclosure
would be extremely difficult to detect. STEWART has accepted the limitations of
this Section 5 as a reasonably practicable and unrestrictive means of
preventing such use or disclosure.

 

2

 

6.                                      Inventions/Intellectual
Property Belong to ACT

 

Any and all inventions, discoveries, improvements
or intellectual property which STEWART has conceived or made or may conceive or
make during the period of employment relating to or in any way pertaining to or
connected with the systems, products, apparatus, or methods employed,
manufactured, constructed or researched by ACT shall be the sole and exclusive
property of ACT.

 

The obligations provided for by this Agreement,
except for the requirements as to disclosure in paragraph 7, do not apply to
any rights STEWART may have acquired in connection with an invention,
discovery, improvement or intellectual property for which no equipment,
supplies, facility, or trade secret information of the ACT was used and which
was developed entirely on the STEWART’s own time and (a) which does not
relate directly or indirectly to the business of ACT or to ACT’s actual or
demonstrable anticipated research or development, or (b) which does not
result from any work performed by STEWART for ACT.

 

7.                                      Disclosure of Inventions

 

STEWART agrees to disclose promptly to ACT all
such improvements, discoveries, or inventions which STEWART has made or may
make solely, jointly, or commonly with others, and to assign as appropriate
such improvements, discoveries, inventions or intellectual property to ACT,
where the rights are the property of ACT, and agrees to execute and sign any
and all applications, assignments, or other instruments which ACT may deem
necessary in order to enable it, at its expense, to apply for, prosecute, and
obtain Letters Patent of the United States or foreign countries for said
improvements, discoveries, inventions or intellectual property, or in order to
assign or convey to or vest in ACT the sole and exclusive right, title, and
interest in and to said improvements, discoveries, inventions, or patents.

 

This paragraph is applicable whether or not the
invention, discovery, improvement or intellectual property was made under the
circumstances described in paragraph 6.  STEWART
agrees to make such disclosures understanding that they will be received in
confidence and that, among other things, they are for the purpose of
determining whether or not rights to the related invention, discovery,
improvement or intellectual property is the property of ACT.

 

8.                                      Confidential and Proprietary
Information

 

During his employment, STEWART will have access to
confidential information relating to such matters as ACT’s trade secrets,
systems, procedures, manuals, products, and clients.  For purposes of this Agreement, “confidential
information” means all information and ideas, in any form, relating in any
manner to the business of ACT or its clients, unless: (1) the information
is or becomes publicly known through lawful means; (ii) the information
was rightfully in STEWART’s possession prior to his employment with ACT; or (iii) the
information is disclosed

 

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to STEWART without a confidential restriction by a
third party who rightfully possesses the information and did not obtain it,
either directly or indirectly, from ACT.

 

STEWART understands and agrees that all
confidential information will be kept confidential by STEWART both during and
after his employment under this Agreement. STEWART further agrees that he will
not, without the prior written approval by ACT, disclose such confidential
information, or use such confidential information in any way, either during the
term of this Agreement or at any time thereafter, except as required in the
course of his employment.

 

9.                                      Termination of Employment

 

STEWART understands and agrees that his employment
has no specific term.  This Agreement,
and the employment relationship, may be terminated by either party with or
without cause upon thirty (30) days written notice to the other.  Except as otherwise agreed in writing or as
otherwise provided in this Agreement, upon termination neither ACT nor STEWART
shall have any further obligation to each other by way of compensation or
otherwise.

 

10.                               Separation Benefits.  Upon termination of STEWART’s employment with
the Company for any reason, STEWART will receive payment for all unpaid salary
and vacation accrued as of the date of his termination of employment, and his
benefits will be continued under the ACT’s then existing benefit plans and
policies for so long as provided under the terms of such plans and policies and
as required by applicable law.  Under
certain circumstances, and conditioned in each case upon STEWART’s execution of
a release and waiver of claims against ACT, its officers and directors, STEWART
will also be entitled to receive severance benefits as set forth below, but STEWART
will not be entitled to any other compensation, award or damages with respect
to your employment or termination.

 

(a)                                  Definitions.  For purposes of
this Section 10, the following definitions shall apply: “Disability” shall mean STEWART’s complete inability
to perform his job responsibilities for a period of one hundred eighty (180)
consecutive days or one hundred eighty (180) days in the aggregate in any
twelve (12) month period.  “Cause” means: (i) the failure to properly
perform STEWART’s job responsibilities, as determined reasonably and in good
faith by the Board; (ii) commission of any act of fraud, gross misconduct
or dishonesty with respect to the Company; (iii) conviction of, or plea of
guilty or “no contest” to, any felony, or a crime involving moral turpitude; (iv) breach
of any proprietary information and inventions agreement with the Company; or (v) failure
to follow the lawful directions of the Board.

 

(b)                                  Termination for Cause,
Death, Disability, or Resignation.  In the event of STEWART’s
termination for “Cause”, termination for death or “Disability,” or his
Resignation STEWART will not be entitled to any cash severance benefits or
additional vesting of any Company equity awards, including Company stock
options.

 

(c)                                  Termination Without Cause.  In
the event of STEWART’s termination without “Cause,” he will be entitled to (i) a
lump sum payment in an amount equal to six (6) months base salary, subject
to such payroll deductions and withholdings as are required by

 

4

 

law; and (ii) accelerated vesting of fifty
percent (50%) of the then-unvested shares subject to the Option.

 

(d)                                  Change of Control.  In the event of STEWART’s termination
without “Cause” within twelve (12) months following a Change in Control, in
lieu of the benefits set forth in subsection (c) above, you will be
entitled to (i) a lump sum payment in an amount equal to six (6) months
base salary, subject to such payroll deductions and withholdings as are
required by law; and (ii) accelerated vesting of one-hundred percent
(100%) of the then-unvested shares subject to the Option.  For purposes of this section, change in
control shall mean purchase of more than 50% of the outstanding securities of
ACT where the acquiring shareholders change, or control, a majority of the
Board of Directors of ACT.  In addition,
if following a change in control, STEWART’s principal role or responsibilities
are diminished, or he is asked to move geographical location, such events would
be deemed to be a Termination without Cause for purposes of this agreement.

 

11.                               Turnover on Termination

 

STEWART agrees that on or before termination of
employment, he will return to ACT all originals and copies of all or any part
of:

 

a.                                       Lists and sources
of clients;

 

b.                                      Proposals to
clients or drafts of proposals;

 

c.                                       Reports, job
notes, specifications, and drawings pertaining to clients;

 

d.                                      Any and all other
things, equipment, and written materials obtained by STEWART during the course
of employment from ACT or any client of ACT.

 

e.                                       Any and all
inventions or intellectual property developed by STEWART during the course of
employment.

 

12.                               Arbitration

 

Except for injunctive proceedings against
unauthorized disclosure of confidential information, any and all claims or
controversies between ACT and STEWART, including but not limited to (1) those
involving the construction or application of any of the terms, provisions, or
conditions of this Agreement; (2) all contract or tort claims of any kind;
and (3) any claim based on any federal, state or local law, statute,
regulation or ordinance, including claims for unlawful discrimination or
harassment, shall be settled by arbitration in accordance with the then current
Employment Dispute Resolution Rules of the American Arbitration
Association. Judgment on the award rendered by the arbitrator(s) may be entered
by any court having jurisdiction thereof. 
The location of the arbitration shall be San Francisco, California.  Unless the parties mutually agree otherwise,
the arbitrator shall be a retired judge selected from a panel provided by the
American Arbitration Association, or the Judicial Arbitration and Mediation
Service (JAMS).

 

5

 

ACT shall pay the arbitrators fees and costs.  Each party shall pay for its own costs and
attorneys’ fees, if any.  However, if any
party prevails on a statutory claim which affords the prevailing party
attorneys’ fees, the arbitrator may award reasonable attorneys’ fees and costs
to the prevailing party.

 

STEWART UNDERSTANDS AND AGREES THAT THIS AGREEMENT
TO ARBITRATE CONSTITUTES A WAIVER OF HIS RIGHT TO A TRIAL BY JURY OF ANY MATTERS
COVERED BY THE ARBITRATION AGREEMENT.

 

13.                               Severability

 

In the event that any of the provisions of this
Agreement shall be held to be invalid or unenforceable in whole or in part,
those provisions to the extent enforceable and all other provisions shall
nevertheless continue to be valid and enforceable as though the invalid or
unenforceable parts had not been included in this Agreement.  In the event that any provision relating to
the time period of restriction shall be declared by a court of competent
jurisdiction to exceed the maximum time period such court deems reasonable and
enforceable, then the time period of restriction deemed reasonable and
enforceable by the court shall become and shall thereafter be the maximum time
period.

 

14.                               Agreement Read and
Understood

 

STEWART acknowledges that he has carefully
read the terms of this Agreement, that he has had an opportunity to consult
with a representative of his own choosing regarding this Agreement, that he
understands the terms of this Agreement, and that he is entering this agreement
of his own free will.

 

15.                               Complete Agreement,
Modification

 

This Agreement is the complete agreement between
the parties on the subjects contained herein and supersedes all previous
correspondence, promises, representations, and agreements, if any, either
written or oral, including, but not limited to, the Consulting Agreement
between Stewart and ACT dated January 14, 2005.  No provision of this Agreement may be
modified except by a written document signed both by the ACT and STEWART.  STEWART understands and agrees that he will
be required by the Company to execute a comprehensive Proprietary Information
Agreement.

 

16.                               Governing Law

 

This Agreement shall be construed and enforced
according to the laws of the State of California.

 

6

 

	
  Dated:

  	
  3/13/05

  	
   

  	
  /s/ James G. Stewart

  	
   

  
	
   

  	
   

  	
   

  	
  James G. Stewart

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  3/13/05

  	
   

  	
  /s/ William M. Caldwell

  	
   

  
	
   

  	
   

  	
   

  	
  Advanced Cell Technology, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
  By: William M. Caldwell

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive Officer

  	
   

  

 

7Exhibit 10.42

 

EMPLOYMENT
AGREEMENT

 

Advanced Cell Technology, Inc. (“ACT”)
desires to retain the services of Robert W. Peabody (“PEABODY”) in the capacity
of Vice President -Grant Administration; and PEABODY desires to provide his
services to ACT in that capacity.  Accordingly,
for and in consideration of the commitments set forth herein, ACT and PEABODY
agree as follows:

 

1.                                      Position and Duties

 

ACT agrees to employ PEABODY in the position of
Vice President- Grant Administration (“VP-A”). 
PEABODY shall report to the CEO of ACT, and shall perform any and all
duties now or hereafter assigned to PEABODY by the CEO of ACT, as well as any
other duties consistent with the position of VP-A.  These include, but are not limited to: (a) assisting
in securing grants; (b) administering the non-scientific issues
surrounding accomplishing the task outlined in the awarded grants; (c) setting
up policies, procedures and controls to comply with our internal financial
requirements, the collaborator of each grant, and the reporting requirements of
the grant issuer; (d) establishing a progress tracking system and being
responsible for insuring that projects are on budget and on a timeline to
achieve the grant requirements; (e) make sure that all external reporting
is timely, proper, and accurate to the various constituencies (both external
and internal to the company); (f) other administrative duties as assigned
by the CEO which could be altered or changed from time to time. PEABODY shall
abide by ACT’s rules, regulations, and practices as they may from time-to-time
be adopted or modified.

 

2.                                      Compensation

 

A.                                   Annual Salary.  ACT shall pay PEABODY an annual salary of one
hundred fifty thousand dollars ($150,000.00). 
PEABODY’s salary shall be paid in equal bi-monthly installments,
consistent with ACT’S regular pay practices. 
PEABODY’s salary may be adjusted from time-to-time by ACT without
affecting this Agreement.  PEABODY’s
annual salary will increase to one hundred ninety five thousand ($195,000) once
the company has raised $10 million of additional equity financing or been
awarded $5 million in grants, whichever is achieved first.

 

B.                                     Bonus:  Upon
the successful completion of his job responsibilities, in addition to his Annual
Salary, PEABODY shall be eligible to receive an annual bonus that will be recommended
by the CEO and approved by the Board of Director’s of ACT in their sole and absolute
discretion.  Not withstanding the above,
Peabody will receive an annualized pro-rata portion of $45,000, as a bonus, if
either financing milestone in (2A) above is achieved.

 

C.                                     Expenses:  ACT shall
reimburse PEABODY for reasonable travel and other business expenses incurred by
PEABODY in the performance of his duties hereunder.  He will be expected to relocate to California
by September of 2005 assuming the company establishes a corporate
headquarters in the State and an additional $10 million in financing is
received.  The

 

 

company will pay for his reasonable moving and
relocation expenses subject to review and pre-approval by the CEO in accordance
with company policy.

 

3.                                      Benefits

 

PEABODY shall be entitled to receive benefits
under the following benefit plans: group life insurance; medical insurance;
disability insurance, and 401K/retirement plan. 
ACT may modify, amend or terminate any or all such benefit plans at any
time.  PEABODY’s rights under any benefit
plans now in force or later adopted by ACT shall be governed solely by the
terms of the particular benefit plan.  In
addition, PEABODY shall be entitled to the following:

 

A.                                   Vacation:  Three (3) weeks
per year.

B.                                     Sick Days:  Ten (10) days per year.

 

4.                                      Stock Options.  Subject to
the approval of the ACT Board of Directors, ACT will grant PEABODY an option to purchase the Company’s Common Stock (the “Option”) under
the Company’s employee Stock Option Plan (the “Plan”) in an amount equal to 400,000
shares.  The Options will vest as
follows:  l/48th of the number
of shares will vest at the end of each full month of employment.  Vesting will depend on PEABODY’s continued
employment with the Company and will be subject to the terms and conditions of
the Plan and a Stock Option Agreement.  Except
as specifically set forth in this Section 4, PEABODY’s rights under the Plan,
or any other stock option plan later adopted by ACT, shall be governed solely
by the terms of the Plan, or the later adopted stock option plan.

 

Notwithstanding the foregoing: (i) upon a
Change in Control (as defined in the Plan), the vesting of fifty percent (50%)
of the then un-vested portion of the Option and any other outstanding equity
awards will be accelerated.

 

5.                                      Competitive Activities.

 

During the term of PEABODY’s employment with ACT
and for one (1) year thereafter, you shall not, for himself or any third
party, directly or indirectly (a) divert or attempt to divert from ACT any
business of any kind, including, without limitation, the solicitation of or
interference with any of its members, sponsors, employees, volunteers, officers
or directors, (b) employ, solicit for employment or recommend for
employment any person employed by ACT, or (c) engage in the formation or
promotion of, or be employed by, any entity that is competitive with ACT, PEABODY
acknowledges that there is a substantial likelihood that the activities
described in this Section 5 would involve the unauthorized use or
disclosure of the ACT’s Proprietary Information and that use or disclosure
would be extremely difficult to detect. PEABODY has accepted the limitations of
this Section 5 as a reasonably practicable and unrestrictive means of
preventing such use or disclosure.

 

6.                                      Inventions/Intellectual
Property Belong to ACT

 

Any and all inventions, discoveries, improvements
or intellectual property which PEABODY has conceived or made or may conceive or
make during the period of employment relating to or in

 

2

 

any way pertaining to or connected with the
systems, products, apparatus, or methods employed, manufactured, constructed or
researched by ACT shall be the sole and exclusive property of ACT.

 

The obligations provided for by this Agreement,
except for the requirements as to disclosure in paragraph 7, do not apply to
any rights PEABODY may have acquired in connection with an invention,
discovery, improvement or intellectual property for which no equipment, supplies,
facility, or trade secret information of the ACT was used and which was
developed entirely on the PEABODY’s own time and (a) which does not relate
directly or indirectly to the business of ACT or to ACT’s actual or
demonstrable anticipated research or development, or (b) which does not
result from any work performed by PEABODY for ACT.

 

7.                                      Disclosure of Inventions

 

PEABODY agrees to disclose promptly to ACT all
such improvements, discoveries, or inventions which PEABODY has made or may
make solely, jointly, or commonly with others, and to assign as appropriate
such improvements, discoveries, inventions or intellectual property to ACT,
where the rights are the property of ACT, and agrees to execute and sign any
and all applications, assignments, or other instruments which ACT may deem
necessary in order to enable it, at its expense, to apply for, prosecute, and
obtain Letters Patent of the United States or foreign countries for said
improvements, discoveries, inventions or intellectual property, or in order to
assign or convey to or vest in ACT the sole and exclusive right, title, and
interest in and to said improvements, discoveries, inventions, or patents.

 

This paragraph is applicable whether or not the
invention, discovery, improvement or intellectual property was made under the
circumstances described in paragraph 6.  PEABODY
agrees to make such disclosures understanding that they will be received in
confidence and that, among other things, they are for the purpose of
determining whether or not rights to the related invention, discovery,
improvement or intellectual property is the property of ACT.

 

8.                                      Confidential and Proprietary
Information

 

During his employment, PEABODY may have access to
confidential information relating to such matters as ACT’s trade secrets,
systems, procedures, manuals, products, and clients.  For purposes of this Agreement, “confidential
information” means all information and ideas, in any form, relating in any
manner to the business of ACT or its clients, unless: (i) the information
is or becomes publicly known through lawful means; (ii) the information
was rightfully in PEABODY’s possession prior to his employment with ACT; or (iii)
the information is disclosed to PEABODY without a confidential restriction by a
third party who rightfully possesses the information and did not obtain it,
either directly or indirectly, from ACT.

 

PEABODY understands and agrees that all
confidential information will be kept confidential by PEABODY both during and
after his employment under this Agreement. 
PEABODY further

 

3

 

agrees that he will not, without the prior written
approval by ACT, disclose such confidential information, or use such
confidential information in any way, either during the term of this Agreement
or at any time thereafter, except as required in the course of his employment.

 

9.                                      Termination of Employment

 

PEABODY understands and agrees that his/her
employment has no specific term.  This
Agreement, and the employment relationship, may be terminated by either party
with or without cause upon thirty (30) days written notice to the other.  Except as otherwise
agreed in writing or as otherwise provided in this Agreement, upon termination
neither ACT nor PEABODY shall have any further obligation to each other by way
of compensation or otherwise.

 

10.                               Separation Benefits.  Upon termination of PEABODY’s employment with
the Company for any reason, PEABODY will receive payment for all unpaid salary
and vacation accrued as of the date of his termination of employment, and his
benefits will be continued under the ACT’s then existing benefit plans and
policies for so long as provided under the terms of such plans and policies and
as required by applicable law.  Under
certain circumstances, and conditioned in each case upon PEABODY’s execution of
a release and waiver of claims against ACT, its officers and directors, PEABODY
will also be entitled to receive severance benefits as set forth below, but
PEABODY will not be entitled to any other compensation, award or damages with
respect to your employment or termination.

 

(a)                                  Definitions.  For purposes of this Section 10, the
following definitions shall apply: “Disability” shall mean PEABODY’s complete inability
to perform his job responsibilities for a period of one hundred eighty (180)
consecutive days or one hundred eighty (180) days in the aggregate in any
twelve (12) month period.  “Cause” means: (i) the failure to properly
perform PEABODY’s job responsibilities, as determined reasonably and in good
faith by the Board; (ii) commission of any act of fraud, gross misconduct
or dishonesty with respect to the Company; (iii) conviction of, or plea of
guilty or “no contest” to, any felony, or a crime involving moral turpitude; (iv) breach
of any proprietary information and inventions agreement with the Company; or (v) failure
to follow the lawful directions of the Board. 
The elimination of Peabody’s position or a material reduction in his
assigned duties and / or related salary (exclusive of across the board
executive salary cuts for budgetary considerations) is considered for purposes
of this agreement as “termination without cause.”

 

(b)                                  Termination for Cause,
Death, Disability, or Resignation.  In
the event of PEABODY’s termination for “Cause”, termination for death or “Disability,”
or his Resignation PEABODY will not be entitled to any cash severance benefits
or additional vesting of any Company equity awards, including Company stock
options.

 

(c)                                  Termination Without Cause.  In the event of PEABODY’s termination without “Cause,”
he will be entitled to (i) a lump sum payment in an amount equal to six (6) months
base salary, subject to such payroll deductions and withholdings as are
required by law; and (ii) accelerated vesting of fifty percent (50%) of
the then-unvested shares subject to the Option.

 

4

 

(d)                                  Change of Control.  In the event of
PEABODY’s termination without “Cause” within twelve (12) months following a
Change in Control, in lieu of the benefits set forth in subsection (c) above,
you will be entitled to (i) a lump sum payment in an amount equal to six (6) months
base salary, subject to such payroll deductions and withholdings as are
required by law; and (ii) accelerated vesting of one-hundred percent
(100%) of the then-unvested shares subject to the Option.

 

11.                               Turnover on Termination

 

PEABODY agrees that on or before termination of
employment, he will return to ACT all originals and copies of all or any part
of:

 

a.                                       Lists and sources
of clients;

 

b.                                      Proposals to
clients or drafts of proposals;

 

c.                                       Reports, job
notes, specifications, and drawings pertaining to clients;

 

d.                                      Any and all other
things, equipment, and written materials obtained by PEABODY during the course
of employment from ACT or any client of ACT.

 

e.                                       Any and all
inventions or intellectual property developed by PEABODY during the course of
employment.

 

12.                               Arbitration

 

Except for injunctive proceedings against
unauthorized disclosure of confidential information, any and all claims or
controversies between ACT and PEABODY, including but not limited to (1) those
involving the construction or application of any of the terms, provisions, or conditions
of this Agreement; (2) all contract or tort claims of any kind; and (3) any
claim based on any federal, state or local law, statute, regulation or
ordinance, including claims for unlawful discrimination or harassment, shall be
settled by arbitration in accordance with the then current Employment Dispute
Resolution Rules of the American Arbitration Association. Judgment on the
award rendered by the arbitrator(s) may be entered by any court having
jurisdiction thereof.  The location of
the arbitration shall be San Francisco, California.  Unless the parties mutually agree otherwise,
the arbitrator shall be a retired judge selected from a panel provided by the
American Arbitration Association, or the Judicial Arbitration and Mediation
Service (JAMS).

 

ACT shall pay the arbitrators fees and costs.  Each party shall pay for its own costs and
attorneys’ fees, if any.  However, if any
party prevails on a statutory claim which affords the prevailing party
attorneys’ fees, the arbitrator may award reasonable attorneys’ fees and costs
to the prevailing party.

 

5

 

PEABODY UNDERSTANDS AND AGREES THAT THIS AGREEMENT
TO ARBITRATE CONSTITUTES A WAIVER OF HIS/HER RIGHT TO A TRIAL BY JURY OF ANY
MATTERS COVERED BY THE ARBITRATION AGREEMENT. 

 

13.                               Severability

 

In the event that any of the provisions of this
Agreement shall be held to be invalid or unenforceable in whole or in part,
those provisions to the extent enforceable and all other provisions shall
nevertheless continue to be valid and enforceable as though the invalid or
unenforceable parts had not been included in this Agreement.  In the event that any provision relating to
the time period of restriction shall be declared by a court of competent
jurisdiction to exceed the maximum time period such court deems reasonable and
enforceable, then the time period of restriction deemed reasonable and
enforceable by the court shall become and shall thereafter be the maximum time
period.

 

14.                               Agreement Read and
Understood

 

PEABODY acknowledges that he has carefully
read the terms of this Agreement, that he has had an opportunity to consult
with a representative of his own choosing regarding this Agreement, that he
understands the terms of this Agreement, and that he is entering this agreement
of his own free will.

 

15.                               Complete Agreement,
Modification

 

This Agreement is the complete agreement between
the parties on the subjects contained herein and supersedes all previous
correspondence, promises, representations, and agreements, if any, either
written or oral.  No provision of this
Agreement may be modified except by a written document signed both by the ACT
and PEABODY.  PEABODY understands and
agrees that he will be required by the Company to execute a comprehensive
Proprietary Information Agreement.

 

16.                               Governing Law

 

This Agreement shall be construed and enforced
according to the laws of the State of California.

 

 

	
  Dated:

  	
  2/9/05

  	
   

  	
  /s/ Robert W. Peabody

  	
   

  
	
   

  	
   

  	
   

  	
  Robert W. Peabody

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Advanced Cell Technology, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
  By: William M. Caldwell

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive Officer

  	
   

  

 

6

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