Document:

Exhibit 10.5

August  30, 2006

Re:                               Lock-up
Letter

Purchasers:

Reference is made
to the Securities Purchase Agreement, dated August 30, 2006 (the “Purchase
Agreement”), among Advanced Cell Technology, Inc. (the “Company”)
and the purchasers signatory thereto (the “Purchasers”). Capitalized terms used herein but not otherwise defined shall have the
meaning ascribed to them in the Purchase Agreement.

In order to induce
the Purchasers to enter into the Purchaser Agreement, from the date hereof
until the one year anniversary following the Effective Date of the Registration
Statement, the undersigned will not offer, sell, contract to sell, pledge or
otherwise dispose of, (or enter into any transaction which is designed to, or
might reasonably be expected to, result in the disposition (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise) by the undersigned or any affiliate of the undersigned or any person
in privity with the undersigned or any affiliate of the undersigned), directly
or indirectly, including the filing (or participation in the filing) of a
registration statement with the Commission in respect of, or establish or
increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section 16 of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder (each, a “Transfer”) with
respect to, any shares of Common Stock beneficially owned or held by the
undersigned.  Beneficial ownership shall
be calculated in accordance with Section 13(d) of the Exchange Act.  In order to enforce this covenant, the
Company will impose irrevocable stop-transfer instructions preventing the
transfer agent from effecting any actions in violation of this agreement.

Notwithstanding
the foregoing, following the Effective Date, in the event that the undersigned
is no longer an officer or director of the Company (the date on which such
person is no longer an officer or director the “Trigger Date”), and
beneficially owns less than 500,000 shares of Common Stock on the Trigger Date,
then the undersigned shall be permitted to make Transfers of the shares of the
Company’s Common Stock held by the undersigned on a quarterly basis, beginning
on the calendar quarter following the later of (i) the 3 month anniversary of
the Trigger Date and (ii) the date the undersigned is no longer subject to
the  requirements of Section 16 of the
Exchange Act, in an amount equal to 25% of the aggregate number of shares of
Common Stock owned by the undersigned as of the Trigger Date (the undersigned
acknowledges and agrees that the foregoing limits on Transfers are
noncumulative and may not be carried over from quarter to quarter).  All share amounts shall be subject to
adjustment for reverse and forward stock splits, stock dividends,
recapitalizations and the like.

The undersigned
acknowledges that the execution, delivery and performance of this letter
agreement is a material inducement to the Purchasers to complete the
transaction contemplated by the Purchase Agreement and that the Purchasers
(which shall be third party beneficiaries of this letter agreement) and the
Company shall be entitled to specific performance

of my obligations hereunder.  The
undersigned hereby represents that the undersigned has the power and authority
to execute, deliver and perform this letter agreement, that the undersigned has
received adequate consideration therefor and that the undersigned will
indirectly benefit from the closing of the transactions contemplated by the
Purchase Agreement.

 

This letter
agreement may not be amended or otherwise modified in any respect without the
written consent of each of the Company, the Purchasers and the
undersigned.  This letter agreement shall
be construed and enforced in accordance with the laws of the State of New York,
without regard to the principles of conflicts of laws.  The undersigned hereby irrevocably submit to
the exclusive jurisdiction of the state and federal courts sitting in the City
of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waive, and agree not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, or that such suit, action or proceeding is
improper.  The undersigned hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by receiving a copy thereof sent
to the Company at the address in effect for notices to it under the Purchase
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  The
undersigned hereby waives any right to a trial by jury.  Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law.  The
undersigned agrees and understands that this letter does not intend to create
any relationship between the undersigned and the Purchasers and that the
Purchasers are not entitled to cast any votes on the matters herein
contemplated and that no issuance or sale of the Securities is created or
intended by virtue of this letter.

 2
 

 

 

This letter
agreement may be executed in two or more counterparts, all of which when taken
together may be considered one and the same agreement.

 

	
  

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Print Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Position in
  Company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Number of shares
  of Common Stock

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Number of shares
  of Common Stock underlying subject to warrants, options, debentures or other
  convertible securities

  
						

 

By signing below, the Company agrees to enforce the
restrictions on transfer set forth in this letter agreement.

	
  

  	
  ADVANCED
  CELL TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  William M.
  Caldwell, IV

  	
   

  
	
   

  	
   

  	
   

  	
  Name: William M.
  Caldwell, IV

  
	
   

  	
   

  	
   

  	
  Title: Chief
  Executive OfficerExhibit
10.1

INTEROFFICE MEMORANDUM

	
  TO:

  	
  Patrick E. McCready

  	
  CC:

  	
  D. Brenner, BOD

  
	
   

  	
  6540 Flamenco Street

  	
   

  	
  G. Marge, BOD

  
	
   

  	
  Carlsbad, CA 92009

  	
   

  	
  D. Iannini, BOD

  
	
   

  	
   

  	
   

  	
  G. Bejar, HR

  

 

	
  DATE:

  	
  August 31, 2006

  
	
   

  	
   

  
	
  FROM:

  	
  Bill Channell, Jr. – President and CEO

  
	
   

  	
   

  
	
  SUBJECT:

  	
  New Employment – CFO Position

  

 

The following outline describes our offer for you to
join Channell as its Chief Financial Officer. 
If you accept this offer your start date will be in September, 2006.

	
   

  	
  ·

  	
   

  	
  Title:

  	
   

  	
  Corporate CFO

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Report:

  	
   

  	
  Directly to President/CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Job Description:

  	
   

  	
  Responsible for all financial consolidation and SEC
  reporting, corporate financial planning and analysis as well as the lead on all
  bank financing, acquisition and SEC quarterly and annual street reporting.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Compensation:

  	
   

  	
  $200,000.00 annual salary, paid bi-weeklly

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Other Compensation:

  	
   

  	
  Annual 25%(*) bonus
  potential based on objectives

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·

  	
  50% EPS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·

  	
  40% Expense and cash flow management

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·

  	
  10% goals and objectives

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Bonus will be apply to 2007 Plan)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Stock Options:

  	
   

  	
  25,000(*) shares subject to Board approval. Strike price
  based on next Board meeting approval date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  401K Savings Plan:

  	
   

  	
  Qualified after 90-days of employment (See Employee
  Handbook)

  

 

 

 

	
   

  	
  ·

  	
   

  	
  Automobile:

  	
   

  	
  $700.00 monthly car allowance. Automobile must be in
  good condition and within 3 model years.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Credit Cards:

  	
   

  	
  You will be supplied an American Express card, phone
  card and auto rental card for your use.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Cash Advance:

  	
   

  	
  $1,000 advance will be provided to assist you with
  your expenses for reimbursement. This money will be returned upon your
  departure from the Company/

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Healthcare:

  	
   

  	
  You will be enrolled under the U.S. healthcare
  benefits program for 2006 (see attached documents).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Life & Disability

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Insurance:

  	
   

  	
  See enclosed Employee Handbook.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Air Travel Benefits:

  	
   

  	
  Over six hours of in-flight air travel, business
  class seating is approved unless corporate financial cut-backs are in effect.
  50% of all annual (direct of indirect) frequent flyer air miles are the
  property of Channell.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
   

  	
  Employee Prerequisites:

  	
   

  	
  Mandatory drug test and DMV license check,
  Confidentiality Agreement

  

 

(*) Review and
adjustments to these items will be made on an annual basis by the Compensation
Committee.

Hopefully this offer is acceptable to you and you will
commence your employment at Channell in September, 2006.  Please sign and return this document plus the
confidentiality agreement to Jeanne Bond by fax 951.719.2791 no later than
September 7, 2006 accepting this position.

	
  Signed:

  	
   /s/ Patrick
  M. McCready

  	
   

  
	
   

  
	
  Dated: 

  	
    September 5, 2006

  	
   

  

 

 2

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