Document:

isc_8k-ex1001.htm

    
      

    

    Exhibit 10.1

     

    INTERNATIONAL
      STEM CELL CORPORATION

    
       

      Subscription
        Agreement

       

      International
        Stem Cell Corporation

      2595
        Jason Court

      Oceanside,
        CA 92056

      

      Gentlemen:

      

      I,
        the
        undersigned (the “Purchaser”), have been advised that INTERNATIONAL STEM CELL
        CORPORATION, a Delaware corporation (the “Company”), wishes to raise cash funds
        from various investors such as me by selling units (“Units”) consisting of one
        (1) share of Series A Preferred Stock having the rights, preferences and
        privileges set forth on Exhibit A hereto (the “Preferred Stock”), and two (2)
        Common Stock Purchase Warrants in the form of Exhibit B hereto (the “Warrants),
        at a price of One Dollar ($1.00) per Unit, with a minimum investment of Five
        Hundred Thousand Dollars ($500,000), or 500,000 Units, from each investor
        (unless such minimum investment is waived by the Company as to a particular
        investor in the sole discretion of the Company).  You have advised me
        that officers, directors and employees of the Company may participate in
        this
        offering, and that the Company may elect to utilize one or more broker-dealers
        or finders to assist in the offering, for which assistance such broker-dealers
        or finders would receive a commission and/or expenses.

      

      I
        understand that there is no private placement memorandum with respect to
        the
        offering of Units by the Company, and that, in lieu thereof, it is my
        responsibility to read the filings of the Company with the Securities and
        Exchange Commission and posted on the Commission’s EDGAR site, including without
        limitation (i) the registration statement on Form SB-2, as amended, including
        all supplements thereto pursuant to Rule 424 (collectively, the “Registration
        Statement”), all Quarterly Reports on Form 10-QSB for the Company, and (iii) all
        Current Reports on Form 8-K for the Company (all such EDGAR filings being
        sometimes hereinafter referred to as the “SEC Filings”).

      

      I
        understand that you will rely on the following information to confirm that
        I am
        an “accredited investor” as defined in Regulation D under the Securities Act of
        1933, as amended (the “Securities Act”), and that I am qualified to be a
        Purchaser.

      

      This
        Subscription Agreement is one of a number of such subscriptions for
        Units.  By signing this Subscription Agreement, I offer to purchase
        from the Company the number of Units set forth below on the terms specified
        herein.  The Company reserves the right, in its complete discretion,
        to reject any subscription offer.  If my offer is accepted, the
        Company will execute a copy of this Subscription Agreement and return it
        to
        me.

      

      1.  Subscription.  Upon
        the terms and subject to the conditions set forth in this Subscription
        Agreement, I hereby subscribe for and agree to purchase from the Company
        the
        number of Units set forth on the Signature Page to this Subscription Agreement
        (the “Subscribed Units”) at a price equal to $1.00 per Unit.  A check
        or wire transfer in full payment of the purchase price must be delivered
        to the
        Company contemporaneously with the execution and delivery of this Subscription
        Agreement.

      

      2.  Representations
        and
        Warranties.  I represent and warrant to the Company
        that:

      

      
        	
                A.

              	
                I
                  (i) have adequate means of providing for my current needs and possible
                  contingencies and I have no need for liquidity of my investment
                  in the
                  Units, (ii) can bear the economic risk of losing the entire amount
                  of my
                  investment in Units, and (iii) have such knowledge and experience
                  that I
                  am capable of evaluating the relative risks and merits of this
                  investment.
                  

              

      

      

      
        	
                B.

              	
                I
                  have received and carefully read, and am familiar with the SEC
                  Filings,
                  including, without limitation, the “Certain Risk Factors” section of the
                  Registration Statement.  All documents, records and books
                  pertaining to the Company and requested by me, financial and otherwise,
                  have been made available or delivered to me.

              

      

      

      
        	
                C.

              	
                I
                  have had the opportunity to ask questions of and receive answers
                  from the
                  Company’s management concerning the Company’s affairs generally and the
                  terms and conditions of my proposed investment in the Units.  I
                  have had the opportunity, and I have been encouraged by the Company,
                  to
                  consult my financial and legal advisers in determining whether
                  to invest
                  in the Subscribed Units. 

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                D.

              	
                I
                  understand the risks implicit in the business of the Company. Among
                  other
                  things, I understand that there is no assurance that the Company
                  will be
                  successful in obtaining the funds necessary for its success.
                  

              

      

      

      
        	
                E.

              	
                No
                  person or entity has made any representation or warranty whatsoever
                  with
                  respect to any matter or thing concerning the Company and this
                  offering,
                  and I am purchasing the Units based solely upon my own investigation
                  and
                  evaluation. 

              

      

      

      
        	
                F.

              	
                I
                  acknowledge that the Units are being sold by the Company in a non-public
                  offering pursuant to the exemption from registration provided by
                  Section
                  4(2) of the Securities Act, and/or Rule 506 of Regulation D promulgated
                  thereunder. I acknowledge that this offering consequently has not
                  been
                  reviewed by the Securities and Exchange Commission. I understand
                  that no
                  Units have been qualified pursuant to the provisions of the securities
                  or
                  other laws of applicable jurisdictions.

              

      

      

      
        	
                G.

              	
                The
                  Units for which I subscribe are being acquired solely for my own
                  account,
                  for investment and are not being purchased with a view to or for
                  their
                  resale or distribution. In order to induce the Company to sell
                  Units to
                  me, the Company will have no obligation to recognize the ownership,
                  beneficial or otherwise, of the Units by anyone but me. I understand
                  that
                  the Units have not been registered under the Securities Act by
                  reason of a
                  claimed exemption under the provisions of the Securities Act which
                  depends, in part, upon my investment intention.

              

      

      

      
        	
                H.

              	
                I
                  have not received any advertisement or general solicitation with
                  respect
                  to the sale of the Units. 

              

      

      

      
        	
                I.

              	
                If
                  I am a Registered Representative of an FINRA member firm, I acknowledge
                  that I must give such firm the notice required by FINRA's Rules
                  of Fair
                  Practice or any applicable successor rule of FINRA, receipt of
                  which must
                  be acknowledged by such firm on the signature page hereof.
                  

              

      

      

      
        	
                J.

              	
                Except
                  as specifically indicated to the contrary on the Subscription Agreement,
                  I
                  certify that my taxpayer identification number is correct and,
                  if I am not
                  a corporation, IRA, Keogh, or Qualified Trust (as to which there
                  would be
                  no withholding), I am not subject to backup withholding on interest
                  or
                  dividends. If I have not provided a taxpayer identification number
                  certified to be correct or do not make the certification that I
                  am not
                  subject to backup withholding, then I may be subject to twenty
                  percent
                  (20%) withholding on interest or dividends paid to me.
                  

              

      

      

      
        	
                K.

              	
                I
                  represent and warrant that I am an “accredited investor” and come within
                  one or more of the categories set forth below.

              

      

      

      
        	
                 

              	
                (1)

              	
                Any
                  natural person whose individual net worth, or joint net worth with
                  that
                  person’s spouse, at the time of his or her purchase, exceeds $1,000,000;
                  

              

      

      

      Explanation.  In
        calculating net worth you may include equity in personal property and real
        estate, including your principal residence, cash, short-term investments,
        stock
        and securities.  Equity in personal property and real estate should be
        based on the fair market value of such property less debt secured by such
        property.

      

      
        
          	
                	
                  (2)

                	
                  Any
                    natural person who had an individual income in excess of $200,000
                    in each
                    of the two most recent years or joint income with that person's
                    spouse in
                    excess of $300,000 in each of those years and has a reasonable
                    expectation
                    of reaching the same income level in the current year;
                    

                

        

      

      

      
        	
                 

              	
                Explanation.  In
                  determining income, an investor should add to the investor's adjusted
                  gross income any amounts attributable to tax exempt income received,
                  losses claimed as a limited partner in any limited partnership,
                  deductions
                  claimed for depletion, contributions to an IRA or KEOGH retirement
                  plan,
                  alimony payments, and any amount by which income from long-term
                  capital
                  gains has been reduced in arriving at adjusted gross income.
                  

              

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      
        	
                 

              	
                (3)

              	
                A
                  bank as defined in Section 3(a)(2) of the Securities Act or any
                  savings
                  and loan company or other institution as defined in Section 3(a)(5)
                  of the
                  Securities Act, whether acting in its individual or fiduciary capacity;
                  

              

      

      

      
        	
                 

              	
                (4)

              	
                Any
                  broker or dealer registered pursuant to Section 15 of the Securities
                  Exchange Act of 1934, as amended; 

              

      

      

      
        
          	
                	
                  (5)

                	
                  An
                    insurance company as defined in Section 2(13) of the Securities
                    Act;
                    

                

        

      

      

      
        	
                 

              	
                (6)

              	
                An
                  investment company registered under the Investment Company Act
                  of 1940 or
                  a business development company as defined in Section 2(a)(48) of
                  that Act;
                  

              

      

      

      
        
          	
                	
                  (7)

                	
                  A
                    Small Business Investment Company licensed by the U.S. Small
                    Business
                    Administration under Section 301(c) or (d) of the Small Business
                    Investment Act of 1958; 

                

        

      

      

      
        
          	
                	
                  (8)

                	
                  An
                    employee benefit plan within the meaning of Title I of the Employee
                    Retirement Income Security Act of 1974, if the investment decision
                    is made
                    by a plan fiduciary, as defined in Section 3(21) of such Act,
                    which is
                    either a bank, insurance company, or registered investment advisor,
                    or if
                    the employee benefit plan has total assets in excess of $5,000,000
                    or, if
                    a self-directed plan, with investment decisions made solely by
                    persons
                    that are accredited investors;

                

        

      

      

      
        
          	
                	
                  (9)

                	
                  Any
                    private business development company, as defined in Section 202(a)(22)
                    of the Investment Advisers Act of 1940;

                

        

      

      

      
        
          	
                	
                  (10)

                	
                  An
                    organization described in Section 501(c)(3) of the Internal Revenue
                    Code,
                    corporation, Massachusetts or similar business trust, or partnership,
                    not
                    formed for the specific purpose, of acquiring the securities
                    offered, with
                    total assets in excess of $5,000,000;

                

        

      

      

      
        
          	
                	
                  (11)

                	
                  Any
                    trust, with total assets in excess of $5,000,000, not formed
                    for
                    the specific
                    purpose of acquiring the securities offered, whose purchase is
                    directed by
                    a sophisticated person as described in Rule 506(b)(2)(ii) under
                    the Act;
                    and 

                

        

      

      

      
        	
              	
                (12) 

              	
                 An
                  entity in which all
                  of  the equity owners are accredited investors.  If
                  the Subscriber
                  belongs to this investor category only, a list of the equity owners
                  of the
                  Subscriber, and the investor category which each such equity owner
                  satisfies, should be attached to this Agreement as Attachment A.
                  

              

      

      

      
        
          	
                	
                  O.

                	
                  I
                    understand that the Subscribed Units and any shares issuable
                    upon exercise
                    of the Warrants (collectively, the "Covered Securities") are
                    characterized
                    as “restricted securities” under the federal securities laws inasmuch as
                    they are being acquired from the Company in a transaction not
                    involving a
                    public offering, and that under such laws and applicable regulations
                    such
                    Covered Securities cannot be resold unless they are registered
                    under the
                    Securities Act or unless an exemption from registration is
                    available.  It is understood that any certificates or other
                    documents evidencing the Covered Securities may bear a legend
                    substantially as follows: 

                

        

      

       

      “These
        securities have not been registered under the Securities Act.  They
        may not be sold, offered for sale, pledged or hypothecated in the absence
        of a
        registration statement in effect with respect to the securities under such
        Act
        or an opinion of counsel satisfactory to the Company that such registration
        is
        not required.”

      

      I
        hereby
        agree that the Company shall be required to refuse to register any transfer
        of
        the Covered Securities not made pursuant to registration under the Securities
        Act, or pursuant to an available exemption from registration.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      
        	
              	
                P.

              	
                I
                  understand that the Company reserves the unrestricted right to
                  reject or
                  limit any subscription. 

              

      

      

      
        	
              	
                Q.

              	
                I
                  hereby represent that, except as set forth in this Subscription
                  Agreement,
                  no representations or warranties have been made to me by the Company,
                  the
                  Managers or any agent, finder, employee or affiliate of the Company,
                  and
                  in entering into this transaction, I am not relying on any information,
                  other than that contained in the Memorandum and the results of
                  independent
                  investigation by me. 

              

      

      

      
        	
              	
                R.

              	
                This
                  Subscription Agreement has been duly executed and delivered by
                  me and
                  constitutes the legal, valid, binding and enforceable obligation
                  of me,
                  subject to applicable bankruptcy, insolvency and similar laws affecting
                  creditors’ rights generally, and subject, as to enforceability, to general
                  principles of equity. 

              

      

      

      
        	
              	
                S.

              	
                Each
                  of the representations and warranties herein shall survive the
                  execution
                  and delivery of this Subscription Agreement, any investigation
                  by or on
                  behalf of the Company and the issuance of the Subscribed Units.
                  

              

      

      

      The
        foregoing representations and warranties are true and accurate as of the
        date
        hereof, shall be true and accurate as of the date of the delivery of the
        funds
        to the Company and shall survive such delivery.

      

      
        3. 
          Indemnification.  I
          understand the meaning and legal consequences of the representations and
          warranties contained herein, and I will indemnify and hold harmless the
          Company,
          its officers, directors, managers and representatives involved in the offer
          or
          sale of the Units to me, as well as each of the managers and representatives,
          employees and agents and other controlling persons of each of them, from
          and
          against any and all loss, damage or liability due to or arising out of
          a breach
          of any representation or warranty of mine contained in this Subscription
          Agreement.

      

      

      
        4. 
          Revocation.  I
          will not cancel, terminate or revoke this Subscription Agreement or any
          agreement made by me hereunder and this Subscription Agreement shall survive
          my
          death or disability.

      

      

      
        5. 
          Termination
          of
          Agreement.  If this subscription is rejected by the Company,
          then this Subscription Agreement shall be null and void and of no further
          force
          and effect, no party shall have any rights against any other party hereunder,
          and the Company shall promptly return to me any and all funds delivered
          with
          this Subscription Agreement.

      

      

      
        6. 
          Miscellaneous.

      

      

      
        	
                A.

              	
                Any
                  dispute involving, arising out of or related to the interpretation,
                  application or enforcement of this Subscription Agreement shall
                  be
                  submitted to binding arbitration before the American Arbitration
                  Association, whose rules applicable to commercial disputes shall
                  apply
                  except as modified hereby. The arbitration hearing shall take place
                  in Los
                  Angeles County, California before one arbitrator, who shall be
                  a retired
                  judge. The arbitrator shall comply with the provisions hereof unless
                  the
                  parties to the arbitration consent in writing otherwise. The arbitrator
                  may award attorney and expert witness fees and costs to the successful
                  party and may award exemplary or punitive damages as well. The
                  arbitrator
                  shall submit a written finding of facts and conclusions of law.
                  The
                  arbitrator shall have authority only to interpret and apply provisions
                  of
                  this Subscription Agreement and shall have no authority to add
                  to,
                  subtract from or modify terms of this Subscription Agreement except
                  to the
                  extent otherwise provided herein. The judgment of the arbitrator
                  shall be
                  binding and may be entered as a final judgment by any court having
                  jurisdiction over the parties hereto. THE PARTIES UNDERSTAND AND
                  ACKNOWLEDGE THAT UNDER THIS SECTION EACH WAIVES THE RIGHT TO TRIAL
                  BY JURY
                  IN CONNECTION WITH ANY ARBITRABLE CONTROVERSY OR CLAIM. Prior to
                  arbitration, if the parties agree they shall first participate
                  in
                  mediation of any dispute. The mediator shall be selected pursuant
                  to the
                  rules of the American Arbitration Association unless otherwise
                  agreed by
                  the parties, and shall be conducted in accordance with the mediation
                  procedures of the American Arbitration Association; provided, however,
                  that a matter subject to mediation pursuant to this Section that
                  is not
                  resolved by mediation within thirty (30) days shall be submitted
                  to
                  binding arbitration pursuant to this Section.

              

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      
        	
                B.

              	
                This
                  Subscription Agreement is expressly not intended for the benefit
                  of any
                  other person; and except and only to the extent provided by applicable
                  statute, no such creditor or third party shall have any rights
                  under this
                  Subscription Agreement. 

              

      

      

      
        	
                C.

              	
                Except
                  as otherwise provided in this Subscription Agreement, any notice
                  required
                  or permitted to be given pursuant to the provisions of this Subscription
                  Agreement shall be effective as of the day personally delivered,
                  or if
                  sent by mail, on the third day after deposit with the United States
                  Postal
                  Service, prepaid and addressed to the intended recipient at the
                  address
                  set forth below the signature of such party to this Subscription
                  Agreement
                  or such other address specified in writing by such party pursuant
                  to
                  written notice in accordance herewith, or, if sent by facsimile,
                  when
                  confirmed. 

              

      

      

      
        	
                D.

              	
                This
                  Subscription Agreement constitutes the entire agreement between
                  the
                  parties pertaining to the subject matter of the transactions contemplated
                  by this Subscription Agreement. This Subscription Agreement supersedes
                  all
                  written or oral, prior and contemporaneous agreements, representations,
                  warranties and understandings of the parties with respect thereto.
                  

              

      

      

      
        	
                E.

              	
                This
                  Subscription Agreement and the rights of stockholders shall be
                  governed by
                  and construed and enforced in accordance with the internal laws
                  of the
                  state of California, inclusive of any statutes of limitation, but
                  without
                  regard to the conflict of laws rules thereof. Jurisdiction and
                  venue for
                  any action concerning a dispute involving, arising out of or related
                  to
                  the interpretation, application or enforcement of this Subscription
                  Agreement shall be in Los Angeles County, California.
                  

              

      

      

      
        	
                F.

              	
                This
                  Subscription Agreement may be executed in several counterparts
                  and all
                  counterparts so executed shall constitute one Subscription Agreement
                  binding on all parties hereto, notwithstanding that all the parties
                  are
                  not signatories to the original or the same counterpart. Facsimile
                  signatures shall be acceptable as if original signatures had been
                  exchanged. 

              

      

      

      
        	
                G.
                  

              	
                If
                  a court or an arbitrator of competent jurisdiction holds any provision
                  of
                  this Subscription Agreement to be illegal, unenforceable or invalid
                  in
                  whole or in part for any reason, such provision shall be adjusted
                  rather
                  than voided, if possible to achieve the intent of the parties to
                  the
                  extent possible, and in any event the validity and enforceability
                  of the
                  remaining sections shall not be affected unless an essential purpose
                  of
                  this Subscription Agreement would be defeated by the loss of the
                  illegal,
                  unenforceable, or invalid provision. Without limiting the foregoing,
                  in
                  the event that any provision of this Subscription Agreement relating
                  to
                  time period and areas of restriction shall be declared by an arbitrator
                  or
                  court of competent jurisdiction to exceed the maximum time period
                  or areas
                  such arbitrator or court deems reasonable and enforceable, the
                  agreed upon
                  time period and areas of restriction shall be deemed to become
                  and
                  thereafter be the maximum time period and areas which said arbitrator
                  or
                  court deems reasonable and enforceable.

              

      

      

      
        	
                H.

              	
                This
                  Subscription Agreement may be amended or modified from time to
                  time only
                  by a written instrument executed by all parties hereto.
                  

              

      

      

      
        	
                I.

              	
                Except
                  as herein otherwise provided, this Subscription Agreement shall
                  be binding
                  upon and inure to the benefit of the parties and their respective
                  heirs,
                  executors, administrators, successors and assigns.
                  

              

      

      

      
        	
                J.

              	
                Headings
                  are used merely for reference purposes and do not affect content
                  in any
                  manner. 

              

      

      

      
        	
                K.

              	
                Wherever
                  applicable, references herein to the masculine, feminine or neuter
                  shall
                  equally apply to the neuter, feminine and masculine. Furthermore,
                  wherever
                  applicable in this Subscription Agreement, the singular shall include
                  the
                  plural. Except as otherwise provided herein, “Person” means any natural
                  person, firm or corporation or any group of individuals, firms
                  or
                  corporations, or any other entities.

              

      

      

      
        	
                L.

              	
                Time
                  is of the essence of every provision of this Subscription Agreement
                  that
                  specifies a time for performance. 

              

      

      

      
        
          	
                	
                  M.

                	
                  The
                    parties agree to execute and deliver all such further documents,
                    agreements and instruments and take such other and further action
                    as may
                    be necessary or appropriate to carry out the purposes and intent
                    of this
                    Subscription Agreement. 

                

        

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
        7.  Ownership
          Information.  Please print here the total number of Units to be
          purchased, and the exact name(s) in which the Interest(s) will be held;
          then
          sign and date this document in the space below.

      

      

      Total
        Units:  _______________;  total purchase price
        $_________________($1.00 per Unit)

      

      Names:                      
        _____________________________________________________________________

      
        	
                _____  Single
                  Person

              	
                _____
                  Husband and Wife, as community property

              
	
                _____  Joint
                  Tenants (with right of  Survivorship)

              	
                _____
                  Tenants in Common

              
	
                _____  A
                  Married Person as separate property

              	
                _____
                  Corporation of other organization

              
	
                _____  A
                  Partnership

              	
                _____
                  Trust

              
	
                _____  Other:
                  ____________________________

              	 

      

      

      Social
        Security Number or Tax I.D.
        Number:  ____________________________________________

      

      Residence
        Address:  _____________________________________________________________

      

      Mailing
        Address (if
        different):  _____________________________________________________

      

      Email
        Address:                                
____________________________________________________

      

      Phone
        Numbers:

      Home:  (______)  ___________________________

      Business
        (______)  _________________________

      Facsimile
        (___) ____________________________

      

      8.  Date
        and
        Signatures – Individual
        Investor.       Dated
        ____________________, 200___

      

      Signature(s)                      
        Purchaser Name (Print)

      

      ______________________________________                                                                                     
        _____________________________________

      

      ______________________________________                                                                                     
        _____________________________________

      (Each
        co-owner or joint venture owner must sign – Names must be signed exactly as
        listed under “Purchaser Name)

      

      9.
Date
        and
        Signatures –Legal Entity (partnership, corp.,
        etc).                                                                                                                     
Dated ___________________, 200_

      

      
        	
                ______________________________________

              	
                _____________________________________

              
	
                Name
                  of Entity

              	
                Number
                  of Partners (if applicable)

              
	 	 
	
                ______________________________________

              	
                _____________________________________

              
	
                Signature

              	
                Person’s
                  Name (Print) and Title/Position

              
	 	
                Of
                  Person Signing on Behalf of Entity

              

      

      

      

      __________________________________________

      

      ACCEPTED:

      

      INTERNATIONAL
        STEM CELL CORPORATION

      

      

      

      
        	
                By:__________________________________

              	
                Dated:  ___________________,
                  200___

              

      

      

       

       

       

      6isc_8k-ex1002.htm

    
      

    

     

    Exhibit 10.2

     

    FORM
      OF WARRANT CERTIFICATE

    

    WARRANT
      TO PURCHASE UP TO

    __________
      SHARES OF COMMON STOCK

    OF

    INTERNATIONAL
      STEM CELL CORPORATION

    

    THE
      SECURITIES REPRESENTED HEREBY AND THE UNDERLYING SHARES OF COMMON STOCK HAVE
      NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
      SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT AS TO THE SALE OF SUCH SECURITIES UNDER SAID ACT OR
      AN
      OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    

    This
      certifies that, for value
      received, _______________________________ (the "Holder") is entitled to purchase
      from International Stem Cell Corporation (the "Company"), and the Company
      promises and agrees to sell and issue to Holder, up to _________ shares of
      Common Stock of the Company, at a per share price of Fifty Cents ($0.50) (the
      "Warrant Price"), subject to adjustment as hereinafter provided, at any time
      on
      and after the date of this Warrant and on or before December 10, 2012. The
      Holder and all other persons acquiring similar Warrants to purchase Common
      Stock
      from the Company are sometimes hereinafter referred to collectively as the
      “Holders” and individually as a “Holder”).

    

    This
      Warrant Certificate evidences the
      right to purchase shares of Common Stock of the Company and is issued in
      accordance with and subject to the following terms and conditions:

    

    I.  THE
      WARRANTS

    

    1.01  General.  The
      Warrants shall be numbered and registered on the books of the Company when
      issued.  The Warrants shall be dated as of the date of signature
      thereof on behalf of the Company either upon initial issuance or upon division,
      exchange, substitution or transfer.

    

    1.02  Transfer.  The
      Warrants shall be transferable only on the books of the Company maintained
      at
      its principal executive office upon delivery thereof duly endorsed by the
      Warrant holders or by their duly authorized attorney or representative, or
      accompanied by proper evidence of succession, assignment or authority to
      transfer.  Upon any registration to transfer, the Company shall
      execute and deliver a new Warrant to the person entitled thereto.

    

    1.03  Combination
      or Transfer of
      Warrants.  Any Warrant may be divided or combined, upon request
      to the Company by the Holder of such Warrant, into a new Warrant certificate
      or
      certificates evidencing the same aggregate number of shares of Common Stock
      of
      the Company represented by the Warrant (“Warrant Shares”) issuable thereunder.
      Unless the context indicates otherwise, the term "Holder" shall include any
      transferee or transferees of any Warrant, and the term "Warrants" shall include
      this Warrant and all other warrants evidenced by a certificate or certificates
      issued upon division, exchange, substitution or transfer.

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

    

    1.04   Validity
      of Warrants and
      Warrant Shares.  The Company represents and warrants to the
      Holder that (i) this certificate representing the Warrant issued to the Holder
      is in due and proper form, (ii) the Warrants and the Warrant Shares have been
      duly authorized by all necessary corporate action on the part of the Company,
      (iii) the Warrants (upon payment of the consideration therefor) will be validly
      issued, fully paid and non-assessable, (iv) the Holder will acquire valid title
      to such Warrants free and clear of any encumbrances, and (v) the Warrant Shares
      issuable upon exercise of such Warrants have been duly and validly reserved
      and
      upon issuance and upon payment of the exercise price therefor will be duly
      and
      validly issued, fully paid and nonassessable.

    

    1.05  Term.  Subject
      to the terms of this Warrant Certificate, each Holder shall have the right,
      for
      the period commencing on the date on which the Warrants are first issued by
      the
      Company and ending on the Termination Date (as hereinafter defined), to purchase
      up to the number of Warrant Shares specified on the face of the Warrant
      Certificate, subject to adjustment in accordance hereto, upon surrender to
      the
      Company at its principal executive office of the certificate evidencing the
      Warrant to be exercised, together with a written election to exercise duly
      completed and signed, and upon payment to the Company of the Warrant Price
      (as
      defined in and determined in accordance with the provisions of this Article)
      for
      the number of Warrant Shares in respect of which the Warrant is then
      exercised.  Payment of the aggregate Warrant Price shall be made by
      wire transfer, in cash or by certified check.  "Termination Date"
      shall mean 5:00 p.m., Los Angeles time, on December 10, 2012.

    

    1.06  Exercise
      of
      Warrants.

    

    (a)
Cash
      Exercise. Upon
      notice by any Holder to the Company and upon surrender of the Warrant
      Certificate for the Warrants to be exercised and payment of such Warrant Price,
      the Company shall issue and cause to be delivered, within five (5) business
      days
      after payment is received by the Company, to or upon the written order of such
      Holder and in such name or names as such Holder may designate, a certificate
      or
      certificates for the number of full Warrant Shares so purchased upon the
      exercise of such Warrants, together with payment in respect of any fractional
      shares otherwise issuable upon such surrender.  Such certificate or
      certificates shall be deemed to have been issued and any person so designated
      to
      be named therein shall be deemed to have become a holder of record of the
      Warrant Shares as of the date of the surrender of such Warrant and payment
      of
      the Warrant Price, as aforesaid; provided, however, that if, at the date of
      surrender of such Warrants and payment of the Warrant Price, the transfer books
      for the Warrant Shares or other class of stock purchasable upon the exercise
      of
      such Warrant shall be closed, the certificates for the Warrant Shares in respect
      of which such Warrants are then exercised shall be issuable as of the date
      on
      which such books shall next be opened (whether before or after the Termination
      Date) and until such date the Company shall be under no duty to deliver any
      certificate for such Warrant Shares; provided, further, that the transfer books
      of record, unless otherwise required by law, shall not be closed at any one
      time
      for a period longer than twenty (20) days.  The rights of purchase
      represented by each Warrant shall be exercisable, at the election of the Holder,
      either in full or from time to time in part and, in the event that a certificate
      evidencing any Warrant is exercised in respect of less than all of the Warrant
      Shares specified therein at any time prior to the date of expiration of such
      Warrant, a new certificate evidencing the right to acquire the remaining
      unacquired Warrant Shares will be promptly issued by the Company.

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    

    (b)
Cashless
      Exercise
      Right.  Notwithstanding the payment provisions set forth above,
      the Holder may elect to convert Warrants into Warrant Shares (a “Cashless
      Exercise Right”) by surrendering the Warrant Certificate for the subject
      Warrants at the principal office of the Company and delivering to the Company
      written notice of the Holder’s intention to exercise this Cashless Exercise
      Right, which notice shall specify the number of Warrant Shares subject to this
      Cashless Exercise Right (hereinafter, a “Cashless Exercise”).  Upon
      such delivery, the Company shall issue to the Holder the number of Warrant
      Shares equal to the result obtained by (a) subtracting B from A,
      (b) multiplying the difference by C, and (c) dividing the product by
      A, as set forth in the following equation:

     

    X
      = (A - B) x C        where:

                A

    

    
      	
               

            	
              X
                =

            	
              the
                number of Warrant Shares issuable upon net issuance exercise pursuant
                to
                the provisions of this Section 1.06(b).

            

    

     

    
      	
               

            	
              A
                =

            	
              the
                Fair Market Value (as hereinafter defined) of one Warrant Share on
                the
                date of net issuance exercise. 

            

    

     

    
      	
               

            	
              B =

            	
              the
                Warrant Price. 

            

    

     

    
      	
               

            	
              C
                =

            	
              the
                number of Warrant Shares for which this Warrant is being exercised.
                

            

    

     

    If
      the
      foregoing calculation results in a negative number, then no Warrant Shares
      shall
      be issued upon net issuance exercise pursuant to this
      Section 1.06(b).

     

    (c)
Definition
      of Fair Market
      Value. “Fair Market Value” shall be the closing sale price for one share
      of the Company’s Common Stock on the business day immediately prior to the date
      on which the Company receives written notice of the Cashless Exercise, or if
      no
      sale occurred on such date, the average of the bid and asked prices for one
      share of the Company’s Common Stock on such date.

     

    1.07  Payment
      of Taxes. The
      Company shall pay all stock transfer taxes and similar governmental charges
      that
      may be imposed with respect to the issuance of Warrant Shares; provided,
      however, that the Company shall not be required to pay any tax or other charge
      imposed in connection with any transfer of Warrants or the issuance or delivery
      of certificates for Warrant Shares to a person or entity other than a then
      existing Holder of the Warrant; provided, further, that the Company shall not
      be
      required to pay any income or other similar tax levied on any Holder of the
      Warrant.

     

    1.08  Mutilated
      or Missing
      Warrant.  In case the certificate or certificates evidencing
      any Warrant shall be mutilated, lost, stolen or destroyed, the Company shall,
      at
      the request of the Holder and upon delivery by the Holder to the Company of
      reasonably satisfactory proof thereof and (except in the case of a mutilated
      certificate) an indemnity agreement satisfactory to the Company, issue and
      deliver in exchange and substitution for and upon cancellation of the mutilated
      certificate or certificates, or in lieu of and substitution for the certificate
      or certificates lost, stolen or destroyed, a new Warrant certificate or
      certificates of like tenor and representing an equivalent right or
      interest.

    

    1.09  Reservation
      of
      Shares.  There has been reserved, and the Company shall at all
      times keep reserved so long as the Warrants remain outstanding, out of its
      authorized but unissued Common Stock a number of shares of Common Stock
      sufficient to provide for the exercise of the rights of purchase represented
      by
      the outstanding Warrants.

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    

    1.10  Warrant
      Price.  The price per share (the "Warrant Price") at which
      Warrant Shares shall be purchasable upon exercise of the Warrants shall be
      Fifty
      Cents ($0.50) per share, subject to further adjustment pursuant to this
      Article.

    

    1.11  Adjustments
      of Warrant
      Shares and/or Warrant Price.  The number of Warrant Shares
      purchasable upon the exercise of the Warrants and the Warrant Price therefor
      shall be subject to adjustment as follows:

    

    (a)           
      In case the Company shall (i) pay a dividend in shares of Common Stock or make
      a
      distribution in shares of Common Stock, (ii) subdivide or split its outstanding
      shares of Common Stock, (iii) combine in the form of a reverse stock split
      or
      otherwise change its outstanding shares of Common Stock into a smaller number
      of
      shares of Common Stock or (iv) issue, by reclassification of its shares of
      Common Stock, other securities of the Company, the number of Warrant Shares
      purchasable upon exercise of each Warrant immediately prior thereto shall be
      adjusted so that the Holder holding such Warrant shall be entitled to receive
      the kind and number of shares or other securities of the Company which the
      Holder would have owned or have been entitled to receive after the happening
      of
      any of the events described above had such Warrant been exercised immediately
      prior to the happening of such event or any record date with respect
      thereof.

    

    (b)           
      In case the Company shall issue rights, options, warrants or convertible
      securities to all or substantially all holders of its shares of Common Stock,
      without any charge to such holders, entitling them to subscribe for or purchase
      shares of Common Stock at a price per share which is lower at the record date
      mentioned below than the Warrant Price, the number of Warrant Shares thereafter
      purchasable upon the exercise of each Warrant shall be determined by multiplying
      the number of Warrant Shares theretofore purchasable upon the exercise of such
      Warrant by a fraction, of which the numerator shall be the number of shares
      of
      Common Stock outstanding immediately prior to the issuance of such rights,
      options or warrants plus the number of additional shares of Common Stock offered
      for subscription or purchase to all or substantially all holders of its shares
      of Common Stock, and of which the denominator shall be the number of shares
      of
      Common Stock outstanding immediately prior to the issuance of such rights,
      options or warrants plus the number of shares which the aggregate offering
      price
      of the total number of shares of Common Stock so offered would purchase at
      such
      Warrant Price. Such adjustment shall be made whenever such rights, options
      or
      warrants are issued, and shall become effective immediately after the record
      date for the determination of stockholders entitled to receive such rights,
      options or warrants; provided, however, that in no event shall the number of
      Warrant Shares purchasable upon exercise of such Warrant be adjusted pursuant
      to
      the computation provided in this subsection 1.11(b) to a number less than the
      number of Warrant Shares purchasable immediately prior to such
      computation.

    

    (c)           
      In case the Company shall distribute to all or substantially all holders of
      its
      shares of Common Stock evidences of its indebtedness or assets (excluding cash
      dividends or distributions out of earnings) or rights, options, warrants or
      convertible securities containing the right to subscribe for or purchase shares
      of Common Stock (excluding those referred to in paragraph (b) above), then
      in
      each case the number of Warrant Shares thereafter purchasable upon the exercise
      of each Warrant shall be determined by multiplying the number of Warrant Shares
      theretofore purchasable upon exercise of such Warrant by a fraction, of which
      the numerator shall be the Warrant Price on the date of such distribution,
      and
      of which the denominator shall be such Warrant Price on such date minus the
      then
      fair value of the portion of the assets or evidences of indebtedness so
      distributed or such subscription rights, options, warrants or convertible
      securities applicable to one share of Common Stock. Such adjustment shall be
      made whenever any such distribution is made and shall become effective on the
      date of distribution retroactive to the record date for the determination of
      stockholders entitled to receive such distribution; provided, however, that
      in
      no event shall the number of Warrant Shares purchasable upon exercise of such
      Warrant be adjusted pursuant to the computation provided in this subsection
      1.11(c) to a number less than the number of Warrant Shares purchasable
      immediately prior to such computation.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d)
      No adjustment in the number of
      Warrant Shares purchasable hereunder shall be required unless such adjustment
      would require an increase or decrease of at least one percent in the number
      of
      Warrant Shares then purchasable upon the exercise of the Warrants; provided,
      however, that any adjustments which by reason of this subsection 1.11(d) are
      not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment.

    

    (e)
      Whenever the number of Warrant
      Shares purchasable upon the exercise of any Warrant is adjusted, as herein
      provided, the Warrant Price payable upon exercise of such Warrant shall be
      adjusted by multiplying such Warrant Price immediately prior to such adjustment
      by a fraction, of which the numerator shall be the number of Warrant Shares
      purchasable upon the exercise of such Warrant immediately prior to such
      adjustment, and of which the denominator shall be the number of Warrant Shares
      so purchasable immediately thereafter.

    

    (f)  If
      the Company shall
      issue, after the date of this Warrant (the “Issue Date”), (i) not less than two
      hundred fifty thousand (250,000) shares of Common Stock for a purchase price
      per
      share less than the Warrant Price in effect immediately prior to such issuance
      (other than pursuant to the exercise or conversion or options, warrants or
      rights outstanding as of the Issue Date), or (ii) options, warrants or rights
      to
      purchase shares of Common Stock, or convertible securities convertible into
      or
      exchangeable for shares of Common Stock (such options, warrants, rights and
      convertible securities are hereinafter referred to collectively as “Common Stock
      Rights”), which Common Stock Rights are exercisable for or convertible into not
      less than two hundred fifty thousand (250,000) shares of Common Stock at an
      exercise price or conversion rate per share that is less than the Warrant Price
      in effect immediately prior to such issuance, then, in either such event, the
      Warrant Price shall automatically be adjusted to equal the purchase price of
      such shares or the exercise price or conversion rate of the Common Stock Rights,
      as applicable.

    

    (g)  Upon
      the occurrence of
      each adjustment or readjustment of the number of Warrant Shares issuable upon
      exercise of the Warrants or the Warrant Price pursuant to this Section 1.11,
      the
      Company at its expense shall promptly compute such adjustment or readjustment
      and furnish to the Holder a certificate setting forth such adjustment or
      readjustment and showing in detail the facts upon which such adjustment or
      readjustment is based.  The Company shall, upon the written request at
      any time of any Holder, furnish or cause to be furnished to the Holder a like
      certificate setting forth (i) such adjustments and readjustments, (ii) the
      Warrant Price in effect at the time, and (iii) the number of Warrant Shares
      and
      the amount, if any, of other property which at the time would be received upon
      exercise of the Warrants.

    

    (h)  For
      the purpose of
      this Section 1.11, the term "shares of Common Stock" shall mean (i) the class
      of
      stock designated as the Common Stock of the Company at the date of this
      Agreement or (ii) any other class of stock resulting from successive changes
      or
      reclassifications of such shares of Common Stock.  In the event that
      at any time, as a result of an adjustment made pursuant to this Article II,
      the
      Holders shall become entitled to purchase any shares of the Company other than
      shares of Common Stock, thereafter the number of such other shares so
      purchasable upon exercise of the Warrants and the Warrant Price of such shares
      shall be subject to adjustment from time to time in a manner and on terms as
      nearly equivalent as practicable to the provisions with respect to the Warrant
      Shares contained in this Section 1.11.

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    

    

    (i)  Upon
      the expiration
      without exercise of any rights, options, warrants or conversion privileges
      for
      which an adjustment has been made pursuant to this Section 1.11, the number
      of
      Warrant Shares purchasable upon exercise of each Warrant and the Warrant Price,
      to the extent such Warrant has not been exercised, shall, upon such expiration,
      be readjusted and shall thereafter be such as they would have been had they
      been
      originally adjusted (or had the original adjustment not been required, as the
      case may be) on the basis that (i) the only shares of Common Stock so issued
      were the shares of Common Stock, if any, actually issued or sold upon the
      exercise of such rights, options, warrants or conversion rights and (ii) such
      shares of Common Stock, if any, were issued or sold for the consideration
      actually received by the Company upon such exercise plus the consideration,
      if
      any, actually received by the Company for the issuance, sale or grant to all
      of
      such rights, option, warrants or conversion rights whether or not exercise;
      provided, however, that no such readjustment shall have the affect of increasing
      the Warrant Price by an amount in excess of the amount of the adjustment
      initially made in respect of the issuance, sale or grant of such rights,
      options, warrants or convertible rights.

    

    1.12  No
      Adjustment for
      Dividends.  Except as provided in Section 1.11, no adjustment
      in respect of any dividends shall be made during the term of the Warrants or
      upon the exercise of the Warrants.

    

    1.13  Rights
      upon
      Reclassification, Consolidation, Etc. in case of any consolidation of the
      Company with, or merger of the Company into, another corporation or in case
      of
      any sale or conveyance to another corporation of the property of the Company
      as
      an entirety or substantially as an entirety, the Company or such successor
      or
      purchasing corporation, as the case may be, shall execute, and the Holders
      shall
      execute, an agreement that the Holders will have the right thereafter upon
      payment of the Warrant Price in effect immediately prior to such action to
      purchase upon exercise of the Warrants the kind and amount of shares and other
      securities and property which they would have owned or have been entitled to
      receive after the happening of such consolidation, merger, sale or conveyance
      had the Warrants been exercised immediately prior to such action or the record
      date therefor, whichever would be greater. Such agreement shall provide for
      adjustments, which shall be as nearly equivalent as may be practicable to the
      adjustments provided for herein.  The provisions of this Section 1.13
      shall similarly apply to successive consolidations, mergers, sales or
      conveyances.

    

    1.14  Statement
      on
      Warrants.  Irrespective of any adjustments in the Warrant Price
      or the number or kind of securities purchasable upon the exercise of the
      Warrants, the Warrant certificates theretofore or thereafter issued may continue
      to express the same price and number and kind of shares as are stated in the
      Warrants initially issuable pursuant hereto.

    

    1.15  Fractional
      Interests.  The Company shall not be required to issue
      fractional shares on the exercise of the Warrants.  In the event any
      fractional shares are so issuable, the Company shall round such fraction down
      to
      the nearest whole share.

    

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    

    1.16  No
      Rights as Stockholder;
      Notices to Holders.  Nothing contained in this Warrant shall be
      construed as conferring upon the Holders or their transferees any rights
      whatsoever as stockholders of the Company by virtue of the ownership of the
      Warrants, including the right to vote, receive dividends, consent or receive
      notices as a stockholder in respect of any meeting of stockholders for the
      election of directors of the Company or any other matter.  If,
      however, at any time prior to the expiration of the Warrants and prior to their
      exercise, any of the following events shall occur:

    

    (a)  the
      Company shall
      declare any dividend payable in any securities upon any class of its shares
      of
      capital stock or make any distribution (other than a cash dividend) to the
      holders of any class of its capital stock;

    

    (b)  the
      Company shall
      offer to the holders of any class of its shares of capital stock any additional
      shares of capital stock or securities convertible into shares of any class
      of
      capital stock or any right to subscribe thereto;

    

    (c)  a
      dissolution,
      liquidation or winding up of the Company shall be proposed; or

    

    (d)  a
      consolidation of the
      Company with, or merger of the Company into, another corporation, or a sale
      or
      conveyance to another corporation of the property of the Company as an entirety
      or substantially as an entirety or any other corporate reorganization in which
      the Company is the acquired party shall be proposed;

    

    then
      in
      any of said events, the Company shall give notice in writing of such event
      to
      the Holders as provided by the provisions of this Agreement (i) at least 10
      days
      prior to the date fixed as a record date or the date of closing the transfer
      books for the determination of the stockholders entitled to such dividend,
      distribution or subscription rights, or for the determination of stockholders
      entitled to vote on such proposed dissolution, liquidation or winding up, and
      (ii) at least 10 days prior to the effective date or the closing date, whichever
      is earlier, of such proposed merger, consolidation, sale, conveyance or other
      reorganization.  Such notice shall specify such record date, the date
      of closing the transfer books, and the effective date or the closing date,
      as
      the case may be.

    

    1.17            
      Authority of Board
      in
      Certain Events.  If any event occurs as to which, in the good
      faith opinion of the Board of Directors of the Company, the other provisions
      of
      this Article I are not strictly applicable or as strictly applied would not
      fairly protect the purchase rights of the Warrant in accordance with the
      essential intent and principles of such provisions, then the Board shall have
      the authority to make an adjustment in the application of such provisions,
      in
      accordance with principles of equity and fairness, in order to accomplish the
      intent and principles of such provisions, provided that no such adjustment
      may
      be to the detriment of the rights of the

    

    

    II.  MISCELLANEOUS
      PROVISIONS

    

    2.01            
      Survival of
      Representations, Warranties and Agreements.  Notwithstanding
      any investigation conducted or notice or knowledge obtained by or on behalf
      of
      any Holder, each representation and warranty of the Company herein and each
      agreement or covenant of the Company herein which does not by its own terms
      expire at an earlier time shall survive until the exercise or expiration of
      the
      Warrants, and any claim for breach of any representation or warranty in this
      Warrant must be brought within one (1) year after such exercise or
      expiration.

    

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    

    2.02 
Governing
      Law.  THIS WARRANT AND THE RIGHTS AND OBLIGATIONS OF THE
      PARTIES CREATED HEREBY SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE
      OF
      CALIFORNIA WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF.

    

    2.03  Severability
      of
      Provisions.  If any provision of any portion of any provision
      of this Warrant or the application of any such provision or any portion thereof
      to any person or circumstance, shall be held invalid or unenforceable for any
      reason, it shall be adjusted rather than voided, if possible, to achieve the
      intent of the parties  to the extent possible.  In any
      event, all other provisions of this Warrant shall be deemed valid and
      enforceable to the extent possible.

    

    2.04  Modification;
      Waiver.  No modification of or amendment to the terms of this
      Warrant shall be valid unless in a writing signed by the Company and all Holders
      referring specifically to this Agreement and stating the parties' intention
      to
      modify or amend the same.  Any waiver of any term or condition of this
      Warrant must be in a writing signed by the party or parties sought to be charged
      with such waiver referring specifically to the term or condition to be waived,
      and no such waiver shall be deemed to constitute the waiver of any other breach
      of the same or of any other term or condition of this Warrant.

    

    2.05  Gender.  The
      use of the masculine, feminine or neuter gender herein shall be deemed to
      include the other genders.

    

    

    IN
      WITNESS WHEREOF, International Stem
      Cell Corporation has caused this Warrant to be duly executed on its behalf
      as of
      the ____ day of ______, 2008.

    

    

    

    

    
      	 	
              INTERNATIONAL
                STEM CELL CORPORATION

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	
              By:
                ___________________________

            

    

    

    
 

     

    8

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