Document:

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                                                                     EXHIBIT 4.7

        THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES
LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A
TRANSACTION THAT IS EXEMPT FROM SUCH REGISTRATION.

                             STOCK PURCHASE WARRANT

                  To Purchase 75,377 Shares of Common Stock of

                            ACRES GAMING INCORPORATED

        THIS CERTIFIES that, for value received, Roth Capital Partners, LLC (the
"Holder"), is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth in this Stock Purchase Warrant
(the "Warrant"), at any time on or after December 21, 2001 (the "Initial
Exercise Date") and on or prior to the close of business on the fifth
anniversary of the Initial Exercise Date (such period referred to herein as the
Exercise Period") but not thereafter, to subscribe for and purchase from Acres
Gaming Incorporated, a corporation incorporated in the State of Nevada (the
"Company"), up to 75,377 shares (the "Warrant Shares") of Common Stock, par
value $.01 per share, of the Company (the "Common Stock"). The purchase price of
one share of Common Stock (the "Exercise Price") under this Warrant shall be
$4.6433, subject to adjustment hereunder. The Exercise Price and the number of
Warrant Shares for which the Warrant is exercisable shall be subject to
adjustment as provided herein.

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        1.     TITLE TO WARRANT

        Prior to the end of the Exercise Period and subject to compliance with
applicable laws, this Warrant and all rights hereunder are transferable, in
whole or in part, at the office or agency of the Company by the Holder in person
or by duly authorized attorney, upon surrender of this Warrant together with the
Assignment Form annexed hereto properly endorsed.

        2.     AUTHORIZATION OF SHARES

        The Company covenants that all Warrant Shares which may be issued upon
the exercise of the purchase rights represented by this Warrant will, upon
exercise of the purchase rights represented by this Warrant, be duly authorized,
validly issued, fully paid and nonassessable and free from all taxes, liens and
charges in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously with such issue).

        3.     EXERCISE OF WARRANT

               (a)    Except as provided in Section 4 herein, exercise of the
purchase rights represented by this Warrant may be made at any time or times
during the Exercise Period by the surrender of this Warrant and the Notice of
Exercise Form annexed hereto duly executed, at the office of the Company (or
such other office or agency of the Company as it may designate by notice in
writing to the registered Holder at the address of such Holder appearing on the
books of the Company) and upon payment of the Exercise Price of the shares
thereby purchased by wire transfer or cashier's check drawn on a United States
bank, the Holder shall be entitled to receive a certificate for the number of
Warrant Shares so purchased. Certificates for shares purchased hereunder shall
be delivered to the Holder within three (3) Trading Days after the date on which
this Warrant shall have been exercised as aforesaid. This Warrant shall be
deemed to have been exercised and such certificate or certificates shall be
deemed to have been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by surrender of
the Warrant and payment to the Company of the Exercise Price and all taxes
required to be paid by the Holder, if any, pursuant to Section 5 prior to the
issuance of such shares, have been paid.

               (b)    If this Warrant shall have been exercised in part, the
Company shall, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase

                                                                          PAGE 2
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the unpurchased Warrant Shares called for by this Warrant, which new Warrant
shall in all other respects be identical with this Warrant.

               (c)    In lieu of payment of the Exercise Price described in
Section 3(a), the Holder may elect to receive, without the payment by the Holder
of any additional consideration, shares equal to the value of this Warrant or
any portion hereof by the surrender of this Warrant or such portion to the
Company, with the net issue election notice annexed hereto (the "Net Issuance
Election") duly executed, at the principal executive offices of the Company.
Thereupon, the Company shall issue to the Holder such number of fully paid and
nonassessable Warrant Shares as is computed using the following formula:

where:                             X = Y (A-B)
                                   -----------
                                        A

        X = the number of Warrant Shares to be issued to the Holder pursuant to
            this Section 3.

        Y = the number of Warrant Shares covered by this Warrant in respect of
            which the net issuance election is made pursuant to this Section 3.

        A = the fair market value of one share of Common Stock, as determined in
            accordance with the provisions of this Section 3.

        B = the Exercise Price in effect under this Warrant at the time the net
            issuance election is made pursuant to this Section 3.

        For purposes of this Section 3, the "fair market value" per share of the
Common Stock shall mean:

               (i)    If the Common Stock is traded on a national securities
exchange or admitted to unlisted trading privileges on such an exchange, or is
listed on the National Market of the National Association of Securities Dealers
Automated Quotations System (the "Nasdaq National Market") or other
over-the-counter quotation system, the fair market value shall be the average of
the high and low per share trading prices of the Common Stock on such exchange
or on the Nasdaq National Market on the last business day before the effective
date of exercise of the Net Issuance Election or if no such sale is made on such
day, the mean of the closing bid and asked prices such day on such exchange, the
Nasdaq National Market or over-the-counter quotation system; and

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               (ii)   If the Common Stock is not so listed or admitted to
unlisted trading privileges and bid and ask prices are not reported, the fair
market value shall be the price per share which the Company could obtain from a
willing buyer for shares sold by the Company for authorized but unissued shares,
as such price shall be determined by mutual agreement of the Company and the
Holder of this Warrant.

        4.     NO FRACTIONAL SHARES OR SCRIP

        No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. As to any fraction of a share, which
Holder would otherwise be entitled to purchase upon such exercise, the Company
shall pay a cash adjustment in respect of such final fraction in an amount equal
to such fraction multiplied by the Exercise Price.

        5.     CHARGES, TAXES AND EXPENSES

        Issuance of certificates for Warrant Shares shall be made without charge
to the Holder for any issue or transfer tax or other incidental expense in
respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name
of the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event certificates for Warrant Shares are to be
issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder; and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto.

        6.     CLOSING OF BOOKS

        The Company will not close its stockholder books or records in any
manner which prevents the timely exercise of this Warrant.

        7.     TRANSFER, DIVISION AND COMBINATION

               (a)    This Warrant may not be sold, transferred, assigned or
hypothecated by the Holder except to (i) one or more persons, each of whom on
the date of transfer is an officer of the Holder; (ii) a general partnership or
general partnerships, the general partners of which are the Holder and one or
more persons, each of whom on the date of transfer is an officer of the Holder;
(iii) a successor to the Holder in any merger or consolidation; (iv) a purchaser
of all or substantially all of the Holder's assets; (v) any person receiving
this Warrant from one or more of the persons listed in this Section 15(c) at
such person's death pursuant to will, trust or the laws of intestate succession,
or (vi) if otherwise in compliance with applicable securities laws,

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after one year from the date of this Warrant, any person receiving the Warrant
from the persons listed in this Section 7(a). Subject to compliance with any
applicable securities laws and Section 18(g), transfer of this Warrant and all
rights hereunder, in whole or in part, shall be registered on the books of the
Company to be maintained for such purpose, upon surrender of this Warrant at the
principal office of the Company, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or
its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued. Notwithstanding the above, the Holder shall not transfer
this Warrant or any rights hereunder to any person or entity which is then
engaged in a business that is, in the reasonable judgement of the Company, in
direct competition with the Company.

               (b)    This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 7(a), as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

               (c)    The Company shall prepare, issue and deliver at its own
expense (other than transfer taxes) the new Warrant or Warrants under this
Section 7.

               (d)    The Company agrees to maintain, at its aforesaid office,
books for the registration and the registration of transfer of the Warrants.

        8.     NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE

        This Warrant does not entitle the Holder to any voting rights or other
rights as a shareholder of the Company prior to the exercise hereof. Upon the
surrender of this Warrant and the payment of the aggregate Exercise Price, the
Warrant Shares so purchased shall be and be deemed to be issued to such Holder
as the record owner of such shares as of the close of business on the later of
the date of such surrender or payment.

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        9.     LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT

        The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant or any stock certificate relating to the Warrant Shares, and in
case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it (which shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

        10.    SATURDAYS, SUNDAYS, HOLIDAYS, ETC.

        If the last or appointed day for the taking of any action or the
expiration of any right required or granted herein shall be a Saturday, Sunday
or a legal holiday, then such action may be taken or such right may be exercised
on the next succeeding day not a Saturday, Sunday or legal holiday.

        11.    ADJUSTMENTS OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES

        The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time
upon the happening of any of the following. In case the Company shall (i) pay a
dividend in shares of Common Stock or make a distribution in shares of Common
Stock to holders of its outstanding Common Stock, (ii) subdivide its outstanding
shares of Common Stock into a greater number of shares, (iii) combine its
outstanding shares of Common Stock into a smaller number of shares of Common
Stock, or (iv) issue any shares of its capital stock in a reclassification of
the Common Stock, then the number of Warrant Shares purchasable upon exercise of
this Warrant immediately prior thereto shall be adjusted so that the Holder
shall be entitled to receive the kind and number of Warrant Shares or other
securities of the Company which it would have owned or have been entitled to
receive had such Warrant been exercised in advance thereof. Upon each such
adjustment of the kind and number of Warrant Shares or other securities of the
Company which are purchasable hereunder, the Holder shall thereafter be entitled
to purchase the number of Warrant Shares or other securities resulting from such
adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable pursuant hereto immediately prior to
such adjustment and dividing by the number of Warrant Shares or other securities
of the Company resulting from such adjustment. An adjustment made pursuant to
this paragraph shall become effective immediately after the effective date of
such event retroactive to the record date, if any, for such event.

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        12.    EFFECT OF REORGANIZATION

               (a)    Reorganization--No Change in Control. Upon a merger,
consolidation, acquisition of all or substantially all of the property or stock,
liquidation or other reorganization of the Company (collectively, a
"Reorganization") during the Exercise Period, as a result of which the
shareholders of the Company receive cash, stock or other property in exchange
for their shares of Common Stock and the holders of the Company's voting equity
securities immediately prior to such Reorganization together own a majority
interest of the voting equity securities of the successor corporation
immediately following such Reorganization, lawful provision shall be made so
that the Holder shall thereafter be entitled to receive, upon exercise of this
Warrant, the number of shares of securities of the successor corporation
resulting from such Reorganization (and cash and other property), to which a
holder of the Warrant Shares issuable upon exercise of this Warrant would have
been entitled in such Reorganization if this Warrant had been exercised
immediately prior to such Reorganization. In any such case, appropriate
adjustment (as determined in good faith by the Company's Board of Directors)
shall be made in the application of the provisions of this Warrant with respect
to the rights and interest of the Holder after the Reorganization to the end
that the provisions of this Warrant (including adjustments of the Exercise Price
and the number and type of securities purchasable pursuant to the terms of this
Warrant) shall be applicable after that event, as near as reasonably may be, in
relation to any shares deliverable after that event upon the exercise of this
Warrant.

               (b)    Reorganization--Change in Control/Termination of Warrant.
Upon Reorganization during the Exercise Period, as a result of which the
shareholders of the Company receive cash, stock or other property in exchange
for their shares of Common Stock and the holders of the Company's voting equity
securities immediately prior to such Reorganization together do not own at least
a majority interest of the voting equity securities of the successor corporation
(or its parent) immediately following such Reorganization, the Holder shall be
given notice of such proposed action as provided in Section 18(d). The Holder
may attend the meeting of the Company's shareholders at which such action is
considered and voted upon. If the proposed action is approved according to
applicable law, the Holder shall be so notified in writing by the Company by
registered or certified mail promptly, but in no event less than 10 business
days before the effectiveness of the Reorganization. Notwithstanding the period
of exercisability stated on the face of this Warrant, this Warrant shall become
forever null and void to the extent not exercised on or before 5:00 p.m.,
Eastern time, on the day immediately prior to the date of such Reorganization.
The Holder shall have the right to condition its exercise of the Warrant
hereunder upon the closing of such Reorganization.

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        13.    VOLUNTARY ADJUSTMENT BY THE COMPANY

        The Company may at any time during the Exercise Period reduce the then
current Exercise Price to any amount and for any period of time deemed
appropriate by the Board of Directors of the Company.

        14.    NOTICE OF ADJUSTMENT

        Whenever the number of Warrant Shares or number or kind of securities or
other property purchasable upon the exercise of this Warrant or the Exercise
Price is adjusted, as herein provided, the Company shall promptly mail by
registered or certified mail, return receipt requested, to the Holder notice of
such adjustment or adjustments setting forth the number of Warrant Shares (and
other securities or property) purchasable upon the exercise of this Warrant and
the Exercise Price of such Warrant Shares (and other securities or property)
after such adjustment, setting forth a brief statement of the facts requiring
such adjustment and setting forth the computation by which such adjustment was
made. Such notice, in the absence of manifest error, shall be conclusive
evidence of the correctness of such adjustment.

        15.    NOTICE OF CORPORATE ACTION

        If at any time:

               (a)    the Company shall take a record of the holders of its
Common Stock for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its
indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right; or

               (b)    there shall be any capital reorganization of the Company,
any reclassification or recapitalization of the capital stock of the Company or
any consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation or,

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

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 20 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution,

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liquidation or winding up, at least 20 days' prior written notice of the date
when the same shall take place. Such notice in accordance with the foregoing
clause also shall specify (i) the date on which any such record is to be taken
for the purpose of such dividend, distribution or right, the date on which the
holders of Common Stock shall be entitled to any such dividend, distribution or
right, and the amount and character thereof, and (ii) the date on which any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up is to take place and the
time, if any such time is to be fixed, as of which the holders of Common Stock
shall be entitled to exchange their Warrant Shares for securities or other
property deliverable upon such disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 18(d).

        16.    AUTHORIZED SHARES

        The Company covenants that during the period the Warrant is outstanding,
it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the
exercise of any purchase rights under this Warrant. The Company further
covenants that its issuance of this Warrant shall constitute full authority to
its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. The Company will take all
such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of the Principal Market upon which the Common
Stock may be listed.

        The Company will (a) not increase the par value of any Warrant Shares
above the amount payable therefor upon such exercise immediately prior to such
increase in par value, (b) take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use
commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
necessary to enable the Company to perform its obligations under this Warrant.

        Before taking any action which would result in an adjustment in the
number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

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        17.    REGISTRATION RIGHTS

        The Holder will be entitled to the registration rights set out in
attached Appendix A.

        18.    MISCELLANEOUS

               (a)    Jurisdiction. This Warrant shall constitute a contract
under the laws of Nevada without regard to its conflict of law, principles or
rules.

               (b)    Restrictions. The Holder acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered, will have
restrictions upon resale imposed by state and federal securities laws.

               (c)    Nonwaiver and Expenses. No course of dealing or any delay
or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice Holder's rights, powers or
remedies, notwithstanding all rights hereunder terminate on the expiration of
the Exercise Period. If the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable
attorneys' fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

               (d)    Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) hand delivered,
(ii) deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by facsimile, addressed as set forth below or to
such other address as such party shall have specified most recently by written
notice. Any notice or other communication required or permitted to be given
hereunder shall be deemed effective (i) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received)
or (ii) on the first business day following the date of sending by reputable
courier service, fully prepaid, addressed to such address, or (iii) upon actual
receipt of such mailing, if mailed. The addresses for such communications shall
be with respect to the Holder of this Warrant or of Warrant Shares issued
pursuant thereto, addressed to such Holder at its last

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known address or facsimile number appearing on the books of the Company
maintained for such purposes, or with respect to the Company, to the address
provided on the signature page hereof. Any party hereto may from time to time
change its address for notices by giving at least ten (10) days written notice
of such changed address to the other party hereto.

               (e)    Limitation of Liability. No provision hereof, in the
absence of affirmative action by Holder to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to any
liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

               (f)    Remedies. Holder, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

               (g)    Successors and Assigns. Subject to applicable securities
laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the
successors and permitted assigns of Holder. The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant Shares. This
Warrant may not be transferred or assigned without the consent of the Company,
except to a partner, member shareholder or affiliate of the holder.

               (h)    Amendment. This Warrant may be modified or amended or the
provisions hereof waived with the written consent of the Company and the Holder.

               (i)    Severability. Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

               (j)    Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                                  *************

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        IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

        Dated: December 21, 2001

                                          ACRES GAMING INCORPORATED

                                          By: /s/ Patrick Cavanaugh
                                              Patrick Cavanaugh, Senior
                                              Vice-President and CFO

                                          7115 Amigo, Suite 150
                                          Las Vegas, NV 89119

                                          ROTH CAPITAL PARTNERS, LLC

                                          By: /s/ Aaron M. Gurewitz
                                          Its: Managing Director

                                          24 Corporate Plaza
                                          Newport Beach, CA 92660

                                                                         PAGE 12
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                               NOTICE OF EXERCISE

To:     Acres Gaming Incorporated

        (1)    The undersigned hereby elects to purchase ________ Warrant Shares
(the "Common Stock"), of Acres Gaming Incorporated pursuant to the terms of the
attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

        (2)    Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

                         _______________________________

        The Warrant Shares shall be delivered to the following:

                         _______________________________

                         _______________________________

                         _______________________________

                                   [PURCHASER]

                                   By: ______________________________________
                                       Name:
                                       Title:

                                       Dated:  ________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

                FOR VALUE RECEIVED, the foregoing Warrant and all rights
        evidenced thereby are hereby assigned to

        _______________________________________________ whose address is

        _______________________________________________________________________,

        _______________________________________________________________.

        Dated:  ______________, _______

                             Holder's Signature: _______________________________

                             Holder's Address:   _______________________________

                                                 _______________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

<PAGE>

                          NET ISSUANCE ELECTION NOTICE

To: ACRES GAMING INCORPORATED           Date:__________________

        The undersigned hereby elects under Section 3 of the attached Warrant to
surrender the right to purchase _____ shares of Common Stock pursuant to the
attached Warrant. The Certificate(s) for the shares issuable upon such net
issuance election shall be issued in the name of the undersigned or as otherwise
indicated below.

Signature:

Name for Registration:

Mailing Address:

                                      NOTE

        The execution to the foregoing Notice of Exercise must exactly
correspond to the name of the Holder on the Warrant.

<PAGE>

                                   APPENDIX A

                               REGISTRATION RIGHTS

Section 1. Definitions.

        "Effective Date" means the date the Registration Statement is declared
effective.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended.

        "Registrable Securities" means the Warrant Shares issuable or issued
upon exercise of the Warrant.

        "Registration Statement" means a registration statement on Form S-3 (if
use of such form is then available to the Company pursuant to the rules of the
SEC and, if not, on such other form promulgated by the SEC for which the Company
then qualifies and which counsel for the Company shall deem appropriate, and
which form shall be available for the resale by the Holders of the Securities to
be registered thereunder in accordance with the provisions of this Agreement and
in accordance with the intended method of distribution of such securities), for
the registration of the resale by the Holders of the Securities under the
Securities Act.

        "Rule 144" means Rule 144 promulgated by the SEC pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC having substantially the same
effect as such Rule.

        "Rule 416" means Rule 416 promulgated by the SEC pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC having substantially the same
effect as such Rule.

        "Securities Act" means the Securities Act of 1933, as amended.

Section 2. Restrictions on Transfer.

        Each Holder acknowledges and understands that prior to the registration
of the Registrable Securities as provided herein, the Securities are "restricted
securities" as defined in Rule 144. Each Holder understands that no disposition
or transfer of the Securities may be made by Holder in the absence of (i) an
opinion of counsel to the Holder, in form and substance reasonably satisfactory
to the Company, that such

                                                                          Page 1
<PAGE>

transfer may be made without registration under the Securities Act or (ii) such
registration.

        With a view to making available to the Holders the benefits of Rule 144
or any other similar rule or regulation of the SEC that may at any time permit
the Holders to sell securities of the Company to the public without
registration, the Company agrees to:

        (a)    comply with the provisions of paragraph (c)(1) of Rule 144;

        (b)    file with the SEC in a timely manner all reports and other
documents required to be filed with the SEC pursuant to Section 13 or 15(d)
under the Exchange Act by companies subject to either of such sections,
irrespective of whether the Company is then subject to such reporting
requirements; and

        (c)    upon request by the Company's transfer agent (the "Transfer
Agent"), the Company shall provide the Transfer Agent an opinion of counsel,
which opinion shall be reasonably acceptable to the Transfer Agent, that the
Holder has complied with the applicable conditions of Rule 144 (or any similar
provision then in force) under the Securities Act.

Section 3. Registration Rights With Respect to the Securities.

        (a)    The Company agrees that it will prepare and file with the SEC,
within 30 calendar days after the Initial Exercise Date, a registration
statement on Form S-3 (or such other appropriate registration statement form)
under the Securities Act at the sole expense of the Company (except as provided
in Section 3(c) hereof), in respect of the Holders, so as to permit the resale
of the Registrable Securities under the Act by the Holders as selling
stockholders and not as underwriters.

        (b)    The Company shall cause such Registration Statement to become
effective within 60 calendar days (120 calendar days in the event of a "full
review" by the SEC) after the Initial Exercise Date and shall request
acceleration of effectiveness within 5 days of SEC clearance. The number of
shares designated in the Registration Statement to be registered shall include
all the Warrant Shares. Notwithstanding anything herein to the contrary, if the
only reason for the delay in effectiveness relates to an Holder's affiliation
with a registered broker-dealer, the failure of such Holder to disclose the
individuals that exercise voting and/or investment powers over the shares of
common stock to be sold by such Holder or the failure of such Holder to disclose
the Holder's beneficial ownership of the common stock, the aforementioned time
periods as to effectiveness shall be tolled accordingly.

                                                                          Page 2
<PAGE>

        (c)    The Company will maintain the Registration Statement or
post-effective amendment filed under this Section 3 effective under the
Securities Act until the earlier of (i) the date that none of the Registrable
Securities covered by such Registration Statement are or may become issued and
outstanding, (ii) the date that all of the Registrable Securities have been sold
pursuant to such Registration Statement, (iii) the date the Holders receive an
opinion of counsel to the Company, which counsel shall be reasonably acceptable
to the Holders, that the Registrable Securities may be sold under the provisions
of Rule 144 without limitation as to volume, (iv) the date that all Registrable
Securities have been otherwise transferred to persons who may trade such shares
without restriction under the Securities Act, and the Company has delivered a
new certificate or other evidence of ownership for such securities not bearing a
restrictive legend (except as otherwise required pursuant to the Company's
Articles of Incorporation), or (v) three (3) years from the Effective Date.

        (d)    All fees, disbursements and out-of-pocket expenses and costs
incurred by the Company in connection with the preparation and filing of the
Registration Statement hereunder and in complying with applicable securities and
Blue Sky laws (including, without limitation, all attorneys' fees of the
Company) shall be borne by the Company. The Holders shall bear the cost of
underwriting and/or brokerage discounts, fees and commissions, if any,
applicable to the Securities being registered and the fees and expenses of their
counsel. The Holders and their counsel shall have a reasonable period, not to
exceed 5 trading days, to review the proposed Registration Statement or any
amendment thereto, prior to filing with the SEC, and the Company shall provide
each Holder with copies of any comment letters received from the SEC staff with
respect to the Registration Statement that pertain specifically to this
transaction or the selling shareholders and their plan of distribution within 2
trading days of receipt thereof. The Company shall qualify any of the securities
for sale in such states as any Holder reasonably designates and shall furnish
indemnification in the manner provided in Section 6 hereof. However, the Company
shall not be required to qualify in any state which will require an escrow or
other restriction relating to the Company and/or the sellers, or which will
require the Company to qualify to do business in such state or require the
Company to file therein any general consent to service of process. The Company
at its expense will supply the Holders with copies of the applicable
Registration Statement and the prospectus included therein and other related
documents in such quantities as may be reasonably requested by the Holders.

        (e)    The Company shall not be required by this Section 3 to include a
Holder's Registrable Securities in any Registration Statement which is to be
filed if, in the opinion of counsel for both the Holder and the Company (or,
should they not agree, in the opinion of another counsel experienced in
securities law matters

                                                                          Page 3
<PAGE>

acceptable to counsel for the Holder and the Company) the proposed offering or
other transfer as to which such registration is requested is exempt from
applicable federal and state securities laws and would result in all purchasers
or transferees obtaining securities which are not "restricted securities", as
defined in Rule 144 under the Securities Act.

        (f)    If at any time or from time to time after the effective date of
any Registration Statement, the Company notifies the Holders in writing of the
existence of a Potential Material Event (as defined in Section 3(g) below), the
Holders shall not offer or sell any Registrable Securities or Warrant Shares or
engage in any other transaction involving or relating to Registrable Securities
or Warrant Shares or convert or exercise any of the Registrable Securities or
Warrant Shares (except that, a Holder may elect to convert or exercise the
Registrable Securities or Warrant Shares during such period provided such Holder
enters into a confidentiality agreement with the Company pertaining only to the
information requiring such blackout period, the Company discloses such
information to such Holder, and such information shall be publicly disclosed at
the end of such blackout period), from the time of the giving of notice with
respect to a Potential Material Event until the Holders receive written notice
from the Company that such Potential Material Event either has been disclosed to
the public or no longer constitutes a Potential Material Event; provided,
however, that the Company may not so suspend the right to such holders of
Registrable Securities for more than twenty (20) calendar days in the aggregate
during any twelve month period, during the period the Registration Statement is
required to be in effect. The Company must give the Holders notice in writing
promptly upon knowledge that such a blackout period (without indicating the
nature of such blackout period) will occur but in no event less than one (1)
trading day prior to the first day of the blackout period.

        (g)    "Potential Material Event" means any of the following: (a) the
possession by the Company of material information not ripe for disclosure in a
registration statement, as determined in good faith by the Chief Executive
Officer or the Board of Directors of the Company that disclosure of such
information in a Registration Statement would be detrimental to the business and
affairs of the Company; or (b) any material engagement or activity by the
Company which would, in the good faith determination of the Chief Executive
Officer or the Board of Directors of the Company, be adversely affected by
disclosure in a registration statement at such time, which determination shall
be accompanied by a good faith determination by the Chief Executive Officer or
the Board of Directors of the Company that the applicable Registration Statement
would be materially misleading absent the inclusion of such information.

                                                                          Page 4
<PAGE>

Section 4. Cooperation with Company.

        The Holders will cooperate with the Company in all respects in
connection with this Agreement, including timely supplying all information
reasonably requested by the Company (which shall include all information
regarding the Holders and proposed manner of sale of the Registrable Securities
required to be disclosed in any Registration Statement) and executing and
returning all documents reasonably requested in connection with the registration
and sale of the Registrable Securities and entering into and performing their
obligations under any underwriting agreement, if the offering is an underwritten
offering, in usual and customary form, with the managing underwriter or
underwriters of such underwritten offering. Nothing in this Agreement shall
obligate any Holder to consent to be named as an underwriter in any Registration
Statement. The obligation of the Company to register the Registrable Securities
shall be absolute and unconditional as to those securities which the SEC will
permit to be registered without naming the Holders as underwriters.

Section 5.  Registration Procedures.

        If and whenever the Company is required by any of the provisions of this
Agreement to effect the registration of any of the Registrable Securities under
the Securities Act, the Company shall (except as otherwise provided in this
Agreement), as expeditiously as possible, subject to the Holders' assistance and
cooperation as reasonably required with respect to each Registration Statement:

        (a)    (i) prepare and file with the SEC such amendments and supplements
to the Registration Statement and the prospectus used in connection therewith as
may be necessary to keep such Registration Statement effective and to comply
with the provisions of the Securities Act with respect to the sale or other
disposition of all Registrable Securities covered by such Registration Statement
whenever the Holders shall desire to sell or otherwise dispose of the same
(including prospectus supplements with respect to the sales of Registrable
Securities from time to time in connection with a registration statement
pursuant to Rule 415 promulgated under the Securities Act) and (ii) take all
lawful action such that each of (A) the Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading and (B) the prospectus forming part of the
Registration Statement, and any amendment or supplement thereto, does not at any
time during the registration period include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading;

                                                                          Page 5
<PAGE>

        (b)    (i) prior to the filing with the SEC of any Registration
Statement (including any amendments thereto) and the distribution or delivery of
any prospectus (including any supplements thereto), provide draft copies thereof
to the Holders as required by Section 3(d) and reflect in such documents all
such comments as the Holders (and their counsel) reasonably may propose
respecting the Holders and plan of distribution sections (or equivalents); (ii)
furnish to each Holder such numbers of copies of a prospectus including a
preliminary prospectus or any amendment or supplement to any prospectus, as
applicable, in conformity with the requirements of the Securities Act, and such
other documents, as such Holder may reasonably request in order to facilitate
the public sale or other disposition of the Registrable Securities owned by such
Holder; and (iii) provide to each Holder copies of any comments and
communications from the SEC relating to the Registration Statement, if lawful to
do so;

        (c)    register and qualify the Registrable Securities covered by the
Registration Statement under such other securities or blue sky laws of such
jurisdictions as the Holders shall reasonably request (subject to the
limitations set forth in Section 3(d) above), and do any and all other acts and
things which may be necessary or advisable to enable each Holder to consummate
the public sale or other disposition in such jurisdiction of the Registrable
Securities owned by such Holder;

        (d)    list such Registrable Securities on the Nasdaq Small Cap Market,
if the listing of such Registrable Securities is then permitted under the rules
of such market;

        (e)    notify each Holder at any time when a prospectus relating thereto
covered by the Registration Statement is required to be delivered under the
Securities Act, of the happening of any event of which it has knowledge as a
result of which the prospectus included in the Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing, subject
to Section 3(f), and the Company shall prepare and file a curative amendment
under Section 5(a) as quickly as commercially possible and during such period,
the Holders shall not make any sales of Registrable Securities pursuant to the
Registration Statement and during such period.

        (f)    as promptly as practicable after becoming aware of such event,
notify each Holder who holds Registrable Securities subject to the Registration
Statement (or, in the event of an underwritten offering, the managing
underwriters) of the issuance by the SEC of any stop order or other suspension
of the effectiveness of the Registration Statement at the earliest possible time
and take all lawful action to effect the withdrawal, recession or removal of
such stop order or other suspension;

                                                                          Page 6
<PAGE>

        (g)    cooperate with the Holders to facilitate the timely preparation
and delivery of certificates for the Registrable Securities to be offered
pursuant to the Registration Statement and enable such certificates for the
Registrable Securities to be in such denominations or amounts, as the case may
be, as the Holders reasonably may request and registered in such names as the
Holders may request; and, within 3 trading days after a Registration Statement
which includes Registrable Securities is declared effective by the SEC, deliver
and cause legal counsel selected by the Company to deliver to the transfer agent
for the Registrable Securities (with copies to the Holders) an appropriate
instruction and, to the extent necessary, an opinion of such counsel;

        (h)    take all such other lawful actions reasonably necessary to
expedite and facilitate the disposition by the Holders of their Registrable
Securities in accordance with the intended methods therefor provided in the
prospectus which are customary for issuers to perform under the circumstances;

        (i)    in the event of an underwritten offering, promptly include or
incorporate in a prospectus supplement or post-effective amendment to the
Registration Statement such information as the managers reasonably agree should
be included therein and to which the Company does not reasonably object and make
all required filings of such prospectus supplement or post-effective amendment
as soon as practicable after it is notified of the matters to be included or
incorporated in such prospectus supplement or post-effective amendment; and

        (j)    maintain a transfer agent and registrar for its common stock.

Section 6. Indemnification.

        (a)    To the maximum extent permitted by law, the Company agrees to
indemnify and hold harmless the Holders and each person, if any, who controls a
Holder within the meaning of the Securities Act (each a "Distributing Holder")
against any losses, claims, damages or liabilities, joint or several (which
shall, for all purposes of this Agreement, include, but not be limited to, all
reasonable costs of defense and investigation and all reasonable attorneys' fees
and expenses), to which the Distributing Holder may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement, or any related final prospectus or amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading; provided, however, that
the Company will not be liable in any such case to the extent, and only to the
extent, that any such loss, claim, damage or liability arises out of or is based
upon an untrue

                                                                          Page 7
<PAGE>

statement or alleged untrue statement or omission or alleged omission made in
such Registration Statement, preliminary prospectus, final prospectus or
amendment or supplement thereto in reliance upon, and in conformity with,
written information furnished to the Company by the Distributing Holder, its
counsel, affiliates or any underwriter, specifically for use in the preparation
thereof or by such Holder's failure to deliver to the purchaser a copy of the
most recent prospectus (including any amendments or supplements thereto). This
indemnity agreement will be in addition to any liability, which the Company may
otherwise have.

        (b)    To the maximum extent permitted by law, each Distributing Holder
agrees that it will indemnify and hold harmless the Company, and each officer
and director of the Company or person, if any, who controls the Company within
the meaning of the Securities Act, against any losses, claims, damages or
liabilities (which shall, for all purposes of this Agreement, include, but not
be limited to, all reasonable costs of defense and investigation and all
reasonable attorneys' fees and expenses) to which the Company or any such
officer, director or controlling person may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in any Registration
Statement, or any related final prospectus or amendment or supplement thereto,
or arise out of or are based upon the omission or the alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, but in each case only to the extent that such
untrue statement or alleged untrue statement or omission or alleged omission was
made in such Registration Statement, final prospectus or amendment or supplement
thereto in reliance upon, and in conformity with, written information furnished
to the Company by such Distributing Holder, its counsel, affiliates or any
underwriter, specifically for use in the preparation thereof. This indemnity
agreement will be in addition to any liability, which the Distributing Holder
may otherwise have. Notwithstanding anything to the contrary herein, the
Distributing Holder shall be liable under this Section 6(b) for only that amount
as does not exceed the net proceeds to such Distributing Holder as a result of
the sale of Registrable Securities pursuant to the Registration Statement.

        (c)    Promptly after receipt by an indemnified party under this Section
6 of notice of the commencement of any action against such indemnified party,
such indemnified party will, if a claim in respect thereof is to be made against
the indemnifying party under this Section 6, notify the indemnifying party in
writing of the commencement thereof; but the omission so to notify the
indemnifying party will not relieve the indemnifying party from any liability
which it may have to any indemnified party except to the extent the failure of
the indemnified party to provide

                                                                          Page 8
<PAGE>

such written notification actually prejudices the ability of the indemnifying
party to defend such action. In case any such action is brought against any
indemnified party, and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate in, and, to the
extent that it may wish, jointly with any other indemnifying party similarly
notified, assume the defense thereof, subject to the provisions herein stated
and after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party will not be
liable to such indemnified party under this Section 6 for any legal or other
expenses subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation, unless the
indemnifying party shall not pursue the action to its final conclusion. The
indemnified parties as a group shall have the right to employ one separate
counsel in any such action and to participate in the defense thereof, but the
fees and expenses of such counsel shall not be at the expense of the
indemnifying party if the indemnifying party has assumed the defense of the
action with counsel reasonably satisfactory to the indemnified party unless (i)
the employment of such counsel has been specifically authorized in writing by
the indemnifying party, or (ii) the named parties to any such action (including
any impleaded parties) include both the indemnified party and the indemnifying
party and the indemnified party shall have been advised by its counsel that
there may be one or more legal defenses available to the indemnifying party
different from or in conflict with any legal defenses which may be available to
the indemnified party or any other indemnified party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of such indemnified party, it being understood, however, that the
indemnifying party shall, in connection with any one such action or separate but
substantially similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances, be liable only for the reasonable
fees and expenses of one separate firm of attorneys for the indemnified party,
which firm shall be designated in writing by the indemnified party). No
settlement of any action against an indemnified party shall be made without the
prior written consent of the indemnified party, which consent shall not be
unreasonably withheld so long as such settlement includes a full release of
claims against the indemnified party.

        All fees and expenses of the indemnified party (including reasonable
costs of defense and investigation in a manner not inconsistent with this
Section and all reasonable attorneys' fees and expenses) shall be paid to the
indemnified party, as incurred, within ten (10) trading days of written notice
thereof to the indemnifying party; provided, that the indemnifying party may
require such indemnified party to undertake to reimburse all such fees and
expenses to the extent it is finally judicially determined that such indemnified
party is not entitled to indemnification hereunder.

                                                                          Page 9
<PAGE>

Section 7. Contribution.

        In order to provide for just and equitable contribution under the
Securities Act in any case in which (i) the indemnified party makes a claim for
indemnification pursuant to Section 6 hereof but is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact
that the express provisions of Section 6 hereof provide for indemnification in
such case, or (ii) contribution under the Securities Act may be required on the
part of any indemnified party, then the Company and the applicable Distributing
Holder shall contribute to the aggregate losses, claims, damages or liabilities
to which they may be subject (which shall, for all purposes of this agreement,
include, but not be limited to, all reasonable costs of defense and
investigation and all reasonable attorneys' fees and expenses), in either such
case (after contribution from others) on the basis of relative fault as well as
any other relevant equitable considerations. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company on the one hand
or the applicable Distributing Holder on the other hand, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Distributing Holder
agree that it would not be just and equitable if contribution pursuant to this
Section 7 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in this Section 7. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this Section 7 shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

        Notwithstanding any other provision of this Section 7, in no event shall
any Holder be required to undertake liability to any person under this Section 7
for any amounts in excess of the dollar amount of the proceeds received by such
Holder from the sale of such Holder's Registrable Securities (after deducting
any fees, discounts and commissions applicable thereto) pursuant to any
Registration Statement under which such Registrable Securities are registered
under the Securities Act.

                                                                         Page 10
<PAGE>

Section 8. Additional Covenants of the Company.

        The Company agrees that, for so long as it shall be required to maintain
the effectiveness of the Registration Statement, it shall file all reports and
information required to be filed by it with the SEC in a timely manner and take
all such other action so as to maintain such eligibility for the use of such
form.

                                                                         Page 11<PAGE>

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED AS * . A COMPLETE, UNREDACTED VERSION OF THIS EXHIBIT
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                                                    EXHIBIT 10.1

                                                           Agreement No. 02-0273

                                LICENSE AGREEMENT

        This Agreement is made effective the 8th day of January, 2002, by and
between Wisconsin Alumni Research Foundation (hereinafter called "WARF"), a
nonstock, nonprofit Wisconsin corporation, and Geron Corporation (hereinafter
called "Geron"), a corporation organized and existing under the laws of
Delaware;

        WHEREAS, WARF owns certain inventions that are described in the
"Licensed Patents" defined below;

        WHEREAS, WARF and Geron had previously entered into a license agreement,
Agreement No. 95-0208 dated January 1, 1996, as amended on March 19, 1997 and
March 1, 1998, (the "First License") and a license agreement, Agreement No.
99-0027 dated April 23, 1999, as amended on October 1, 1999, January 28, 2000,
January 30, 2001, February 21, 2001, May 29, 2001 and June 25, 2001 which
superseded the First License (the "Second License");

        WHEREAS, WARF and Geron desire to enter into this Agreement to restate
and modify the agreement between the parties; and

        WHEREAS, WARF and Geron agree that this Agreement shall supersede in
their entirety all prior agreements between the parties relating to the subject
matter of this Agreement, except the Settlement Agreement of even date herewith.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth below, the parties covenant and agree as follows:

        Section 1. Definitions.

        For the purpose of this Agreement, the Appendix A definitions shall
apply.

        Section 2. Grant.

               A.     Licenses.

                      (i)    WARF hereby grants to Geron an exclusive license,
limited to the Exclusive Field and the Licensed Territory, under the Licensed
Patents to make, have made, develop, have developed, use, sell, offer for sale,
and import Products.

                      (ii)   WARF hereby grants to Geron a nonexclusive license,
limited to the Nonexclusive Field and the Licensed Territory, under the Licensed
Patents to make, have made, develop, have developed, use, sell, offer for sale,
and import Products.

                      (iii)  WARF hereby grants to Geron a nonexclusive license,
limited to the Research Products Field and the Licensed Territory, under the
Licensed Patents to make, have made, develop, have developed, use, sell, offer
for sale, and import Research Products.

                      (iv)   WARF hereby grants to Geron a nonexclusive license,
without the right to grant sublicenses, limited to the Research-Related Field
and the Licensed Territory, under the Licensed Patents to make, have made,
develop, have developed, use, sell, offer for sale, and import Products and
Research Products.

                                       1
<PAGE>

                      (v)    WARF hereby grants to Geron a nonexclusive license,
limited to the Licensed Territory, to use the Licensed Patents for Internal
Research Purposes.

               B.     Sublicenses.

                      (i)    Geron may grant written sublicenses to third
parties under the exclusive licenses granted herein in the Exclusive Field. Any
agreement granting a sublicense shall state that the sublicense is subject to
the termination of this Agreement. Geron shall require that its sublicensee(s)
comply with all requirements of this Agreement (including without limitation
restrictions on the right to use and transfer Materials) and Geron shall have
the same responsibility for the activities of any sublicensee as if the
activities were directly those of Geron. Any conversion of Geron's exclusive
license to a nonexclusive license pursuant to Section 3A(iii)(d) below shall not
affect a sublicense existing prior to the date of such conversion.

                      (ii)   Geron may grant written sublicenses to third
parties under the nonexclusive licenses granted herein in the Nonexclusive Field
and the Research Products Field, but only:

                      (a)    To Contract Service Providers to enable the
        Contract Service Provider to perform services in support of Geron's
        commercialization of Products or Research Products, under a written
        contract with Geron, at Geron's expense, and pursuant to protocols or
        specifications developed by Geron. Such a sublicense may include a
        license to make or use the Materials, Products, or Research Products
        solely for the purpose of providing the services, or to sell Products or
        Research Products as Geron's agent, but not to sell or transfer any of
        them for any other purpose.

                      (b)    To Collaborators to enable the Collaborator to
        engage in a project of collaborative research with Geron on Materials
        and cells derived from Materials and/or development of Products or
        Research Products, provided that the project is described and directed
        by Geron. Such a sublicense may include a license to make or use the
        Materials, Products, or Research Products solely for the purpose of the
        project, but not to sell or transfer any of them for any purpose.

                      (c)    To Development Partners to enable the Development
        Partner to develop Products or Research Products collaboratively with
        Geron, provided WARF does not disapprove as provided below. Such a
        sublicense may include a license to make or use the Materials, and to
        make, have made, use, sell, offer for sale, or import Products and/or
        Research Products. At or before the time that Geron signs a term sheet
        with a proposed Development Partner, Geron shall inform WARF in writing,
        in confidence, of the proposed non-economic terms, including Geron's
        role in the collaborative development. WARF shall have the right to
        disapprove such subcontract with a Development Partner only if Geron is
        not participating actively and substantively (e.g. by providing
        research, manufacturing, co-marketing, etc.). If WARF does not inform
        Geron in writing of its disapproval and the reasons for it within ten
        (10) days after Geron informs WARF of the proposed terms, WARF shall be
        deemed to have approved them. If WARF does inform Geron in writing of
        its disapproval and the reasons for it within ten (10) days after Geron
        informs WARF of the proposed terms, and Geron believes WARF's
        disapproval to be unreasonable, Geron may submit the matter to Truncated
        Arbitration.

                      (iii)  Any agreement granting a sublicense under this
Section 2B shall state that the sublicense is subject to the termination of this
Agreement; that the sublicensee is not authorized to transfer any Materials, or
use them for any purpose outside that permitted by the sublicense; and that the
sublicensee will not use Materials originally provided by WARF, WiCell or the
University of Wisconsin to Geron or derived therefrom to perform any of the
following experiments: (a) intermixing of Materials with an intact embryo,
either human or nonhuman; (b) implanting Materials or products of Materials in a
uterus; or (c) attempting to make whole embryos by any method. Geron shall
require that its sublicensee(s) comply with all requirements of this Agreement
(to the extent applicable to the work under the sublicense) and Geron shall have
the same responsibility for the activities of any sublicensee as if the
activities were directly those of Geron. Geron shall provide to WARF, in
confidence, a summary of any sublicense agreement under this Section 2B within
thirty (30) days after execution of such sublicense agreement subject to the
obligation, however, in the case of Development Partners to have earlier
provided the proposed terms as required above in Section 2B(ii)(c).

                      (iv)   In respect to sublicenses granted by Geron under
this Section 2B, Geron shall pay to

                                       2
<PAGE>

WARF an amount equal to what Geron would have been required to pay to WARF had
Geron sold the amount of Products or Research Products sold by such sublicensee.
In addition, if Geron receives any fees, minimum royalties, or other payments in
consideration for any rights granted under a sublicense, except for payments
received by Geron upon achievement of the milestones set forth in Section 4D
(provided that Geron shall be responsible for payment upon achievement of such
milestones by a sublicensee as if Geron itself had achieved such milestones and
shall make payment directly to WARF pursuant to Section 4D), and such payments
are not based directly upon the amount or value of Products or Research Products
sold by the sublicensee, then Geron shall pay WARF * percent (* %) of such
payments in the case of sublicenses under Section 2B(i) and * percent (* %) of
such payments in the case of sublicenses under Section 2B(ii), in the manner
specified in Section 4E. WARF recognizes that payments received from
sublicensees to fund research are not consideration for rights granted under the
sublicense and as such research funds are not subject to sharing with WARF
hereunder. However, Geron shall not receive from sublicensees anything of value
in lieu of cash payments (other than equity in another company which can and
will be shared with WARF) in consideration for any sublicense under this
Agreement without the express prior written permission of WARF. Both parties
agree to act in good faith when negotiating the consideration to be paid for
sublicensing and when assessing whether such consideration is subject to sharing
with WARF under this Section 2B(iv). Any disagreement between WARF and Geron
over the consideration to be paid to WARF on account of sublicenses shall be
submitted to Truncated Arbitration.

               C.     License to WARF, WiCell and the University of Wisconsin.

        To the extent permitted by applicable law, Geron hereby grants to WARF,
WiCell and the University of Wisconsin - Madison a nonexclusive, royalty-free,
paid-up research license under any and all inventions made during the term of
the First License or Second License or hereafter made or acquired by Geron to
the extent any such inventions are Improvements. Such license shall be
nontransferable as long as Geron remains an existing and solvent entity but may
be transferable upon bankruptcy or dissolution of Geron other than in the event
of the sale of substantially all of Geron's assets pursuant to Section 8.
"Improvements" shall mean any modification of an invention described in Licensed
Patents which, if unlicensed, would infringe one or more claims of the Licensed
Patents. Geron shall provide WARF with a written, enabling disclosure of each
such invention (such as a U.S. patent application), unambiguously identifying it
as an invention governed by this paragraph, within six (6) months of filing a
patent application thereon.

               D.     Provision of Cell Lines.

        Pursuant to a Material Transfer Agreement dated October 12, 1998, WARF
has provided to Geron certain human embryonic stem cell lines, which constitute
Materials. WARF agrees to provide to Geron any and all additional human
embryonic stem cell lines derived or developed by WARF, WiCell Research
Institute, or the University of Wisconsin-Madison and available for licensing by
WARF or WiCell. WARF will provide such cell lines to Geron with no fee, subject
to the restrictions provided in this Agreement with respect to the use and
transfer of Materials.

               E.     Geron IP Licensing.

                      (i)    If a third party to which WARF has granted a
license for commercialization of Products under the Licensed Patents outside the
Exclusive Field wishes to obtain a license to Geron IP, Geron agrees to grant a
nonexclusive license under such Geron IP to such third party. Such a license
shall be restricted in scope to the scope of the WARF license to such third
party, shall in no event include a license to make, use, or sell Research
Products, and shall be on commercially reasonable terms.

                             (a)    With respect to the structure and
        non-economic terms of the license, if Geron and the third party fail to
        reach agreement, the third party may submit to Truncated Arbitration the
        question of whether Geron's last offer was commercially reasonable. If
        the arbitrator finds that the offer was not commercially reasonable,
        Geron shall make another offer, which if the parties fail to agree shall
        in turn be subject to Truncated Arbitration as provided in the preceding
        sentence. If the arbitrator finds that the offer was commercially
        reasonable, Geron may choose to re-offer the terms or decline to grant a
        license, in Geron's sole discretion.

                             (b)    With respect to the economic terms of the
        license, if Geron and the third party fail to reach agreement, the third
        party may submit to Truncated Arbitration the

                                       3
<PAGE>

        question of what economic terms represent fair market value economic
        terms for the license. Geron and the third party will then each make a
        last offer, and the arbitrator will choose Geron's last offer or the
        third party's last offer, whichever the arbitrator determines to be
        closer to the fair market value ("baseball arbitration").

                             (c)    Notwithstanding the above, if the third
        party is a public company with a market capitalization greater than $200
        million, or a private company with a comparable value, and the third
        party wishes to develop a product for an indication for which Geron has
        submitted a development plan, Geron may at its election propose that the
        third party enter into a commercially reasonable collaboration or
        development partnership rather than a license. The structure and
        non-economic terms and the economic terms of such collaboration or
        development partnership shall be subject to Truncated Arbitration as
        provided above in Section 2E(i)(a) and (b).

                      (ii)   If a governmental or academic or non-profit
research organization to which WARF has granted a license for research (but not
commercialization or distribution of Products or Research Products) under the
Licensed Patents outside the Exclusive Field wishes to obtain a license to Geron
IP, Geron agrees to grant a nonexclusive license under such Geron IP to such
third party. Such a license shall be restricted in scope to the scope of the
WARF license to such third party, shall in no event include a license to make,
use, or sell Products or Research Products, and shall be on commercially
reasonable terms without royalties or other fees (it being understood that Geron
shall not be obligated under this Agreement to accept the terms of the federal
government's CRADA form agreement).

        Section 3. Development Plans and Reporting.

               A.     Development Plans for Exclusive Field.

                      (i)    Geron has submitted, and WARF has accepted,
specific development plans for Products based on each of the three cell types in
the Exclusive Field (the "Specific Exclusive Development Plans"). For purposes
of this Agreement, the milestones in Geron's specific development plans are
understood to be (1) new clinical entity candidate selection, (2) IND filing,
(3) BLA submission, and (4) BLA approval/product launch. A Specific Exclusive
Development Plan may be changed by agreement of the parties, as provided in
Section 3A(ii) below, or unilaterally by Geron because of a missed milestone or
in anticipation of a missed milestone, as provided in Section 3A(iii) below and
subject to the consequences specified in Section 3A(iii). Upon any such change,
the changed Specific Exclusive Development Plan shall supersede all previous
Specific Exclusive Development Plans for that cell type.

                      (ii)   Should Geron desire to make changes to a Specific
Exclusive Development Plan for any reason (including, without limitation, in the
context of a sublicensing, partnership or development agreement), Geron shall
propose such changes to WARF for WARF's written agreement, such agreement not to
be unreasonably withheld. If WARF does not agree and Geron believes WARF's
disagreement with a change to be unreasonable, Geron may submit the matter to
Truncated Arbitration.

                      (iii)  Should Geron miss, or conclude that it will miss, a
milestone set forth in a then-current Specific Exclusive Development Plan, then:

                             (a)    As soon as Geron has missed, or concludes
        that it will miss, a milestone, Geron shall inform WARF and explain in
        writing why the milestone was or may be missed.

                             (b)    If the milestone is or will be missed by
        more than *, then Geron shall revise the milestones in the Specific
        Exclusive Development Plan to account for the delay and inform WARF in
        writing of the revised milestones.

                             (c)    If (and only if) the milestone is or will be
        missed by more than * for a reason within Geron's control, then the
        consequences specified in (d) below shall apply, unless WARF agrees in
        writing to waive the consequences. Reasons "within Geron's control"
        shall be limited exclusively to Resource Allocation (defined below in
        Section 3B) decisions, wherein Geron allocates less than * percent (* %)
        of the projected Resource Allocation set forth in the

                                       4
<PAGE>

        Work Plans or assigns to a project personnel without appropriate
        scientific expertise; except that if WARF finds that either or both of
        the 2002 Work Plans for the cardiomyocyte and pancreatic islet cell
        areas are not reasonable, in WARF's reasonable judgment communicated to
        Geron no later than * , then for the cell type(s) for which the Work
        Plans are found not to be reasonable, reasons "within Geron's control"
        shall thereafter primarily, but not exclusively, be limited to Resource
        Allocation decisions. If the parties disagree as to whether the reason
        was within Geron's control, the issue shall be resolved by Truncated
        Arbitration, which must be requested by one of the parties within ninety
        (90) days of Geron notifying WARF of the missed milestone and the
        reasons for missing it.

                             (d)    For each cell type, the first milestone
        missed for a reason within Geron's control shall result in a * penalty,
        and the second shall result in a * penalty. Such penalties shall be
        payable by Geron to WARF within thirty (30) days after the milestone is
        missed (or, if later, after the conclusion of a Truncated Arbitration
        determining that the milestone was missed for reasons within Geron's
        control). The third milestone missed for the same cell type for a reason
        within Geron's control shall result, at WARF's election, in conversion
        of Geron's license for that cell type from exclusive to non-exclusive.
        If WARF elects such conversion, WARF will notify Geron in writing, and
        the effective date of such conversion shall be thirty (30) days after
        WARF's written notice (or, if later, thirty (30) days after the
        conclusion of a Truncated Arbitration determining that the milestone was
        missed for reasons within Geron's control). Upon such conversion, the
        definitions of Exclusive Field and Nonexclusive Field shall be deemed
        modified accordingly.

               B.     Work Plans for Exclusive Field.

               Geron has submitted, and WARF has found to be reasonable, a
specific work plan (a "Work Plan") for work on the neural cell type in the
calendar year 2002. By *, Geron will submit a Work Plan for work on the
cardiomyocyte and pancreatic islet cell types in the calendar year 2002. Each
Work Plan will detail activities to be taken towards accomplishing the goals set
forth in the Specific Exclusive Development Plan for that cell type, and will
include (a) budget projections, (b) headcount allocations, (c) facilities, and
(d) scientific expertise of personnel allocated to the cell type ((a) through
(d) are collectively defined as "Resource Allocation"). WARF will notify Geron
in writing by * whether WARF considers the 2002 Work Plans for the cardiomyocyte
and pancreatic islet cell types to be reasonable, in WARF's reasonable judgment.
Beginning in 2003 and in each year thereafter, Geron will provide a Work Plan
for that year for each cell type in the Exclusive Field by January 31 of each
year, to inform WARF and to allow WARF to understand the resources being
allocated to the work. Work Plans will not be subject to WARF's approval.

               C.     Development Plans for Nonexclusive Field.

                      (i)    Geron has submitted, and WARF has accepted,
specific development plans for Products based on each of the three cell types in
the Nonexclusive Field (the "Specific Nonexclusive Development Plans"). For
purposes of this Agreement, the milestones in Geron's specific development plans
are understood to be (1) new clinical entity candidate selection, (2) IND
filing, (3) BLA submission, and (4) BLA approval/product launch. A Specific
Nonexclusive Development Plan may be changed by agreement of the parties, as
provided in Section 3C(ii) below, or unilaterally by Geron because of a missed
milestone or in anticipation of a missed milestone, as provided in Section
3C(iii) below. Upon any such change, the changed Specific Nonexclusive
Development Plan shall supersede all previous Specific Nonexclusive Development
Plans for that cell type.

                      (ii)   Should Geron desire to make changes to a Specific
Nonexclusive Development Plan for any reason (including, without limitation, in
the context of a sublicensing, partnership or development agreement), Geron
shall propose such changes to WARF for WARF's written agreement, such agreement
not to be unreasonably withheld. If WARF does not agree and Geron believes
WARF's disagreement with a change to be unreasonable, Geron may submit the
matter to Truncated Arbitration.

                      (iii)  Should Geron miss, or anticipate missing, a
milestone set forth in a Specific Nonexclusive Development Plan, then:

                                       5
<PAGE>

                      (a)    As soon as Geron has missed, or concludes that it
        will miss, a milestone, Geron shall inform WARF and explain in writing
        why the milestone was or may be missed.

                      (b)    If the milestone is or will be missed by more than
        two calendar quarters, then Geron shall revise the milestones in the
        Specific Nonexclusive Development Plan to account for the delay and
        inform WARF in writing of the revised milestones.

                      (c)    Missing a milestone in a Specific Nonexclusive
        Development Plan will not result in any penalty, although it will result
        in an extension of the royalty period pursuant to Section 7A to the
        extent provided in that section.

               D.     Development Reports.

        Within one month following the end of each calendar quarter ending on
March 31, June 30, September 30 and December 31 and until commercial sales of
Products begin for the indications Geron for which Geron has supplied
Development Plans, Geron will supply WARF with a written Development Report
showing Geron's progress toward bringing Products to market in the Exclusive
Field and the Nonexclusive Field.

               E.     Geron's Discretion.

        Except as explicitly stated in this Agreement, all development
activities and strategies and all aspects of Product design and decisions to
market and the like are entirely at the discretion of Geron, and Geron shall
rely entirely on its own expertise with respect thereto.

               F.     Confidentiality of Development Information.

        Geron's Development Plans, Work Plans and Development Reports shall be
considered confidential information subject to the obligations set forth in
Section 19 hereto.

               G.     Review of Development Documentation.

        WARF may, within thirty (30) days of its request, review all
documentation and records relating to Geron's development of Products and
Research Products in the Exclusive Field and the Nonexclusive Field. Geron shall
make such records available at a single United States location. Such review may
be performed by any employee of WARF, or any agent designated by WARF. WARF
shall perform such review at its expense, and not more than once per calendar
year. In the event that WARF's audit reveals an unreported missed milestone, or
a cessation of active development of Products or Research Products in a
particular cell type or cell types for more than one year, the provisions of
Sections 3A(iii)(d), 7A and 7D shall apply.

        Section 4. Consideration.

               A.     License Fee.

        The parties acknowledge that Geron paid WARF a license fee under the
Second License. No additional license fee is payable under this Agreement.

               B.     Patent Prosecution.

                      (i)    Geron agrees to reimburse WARF for a portion of the
costs associated with filing, prosecuting and maintaining the Licensed Patents.
Geron has paid such patent reimbursement for the Licensed Patents up to the date
of this Agreement. In the event that further patents are added to the Licensed
Patents, Geron shall reimburse WARF * per United States patent application
within thirty (30) days after Geron's receipt of an invoice from WARF. For each
such newly added U.S. patent application, Geron shall notify WARF of whether it
desires a PCT application and/or foreign national application to be filed, and,
upon such filings being made by WARF shall reimburse WARF * per PCT application
and * per foreign national application.

                                       6
<PAGE>

                      (ii)   WARF will prosecute all applications until WARF
determines that continued prosecution is unlikely to result in the issuance of a
patent in that country. WARF will timely provide copies of all patent
communications with the U.S. Patent Office or its foreign counterpart to Geron
and allow Geron the opportunity to comment on the prosecution of the Licensed
Patents. If WARF decides to abandon prosecution of an application in a
particular country (excluding abandonment of applications as part of patent
prosecution strategy in favor of continuing application(s) claiming the subject
matter claimed in the abandoned application), or to allow an issued patent
within the Licensed Patents to lapse, WARF shall notify Geron in writing of such
decision at least thirty (30) days before any abandonment or lapse would occur
and Geron may, at its election, continue prosecution of the application or
maintenance of the patent. In the event that Geron does so elect, WARF will
cooperate with Geron as reasonably requested by Geron to facilitate such
continued prosecution or maintenance.

                      (iii)  Geron and WARF hereby agree that they will make all
necessary filings and provide all necessary documentation to allow WARF to apply
for an extension of the patent term for each of the Licensed Patents pursuant to
37 CFR 1.710 et seq.

               C.     Royalty.

                      (i)    Geron agrees to pay to WARF as "earned royalties" a
royalty calculated as a percentage of the Selling Price of Products in
accordance with the terms and conditions of this Agreement. The royalty is
deemed earned as of the earlier of the date the Product or Research Product is
actually sold and paid for, the date an invoice is sent by Geron, or the date a
Product or Research Product is transferred to a third party for any promotional
reasons. The royalty shall remain in effect until no Licensed Patent remains an
enforceable patent (except as extended for Therapeutic Products pursuant to
Section 7A) at the following rates:

                      (a)    * percent (* %) of the Selling Price for
        Therapeutic Products in the Exclusive Field;

                      (b)    * percent (* %) of the Selling Price for Diagnostic
        Products in the Exclusive Field;

                      (c)    * percent (* %) of the Selling Price for
        Therapeutic Products in the Nonexclusive Field;

                      (d)    * percent (* %) of the Selling Price for Diagnostic
        Products in the Nonexclusive Field;

                      (e)    * percent (* %) of the Selling Price for Research
        Products in the Research Products Field; and

                      (f)    between * percent and * percent (* % - * %) of the
        Selling Price of Products or Research Products in the Research-Related
        Field as appropriate to the type of product and market for such product.
        The parties agree to negotiate the royalty rate in good faith upon
        identification or discovery of a Product or Research Product in the
        Research-Related Field.

                      (ii)   Royalties on sales by Geron or its sublicensee of
Products or Research Products that are neither made, used, nor sold in a country
within the Patent Territory shall be subject to reduction as follows:

                      (a)    If Competing Products are sold in a country outside
        the Patent Territory in which Geron or its sublicensees are also selling
        Products or Research Products, and the total sales of the Competing
        Products in that country are greater than or equal to * percent (* %) of
        the total sales of Products or Research Products sold by Geron in that
        country, the royalties otherwise payable by Geron or its sublicensees to
        WARF shall be reduced by * percent (* %).

                      (b)    If Competing Products are sold in a country outside
        the Patent Territory in which Geron or its sublicensees are also selling
        Products or Research Products, and the total sales of the Competing
        Products in that country are greater than or equal to * percent (* %) of
        the

                                       7
<PAGE>

        total sales of Products or Research Products sold by Geron in that
        country, the royalties otherwise payable by Geron or its sublicensees to
        WARF shall be reduced by * percent (* %)

For purposes of this Section 4C(ii), "Patent Territory" means all the countries
in which the Licensed Patents are pending or enforceable at the time Products or
Research Products are sold. The reduction in royalties set forth herein shall be
subject to adjustment each quarter based on the relative amounts (as provided in
(a) and (b) above) of Competing Products and Products or Research Products sold
in a country during the quarter in which a royalty reduction in being applied.
"Competing Products" means products or services that (i) if sold by Geron, would
be Products or Research Products, and (ii) address the same indication as a
Therapeutic Product sold by Geron or its sublicensee, or the same application as
a Diagnostic Product or Research Product sold by Geron or its sublicensee, and
(iii) which are not sold under a royalty-bearing agreement between WARF or
WiCell and the seller of the Competing Products.

                      (iii)  If Geron must make payments to one or more third
parties, pursuant to an arms' length transaction with such third party (which
transaction, in the case of a third party which is a Collaborator, Contract
Service Provider, or Development Partner, is not part of the collaboration with
Geron), during any calendar year to obtain a license or similar right in the
absence of which Geron could not legally make, use or sell the Products or
Research Products, then Geron may deduct * percent (* %) of such third party
payments from royalties payable to WARF with respect to that calendar year,
provided that such deduction does not exceed * percent (* %) of the royalties
payable to WARF under this Agreement during such calendar year.

               D.     Minimum Royalty and Milestone Payment.

                      (i)    Geron agrees to pay to WARF a minimum royalty per
calendar year or part thereof during which this Agreement is in effect starting
in calendar year 2003, against which any earned royalty paid for the same
calendar year will be credited. The minimum royalty shall be * in 2003, * in
2004, * in 2005 and in each calendar year thereafter. The minimum royalty
payment for a given year shall be due at the time payments are due for the
calendar quarter ending on December 31. It is understood that the minimum
royalties will apply on a calendar year basis, and that sales of Products or
Research Products requiring the payment of earned royalties made during a prior
or subsequent calendar year shall have no effect on the annual minimum royalty
due WARF for any given calendar year.

                      (ii)   Geron further agrees to pay to WARF milestone
payments as outlined below within thirty (30) days from the specified event set
forth below whether achieved by Geron or its sublicensee(s). These payments are
not creditable against running royalties or other payments due hereunder.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
EVENT                               CASH                  SHARES
--------------------------------------------------------------------------------
<S>                                 <C>    <C>
IND or comparable regulatory          *    * Geron Shares, plus an additional
filing for the first Product                 number of Geron Shares with a value
developed from each cell type                equivalent to * Geron Options
in the Exclusive Field
--------------------------------------------------------------------------------

IND or comparable regulatory          *    * Geron Shares, plus an additional
filing for the first Product                 number of Geron Shares with a value
developed from each cell type                equivalent to * Geron Options
in the Nonexclusive Field
--------------------------------------------------------------------------------

NDA, BLA or comparable regulatory     *    * Geron Shares, plus an additional
approval for the first Product               number of Geron Shares with a value
developed from each cell type in             equivalent to * Geron Options
the Exclusive Field
--------------------------------------------------------------------------------

NDA, BLA or comparable regulatory     *    * Geron Shares, plus an additional
approval for the first Product               number of Geron Shares with a value
developed from each cell type in             equivalent to * Geron Options
the Nonexclusive Field
--------------------------------------------------------------------------------
</TABLE>

        Geron shall file with the Securities and Exchange Commission a
registration statement for the Geron Shares to be issued to WARF within thirty
(30) days after the date the milestone is achieved, and will use reasonable
diligence thereafter to obtain registration of the Geron Shares. In the event
that WARF

                                       8
<PAGE>

desires to sell a substantial percentage of the Geron Shares in the public
market, WARF agrees to appropriately manage the sale of such shares so as not to
detrimentally affect the price of the stock.

               E.     Accounting; Payments.

                      (i)    Amounts owing to WARF under Sections 2B and 4C
shall be paid on a quarterly basis, with such amounts due and received by WARF
on or before the sixtieth (60th) day following the end of the calendar quarter
ending on March 31, June 30, September 30 or December 31 in which such amounts
were earned. The balance of any amounts which remain unpaid more than thirty
(30) days after they are due to WARF shall accrue interest until paid at the
rate of the lesser of one percent (1%) per month or the maximum amount allowed
under applicable law. However, in no event shall this interest provision be
construed as a grant of permission for any payment delays.

                      (ii)   Except as otherwise directed, all amounts owing to
WARF under this Agreement shall be paid in U.S. dollars to WARF at the address
provided in Section 16(a). All royalties owing with respect to Selling Prices
stated in currencies other than U.S. dollars shall be converted at the rate
published in the Wall Street Journal for the last day of the calendar quarter.

                      (iii)  A full accounting showing how any amounts owing to
WARF under Sections 2B and 4C have been calculated shall be submitted to WARF on
the date of each such payment. Such accounting shall be on a per-country and
product line, model or tradename basis and shall be summarized on the form shown
in Appendix C of this Agreement. In the event Geron or its sublicensees apply a
royalty reduction to the Selling Price of Products or Research Products as set
forth in Section 4C(ii), Geron or its sublicensees shall supply WARF with
reasonable documentation evidencing the sales of Competing Products to support
such reduction in royalty rate. In the event no payment is owed to WARF, a
statement setting forth that fact shall be supplied to WARF.

        Section 5. Certain Warranties.

               A.     WARF warrants that except as otherwise provided under
Section 14 of this Agreement with respect to U.S. Government interests, it is
the owner of the Licensed Patents or otherwise has the right to grant the
licenses granted to Geron in this Agreement. However, nothing in this Agreement
shall be construed as:

                      (i)    a warranty or representation by WARF as to the
validity or scope of any of Licensed Patents;

                      (ii)   a warranty or representation that anything made,
used, sold or otherwise disposed of under the license granted in this Agreement
will or will not infringe patents of third parties; or

                      (iii)  an obligation to furnish any know-how not provided
in Licensed Patents or any services other than those specified in this
Agreement.

               B.     WARF MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF
ANY KIND, EITHER EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER
WITH RESPECT TO USE, SALE, OR OTHER DISPOSITION BY GERON OR ITS VENDEES OR OTHER
TRANSFEREES OF PRODUCTS INCORPORATING OR MADE BY USE OF INVENTIONS LICENSED
UNDER THIS AGREEMENT.

               C.     Geron warrants that it will not perform the following
three experiments with Materials provided by WARF, WiCell or the University of
Wisconsin or derived therefrom: (a) intermixing of Materials with an intact
embryo, either human or nonhuman; (b) implanting Materials or products of
Materials in a uterus; and (c) attempting to make whole embryos by any method.

               D.     Geron represents and warrants that it has, or will obtain,
the expertise necessary to develop and market Products and Research Products and
that it will actively and diligently pursue development of Products and Research
Products for sale in the commercial market. Notwithstanding the foregoing, the
exclusive remedies for Geron's breach of the warranty set forth in this Section
5D, are those provided in Sections 3A(iii)(d), 7A and 7D, and only to the extent
that a milestone for a Product in the Exclusive Field is missed by more than *
as specified in Section 3A(iii)(d), or commencement of clinical

                                       9
<PAGE>

trials or product launch for Therapeutic Products is delayed as specified in
Section 7A, or Geron ceases active development of a cell type for therapeutic
and diagnostic purposes for 12 months as specified in Section 7D.

        Section 6. Recordkeeping.

               A.     Beginning when the first of the Products or Research
Products is sold, Geron and its sublicensee(s) shall keep books and records
sufficient to verify the accuracy and completeness of Geron's and its
sublicensee(s)'s accounting referred to above, including without limitation
inventory, purchase and invoice records relating to the Products or Research
Products or their manufacture. Such books and records shall be preserved for a
period not less than six (6) years after they are created during and after the
term of this Agreement; however, WARF shall initially have only the right to
audit the most recent three (3) years of books and records. If a discrepancy of
five percent (5%) or more of the royalties paid in any given year is found, WARF
shall have the right to audit an additional three (3) years of books and
records.

               B.     Geron and its sublicensee(s) shall take all steps
necessary so that WARF may within thirty (30) days of its request review and
copy all the books and records at a single U.S. location to verify the accuracy
of Geron's and its sublicensee(s)'s accounting. Such review may be performed no
more than annually by any independent attorney or registered CPA designated by
WARF, upon reasonable notice and during regular business hours.

               C.     If a royalty payment deficiency is determined, Geron and
its sublicensee(s) shall pay the royalty deficiency outstanding within thirty
(30) days of receiving written notice thereof, plus interest on outstanding
amounts as described in Section 4E(i).

               D.     If a royalty payment deficiency for a calendar year
exceeds five percent (5%) of the royalties paid for that year, then Geron or its
sublicensee shall be responsible for paying WARF's out-of-pocket expenses
incurred with respect to the audit that identified the deficiency.

        Section 7. Term and Termination.

               A.     The term of this Agreement shall begin on the effective
date of this Agreement and continue until the earlier of (i) the date that no
Licensed Patent remains an enforceable patent or the date that the Extended
Royalty Period (defined below) ends, whichever is later, or (ii ) the date that
the payment of earned royalties under Section 4C, once begun, ceases for more
than eight (8) consecutive calendar quarters. In light of the long development
process before Geron will bring Therapeutic Products to market, in consideration
for WARF's having provided the Materials to Geron and WARF's agreement to
provide to Geron additional Materials under Section 2D, Geron agrees to pay to
WARF royalties on Therapeutic Products, at a stepped-down royalty rate, for an
"Extended Royalty Period" after the expiration of the last Licensed Patent to
expire. Such stepped-down royalty rate shall be * percent (* %) of the royalty
rates specified for such Therapeutic Products in Section 4C of this Agreement.
The Extended Royalty Period shall begin on the date that none of the Licensed
Patents listed in Appendix B as of * remains an enforceable patent, and continue
for each cell type for whichever of the following two periods is longer for that
cell type:

                      (i)    The number of months between * and the commencement
of the first human clinical trial on a Therapeutic Product for that cell type.

                      (ii)   If the date of launch of the first Therapeutic
Product for that cell type is later than the launch milestone in the Specific
Development Plan for that cell type (as adjusted for changes made by agreement
under Section 3A(ii) or by Geron under Section 3A(iii) for delays outside
Geron's control, but not adjusted for changes made by Geron under Section
3A(iii)(c) for delays within Geron's control), the cumulative months of delay
attributable to reasons within Geron's control (as defined in Section
3A(iii)(c)) for which WARF has not agreed in writing to waive the consequences.

               B.     Geron may terminate this Agreement at any time by giving
at least ninety (90) days' written and unambiguous notice of such termination to
WARF. Such a notice shall be accompanied by a statement of the reasons for
termination. The royalty provisions of Section 4C shall survive Geron's
termination of this Agreement prior to its expiration under this Section 7B with
respect to any Products or

                                       10
<PAGE>

Research Products sold by Geron or its sublicensees before the date this
Agreement would have expired under Section 7A.

               C.     If Geron at any time defaults in the timely payment of any
monies due to WARF or the timely submission to WARF of any Development Report,
or commits any breach of any other covenant herein contained, and Geron fails to
remedy any such breach or default within ninety (90) days after written notice
thereof by WARF, WARF may, at its option, terminate this Agreement by giving
written notice of termination to Geron. Notwithstanding the foregoing, WARF
shall have no right to terminate, and no other remedy, for Geron's failure to
meet milestones in or otherwise adhere to Geron's Specific Development Plans,
Geron's failure to have or obtain necessary expertise, or Geron's failure to
develop Products or Research Products actively and diligently, except as
provided in Sections 3A(iii)(d), 7A and 7D.

               D.     On thirty (30) days written notice, WARF may terminate
Geron's license under Section 2A(i) or 2A(ii) with respect to any particular
cell type if Geron ceases active development of such cell type for both
diagnostic and therapeutic purposes (i.e., Geron pursues neither one) for a
continuous period of * months. If WARF asserts that Geron has ceased active
development and Geron disagrees, Geron may submit the issue to Truncated
Arbitration.

               E.     Upon the termination of this Agreement, Geron shall remain
obligated to provide an accounting for and to pay royalties earned up to the
date of the termination and any minimum royalties shall be prorated as of the
date of termination by the number of days elapsed in the applicable calendar
year.

        Section 8. Assignability.

        This Agreement may not be transferred or assigned by Geron except to a
company in which Geron owns at least fifty percent (50%) of the equity, upon
sale or transfer of substantially all the assets of Geron, or with the prior
written consent of WARF.

        Section 9. Enforcement.

               A.     WARF intends to protect the Licensed Patents against
infringers or otherwise act to eliminate infringement, when, in WARF's sole
judgment, such action may be reasonably necessary, proper, and justified. In the
event that Geron believes there is infringement of any Licensed Patent under
this Agreement which is to Geron's substantial detriment, Geron shall provide
WARF with written notice that such infringement is occurring including
reasonable evidence of the infringement. Within three (3) months of receiving
such written notice from Geron, WARF shall either take action to abate the
infringement or notify Geron in writing that it does not intend to take action
to abate the infringement. In the event that WARF notifies Geron that it elects
not to take action to abate the infringement, WARF shall at the same time notify
Geron as to whether WARF consents to Geron taking action to abate the
infringement. The decision to allow Geron to take action to enforce the Licensed
Patents shall be at WARF's sole discretion.

               B.     In the event that WARF does take action to abate the
infringement, it shall do so at its own expense. Upon reasonable request by
WARF, and if the cause of action arose during the term of this agreement and
subject to WARF reimbursing Geron for reasonable out-of-pocket expenses as
provided below, Geron shall take action, join in an action, and otherwise
provide WARF with such assistance and information as may be useful to WARF in
connection with WARF's taking such action. Geron shall have a right to review
and comment, in accordance with the confidentiality obligations set forth in
Section 19, on WARF's enforcement of the Licensed Patents in the Licensed Field,
including the right to review any proposed settlement of an infringement action
prior to WARF's entering into such an agreement. Any recovery or damages for
infringement derived through WARF taking such action shall be applied as
follows: (a) first, to WARF to reimburse WARF for the expenses of the
litigation, including reasonable attorneys' fees, (b) second, to Geron to
reimburse Geron for its reasonable expenses in assisting with such litigation,
including reasonable attorneys' fees, and (c) the balance of any recovery or
damages, except enhanced damages, shall be divided * to Geron and * to WARF.

               C.     If WARF does not take action to abate the infringement of
the Licensed Patents within three (3) months of receiving the notice described
above, Geron may reduce royalties as specified in

                                       11
<PAGE>

Section 9C(i) below or, with WARF's written consent, bring an action to enforce
the Licensed Patents as specified in Section 9C(ii) below.

                      (i)    The royalties owed under Section 4C on sales of
        Products or Research Products in a country in the Patent Territory (as
        defined in Section 4C(ii)) in which Infringing Products (as defined
        below) are sold shall be reduced by * percent (* %) in such country
        until such infringement is abated. Additionally, in the event that the
        total sales of Infringing Products (either by an individual infringer,
        or collectively in the case of multiple infringers) exceed * percent (*
        %) of the total sales of Products or Research Products sold by Geron and
        its sublicensees with which the Infringing Products compete, then the
        royalty owed by Geron and its sublicensees on sales of such Products or
        Research Products in that country shall be reduced to zero until such
        infringement is abated. "Infringing Products" means products or services
        that infringe one or more claims of a Licensed Patent and which are not
        sold under a license from WARF or WiCell.

                      (ii)   With WARF's written consent, which shall be at the
        sole discretion of WARF, Geron may elect to enforce the Licensed Patents
        at its own expense. Any recovery or damages for infringement derived
        through Geron taking such action shall be applied as follows: (a) first,
        to Geron to reimburse Geron for the expenses of the litigation,
        including reasonable attorneys' fees, (b) second, to WARF to reimburse
        WARF for its reasonable expenses in assisting with such litigation,
        including reasonable attorneys' fees, and (c) the balance of any
        recovery or damages, except enhanced damages, shall be divided * to WARF
        and * to Geron.

        Section 10. Contest of Validity.

        In the event Geron contests the validity of any Licensed Patent, Geron
shall continue to pay royalties with respect to that patent as if such contest
were not underway until the patent is adjudicated invalid or unenforceable by a
court of last resort.

        Section 11. Patent Marking.

        Geron shall insure that it and its sublicensee(s) apply patent markings
that meet all requirements of U.S. law, 35 U.S.C. 287, with respect to all
Products subject to this Agreement.

        Section 12. Product Liability; Conduct of Business.

               A.     Geron and its sublicensee(s) shall, at all times during
the term of this Agreement and thereafter, indemnify, defend and hold WARF and
the inventors of the Licensed Patents harmless against all claims and expenses,
including legal expenses and reasonable attorneys fees, arising out of the death
of or injury to any person or persons or out of any damage to property and
against any other claim, proceeding, demand, expense and liability of any kind
whatsoever (other than patent infringement claims) resulting from the
production, manufacture, sale, use, lease, consumption or advertisement of
Products arising from any right or obligation of Geron or any sublicensee
hereunder. Notwithstanding the above, WARF at all times reserves the right to
retain counsel of its own to defend WARF's interests.

               B.     Geron warrants that it now maintains and will continue to
maintain liability insurance coverage appropriate to the risk involved in
marketing the products subject to this Agreement and that such insurance
coverage lists WARF and the inventors of the Licensed Patents as additional
insureds. Within ninety (90) days after the execution of this Agreement and
thereafter annually between January 1 and January 31 of each year, Geron will
present evidence to WARF that the coverage is being maintained with WARF and its
inventors listed as additional insureds. In addition, Geron shall provide WARF
with at least 30 days prior written notice of any change in or cancellation of
the insurance coverage.

        Section 13. Use of Names.

        Geron and its sublicensee(s) shall not use WARF's name, the name of any
inventor of inventions governed by this Agreement, or the name of the University
of Wisconsin in sales promotion, advertising, or any other form of publicity
without the prior written approval of the entity or person whose name is being
used; except that Geron may use the following statement:

                                       12
<PAGE>

        Geron supported research by Dr. James Thomson at the University of
        Wisconsin-Madison which resulted in the successful derivation of human
        embryonic stem cells. Geron has a license agreement with Wisconsin
        Alumni Research Foundation under the patents on human embryonic stem
        cells. Geron's license is exclusive for therapeutic and diagnostic
        products based on neural cells, cardiomyocytes, and pancreatic islet
        cells made from human embryonic stem cells; nonexclusive for therapeutic
        and diagnostic products based on hematopoietic cells, osteoblasts, and
        chondrocytes made from human embryonic stem cells; and nonexclusive for
        research products based on hepatocytes, neural cells, myocytes,
        pancreatic islet cells, hematopoietic cells, and osteoblasts made from
        human embryonic stem cells.

        Section 14. United States Government Interests.

        It is understood that if the United States Government (through any of
its agencies or otherwise) has funded research, during the course of or under
which any of the inventions of the Licensed Patents were conceived or made,
then:

               A.     The United States Government is entitled, as a right,
under the provisions of 35 U.S.C. Section 200-212 and applicable regulations of
Chapter 37 of the Code of Federal Regulations, to a nonexclusive,
nontransferable, irrevocable, paid-up license to practice or have practiced the
invention of such Licensed Patents for governmental purposes. Any license
granted to Geron in this Agreement shall be subject to such right. In the event
there is assertion by the Government of such rights, Geron may be entitled to
modification of the royalty and license fee provisions of the Agreement.

               B.     Any Products in the Exclusive Field embodying the
invention or produced through the use of the invention will be manufactured
substantially in the United States.

        Section 15. Miscellaneous.

               A.     This Agreement shall be construed in accordance with the
internal laws of the State of Wisconsin.

               B.     If any dispute arising under this Agreement results in
litigation, both parties hereby waive and agree not to request a jury trial.

               C.     If any provisions of this Agreement are or shall come into
conflict with the laws or regulations of any jurisdiction or any governmental
entity having jurisdiction over the parties or this Agreement, those provisions
shall be deemed automatically deleted, if such deletion is allowed by relevant
law, and the remaining terms and conditions of this Agreement shall remain in
full force and effect. If such a deletion is not so allowed or if such a
deletion leaves terms thereby made clearly illogical or inappropriate in effect,
the parties agree to substitute new terms as similar in effect to the present
terms of this Agreement as may be allowed under the applicable laws and
regulations. The parties further agree that they shall use good faith efforts to
reform the invalid and/or unenforceable clause(s) so as to render them valid and
enforceable and, to the extent possible, in conformance with the intent of the
parties. The Parties then shall execute a new agreement having the same
effective date as this Agreement.

               D.     The parties hereto are independent contractors and not
joint venturers or partners.

        Section 16. Notices.

        Any notice required to be given pursuant to the provisions of this
Agreement shall be in writing and shall be deemed to have been given at the
earlier of the time when actually received as a consequence of any effective
method of delivery, including but not limited to hand delivery, transmission by
fax, or delivery by a professional courier service or the time when sent by
certified or registered mail addressed to the party for whom intended at the
address below or at such changed address as the party shall have specified by
written notice, provided that any notice of change of address shall be effective
only upon actual receipt.

        (a)    Wisconsin Alumni Research Foundation
               Attn: Managing Director

                                       13
<PAGE>

               614 Walnut Street
               Madison, Wisconsin 53705
               Fax: (608) 263-1064

        (b)    Geron Corporation
               Attn: Vice President, Corporate Development
               230 Constitution Drive
               Menlo Park, CA 94025
               Fax: (650)566-7181

        Section 17. Integration.

        This Agreement constitutes the full understanding between the parties
with reference to the subject matter hereof, and no statements or agreements by
or between the parties, whether orally or in writing, except as provided for
elsewhere in this Section 17, made prior to or at the signing hereof, shall vary
or modify the written terms of this Agreement. Neither party shall claim any
amendment, modification, or release from any provisions of this Agreement by
mutual agreement, acknowledgement, or otherwise, unless such mutual agreement is
in writing, signed by the other party, and specifically states that it is an
amendment to this Agreement.

        Section 18. Contract Formation and Authority.

        The persons signing on behalf of WARF and Geron hereby warrant and
represent that they have authority to execute this Agreement on behalf of the
party for whom they have signed.

        Section 19. Confidentiality.

        "Confidential Information" shall mean any non-public and/or proprietary
information identified as confidential by the disclosing party, including
without limitation Geron's Development Plans, Work Plans and Development
Reports, the Licensed Patents and all information concerning them, and any other
information exchanged between the parties hereto that is marked confidential or
accompanied by correspondence indicating such information is confidential. In
the course of this Agreement, either or both of the parties may disclose
Confidential Information to the other. The recipient of the Confidential
Information will use it only for the purposes of this Agreement, and will not
disclose it except to its employees and designees for those purposes. Each of
the parties will ensure that its employees and designees who receive access to
the other party's Confidential Information are legally obligated to maintain the
confidentiality of such Confidential Information, and such party shall be
responsible for the compliance of its employees and designees. Neither party
will use any of the other party's Confidential Information to its advantage and
to the other party's detriment, and in particular neither party will use
Confidential Information to claim priority, in its own patent applications, to
the other party's patent applications. Each party represents to the other that
the terms of this Section 19 do not conflict with any of the representing
party's obligations to any other person or entity.

        The restrictions on use and disclosure of Confidential Information shall
not apply to information to the extent any of the following is true:

               (a) the information is now, or hereafter becomes, through no act
               or failure to act on the part of the recipient, generally known
               or available to the public;

               (b) the information is known by the recipient before it receives
               the information;

               (c) the information is furnished to the recipient by a third
               party who did not acquire the information directly or indirectly
               from the disclosing party;

               (d) the information is independently developed by the recipient
               without use or knowledge of the Confidential Information;

               (e) the information is required by law or by order of any court
               or governmental authority to be disclosed by the recipient. In
               the event of such compulsory disclosure, however, the recipient
               shall give the disclosing part sufficient advance written notice
               to enable it to seek a protective order or other remedy to
               protect such Confidential Information. The

                                       14
<PAGE>

               recipient may disclose only the minimum Confidential Information
               required to be disclosed, whether or not a protective order or
               other remedy is in place.

        Section 20. Favored Licensee.

               A.     If WARF hereafter grants to any third party a license
under one or more of the Licensed Patents to make, use and sell Products in the
Nonexclusive Field at earned royalty rates which are lower than those provided
in this Agreement for the applicable Licensed Patents, then WARF will (i)
promptly notify Geron of the existence of such a license; and (ii) in such
notice, offer to Geron the lower royalty rate/structure, effective as of the
date on which they became effective in respect to the noticed license.

               B.     Such new royalty rates shall only be effective if, within
thirty (30) days after receipt of the notice provided in Section 20A(i), Geron
notifies WARF that it accepts the new royalty rates as offered.

               C.     If the third party's license under the applicable Licensed
Patent expires or is terminated, the royalty rate to be paid by Geron shall, at
WARF's option, return to the rate specified in this Agreement, effective * after
the later of the date of such termination or expiration or the date WARF
notifies Geron of such termination or expiration.

               D.     Any new royalty rates shall become effective only with
respect to those cell types that are licensed to the third party at the lower
rate and Geron shall continue to pay WARF earned royalties at the rates
specified in this Agreement for any Products based on other cell types. In
addition, any new royalty rates shall be effective only with respect to Products
made, used and sold in an indication for which Geron has submitted, or submits a
development plan to WARF and in the territory in which the third party may make,
use and sell Products under the lower royalty.

               E.     No settlement between WARF and any third party of claims
for infringement occurring prior to the execution of such settlement shall be
considered the grant of a license under this Section 20; however, any license
granted to such third party by reason of the settlement shall be considered a
license, but only to the extent it permits the third party to make, use and sell
Products under a Licensed Patent in the Nonexclusive Field and the Licensed
Territory after the settlement agreement is executed.

        Section 21. Cooperation.

        The parties acknowledge that in the course of Geron's development of
Products and Research Products, issues may arise that were not anticipated or
adequately addressed in this Agreement. Both parties will work in good faith to
identify those issues, understand the other party's interests and concerns with
respect to those issues, and explore reasonable and fair ways of addressing
those issues. In particular, the parties acknowledge that it is possible that
some of the provisions of this Agreement will be objectionable to potential
Collaborators or Development Partners of Geron, and that it may be in the
interests of both parties to modify those provisions. WARF agrees to discuss
with Geron the possibility of modifying those provisions if and when such
objections arise, but shall not be obligated to agree to any such modification.
Both parties also agree to work to maintain a spirit of cooperation,
collaboration, and open and clear communication between them on all matters.

        IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
on the dates indicated below.

WISCONSIN ALUMNI RESEARCH FOUNDATION

By:     /s/ Carl E. Gulbrandsen                     Date: 1/8/2002
   -----------------------------------------------        --------
   Carl E. Gulbrandsen, Managing Director

GERON CORPORATION

By:     /s/ Thomas B. Okarma                        Date: 1/8/02
   -----------------------------------------------        ------
   Thomas B. Okarma, Ph.D. M.D., CEO

                                       15
<PAGE>

-----------------------------------------------------------------

Reviewed by WARF's General Counsel:

/s/ Elizabeth L.R. Donley
-------------------------
Elizabeth L.R. Donley, Esq.

1/8/02

(WARF's attorney shall not be deemed a signatory to this Agreement.)

WARF Ref.: Thomson-P96014US

                                       16
<PAGE>

                                   APPENDIX A
                                   DEFINITIONS

        A.     "Licensed Patents" shall refer to and mean those patents and
patent applications listed on Appendix B attached hereto that are in countries
in the Licensed Territory and any subsequent patent application owned by WARF,
including divisionals, continuations, continuations-in-part, reissues, and
reexaminations in a country in the Licensed Territory.

        B.     "Products" shall refer to and mean Therapeutic Products and
Diagnostic Products.

        C.     "Therapeutic Products" shall refer to and mean products or
services other than Diagnostic Products that (i) are used in the treatment of
disease in humans, and (ii) employ, are in any way produced by the practice of,
are identified using or arise out of any research involving the inventions
claimed in the Licensed Patents or that would otherwise constitute infringement
of any claims of the Licensed Patents. For avoidance of doubt, the parties agree
and acknowledge that (i) the use of a Research Product by a third party
purchaser, which purchased the Research Product in an arms' length transaction
(which transaction, in the case of a third party which is a Collaborator,
Contract Service Provider, or Development Partner, is not part of the
collaboration with Geron), to identify, create or otherwise produce a product
does not make that product a Therapeutic Product, and (ii) Geron's use of a
Research Product to screen or profile a known substance or library of known
substances from which a product is developed does not make that product a
Therapeutic Product.

        D.     "Diagnostic Products" shall refer to and mean products or
services that (i) are used in the diagnosis, prognosis, screening or detection
of disease in humans, and (ii) employ, are in any way produced by the practice
of, are identified using or arise out of any research involving the inventions
claimed in the Licensed Patents or that would otherwise constitute infringement
of any claims of the Licensed Patents. For avoidance of doubt, the parties agree
and acknowledge that (i) the use of a Research Product by a third party
purchaser, which purchased the Research Product in an arms' length transaction
(which transaction, in the case of a third party which is a Collaborator,
Contract Service Provider, or Development Partner, is not part of the
collaboration with Geron), to identify, create or otherwise produce a product
does not make that product a Diagnostic Product, and (ii) Geron's use of a
Research Product to screen or profile an known substance or library of known
substances from which a product is developed does not make that product a
Diagnostic Product.

        E.     "Research Products" shall refer to and mean products or services
that are (i) used as research tools, including in drug discovery and
development, and (ii) which include any material that, but for this license,
would infringe one or more claims of the Licensed Patents or which are
manufactured by any method, or using as any material, that, but for this
license, would infringe one or more claims of the Licensed Patents. For
avoidance of doubt, the parties agree and acknowledge that the license in
Section 2A(iii) includes the right to use Materials in the production of
Research Products (including in services). However, Geron agrees that Research
Products does not include the Materials themselves nor shall Geron distribute
Materials to third parties other than sublicensees in the Exclusive Field,
Contract Service Providers, Collaborators and Development Partners. WARF agrees
that Materials may be used in "services" within the definition of Research
Products by Geron and its Contract Service Providers, Collaborators, and
Development Partners, but that Contract Service Providers and Collaborators may
not sell such services to third parties other than as Geron's agent.

        F.     "Selling Price" shall mean, in the case of Products or Research
Products (including services) that are sold by Geron or Geron's sublicensee, the
price to the end user of Products (regardless of uncollectible accounts) less
any shipping costs, allowances because of returned Products or Research
Products, value added taxes (or comparable duties as required in each country)
or sales taxes. For purposes of this Agreement, the term "price to the end user"
shall mean the price paid to Geron or Geron's sublicensee for Products or
Research Products by its customer assuming an arm's length transaction. In the
event that Geron or Geron's sublicensee sells Products or Research Products to
an Affiliate, the price shall be deemed that amount that Geron would have
received if it had sold such Products or Research Products to an unaffiliated
third-party. The Selling Price for a Product or Research Product that is
transferred to a third party for promotional purposes without charge or at a
discount shall be the average invoice price to the end user of that type of
Product or Research Product during the applicable calendar year, but only to the
extent the number of Products or Research Products so transferred exceeds *
percent (* %) of the annual

                                       17
<PAGE>

total of Products or Research Products sold. All taxes, assessments, or other
charges of any kind which may be imposed on sales of Products or Research
Products by any government outside of the United States or any political
subdivision of such government with respect to any amounts payable to WARF
pursuant to this Agreement shall be paid by Geron.

        G.     "Development Report" shall mean a written account of Geron's
progress in development having at least the information specified on Appendix D
to this Agreement, and shall be sent to the address specified on Appendix D.

        H.     "Materials" shall refer to and mean the primate, including human,
embryonic stem cells claimed in the Licensed Patents.

        I.     "Exclusive Field" shall mean the use in Therapeutic Products or
Diagnostic Products of the following cell types, and precursors of such cell
types, developed from and/or incorporating the Materials or derivatives of the
Materials: neural cells, cardiomyocytes, and pancreatic islet cells.
Notwithstanding Geron's exclusivity, to the extent a precursor of a cell type
within the Exclusive Field is also a precursor of a cell type outside the
Exclusive Field, WARF is not restricted from granting licenses to third parties
for the use of such precursor.

        J.     "Nonexclusive Field" shall mean the use in Therapeutic Products
or Diagnostic Products of the following cell types, and precursors of such cell
types, developed from and/or incorporating the Materials or derivatives of the
Materials: hematopoietic cells, osteoblasts, and chondrocytes.

        K.     "Research Products Field" shall mean the use in Research Products
of the following cell types, and precursors of such cell types, developed from
and/or incorporating the Materials or derivatives of the Materials: hepatocytes,
neural cells, myocytes, pancreatic islet cells, hematopoietic cells, and
osteoblasts.

        L.     "Research-Related Field" shall mean any use of Therapeutic
Products, Diagnostic Products or Research Products that arise out of research
under the nonexclusive license for Internal Research granted in Section 2A(v)
that is outside the Exclusive Field, the Nonexclusive Field, and the Research
Products Field. However, in no event shall Products or Research Products in the
Research-Related Field comprise the Materials or cells derived from the
Materials.

        M.     "Licensed Territory" shall be worldwide.

        N.     "Contract Service Provider" shall mean a person or organization
with which Geron enters into a written contract for the provision of specific
services (e.g., testing, contract manufacturing, distribution, etc. to Geron) in
support of Geron's commercialization of Products or Research Products.

        O.     "Collaborator" shall mean a person or organization with which
Geron enters into a written agreement for a specific project or projects to be
directed by Geron involving research on and/or development of Materials and
cells derived from Materials in support of Geron's commercialization of Products
or Research Products.

        P.     "Development Partner" shall mean a person or organization with
which Geron enters into a specific written collaborative agreement (subject to
WARF's right to disapprove pursuant to Section 2B(ii)(c)) for research and
development, manufacturing, marketing, or other activities necessary for the
commercialization of Products or Research Products.

        Q.     "Truncated Arbitration" means an arbitration process meeting the
following criteria: (i) a specific issue or small group of related issues is
submitted to arbitration; (ii) a single neutral arbitrator (chosen by two
qualified arbitrators, of whom each party shall select one), with at least ten
(10) years of experience directly relevant to the issues in dispute, decides the
issue(s); (iii) each party submits concise written facts and arguments (not more
than 50 pages); (iv) the arbitrator holds a single hearing, with informal
procedures, of not more than one day; and (v) the arbitrator renders a written
decision within no more than 90 days after the request for arbitration. The
parties may agree on the informal procedures and the place for the arbitration,
but in the absence of agreement the arbitrator will establish them.

        R.     "Geron IP" means those claims of any patent or patent
application, together with any reissues, continuations or divisional
applications arising therefrom and those claims of any continuation-in-

                                       18
<PAGE>

part application that are fully supported by such filings, that are assigned to
Geron, that are in the field of embryonic stem cells, and:

                      (i)    that have a filing date before the date of this
Agreement; or

                      (ii)   if Geron's license with respect to a cell type is
converted from exclusive to nonexclusive pursuant to Section 3A(iii)(d), that
relate specifically to that cell type and have a filing date before the date of
WARF's notice of conversion; or

                      (iii)  if Geron's license with respect to a cell type is
terminated pursuant to Section 7D, that relate specifically to that cell type
and have a filing date before the date of WARF's notice of termination.

A claim in a patent or patent application "relates specifically to" a cell type
to the extent the claim pertains to a composition of matter comprising, or a
method of making, or a method of using, the cell type.

        S.     "Geron Options" means stock options granted pursuant to Geron's
1994 Stock Option Plan, with an exercise period of ten years and a strike price
equal to the closing price of Geron Shares as of the day prior to the date of
the event triggering the milestone. Geron shall use the Black-Scholes model for
purposes of calculating the value of the Geron Options.

        T.     "Geron Shares" means shares of Geron common stock.

        U.     "Licensed Field" shall refer to and mean the Exclusive Field, the
Nonexclusive Field, and the Research Products Field.

        V.     "Affiliate" means an entity that controls, is controlled by, or
is under common control with Geron. For purposes of this definition, "control"
means greater than fifty percent (50%) of the voting shares or units of an
entity.

        W.     "Internal Research Purposes" means research conducted internally
at Geron but excludes human clinical trials and development work subsequent to
commencement of those clinical trials.

                                       19
<PAGE>

                                   APPENDIX B

                                LICENSED PATENTS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------
       REFERENCE                           PATENT     ISSUE     APPLICATION
         NUMBER          COUNTRY           NUMBER     DATE     SERIAL NUMBER
<S>                    <C>                 <C>        <C>      <C>
*
==============================================================================
            *         UNITED STATES           *         *
==============================================================================

*
==============================================================================
            *         UNITED STATES           *         *
------------------------------------------------------------------------------
            *         PCT                                            *
------------------------------------------------------------------------------
            *         CANADA                                         *
------------------------------------------------------------------------------
            *         EPO                                            *
==============================================================================

*
==============================================================================
            *         UNITED STATES                                  *
------------------------------------------------------------------------------
            *         PCT                                            *
------------------------------------------------------------------------------
            *         EPO                                            *
==============================================================================

*
==============================================================================

            *         UNITED STATES                                  *
------------------------------------------------------------------------------

            *         UNITED STATES                                  *
==============================================================================
</TABLE>

                                       20
<PAGE>

                                   APPENDIX C
                               WARF ROYALTY REPORT

  AGREEMENT NO:             INVENTOR:                                   P#:  P
                 ---------             -------------------------------      ----
PERIOD COVERED:  From:     /    / 199            Through:        /        / 199
                       -----------------------              -------------------
   PREPARED BY:                                     DATE:
                 -----------------------------             --------------------
   APPROVED BY:                                     DATE:
                 -----------------------------             --------------------

          If license covers several major product lines, please prepare
            a separate report for each line. Then combine all product
                          lines into a summary report.

  REPORT TYPE: [ ] SINGLE PRODUCT LINE REPORT:

               [ ] MULTIPRODUCT SUMMARY REPORT.  Page 1 of ______ Pages

               [ ] PRODUCT LINE DETAIL.  Line: _______ Tradename: ____ Page: ___

REPORT CURRENCY: [ ]  U. S. DOLLARS        [ ] OTHER

<TABLE>
<CAPTION>
======================================================================================================
                                                                              PERIOD ROYALTY AMOUNT
                    GROSS        * LESS:          NET         ROYALTY      ---------------------------
    COUNTRY         SALES       ALLOWANCES       SALES         RATE        THIS YEAR      LAST YEAR
<S>                 <C>         <C>              <C>          <C>          <C>            <C>
------------------------------------------------------------------------------------------------------
U.S.A.
------------------------------------------------------------------------------------------------------
Canada
------------------------------------------------------------------------------------------------------
Europe:
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
Japan
------------------------------------------------------------------------------------------------------
Other:
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

======================================================================================================
TOTAL:
======================================================================================================
</TABLE>

Total Royalty:          Conversion Rate:          Royalty in U.S. Dollars:  $
               --------                  --------                          ----

        The following royalty forecast is non-binding and for WARF's internal
planning purposes only:

Royalty Forecast Under This Agreement: Next Quarter:____ Q2:____ Q3:____ Q4:____

                                       21
<PAGE>

                                   APPENDIX D
                               DEVELOPMENT REPORT

A.  Date development plan initiated and time period covered by this report.

B.  Development Report (4-8 paragraphs).

    1.  Activities completed since last report including the object and
        parameters of the development, when initiated, when completed and the
        results.

    2.  Activities currently under investigation, i.e., ongoing activities
        including object and parameters of such activities, when initiated, and
        projected date of completion.

C.  Future Development Activities (4-8 paragraphs).

    1.  Activities to be undertaken before next report including, but not
        limited to, the type and object of any studies conducted and their
        projected starting and completion dates.

    2.  Estimated total development time remaining before a product will be
        commercialized.

D.  Changes to initial development plan (2-4 paragraphs).

    1.  Reasons for change.

    2.  Variables that may cause additional changes.

E.  Items to be provided if applicable:

    1.  Information relating to Product that has become publicly available,
        e.g., published articles, competing products, patents, etc.

    2.  Development work being performed by third parties other than Geron to
        include name of third party, reasons for use of third party, planned
        future uses of third parties including reasons why and type of work.

    3.  Update of competitive information trends in industry, government
        compliance (if applicable) and market plan.

PLEASE SEND DEVELOPMENT REPORTS TO:

    Wisconsin Alumni Research Foundation
    Attn.: Contract Coordinator
    614 Walnut Street
    P.O. Box 7365
    Madison, WI 53707-7365

                                       22

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