Document:

exv10w2

 

Exhibit 10.2

Execution Copy

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of February 5, 2007,
is by and between Cell Genesys, Inc. (the “Company”) and Kingsbridge Capital Limited, an
entity organized and existing under the laws of the British Virgin Islands, whose registered
address is Palm Grove House, 2nd Floor, Road Town, Tortola, British Virgin Islands (the
“Investor”).

     WHEREAS, the Company and the Investor have entered into that certain Common Stock Purchase
Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant to which the
Company may issue, from time to time, to the Investor up to $75,000,000 worth of shares of Common
Stock as provided for therein;

     WHEREAS, pursuant to the terms of, and in partial consideration for the Investor entering
into, the Purchase Agreement, the Company has issued to the Investor a warrant, exercisable from
time to time, in accordance with its terms, within five (5) years following the six-month
anniversary of the date of issuance (the “Warrant”) for the purchase of an aggregate of up
to 421,918 shares of Common Stock at a price specified in such Warrant; and

     WHEREAS, pursuant to the terms of, and in partial consideration for, the Investor’s agreement
to enter into the Purchase Agreement, the Company has agreed to provide the Investor with certain
registration rights with respect to the Registrable Securities (as defined in the Purchase
Agreement) as set forth herein.

     NOW, THEREFORE, in consideration of the premises, the representations, warranties, covenants
and agreements contained herein, in the Warrant and in the Purchase Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, intending
to be legally bound hereby, the parties hereto agree as follows (capitalized terms used herein and
not defined herein shall have the respective meanings ascribed to them in the Purchase Agreement):

ARTICLE I

REGISTRATION RIGHTS

     Section 1.1. Registration Statement.

     (a) Filing of the Registration Statement. Upon the terms and subject to the
conditions set forth in this Agreement, the Company shall file with the Commission within sixty
(60) calendar days after the Closing Date a registration statement on Form S-3 under the Securities
Act or such other form as deemed appropriate by counsel to the Company for the registration for the
resale by the Investor of the Registrable Securities (the “Registration Statement”).

     (b) Effectiveness of the Registration Statement. The Company shall use commercially
reasonable efforts (i) to have the Registration Statement declared effective by the Commission as
soon as reasonably practicable, but in any event no later than one hundred eighty (180) calendar
days after the Closing Date and (ii) to ensure that the Registration Statement remains in effect
throughout the term of this Agreement as set forth in Section 4.2, subject to the terms and
conditions of this Agreement.

     (c) Regulatory Disapproval. The contemplated effective date for the Registration
Statement as described in Section 1.1(b) shall be extended without default or liquidated damages
hereunder or under the Purchase Agreement in the event that the Company’s failure to obtain the
effectiveness of the

 

 

Registration Statement on a timely basis results from (i) the failure of the
Investor to timely provide the Company with information requested by the Company and necessary to
complete the Registration Statement in accordance with the requirements of the Securities Act, or
(ii) the Commission’s disapproval of the structure of the transactions contemplated by the Purchase
Agreement, or (iii) events or circumstances that are not in any way attributable to the Company. In
the event of clause (ii) above, the parties agree to cooperate with one another in good faith to
arrive at a resolution acceptable to the Commission.

     (d) Failure to Maintain Effectiveness of Registration Statement. In the event the
Company fails to maintain the effectiveness of the Registration Statement (or the Prospectus)
throughout the period set forth in Section 4.2, other than temporary suspensions as set forth in
Section 1.1(e), and the Investor holds any Registrable Securities at any time during the period of
such ineffectiveness (an “Ineffective Period”), the Company shall pay to the Investor in
immediately available funds into an account designated by the Investor an amount equal to the
product of (x) the total number of Registrable Securities issued to the Investor under the Purchase
Agreement (which, for the avoidance of doubt, shall not include any Warrant Shares) and owned by
the Investor at any time during such Ineffective Period and (y) the result, if greater than zero,
obtained by subtracting the VWAP on the Trading Day immediately following the last day of such
Ineffective Period from the VWAP on the Trading Day immediately preceding the day on which any such
Ineffective Period began; provided, however, (i) that the foregoing payments shall
not apply in respect of Registrable Securities that are otherwise freely tradable by the Investor
or if the Company offers to repurchase from the Investor such Registrable Securities for a per
share purchase price equal to the VWAP on the Trading Day immediately preceding the day on which
any such Ineffective Period began and (ii) that the Company shall be under no obligation to
supplement the Prospectus to reflect the issuance of any Shares pursuant to a Draw Down at any time
prior to the day following the Settlement Date with respect to such Shares and that the failure to
supplement the Prospectus prior to such time period shall not be deemed a failure to maintain the
effectiveness of the Registration Statement (or Prospectus) for purposes of this Agreement
(including this Section 1.1(d)).

     (e) Deferral or Suspension During a Blackout Period. Notwithstanding the provisions
of Section 1.1(d), if in the good faith judgment of the Company, following consultation with legal
counsel, it would be detrimental to the Company or its stockholders for the Registration Statement
to be filed or for resales of Registrable Securities to be made pursuant to the Registration
Statement due to (i) the existence of a material development or potential material development
involving the Company that the Company would be obligated to disclose or incorporate by reference
in the Registration Statement, which disclosure would be premature or otherwise inadvisable at such
time or would have a Material Adverse Effect on the Company or its stockholders, or (ii) a filing
of a Company-initiated registration of any class of its equity securities, which, in the good faith
judgment of the Company, because such filing of the Registration Statement or continued resale
would adversely affect or require premature disclosure of the filing of such Company-initiated
registration (notice thereof, a “Blackout Notice”), the Company shall have the right to (A)
immediately defer such filing for a period of not more than sixty (60) days beyond the date by
which such Registration Statement was otherwise required hereunder to be filed or (B) suspend use
of such Registration Statement for a period of not more than thirty (30) days (any such deferral or
suspension period, a “Blackout Period”). The Investor acknowledges that it would be
seriously detrimental to the Company and its stockholders for such Registration Statement to be
filed (or remain in effect) during a Blackout Period and therefore essential to defer such filing
(or suspend the use thereof) during such Blackout Period and agrees to cease any disposition of the
Registrable Securities during such Blackout Period. The Company may not utilize any of its rights
under this Section 1.1(e) to defer the filing of a Registration Statement (or suspend its
effectiveness) more than six (6) times in any twelve (12) month
period. In the event that, within thirty (30) calendar days following any Settlement Date,
the Company gives a Blackout Notice to the Investor and the VWAP on the Trading Day immediately
preceding such Blackout Period (“Old VWAP”) is greater than the VWAP on the first Trading
Day following such

2

 

Blackout Period that the Investor may sell its Registrable Securities pursuant
to an effective Registration Statement (“New VWAP”), then the Company shall pay to the
Investor, by wire transfer of immediately available funds to an account designated by the Investor,
the Blackout Amount (as hereinafter defined). For purposes of this Agreement, “Blackout
Amount” means the lesser of (x) the product of (i) the total number of Registrable Securities
issued to the Investor pursuant to the Purchase Agreement and owned by the Investor immediately
prior to the Blackout Period and (ii) the result obtained by subtracting the New VWAP from the Old
VWAP, (y) 90% of the most recent Draw Down Amount and (z) 80% of the Maximum Draw Down Amount;
provided, however, that no Blackout Amount shall be payable in respect of
Registrable Securities (A) that are otherwise freely tradable by the Investor, including under Rule
144, during the Blackout Period, or (B) if the Company offers to repurchase from the Investor such
Registrable Securities for a per share purchase price equal to the VWAP on the Trading Day
immediately preceding the day on which any such Blackout Period began. For any Blackout Period in
respect of which a Blackout Amount becomes due and payable, rather than paying the Blackout Amount,
the Company may at is sole discretion, issue to the Investor shares of Common Stock with an
aggregate market value determined as of the first Trading Day following such Blackout Period equal
to the Blackout Amount (“Blackout Shares”).

     (f) Liquidated Damages. The Company and the Investor hereto acknowledge and agree
that the amounts payable under Sections 1.1(d) and 1.1(e) and the Blackout Shares deliverable under
Section 1.1(e) above (i) shall constitute the Investor’s sole remedy with respect to the Company’s
failure to maintain the effectiveness, or for any deferral or suspension, of the Registration
Statement, and (ii) shall constitute liquidated damages and not penalties. The parties further
acknowledge that (i) the amount of loss or damages likely to be incurred by the Investor is
incapable or is difficult to precisely estimate, (ii) the amounts specified in such subsections
bear a reasonable proportion and are not plainly or grossly disproportionate to the probable loss
likely to be incurred in connection with any failure by the Company to obtain or maintain the
effectiveness of the Registration Statement, (iii) one of the reasons for the Company and the
Investor reaching an agreement as to such amounts was the uncertainty and cost of litigation
regarding the question of actual damages, and (iv) the Company and the Investor are sophisticated
business parties and have been represented by sophisticated and able legal and financial counsel
and negotiated this Agreement at arm’s length. The Investor further agrees that, if the Company
makes the payments provided for in Section 1.1(e), the Company’s deferral or suspension of the
Registration Statement pursuant to Section 1.1(e) shall not constitute a material breach or default
of any obligation of the Company to the Investor.

     (g) Additional Registration Statements. In the event and to the extent that the
Registration Statement fails to register a sufficient amount of Common Stock necessary for the
Company to issue and sell to the Investor and the Investor to purchase from the Company all of the
Registrable Securities to be issued, sold and purchased under the Purchase Agreement and the
Warrant, the Company shall, upon a timetable mutually agreeable to both the Company and the
Investor, prepare and file with the Commission an additional registration statement or statements
in order to effectuate the purpose of this Agreement, the Purchase Agreement and the Warrant.

ARTICLE II

REGISTRATION PROCEDURES

     Section 2.1. Filings; Information. The Company shall effect the registration with
respect to the sale of the Registrable Securities by the Investor in accordance with the intended
methods of disposition thereof. Without limiting the foregoing, the Company in each such case will
do the following
as expeditiously as possible, but in no event later than the deadline, if any, prescribed
therefor in this Agreement:

3

 

     (a) Subject to Section 1.1(e), the Company shall (i) prepare and file with the Commission the
Registration Statement; (ii) use commercially reasonable efforts to cause such filed Registration
Statement to become and to remain effective (pursuant to Rule 415 under the Securities Act or
otherwise); (iii) prepare and file with the Commission 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 for the time period prescribed by Section 4.2 and in order to
effectuate the purpose of this Agreement, the Purchase Agreement and the Warrant and (iv) comply
with the provisions of the Securities Act with respect to the disposition of all securities covered
by such Registration Statement during such period in accordance with the intended methods of
disposition by the Investor set forth in such Registration Statement; provided,
however, that the Company shall be under no obligation to supplement the Prospectus to
reflect the issuance of any Shares pursuant to a Draw Down at any time prior to the Trading Day
following the Settlement Date with respect to such Shares and, provided further,
that the Investor shall be responsible for the delivery of the Prospectus to the Persons to whom
the Investor sells the Shares and the Warrant Shares, and the Investor agrees to dispose of
Registrable Securities in compliance with the plan of distribution described in the Registration
Statement and otherwise in compliance with applicable federal and state securities laws.

     (b) Three (3) Trading Days prior to filing the Registration Statement or Prospectus, or any
amendment or supplement thereto (excluding amendments deemed to result from the filing of documents
incorporated by reference therein, supplements to the Prospectus required in respect of any
particular Settlement Date, and supplements to the Registration Statement for which consent of or
notice to the Investor is not required pursuant to Section 6.12 of the Purchase Agreement), the
Company shall deliver to the Investor and to counsel representing the Investor, in accordance with
the notice provisions of Section 4.8, copies of the Registration Statement, Prospectus and/or any
amendments or supplements thereto as proposed to be filed, together with exhibits thereto, which
documents will be subject to review by the Investor and such counsel, and thereafter deliver to the
Investor and such counsel, in accordance with the notice provisions of Section 4.8, such number of
copies of the Registration Statement, each amendment and supplement thereto (in each case including
all exhibits thereto), the Prospectus (including each preliminary prospectus) and such other
documents or information as the Investor or counsel may reasonably request in order to facilitate
the disposition of the Registrable Securities, provided, however, that to the
extent reasonably practicable, such delivery may be accomplished via electronic means.

     (c) After the filing of the Registration Statement, the Company shall promptly notify the
Investor of any stop order issued or threatened by the Commission in connection therewith and take
commercially reasonable actions required to prevent the entry of such stop order or to have such
stop order lifted, as the case may be.

     (d) The Company shall use commercially reasonable efforts to (i) register or qualify the
Registrable Securities under such other securities or blue sky laws of each jurisdiction in the
United States as the Investor may reasonably (in light of its intended plan of distribution)
request, and (ii) cause the Registrable Securities to be registered with or approved by such other
governmental agencies or authorities in the United States as may be necessary by virtue of the
business and operations of the Company and do any and all other customary acts and things that may
be reasonably necessary or advisable to enable the Investor to consummate the disposition of the
Registrable Securities; provided, however, that the Company will not be required to
qualify generally to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 2.1(d), subject itself to taxation in any such jurisdiction, consent
or subject itself to general service of process in any such jurisdiction,
change any existing business practices, benefit plans or outstanding securities or amend or
otherwise modify the Charter or Bylaws.

4

 

     (e) The Company shall make available to the Investor (and will deliver to Investor’s counsel),
(A) subject to restrictions imposed by the United States federal government or any agency or
instrumentality thereof, copies of all public correspondence between the Commission and the Company
concerning the Registration Statement and will also make available for inspection by the Investor
and any attorney, accountant or other professional retained by the Investor (collectively, the
“Inspectors”), (B) upon reasonable advance notice during normal business hours all
financial and other records and pertinent corporate documents of the Company (collectively, the
“Records”) as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company’s officers and employees to supply all information reasonably
requested by any Inspectors in connection with the Registration Statement; provided,
however, that (i) the Company shall not be obligated to disclose any portion of the Records
consisting of either (A) material non-public information or (B) confidential information of a third
party and (ii) any such Inspectors must agree in writing for the benefit of the Company not to use
or disclose any such Records except as provided in this Section 2.1(e). Records disclosed
hereunder that the Company determines, in good faith, to be confidential and that it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless the disclosure or
release of such Records is requested or required pursuant to oral questions, interrogatories,
requests for information or documents or a subpoena or other order from a court of competent
jurisdiction or other judicial or governmental process; provided, however, that
prior to any disclosure or release pursuant to the immediately preceding clause, the Inspectors
shall provide the Company with prompt notice of any such request or requirement so that the Company
may seek an appropriate protective order or waive such Inspectors’ obligation not to disclose such
Records; and, provided, further, that if failing the entry of a protective order or
the waiver by the Company permitting the disclosure or release of such Records, the Inspectors,
upon advice of counsel, are compelled to disclose such Records, the Inspectors may disclose that
portion of the Records that counsel has advised the Inspectors that the Inspectors are compelled to
disclose; provided, however, that upon any such required disclosure, such Inspector
shall use his or her best efforts to obtain reasonable assurances that confidential treatment will
be afforded such information. The Investor agrees that information obtained by it solely as a
result of such inspections (not including any information obtained from a third party who, insofar
as is known to the Investor after reasonable inquiry, is not prohibited from providing such
information by a contractual, legal or fiduciary obligation to the Company) shall be deemed
confidential and shall not be used for any purposes other than as indicated above or by it as the
basis for any market transactions in the securities of the Company or its affiliates unless and
until such information is made generally available to the public. The Investor further agrees that
it will, upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of the Records deemed confidential.

     (f) The Company shall otherwise comply in all material respects with all applicable rules and
regulations of the Commission, including, without limitation, compliance with applicable reporting
requirements under the Exchange Act.

     (g) The Company shall appoint (or shall have appointed) a transfer agent and registrar for all
of the Registrable Securities covered by such Registration Statement not later than the effective
date of such Registration Statement.

     (h) The Investor shall cooperate with the Company, as reasonably requested by the Company, in
connection with the preparation and filing of any Registration Statement hereunder. The Company
may require the Investor to promptly furnish in writing to the Company such information as may be
required in connection with such registration including, without limitation, all such information
as may be
requested by the Commission or the NASD or any state securities commission and all such
information regarding the Investor, the Registrable Securities held by the Investor and the
intended method of disposition of the Registrable Securities. The Investor agrees to provide such
information requested in

5

 

connection with such registration within five (5) Business Days after
receiving such written request and the Company shall not be responsible for any delays in obtaining
or maintaining the effectiveness of the Registration Statement caused by the Investor’s failure to
timely provide such information.

     (i) Upon receipt of a Blackout Notice from the Company, the Investor shall immediately
discontinue disposition of Registrable Securities pursuant to the Registration Statement covering
such Registrable Securities until (i) the Company advises the Investor that the Blackout Period has
terminated and (ii) the Investor receives copies of a supplemented or amended prospectus, if
necessary. If so directed by the Company, the Investor will deliver to the Company (at the expense
of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in
the Investor’s possession (other than a limited number of file copies) of the prospectus covering
such Registrable Securities that is current at the time of receipt of such notice.

     Section 2.2. Registration Expenses. Except as set forth in Section 10.01 of the
Purchase Agreement, the Company shall pay all registration expenses incurred in connection with the
Registration Statement (the “Registration Expenses”), including, without limitation: (i)
all registration, filing, securities exchange listing and fees required by the National Association
of Securities Dealers, (ii) all registration, filing, qualification and other fees and expenses of
compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel
in connection with blue sky qualifications of the Registrable Securities), (iii) all word
processing, duplicating, printing, messenger and delivery expenses, (iv) the Company’s internal
expenses (including, without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), (v) the fees and expenses incurred by the Company in
connection with the listing of the Registrable Securities, (vi) reasonable fees and disbursements
of counsel for the Company and customary fees and expenses for independent certified public
accountants retained by the Company (including the expenses of any special audits or comfort
letters or costs associated with the delivery by independent certified public accountants of such
special audit(s) or comfort letter(s), (vii) the fees and expenses of any special experts retained
by the Company in connection with such registration and amendments and supplements to the
Registration Statement and Prospectus, and (viii) premiums and other costs of the Company for
policies of insurance against liabilities of the Company arising out of any public offering of the
Registrable Securities being registered to the extent the Company in its discretion elects to
obtain and maintain insurance. Any fees and disbursements of underwriters, broker-dealers or
investment bankers, including without limitation underwriting fees, discounts, transfer taxes or
commissions, and any other fees or expenses (including legal fees and expenses) if any,
attributable to the sale of Registrable Securities, shall be payable by each holder of Registrable
Securities pro rata on the basis of the number of Registrable Securities of each such holder that
are included in a registration under this Agreement.

ARTICLE III

INDEMNIFICATION

     Section 3.1. Indemnification. The Company agrees to indemnify and hold harmless the
Investor, its partners, affiliates, officers, directors, employees and duly authorized agents, and
each Person or entity, if any, who controls the Investor within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, together with the partners, affiliates, officers,
directors, employees and duly authorized agents of such controlling Person or entity (collectively,
the “Controlling Persons”), from and against any loss, claim, damage, liability, costs and
expenses (including, without limitation, reasonable attorneys’ fees and disbursements and costs and
expenses of investigating and defending any such claim) (collectively, “Damages”), joint or
several, and any action or proceeding in respect thereof to
which the Investor, its partners, affiliates, officers, directors, employees and duly
authorized agents, and any Controlling Person, may become subject under the Securities Act or
otherwise, as incurred, insofar as such Damages (or actions or proceedings in respect thereof)
arise out of, or are based upon, any untrue

6

 

statement or alleged untrue statement of a material
fact contained in any Registration Statement, or in any preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement relating to the Registrable Securities or arises out
of, or are based upon, any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein under the circumstances not
misleading, and shall reimburse the Investor, its partners, affiliates, officers, directors,
employees and duly authorized agents, and each such Controlling Person, for any legal and other
expenses reasonably incurred by the Investor, its partners, affiliates, officers, directors,
employees and duly authorized agents, or any such Controlling Person, as incurred, in investigating
or defending or preparing to defend against any such Damages or actions or proceedings;
provided, however, that the Company shall not be liable to the extent that any such
Damages arise out of the Investor’s (or any other indemnified Person’s) failure to send or give a
copy of the final prospectus or supplement (as then amended or supplemented) to the persons
asserting an untrue statement or alleged untrue statement or omission or alleged omission at or
prior to the written confirmation of the sale of Registrable Securities to such person if such
statement or omission was corrected in such final prospectus or supplement; provided,
further, that the Company shall not be liable to the extent that any such Damages arise out
of or are based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such Registration Statement, or any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the Investor or any other person who
participates as an underwriter in the offering or sale of such securities, in either case,
specifically stating that it is for use in the preparation thereof. In connection with any
Registration Statement with respect to which the Investor is participating, such Investor will
indemnify and hold harmless, to the same extent and in the same manner as set forth in the
preceding paragraph, the Company, each of its partners, affiliates, officers, directors, employees
and duly authorized agents of such controlling Person (each a “Company Indemnified Person”)
against any Damages to which any Company Indemnified Person may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such Damages arise out of or are based upon (a) any
untrue statement or alleged untrue statement of a material fact contained in any Registration
Statement, or in any preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement relating to the Registrable Securities or arise out of, or are based upon, any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein under the circumstances not misleading to the extent that such
violation occurs in reliance upon and in conformity with written information furnished to the
Company by the Investor or on behalf of the Investor expressly for use in connection with such
Registration Statement, or (b) any failure by the Investor to comply with prospectus delivery
requirements of the Securities Act, the Exchange Act or any other law or legal requirement
applicable to sales under the Registration Statement.

     Section 3.2. Conduct of Indemnification Proceedings. All claims for indemnification
under Section 3.1 shall be asserted and resolved in accordance with the provisions of Section 9.02
of the Purchase Agreement.

     Section 3.3. Additional Indemnification. Indemnification similar to that specified in
the preceding paragraphs of this Article III (with appropriate modifications) shall be given by the
Company and the Investor with respect to any required registration or other qualification of
securities under any federal or state law or regulation of any governmental authority other than
the Securities Act. The provisions of this Article III shall be in addition to any other rights to
indemnification, contribution or other remedies which an Indemnified Party or a Company Indemnified
Person may have pursuant to law, equity, contract or otherwise.

     To the extent that any indemnification provided for herein is prohibited or limited by law,
the indemnifying party will make the maximum contribution with respect to any amounts for which it
would otherwise be liable under this Article III to the fullest extent permitted by law. However,
(a) no

7

 

contribution will be made under circumstances where maker of such contribution would not
have been required to indemnify the indemnified party under the fault standards set forth in this
Article III, (b) if the Investor is guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) the Investor will not be entitled to contribution from any
Person who is not guilty of such fraudulent misrepresentation, and (c) contribution (together with
any indemnification obligations under this Agreement) by the Investor will be limited in amount to
the proceeds received by the Investor from sales of Registrable Securities.

ARTICLE IV

MISCELLANEOUS

     Section 4.1. No Outstanding Registration Rights. Except as otherwise disclosed in
accordance with the Purchase Agreement or in the Commission Documents, the Company represents and
warrants to the Investor that there is not in effect on the date hereof any agreement by the
Company pursuant to which any holders of securities of the Company have a right to cause the
Company to register or qualify such securities under the Securities Act or any securities or blue
sky laws of any jurisdiction.

     Section 4.2. Term. The registration rights provided to the holders of Registrable
Securities hereunder, and the Company’s obligation to keep the Registration Statement effective,
shall terminate at the earlier of (i) such time that is two years following the termination of the
Purchase Agreement, (ii) such time as all Registrable Securities have been issued and have ceased
to be Registrable Securities, or (iii) upon the consummation of an “Excluded Merger or Sale” as
defined in the Warrant. Notwithstanding the foregoing, paragraph (d) of Section 1.1, Article III,
Section 4.7, Section 4.8, Section 4.9, Section 4.10 and Section 4.13 shall survive the termination
of this Agreement.

     Section 4.3. Rule 144. The Company will, at its expense, promptly take such action as
holders of Registrable Securities may reasonably request to enable such holders of Registrable
Securities to sell Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 under the Securities Act (“Rule
144”), as such Rule may be amended from time to time, or (b) any similar rule or regulation
hereafter adopted by the Commission. If at any time the Company is not required to file such
reports, it will, at its expense, forthwith upon the written request of any holder of Registrable
Securities, make available adequate current public information with respect to the Company within
the meaning of paragraph (c)(2) of Rule 144 or such other information as necessary to permit sales
pursuant to Rule 144. Upon the request of the Investor, the Company will deliver to the Investor a
written statement, signed by the Company’s principal financial officer, as to whether it has
complied with such requirements.

     Section 4.4. Certificate. The Company will, at its expense, forthwith upon the
request of any holder of Registrable Securities, deliver to such holder a certificate, signed by
the Company’s principal financial officer, stating (a) the Company’s name, address and telephone
number (including area code), (b) the Company’s Internal Revenue Service identification number, (c)
the Company’s Commission file number, (d) the number of shares of each class of Stock outstanding
as shown by the most recent report or statement published by the Company, and (e) whether the
Company has filed the reports required to be filed under the Exchange Act for a period of at least
ninety (90) days prior to the date of such certificate and in addition has filed the most recent
annual report required to be filed thereunder.

     Section 4.5. Amendment And Modification. Any provision of this Agreement may be
waived, provided that such waiver is set forth in a writing executed by both parties to
this Agreement.
The provisions of this Agreement, including the provisions of this sentence, may be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may be
given, only with the written consent of the Investor and the Company. No course of dealing between
or among any

8

 

Person having any interest in this Agreement will be deemed effective to modify, amend
or discharge any part of this Agreement or any rights or obligations of any person under or by
reason of this Agreement.

     Section 4.6. Successors and Assigns; Entire Agreement. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. The Company may assign this Agreement at any time in
connection with a sale or acquisition of the Company, whether by merger, consolidation, sale of all
or substantially all of the Company’s assets, or similar transaction, without the consent of the
Investor, provided that the successor or acquiring Person or entity agrees in writing to
assume all of the Company’s rights and obligations under this Agreement. The Investor may assign
its rights and obligations under this Agreement only to (i) an affiliate that meets all applicable
requirements of federal and state securities laws, or (ii) with the prior written consent of the
Company, and any purported assignment by the Investor other than as set forth above shall be null
and void. This Agreement, together with the Purchase Agreement and the Warrant sets forth the
entire agreement and understanding between the parties as to the subject matter hereof and merges
and supersedes all prior discussions, agreements and understandings of any and every nature among
them.

     Section 4.7. Severability. If any provision of this Agreement becomes or is declared
by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall
continue in full force and effect without said provision; provided that if the severance of
such provision materially changes the economic benefits of this Agreement to either party as such
benefits are anticipated as of the date hereof, then such party may terminate this Agreement on
five (5) Business Days prior written notice to the other party. In such event, the Purchase
Agreement will terminate simultaneously with the termination of this Agreement.

     Section 4.8. Notices. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be given in accordance with Section 10.04 of
the Purchase Agreement.

     Section 4.9. Governing Law. This Agreement shall be construed under the laws of the
State of New York.

     Section 4.10. Headings. The headings in this Agreement are for convenience of
reference only and shall not constitute a part of this Agreement, nor shall they affect their
meaning, construction or effect.

     Section 4.11. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed to be an original instrument and all of which together shall
constitute one and the same instrument.

     Section 4.12. Further Assurances. Each party shall cooperate and take such action as
may be reasonably requested by another party in order to carry out the provisions and purposes of
this Agreement and the transactions contemplated hereby.

     Section 4.13. Absence of Presumption. This Agreement shall be construed without
regard to any presumption or rule requiring construction or interpretation against the party
drafting or causing any instrument to be drafted.

[Remainder of this page intentionally left blank]

9

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by the
undersigned, thereunto duly authorized, as of the date first set forth above.

	 	 	 	 	 
	 	 	CELL GENESYS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen A. Sherwin
	 

	 	 	 	 
	 

	 	 	 	Stephen A. Sherwin, M.D.
	 

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	 	 	KINGSBRIDGE CAPITAL LIMITED
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Maria O’Donoghue
	 

	 	 	 	 
	 

	 	 	 	Maria O’Donoghue
	 

	 	 	 	Director

SIGNATURE PAGE — REGISTRATION RIGHTS AGREEMENTexv10w3

 

Exhibit 10.3

Execution Copy

WARRANT

THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), 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 REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED
OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
A TRANSACTION WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

February 5, 2007

     Warrant to Purchase up to Four Hundred Twenty One Thousand Nine Hundred Eighteen (421,918)
shares of Common Stock of Cell Genesys, Inc. (the “Company”).

     In consideration for Kingsbridge Capital Limited, an entity organized and existing under the
laws of the British Virgin Islands, whose registered address is Palm Grove House, 2nd Floor, Road
Town, Tortola, British Virgin Islands (the “Investor”), agreeing to enter into that certain
Common Stock Purchase Agreement, dated as of the date hereof, between the Investor and the Company
(the “Agreement”), the Company hereby agrees that the Investor or any other Warrant Holder
(as hereinafter defined) is entitled, on the terms and conditions set forth below, to purchase from
the Company at any time during the Exercise Period (as hereinafter defined) up to four hundred
twenty one thousand nine hundred eighteen (421,918) fully paid and nonassessable shares of common
stock, par value $0.001 per share, of the Company (the “Common Stock”) at the Exercise
Price (as hereinafter defined), as the same may be adjusted from time to time pursuant to Section 6
hereof. The resale of the shares of Common Stock or other securities issuable upon exercise or
exchange of this Warrant is subject to the provisions of the Registration Rights Agreement.
Capitalized terms used herein and not otherwise defined shall have the meanings given them in the
Agreement.

     Section 1. Definitions.

     “Affiliate” shall mean any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by, or is under direct or indirect common control with
any other Person. For the purposes of this definition, “control,” when used with respect to any
Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise, and the
term “controls” and “controlled” have meanings correlative to the foregoing.

     “Closing Price” as of any particular day shall mean the closing price per share of the
Company’s Common Stock as reported by Bloomberg L.P. on such day.

     “Exercise Period” shall mean that period beginning six months after the date of this
Warrant and continuing until (i) the expiration of the five year period thereafter, or (ii) a
Funding Default, subject in each case to earlier termination in accordance with Section 6 hereof.

     “Exercise
Price” as of the date hereof shall mean four dollars and
sixty-eight cents ($4.68), representing 145% of the average Closing
Price of the Common Stock during the five (5) Trading Days
immediately preceding the date of this Warrant.

 

 

     “Funding Default” shall mean a failure by the Investor to accept a Draw Down Notice
made by the Company and to acquire and pay for the Shares in accordance therewith within three (3)
Business Days following the delivery of such Shares to the Investor, provided, that such
Draw Down Notice was made in accordance with the terms and conditions of the Agreement (including
the satisfaction or waiver of the conditions to the obligation of the Investor to accept a Draw
Down set forth in Article VII of the Agreement), provided, further, that such
failure was reasonably within the control of the Investor.

     “Per Share Warrant Value” shall mean the difference resulting from subtracting the
Exercise Price from the Closing Price on the Trading Day immediately preceding the Exercise Date.

     “Person” shall mean an individual, a corporation, a partnership, a limited liability
company, an association, a trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

     “Principal Market” shall mean the NASDAQ Global Select Market, the NASDAQ Global
Market, the NASDAQ Capital Market, the American Stock Exchange or the New York Stock Exchange,
whichever is at the time the principal trading exchange or market for the Common Stock.

     “SEC” shall mean the United States Securities and Exchange Commission.

     “Trading Day” shall mean any day other than a Saturday or a Sunday on which the
Principal Market is open for trading in equity securities.

     “Warrant Holder” shall mean the Investor or any permitted assignee or permitted
transferee of all or any portion of this Warrant.

     “Warrant Shares” shall mean those shares of Common Stock received or to be received
upon exercise of this Warrant.

     Section 2. Exercise.

     (a) Method of Exercise. This Warrant may be exercised in whole or in part (but not as
to a fractional share of Common Stock), at any time and from time to time during the Exercise
Period, by the Warrant Holder by (i) surrender of this Warrant, with the form of exercise attached
hereto as Exhibit A completed and duly executed by the Warrant Holder (the “Exercise
Notice”), to the Company at the address set forth in Section 10.04 of the Agreement,
accompanied by payment of the Exercise Price multiplied by the number of shares of Common Stock for
which this Warrant is being exercised (the “Aggregate Exercise Price”) or (ii) telecopying
an executed and completed Exercise Notice to the Company and delivering to the Company within five
(5) Business Days thereafter the original Exercise Notice, this Warrant and the Aggregate Exercise
Price. The later of the date on which an Exercise Notice is received by the Company in accordance
with clauses (i) or (ii) above or the Company receives payment of the Exercise Price (unless the
Warrant is exercised as provided in Section 2(c) below) shall be deemed an “Exercise Date.”

     (b) Payment of Aggregate Exercise Price. Subject to paragraph (c) below, payment of
the Aggregate Exercise Price shall be made by wire transfer of immediately available funds to an
account designated by the Company. If the amount of the payment received by the Company is less
than the Aggregate Exercise Price, the Warrant Holder will be notified of the deficiency and shall
make payment in that amount within three (3) Business Days. In the event the payment exceeds the
Aggregate Exercise Price, the Company will refund the excess to the Warrant Holder within five (5)
Business Days of receipt.

2

 

     (c) Cashless Exercise. In the event that the Warrant Shares to be received by the
Warrant Holder upon exercise of the Warrant may not be resold pursuant to an effective registration
statement or an exemption to the registration requirements of the Securities Act of 1933, as
amended (the “Securities Act”), and applicable state laws, the Warrant Holder may, as an
alternative to payment of the Aggregate Exercise Price upon exercise in accordance with paragraph
(b) above, elect to effect a cashless exercise by so indicating on the Exercise Notice and
including a calculation of the number of shares of Common Stock to be issued upon such exercise in
accordance with the terms hereof (a “Cashless Exercise”). If a registration statement on
Form S-1 or Form S-3 under the Securities Act, or such other form as deemed appropriate by counsel
to the Company for the registration for the resale by the Warrant Holder of (x) the shares of
Common Stock of the Company that may be purchased under the Agreement, (y) the Warrant Shares, or
(z) any securities issued or issuable with respect to any of the foregoing by way of exchange,
stock dividend or stock split or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization or otherwise, has been declared effective by the SEC
and remains effective, the Company may, in its sole discretion, permit the Warrant Holder to elect
to effect a Cashless Exercise or require the Warrant Holder to pay the Exercise Price of the
Warrant Shares being purchased by the Warrant Holder under this Warrant. In the event of a
Cashless Exercise, the Warrant Holder shall receive that number of shares of Common Stock
determined by (i) multiplying the number of Warrant Shares for which this Warrant is being
exercised by the Per Share Warrant Value and (ii) dividing the product by the Closing Price on the
Trading Day immediately preceding the Exercise Date, rounded to the nearest whole share. The
Company shall cancel the total number of Warrant Shares equal to the excess of the number of the
Warrant Shares for which this Warrant is being exercised over the number of Warrant Shares to be
received by the Warrant Holder pursuant to such Cashless Exercise.

     (d) Replacement Warrant. In the event that the Warrant is not exercised in full, the
number of Warrant Shares shall be reduced by the number of such Warrant Shares for which this
Warrant is exercised, and the Company, at its expense, shall forthwith issue and deliver to or upon
the order of the Warrant Holder a new Warrant of like tenor in the name of the Warrant Holder,
reflecting such adjusted number of Warrant Shares.

     Section 3. Exercise Limitation. The Warrant Holder may not exercise this Warrant such
that the number of Warrant Shares to be received pursuant to such exercise aggregated with all
other shares of Common Stock then owned by the Warrant Holder beneficially or deemed beneficially
owned by the Warrant Holder would result in the Warrant Holder owning more than 19.9% of all of
such Common Stock as would be outstanding on such Exercise Date, as determined in accordance with
Section 13(d) of the Exchange Act of 1934 and the rules and regulations promulgated thereunder.

     Section 4. Delivery of Warrant Shares.

     (a) Subject to the terms and conditions of this Warrant, as soon as practicable after the
exercise of this Warrant in full or in part, and in any event within ten (10) Business Days
thereafter, the Company at its expense (including, without limitation, the payment by it of any
applicable issue taxes) will cause to be issued in the name of and delivered to the Warrant Holder,
or as the Warrant Holder may lawfully direct, a certificate or certificates for, or make deposit
with the Depositary Trust Company via book-entry of, the number of validly issued, fully paid and
non-assessable Warrant Shares to which the Warrant Holder shall be entitled on such exercise,
together with any other stock or other securities or property (including cash, where applicable) to
which the Warrant Holder is entitled upon such exercise in accordance with the provisions hereof.

     (b) This Warrant may not be exercised as to fractional shares of Common Stock. In the event
that the exercise of this Warrant, in full or in part, would result in the issuance of any
fractional share of

3

 

Common Stock, then in such event the Warrant Holder shall receive the number of shares rounded
to the nearest whole share.

     Section 5. Representations, Warranties and Covenants of the Company.

     (a) The Warrant Shares, when issued in accordance with the terms hereof, will be duly
authorized and, when paid for or issued in accordance with the terms hereof, shall be validly
issued, fully paid and non-assessable.

     (b) The Company shall take all commercially reasonable actions and proceedings as may be
required and permitted by applicable law, rule and regulation for the legal and valid issuance of
this Warrant and the Warrant Shares to the Warrant Holder.

     (c) The Company has authorized and reserved for issuance to the Warrant Holder the requisite
number of shares of Common Stock to be issued pursuant to this Warrant. The Company shall at all
times reserve and keep available, solely for issuance and delivery as Warrant Shares hereunder,
such shares of Common Stock as shall from time to time be issuable as Warrant Shares.

     (d) From the date hereof through the last date on which this Warrant is exercisable, the
Company shall take all commercially reasonable actions to ensure that the Common Stock remains
listed or quoted on the Principal Market.

     Section 6. Adjustment of the Exercise Price. The Exercise Price and, accordingly, the
number of Warrant Shares issuable upon exercise of the Warrant, shall be subject to adjustment from
time to time upon the happening of certain events as follows:

     (a) Reclassification, Consolidation, Merger, Mandatory Share Exchange, Sale or
Transfer.

               (i) Upon occurrence of any of the events specified in subsection (a)(ii) below (the
“Adjustment Events”) while this Warrant is unexpired and not exercised in full, the Warrant
Holder may in its sole discretion require the Company, or any successor or purchasing corporation,
as the case may be, without payment of any additional consideration therefor, to execute and
deliver to the Warrant Holder a new Warrant providing that the Warrant Holder shall have the right
to exercise such new Warrant (upon terms not less favorable to the Warrant Holder than those then
applicable to this Warrant) and to receive upon such exercise, in lieu of each share of Common
Stock theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock,
other securities, money or property receivable upon such Adjustment Event by the holder of one
share of Common Stock issuable upon exercise of this Warrant had this Warrant been exercised
immediately prior to such Adjustment Event. Such new Warrant shall provide for adjustments that
shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section
6.

               (ii) The Adjustment Events shall be (1) any reclassification or change of Common Stock (other
than a change in par value, as a result of a subdivision or combination of Common Stock or in
connection with an Excluded Merger or Sale), (2) any consolidation, merger or mandatory share
exchange of the Company with or into another corporation (other than a merger or mandatory share
exchange with another corporation in which the Company is a continuing corporation and which does
not result in any reclassification or change other than a change in par value or as a result of a
subdivision or combination of Common Stock), other than (each of the following referred to as an
“Excluded Merger or Sale”) a transaction involving (A) sale of all or substantially all of
the assets of the Company, (B) any merger, consolidation or similar transaction where the
consideration payable to the shareholders of the Company by the acquiring Person consists
substantially of cash or publicly traded securities, or a

4

 

combination thereof, or where the acquiring Person does not agree to assume the obligations of
the Company under outstanding warrants (including this Warrant). In the event of an Excluded
Merger or Sale, the Company shall deliver a notice to the Warrant Holder at least 10 days before
the consummation of such Excluded Merger or Sale, the Warrant Holder may exercise this Warrant at
any time before the consummation of such Excluded Merger or Sale (and such exercise may be made
contingent upon the consummation of such Excluded Merger or Sale), and any portion of this Warrant
that has not been exercised before consummation of such Excluded Merger or Sale shall terminate and
expire, and shall no longer be outstanding.

     (b) Subdivision or Combination of Shares. If the Company, at any time while this
Warrant is unexpired and not exercised in full, shall subdivide its Common Stock, the Exercise
Price shall be proportionately reduced as of the effective date of such subdivision, or, if the
Company shall take a record of holders of its Common Stock for the purpose of so subdividing, as of
such record date, whichever is earlier. If the Company, at any time while this Warrant is
unexpired and not exercised in full, shall combine its Common Stock, the Exercise Price shall be
proportionately increased as of the effective date of such combination, or, if the Company shall
take a record of holders of its Common Stock for the purpose of so combining, as of such record
date, whichever is earlier.

     (c) Stock Dividends. If the Company, at any time while this Warrant is unexpired and
not exercised in full, shall pay a dividend or other distribution in shares of Common Stock to all
holders of Common Stock, then the Exercise Price shall be adjusted, as of the date the Company
shall take a record of the holders of its Common Stock for the purpose of receiving such dividend
or other distribution (or if no such record is taken, as at the date of such payment or other
distribution), to that price determined by multiplying the Exercise Price in effect immediately
prior to such payment or other distribution by a fraction: (i) the numerator of which shall be
the total number of shares of Common Stock outstanding immediately prior to such dividend or
distribution, and (ii) the denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such dividend or distribution. The provisions of this subsection (c)
shall not apply under any of the circumstances for which an adjustment is provided in subsections
(a) or (b).

     (d) Liquidating Dividends, Etc. If the Company, at any time while this Warrant is
unexpired and not exercised in full, makes a distribution of its assets or evidences of
indebtedness to the holders of its Common Stock as a dividend in liquidation or by way of return of
capital or other than as a dividend payable out of earnings or surplus legally available for
dividends under applicable law or any distribution to such holders made in respect of the sale of
all or substantially all of the Company’s assets (other than under the circumstances provided for
in the foregoing subsections (a) through (c)), then the Warrant Holder shall be entitled to receive
upon exercise of this Warrant in addition to the Warrant Shares receivable in connection therewith,
and without payment of any consideration other than the Exercise Price, the kind and amount of such
distribution per share of Common Stock multiplied by the number of Warrant Shares that, on the
record date for such distribution, are issuable upon such exercise of the Warrant (with no further
adjustment being made following any such event which causes an adjustment in the number of Warrant
Shares issuable), and an appropriate provision therefor shall be made a part of any such
distribution. The value of a distribution that is paid in other than cash shall be determined in
good faith by the Board of Directors of the Company. Notwithstanding the foregoing, in the event
of a proposed dividend in liquidation or distribution to the shareholders made in respect of the
sale of all or substantially all of the Company’s assets, the Company shall deliver a notice to the
Warrant Holder at least 10 days before the consummation of such event, the Warrant Holder may
exercise this Warrant at any time before the consummation of such event (and such exercise may be
made contingent upon the consummation of such event), and any portion of this Warrant that has not
been exercised before consummation of such event shall terminate and expire, and shall no longer be
outstanding.

5

 

     Section 7. Notices. Whenever the Exercise Price or number of Warrant Shares shall be
adjusted pursuant to Section 6 hereof, the Company shall promptly prepare a certificate signed by
its Chief Executive Officer or Chief Financial Officer setting forth in reasonable detail the event
requiring the adjustment, the amount of the adjustment, the method by which such adjustment was
calculated (including a description of the basis on which the Company’s Board of Directors made any
determination hereunder), and the Exercise Price and number of Warrant Shares purchasable at that
Exercise Price after giving effect to such adjustment, and shall promptly cause copies of such
certificate to be sent by overnight courier to the Warrant Holder. In the event of any taking by
the Company of a record of the holders of any class of securities for the purpose of determining
the holders thereof who are entitled to receive any dividend (other than a cash dividend) or other
distribution, any right to subscribe for, purchase or otherwise acquire any shares of stock of any
class or any other securities or property, or to receive any other similar right accruing to a
stockholder by virtue of ownership of shares of the Company’s capital stock, the Company shall mail
to the Warrant Holder, at least five (5) Business Days prior to the date specified therein, a
notice specifying the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, and the amount and character of such dividend, distribution or
right.

     Section 8. No Impairment. The Company will not, by amendment of its Certificate or
Bylaws or through any reorganization, transfer of assets, consolidation, merger, dissolution or
issue or sale of securities, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such
terms and in the taking of all such action as may be necessary or appropriate in order to protect
the rights of the Warrant Holder against impairment. Without limiting the generality of the
foregoing, the Company (a) will not increase the par value of any Warrant Shares above the amount
payable therefor on such exercise, and (b) will take all such action as may be reasonably necessary
or appropriate in order that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares on the exercise of this Warrant.

     Section 9. Rights As Stockholder. Except as set forth in Section 6 above, prior to
exercise of this Warrant, the Warrant Holder shall not be entitled to any rights as a stockholder
of the Company with respect to the Warrant Shares, including (without limitation) the right to vote
such shares, receive dividends or other distributions thereon or be notified of stockholder
meetings.

     Section 10. Replacement of Warrant. Upon receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of the Warrant and, in the case of any
such loss, theft or destruction of the Warrant, upon delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation,
on surrender and cancellation of such Warrant, the Company at its expense will execute and deliver,
in lieu thereof, a new Warrant of like tenor.

     Section 11. Governing Law. This Warrant shall be construed under the laws of the
State of New York.

     Section 12. Entire Agreement; Amendments. Except for any written instrument
concurrent or subsequent to the date hereof executed by the Company and the Investor, this Warrant
and the Agreement contain the entire understanding of the parties with respect to the matters
covered hereby and thereby. No provision of this Warrant may be waived or amended other than by a
written instrument signed by the party against whom enforcement of any such amendment or waiver is
sought.

6

 

     Section 13. Restricted Securities.

     (a) Registration or Exemption Required. This Warrant has been issued in a transaction
exempt from the registration requirements of the Securities Act in reliance upon the provisions of
Section 4(2) thereof and Regulation D thereof, and/or upon such other exemption from the
registration requirements of the Securities Act as may be available with respect to this Warrant.
This Warrant and the Warrant Shares issuable upon exercise of this Warrant may not be resold except
pursuant to an effective registration statement or an exemption to the registration requirements of
the Securities Act and applicable state laws.

     (b) Legend. Any replacement Warrants issued pursuant to Section 2 and Section 10
hereof and, unless a registration statement has been declared effective by the SEC and remains
effective in accordance with the Securities Act, with respect thereto, any Warrant Shares issued
upon exercise hereof, shall bear the following legend:

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), 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 REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO A TRANSACTION WHICH IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION.”

     (c) No Other Legend or Stock Transfer Restrictions. No legend other than the one
specified in Section 13(b) has been or shall be placed on the share certificates representing the
Warrant Shares and no instructions or “stop transfer orders” (so called “stock transfer
restrictions”) or other restrictions have been or shall be given to the Company’s transfer agent
with respect thereto other than as expressly set forth in this Section 13.

     (d) Assignment. Assuming the conditions of Section 13(a) above regarding registration
or exemption have been satisfied, the Warrant Holder may sell, transfer, assign, pledge or
otherwise dispose of this Warrant (each of the foregoing, a “Transfer”), in whole or in
part, but only to an Affiliate of the Warrant Holder. The Warrant Holder shall deliver a written
notice to the Company, substantially in the form of the Assignment attached hereto as Exhibit B,
indicating the person or persons to whom the Warrant shall be Transferred and the respective number
of Warrant Shares to be covered by the warrants to be Transferred to each assignee. The Company
shall effect the Transfer within ten (10) days, and shall deliver to the Transferee(s) designated
by the Warrant Holder a Warrant or Warrants of like tenor and terms for the appropriate number of
shares. In connection with and as a condition of any such proposed Transfer, the Company may
request the Warrant Holder to provide an opinion of counsel to the Warrant Holder in form and
substance reasonably satisfactory to the Company to the effect that the proposed Transfer complies
with all applicable federal and state securities laws.

     (e) Investor’s Compliance. Nothing in this Section 13 shall affect in any way the
Investor’s obligations under any agreement to comply with all applicable securities laws upon
resale of the Common Stock.

7

 

     Section 14. Notices. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be given in accordance with Section 10.04 of
the Agreement.

     Section 15. Miscellaneous. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party against which
enforcement of such change, waiver, discharge or termination is sought. The headings in this
Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the
terms hereof. The invalidity or unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provision.

     Section 16. Company Call Right.

     (a) If a Funding Default occurs, the Company shall have the right to demand the surrender of
this Warrant or any remaining portion thereof, Shares and/or cash from the Investor as follows (the
“Call Right”):

               (i) If the Investor has not previously exercised this Warrant in full, then this Warrant shall
automatically be deemed to have been canceled and shall have no further force or effect.

               (ii) If, prior to receiving a Call Right Notice, the Investor has previously exercised this
Warrant with respect to some or all of the Warrant Shares, and the Investor has not previously sold
such Warrant Shares, then Company shall have a right to purchase from the Investor that number of
shares of Common Stock equal to the number of shares of Common Stock issued in connection with the
exercise(s) of the Warrant, at a repurchase price per share equal to the cash price per share paid
by the Investor in connection with such exercise(s). For greater certainty, (a) if Warrant Shares
were exercised for cash, the purchase price per share under the Call Right shall be equal to the
Exercise Price, (b) if Warrant Shares were exercised on a cashless exercise basis, the purchase
price per share for such Warrant Shares under the Call Right shall be zero, and (c) if such Warrant
Shares were exercised on both a cash and cashless exercise basis, the purchase price per share
under the Call Right shall be equal to the total amount of cash paid in connection with such cash
exercise(s) divided by the total number of shares of Common Stock issued in connection with all
exercises of the Warrant (whether on a cash or cashless basis).

               (iii) If, prior to receiving a Call Right Notice, the Investor has previously exercised this
Warrant with respect to some or all of the Warrant Shares, and the Investor subsequently sold such
Warrant Shares, then the Investor shall remit to the Company the excess, if any, of (x) the
proceeds received by Investor through the sale of such Warrant Shares, over (y) the aggregate
Exercise Price for such Warrant Shares. In the event that the Investor obtained such Warrant
Shares through a Cashless Exercise, then the Investor shall instead remit to the Company all
proceeds received by the Investor through the sale of such Warrant Shares. For the avoidance of
doubt, in the event that the Investor has sold some or all of the Warrant Shares prior to receiving
a Call Right Notice, then the right set forth in this paragraph (iii) shall constitute the sole
Call Right of the Company with respect to such Warrant Shares which have been sold.

     (b) The Company may exercise the Call Right by delivering a notice (the “Call Right
Notice”) to the Investor within thirty (30) days after the occurrence of a Funding Default. On
the tenth (10th) Business Day following delivery of the Call Right Notice to the
Investor, the Company shall tender the purchase price, if any, and the Investor shall tender shares
of Common Stock, if any, to be sold to the Company pursuant to the Call Right Notice, immediately
following which the Company and the Investor shall consummate such purchase and sale. The Call
Right shall survive both the assignment of the

8

 

Warrant by the Investor and the disposition of the Warrant Shares by the Investor following
exercise of the Warrant.

     Section 17. Absence of Presumption. This Warrant shall be construed without regard to
any presumption or rule requiring construction or interpretation against the party drafting or
causing any instrument to be drafted.

[Remainder of this page intentionally left blank]

9

 

     IN WITNESS WHEREOF, this Warrant was duly executed by the undersigned, thereunto duly
authorized, as of the date first set forth above.

	 	 	 	 	 
	 	CELL GENESYS, INC.

 	 
	 	By:  	/s/ Stephen A. Sherwin
 	 
	 	 	Stephen A. Sherwin, M.D. 	 
	 	 	Chief Executive Officer 	 
	 

     Investor acknowledges and agrees to the terms and conditions of this Warrant.

	 	 	 	 	 
	 	KINGSBRIDGE CAPITAL LIMITED

 	 
	 	By:  	/s/
Maria O’Donoghue
 	 
	 	 	Maria O’Donoghue 	 
	 	 	Director 	 
	 

SIGNATURE
PAGE - WARRANT

 

EXHIBIT A TO THE WARRANT

EXERCISE FORM

CELL GENESYS, INC.

     The
undersigned hereby irrevocably exercises the right to purchase                                         shares
of Common Stock of Cell Genesys, Inc., a Delaware corporation (the “Company”), evidenced by the
attached Warrant, and (CIRCLE EITHER (i) or (ii)) (i) tenders herewith payment of the Aggregate
Exercise Price with respect to such shares in full, in the amount of $                     , in cash, by
certified or official bank check or by wire transfer for the account of the Company or (ii) elects,
pursuant to Section 2(c) of the Warrant, to convert such Warrant into shares of Common Stock of the
Company on a cashless exercise basis, all in accordance with the conditions and provisions of said
Warrant.

     The undersigned requests that stock certificates for such Warrant Shares be issued, and a
Warrant representing any unexercised portion hereof be issued, pursuant to this Warrant, in the
name of the registered Warrant Holder and delivered to the undersigned at the address set forth
below.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 	 	 
	Signature of Registered Holder	 	 
	 
	 	 	 	 
	 	 	 
	Name of Registered Holder (Print)	 	 
	 
	 	 	 	 
	 	 	 
	Address
	 	 	 	 

 

 

EXHIBIT B TO THE WARRANT

ASSIGNMENT

     (To be executed by the registered Warrant Holder desiring to transfer the Warrant)

     FOR VALUED RECEIVED, the undersigned Warrant Holder of the attached Warrant hereby sells,
assigns and transfers unto the persons below named the right to
purchase                                           shares of
Common Stock of Cell Genesys, Inc. (the “Company”) evidenced by the attached Warrant and
does hereby irrevocably constitute and appoint                      attorney to transfer the said
Warrant on the books of the Company, with full power of substitution in the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 	 	 
	Signature	 	 
	 
	 	 	 	 
	Fill in for new Registration of Warrant:
	 
	 	 	 	 
	 	 	 
	Name
	 
	 	 	 	 
	 	 	 
	Address
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Please print name and address of assignee
	(including

	 	zip code number)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]