Document:

EX-4.1

 Exhibit 4.1 

Form of Warrant 

STEMCELLS, INC. 

WARRANT TO PURCHASE COMMON STOCK 

Date of Issuance: April     , 2015 

VOID AFTER April [•], 2020 

THIS WARRANT TO PURCHASE COMMON STOCK (the “Warrant”) certifies that, for value
received,                     , or permitted registered assigns (the “Holder”), is entitled, upon the terms and subject to the
limitations on exercise and the conditions hereinafter set forth, at any time on or after the Date of Issuance and on or prior to the close of business on the five (5) year anniversary of the Date of Issuance (the “Termination
Date”) but not thereafter, to subscribe for and purchase at the Exercise Price (defined below) from StemCells, Inc., a Delaware corporation (the “Company”), up to
            shares of the common stock of the Company, par value $0.01 per share (the “Common Stock”). This warrant is one of a series of warrants issued by the Company as
of the date hereof (individually a “Warrant”; collectively, “Company Warrants”). 

1. DEFINITIONS. As used herein, the following terms shall have the following meanings: 

(a) “Exercise Period” shall mean the period commencing with the date hereof and ending five (5) years from the date
hereof, unless sooner terminated as provided below. 
 (b) “Exercise Price” shall mean $0.85 per share, subject to
adjustment pursuant to Section 4 below. 
 (c) “Exercise Shares” shall mean the shares of Common Stock
issuable upon exercise of this Warrant. 
 (d) “Trading Day” shall mean (i) any day on which the Common Stock is
listed or quoted and traded on its primary Trading Market, (ii) if the Common Stock is not then listed or quoted and traded on any Trading Market (meaning any of the NYSE, NYSE MKT or NASDAQ), then a day on which trading occurs on the OTCQX or
OTCQB (or any successor thereto), or (iii) if trading does not occur on the OTCQX or OTCQB (or any successor thereto), any business day. 

2. EXERCISE OF WARRANT. 

2.1 STANDARD EXERCISE OF WARRANT. The rights represented by this Warrant 

 
may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company at its address set forth on the signature page hereto (or at such other
office or agent of the Company as it may designate by notice in writing to the Holder): 
 (a) An executed Notice of Exercise in the
form attached hereto; and 
 (b) Payment of the Exercise Price either (i) in cash or by check (subject to the limitations in
Section 2.4 below), or (ii) pursuant to net exercise terms outlined under Section 2.2 below. 
 No ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. The Holder shall not be required to physically surrender this Warrant to the Company until
the Holder has purchased all of the Exercise Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date
the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Exercise Shares available hereunder shall have the effect of lowering the outstanding number of
Exercise Shares purchasable hereunder in an amount equal to the applicable number of Exercise Shares purchased. The Holder and the Company shall maintain records showing the number of Exercise Shares purchased and the date of such purchases. The
Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Exercise Shares hereunder, the number of Exercise Shares available for
purchase hereunder at any given time may be less than the amount stated on the face hereof. 
 Exercise Shares purchased hereunder shall
be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposits and Withdrawal at Custodian (DWAC) system if the Company is a
participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the delivery to the Company of the Notice of Exercise (such date,
the “Exercise Share Delivery Date”), provided that the Company shall not be obligated to deliver Exercise Shares hereunder unless the Company has received the aggregate Exercise Price on or before the Exercise Share Delivery Date.
This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company. The Exercise Shares 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 this Warrant has been exercised by payment to the Company of the Exercise Price. 

Notwithstanding the foregoing, the Company shall not be required to make the payments set forth herein in the case of uncertificated Exercise
Shares if the Holder fails to timely file a request with the depository trust company to receive such uncertificated Exercise Shares. 
 The
person in whose name any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment
of the Exercise Price was 

  
 2 

 
made, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open. 

Notwithstanding the foregoing, if the Company fails to cause the transfer agent to transmit to the Holder a certificate or the certificates
representing the Exercise Shares pursuant to an exercise on or before the Exercise Share Delivery Date, then the Holder will have the right to rescind such Notice of Exercise. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver a certificate pursuant to the terms hereof.

 In addition, if the Company fails for any reason to deliver to the Holder the Exercise Shares subject to a Notice of Exercise by the
close of business on the 2nd Trading Day following the Exercise Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of
Exercise Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day for each Trading Day after such Exercise Share Delivery Date until such Exercise Shares are
delivered or the Holder rescinds such exercise. For purposes herein, “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a
Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day
from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is not then listed or quoted on a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a
similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by
an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. 

In addition to any other rights available to the Holder, if the Company fails to cause the transfer agent of the Company to transmit to the
Holder the Exercise Shares in accordance with the provisions of Section 2.1 above pursuant to an exercise on or before the Exercise Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market
transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Exercise Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (1) the number of Exercise Shares that the 

  
 3 

 
Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and
(B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Exercise Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the
number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a
Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
 2.2 NET EXERCISE. If
during the Exercise Period, the issuance of the Exercise Shares to the Holder is not covered by the registration statement on Form S-3 (File No. 333-193100) or any other effective registration statement under the Securities Act of 1933, as
amended, and the fair market value of one share of the Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), the Company shall be permitted to satisfy its obligation to issue the shares to be issued on
exercise of this Warrant by issuing to the Holder, and the Holder shall be permitted to exercise all or part of this Warrant by electing to receive, shares equal to the value (as determined below) of this Warrant (or the portion thereof being
canceled), in lieu of paying the Exercise Price in immediately available funds. Upon delivery of a properly endorsed Notice of Exercise, the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

 X = Y (A-B) 
 A 

 

							
			 Where
		X =		the number of shares of Common Stock to be issued to the Holder
				
					Y =		the number of shares of Common Stock for which the Warrant is then being exercised
				
					A =		the fair market value of one share of the Company’s Common Stock (at the date of such calculation)
				
					B =		Exercise Price in effect at the time of exercise

 For purposes of the above calculation, the “fair market value” of one share of Common Stock shall
mean (i) the average of the closing sales prices for the shares of Common Stock on 

  
 4 

 
the NASDAQ Capital Market or other Trading Market where such security is listed or traded as reported by Bloomberg Financial Markets (or a comparable reporting service of national reputation
selected by the Company and reasonably acceptable to the Holder if Bloomberg Financial Markets is not then reporting sales prices of such security) (collectively, “Bloomberg”) for the ten (10) consecutive trading days
immediately preceding such date, or (ii) if the NASDAQ Capital Market is not the principal Trading Market for the shares of Common Stock, the average of the reported sales prices reported by Bloomberg on the principal Trading Market for the
Common Stock during the same period, or, if there is no sales price for such period, the last sales price reported by Bloomberg for such period, or (iii) if neither of the foregoing applies, the last sales price of such security in the
over-the-counter market on the pink sheets or bulletin board for such security as reported by Bloomberg, or if no sales price is so reported for such security, the last bid price of such security as reported by Bloomberg or (iv) if fair market
value cannot be calculated as of such date on any of the foregoing bases, the fair market value shall be as determined by the Board of Directors of the Company in the exercise of its good faith judgment. 

2.3 ISSUANCE OF NEW WARRANTS. Upon any partial exercise of this Warrant, the Company, at its expense, will, upon the written
request of the Holder and upon surrender of this Warrant, forthwith and, in any event within five Trading Days after the surrender of this Warrant, issue and deliver to the Holder a new warrant or warrants of like tenor, registered in the name of
the Holder, exercisable, in the aggregate, for the balance of the number of shares of Common Stock remaining available for purchase under this Warrant. 

2.4 EXERCISE LIMITATIONS; HOLDER’S RESTRICTIONS. A Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise, such Holder (together with such Holder’s affiliates) would beneficially own in excess of 4.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to such issuance. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include the number of
shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the
remaining, nonexercised portion of this Warrant beneficially owned by such Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without
limitation, any other shares of Common Stock or Warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by such Holder or any of its affiliates. Except as set forth in the preceding
sentence, for purposes of this Section 2.4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act, it being acknowledged by a Holder that the Company is not representing to such Holder that
such calculation is in compliance with Section 13(d) of the Exchange Act and such Holder is solely responsible for any schedules or other filings required to be filed under the Exchange Act. To the extent that the limitation contained in this
Section 2.4 applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which a portion of this Warrant is exercisable shall be in the sole discretion of a Holder, and
the submission of a Notice of Exercise shall be deemed to be each Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of this Warrant is

  
 5 

 
exercisable, in each case subject to such aggregate percentage limitation, and the Company shall be entitled to rely on the Holder’s determination and shall have no obligation to verify or
confirm the accuracy of such determination. For purposes of this Section 2.4, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in
(x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Company’s Transfer Agent setting forth the number
of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the
number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by such Holder or its affiliates since the date as of which such number of
outstanding shares of Common Stock was reported. The provisions of this Section 2.4 may be waived by such Holder, at the election of such Holder, upon not less than sixty-one (61) days’ prior notice to the Company, and the
provisions of this Section 2.4 shall continue to apply until such 61st day (or such later date, as determined by such Holder, as may be specified in such notice of waiver). 

3. COVENANTS OF THE COMPANY. 

3.1 COVENANTS AS TO EXERCISE SHARES. The Company covenants and agrees that all Exercise Shares that may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. 

The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free
from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Common Stock shall
not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be
sufficient for such purposes. 
 3.2 NO IMPAIRMENT. The Company will not, by amendment of its Certificate of Incorporation or
through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed
hereunder by the Company, and will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect the exercise rights of the
Holder against impairment. 
 3.3 NOTICES OF RECORD DATE AND CERTAIN OTHER EVENTS. 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 or other distribution, the Company shall provide to the Holder, at least ten (10) days prior to the
date on which any such record is to be taken for the purpose of such dividend or distribution, a notice specifying such 

  
 6 

 
date. In the event of any voluntary dissolution, liquidation or winding up of the Company, the Company shall provide to the Holder, at least ten (10) days prior to the date of the occurrence
of any such event, a notice specifying such date. In the event the Company authorizes or approves, enters into any agreement contemplating, or solicits stockholder approval for any Fundamental Transaction, as defined in Section 6 herein,
the Company shall provide to the Holder, at least ten (10) days prior to the date of the occurrence of such Fundamental Transaction, a notice specifying such date. Notwithstanding the foregoing, the failure to deliver such notice or any defect
therein shall not affect the validity of the corporate action required to be described in such notice. 
 4. ADJUSTMENT OF EXERCISE
PRICE AND EXERCISE SHARES. 
 (a) If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on
its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding
shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of
which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or
combination. The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant. 

(b) If the Company, at any time while this Warrant is outstanding, distributes to holders of Common Stock, (i) Common Stock or any
shares of stock or other securities which are at any time directly or indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or
other distribution (other than a dividend or distribution covered in Section 4(a) above); (ii) any cash paid or payable otherwise than as a cash dividend; or (iii) any other asset, then and in each such case, the Holder hereof
will, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to in clauses (ii) and (iii) above) which such Holder would hold on the date of such exercise had such Holder been the holder of record of such Common Stock as of the date on which holders of
Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property. 

(c) Upon the occurrence of each adjustment pursuant to this Section 4, the Company at its expense will, at the written
request of the Holder, promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of
Exercise Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the
Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s transfer agent. 

  
 7 

 5. FRACTIONAL SHARES. No fractional shares shall be issued upon the exercise of
this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any
fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the
product resulting from multiplying the then current fair market value of an Exercise Share by such fraction. 
 6. FUNDAMENTAL
TRANSACTIONS. If, at any time while this Warrant is outstanding, (i) the Company effects any merger or consolidation of the Company with or into another entity, in which the shareholders of the Company as of immediately prior to the
transaction own less than a majority of the outstanding stock of the surviving entity, (ii) any tender offer or exchange offer (whether by the Company or another person or entity) is completed pursuant to which the holders of more than the 50%
of the outstanding shares of Common Stock (not including any shares of Common Stock held by the person or persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer) are
permitted to tender or exchange their shares for other securities, cash or property, or (iii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, or (iv) the Company effects
any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of
shares of Common Stock covered by Section 4 above), (v) the Company consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another person whereby such other person acquires more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated or
affiliated with the other persons making or party to, such stock purchase agreement or other business combination), or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of 50% of the aggregate ordinary voting power represented
by issued and outstanding Common Stock (each, a “Fundamental Transaction”), the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Exercise Shares then issuable upon exercise in full of this Warrant (the
“Alternate Consideration”). To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the
foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or

  
 8 

 
surviving entity to comply with the provisions of this Section 6 and ensuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction. 
 7. NO STOCKHOLDER RIGHTS. Other than as provided in
Section 3.3 or otherwise herein, the Holder, solely in such Holder’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose,
nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Holder’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the
issuance to the Holder of the Exercise Shares which such Holder is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. 

8. TRANSFER OF WARRANT. Subject to compliance with any applicable laws, this Warrant and all rights hereunder are
transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder. If this Warrant is to be transferred, the Holder shall surrender
this Warrant to the Company or its designated agent, whereupon the Company or its agent, as applicable, will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 2.3), registered as the
Holder may request, representing the right to purchase the number of Exercise Shares being transferred by the Holder and, if less then the total number of Exercise Shares then underlying this Warrant is being transferred, a new Warrant (in
accordance with Section 2.3) to the Holder representing the right to purchase the number of Exercise Shares not being transferred. 

9. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on
such terms as to reasonable bond and indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost,
stolen, mutilated or destroyed. 
 10. DISPUTE. In the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Exercise Shares, the Company shall promptly issue to the Holder the number of Exercise Shares that are not disputed and resolve such dispute in accordance with this Section 10. In the case of a dispute as to
the determination of the Exercise Price or the arithmetic calculation of the Exercise Shares, the Company shall provide notice to the Holder of the disputed determinations or arithmetic calculations within two Trading Days of receipt of the Notice
of Exercise giving rise to such dispute, as the case may be. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Exercise Shares within three Trading Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two Trading Days, 

  
 9 

 
submit (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder or (b) the disputed
arithmetic calculation of the Exercise Shares to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations and
notify the Company and the Holder of the results no later than ten Trading Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may be,
shall be binding upon all parties absent demonstrable error. 
 11. NOTICES, ETC. All notices required or permitted
hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then
on the next Trading Day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the Company at the address listed on the signature page hereto and to Holder at the address appearing on the books of the Company or at such other address as the
Company or Holder may designate by ten (10) days advance written notice to the other parties hereto. 

12. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and
conditions contained herein. 
 13. GOVERNING LAW; WAIVER OF JURY TRIAL. This Warrant shall be governed by, and construed
in accordance with, the laws of the State of New York. The Holder and the Company hereby submit to the non-exclusive jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated thereby. The Holder and the Company irrevocably and unconditionally waive any objection to the laying of venue of any suit or proceeding arising out of or relating to this Warrant
in Federal and state courts in the Borough of Manhattan in The City of New York and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such suit or proceeding in any such court has been brought in an
inconvenient forum. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 
 14. AMENDMENT OR
WAIVER. Any term of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Holder. The Company shall give prompt written
notice to the Holder of any amendment hereof or waiver hereunder that was effected without the Holder’s written consent. No waivers of any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such term, condition or provision. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK] 

  
 10 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
officer as of the date first indicated above. 
  

			
	STEMCELLS, INC.
		
	By:		  

			Name:
			Title:
		
			 7707 Gateway Blvd
 Newark, CA
94560

 NOTICE OF EXERCISE 

TO: STEMCELLS, INC.  
 (1) The undersigned
hereby elects to purchase Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. By
executing this notice, the undersigned Holder represents that it has complied with the Holder’s Exercise Limitations set forth in Section 2.4 of this Warrant. 

(2) Payment shall take the form of (check applicable box): 

 ̈ in lawful money of the United States; or 

 ̈ if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 2.2, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2.2. 

(3) 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 DWAC Account Number or
by physical delivery of a certificate to: 
  

                       
                                         
                                         
                
  

                       
                                         
                                         
                
  

                       
                                         
                                         
                
  

                       
                                         
                                         
                
 [SIGNATURE OF HOLDER] 

 

	
	Name of Investing Entity:
	
	  

  

	
	 Signature of Authorized Signatory of

Investing Entity:

	
	  

  

	
	Name of Authorized Signatory:
	
	  

  

	
	Title of Authorized Signatory:
	
	  

  

	
	Date:Consulting_Agreement_Tom_Sommer

CONSULTING AGREEMENT
This Consulting Agreement (this “Agreement”) is made as of January 29, 2015, by and between Central Valley Community Bank, a California banking corporation (the “Bank”), and Thomas Sommer, an individual (“Consultant”). 
1.Consulting Relationship.  During the term of this Agreement, Consultant will provide consulting services to the Bank, as described on Exhibit A hereto (the “Services”).      
2.    Fees.  As consideration for the Services to be provided by Consultant and other obligations, the Bank shall pay to Consultant the amounts specified in Exhibit B hereto at the times specified therein.
3.    Expenses.  Consultant shall not be authorized to incur on behalf of the Bank any expenses and will be responsible for all expenses incurred while performing the Services, except those set forth herein or in the exhibits hereto.  
4.    Term and Termination.  Consultant shall serve as a consultant to the Bank for a period commencing on May 1, 2015 and terminating on December 31, 2015.  Each party may terminate this Agreement at any time, without cause or penalty, by giving at least thirty (30) days advance written notice to the other party.  Any early termination of this Agreement, whether for a party’s breach or otherwise, shall be without prejudice to any claims or damages or other rights of one party against the other party. 
In the event of early termination, Consultant shall be paid for any fees earned prior to the termination.  If any fees have been prepaid by the Bank, Consultant shall refund to the Bank the amount of any such prepaid fees that exceeds the value of the Services actually rendered by Consultant prior to the termination date.  Upon termination, Consultant will deliver to the Bank, at a time and in a manner acceptable to the Bank, all Confidential Information (as defined below) and copies of all finished or unfinished Work Product (as defined below), whether in paper, electronic, or any other form.
5.    Independent Contractor.  Consultant’s relationship with the Bank will be that of an independent contractor and not that of an employee.  Nothing in this Agreement is intended to establish a partnership, joint venture, or agency relationship between the parties.
6.    Method of Provision of Services.  Consultant shall be solely responsible for determining the method, details and means of performing the Services.  
7.    Work Product.  Consultant shall use reasonable care in performing the Services and shall comply with all applicable laws, rules and regulations.  Consultant acknowledges and agrees that all work product or deliverables prepared for, arising from, related to, or incorporated in the Services including, without limitation, all ideas, concepts, inventions, expressions, information, material, works of authorship, plans, programs, programming code, systems, work notes, drafts, specifications, design documents, flow charts, software programs, reports, analyses, data, surveys, print copy, artwork, plates, photo negatives and positives, boards, preliminary outlines, sketches, letters, invoices, proposals, and databases (collectively, “Work Product”) shall be owned solely and exclusively by the Bank, including, without limitation, all corrections, modifications, and derivative works to such Work Product.  The Work Product shall be considered the Bank’s Confidential Information (as defined below).  All Work Product produced by Consultant in connection with this Agreement shall not infringe or violate any patent, copyright, trade secret, trademark, or other third party intellectual property right.  
8.    No Authority to Bind Bank.  Consultant acknowledges and agrees that Consultant has no authority to enter into contracts that bind the Bank or create obligations on the part of the Bank without the prior written authorization of the Bank.
9.    No Benefits.  Consultant acknowledges and agrees that Consultant shall not be eligible for any Bank employee benefits and, to the extent Consultant otherwise would be eligible for any Bank employee benefits but for the express terms of this Agreement, Consultant hereby expressly declines to participate in such Bank employee benefits.
10.    Tax Reporting.  Consultant shall be fully and solely responsible for the filing of any and all returns and reports and the withholding and/or payment of all applicable federal, state and local wage tax, or employment related taxes, including, but not limited to, income taxes, gross receipt taxes, taxes measured by gross income, Social Security taxes, and unemployment taxes for Consultant.  Consultant agrees to indemnify, defend and hold the Bank and all of its officers, directors, employees, shareholders and agents harmless from any liability for, or assessment of, any claims or penalties with respect to such withholding taxes, labor or employment requirements, including any liability for, or assessment of, withholding taxes imposed on the Bank by the relevant taxing authorities with respect to any compensation paid to Consultant. 
11.    Supervision of Consultant’s Services.  All of the services to be performed by Consultant, including but not limited to the Services, will be agreed upon, on a monthly basis, between Consultant and the Bank’s Chief Executive Officer and Chairman of the Board of Directors.  Consultant will be required to report to the Chief Executive Officer concerning the Services performed under this Agreement.  The nature and frequency of these reports will be left to the discretion of the Chief Executive Officer.
12.    Confidentiality.  At all times hereafter, Consultant will keep in confidence and trust all Confidential Information (as defined below) that Consultant learns of or receives during the term of this Agreement and that Consultant received or developed while serving as an officer, director or employee of the Bank, and will not use, reproduce, or disclose to others any Confidential Information without the Bank’s advance written consent, except (i) as may be directly necessary in the ordinary course of performance of the Services under this Agreement, or (ii) in accordance with a judicial or other governmental order, provided however, that, to the extent reasonably possible, Consultant shall give the Bank reasonable notice prior to making any such disclosure in sufficient time so the Bank may object to such disclosure if it so chooses, and provided further, that Consultant shall disclose only that portion of the Confidential Information that it is legally required to disclose.  “Confidential Information” shall mean any and all proprietary information of the Bank, including, without limitation, information on the Bank’s finances, customers, clients and employees, and information relating to any current, future, or proposed program, project, business practice, method of operation, strategy or marketing plan.  “Confidential Information” also includes proprietary or confidential information of any third party who may disclose such information to the Bank in the normal course of business.  “Confidential Information,” however, shall not include any information which Consultant can establish (x) was known to Consultant before disclosure to Consultant under this Agreement, or any previous agreement or arrangement, as a result of being made generally available in the public domain, or (y) becomes publicly known and made generally available in the public domain after disclosure to Consultant under this Agreement, or any previous agreement or arrangement, or is received by Consultant from a source other than the Bank, in both cases other than by a breach of an obligation of confidentiality.  Consultant further agrees that it shall not disclose the existence or terms of this Agreement to any third party without the prior written consent of the Bank.  Consultant’s failure to comply with the provisions of this Section shall constitute a material breach of this Agreement.  All Confidential Information shall be and remain the property of the Bank, and all Confidential Information, and all copies thereof, shall be promptly returned to the Bank upon written request or termination of this Agreement, or destroyed at the Bank’s option.  The Bank makes no representations or warranties as to the accuracy or completeness of the Confidential Information.  
13.    Consultant’s Representations and Warranties.
(a)    Intellectual Property.  Consultant represents and warrants that no Work Product prepared or produced by Consultant pursuant to this Agreement, nor the use of any such Work Product by the Bank, will infringe or constitute an infringement of any intellectual property right of any third party, that no third party shall have any proprietary rights in any Work Product, and that Consultant has the authority to deliver title free and clear of all liens or encumbrances to all such Work Product to the Bank.  Consultant also represents and warrants that unless otherwise specifically agreed upon in writing, no proprietary information of Consultant will be included in any Work Product and that to the extent Work Product includes any permitted third party proprietary information, including that of Consultant, delivery of the Services shall include a perpetual, non-exclusive, world-wide, royalty free license to use such proprietary information for the purposes for which it was provided. 
(b)    Consulting or Other Services for Competitors.  Consultant represents and warrants that Consultant does not presently perform or intend to perform, during the term of this Agreement, consulting or other services for, or engage in or intend to engage in an employment relationship with, companies whose businesses or proposed businesses in any way involve products or services which would be competitive with the Bank’s products or services, or those products or services proposed or in development by the Bank during the term of this Agreement.  If, however, Consultant decides to do so, Consultant agrees that, in advance of accepting such work, Consultant will promptly notify the Bank in writing, specifying the organization with which Consultant proposes to consult, provide services, or become employed by and to provide information sufficient to allow the Bank to determine if such work would conflict with the terms of this Agreement, the interests of the Bank or further services which the Bank might request of Consultant.  If the Bank determines that such work conflicts with the terms of this Agreement, the Bank reserves the right to terminate this Agreement immediately.  In no event shall any of the Services be performed for the Bank at the facilities of a third party or using the resources of a third party.
(c)    Conflicts with this Agreement.  Consultant represents and warrants that Consultant is not under any pre-existing obligation in conflict or in any way inconsistent with the provisions of this Agreement.  Consultant represents and warrants that Consultant’s performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by Consultant in confidence or in trust prior to commencement of this Agreement.  Consultant represents and warrants that Consultant has the right to disclose and/or use all ideas, processes, techniques and other information, if any, which Consultant has gained from third parties, and which Consultant discloses to the Bank or uses in the course of performance of this Agreement, without liability to such third parties.  Notwithstanding the foregoing, Consultant agrees that Consultant shall not bundle with or incorporate into any deliveries provided to the Bank herewith any third party products, ideas, processes, or other techniques, without the express, written prior approval of the Bank.  Consultant represents and warrants that Consultant has not granted and will not grant any rights or licenses to any intellectual property or technology that would conflict with Consultant’s obligations under this Agreement.  Consultant will not knowingly infringe upon any copyright, patent, trade secret or other property right of any former client, employer or third party in the performance of the Services.
14.    Use of Names and Logos.  Consultant agrees that it shall not use the Bank’s name or any logo or insignia of the Bank, or otherwise identify the Bank in any form of publicity or disclosure without the prior written permission of the Bank, which permission may be given or withheld in the Bank’s sole discretion.
15.    Miscellaneous.
(a)    Governing Law.  The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law.  All proceedings relating to the subject matter hereof shall be maintained exclusively in the courts situated in Fresno County, California, and Consultant hereby consents to personal jurisdiction and venue therein and hereby waives any right to object to personal jurisdiction or venue.
(b)    Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and supersedes all prior or contemporaneous discussions, understandings and agreements, whether oral or written, between them relating to the subject matter hereof. 
(c)    Amendments and Waivers.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement.  No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. 
(d)    Successors and Assigns.  Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Bank may assign any of its rights and obligations under this Agreement.  No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Bank. 
(e)    No Third Party Beneficiaries.  No provision of this Agreement is intended to confer any benefit upon any third party and no third party shall have the right to enforce any provision of this Agreement.
(f)    Notices.  Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or by overnight courier or sent by email, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page, as subsequently modified by written notice, or if no address is specified on the signature page, at the most recent address set forth in the Bank’s books and records. 
(g)    Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith.  In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms. 
(h)    Captions.  All paragraph captions are for reference only and shall not be considered in construing this Agreement.
(i)    Construction.  This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 
(j)    Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement. 
(k)    Survival of Representations.  All representations, warranties, covenants, and agreements of the parties contained in this Agreement, or in any instrument, certificate, opinion, or other writing provided for in it, shall survive termination of this Agreement.
(l)    Exhibits.  All exhibits to which reference is made are deemed incorporated in this Agreement whether or not actually attached.
(m)    Continuing Cooperation.  Each party to this Agreement shall be obligated hereunder to do such other and further acts, including without limitation, the execution of any documents or instruments, which are reasonable or may be necessary or convenient in carrying out the purposes and intent of this Agreement.
(n)    Time.  Time is of the essence of this Agreement and each and every provision hereof.
(o)    Cumulative Remedies.  All rights and remedies herein provided are cumulative and not exclusive of any rights or remedies otherwise provided by law.  Any single or partial exercise of any right or remedy shall not preclude the further exercise thereof or the exercise of any other right or remedy.
(signature page follows)
The parties have executed this Agreement as of the date first written above.

BANK:

CENTRAL VALLEY COMMUNITY BANK,
a California banking corporation

By:/s/Daniel J. Doyle    
      Daniel J. Doyle, Chief Executive Officer
Address: 

7100 N. Financial Drive, Suite 101
Fresno, California 93720 

CONSULTANT:

/s/Thomas Sommer     
Thomas Sommer
Address:
 
[____________]
[____________]

(Signature Page to Consulting Agreement)
EXHIBIT A
CONSULTING SERVICES

Consultant shall provide guidance to the Bank’s Chief Credit Officer and perform ongoing diligence and other services as requested by the Bank’s Chief Executive Officer and Chairman of the Board of Directors (the “Services”).  Consultant shall devote less than eighty (80) hours per month to the Services.  Consultant and the Bank’s Chief Executive Officer and Chairman of the Board of Directors shall agree upon each month’s Services and hours in advance of each month.  As requested by the Bank, Consultant shall provide brief written or oral reports to the Director’s Loan Committee and participate in meetings (either in person or by telephone).  Such Services and schedule may be modified upon agreement between the parties. The parties acknowledge and agree that Consultant may perform all Services from the location chosen by Consultant and shall not be required to travel to California or anywhere else to perform the Services unless reasonably agreed to by Consultant and the Bank.  The Bank will provide up to one round trip airfare between Seattle, Washington and Fresno, California per month as needed to facilitate Consultant’s provision of the Services to the Bank.  Without limiting the generality of the foregoing, Consultant shall take any and all actions requested by the Bank in furtherance of the foregoing Services.  Consultant shall be reimbursed for normal business expenditures incurred that are necessary or appropriate to complete his assignments, and mutually agreed upon per diem expenses when traveling and staying in Fresno.

EXHIBIT B
COMPENSATION
For Services rendered by Consultant under this Agreement, the Bank shall pay Consultant an hourly fee (“Hourly Fee”) equal to $100.  The Hourly Fee shall be payable pursuant to the Bank’s standard policies and procedures.  Unless otherwise agreed upon in writing by the Bank, the Bank’s maximum liability for all Services performed during the term of this Agreement shall not exceed $100,000.00. 

1391840.3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]