Document:

Exhibit 4.1
    

    

    

    

    

    
       

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      Warrant Agreement
    

    
      Dated as of October 1, 2013

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      WARRANT AGREEMENT, (this “Agreement”) dated as of October 1, 2013, by
      BioTime, Inc., a California corporation (the "Company") and American
      Stock Transfer & Trust Company, LLC (“Warrant Agent”) for the benefit of
      each registered holder of a Warrant described herein (a “Holder”).
    

    
      Section 1.   Issuance of Warrants.
    

    
      1.1  Number of Warrants; Expiration Date.  The Company
      is issuing common share purchase warrants, as hereinafter described (the
      “Warrants”), to purchase up to an aggregate of 8,000,000 of its common
      shares, no par value (the “Common Stock”), to Asterias Biotherapeutics,
      Inc. (formerly BioTime Acquisition Corporation), a Delaware corporation
      (“Asterias”) as the original Holder pursuant to that certain Asset
      Contribution Agreement, dated January 4, 2013, among the Company,
      Asterias, and Geron Corporation (“Geron”).  Subject to the terms of this
      Agreement, a Holder of any of such Warrant (including any Warrants into
      which a Warrant may be divided) shall have the right, which may be
      exercised, in whole or in part, at any time on or after the date hereof
      and prior to 5:00 p.m., New York Time on October 1 , 2018 (the
      “Expiration Date”), to purchase from the Company, at the Warrant Price
      (as defined herein) then in effect, the number of fully paid and
      nonassessable common shares, no par value, of the Company (“Warrant
      Shares”) determined as provided in this Agreement and specified in such
      Warrant.  The Warrants may not be exercised or transferred after the
      Expiration Date.  So long as the Warrants are listed for trading on any
      national securities exchange, the Company will not extend the Expiration
      Date without first giving such securities exchange notice of such
      extension within the time required by such exchange, but in no event
      less than twenty (20) days prior notice.
    

    
      1.2  Form of Warrant.  The text of the Warrants and of
      the Purchase Form shall be substantially as set forth in Exhibit A
      attached hereto.  The price per Warrant Share and the number of Warrant
      Shares issuable upon exercise of each Warrant are subject to adjustment
      upon the occurrence of certain events, all as hereinafter provided.  The
      Warrants shall be executed on behalf of the Company by its Chief
      Executive Officer, President, or an Executive or Senior Vice President,
      under its corporate seal reproduced thereon attested by its Chief
      Financial Officer, or Secretary or any Assistant Secretary.  The
      signature of any such officers on the Warrants may be manual or
      facsimile, provided, however, that the signature of any such officers
      must be manual at any time during which there is no Warrant Agent.
    

    
      1.3  Signatures; Date of Warrants.  Warrants bearing
      the manual or facsimile signatures of individuals who were at any time
      the proper officers of the Company shall bind the Company,
      notwithstanding that such individuals or any one of them shall have
      ceased to hold such offices prior to the delivery of such Warrants or
      did not hold such offices on the date of this Agreement.  So long as the
      Warrant Agent (or a successor designated by the Company) is serving in
      such capacity, Warrants shall be dated as of the date of
      countersignature by the Warrant Agent upon division, exchange,
      substitution or transfer.  If there is no Warrant Agent, Warrants shall
      be dated as of the date of execution thereof by the Company either upon
      initial issuance or upon division, exchange, substitution or transfer.
    

    
      1.4  Countersignature of Warrants.  So long as the
      Warrant Agent or a successor shall be serving as Warrant Agent, the
      Warrants shall be countersigned by the Warrant Agent (or any successor
      serving in such capacity) and shall not be valid for any purpose unless
      so countersigned.  Warrants may be countersigned, however, by the
      Warrant Agent (or by its successor) and may be delivered by the Warrant
      Agent, notwithstanding that the persons whose manual or facsimile
      signatures appear thereon as proper officers of the Company shall have
      ceased to be such officers at the time of such countersignature,
      issuance or delivery.  The Warrant Agent shall, upon written
      instructions of the President, Chief Executive Officer, an Executive or
      Senior Vice President, or the Chief Financial Officer of the Company,
      countersign, issue and deliver the Warrants and shall countersign and
      deliver Warrants as otherwise provided in this Agreement.
    

    
      
        

        

      

      
        
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      Section 2.   Exercise of Warrants; Payment.
    

    
      2.1  Exercise of Warrants.  A Warrant may be exercised
      upon surrender of the certificate or certificates evidencing the Warrant
      to be exercised, together with the form of election to purchase on the
      reverse thereof (the “Purchase Form”) duly completed and signed, which
      signature shall be guaranteed by a financial institution that is a
      participant in a recognized signature guarantee program if the Warrant
      Shares are to be issued in the name of a person or entity other than the
      Holder, to the principal office of the Warrant Agent, and upon payment
      of the Warrant Price (as defined and determined in accordance with the
      provisions of Section 3 and Section 6) to the Warrant Agent for the
      account of the Company, for the number of Warrant Shares in respect of
      which such Warrants are then exercised.  Payment of the aggregate
      Warrant Price shall be made by bank wire transfer to the account of the
      Company or bank cashier's check or by personal check, provided, however,
      that in the case of payment by personal check no Warrant Shares shall be
      issued until funds are received.  So long as the Common Stock is
      publicly traded, a Holder of a Warrant may not exercise the Warrant on
      any day on which the closing price of the Common Stock for such day is
      lower than the Warrant Price.  The closing price of the Common Stock for
      each trading day shall be the last reported sales price regular way or,
      in case no such reported sale takes place on such day, the average of
      the closing bid and asked prices regular way for such day, in each case
      on the principal national securities exchange on which the shares of
      Common Stock are listed or admitted to trading or, if not so listed or
      admitted to trading, the last sale price of the Common Stock on the OTC
      Bulletin Board, or any comparable system.  The closing price of the
      Common Stock for any day that is not a trading day shall be the closing
      price of the Common Stock for the most recent trading day.
    

    
      2.2  Issuance of Warrant Shares.  Subject to Section 4
      and Section 5, upon the surrender of the Warrant and payment of the
      Warrant Price as aforesaid, the Warrant Agent shall promptly, and in any
      event within three (3) business days, cause to be issued and delivered
      to or upon the written order of the Holder and in such name or names as
      the Holder may designate, a certificate or certificates for the number
      of full Warrant Shares so purchased upon the exercise of such Warrant,
      which Warrant Shares shall be fully paid and nonassessable, together
      with cash, as provided in Section 8, in respect of any fractional
      Warrant Shares otherwise issuable upon such exercise.  Such Warrant
      Share certificate or certificates shall be deemed to have been issued
      and any person so designated to be named therein shall be deemed to have
      become a holder of record of such Warrant Shares as of the date of the
      surrender of such Warrants and payment of the Warrant Price, as
      aforesaid.  If the Company’s transfer agent is participating in The
      Depository Trust Company (“DTC”) Fast Automated Securities Transfer
      Program, upon the request of the Holder, the Warrant Agent shall, in
      lieu of delivering a certificate or certificates for Warrant Shares
      issuable upon exercise of a Warrant, credit the aggregate number of
      Warrant Shares to which the Holder is entitled pursuant to such exercise
      to the Holder’s or its designee’s balance account with DTC through its
      Deposit/Withdrawal At Custodian system (a “DWAC Transfer”).  The rights
      of purchase represented by any Warrant shall be exercisable, at the
      election of the Holder thereof, either in full or from time to time in
      part.  In the event that a certificate evidencing a Warrant is exercised
      in respect of less than all of the Warrant Shares purchasable on such
      exercise at any time prior to the date of expiration of such Warrant, a
      new certificate evidencing the unexercised portion of such Warrant will
      be issued, and the Warrant Agent shall countersign and deliver the
      required new Warrant certificate or certificates pursuant to the
      provisions of this Section 2.2 and Section 1.4.  The Company, whenever
      required by the Warrant Agent, will supply the Warrant Agent with
      Warrant certificates duly executed on behalf of the Company for such
      purpose.
    

    
      
        

        

      

      
        
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      2.3  Payment of Funds to Company.  Checks representing
      payment of the Warrant Price shall be delivered to the Company by the
      Warrant Agent.  If so requested by the Company, the Warrant Agent shall
      delay issuance of Warrant Shares until the Company confirms collection
      of any check or checks received by the Company.  Funds received by the
      Warrant Agent by wire transfer shall be paid to the Company by wire
      transfer to such account of the Company as the Company may from time to
      time designate in writing.
    

    
      2.4  Records; Accounts.  The Warrant Agent shall
      maintain a record of the date, amount of each payment of the Warrant
      Price received upon the exercise of Warrants, and the name and address
      of the Holder by whom or on whose behalf such payment was made.
    

    
      Section 3.   Warrant Price.  Subject to any
      adjustments required by Section 6, the price per share at which Warrant
      Shares shall be purchasable upon exercise of a Warrant (as to any
      particular Warrant, the “Warrant Price”) shall be Five Dollars ($5.00)
      per share.
    

    
      Section 4.   Payment of Taxes.  The Company will pay
      all documentary stamp taxes, if any, attributable to the initial
      issuance of Warrant Shares upon the exercise of Warrants; provided,
      however, that the Company shall not be required to pay any tax or taxes
      which may be payable in respect of any transfer involved in the issue or
      delivery of any Warrant or certificates for Warrant Shares in a name
      other than that of the registered Holder of such Warrants or Warrant
      Shares.
    

    
      Section 5.   Transferability of Warrants and Warrant
      Shares; Restrictions on Exercise and Transfer.
    

    
      5.1  Registration.  Each Warrant shall be numbered and
      shall be registered on the books of the Company (the “Warrant Register”)
      as issued.  The Company and the Warrant Agent shall be entitled to treat
      the Holder of any Warrant as the owner in fact thereof for all purposes
      and shall not be bound to recognize any equitable or other claim or
      interest in such Warrant on the part of any other person, and shall not
      be liable for any registration of transfer of any Warrant which is
      registered or to be registered in the name of a fiduciary or the nominee
      of a fiduciary upon the instruction of such fiduciary, unless made with
      the actual knowledge that a fiduciary or nominee is committing a breach
      of trust in requesting such registration of transfer, or with such
      knowledge of such facts that its participation therein amounts to bad
      faith.  Each Warrant shall initially be registered in the name of the
      person or entity to whom it is originally issued.
    

    
      5.2  Transfer.  Subject to Section 5.3, the Warrants
      shall be transferable only on the Warrant Register upon delivery of the
      Warrant certificate duly endorsed by the Holder or by his duly
      authorized attorney or representative (accompanied by proper evidence of
      succession, assignment or authority to transfer, as applicable), which
      endorsement shall be guaranteed by a financial institution that is a
      participant in a recognized signature guarantee program.  In all cases
      of transfer by an attorney, the original power of attorney, duly
      approved, or a copy thereof, duly certified, shall be deposited and
      remain with the Warrant Agent.  In case of transfer by executors,
      administrators, guardians or other legal representatives, duly
      authenticated evidence of their authority shall be produced, and may be
      required to be deposited and remain with the Warrant Agent in its
      discretion.  Upon any registration of transfer, the Warrant Agent shall
      countersign and deliver a new Warrant or Warrants to the persons
      entitled thereto.
    

    
      
        

        

      

      
        
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      5.3  Restrictions on Exercise and Transfer of Warrants and
      Warrant Shares.  The Warrants may not be exercised, and the Warrants
      and any Warrant Shares issued upon the exercise of the Warrants may not
      be sold, pledged, hypothecated, transferred or assigned, in whole or in
      part, unless a registration statement under the Securities Act of 1933,
      as amended (the “Securities Act”), and under any applicable state
      securities laws, is effective therefor or, an exemption from such
      registration is then available.
    

    
             (a)  At any time during which a registration statement under the
      Securities Act and under any applicable state securities laws is not in
      effect, as a condition precedent to the registration of transfer and
      issuance of any certificates representing Warrants upon transfer, or
      issuance of any Warrant Shares upon exercise of the Warrant, the
      Company, the Warrant Agent, and any transfer agent of any Warrant Shares
      to be issued upon exercise of the Warrant, shall be entitled to obtain
      (i) an opinion of counsel, reasonably acceptable to the Warrant Agent,
      the Company, and to the transfer agent, stating that such exercise,
      sale, pledge, hypothecation, transfer or assignment will not violate the
      Securities Act, the rules and regulations of the United States
      Securities and Exchange Commission promulgated thereunder or any
      applicable state securities laws, and (ii) a letter or other instrument
      from the Holder containing such covenants, representations or warranties
      by such Holder as reasonably deemed necessary by the Company, the
      Warrant Agent, and the transfer agent to effect compliance by the
      Company with the requirements of the Securities Act and any other
      applicable federal and/or state securities laws.
    

    
            (b)  Any exercise, sale, pledge, hypothecation, transfer, or
      assignment of a Warrant or Warrant Shares in violation of the foregoing
      restrictions shall be deemed null and void and of no binding effect.
    

    
            (c)  The Company, the Warrant Agent, and the transfer agent and
      registrar of the Warrant Shares will refuse to register the transfer of
      any Warrant and Warrant Shares not made pursuant to registration under
      the Securities Act and applicable state securities laws, or pursuant to
      an available exemption from registration under the Securities Act and
      applicable state securities laws.
    

    
      Section 6.   Adjustment of Warrant Price and Number of
      Warrant Shares.  The number and kind of securities purchasable upon
      the exercise of each Warrant and the Warrant Price shall be subject to
      adjustment from time to time upon the happening of certain events, as
      hereinafter defined.
    

    
      6.1  Adjustments.  The number of Warrant Shares
      purchasable upon the exercise of each Warrant and the Warrant Price
      shall be subject to adjustment as follows:
    

    
             (a)  If the Company shall: (i) pay a dividend in shares of Common
      Stock or make a distribution in shares of Common Stock; (ii) subdivide
      its outstanding shares of Common Stock; (iii) combine its outstanding
      shares of Common Stock into a smaller number of shares of Common Stock;
      or (iv) reclassify or change (including a change to the right to
      receive, or a change into, as the case may be (other than with respect
      to a merger or consolidation pursuant to the exercise of appraisal
      rights), shares of stock, other securities, property, cash or any
      combination thereof) its Common Stock (including any such
      reclassification or change in connection with a consolidation or merger
      in which the Company is the surviving corporation), the number of
      Warrant Shares purchasable upon exercise of each Warrant immediately
      prior thereto shall be adjusted so that the Holder of each Warrant shall
      be entitled to receive the kind and number of Warrant Shares or other
      securities of the Company or other property which the Holder would have
      owned or have been entitled to receive after the happening of any of the
      events described above, had such Warrant been exercised immediately
      prior to the happening of such event or any record date with respect
      thereto.  An adjustment made pursuant to this paragraph (a) shall become
      effective immediately after the effective date of such event retroactive
      to the record date, if any, for such event.
    

    
      
        

        

      

      
        
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             (b)  If the Company shall issue rights, options or warrants to
      all holders of its outstanding Common Stock, without any charge to such
      holders, entitling them to subscribe for or purchase shares of Common
      Stock at a price per share which is lower at the record date mentioned
      below than the then current market price per share of Common Stock (as
      defined in paragraph (d) below), the number of Warrant Shares thereafter
      purchasable upon the exercise of each Warrant shall be determined by
      multiplying the number of Warrant Shares theretofore purchasable upon
      exercise of each Warrant by a fraction, of which the numerator shall be
      the number of shares of Common Stock outstanding on the date of issuance
      of such rights, options or warrants plus the number of additional shares
      of Common Stock offered for subscription or purchase in connection with
      such rights, options or warrants, and of which the denominator shall be
      the number of shares of Common Stock outstanding on the date of issuance
      of such rights, options or warrants plus the number of shares which the
      aggregate exercise price for the total number of shares of Common Stock
      issuable upon exercise of such rights, options or warrants would
      purchase at the current market price per share of Common Stock (as
      determined pursuant to paragraph (d) below) at such record date.  Such
      adjustment shall be made whenever such rights, options or warrants are
      issued, and shall become effective immediately after the record date for
      the determination of shareholders entitled to receive such rights,
      options or warrants.
    

    
             (c)  If the Company shall distribute to all holders of its shares
      of Common Stock (including any distribution made in connection with a
      merger in which the Company is the surviving corporation) evidences of
      its indebtedness or assets (excluding cash, dividends or distributions
      payable out of consolidated earnings or earned surplus and dividends or
      distributions referred to in paragraph (a) above) or rights, options or
      warrants, or convertible or exchangeable securities containing the right
      to subscribe for or purchase shares of Common Stock (excluding those
      referred to in paragraph (b) above), then in each case the number of
      Warrant Shares thereafter purchasable upon the exercise of each Warrant
      shall be determined by multiplying the number of Warrant Shares
      theretofore purchasable upon the exercise of each Warrant by a fraction,
      of which the numerator shall be the then current market price per share
      of Common Stock (as determined pursuant to paragraph (d) below) on the
      date of such distribution, and of which the denominator shall be the
      then current market price per share of Common Stock, less the then fair
      value (as reasonably determined by the Board of Directors of the
      Company, whose determination shall be conclusive) of the portion of the
      assets or evidences of indebtedness so distributed or of such
      subscription rights, options or warrants, or of such convertible or
      exchangeable securities applicable to one share of Common Stock.  Such
      adjustment shall be made whenever any such distribution is made, and
      shall become effective on the date of distribution retroactive to the
      record date for the determination of shareholders entitled to receive
      such distribution.
    

    
      
        

        

      

      
        
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             (d)  For the purpose of any computation under paragraphs (b) and
      (c) of this Section 6.1, the current market price per share of Common
      Stock at any date shall be the volume weighted average of the daily
      closing prices for the 20 consecutive trading days ending one trading
      day prior to the date of such computation.  The closing price for each
      day shall be the last reported sales price regular way or, in case no
      such reported sale takes place on such day, the average of the closing
      bid and asked prices regular way for such day, in each case on the
      principal national securities exchange on which the shares of Common
      Stock are listed or admitted to trading or, if not so listed or admitted
      to trading, the last sale price of the Common Stock on the OTC Bulletin
      Board, or any comparable system.  If the current market price of the
      Common Stock cannot be so determined, the Board of Directors of the
      Company shall reasonably determine the current market price on the basis
      of such quotations as are available.
    

    
             (e)  No adjustment in the number of Warrant Shares purchasable
      hereunder shall be required unless such adjustment would require an
      increase or decrease of at least one percent (1%) in the number of
      Warrant Shares purchasable upon the exercise of each Warrant; provided,
      however, that any adjustments which by reason of this paragraph (e) are
      not required to be made shall be carried forward and taken into account
      in the determination of any subsequent adjustment.  All calculations
      shall be made with respect to the number of Warrant Shares purchasable
      hereunder, to the nearest tenth of a share and with respect to the
      Warrant Price payable hereunder, to the nearest whole cent.
    

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

    
             (g)  No adjustment in the number of Warrant Shares purchasable
      upon the exercise of each Warrant need be made under paragraphs (b) and
      (c) if the Company issues or distributes to each Holder of Warrants the
      rights options, warrants, or convertible or exchangeable securities, or
      evidences of indebtedness or assets referred to in those paragraphs
      which each Holder of Warrants would have been entitled to receive had
      the Warrants been exercised prior to the happening of such event or the
      record date with respect thereto.  No adjustment need be made for a
      change in the par value of the Warrant Shares.
    

    
             (h)  For the purpose of this Section 6, the term “Common Stock”
      shall mean (i) the class of stock designated as the common shares or
      common stock of the Company at the date of this Agreement, or (ii) any
      other class of stock resulting from successive changes or
      reclassifications of such shares consisting solely of changes in par
      value, or from par value to no par value, or from no par value to par
      value.  In the event that at any time, as a result of an adjustment made
      pursuant to paragraph (a) above, the Holders shall become entitled to
      purchase any securities of the Company other than shares of Common
      Stock, thereafter the number of such other shares so purchasable upon
      exercise of each Warrant, and the Warrant Price of such shares, shall be
      subject to adjustment from time to time in a manner and on terms as
      nearly equivalent as practicable to the provisions with respect to the
      Warrant Shares contained in paragraphs (a) through (i), inclusive, and
      the provisions of Section 6.3 and Section 8, with respect to the Warrant
      Shares, shall apply on like terms to any such other securities.
    

    
      
        

        

      

      
        
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             (i)  Upon the expiration of any rights, options, warrants or
      conversion or exchange privileges that result in an adjustment pursuant
      to this Section 6.1, if any thereof shall not have been exercised, the
      Warrant Price and the number of Warrant Shares purchasable upon the
      exercise of each Warrant shall, upon such expiration, be readjusted and
      shall thereafter be such as it would have been had it been originally
      adjusted (or had the original adjustment not been required, as the case
      may be) as if (i) the only shares of Common Stock so issued were the
      shares of Common Stock, if any, actually issued or sold upon the
      exercise of such rights, options, warrants or conversion or exchange
      rights and (ii) such shares of Common Stock, if any, were issued or sold
      for the consideration actually received by the Company upon such
      exercise plus the aggregate consideration, if any, actually received by
      the Company for the issuance, sale or grant of all such rights, options,
      warrants or conversion or exchange rights whether or not exercised.
    

    
      6.2  Notice of Adjustment.  Whenever the number of
      Warrant Shares purchasable upon the exercise of each Warrant or the
      Warrant Price of such Warrant Shares is adjusted, as herein provided,
      the Company or the Warrant Agent, shall promptly mail by first class,
      postage prepaid, to each Holder notice of such adjustment or
      adjustments.  Such notice shall set forth the number of Warrant Shares
      purchasable upon the exercise of each Warrant and the Warrant Price of
      such Warrant Shares after such adjustment, setting forth a brief
      statement of the facts requiring such adjustment and setting forth the
      computation by which such adjustment was made.
    

    
      6.3  No Adjustment for Dividends.  Except as provided
      in Section 6.1, no adjustment in respect of any dividends shall be made
      during the term of a Warrant or upon the exercise of a Warrant.
    

    
      6.4  Preservation of Purchase Rights Upon Merger,
      Consolidation, etc.  In case of any consolidation of the Company
      with or merger of the Company into another corporation or in case of any
      sale, transfer or lease to another corporation of all or substantially
      all the assets of the Company, the Company or such successor or
      purchasing corporation, as the case may be, shall execute an agreement
      that each Holder shall have the right thereafter, upon such Holder's
      election, either (i) upon payment of the Warrant Price in effect
      immediately prior to such action, to purchase upon exercise of each
      Warrant the kind and amount of shares and other securities and property
      (including cash) which the Holder would have owned or have been entitled
      to receive after the happening of such consolidation, merger, sale,
      transfer or lease had such Warrant been exercised immediately prior to
      such action (such shares and other securities and property (including
      cash) being referred to as the “Sale Consideration”) or (ii) to receive,
      in cancellation of such Warrant (and in lieu of paying the Warrant price
      and exercising such Warrant), the Sale Consideration less a portion
      thereof having a fair market value (as reasonably determined by the
      Company) equal to the Warrant Price (it being understood that, if the
      Sale Consideration consists of more than one type of shares, other
      securities or property, the amount of each type of shares, other
      securities or property to be received shall be reduced proportionately);
      provided, however, that no adjustment in respect of dividends, interest
      or other income on or from such shares or other securities and property
      shall be made during the term of a Warrant or upon the exercise of a
      Warrant.  The Company shall mail by first class mail, postage prepaid,
      to each Holder, notice of the execution of any such agreement.  Such
      agreement shall provide for adjustments, which shall be as nearly
      equivalent as may be practicable to the adjustments provided for in this
      Section 6.  The provisions of this paragraph shall similarly apply to
      successive consolidations, mergers, sales, transfers or leases.  The
      Warrant Agent shall be under no duty or responsibility to determine the
      correctness of any provisions contained in any such agreement relating
      to the kind or amount of shares of stock or other securities or property
      receivable upon exercise of Warrants or with respect to the method
      employed and provided therein for any adjustments and shall be entitled
      to rely upon the provisions contained in any such agreement.
    

    
      
        

        

      

      
        
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      6.5  Statement on Warrants.  Irrespective of any
      adjustments in the Warrant Price or the number or kind of shares
      purchasable upon the exercise of the Warrants, Warrants issued before or
      after such adjustment may continue to express the same price and number
      and kind of shares as are stated in the Warrants initially issuable
      pursuant to this Agreement.
    

    
      Section 7.   Reservation of Warrant Shares; Purchase
      and Cancellation of Warrants.
    

    
      7.1  Reservation of Warrant Shares.  There have been
      reserved, and the Company shall at all times keep reserved, out of its
      authorized Common Stock, the number of shares of Common Stock sufficient
      to provide for the exercise of the rights of purchase represented by the
      outstanding Warrants and any additional Warrants issuable
      hereunder.  The Company will keep a copy of this Agreement on file with
      the transfer agent for the Common Stock and with every subsequent
      transfer agent for any shares of the Company's capital stock issuable
      upon the exercise of the rights of purchase represented by the
      Warrants.  The warrant agent, if appointed, will be irrevocably
      authorized to requisition from time to time from such transfer agent the
      stock certificates required to honor outstanding Warrants upon exercise
      thereof in accordance with the terms of this Agreement.  The Company
      will supply such transfer agent with duly executed stock certificates
      for such purposes and will provide or otherwise make available any cash
      which may be payable as provided in Section 8.  The Company will furnish
      such transfer agent a copy of all notices of adjustments and
      certificates related thereto, transmitted to each Holder pursuant to
      Section 6.2.
    

    
      7.2  Purchase of Warrants by the Company.  The Company
      shall have the right, except as limited by law, other agreements or
      herein, with the consent of the Holder, to purchase or otherwise acquire
      Warrants at such times, in such manner and for such consideration as it
      may deem appropriate.
    

    
      7.3  Cancellation of Warrants.  In the event the
      Company shall purchase or otherwise acquire a Warrant, such Warrant
      shall thereupon be cancelled and retired.  Subject to Section 2.2, the
      Warrant Agent (or the Company if there is no Warrant Agent) shall cancel
      any Warrant exchanged, substituted, transferred or exercised in whole or
      in part.
    

    
      Section 8.   Fractional Interests.  The Company shall
      not be required to issue fractional Warrants upon the transfer or any
      Warrant, or fractional Warrant Shares upon the exercise of Warrants.  If
      more than one Warrant shall be presented for exercise in full at the
      same time by the same Holder, the number of full Warrant Shares which
      shall be issuable upon the exercise thereof shall be computed on the
      basis of the aggregate number of Warrant Shares purchasable on exercise
      of the Warrants so presented.  If any fraction of a Warrant Share would,
      except for the provisions of this Section 8, be issuable on the exercise
      of any Warrant (or specified portion thereof), the Company shall pay an
      amount in cash equal to the volume weighted average of the daily closing
      sale prices (determined in accordance with paragraph 6.1(d)) per share
      of Common Stock for the 20 consecutive trading days ending one trading
      day prior to the date the Warrant is presented for exercise, multiplied
      by such fraction.
    

    
      Section 9.  Exchange of Warrant Certificates.  Each
      Warrant certificate may be exchanged, at the option of the Holder
      thereof, for another Warrant certificate or Warrant certificates in
      different denominations (but not for any fractional Warrant or any
      denomination that would, but for Section 8, result in the issuance of a
      fractional share upon exercise) entitling the Holder or Holders thereof
      to purchase a like aggregate number of Warrant Shares as the certificate
      or certificates surrendered then entitle the Holder to purchase.  Any
      Holder desiring to exchange a Warrant certificate or certificates shall
      make such request in writing delivered to the Warrant Agent at its
      principal office and shall surrender, properly endorsed, the certificate
      or certificates to be so exchanged.  Thereupon, the Warrant Agent shall
      execute and deliver to the person entitled thereto a new Warrant
      certificate or certificates, as the case may be, as so requested, in
      such name or names as such Holder shall designate.
    

    
      
        

        

      

      
        
          8
        

        
          

        

      

      
        

        

      

    

    
      Section 10.  Mutilated or Missing Warrants.  In case
      any of the certificates evidencing the Warrants shall be mutilated,
      lost, stolen or destroyed, the Company shall issue and deliver and the
      Warrant Agent shall countersign and deliver in exchange and substitution
      for and upon cancellation of the mutilated Warrant certificate, or in
      lieu of and substitution for the Warrant certificate lost, stolen or
      destroyed, a new Warrant certificate of like tenor, but only upon
      receipt of evidence reasonably satisfactory to the Company and the
      Warrant Agent of such loss, theft or destruction of such Warrant, and an
      indemnity or bond, if requested, also reasonably satisfactory to
      them.  An applicant for such a substitute Warrant certificate shall also
      comply with such other reasonable regulations and pay such other
      reasonable charges as the Company or the Warrant Agent may prescribe.
    

    
      Section 11.  No Rights as Shareholders; Notices to Holders.  Nothing
      contained in this Agreement nor in any of the Warrants shall be
      construed as conferring upon the Holder or such Holder’s transferee, in
      such Holder’s or such transferee’s capacity as a Warrant Holder, the
      right to vote or receive dividends, or consent or receive notice as
      shareholders in respect of any meeting of shareholders for the election
      of directors of the Company or any other matter, or any rights
      whatsoever as shareholders of the Company.  If, however, at any time
      prior to the expiration of the Warrants and prior to their exercise, any
      of the following events shall occur:
    

    
            (a)  the Company shall declare any dividend payable in any
      securities upon its shares of Common Stock or make any distribution
      (other than a regular cash dividend, as such dividend may be increased
      from time to time) to the holders of its shares of Common Stock; or
    

    
            (b)  the Company shall offer to the holders of its shares of
      Common Stock on a pro rata basis any cash, additional shares of Common
      Stock or other securities of the Company or any right to subscribe for
      or purchase any thereof; or
    

    
            (c)  a dissolution, liquidation or winding up of the Company
      (other than in connection with a consolidation, merger, sale, transfer
      or lease of all or substantially all of its property, assets, and
      business as an entirety) shall be proposed,
    

    
      then in any one or more of said events the Company shall (i) give notice
      in writing of such event as provided in Section 15 and (ii) if the
      Warrants have been registered pursuant to the Securities Act, cause
      notice of such event to be published once in The Wall Street Journal
      (national edition), such giving of notice and publication to be
      completed at least 10 days prior to the date fixed as a record date or
      the date of closing the transfer books for the determination of the
      shareholders entitled to such dividend, distribution, or subscription
      rights or for the determination of shareholders entitled to vote on such
      proposed dissolution, liquidation or winding up or the date of
      expiration of such offer.  Such notice shall specify such record date or
      the date of closing the transfer books or the date of expiration, as the
      case may be.  Failure to publish, mail or receive such notice or any
      defect therein or in the publication or mailing thereof shall not affect
      the validity of any action in connection with such dividend,
      distribution or subscription rights, or such proposed dissolution,
      liquidation or winding up, or such offer.
    

    
      
        

        

      

      
        
          9
        

        
          

        

      

      
        

        

      

    

    
      Section 12.  Appointment of Warrant Agent.  The Company
      may remove the Warrant Agent at any time and appoint a successor Warrant
      Agent.  In the event that the Warrant Agent shall resign or the Company
      shall elect to remove the Warrant Agent and replace it with a successor
      Warrant Agent, the Company may designate a successor Warrant Agent.  At
      such time as the Company appoints a successor Warrant Agent, the
      successor Warrant Agent shall agree in writing to be bound by this
      Warrant Agreement, subject to such amendments as the Company, Geron (to
      the extent the approval of such amendment by Geron is required under
      Section 22) and the Holders may approve.  In the event that a successor
      Warrant Agent is appointed or this Warrant Agreement is amended or
      modified in any material respect, the Company shall promptly notify the
      Holders and Geron of such amendment or appointment and the place
      designated for transfer, exchange and exercise of the Warrants.  If no
      successor Warrant Agent is appointed, all powers and duties of the
      Warrant Agent shall be performed by the Company, and any documents or
      funds otherwise deliverable to the Warrant Agent shall instead by
      delivered to the Company at its principal office.
    

    
      Section 13.   Liability of Warrant Agent.
    

    
      13.1  Limitation on Liability.  The Warrant Agent shall
      not, by issuing and delivering warrant certificates evidencing Warrants,
      or receiving or holding funds for the benefit of the Company, or by any
      other act under this Agreement, be deemed to make any representations as
      to the validity or value or authorization of the Warrants represented
      thereby or the Common Stock issued upon the exercise of Warrants, or
      whether the Common Stock issued upon the exercise of Warrants is fully
      paid and nonassessable.  The Warrant Agent shall not be: (i) liable for
      any statement of fact made or contained in this Agreement or in any
      prospectus or in any documents prepared by the Company in connection
      with the offer of Warrants or the offer of Common Stock through the
      exercise of Warrants; (ii) liable for any action taken, suffered, or
      omitted by it in reliance upon any Warrant certificate or other document
      or instrument believed by it in good faith to be genuine and to have
      been signed or presented by the proper party or parties; (iii)
      responsible for any failure on the part of the Company to comply with
      any of its covenants and obligations contained in this Agreement; or
      (iv) liable for any act or omission in connection with the performance
      of its duties, obligations, covenants and agreements under this
      Agreement, except for the Warrant Agent's own gross negligence, willful
      breach or misconduct.
    

    
      13.2  Consultation With Counsel.  The Warrant Agent may
      consult with legal counsel (who may be legal counsel for the Company) at
      the Company’s expense, and the opinion of such counsel shall be full and
      complete authorization and protection to the Warrant Agent as to any
      action taken or omitted by it in good faith and in accordance with such
      opinion.  The Warrant Agent may execute any of the powers, and may
      perform the duties required of it, under this Agreement by or through
      attorneys, agents, receivers, or employees, and shall be entitled to
      advice of counsel concerning all matters of agency and its duty under
      this Agreement.
    

    
      
        

        

      

      
        
          10
        

        
          

        

      

      
        

        

      

    

    
      13.3  Reliance Upon Statements of Company Officers.  Whenever
      in the performance of its duties under this Agreement, the Warrant Agent
      shall deem it necessary or desirable that any fact or matter be proven
      or established by the Company prior to taking or suffering any action
      under this Agreement, such fact or matter (unless other evidence in
      respect of  such fact or matter is otherwise specifically prescribed by
      this Agreement) may be deemed to be conclusively proved and established
      by a statement signed by the Chief Executive Officer, the President, any
      Vice President, the Chief Financial Officer, or the Secretary of the
      Company and delivered to the Warrant Agent, and such statement shall be
      warrant to the Warrant Agent for any action taken or suffered in good
      faith by the Warrant Agent under the provisions of this Agreement in
      reliance upon such statement, provided, that in its discretion, the
      Warrant Agent may, in lieu of such statement, accept other evidence of
      such fact or matter, or may require such further or additional evidence
      as may seem reasonable to the Warrant Agent.
    

    
      Section 14.   Indemnification.  The Company agrees
      to indemnify and hold harmless the Warrant Agent from and against any
      and all losses, expenses, and liabilities, including judgments, costs
      and reasonable attorneys fees, arising out of any act or omission of the
      Warrant Agent in the execution or performance of its duties,
      obligations, covenants and agreements under this Agreement, except for
      the Warrant Agent's own gross negligence, willful breach or misconduct.
    

    
      14.1  Compensation for Services.  The Company agrees to
      pay the Warrant Agent a fee of for all services rendered by the Warrant
      Agent under this Agreement in accordance with the Warrant Agent’s fee
      schedule, and to reimburse the Warrant Agent for all reasonable
      out-of-pocket expenses incurred in performing its duties under this
      Agreement.
    

    
      Section 15.   Notices; Principal Office.  Any
      notice pursuant to this Agreement by the Company or by any Holder to the
      Warrant Agent, or by the Warrant Agent or by any Holder to the Company,
      shall be in writing and shall be delivered in person, or mailed first
      class, postage prepaid, or sent by air delivery service (a) to the
      Company, at its office, Attention: Chief Financial Officer, or (b) to
      the Warrant Agent, at its offices as designated at the time the Warrant
      Agent is appointed.  The address of the principal office of the Company
      is 1301 Harbor Bay Parkway, Suite 100, Alameda, California 94502.  Any
      notice given pursuant to this Agreement by the Company or the Warrant
      Agent to a Holder shall be in writing and shall be mailed first class,
      postage prepaid, or otherwise delivered, to such Holder at the Holder’s
      address on the books of the Company or the Warrant Agent, as the case
      may be.  Each party hereto and any Holder may from time to time change
      the address to which notices to it are to be delivered or mailed
      hereunder by notice to the other party.
    

    
      Section 16.   Successors.  Except as expressly
      provided herein to the contrary, all the covenants and provisions of
      this Agreement by or for the benefit of the Company, the Warrant Agent,
      and the Holders shall bind and inure to the benefit of their respective
      successors and permitted assigns hereunder.
    

    
      Section 17.   Legends.  The Warrants shall bear an
      appropriate legend, conspicuously disclosing the restrictions on
      exercise, and the Warrants and Warrant Shares shall bear an appropriate
      legend, conspicuously disclosing the restrictions on transfer under
      Section 5.3 if the same are not registered for sale under the Securities
      Act or are transferred in a transaction exempt from registration under
      the Securities Act entitling the transferee to receive securities that
      are not deemed to be “restricted securities” as such term is defined in
      Rule 144 under the Securities Act.  The Company agrees that upon the
      sale of the Warrants and Warrant Shares pursuant to a registration
      statement or an exemption from registration entitling the transferee to
      receive securities that are not deemed to be “restricted securities,” or
      at such time as registration under the Securities Act shall no longer be
      required, upon the presentation of the certificates containing such a
      legend to the transfer agent or Warrant Agent it will remove such
      legend; provided, that unless the request for removal of the legend is
      in connection with a sale registered under the Securities Act, the
      Holder shall have provided an opinion of counsel, reasonably acceptable
      to the Company and the transfer agent or Warrant Agent, as applicable,
      to the effect that such legend may be removed in compliance with the
      Securities Act.
    

    
      
        

        

      

      
        
          11
        

        
          

        

      

      
        

        

      

    

    
      Section 18.    Applicable Law.  This
      Agreement and each Warrant issued hereunder shall be governed by and
      construed in accordance with the laws of the State of California,
      without giving effect to principles of conflict of laws.
    

    
      Section 19.    Benefits of this Agreement.  This
      Agreement shall be for the sole and exclusive benefit of the Company,
      the Warrant Agent and the Holders of the Warrants.  Nothing in this
      Agreement shall be construed to give to any person or corporation other
      than the Company, the Warrant Agent and the Holders any legal or
      equitable right, remedy or claim under this Agreement.
    

    
      Section 20.    Counterparts.  This Agreement
      may be executed in any number of counterparts (including by separate
      counterpart signature pages) and each of such counterparts shall for all
      purposes be deemed to be an original, and all such counterparts shall
      together constitute but one and the same instrument.
    

    
      Section 21.    Captions.  The captions of the
      Sections and subsections of this Agreement have been inserted for
      convenience only and shall have no substantive effect.
    

    
      Section 22.    Amendments.  Subject to
      Section 12, this Agreement, each Warrant and any provision hereof or
      thereof may be amended, supplemented or modified only by an instrument
      in writing (which may be executed in one or more substantially
      concurrent counterparts) signed by the Company and the Warrant Agent and
      with the affirmative vote or written consent of Holders of a majority of
      the Warrants then outstanding; provided, however, that such vote or
      consent of the Holders shall not be required for any amendment,
      supplement or modification that reduces the Warrant Price or extends the
      Expiration Date; provided, further, however, that the written consent of
      each Holder affected thereby shall be required for any amendment,
      supplement or modification pursuant to which:  (a) the Warrant Price
      would be increased or the number of Warrant Shares issuable upon
      exercise of any Warrant would be decreased (in each case, other than
      pursuant to adjustments in accordance with Section 6.1); (b) the time
      period during which the Warrants are exercisable would be shortened; or
      (c) the provisions set forth in Section 6.1 would be changed in such a
      way as to adversely affect such Holder.  In determining whether the
      Holders of the required number of outstanding Warrants have approved any
      amendment, supplement or modification to this Agreement, Warrants owned
      by the Company or its controlled Affiliates, if any, shall be
      disregarded and deemed not to be outstanding.  Notwithstanding anything
      herein to the contrary, the prior written consent of Geron shall be
      required for any amendment, supplement or modification of this
      Agreement, any Warrant, or any provision hereof or thereof that: (i)
      extends or would have the effect of extending the Expiration Date; or
      (ii) adversely affects the rights of Geron under this Agreement.
    

    
       [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
    

    
      
        

        

      

      
        
          12
        

        
          

        

      

      
        

        

      

    

    
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
      duly executed, all as of the day and year first above written.
    

    	
          
            BIOTIME, INC.
          

        
	
           
        
	
           
        
	
          By:
        	
          
            /s/ Michael D. West
          

        
	

        	
          Michael D. West,
        
	

        	
          Chief Executive Officer
        
	
           
        
	
          Attest:
        
	
           
        
	
           
        
	
          By:
        	
          
            /s/ Judith Segall
          

        
	

        	
          Judith Segall, Secretary
        

    

    
      

    

    	
          
            AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
          

        
	
           
        
	
           
        
	
          By:
        	
          
            /s/ Michael A. Nespoli
          

        
	
          Title:
        	
          
            Executive Director, Relationship Management
          

        

    

    

    

    
      
        

        

      

      
        
          13
        

        
          

        

      

      
        

        

      

    

    

    

    
      EXHIBIT A
    

    
      VOID AFTER 5:00 P.M. NEW YORK TIME, OCTOBER 1, 2018
    

    

    

    	
           
        	
          
            Certificate No.___
          

        	
          Warrant to Purchase
        
	
           
        
	

        	

        	
          
            [Insert number of Shares]
          

        
	
           
        
	

        	

        	
          Shares of Common Stock
        

    

    
      BIOTIME, INC.
COMMON STOCK PURCHASE WARRANTS
    

    
      This certifies that, for value received, _____________ or registered
      assigns (the “Holder”), is entitled to purchase from BioTime, Inc. a
      California corporation (the “Company”), at a purchase price per share of
      Five Dollars ($5.00) (the “Warrant Price”), the number of its Common
      Shares, no par value per share (the “Common Stock”), shown above.  The
      number of shares purchasable upon exercise of the Common Stock Purchase
      Warrants (the “Warrants”) and the Warrant Price are subject to
      adjustment from time to time as set forth in the Warrant Agreement
      referred to below.  Outstanding Warrants not exercised prior to 5:00
      p.m., New York time, on October 1, 2018 shall thereafter be void.
    

    
      Subject to restriction specified in the Warrant Agreement, Warrants may
      be exercised in whole or in part by presentation of this Warrant
      Certificate with the Purchase Form on the reverse side hereof duly
      executed, and simultaneous payment of the Warrant Price (or as otherwise
      set forth in Section 6.4 of the Warrant Agreement) at the principal
      office of the Warrant Agent (or the Company, at the principal office of
      the Company, if there is no Warrant Agent).  Payment of the Warrant
      Price shall be made by bank wire transfer to the account of the Company
      or by bank cashier's check or personal check as provided in Section 2.1
      of the Warrant Agreement.  As provided in the Warrant Agreement, the
      Warrant Price and the number or kind of shares which may be purchased
      upon the exercise of the Warrant evidenced by this Warrant Certificate
      are, upon the happening of certain events, subject to modification and
      adjustment.
    

    
      This Warrant Certificate is issued under and in accordance with a
      Warrant Agreement dated as of October 1, 2013, and is subject to the
      terms and provisions contained in the Warrant Agreement, to all of which
      the Holder of this Warrant Certificate by acceptance of this Warrant
      Certificate consents.  A copy of the Warrant Agreement may be obtained
      by the Holder hereof upon written request to the Company.  
    

    
      Upon any partial exercise of the Warrant evidenced by this Warrant
      Certificate, there shall be issued to the Holder hereof a new Warrant
      Certificate in respect of the shares of Common Stock as to which the
      Warrant evidenced by this Warrant Certificate shall not have been
      exercised.  This Warrant Certificate may be exchanged at the office of
      the Warrant Agent (or at the principal office of the Company if there is
      no Warrant Agent) by surrender of this Warrant Certificate properly
      endorsed either separately or in combination with one or more other
      Warrant Certificates for one or more new Warrant Certificates evidencing
      the right of the Holder thereof to purchase the aggregate number of
      shares as were purchasable on exercise of the Warrants evidenced by the
      Warrant Certificate or Certificates exchanged. No fractional shares will
      be issued upon the exercise of any Warrant, but the Company will pay the
      cash value thereof determined as provided in the Warrant
      Agreement.  This Warrant Certificate is transferable at the office of
      the Warrant Agent (or at the principal officer of the Company is there
      is no Warrant Agent) in the manner and subject to the limitations set
      forth in the Warrant Agreement.
    

    
      
        

        

      

      
        
          A-1
        

        
          

        

      

      
        

        

      

    

    

    

    
      The Holder hereof may be treated by the Company, the Warrant Agent and
      all other persons dealing with this Warrant Certificate as the absolute
      owner hereof for any purpose and as the person entitled to exercise the
      rights represented hereby, or to the transfer hereof on the books of the
      Company, any notice to the contrary notwithstanding, and until such
      transfer on such books, the Warrant Agent and the Company may treat the
      Holder hereof as the owner for all purposes.
    

    
      Neither the Warrant nor this Warrant Certificate (prior to the exercise
      of such Warrant) entitles any Holder to any of the rights of a
      shareholder of the Company in such capacity as a Warrant Holder.
    

    
      This Warrant Certificate shall not be valid or obligatory for any
      purpose until it shall have been countersigned by the Warrant Agent (or
      the Company if there is no Warrant Agent).
    

    	
           
        	
          DATED:
        	
           
        	

        	

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	

        	
          BIOTIME, INC.
        	

        
	

        	
          (Seal)
        	

        	
          By:
        	
           
        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	

        	
          Title:
        	
           
        	

        
	

        	
          Attest:
        	
           
        	

        	

        	

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          [COUNTERSIGNED:
        	

        	

        	

        	

        
	

        	
          WARRANT AGENT
        	

        	

        	

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          By:
        	
           
        	

        	

        	

        	

        
	

        	
          Authorized Signature]
        	

        	

        	

        	

        

    

    
      
        

        

      

      
        
          A-2
        

        
          

        

      

      
        

        

      

    

    

    

    
      PURCHASE FORM
    

    
      (To be executed upon exercise of Warrant)
    

    
      To BioTime, Inc.:
    

    
      The undersigned hereby irrevocably elects to exercise the right of
      purchase represented by the enclosed Warrant Certificate for, and to
      purchase thereunder, _______ shares of Common Stock, as provided for
      therein, and tenders herewith payment of the Warrant Price in full in
      the form of a bank wire transfer to the account of the Company or by
      bank cashier's check or personal check in the amount of $______________.
    

    
      Please issue a certificate or certificates for such shares of Common
      Stock in the name of, and pay any cash for any fractional share to:
    

    
      ____________________________________
                          (Please
      Print Name)
    

    
      ____________________________________
                          (Please
      Print Address)
    

    
      ____________________________________
                          (Social
      Security Number or
                          Other Taxpayer
      Identification Number)
    

    
      ____________________________________
                          (Signature)
    

    
      NOTE:    The above signature should correspond exactly with the name on
      the face of this Warrant   Certificate or with the name of the assignee
      appearing in the assignment form below.
    

    
      And, if said number of shares shall not be all the shares purchasable
      under the within Warrant Certificate, a new Warrant Certificate is to be
      issued in the name of said undersigned for the balance remaining of the
      share purchasable thereunder less any fraction of a share paid in cash.
    

    
      
        

        

      

      
        
          A-3
        

        
          

        

      

      
        

        

      

    

    

    

    
      ASSIGNMENT
    

    
      (To be executed only upon assignment of Warrant Certificate)
    

    
      For value received, _____________ hereby sells, assigns and transfers
      unto _______________ the within Warrant Certificate, together with all
      right, title and interest therein, and does hereby irrevocably
      constitute and appoint _________________ attorney, to transfer said
      Warrant Certificate on the books of the within-named Company, with full
      power of substitution in the premises.
    

    	
           
        	
          Dated:
        	
           
        	
           
        	
           
        
	

        	

        	
           
        	

        	
          (Signature)
        
	

        	

        	

        	

        	

        	
           
        
	

        	

        	

        	

        	
          NOTE:
        	
          The above signature should correspond exactly with the name on the
          face of this Warrant Certificate.
        

    

    
      

      A-4exh_102.htm

EXHIBIT 10.2

 

MOBETIZE CORP.

INSTRUCTIONS TO SUBSCRIBER:

1. COMPLETE the information on page 2 of this Subscription Agreement.

2. If resident in the United States, COMPLETE the Prospective Investor Suitability Questionnaire attached as Appendix 1 to this Subscription Agreement.

3. COURIER the originally executed copy of the entire Subscription Agreement, together with the Questionnaire, to the Company at:

MOBETIZE CORP.

c/o

Macdonald Tuskey, Corporate and Securities Lawyers

Suite 400 – 570 Granville Street

Vancouver, BC, Canada, V6C 3P1

If you have any questions please contact Stephen Fowler, at: 1 (206) 347-4515

 

 

 

 

 

SUBSCRIPTION AGREEMENT

 

TO:           MOBETIZE CORP. (the “Company”)

 

Subject and pursuant to the attached “Terms and Conditions” of this Subscription Agreement, including all schedules and appendices attached hereto, the Subscriber hereby irrevocably subscribes for, and on the Closing Date, will purchase from the Company, the following securities:

 

	 	
315,000 Shares

	 	  	 
	 	
The Subscriber owns, directly or indirectly, the following securities of the Company:

	 
	 	  	 
	 	  	 

 

The Subscriber directs the Company to issue, register and deliver the certificates representing the Shares as follows:

 

	
REGISTRATION INSTRUCTIONS

	  	
DELIVERY INSTRUCTIONS

	  	  	  
	
Name to appear on certificate

	  	
Name and account reference, if applicable

	  	  	  
	
Account reference if applicable

	  	
Contact name

	  	  	  
	
Address

	  	
Address

	  	  	  
	
Tax I.D./E.I.N./S.S.N.

	  	
Telephone Number

 

EXECUTED by the Subscriber this 16th day of September, 2013.

 

	
WITNESS:

	  	
EXECUTION BY SUBSCRIBER:

	  	  	
X

	
Signature of Witness

	  	
Signature of individual (if Subscriber is an individual)

	  	  	
X

	
Name of Witness

	  	
Authorized signatory (if Subscriber is not an individual)

	  	  	
Source Capital Group, Inc.

	
Address of Witness

	  	
Name of Subscriber (please print)

	  	  	  
	  	  	
Name of authorized signatory (please print)

	
ACCEPTED and EFFECTIVE this16th day of September, 2013.

	  	  
	
MOBETIZE CORP.

	  	
Address of Subscriber (residence)

	
per:

	  	  
	  	  	
Telephone Number

	
Authorized Signatory

	  	  
	  	  	
E-mail address

	  	  	  
	  	  	
Social Security/Insurance No.:

By signing this acceptance, the Subscriber agrees to be bound by the term and conditions of this Subscription Agreement.

 

 

- 2 -

 

NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

TERMS AND CONDITIONS

 

	
1. 

	
Subscription

 

1.1 The undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase the number of shares of the Company’s common stock (the “Shares”) as set out on page 2 of this Subscription Agreement in consideration of value received in connection with the Consulting Agreement dated September 16, 2013 between the Company and the Subscriber and of the mutual covenants contained herein (the “Subscription Proceeds”) (the sufficiency whereof is hereby acknowledged by the parties hereto) (such subscription and agreement to purchase being the “Subscription”), which Subscription Proceeds are tendered herewith, on the basis of the representations and warranties and subject to the terms and conditions set forth herein.

 

1.2 The Company hereby agrees to sell, on the basis of the representations and warranties and subject to the terms and conditions set forth herein, to the Subscriber the Shares.  Subject to the terms hereof, the Subscription Agreement will be effective upon its acceptance by the Company.

 

1.3 Unless otherwise provided, all dollar amounts referred to in this Subscription Agreement are in lawful money of the United States of America.

 

	
2. 

	
Payment

 

2.1 The Subscription Proceeds must accompany this Subscription and shall be paid to the Company by certified cheque, bank draft of money order.  If the funds are wired to the Company’s lawyers, pursuant to the wire instructions that are provided with this Subscription Agreement at Schedule A, those lawyers are authorized to immediately deliver the funds to the Company, or as directed by the Company or its representatives, without further authorization from the Subscriber.

 

2.2 The Subscriber acknowledges and agrees that this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be held by the Company’s lawyers on behalf of the Company.  In the event that this Subscription Agreement is not accepted by the Company for whatever reason within 60 days of the delivery of an executed Subscription Agreement by the Subscriber, this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement without interest or deduction.

 

2.3 Where the Subscription Proceeds are paid to the Company, the Company may treat the Subscription Proceeds as a non-interest bearing loan and may use the Subscription Proceeds prior to this Subscription Agreement being accepted by the Company.

 

	
3. 

	
Questionnaires and Undertaking and Direction

 

3.1 The Subscriber must complete, sign and return to the Company the following documents:

 

	
(a)  

	
One (1) executed copy of this Subscription Agreement; and

 

	
(b)  

	
the US Questionnaire in the form attached as Appendix 1 if the Subscriber is resident in the United States.

 

 

- 3 -

 

3.2 The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, stock exchanges and applicable law.

 

	
4. 

	
Closing

 

4.1 Closing of the purchase and sale of the Shares shall be deemed to be effective on such date as may be determined by the Company in its sole discretion (the “Closing Date”), which is anticipated to be following the change of name of the Company to “Mobetize” and the completion of certain share restructuring.  The Shares will be issued on a post-restructuring basis. The Subscriber acknowledges that Shares may be issued to other subscribers under this offering (the “Offering”) on the Closing Date.  The Company, may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Shares to such subscriber(s) against payment therefore at any time on or prior to the Closing Date.

 

	
5. 

	
Acknowledgements of Subscriber

 

5.1 The Subscriber acknowledges and agrees that:

 

	
(a)  

	
none of the Shares have been registered under the 1933 Act, or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation S”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;

 

	
(b)  

	
the Subscriber acknowledges that the Company has not undertaken, and will have no obligation, to register any of the Shares under the 1933 Act;

 

	
(c)  

	
the decision to execute this Subscription Agreement and purchase the Shares agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company.  If the Company has presented a business plan to the Subscriber, the Subscriber acknowledges that the business plan may not be achieved or be achievable;

 

	
(d)  

	
the Subscriber and the Subscriber’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from the Company in connection with the sale of the Shares hereunder, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about the Company;

 

	
(e)  

	
the decision to execute this Subscription Agreement and purchase the Shares agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based solely upon a review of publicly available information regarding the Company available on the website of the United States Securities and Exchange Commission (the “SEC”) available at www.sec.gov (the “Company Information”);

 

	
(f)  

	
the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by Subscribers during reasonable business hours at its principal place of business and that all documents, records and books in connection with the sale of the Shares hereunder have been made available for inspection by the Subscriber, the Subscriber’s attorney and/or advisor(s);

 

	
(g)  

	
by execution of this Subscription Agreement the Subscriber has waived the need for the Company to communicate its acceptance of the purchase of the Shares pursuant to this Subscription Agreement;

 

	
(h)  

	
all information which the Subscriber has provided to the Company in the Questionnaire is correct and complete as of the date the Questionnaire is signed, and if there should be any change in such information prior to the Subscription being accepted by the Company, the Subscriber will immediately provide the Company with such information;

 

 

- 4 -

 

	
(i)  

	
the Company is entitled to rely on the representations and warranties and the statements and answers of the Subscriber contained in this Subscription Agreement and in the Questionnaire, and the Subscriber will hold harmless the Company from any loss or damage it may suffer as a result of the Subscriber’s failure to correctly complete this Subscription Agreement or the Questionnaire;

 

	
(j)  

	
it will indemnify and hold harmless the Company and, where applicable, its respective directors, officers, employees, agents, advisors and shareholders from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained herein or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

 

	
(k)  

	
the issuance and sale of the Shares to the Subscriber will not be completed if it would be unlawful or if, in the discretion of the Company acting reasonably, it is not in the best interests of the Company;

 

	
(l)  

	
it has been advised to consult its own legal, tax and other advisors with respect to the merits and risks of an investment in the Shares and with respect to applicable resale restrictions and it is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions;

 

	
(m)  

	
none of the Shares are listed on any stock exchange and no representation has been made to the Subscriber that any of the Shares will become listed on any stock exchange or automated dealer quotation system;

 

	
(n)  

	
it is acquiring the Shares as principal for its own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Shares;

 

	
(o)  

	
the Subscriber is acquiring the Shares pursuant to an exemption from the registration and prospectus requirements of applicable securities legislation in all jurisdictions relevant to this Subscription, and, as a consequence, the Subscriber will not be entitled to use most of the civil remedies available under applicable securities legislation and the Subscriber will not receive information that would otherwise be required to be provided to the Subscriber pursuant to applicable securities legislation;

 

	
(p)  

	
the Subscriber has been advised that the business of the Company is in a start-up phase and acknowledges that there is no assurance that the Company will raise sufficient funds to adequately capitalize the business or that the business will be profitable in the future;

 

	
(q)  

	
no documents in connection with the sale of the Shares hereunder have been reviewed by the Securities and Exchange Commission or any state securities administrators;

 

	
(r)  

	
there is no government or other insurance covering any of the Shares; and

 

	
(s)  

	
this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company.

 

	
6. 

	
Representations, Warranties and Covenants of the Subscriber

 

6.1 The Subscriber hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall survive the Closing) that:

 

	
(a)  

	
the Subscriber is resident in the jurisdiction set forth on page 2 underneath the Subscriber’s name and signature;

 

 

- 5 -

 

	
(b)  

	
the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;

 

	
(c)  

	
the Subscriber (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Shares for an indefinite period of time;

 

	
(d)  

	
the Subscriber has made an independent examination and investigation of an investment in the Shares and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will not be responsible in anyway whatsoever for the Subscriber’s decision to invest in the Shares and the Company;

 

	
(e)  

	
all information contained in the Questionnaire is complete and accurate and may be relied upon by the Company and the Subscriber will notify the Company immediately of any material change in any such information occurring prior to the closing of the purchase of the Shares;

 

	
(f)  

	
the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;

 

	
(g)  

	
the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;

 

	
(h)  

	
it understands and agrees that none of the Shares have been registered under the 1933 Act or any state securities laws, and, unless so registered, none may be offered or sold in the United States or, directly or indirectly, to U.S. Persons (as defined herein) except pursuant to an exemption from, or in a transaction not subject to, the Registration Requirements of the 1933 Act and in each case only in accordance with state securities laws;

 

	
(i)  

	
it is purchasing the Shares for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest is such Shares, and the Subscriber has not subdivided his interest in the Shares with any other person;

 

	
(j)  

	
it is able to fend for itself in the Subscription and has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

	
(k)  

	
if it is acquiring the Shares as a fiduciary or agent for one or more investor accounts, it has sole investment discretion with respect to each such account and it has full power to make the foregoing acknowledgments, representations and agreements on behalf of such account;

 

	
(l)  

	
it understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgments, representations and agreements contained in sections 5 and 6 hereof and agrees that if any of such acknowledgments, representations and agreements are no longer accurate or have been breached, it shall promptly notify the Company;

 

	
(m)  

	
the Subscriber:

 

	
(i)  

	
is knowledgeable of, or has been independently advised as to, the applicable securities laws of the securities regulators having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the acquisition of the Shares,

 

 

- 6 -

 

	
(ii)  

	
is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions,

 

	
(iii)  

	
acknowledges that the applicable securities laws of the authorities in the International Jurisdiction do not require the Company to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of any of the Securities, and

 

	
(iv)  

	
represents and warrants that the acquisition of the Shares by the Subscriber does not trigger:

 

	
A.  

	
any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or

 

	
B.  

	
any continuous disclosure reporting obligation of the Company in the International Jurisdiction, and

 

	
(n)  

	
the Subscriber will, if requested by the Company, deliver to the Company a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Company, acting reasonably

 

	
(o)  

	
the Subscriber is not acquiring the Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

 

	
(p)  

	
no person has made to the Subscriber any written or oral representations:

 

	
(i)  

	
that any person will resell or repurchase any of the Shares;

 

	
(ii)  

	
that any person will refund the purchase price of any of the Shares;

 

	
(iii)  

	
as to the future price or value of any of the Shares; or

 

	
(iv)  

	
that any of the Shares will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Shares of the Company on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the shares of the Company’s common stock on the OTC Bulletin Board.

 

6.2 In this Subscription Agreement, the term “U.S. Person” shall have the meaning ascribed thereto in Regulation S and for the purpose of the Subscription includes any person in the United States.

 

	
7. 

	
Acknowledgement and Waiver

 

7.1 The Subscriber has acknowledged that the decision to purchase the Shares was solely made on the basis of publicly available information.  The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for damages to which the Subscriber might be entitled in connection with the distribution of any of the Shares.

 

	
8. 

	
Representations and Warranties will be Relied Upon by the Company

 

8.1 The Subscriber acknowledges that the representations and warranties contained herein are made by it with the intention that they may be relied upon by the Company and its legal counsel in determining the Subscriber’s eligibility to purchase the Shares under applicable securities legislation, or (if applicable) the eligibility of others on 

 

 

- 7 -

 

whose behalf it is contracting hereunder to purchase the Shares under applicable securities legislation. The Subscriber further agrees that by accepting delivery of the certificates representing the Shares on the Closing Date, it will be representing and warranting that the representations and warranties contained herein are true and correct as at the Closing Date with the same force and effect as if they had been made by the Subscriber at the Closing Date and that they will survive the purchase by the Subscriber of the Shares and will continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Shares.

 

	
9. 

	
Resale Restrictions

 

9.1 The Subscriber acknowledges that any resale of the Shares will be subject to resale restrictions contained in the securities legislation applicable to each Subscriber or proposed transferee as set forth in paragraph 6 of this Subscription Agreement.  The Shares may not be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.

 

	
10. 

	
Legending and Registration of Subject Securities

 

10.1 The Subscriber hereby acknowledges that that upon the issuance thereof, and until such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing any of the Shares will bear a legend in substantially the following form:

 

If the Subscriber is a US person:

 

“NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.”

 

10.2 The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Subscription Agreement.

 

	
11.

	
Notices to Residents of the European Economic Area

 

11.1 In relation to each member state of the European Economic Area (the “EEA”) which has implemented Directive 2003/71/EC (the “Prospectus Directive”) (each, a “Relevant Member State”), Shares may only be offered or sold in the Relevant Member State under the following exemptions under the Prospectus Directive, if they have been implemented in that Relevant Member State:

 

	
(a)  

	
to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities;

 

	
(b)  

	
to any legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000; and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts;

 

	
(c)  

	
in any other circumstances falling within Article 3(2) of the Prospectus Directive;

provided that no such offer of Shares shall result in a requirement for the publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Directive.

 

 

- 8 -

 

	
12. 

	
Costs

 

12.1 The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Shares shall be borne by the Subscriber.

 

	
13. 

	
Governing Law

 

13.1 This Subscription Agreement is governed by the laws of the State of Nevada and the federal laws applicable therein.  The Subscriber, in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the jurisdiction of the State of Nevada.

 

	
14. 

	
Survival

 

14.1 This Subscription Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the Shares by the Subscriber pursuant hereto.

 

	
15. 

	
Assignment

 

15.1 This Subscription Agreement is not transferable or assignable.

 

	
16. 

	
Execution

 

16.1 The Company shall be entitled to rely on delivery by facsimile machine of an executed copy of this Subscription Agreement and acceptance by the Company of such facsimile copy shall be equally effective to create a valid and binding agreement between the Subscriber and the Company in accordance with the terms hereof.

 

	
17. 

	
Severability

 

17.1 The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription Agreement.

 

	
18. 

	
Entire Agreement

 

18.1 Except as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated or provided for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale of the Shares and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute or common law, by the Company or by anyone else.

 

	
19. 

	
Notices

 

19.1 All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.  Notices to the Subscriber shall be directed to the address on page 2 and notices to the Company shall be directed to it at the first page of this Subscription Agreement.

 

	
20. 

	
Counterparts

 

20.1 This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.

 

 

- 9 -

 

APPENDIX 1

 

PROSPECTIVE INVESTOR SUITABILITY QUESTIONNAIRE

 

This Questionnaire is for use by Source Capital Group, Inc. (the “Subscriber”) who is a US person (as that term is defined Regulation S of the United States Securities Act of 1933 (the “1933 Act”)) and has indicated an interest in purchasing Shares of MOBETIZE CORP. (the “Company”).  The purpose of this Questionnaire is to assure the Company that the Subscriber will meet the standards imposed by the 1933 Act and the appropriate exemptions of applicable state securities laws.  The Company will rely on the information contained in this Questionnaire for the purposes of such determination.  The Shares will not be registered under the 1933 Act in reliance upon the exemption from registration afforded by Section 3(b) and/or Section 4(6) of the 1933 Act.  This Questionnaire is not an offer of Shares or any other securities of the Company in any state other than those specifically authorized by the Company.

 

All information contained in this Questionnaire will be treated as confidential.  However, by signing and returning this Questionnaire, the Subscriber agrees that, if necessary, this Questionnaire may be presented to such parties as the Company deems appropriate to establish the availability, under the 1933 Act or applicable state securities law, of exemption from registration in connection with the sale of the Shares hereunder.

 

The Subscriber covenants, represents and warrants to the Company that it satisfies one or more of the categories of “Accredited Investors”, as defined by Regulation D promulgated under the 1933 Act, as indicated below:  (Please initial in the space provide those categories, if any, of an “Accredited Investor” which the Subscriber satisfies)

 

	
________

	
  Category 1

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

 

	

________

	
  Category 2

	
A natural person whose individual net worth, or joint net worth with that person’s spouse, on the date of purchase exceeds US $1,000,000, excluding the value of such person’s primary residence;

 

	

________

	
  Category 3

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

 

	

________

	
  Category 4

	
A “bank” as defined under Section (3)(a)(2) of the 1933 Act or savings and loan association or other institution as defined in Section 3(a)(5)(A) of the 1933 Act acting in its individual or fiduciary capacity; a broker dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934 (United States); an insurance company as defined in Section 2(13) of the 1933 Act; an investment company registered under the Investment Company Act of 1940 (United States) or a business development company as defined in Section 2(a)(48) of such Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958 (United States); a plan with total assets in excess of $5,000,000 established and maintained by a state, a political subdivision thereof, or an agency or instrumentality of a state or a political subdivision thereof, for the benefit of its employees; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (United States) whose investment decisions are made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000, or, if a self-

 

 

- 10 -

 

	

 

	
 

	
directed plan, whose investment decisions are made solely by persons that are accredited investors;

 

	

________

	
  Category 5

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

 

	

________

	
  Category 6

	
A director or executive officer of the Company;

 

	

________

	
  Category 7

	
A trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the 1933 Act;

 

	

________

	
  Category 8

	
An entity in which all of the equity owners satisfy the requirements of one or more of the foregoing categories;

 

Note that the Subscriber claiming to satisfy one of the above categories of Accredited Investor may be required to supply the Company with a balance sheet, prior years’ federal income tax returns or other appropriate documentation to verify and substantiate the Subscriber’s status as an Accredited Investor.

 

If the Subscriber is an entity which initialled Category 8 in reliance upon the Accredited Investor categories above, state the name, address, total personal income from all sources for the previous calendar year, and the net worth (exclusive of home, home furnishings and personal automobiles) for each equity owner of the said entity:

 

	 
	 
	 

 

                                                                                                   

 

The Subscriber hereby certifies that the information contained in this Questionnaire is complete and accurate and the Subscriber will notify the Company promptly of any change in any such information.  If this Questionnaire is being completed on behalf of a corporation, partnership, trust or estate, the person executing on behalf of the Subscriber represents that it has the authority to execute and deliver this Questionnaire on behalf of such entity.

 

IN WITNESS WHEREOF, the undersigned has executed this Questionnaire as of the 16th day of September, 2013.

 

	 	

If a Corporation, Partnership or Other Entity:

	 	

If an Individual:

	 	 	 	 
	 	 	 	 
	 	Source Capital Group, Inc.	 	 
	 	Print of Type Name of Entity	 	Signature
	 	 	 	 
	 	 	 	 
	 	

Signature of Authorized Signatory

	 	

Print or Type Name

	 	 	 	 
	 	 	 	 
	 	

Type of Entity and Tax I.D. No.

	 	

Social Security/Tax I.D. No.

 

 

 

- 11 -

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