Document:

ex4-2warrant.htm

    Exhibit
4.2

     

    
       

      CYTORI
THERAPEUTICS, INC.

       

      WARRANT
TO PURCHASE COMMON STOCK

       

      
        	 
      	 
      	 
      
	
                Warrant
      No. CSW-09-[●]

              	
                  

              	
                Original
      Issue Date: March [●], 2009

              
	 
      	 
      	 
      

      

       

      Cytori
Therapeutics, Inc., a Delaware corporation (the “Company”),
hereby certifies that, for value received, [●] or its permitted registered
assigns (the “Holder”),
is entitled to purchase from the Company up to a total of [●] ([●])shares1 of common
stock, $0.001 par value per share (the “Common
Stock”), of the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant
Shares”) at an exercise price equal to $2.59 per share (as adjusted from
time to time as provided herein, the “Exercise
Price”), at any time and from time to time after the date that is six
months from the date hereof (the “Original
Exercisability Date”) and through and including 5:30 p.m., New York City
time on September [●], 2014 (the “Expiration
Date”), and subject to the following terms and conditions:

       

      This
Warrant is being issued pursuant to that certain Subscription Agreement, dated
March 9, 2009, by and between the Company and the purchaser identified therein
(the “Purchase
Agreement”).  The original issuance of this Warrant by the
Company pursuant to the Purchase Agreement has been registered pursuant to a
Registration Statement on Form S-3 (File No. 333-157023) (the “Registration
Statement”).

       

      1.  Definitions.
In addition to the terms defined elsewhere in this Warrant, capitalized terms
that are not otherwise defined herein have the meanings given to such terms in
the Purchase Agreement.

       

      2.  List of Warrant
Holders.  The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder (which shall include the
initial Holder or, as the case may be, any registered assignee to which this
Warrant is permissibly assigned hereunder from time to time).  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

       

      3.  List of Transfers;
Restrictions on Transfer. Subject to applicable laws and Holder’s
compliance with any restriction on transfer set forth in the Purchase Agreement,
the Company shall register the transfer of all or any portion of this Warrant in
the Warrant Register, upon surrender of this Warrant, with
the Form of Assignment attached as Attachment 2 hereto
duly completed and signed, to the Company at its address specified
herein.  Upon any such registration or transfer, a new warrant to
purchase Common Stock in substantially the form of this Warrant (any such new
warrant, a “New
Warrant”) evidencing the portion of this Warrant so transferred shall be
issued to the transferee and a New Warrant evidencing the remaining portion of
this Warrant not so transferred, if any, shall be issued to the transferring
Holder. The 

      
         

         

          
            

          

        

        1
Number of warrant shares to equal 140% of the
number of shares of common stock purchased by the
investor.

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      acceptance
of the New Warrant by the transferee thereof shall be deemed the acceptance by
such transferee of
all of the rights and obligations in respect of the New Warrant that the Holder
has in respect of this Warrant.  Any purported transfer of all or any
portion of this Warrant in violation of the provisions of this Warrant shall be
null and void.

       

      4.  Exercise and Duration of
Warrant.

       

      (a) All or
any part of this Warrant shall be exercisable by the registered Holder in any
manner permitted by Section 10 of this Warrant at any time and from time to
time on or after the Original Exercisability Date and through and including 5:30
p.m., New York City time, on the Expiration Date.  At 5:31 p.m., New
York City time, on the Expiration Date, the portion of this Warrant not
exercised prior thereto shall be and become void and of no value and this
Warrant shall be terminated and no longer outstanding.

       

      (b) The
Holder may exercise this Warrant by delivering to the Company (i) an exercise
notice, in the form attached as Attachment 1 hereto
(the “Exercise
Notice”), completed and duly signed, and (ii) (A) payment of an amount
equal to the applicable Exercise Price multiplied by the number of Warrant
Shares as to which this Warrant is being exercised (the “Aggregate
Exercise Price”) or (B) provided the conditions for cashless exercise set
forth in Section 10 hereof are satisfied, by indicating in the Exercise Notice
delivered to the Company that this Warrant is being exercised pursuant to a
Cashless Exercise (as defined in Section 10 hereof).  The date such
items specified in clauses (i) and (ii) of this subsection are delivered to the
Company (as determined in accordance with the notice provisions hereof) is an
“Exercise
Date.”  The Holder shall not be required to deliver the
original Warrant in order to effect an exercise hereunder, but if it is not so
delivered then such exercise shall constitute an agreement by the Holder to
deliver the original Warrant to the Company as soon as practicable
thereafter.  Execution and delivery of the Exercise Notice shall have
the same effect as cancellation of the original Warrant and issuance of a New
Warrant evidencing the right to purchase the remaining number of Warrant
Shares.

       

      5.  Delivery of Warrant
Shares.

       

      (a) Upon
exercise of this Warrant, the Company shall promptly (but in no event later than
three Trading Days (as defined in Section 10 hereof) after the Exercise Date)
issue or cause to be issued and cause to be delivered to or upon the written
order of the Holder and in such name or names as the Holder may designate, (i) a
certificate for the Warrant Shares issuable upon such exercise, free of
restrictive legends or (ii) an electronic delivery of the Warrant Shares
issuable upon such exercise to an account of the Holder or its designee (as
specified in the Exercise Notice) at the Depository Trust Company (the “DTC”) or
another established clearing corporation performing similar
functions.  The Holder, or any person or entity permissibly so
designated by the Holder to receive Warrant Shares, shall be deemed to have
become the holder of record of such Warrant Shares as of the Exercise
Date.  The Company shall, upon the written request of the Holder, use
its best efforts to deliver, or cause to be delivered, Warrant Shares hereunder
electronically through the DTC or another established clearing corporation
performing similar functions, if available; provided that the Company may, but
will not be required to, change its transfer agent if its current transfer agent
cannot deliver Warrant Shares electronically through such a clearing
corporation.  If as of the time of exercise 

       

      
        
          
          

        

        
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      the
Warrant Shares constitute restricted or control securities, the Holder, by
exercising, agrees not to resell them except in compliance with all applicable
securities laws.

       

      (b) If by the
close of the third Trading Day after delivery of an Exercise Notice and the
payment of the Aggregate Exercise Price in any manner permitted by Section 10 of
this Warrant, the Company fails to deliver to the Holder the required number of
Warrant Shares in the manner required pursuant to Section 5(a), and if after
such third Trading Day and prior to the receipt of such Warrant Shares, the
Holder purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares
which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall, within three Trading Days after the Holder’s request and
in the Holder’s sole discretion, either (i) pay in cash to the Holder an amount
equal to the Holder’s total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased (the “Buy-In
Price”), at which point the Company’s obligation to issue and deliver
such Warrant Shares) shall terminate or (ii) promptly honor its obligation to
issue and deliver to the Holder such Warrant Shares and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product
of (A) such number of Warrant Shares, times (B) the Closing Sale Price (as
defined in Section 10 hereof) of a share of Common Stock (as reported by
Bloomberg Financial Markets) on the Exercise Date.

       

      (c) To the
extent permitted by law, the Company’s obligations to issue and deliver Warrant
Shares in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any
waiver or consent with respect to any provision hereof, the recovery of any
judgment against any person or entity or any action to enforce the same, or any
setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder or any other person or entity of any obligation to
the Company or any violation or alleged violation of law by the Holder or any
other person or entity, and irrespective of any other circumstance that might
otherwise limit such obligation of the Company to the Holder in connection with
the issuance of Warrant Shares. Nothing herein shall limit the Holder’s right to
pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
Warrant Shares upon exercise of the Warrant as required pursuant to the terms
hereof.

       

      6.  Charges, Taxes and
Expenses. Issuance and delivery of certificates for shares of Common
Stock upon exercise of this Warrant shall be made without charge to the Holder
for any issue or transfer tax, transfer agent fee or other incidental tax or
expense in respect of the issuance of such certificates, all of which taxes and
expenses shall be paid by the Company; provided, however, that the
Company shall not be required to pay any tax that may be payable in respect of
any transfer involved in the registration of any certificates for Warrant Shares
or the Warrants in a name other than that of the Holder. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or
transferring this Warrant or receiving Warrant Shares upon exercise
hereof.

       

      7.  Replacement of
Warrant.  If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon 

       

      
        
          
          

        

        
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      receipt
of evidence reasonably satisfactory to the Company of such loss, theft or
destruction and, in each such case, a customary and reasonable indemnity and
surety bond, if requested by the Company.  Applicants for a New
Warrant under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable third-party costs as
the Company may prescribe. If a New Warrant is requested as a result of a
mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant
to the Company as a condition precedent to the Company’s obligation to issue the
New Warrant.

       

      8.  Reservation of Warrant
Shares. The Company covenants that it will at all times reserve and keep
available out of the aggregate of its authorized but unissued and otherwise
unreserved Common Stock, solely for the purpose of enabling it to issue Warrant
Shares upon exercise of this Warrant as herein provided, the number of Warrant
Shares that are then issuable and deliverable upon the exercise of this entire
Warrant, free from preemptive rights or any other contingent purchase rights of
persons other than the Holder (taking into account the adjustments and
restrictions of Section 9). The Company covenants that all Warrant Shares so
issuable and deliverable shall, upon issuance and the payment of the applicable
Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

       

      9.  Certain Adjustments.
The Exercise Price and number of Warrant Shares issuable upon exercise of this
Warrant are subject to adjustment from time to time as set forth in this Section
9.

       

      (a) Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding,
(i) pays a stock dividend on its Common Stock or otherwise makes a distribution
on any class of capital stock that is payable in shares of Common Stock,
(ii) subdivides its outstanding shares of Common Stock into a larger number
of shares, or (iii) combines its outstanding shares of Common Stock into a
smaller number of shares, then in each such case the Exercise Price shall be
multiplied by a fraction, the numerator of which shall be the number of shares
of Common Stock outstanding immediately before such event and the denominator of
which shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph
shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such subdivision or
combination.

       

      (b) Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, distributes to all holders of Common Stock for no consideration
(i) evidences of its indebtedness, (ii) any security (other than a distribution
of Common Stock covered by the preceding paragraph), (iii) rights or warrants to
subscribe for or purchase any security, or (iv) any other asset including cash
(in each case, “Distributed
Property”), then, upon any exercise of this Warrant that occurs after the
record date fixed for determination of stockholders entitled to receive such
distribution, the Holder shall be entitled to receive, in addition to the
Warrant Shares otherwise issuable upon such exercise (if applicable), the
Distributed Property that such Holder would have been entitled to receive in
respect of such number of Warrant Shares had the Holder been the record holder
of such Warrant Shares immediately prior to such record date.

       

      
        
          
          

        

        
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      (c) Fundamental
Transactions. If, at any time while this Warrant is
outstanding  (i) the Company effects (A) any merger of the Company
with (but not into) another entity, in which the stockholders of the Company
immediately prior to such transaction own less than a majority of the
outstanding stock of the surviving entity, or (B) any merger or consolidation of
the Company into another entity, (ii) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer approved or authorized by the Company’s
Board of Directors is completed pursuant to which holders of at least a majority
of the outstanding Common Stock tender or exchange their shares for other
securities, cash or property, (iv) the Company effects any reclassification of
the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or
property (other than as a result of a subdivision or combination of shares of
Common Stock covered by Section 9(a) hereof), (v) the Company consummates a
stock purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person (as defined below) whereby such other Person
acquires more than 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making or party to,
such stock purchase agreement or other business combination), or (vi) any
"person" or "group" (as these terms are used for purposes of Sections 13(d) and
14(d) of the Exchange Act), become the "beneficial owner" (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
ordinary voting power represented by issued and outstanding Common Stock. (each,
a “Fundamental
Transaction”), then the Holder shall have the right thereafter to
receive, upon exercise of this Warrant, the same amount and kind of securities,
cash or property as it would have been entitled to receive upon the occurrence
of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then
issuable upon exercise in full of this Warrant without regard to any limitations
on exercise contained herein (the “Alternate
Consideration”), and the Holder shall no longer have the right to receive
Warrant Shares upon exercise of this Warrant.  The Company shall not
effect any such Fundamental Transaction unless prior to or simultaneously with
the consummation thereof, any successor to the Company, surviving entity or the
corporation purchasing or otherwise acquiring such assets or other appropriate
corporation or entity shall assume the obligation to deliver to the Holder, such
Alternate Consideration as, in accordance with the foregoing provisions, the
Holder may be entitled to receive, and the other obligations under this
Warrant.  The provisions of this paragraph (c) shall similarly apply
to subsequent transactions of a Fundamental Transaction
type.  Notwithstanding the foregoing, in the event of a Fundamental
Transaction other than one in which a Successor Entity that is a publicly traded
corporation whose stock is quoted or listed for trading on an Eligible Market
assumes this Warrant such that the Warrant shall be exercisable for the publicly
traded Common Stock of such Successor Entity, at the request of the Holder
delivered before the 20th day after such Fundamental Transaction, the Company
(or the successor entity) shall purchase this Warrant from the Holder by paying
to the Holder, within five Business Days (as defined below) after such request
(or, if later, on the effective date of the Fundamental Transaction), cash in an
amount equal to the Black Scholes Value (as defined below) of the remaining
unexercised portion of this Warrant on the date of such Fundamental
Transaction.  For purposes hereof, “Black Scholes
Value” means the value of this Warrant based on the Black and Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg 

       

      
        
          
          

        

        
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      Financial
Markets (“Bloomberg”)
determined as of the day immediately following the public announcement of the
applicable Fundamental Transaction and reflecting (i) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the remaining term
of this Warrant as of such date of request and (ii) an expected volatility equal
to the greater of 50% and the 100 day volatility obtained from the HVT function
on Bloomberg.  As used herein, (x) "Successor
Entity" means the Person (or, if so elected by the Holder, the Parent
Entity) formed by, resulting from or surviving any Fundamental Transaction or
the Person (or, if so elected by the Holder, the Parent Entity) with which such
Fundamental Transaction shall have been entered into, (y) "Eligible
Market" means The New York Stock Exchange, Inc., the NYSE Alternext, The
NASDAQ Global Market, The NASDAQ Global Select Market or The NASDAQ Capital
Market, (z) "Parent
Entity" of a Person means an entity that, directly or indirectly,
controls the applicable Person and whose common stock or equivalent equity
security is quoted or listed on an Eligible Market, or, if there is more than
one such Person or Parent Entity, the Person or Parent Entity with the largest
public market capitalization as of the date of consummation of the Fundamental
Transaction, (aa) “Person”
means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government
or any department or agency thereof, and (bb) “Business
Day” means any day other than Saturday, Sunday or other day on which
commercial banks in The City of New York are authorized or required by law to
remain closed.

       

      (d) Number of Warrant
Shares. Simultaneously with any adjustment to the Exercise Price pursuant
to paragraph (a) of this Section 9, the number of Warrant Shares that may be
purchased upon exercise of this Warrant shall be increased or decreased
proportionately, so that after such adjustment the aggregate Exercise Price
payable hereunder for the adjusted number of Warrant Shares shall be the same as
the aggregate Exercise Price in effect immediately prior to such
adjustment.

       

      (e) Purchase
Rights.  In addition to any adjustments pursuant to Section 9
above, if at any time the Company grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of any class of shares of Common
Stock, other than any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property issued pursuant to the Rights
Agreement, dated as of May 19, 2003 and amended as of May 12, 2005 and August
28, 2007, between the Company and Computershare Trust Company, Inc. as Rights
Agent, (the "Purchase
Rights"), then the Holder will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which the
Holder could have acquired if the Holder had held the number of shares of Common
Stock acquirable upon complete exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) immediately before the date on
which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of
shares of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.  As used herein, (x) "Options"
means any rights, warrants or options to subscribe for or purchase shares of
Common Stock or Convertible Securities and (y) "Convertible
Securities" means any stock or securities (other than Options) directly
or indirectly convertible into or exercisable or exchangeable for shares of
Common Stock.

       

      
        
          
          

        

        
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      (f) Calculations. All
calculations under this Section 9 shall be made to the nearest cent or the
nearest 1/100th of a
share, as applicable. The number of shares of Common Stock outstanding at any
given time shall not include shares owned or held by or for the account of the
Company, and the disposition of any such shares shall be considered an issue or
sale of Common Stock.

       

      (g) Notice of
Adjustments. Upon the occurrence of each adjustment pursuant to this
Section 9, the Company at its expense will, at the written request of the
Holder, promptly compute such adjustment, in good faith, in accordance with the
terms of this Warrant and prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or type
of Warrant Shares or other securities issuable upon exercise of this Warrant (as
applicable), describing the transactions giving rise to such adjustments and
showing in reasonable detail the facts upon which such adjustment is based. Upon
written request, the Company will promptly deliver a copy of each such
certificate to the Holder and to the Company’s transfer agent.

       

      (h) Notice of Corporate
Events. If, while this Warrant is outstanding, the Company (i) declares a
dividend or any other distribution of cash, securities or other property in
respect of its Common Stock, including, without limitation, any granting of
rights or warrants to subscribe for or purchase any capital stock of the Company
or any Subsidiary, (ii) authorizes or approves, enters into any agreement
contemplating or solicits stockholder approval for any Fundamental Transaction
or (iii) authorizes the voluntary dissolution, liquidation or winding up of the
affairs of the Company, then, except if such notice and the contents thereof
shall be deemed to constitute material non-public information, the Company shall
deliver to the Holder a notice describing the material terms and conditions of
such transaction at least 10 Trading Days prior to the applicable record or
effective date on which a person would need to hold Common Stock in order to
participate in or vote with respect to such transaction, and the Company will
take all reasonable steps to give Holder the practical opportunity to exercise
this Warrant prior to such time; provided, however, that the
failure to deliver such notice or any defect therein shall not affect the
validity of the corporate action required to be described in such
notice.

       

      10.  Payment of Exercise
Price. The Holder may pay the Aggregate Exercise Price in one of the
following manners:

       

      (a) Cash Exercise. If an
Exercise Notice is delivered at a time when the Registration Statement is
effective, then the Holder shall deliver the Aggregate Exercise Price in cash or
by wire transfer of immediately available funds; or

       

      (b) Cashless Exercise. If
an Exercise Notice is delivered at a time when the Registration Statement is not
then effective, then the Holder shall notify the Company in an Exercise Notice
of its election to utilize cashless exercise, in which event the Company shall
issue to the Holder the number of Warrant Shares determined as according to the
following formula (a “Cashless
Exercise”):

       

      
        
          
          

        

        
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      X = Y
[(A-B)/A]

       

      where:

       

      X = the
number of Warrant Shares to be issued to the Holder.

       

      Y = the
total number of Warrant Shares with respect to which this Warrant is being
exercised (which shall include both the number of Warrant Shares to be issued to
the Holder and the number of Warrant Shares subject to the portion of the
Warrant to be cancelled in payment of the Aggregate Exercise
Price).

       

      A = the
arithmetic average of the Closing Sale Prices of a share of Common Stock for the
five (5) consecutive Trading Days ending on the date immediately preceding the
date of the Exercise Notice (the “Fair Market
Value”).

       

      B = the
Exercise Price then in effect for the applicable Warrant Shares at the time of
such exercise.

       

       

      For
purposes of this Warrant, “Closing Sale
Price” means, for any security as of any date, the last trade price for
such security on the principal securities exchange or trading market for such
security, as reported by Bloomberg, or, if such exchange or trading market
begins to operate on an extended hours basis and does not designate the last
trade price, then the last trade price of such security prior to 4:00 p.m., New
York City time, as reported by Bloomberg, or if the foregoing do not apply, the
last trade price of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg Financial
Markets, or, if no last trade price is reported for such security by Bloomberg,
the average of the bid prices, or the ask prices, respectively, of any market
makers for such security as reported in the "pink sheets" by Pink Sheets
LLC.  If the Closing Sale Price cannot be calculated for a security on
a particular date on any of the foregoing bases, the Closing Sale Price of such
security on such date shall be the fair market value as mutually determined by
the Company and the Holder.  If the Company and the Holder are unable
to agree upon the fair market value of such security, then the Company shall,
within two (2) Business Days submit via facsimile the disputed determination of
the fair market value of such security to an independent, reputable investment
bank selected by the Company and approved by the Holder.  The Company
shall cause, at its expense, the investment bank, to perform the determinations
and notify the Company and the Holder of the results no later than ten (10)
Business Days from the time it receives the disputed
determinations.  Such investment bank's determination shall be binding
upon all parties absent demonstrable error. All such determinations shall be
appropriately adjusted for any stock dividend, stock split, stock combination or
other similar transaction during the applicable calculation period.

       

      For
purposes of this Warrant, “Trading
Day” means any day on which the Common Stock is traded on the principal
securities exchange or trading market on which the Common Stock is then traded;
provided that “Trading
Day” shall not include any day on which the Common Stock is scheduled to trade
on such exchange or market for less than 4.5 hours or any day that the Common
Stock is suspended from trading during the final hour of trading on such
exchange or market (or if such exchange or market does not designate in advance
the closing 

       

      
        
          
          

        

        
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      time of
trading on such exchange or market, then during the hour ending at 4:00 p.m.,
New York time.

       

      (c) Company-Elected
Conversion.

       

      (i) The
Company shall provide to the Holder prompt written notice of any time that the
Company is unable to issue the Warrant Shares via DTC transfer (or otherwise
without restrictive legend), because (A) the Securities and Exchange Commission
(the “Commission”)
has issued a stop order with respect to the Registration Statement, (B) the
Commission otherwise has suspended or withdrawn the effectiveness of the
Registration Statement, either temporarily or permanently, (C) the Company has
suspended or withdrawn the effectiveness of the Registration Statement, either
temporarily or permanently, or (D) otherwise (each a “Restrictive
Legend Event”).  To the extent that a Restrictive Legend Event
occurs after the Holder has exercised this Warrant in accordance with Section 4
hereof but prior to the delivery of the Warrant Shares, the Company shall (x) if
the Fair Market Value (as calculated above) of the Warrant Shares is greater
than the Exercise Price, provide written notice to the Holder that the Company
will deliver that number of Warrant Shares to the Holder as should be delivered
in a Cashless Exercise in accordance with this Section 10, and return to the
Holder all consideration paid to the Company in connection with the Holder’s
attempted exercise of this Warrant pursuant to Section 4 hereof (a “Company-Elected
Conversion”), or (y) at the election of the Holder to be given within
five (5) days of receipt of notice of a Company-Elected Conversion, the Holder
shall be entitled to rescind the previously submitted Exercise Notice and the
Company shall return all consideration paid by Holder for such shares upon such
rescission.

       

      (ii) If a
Restrictive Legend Event has occurred and no exemption from the registration
requirements is available (including, without limitation, under Section 3(a)(9)
of the Securities Act of 1933, as amended, by virtue of a Cashless Exercise),
this Warrant shall not be exercisable.  Notwithstanding anything
herein to the contrary, the Company shall not be required to make any cash
payments to the Holder in lieu of issuance of the Warrant Shares.  The
Company shall give prompt written notice to the Holder of any cessation of a
Restrictive Legend Event (the “Re-Effectiveness
Notice”).  Notwithstanding anything to the contrary contained
herein, the Expiration Date of this Warrant shall be extended for a period of
five (5) days following receipt by the Holder of the Re-Effectiveness
Notice.

       

      11.  Limitations on
Exercise.

       

      (a) Notwithstanding
anything to the contrary contained herein, in no event shall the Holder be
entitled to exercise this Warrant for a number of Warrant Shares in excess of
that number of Warrant Shares which, upon giving effect to such exercise, would
cause the aggregate number of shares of Common Stock beneficially owned by the
Holder and any other person or entity whose beneficial ownership of Common Stock
would be aggregated with the Holder’s for purposes of Section 13(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”), to exceed 19.99% of the voting power of the Company following such
exercise, unless the Company obtains the requisite stockholder approval required
under NASDAQ Marketplace Rule 4350(i)(1)(B) (the “Issuance
Limitation”), in which case, the Issuance Limitation under this Section
11 shall no longer apply to the Holder.  Each delivery of an Exercise
Notice hereunder will constitute a representation by the Holder that it has
evaluated 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      the
limitation set forth in this Section and determined that issuance of the full
number of Warrant Shares requested in such Exercise Notice is permitted under
this Section.  For purposes of this Section 11, the aggregate number
of shares of Common Stock beneficially owned by the Holder and any other person
or entity whose beneficial ownership of Common Stock would be aggregated with
the Holder’s for purposes of Section 13(d) of the Exchange Act shall include the
shares of Common Stock issuable upon the exercise of this Warrant, subject in
all cases to the Issuance Limitation.  Beneficial ownership shall be
determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder.

       

      (b) Notwithstanding
anything to the contrary contained herein, if the exercise of this Warrant by
the Holder would trigger the Issuance Limitation, thus requiring the Company to
obtain stockholder approval of such exercise pursuant to NASDAQ Marketplace Rule
4350(i)(1)(B) prior to such issuance, and such stockholder approval has not been
obtained, (i) the number of Warrant Shares issuable upon exercise shall be
reduced to the maximum extent that would not require stockholder approval under
such Rule, and (ii) the Company shall use its commercially reasonable efforts to
obtain such stockholder approval as soon as reasonably practicable; provided, however, that the
Company shall not be required to call a special meeting of stockholders to
obtain such stockholder approval.

       

      12.  No Fractional Shares.
No fractional Warrant Shares will be issued in connection with any exercise of
this Warrant. In lieu of any fractional shares that would otherwise be issuable,
the number of Warrant Shares to be issued shall be rounded down to the nearest
whole number and the Company shall pay the Holder cash equal to the product of
such fraction multiplied by the Closing Sale Price of one share of Common Stock
on the Exercise Date.

       

      13.  Notices. Any and all
notices or other communications or deliveries hereunder (including, without
limitation, any Exercise Notice) shall be in writing and shall be deemed given
and effective on the earliest of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section at or prior to 5:30 p.m., New York City time, on a Trading Day,
(ii) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section on a day that is not a Trading Day or later than 5:30 p.m. (New
York City time) on any Trading Day, (iii) the Trading Day following the date of
mailing, if sent by nationally recognized overnight courier service specifying
next business day delivery, or (iv) upon actual receipt by the party to whom
such notice is required to be given if by hand delivery.  The
addresses for such notices or communications shall be:  if to the
Company, to Cytori Therapeutics, Inc., 3020 Callan Road, San Diego, California
92121, Attention: Chief Executive Officer, (Facsimile No.: 858-450-4335) (or
such other address as the Company shall indicate in writing in accordance with
this Section) or (ii) if to the Holder, to the address or facsimile number
appearing on the Warrant Register (or such other address as the Holder shall
indicate in writing in accordance with this Section).

       

      14.  Warrant Agent. The
Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to
the Holder, the Company may appoint a new warrant agent. Any corporation into
which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent
shall be a party or any corporation to which the Company or any new warrant
agent transfers 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      substantially
all of its corporate trust or shareholders services business shall be a
successor warrant agent under this Warrant without any further act. Any such
successor warrant agent shall promptly cause notice of its succession as warrant
agent to be mailed (by first class mail, postage prepaid) to the Holder at the
Holder’s last address as shown on the Warrant Register.

       

      15.  Miscellaneous.

       

      (a) No Rights as a
Stockholder.  The Holder, solely in such person’s or entity’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive
dividends or be deemed the holder of share capital of the Company for any
purpose, nor shall anything contained in this Warrant be construed to confer
upon the Holder, solely in such person’s or entity’s capacity as the Holder of
this Warrant, any of the rights of a stockholder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation,
merger, amalgamation, conveyance or otherwise), receive notice of meetings,
receive dividends or subscription rights, or otherwise, prior to the issuance to
the Holder of the Warrant Shares which the Holder is then entitled to receive
upon the due exercise of this Warrant. In addition, nothing contained in this
Warrant shall be construed as imposing any liabilities on the Holder to purchase
any securities, whether such liabilities are asserted by the Company or by
creditors of the Company.

       

      (b) Successors and
Assigns.  Subject to the restrictions on transfer set forth in
this Warrant and compliance with applicable securities laws, this Warrant may be
assigned by the Holder.  This Warrant may not be assigned by the
Company without written consent of the Holder except to a successor in the event
of a Fundamental Transaction.  This Warrant shall be binding on and
inure to the benefit of the parties hereto and their respective successors and
assigns. Subject to the preceding sentence, nothing in this Warrant shall be
construed to give to any person or entity other than the Company and the Holder
any legal or equitable right, remedy or cause of action under this
Warrant.

       

      (c) Governing Law;
Jurisdiction.  All questions concerning the construction,
validity, enforcement and interpretation of this Warrant shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of this Warrant and the transactions herein contemplated
(“Proceedings”)
(whether brought against a party hereto or its respective affiliates, employees
or agents) shall be commenced exclusively in state or federal courts sitting in
the city of New York, borough of Manhattan. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
the city of New York, borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any Proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, or that such Proceeding has been commenced in an improper or
inconvenient forum.  Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such
Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Warrant and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any 

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      way any
right to serve process in any manner permitted by law. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and
all right to trial by jury in any legal proceeding arising out of or relating to
this Warrant or the transactions contemplated hereby. If either party shall
commence a Proceeding to enforce any provisions of this Warrant, then the
prevailing party in such Proceeding shall be reimbursed by the other party for
its attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

       

      (d) Amendment and
Waiver.  Except as otherwise provided herein, the provisions of
this Warrant may be amended, and the Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the written consent of the Holder.

       

      (e) Acceptance.  Receipt
of this Warrant by the Holder shall constitute acceptance of and agreement to
all of the terms and conditions contained herein.

       

      (f) Construction;
Headings.  This Warrant shall be deemed to be jointly drafted
by the Company and the Holder and shall not be construed against any party as
the drafter hereof. The headings herein are for convenience of reference only
and shall not constitute a part of, or affect the interpretation of, this
Warrant.

       

      (g) Severability.  In
case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or
impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

       

      

       

      [REMAINDER
OF PAGE LEFT INTENTIONALLY BLANK.

       

      SIGNATURE
PAGE FOLLOWS]

       

       

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

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

       

      

      
      

       

      
        
          	
                   CYTORI
      THERAPEUTICS, INC. 

                   

                  By:           _____________________________

                  Name:      _____________________________

                  Title:        _____________________________

                

        

      

       

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      ATTACHMENT
1

      

      EXERCISE
NOTICE

      

      CYTORI
THERAPEUTICS, INC.

      WARRANT
TO PURCHASER COMMON STOCK

      ORIGINALLY
ISSUED MARCH [●], 2009

       

      Ladies
and Gentlemen:

      

      The
undersigned hereby exercises the right to purchase ___________________ of the
shares of Common Stock of Cytori Therapeutics, Inc., a Delaware corporation (the
“Company”),
evidenced by the above-referenced and enclosed Warrant to Purchase Common Stock
(Warrant No. __________) (the “Warrant”).
Capitalized terms used herein and not otherwise defined herein have the
respective meanings set forth in the Warrant.

      

      (1)           Form of Exercise
Price.  The Holder intends that payment of the Exercise Price
shall be made as (check one):

      

                  Cash
Exercise under Section 10(a) of the Warrant

      

                  Cashless
Exercise under Section 10(b) of the Warrant

      

      (2)           Payment of Exercise
Price.  If the Holder has elected a Cash Exercise, the Holder
shall pay the sum of US$_____________ in cash or by wire transfer of immediately
available funds to the Company in accordance with the terms of the
Warrant.

      

      (3)           Delivery of Warrant
Shares.  Pursuant to this Exercise Notice, the Company shall
deliver to the Holder the number of Warrant Shares determined in accordance with
the terms of the Warrant.

       

      (4)           By
its delivery of this Exercise Notice, the undersigned represents and warrants to
the Company that in giving effect to the exercise evidenced hereby the Holder
will not beneficially own in excess of the number of shares of Common Stock
permitted to be owned under Section 11 of the Warrant to which this notice
relates.

      

      Dated:  ____________________

      

                              

      (Print
name of Holder)

      

      By:              ____________________________

       

      Name:         ____________________________

       

      Title:           ____________________________

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ATTACHMENT
2

      

      FORM
OF ASSIGNMENT

      

      CYTORI
THERAPEUTICS, INC.

      WARRANT
TO PURCHASER COMMON STOCK

      ORIGINALLY
ISSUED MARCH [●], 2009

      

      [To be
completed and signed only upon transfer of the Warrant]

       

      FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto                                                             
(the “Transferee”)
the right represented by the enclosed Warrant to purchase                                     
shares of Common Stock of Cytori Therapeutics, Inc., a Delaware corporation (the
“Company”)
to which the enclosed Warrant relates and appoints                                  
attorney to transfer said right on the books of the Company with full power of
substitution in the premises.

       

      
      

       

      
        	
                Dated:
      _________________________         

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                                
      

                  
                    In
      the presence of:

                  

                   

                                          

                

              	
                 HOLDER:

                 

                 

                                    

                (Print
      Name)

                 

                By:                                                             

                 

                Title:               

                

                TRANSFEREE:

                 

                
                                      

                  (Print
      Name)

                

                 

                 

                
                                      

                  (Address
      of Transferee)ex10-63subscriptionagt.htm

     

    Exhibit
10.63

    
      SUBSCRIPTION
AGREEMENT

       

      Cytori
Therapeutics, Inc.

      3020
Callan Road

      San
Diego, California 92121

      

      Ladies
and Gentlemen:

       

      The
undersigned (the “Investor”) hereby confirms
and agrees with you as follows:

       

      1.   This
Subscription Agreement (this “Agreement”) is made as of the
date set forth below between Cytori Therapeutics, Inc., a Delaware corporation
(the “Company”), and
the Investor.

       

      2.   The
Company has authorized the sale and issuance of (i) up to _______ shares (the
“Shares”) of the
Company’s common stock, $0.001 par value per share (the “Common Stock”), and (ii)
warrants to purchase up to ________ shares of Common Stock in the form attached
hereto as Exhibit B (the
“Warrants” and together
with the Shares, the “Securities”).  The
purchase price for the Securities shall be $2.10 per unit, with each unit
consisting of one (1) Share and one and four-tenths (1.4) Warrants (the “Offering”). The Offering and
issuance of the Securities have been registered under the Securities Act of
1933, as amended (the “Securities Act”), pursuant to
the Company’s Registration Statement on Form S-3 (No. 333-157023),
including all amendments thereto, the exhibits and any schedules thereto, the
documents otherwise deemed to be a part thereof or included therein by the rules
and regulations (the “Rules
and Regulations”) of the Securities and Exchange Commission (the “Commission”) and any
registration statement relating to the Offering and filed pursuant to Rule
462(b) under the Rules and Regulations (collectively, the “Registration
Statement”).  The Investor acknowledges that the Company
intends to enter into subscription agreements in substantially the same form as
this Agreement with certain other investors.  The Company agrees that it
shall use commercially reasonable efforts to list the Warrants on the Nasdaq
Global Market as soon as practicable.

       

      3.   As of the
Closing (as defined below) and subject to the terms and conditions
hereof,  the Company and the Investor agree that the Investor will
purchase from the Company and the Company will issue and sell to the Investor
such number of Shares and Warrants as is set forth on the signature page hereto
(the “Signature
Page”).  The Investor acknowledges that the Offering is not a
firm commitment underwriting and that there is no minimum offering
amount.  Certificates representing the Shares purchased by the
Investor will not be issued to the Investor; instead, such Shares will be
credited to the Investor using customary procedures for book-entry transfer
through the facilities of The Depository Trust Company (“DTC”).  The
Warrants will be issued by the Company, and delivered to the Investor, in
physical form.  This Offering will not clear directly through the
Placement Agent (as defined below) acting in such capacity. Consequently, the
Investor must instruct their individual broker how to settle the
transaction.

       

      4.   The
completion of the purchase and sale of the Securities shall occur at a closing
(the “Closing”) which,
in accordance with Rule 15c6-1 promulgated under the Securities Exchange Act of
1934, as amended, shall occur on March 13, 2009.  At the Closing, (a)
the Company shall cause its transfer agent to release to the Investor the number
of Shares being purchased by the Investor, (b) the Company shall deliver to the
Investor the Warrants being purchased by the Investor and (c) the aggregate
purchase price for the Securities being purchased by the Investor will be
delivered by or on behalf of the Investor to the Company.  The
provisions set forth in Exhibit A hereto
shall be incorporated herein by reference as if set forth fully
herein.

       

      5.   The
Registration Statement filed by the Company with the Commission contains a
prospectus (the “Base
Prospectus”) and the Company will promptly file with the Commission a
final prospectus supplement (collectively with the Base Prospectus, the “Prospectus”) with respect to
the Registration Statement in conformity with the Securities Act, including Rule
424(b) thereunder.  The Investor hereby consents to the receipt of the
Company’s Prospectus in portable document format, or .pdf, via
e-mail.

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

      6.   The
Company has entered into a Placement Agency Agreement (the “Placement Agreement”), dated
March 9, 2009 with Piper Jaffray & Co. (the “Placement Agent”), which will
act as the Company’s placement agent
with respect to the Offering and receive a fee in connection with the sale of
the Securities.  The Placement Agreement contains certain
representations and warranties of the Company.  The Company
acknowledges and agrees that the Investor may rely on the representations and
warranties made by it to the Placement Agent in Section 2 of the Placement
Agreement to the same extent as if such representations and warranties had been
incorporated in full herein and made directly to the Investor, which shall be a
third party beneficiary thereof.  Capitalized terms used, but not
otherwise defined, herein shall have the meanings ascribed to such terms in the
Placement Agreement.

       

      7.   The obligations of the
Company and the Investor to complete the transactions contemplated by this
Agreement shall be subject to the following:

       

      (a)   The
Company’s obligation to issue and sell the Securities to the Investor shall be
subject to: (i) the receipt by the Company of the purchase price for the Shares
and Warrants being purchased hereunder as set forth on the Signature Page and
(ii) the accuracy of the representations and warranties made by the Investor and
the fulfillment of those undertakings of the Investor to be fulfilled prior to
the Closing Date.

       

      (b)   The
Investor’s obligation to purchase the Securities will be subject to the
condition that the Placement Agent shall not have: (i) terminated the Placement
Agreement pursuant to the terms thereof or (ii) determined that the conditions
to closing in the Placement Agreement have not been satisfied.

       

      8.   The
Company hereby makes the following representations, warranties and covenants to
the Investor:

       

      (a)   The
Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by this Agreement and otherwise to
carry out its obligations hereunder.  The execution and delivery of
this Agreement by the Company and the consummation by it of the transactions
contemplated hereunder have been duly authorized by all necessary action on the
part of the Company.  This Agreement has been duly executed by the
Company and, when delivered in accordance with the terms hereof, will constitute
the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as may be limited by any bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws affecting the enforcement of creditors’ rights generally or by general
principles of equity.

       

      (b)   The Company shall (i)
before the opening of trading on the Nasdaq Global Market on the next trading
day after the date hereof, issue a press release, disclosing all material
aspects of the transactions contemplated hereby and (ii) make such other filings
and notices in the manner and time required by the Commission with respect to
the transactions contemplated hereby.  Upon the issuance of the press
release described in the immediately preceding sentence, the Investor will not
be in receipt of any material, non-public information provided to it by the
Company, its officers or directors.  The Company shall not identify
the Investor by name in any press release or public filing, or otherwise
publicly disclose the Investor’s name, without the Investor’s prior written
consent, unless required by law or the rules and regulations of any
self-regulatory organization or exchange to which the Company or its securities
are subject.

       

      
        (c)           The
making, execution and performance of this Agreement by the Company and the
consummation of the transactions contemplated herein will not conflict with or
result in a breach or violation of any of the terms and provisions of, or
constitute a default under, (i) the charter, bylaws or other organizational
documents of the Company, as applicable, (ii) any law, order, rule, regulation,
writ, injunction, judgment or decree of any court, administrative agency,
regulatory body, government or governmental agency or body, domestic or foreign,
having jurisdiction over the Company or its properties (including federal and
state securities laws and regulations and the rules and regulations of the
Nasdaq Global Market) or (iii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or 

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        instrument
to which the Company or any of its subsidiaries is a party, except for any
conflict, breach, violation or default which is not reasonably likely to have a
material adverse effect on the Company, its subsidiaries or any property or
asset of the Company or any of its subsidiaries or the Company's performance of
its obligations hereunder or the consummation of the transactions contemplated
hereby.

         

        (d)           The
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court, governmental agency or any
regulatory or self-regulatory agency or any other Person in order for it to
execute, deliver or perform any of its obligations hereunder in accordance with
the terms hereof, other than (i) as may be required under the Securities Act,
(ii) any necessary qualification of the Securities under the securities or blue
sky laws of the various jurisdictions in which the Securities are being offered
by the Placement Agent and (iii) under the rules and regulations of the
Financial Industry Regulatory Authority (“FINRA”).  All
consents, authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence will be obtained or
effected on or prior to the Closing, and the Company and its subsidiaries are
unaware of any facts or circumstances which might prevent the Company from
obtaining or effecting any of the registration, application or filings pursuant
to the preceding sentence.  The Company is not in violation of the
requirements of the Nasdaq Global Market and has no knowledge of any facts which
would reasonably lead to delisting or suspension of the Common Stock in the
foreseeable future.

      

       

      9.   The
Investor hereby makes the following representations, warranties and covenants to
the Company:

       

      (a)   The
Investor represents that (i) it has received or had full access to the Base
Prospectus as well as the Company’s periodic reports and other information
incorporated by reference therein, prior to or in connection with its receipt of
this Agreement, (ii) it is knowledgeable, sophisticated and experienced in
making, and is qualified to make, decisions with respect to investments in
securities representing an investment decision like that involved in the
purchase of the Securities, and (iii) it does not have any agreement or
understanding, directly or indirectly, with any person or entity to distribute
any of the Securities.

       

      (b)   The
Investor has the requisite power and authority to enter into this Agreement and
to consummate the transactions contemplated hereby.   The
execution and delivery of this Agreement by the Investor
and the consummation by it of the transactions contemplated hereunder have been
duly authorized by all necessary action on the part of the
Investor.  This Agreement has been executed by the Investor and, when
delivered in accordance with the terms hereof, will constitute a valid and
binding obligation of the Investor enforceable against the Investor in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at
law).

       

      (c)   The
Investor understands that nothing in this Agreement or any other materials
presented to the Investor in connection with the purchase and sale of the
Securities constitutes legal, tax or investment advice.  The Investor
has consulted such legal, tax and investment advisors as it, in its sole
discretion, has deemed necessary or appropriate in connection with its purchase
of Securities.

       

      (d)   The making, execution and
performance of this Agreement by the Investor and the consummation of the
transactions contemplated herein will not conflict with or result in a breach or
violation of any of the terms and provisions of, or constitute a default under,
(i) the charter, bylaws or other organizational documents of such Investor, as
applicable, or (ii) any law, order, rule, regulation, writ, injunction, judgment
or decree of any court, administrative agency, regulatory body, government or
governmental agency or body, domestic or foreign, having jurisdiction over such
Investor or its properties, except for any conflict, breach, violation or
default which is not reasonably likely to have a material adverse effect on such
Investor’s performance of its obligations hereunder or the consummation of the
transactions contemplated hereby.

      
        
           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

        

      

      (e)   The Investor will
maintain the confidentiality of all information acquired as a result of the
transactions contemplated herein prior to the public disclosure of that
information by the Company.

       

      (f)   Neither
the Investor nor any Person acting on behalf of, or pursuant to any
understanding with or based upon any information received from, the Investor
has, directly or indirectly, engaged in any purchases or sales of the securities
of the Company (including, without limitation, any Short Sales involving the
Company’s securities) since the time that the Investor first discussed the
transactions contemplated hereby with the Placement Agent or the
Company.  “Short Sales” include, without limitation, all “short sales”
as defined in Rule 200 promulgated under Regulation SHO under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), whether or
not against the box, and all types of direct and indirect stock pledges,
forward  sale contracts, options, puts, calls, short sales, swaps,
“put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act)
and similar arrangements (including on a total return basis), and sales and
other transactions through non-U.S. broker dealers or foreign regulated
brokers.  The Investor covenants that neither it, nor any Person
acting on behalf of, or pursuant to any understanding with or based upon any
information received from, the Investor will engage in any purchases or sales of
the securities of the Company (including Short Sales) prior to the time that the
transactions contemplated by this Agreement are publicly disclosed or the
transactions contemplated hereby are terminated.

       

      (g)   The
Investor represents that, except as set forth below, (i) it has had no position,
office or other material relationship within the past three years with the
Company or persons known to it to be affiliates of the Company, (ii) it is not
a, and it has no direct or indirect association with any, FINRA member or an
Associated Person (as such term is defined under the FINRA Membership and
Registration Rules Section 1011) as of the date hereof, and (iii) neither it nor
any group of investors (as identified in a public filing made with the
Commission) of which it is a member, acquired, or obtained the right to acquire,
20% or more of the Common Stock (or securities convertible or exercisable for
Common Stock) or the voting power of the Company on a post-transaction
basis.    Exceptions:

      

        
          

        

      

      (If no
exceptions, write “none.” If left blank, response will be deemed to be
“none.”)

       

      10.   Notwithstanding
any investigation made by any party to this Agreement, all covenants,
agreements, representations and warranties made by the Company and the Investor
herein will survive the execution of this Agreement, the delivery to the
Investor of the Securities being purchased and the payment
therefor.

       

      11.   This
Agreement may not be modified or amended except pursuant to an instrument in
writing signed by the Company and the Investor.

       

      12.   The headings of the
various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be part of this
Agreement.

       

      13.    In case
any provision contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein will not in any way be affected or
impaired thereby.

       

      14.    This
Agreement will be governed by, and construed in accordance with, the internal
laws of the State of New York, without giving effect to the principles of
conflicts of law that would require the application of the laws of any other
jurisdiction.

       

      15.    This
Agreement may be executed in counterparts, each of which will constitute an
original, but all of which, when taken together, will constitute but one
instrument, and will become effective when counterparts have been signed by each
party hereto and delivered to the other party.

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

      16.    The
Investor acknowledges and agrees that such Investor’s receipt of the Company’s
counterpart to this Agreement shall constitute written confirmation of the
Company’s sale of Securities to such Investor.

       

      17.    In the
event that before the Closing the Placement Agreement is terminated by the
Placement Agent pursuant to the terms thereof, this Agreement shall terminate
without any further action on the part of the parties hereto.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      INVESTOR
SIGNATURE PAGE

       

       

      Number of
Shares:                                                                                     

       

      Number of
Warrants:                                                                                     

      (such
number to be equal to 140% of the number of Shares being purchased by the
Investor)

       

      Purchase
Price Per Unit: $2.10

       

      Aggregate
Purchase Price: $                                                                                     

      

       

      Please
confirm that the foregoing correctly sets forth the agreement between us by
signing in the space provided below for that purpose.

       

      

       

      Dated as
of: March ___, 2009

       

      

       

      
        
          
            
              
                
                  	
                           

                                                  

                          INVESTOR

                           

                          By:                                                      

                          Print
      Name:                                                      

                          Title:                                                      

                          Name
      in which Securities are to be
      registered:  _____________________

                          Mailing
      Address:     ____________________________

                          ____________________________

                          ____________________________

                          Facsimile
      Number: _____________________

                          Email
      Address:  _____________________

                          Taxpayer
      Identification Number:  _________________________

                          Manner
      of Settlement of the Shares:  DWAC (see Exhibit A for
      explanation and instructions)

                           

                        
	 
      	
                          Name
      of DTC Participant (broker-dealer at which the account or accounts to be
      credited with the Shares are maintained)

                           

                        	
                          
                             

                                                            

                          

                           

                        	 
      
	 
      	
                          DTC
      Participant Number

                           

                        	
                                                          

                        	 
      
	 
      	
                          Name
      of Account at DTC Participant being credited with the Shares

                           

                        	
                                                          

                        	 
      
	 
      	
                          Account
      Number at DTC Participant being credited with the Shares

                           

                        	                                	 
      

                

              

            

          

        

      

       

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      Agreed
and Accepted this _____ day of March, 2009:

      

       

      CYTORI
THERAPEUTICS, INC.

       

      

      By:                                                                

      Title:                                                                

       

      

       

      Sales
of the Securities purchased hereunder were made pursuant to a registration
statement or in a transaction in which a final prospectus would have been
required to have been delivered in the absence of Rule 172 promulgated under the
Securities Act.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A

       

      INSTRUCTIONS
FOR SETTLEMENT

       

      Unless
otherwise agreed to by the Company and the Investor, the following instructions
shall govern the delivery of funds and the transfer of the Shares:

       

      1.           Delivery of
Funds

       

      By
NO LATER THAN 3:00 p.m. New York City time on March 11, 2009,
wire the purchase price for the Securities to the trust account
of JPMorgan Chase Bank, N.A, as Escrow Agent, using the wire transfer
instructions below.

       

      The wired
funds will be held in escrow pursuant to the Escrow Agreement until the Closing
and will be delivered by the Escrow Agent on your behalf to the Company upon the
satisfaction, in the sole judgment of the Placement Agent, of the conditions set
forth in Section 7(b) of the Subscription Agreement to which this Exhibit A is
attached.

       

      2.           Wire
Transfer Instructions

       

      JPMorgan
Chase Bank

      ABA #
021000021

      Account
No.:  XXXXXXXXX

      Account
Name: Cytori Therapeutics Subscription

      Attention:
Andy Jacknick/Debbie DeMarco

      

      Please
also coordinate with your financial institution to ensure that transaction fees
are not inadvertently
deducted from the wired funds prior to their receipt by JPMorgan Chase
Bank.

      

      Contact at the Escrow
Agent:

      

      Name:  Andy
Jacknick - JPMorgan Chase Bank, N.A

      Tel:  212-623-0241

      

      3.           Initiation
of DWAC and Transfer of Shares

      

      The
Shares will be sent from the Company's transfer agent, ComputerShare Investor
Services, LLC, by DWAC to your prime broker.  You
must contact
your prime broker and ask them to initiate the DWAC or you will not receive the
Shares.  The Shares will only be released after the Company’s
receipt of the
funds.

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
B

       

      FORM
OF WARRANT

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