Document:

Subscription Escrow Agreement

 Exhibit 10.30 

 
  

 
 SUBSCRIPTION ESCROW AGREEMENT

 By and Among 
 INTERNATIONAL STEM CELL CORPORATION, 
 CRT CAPITAL GROUP LLC

 And 
 THE BANK OF NEW YORK MELLON 
 Dated as of November 30, 2012 

ACCOUNT NUMBER: [To be assigned by the Escrow Agent] 
 SHORT TITLE OF ACCOUNT: “PROJECT STEM ESCROW ACCOUNT” 
  

 
  

 SUBSCRIPTION ESCROW AGREEMENT 

Subscription Escrow Agreement (the “Agreement”), dated as of November 30, 2012, by and among International Stem
Cell Corporation, a Delaware corporation, with its principal office at 5950 Priestly Drive, Carlsbad, California 92008 (the “Company”), CRT Capital Group LLC, a Delaware limited liability company, with its principal office at 262
Harbor Drive, Stamford, Connecticut 06902(the “Placement Agent”), and The Bank of New York Mellon, a New York banking corporation with its principal corporate trust office at 101 Barclay Street, 8W, New York, New York 10286 (the
“Escrow Agent”). 
 WHEREAS, the Placement Agent has been retained by the Company to act as the
Company’s exclusive placement agent to solicit offers for the purchase of (i) shares (the “Shares”) of the Company’s common stock, $0.001 par value per share (the “Common Stock”), and (ii) warrants to
purchase shares of Common Stock (the “Warrants”). The Shares and the Warrants are collectively referred to herein as the “Securities”. 
 WHEREAS, the public offering and sale of the Securities (the “Offering”) are being made pursuant to a Registration Statement on Form S-1 (File No. 333-184493), which
was initially filed by the Company with the Securities and Exchange Commission on October 18, 2012, and which contemplates the offer and sale of up to $15,000,000 of Securities by the Company. 

WHEREAS, the purchase and sale of the Securities will be made pursuant to a form of subscription agreement (the
“Subscription Agreement”) to be entered into by and between the Company and each of the persons who subscribe to purchase Securities in the Offering (each a “Subscriber” and collectively, the
“Subscribers”). 
 WHEREAS, the Company and the Placement Agent propose to engage the Escrow
Agent for the purpose of receiving, depositing and holding in a segregated non interest-bearing account all funds received by the Escrow Agent in connection with the sale of the Securities in the Offering until such time as the funds are to be
released to the Company (or returned to the Subscribers) in accordance with the terms of this Agreement. 

WHEREAS, subject to the terms and conditions of this Agreement, the Escrow Agent has agreed to act as escrow agent in
connection with the Offering of the Securities. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged by each of the parties hereto, the parties hereto, intending to be legally bound, do hereby agree as follows: 
 Section 1. Appointment of Escrow Agent. The Company hereby appoints The Bank of New York Mellon as Escrow Agent in accordance with the terms and conditions set forth herein, and the Escrow
Agent hereby accepts such appointment. 
 Section 2. Establishment of Escrow Account. The Escrow Agent shall
promptly cause to be opened a fully segregated non interest-bearing escrow account, which escrow account shall bear account number [To be assigned by the Escrow Agent] and be entitled the “Project Stem Escrow Account” (the “Escrow
Account”). The purpose of the Escrow Account is for (a) the deposit of all subscription monies paid by wire transfer (or such other form of payment as agreed to by the Placement Agent in its sole discretion) from Subscribers pursuant
to the Subscription Agreements, 

 
which are delivered to the Escrow Agent, (b) the holding of subscription monies which are collected by the Escrow Agent, and (c) the disbursement (or return) of subscription monies
collected and held, all on the terms and subject to the conditions described herein. 
 Section 3. Deposits.

 (a) Each Subscriber shall deliver to the Escrow Agent, using the instructions set forth on the signature page to the
Subscription Agreement, all monies that such Subscriber has agreed to pay to the Company for the purchase of the Securities, which monies shall be in the form of a wire transfer of Federal Funds (unless another form of payment is agreed to by the
Placement Agent in its sole discretion). In the event that any Subscriber has delivered any monies to purchase the Securities directly to the Placement Agent, the Placement Agent shall promptly deliver to the Escrow Agent all such monies. Wire
transfer information for the Escrow Agent is as follows: 
 [To be provided by the Escrow Agent] 

(b) Subscription monies shall be deemed received by the Escrow Agent on a particular business day to the extent received by 5:00 p.m. New
York City Time on such day. Subscription monies received after 5:00 p.m. New York City time on a particular business day shall be deemed received on the following business day. As soon as practicable following receipt by the Escrow Agent of
subscription monies from a Subscriber (determined in accordance with the foregoing two sentences), but in any event by 12:00 p.m. New York City time on the business day following receipt of such subscription monies, the Escrow Agent will notify the
Placement Agent of such receipt, and the Placement Agent will determine whether or not the subscription is to be accepted or rejected in whole or in part. With respect to each subscription which is to be accepted, the Placement Agent will notify the
Escrow Agent in writing (which may be in the form of an e-mail) of such acceptance. With respect to each subscription which is to be rejected (in whole or in part), the Placement Agent will notify the Escrow Agent in writing (which may be in the
form of an e-mail) of such rejection, and upon receipt of such notification, the Escrow Agent will as promptly as practicable issue a check in the amount of the rejected Subscriber’s subscription (without deduction, penalty or expense to the
Subscriber) directly to the rejected Subscriber based on instructions set forth in the written rejection notice. 
 (c) Promptly
after the receipt of subscription monies as described in Section 3(a) and the acceptance of subscription monies as described in Section 3(b), the Escrow Agent shall deposit the same into the Escrow Account. Amounts so
deposited into the Escrow Account are hereinafter referred to as “Proceeds”. Only those Escrow Amounts which have been deposited in the Escrow Account and which have cleared the banking system will constitute “Proceeds”
for purposes of this Agreement. 
 (d) Promptly following each deposit into the Escrow Account, the Escrow Agent shall request
of the Placement Agent, and the Placement Agent shall provide to the Escrow Agent, (i) the name and address of the Subscriber that made the deposit, (ii) a completed IRS Form W-9 (or Substitute Form W-9) or IRS Form W-8 (as applicable) for
the Subscriber, including the tax identification number of the Subscriber that made the deposit, (iii) the amount of Securities subscribed for by such Subscriber, and (iv) the aggregate dollar amount of such subscription (collectively, the
“Subscription Information”). The Subscription Information shall be provided to the Escrow Agent in writing (which may be in the form of an e-mail). 

  
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 (e) Payments by Subscribers shall not be deemed deposited in the Escrow Account until the
Escrow Agent has received the Subscription Information required with respect to such payments. 
 Section 4. No
Investment of Proceeds. The parties do not intend for the Proceeds to be invested during the term of this Agreement. The Proceeds shall be maintained in a non interest-bearing account maintained by the Escrow Agent, which account shall not be
subject to investment risk. 
 Section 5. Disbursements from the Escrow Account. 

(a) Upon receipt of a written notice from the Placement Agent, in substantially the form attached hereto as Exhibit A (any such
notice, a “Disbursement Notice”), indicating that all conditions precedent to the Closing (as defined in the Subscription Agreement) of the Offering have been met and that the Proceeds may be released, the Escrow Agent shall
promptly disburse the Proceeds with respect to the Closing in accordance with such instructions. 
 (b) In the event that, as of
5:00p.m., New York City time, on January 31, 2013, the Offering has not otherwise been terminated or the Escrow Agent has not received the Disbursement Notice from the Placement Agent, the Escrow Agent shall promptly (and in any event within 15
days) pay to each of the Subscribers an amount equal to the subscription monies previously delivered to the Escrow Agent by such Subscriber (without deduction, penalty or expense to the Subscriber), which payment shall be made by check issued
directly to the Subscriber. Such payments shall be made to the Subscribers based upon the information included in written (which may be in the form of an e-mail) instructions provided by the Placement Agent to the Escrow Agent. The Escrow Agent
shall notify the Placement Agent of the distribution of such monies to the Subscribers. 
 Section 6. Termination of
Escrow. Upon the release of all of the Proceeds in accordance with Section 5, this Agreement shall terminate and the Escrow Agent shall be relieved of further obligations and released from all liability under this Agreement, except claims
which are occasioned by its bad faith, gross negligence or willful misconduct. 
 Section 7. Compensation of Escrow
Agent. 
 (a) At the time of execution of this Agreement, the Company shall pay the Escrow Agent an initial account
establishment fee of $7,500. There shall be no recurring periodic fees incurred in connection with the establishment or operation of the Escrow Account. 
 (b) The Company shall reimburse the Escrow Agent upon request for all reasonable and documented expenses, disbursements, and advances actually incurred or made by the Escrow Agent in implementing any of
the provisions of this Agreement, including reasonable and documented fees of its legal counsel incurred in connection with reviewing or negotiating this Agreement. 
 (c) The Company hereby grants to the Escrow Agent a lien on any of the Proceeds that the Company is entitled to receive hereunder such that, in the event that any and all charges payable under Section
7 and Section 8 shall not be timely paid by the Company, the Escrow Agent shall have the right to pay itself from such Proceeds the full amount owed, provided that written (which may be in the form of an e-mail) notice of the Escrow
Agent’s intent to proceed under this Section 7 be given at least five (5) business days in advance of such action. For the sake of clarity, a lien shall not be 

  
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granted on any Proceeds that are subject to being returned to Subscribers, which Proceeds shall not be subject to any liens, offsets or deductions. 

Section 8. Responsibilities of Escrow Agent; Notices. 

(a) The Escrow Agent shall be under no duty to enforce payment of any subscription which is to be paid to and held by it. 

(b) The Escrow Agent shall be under no duty to accept funds, checks, drafts or instruments for the payment of money from anyone other
than the Placement Agent or to give any receipt therefor except to the Placement Agent. 
 (c) The Escrow Agent shall be
obligated to perform only such duties as are expressly set forth in or contemplated by this Agreement. The Escrow Agent shall not be bound by the provisions of any agreement among the Company and the Placement Agent beyond the specific terms hereof.

 (d) The Escrow Agent shall not be liable hereunder except for its own bad faith, gross negligence or willful misconduct in
connection with its duties under the Agreement, and the Company and the Placement Agent agree to jointly and severally indemnify the Escrow Agent for and hold it harmless as to any loss, liability, or expense, including reasonable attorney’s
fees and expenses (collectively, “Losses”), incurred without bad faith, gross negligence or willful misconduct on the part of the Escrow Agent and arising out of or in connection with the Escrow Agent’s duties under this
Agreement. Without limiting the foregoing, the Company and the Placement Agent agree to jointly and severally indemnify the Escrow Agent for any Losses incurred without bad faith, gross negligence or willful misconduct on the part of the Escrow
Agent and arising out of or in connection with the Escrow Agent’s reliance upon and compliance with instructions or directions given by facsimile or electronic transmission, it being understood that the failure of the Escrow Agent to verify or
confirm that the person giving such instructions or directions by facsimile or electronic transmission is, in fact, an authorized person, does not constitute gross negligence or willful misconduct. 

(e) The Escrow Agent shall be entitled to rely upon any order, judgment, certification, instruction, notice, opinion or other writing
delivered to it in compliance with the provisions of this Agreement without being required to determine the authenticity or the correctness of any fact stated therein or the propriety or validity of service thereof. The Escrow Agent may act in
reliance upon any instrument comporting with the provisions of this Agreement or signature believed by it to be genuine and may assume that any person purporting to give notice or receipt or advice or make any statement or execute any document in
connection with the provisions hereof has been duly authorized to do so. 
 At any time during the term of this Agreement the
Escrow Agent may request in writing an instruction in writing from the Placement Agent, and may at its own option include in such request the course of action it proposes to take and the date on which it proposes to act, regarding any matter arising
in connection with its duties and obligations hereunder. In the absence of bad faith, gross negligence or willful misconduct on the part of the Escrow Agent, the Escrow Agent shall not be liable for acting without the Placement Agent’s consent
in accordance with such a proposal on or after the date specified therein, provided that the specified date shall be at least two (2) business days after the Placement Agent receives the Escrow Agent’s request for instructions and its
proposed 

  
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course of action, and provided that, prior to so acting, the Escrow Agent has not received the written instructions requested. 

(f) The Escrow Agent may act pursuant to the advice of counsel chosen by it with respect to any matter relating to this Agreement and
shall not be liable for any action taken or omitted in accordance with such advice, except where the reliance on such advice was the result of bad faith, gross negligence or willful misconduct. 

(g) No provision of this Agreement shall require the Escrow Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder. 
 (h) The Escrow Agent shall be deemed conclusively to have given
and delivered any notice required to be given or delivered if it is in writing (which may be in the form of an e-mail), signed by any one of its authorized officers and mailed, by express, registered or certified mail addressed to: 

The Placement Agent at: 
 CRT Capital Group LLC 
 262 Harbor Drive 

Stamford, Connecticut 06902 
 Attn: John Calcagnini 
 Telephone: (310) 954-1525 

Facsimile: (310) 954-0706 

The Escrow Agent shall be deemed conclusively to have received any notice required to be given or delivered to the Escrow Agent if it is in writing,
signed by any one of the authorized officers of the Placement Agent, mailed, by express, registered or certified mail addressed to: 
 The Escrow Agent at: 
 The Bank of New York Mellon 

101 Barclay St, 8W 
 New York, New York 10286 
 Attn: Filippo Triolo 

Telephone: (212) 815-3229 
 Facsimile: (212) 815-5877/75 
 (i) The provisions of Section 7,
Section 8 and Section 11 shall survive termination of this Agreement and/or the resignation or removal of the Escrow Agent. 
 Section 9. Resignation of Escrow Agent; Successor. 
 Notwithstanding
anything to the contrary herein, the Escrow Agent may resign at any time by giving at least 15 days written notice thereof to the Placement Agent. The Placement Agent may remove the Escrow Agent at any time (with or without cause) by giving at least
15 days written notice thereof. Within 15 days after receiving such notice, the Placement Agent shall appoint a successor escrow agent at which time the Escrow Agent shall either distribute the funds held in the Escrow Account, less the fees owed to
the Escrow Agent pursuant to this Agreement, as directed by the instructions of the Placement Agent or hold such funds, pending distribution, until such fees are 

  
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paid. If a successor escrow agent has not been appointed or has not accepted such appointment by the end of the 15-day period, the Escrow Agent may apply to a court of competent jurisdiction for
the appointment of a successor escrow agent, or for other appropriate relief and the costs, expenses, and reasonable attorneys’ fees which the Escrow Agent incurs in connection with such a proceeding shall be paid by the Company. 

Section 10. Dispute Resolution. 
 In the event of any dispute between or conflicting claims by or among the Placement Agent and/or any other person or entity with respect to any Proceeds held in the Escrow Account, the Escrow Agent shall
be entitled, at its sole discretion, to refuse to comply with any and all claims, demands or instructions with respect to such Proceeds so long as such dispute or conflict shall continue, and the Escrow Agent shall not be or become liable in any way
to the Placement Agent for the Escrow Agent’s failure or refusal to comply with such conflicting claims, demands or instructions, except to the extent under the circumstances such failure would constitute gross negligence, bad faith or willful
misconduct on the part of the Escrow Agent. The Escrow Agent shall be entitled to refuse to act until, at its sole discretion, either such conflicting or adverse claims or demands shall have been finally determined in a court of competent
jurisdiction or settled by agreement between the conflicting parties as evidenced in writing, satisfactory to the Escrow Agent, or the Escrow Agent shall have received security or an indemnity satisfactory to the Escrow Agent sufficient to save the
Escrow Agent harmless from and against any and all loss, liability or expense which the Escrow Agent may incur by reason of the Escrow Agent’s acting. The Escrow Agent may in addition elect at its sole discretion to commence an interpleader
action or seek other judicial relief or orders as the Escrow Agent may deem necessary. 
 Section 11. Extraordinary
Expense. 
 It is understood that fees and usual charges agreed upon for the Escrow Agent’s services shall be
considered compensation for its services as contemplated by this Agreement, and if the Escrow Agent renders any service not provided for in this Agreement, or if there is any assignment of any interest in the subject matter of this Agreement by the
Placement Agent or the Company or any modification of this Agreement, or if any controversy arises under this Escrow Agreement or the Escrow Agent is made a party to any litigation pertaining to this Agreement or the subject matter of this
Agreement, the Escrow Agent shall be reasonably compensated for those extraordinary services and reimbursed for all reasonable costs and expenses occasioned by such services, controversy or litigation and the Company hereby promises to pay such sums
upon demand. 
 Section 12. Governing Law. 
 This agreement shall be governed and construed in accordance with the laws of the State of New York without reference to the principles thereof respecting conflicts of laws. This Agreement may be executed
in counterparts, each of which so executed shall be deemed an original, and said counterparts together shall constitute one and the same instrument. Each of the parties hereby waives the right to trial by jury and to assert counterclaims in any such
proceedings. To the extent that in any jurisdiction any party may be entitled to claim, for itself or its assets, immunity from suit, execution, attachment (whether before or after judgment) or other legal process, each hereby irrevocably agrees not
to claim, and hereby waives, such immunity. Each party waives personal service of process and consents to service of process by certified or registered mail, return receipt 

  
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requested, directed to it at the address last specified for notices hereunder, and such service shall be deemed completed ten (10) calendar days after the same is so mailed. 

Section 13. Maintenance of Records. 
 The Escrow Agent shall maintain accurate records of all transactions made hereunder. Promptly after the termination of this Agreement, and as may from time to time be reasonably requested by the Company
before such termination, the Escrow Agent shall provide the Company with a copy of such records, certified by the Escrow Agent to be a complete and accurate account of all transactions hereunder. The authorized representatives of the Placement Agent
shall also have access to the Escrow Agent’s books and records to the extent relating to its duties hereunder, during normal business hours upon reasonable notice to the Escrow Agent. 

Section 14. Miscellaneous. 
 (a) Nothing in this Agreement is intended or shall confer upon anyone other than the parties any legal or equitable right, remedy or claim. 

(b) The invalidity of any portion of this Agreement shall not affect the validity of the remainder hereof. 

(c) This Agreement is the final integration of the agreement of the parties with respect to the matters covered by it and supersedes any
prior understanding or agreement, oral or written, with respect thereto. 
 (d) The rights and obligations of each party hereto
may not be assigned or delegated to any other person without the written consent of the other parties hereto. Subject to the foregoing, the terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. 
 (e) No printed or other material in any language, including prospectuses,
notices, reports, and promotional material which mentions “The Bank of New York Mellon” by name or the rights, powers, or duties of the Escrow Agent under this Agreement shall be issued by any other parties hereto, or on such
party’s behalf, without the prior written consent of Escrow Agent. 
 [Remainder of Page Intentionally Lefi Blank]

  
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 IN WITNESS WHEREOF, the undersigned have executed this Subscription Escrow Agreement as of
the day and year first above written. 
  

			
	INTERNATIONAL STEM CELL CORPORATION
as Company
		
	By:	 	 /S/ LINH NGUYEN

		
	Name:	 	 LINH NGUYEN

		
	Title:	 	 CFO

	
	CRT CAPITAL GROUP LLC as Placement Agent
		
	By:	 	 /S/ JOHN CALCAGNINI

	Name:	 	 JOHN CALCAGNINI

	Title:	 	 MANAGING DIRECTOR

	
	THE BANK OF NEW YORK MELLON as Escrow Agent
		
	By:	 	 /S/ THOMAS HACKER

	Name:	 	 THOMAS HACKER

	Title:	 	 VICE PRESIDENT

  
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 EXHIBIT A 

Disbursement Notice 
 [Placement Agent Letterhead] 
 [DATE] 
 The Bank of New York Mellon 
 101 Barclay Street, 8W 

New York, New York 10286 
 Facsimile:
(            )              -              

Attention:            
             
 Reference is hereby made to that certain Escrow Agreement, dated
            , by and between The Bank of New York Mellon, a New York banking corporation (the “Escrow Agent”), and CRT Capital Group LLC, a Delaware limited liability
company, (the “Placement Agent”). Capitalized terms used herein have the meanings given to them in the Escrow Agreement. 
 You
are hereby notified that the Placement Agent has accepted Subscription Agreements for the Offering and that all conditions precedent to the closing of the Offering have been met. Accordingly, the Placement Agent hereby directs The Bank of New York
Mellon, as Escrow Agent, to immediately distribute the Proceeds in the Escrow Account in the following manner: 
 [Insert Wire Instructions for
the Company] 
 Sincerely, 
 CRT
Capital Group LLC 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 9Form of Subscription Agreement

 Exhibit 10.31 
 [FINAL VERSION] 
 INTERNATIONAL STEM CELL CORPORATION 

SUBSCRIPTION AGREEMENT 

November [—], 2012 
 International Stem Cell Corporation 
 5950 Priestly Drive 

Carlsbad, CA 92008 
 The
undersigned (the “Purchaser”) hereby confirms its agreement with International Stem Cell Corporation, a Delaware corporation (the “Issuer”), as follows: 

1. This Subscription Agreement, including the Terms and Conditions for Purchase of Shares and Warrants attached hereto as
Annex I (collectively, this “Agreement”) is made as of the date set forth below between the Issuer and the Purchaser. Capitalized terms utilized in this Agreement and not defined herein shall have the meanings ascribed to
them in the Placement Agent Agreement (as defined on Annex I hereto). 
 2. The Issuer has authorized the
sale and issuance to certain purchasers of up to an aggregate of (i) [—] shares (the “Shares”) of common stock, $0.001 par value per share (the “Common Stock”),
of the Issuer, and (ii) warrants (the “Warrants”) to purchase up to [—] shares of Common Stock. Purchasers of the Common Stock will receive a Warrant to purchase one share of
Common Stock for every two shares of Common Stock that they purchase in the offering. The terms and conditions of the Warrants are set forth in a warrant agreement, the form of which is attached as Exhibit A hereto. The Shares issuable upon
exercise of the Warrants are referred to herein as the “Warrant Shares”. The Shares, the Warrants and the Warrant Shares are collectively referred to herein as the “Securities”. 

3. The Issuer and the Purchaser agree that the Purchaser will purchase from the Issuer and the Issuer will issue and sell
to the Purchaser the Shares and Warrants set forth on the signature page below. The Shares are being purchased for a purchase price of $[—] per Share (the “Purchase Price”). No
additional consideration will be paid for the Warrants. The Shares shall be purchased pursuant to the Terms and Conditions for Purchase of Shares and Warrants attached hereto as Annex I and incorporated herein by this reference as if fully
set forth herein. 

 4. The offering and sale of the Securities (the “Offering”)
are being made pursuant to: (a) an effective Registration Statement on Form S-1 (Filing No. 333-184493) (the “Registration Statement”) filed by the Issuer with the Securities and Exchange Commission (the
“Commission”), including the Preliminary Prospectus contained therein (the “Preliminary Prospectus”), and (b) if applicable, certain “free writing prospectuses” (as that term is defined in Rule 405
under the Securities Act of 1933, as amended (the “Securities Act”)), that have been or will be filed, if required, with the Commission and delivered to the Purchaser on or prior to the date hereof (each, an “Issuer Free
Writing Prospectus”), containing certain supplemental information regarding the Securities, the terms of the Offering and the Issuer. 
 5. The Shares purchased by the Purchaser shall be delivered to the Purchaser by crediting the account of the Purchaser’s prime broker (as specified by the Purchaser on the signature page below) with
the Depository Trust Company (“DTC”) through its Deposit/Withdrawal At Custodian (“DWAC”) system. On the Closing Date (as defined on Annex I hereto), the Purchaser’s prime broker shall initiate a DWAC
transaction using its DTC participant identification number. Such DWAC instruction shall indicate the settlement date for the deposit of the Shares, which date shall be provided to the Purchaser by the Placement Agent. Simultaneously with the
delivery to the Issuer by the Escrow Agent of the funds held in escrow pursuant to the Escrow Agreement, the Issuer shall direct Securities Transfer Corporation, the Issuer’s transfer agent (the “Transfer Agent”) to credit the
Purchaser’s account with the Shares pursuant to the information contained in the DWAC. 
 6. The Purchaser
represents that it has received (or otherwise had made available to it by the filing by the Issuer of an electronic version thereof with the Commission) the Prospectus, the documents incorporated by reference therein, and any Issuer Free Writing
Prospectus (collectively, the “Disclosure Package”), prior to or in connection with the receipt of this Agreement. The Purchaser acknowledges that, prior to delivering this Agreement to the Issuer, the Purchaser will have received
certain additional information regarding the Offering, including final pricing information (the “Offering Information”). Such information may be provided to the Purchaser by any means permitted under the Securities Act. 

7. No offer by the Purchaser to buy Shares and Warrants will be accepted and no part of the Purchase Price will be
delivered to the Issuer until the Purchaser has received the Disclosure Package and the Offering Information and the Issuer has accepted such offer by countersigning a copy of this Agreement, and any such offer may be withdrawn or revoked, without
obligation or commitment of any kind, at any time prior to the Issuer (or Placement Agent on behalf of the Issuer) sending (orally, in writing or by electronic mail) notice of its acceptance of such offer. An indication of interest will involve no
obligation or commitment of any kind until the Purchaser has been delivered the Disclosure Package and the Offering Information and this Agreement is accepted and countersigned by or on behalf of the Issuer. The Purchaser understands and agrees that
the Issuer, in its sole discretion, reserves the right to accept or reject this subscription for Shares and Warrants, in whole or in part. 
 [Signature Page Follows] 

  
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 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:            , 2012

	
	Purchaser:
	
	[                            
                                         
       ]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Address:	 	
	  

	  

	  

	
	Name and address of registered holder (if different):
	
	[                            
                                         
       ]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Address:
	  

	  

	  

 Number of Shares and Warrants Purchased 
 Number of Shares: [—] 
 Number of Warrant Shares:
[—]* 
 Purchase Price Per Share: $[—]

 Aggregate Purchase Price: $[—] 

 

	*	The Purchase Price for the Shares includes a Warrant to purchase one share of Common Stock for every two Shares purchased. 

  
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 Delivery of Shares 
 NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT BY THE PURCHASER AND THE ISSUER, THE PURCHASER SHALL: 

 

	 	(I)	DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A DWAC INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH
ACCOUNT OR ACCOUNTS WITH THE SHARES, AND 

  

	 	(II)	REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE SHARES BEING PURCHASED BY THE PURCHASER TO THE FOLLOWING ACCOUNT PURSUANT TO
THE TERMS OF THE ESCROW AGREEMENT: 

 [Insert account information for Escrow Agent] 

IT IS THE PURCHASER’S RESPONSIBILITY TO: (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM THE PROPER ACCOUNT BALANCE IN A TIMELY MANNER AND
(B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC IN A TIMELY MANNER. 
 Prime Broker Delivery Information 

Name of DTC Participant (broker-dealer at which account is 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:      
                                         
                                         
                                       

Tax Information 
 If the Purchaser
is a “U.S. person” he, she or it must complete and sign IRS Form W-9 (or Substitute Form W-9) to certify the Purchaser’s tax identification number. For federal tax purposes, you are considered a “U.S. person” if you are
(1) an individual who is a U.S. citizen or U.S. resident alien, (2) a partnership, corporation, company or association created or organized in the United States or under the laws of the United States, (3) an estate (other than a
foreign estate), or (4) a domestic trust (as defined in U.S. Treasury Regulations section 301.7701-7). A copy of IRS Form W-9 is attached for your convenience as Annex II hereto. 
 If the Purchaser is not a “U.S. person,” complete and sign an applicable IRS Form W-8. IRS Forms W-8 may be obtained at www.irs.gov or by calling 1-800-829-3676. 

Failure to provide a properly completed and signed IRS Form W-9 (or Substitute Form W-9) or a properly completed and signed IRS Form W-8 may result in
backup withholding under federal tax laws on any portion of the Purchase Price which is returned to the Purchaser and may result in a penalty imposed by the IRS. 
 Delivery of Warrants 

  
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 The Warrants purchased by the Purchaser in connection with the purchase of the Shares hereunder shall be
delivered to the Purchaser at the address set forth above within five (5) business days of the Closing Date. 

  
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 Agreed and Accepted 
 this     day of             , 2012: 
  

			
	INTERNATIONAL STEM CELL CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
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 ANNEX I 

TERMS AND CONDITIONS FOR PURCHASE OF SHARES AND WARRANTS 
 Capitalized terms used but not defined on this Annex I shall have the meanings ascribed to such terms in the Subscription Agreement to which this Annex is attached. 

1. Authorization and Sale of the Shares and Warrants. Subject to the terms and conditions of this Agreement, the Issuer has
authorized the sale of the Shares and Warrants. 
 2. Agreement to Sell and Purchase the Shares and Warrants. 

2.1 At the Closing (as defined in Section 3.1), the Issuer will sell to the Purchaser, and the Purchaser will purchase from
the Issuer, upon the terms and conditions set forth herein, the number of Shares and Warrants set forth on the last page of the Agreement to which these Terms and Conditions for Purchase of Shares and Warrants are attached as Annex I (the
“Signature Page”) for the Aggregate Purchase Price set forth on the Signature Page. 
 2.2 The Issuer proposes
to enter into substantially this same form of Subscription Agreement with certain other purchasers (the “Other Purchasers”) and expects to complete sales of Shares and Warrants to them. The Purchaser and the Other Purchasers are
hereinafter sometimes collectively referred to as the “Purchasers,” and this Agreement and the Subscription Agreements executed by the Other Investors are hereinafter sometimes collectively referred to as the
“Agreements.” 
 3. Placement Agent. 

3.1 The Purchaser acknowledges that (a) the Issuer has retained CRT Capital Group, LLC (the “Placement Agent”) to
act as exclusive placement agent in connection with the Offering, (b) the Offering is not being underwritten by the Placement Agent, (c) the Issuer has agreed to pay the Placement Agent a cash fee and warrants to purchase shares of Common
Stock in respect of the sale of the Shares and Warrants to the Purchasers, and (d) the Placement Agent has not been retained to negotiate the Purchase Price of the Shares and Warrants, and that the Purchase Price has been determined by
discussions and arms-length negotiations between the Issuer and the Purchaser. 
 3.2 The Issuer has entered into a Placement
Agent Agreement, dated [—], 2012 (the “Placement Agent Agreement”), with the Placement Agent that contains certain representations and warranties of the Issuer, each of which may be
relied upon by the Purchaser as if fully set forth herein. Without limiting the foregoing, it is specifically agreed that the Purchaser shall be a third party beneficiary of the representations and warranties of the Issuer set forth in the Placement
Agent Agreement. 
 4. Closing and Delivery of the Shares, Warrants and Funds. 

4.1 Closing. The completion of the purchase and sale of the Shares and Warrants (the “Closing”) shall
occur at a place and time (the “Closing Date”) to be specified by the Issuer and the Placement Agent, and of which the Purchasers will be notified in advance by the Placement Agent, in accordance with Rule 15c6-1 promulgated under
the Securities Exchange Act of 1934, as 

  
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amended (the “Exchange Act”). At the Closing: (a) the Issuer shall cause the Transfer Agent to deliver to the Purchaser the number of Shares set forth on the Signature Page
registered in the name of the Purchaser or, if so indicated on the Signature Page, in the name of a nominee designated by the Purchaser, (b) the Issuer shall cause to be delivered to the Purchaser a Warrant to purchase a number of Warrant
Shares as set forth on the signature page and (c) the aggregate purchase price for the Shares and Warrants being purchased by the Purchaser will be delivered by or on behalf of the Purchaser to the Issuer. 

4.2 Conditions to the Obligations of the Parties. 

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

(b) Conditions to the Purchaser’s Obligations. The Purchaser’s obligation to purchase the Shares and Warrants will be
subject to the accuracy of the representations and warranties made by the Issuer, and the fulfillment of those undertakings of the Issuer to be fulfilled prior to the Closing Date, including without limitation, those contained in the Placement Agent
Agreement, and to the condition that the Placement Agent shall not have: (i) terminated the Placement Agent Agreement pursuant to the terms thereof, or (ii) determined that the conditions to closing in the Placement Agent Agreement have
not been satisfied. The Purchaser’s obligations are expressly not conditioned on the purchase by any or all of the Other Purchasers of the Shares and Warrants that they have agreed to purchase from the Issuer, it being understood that there is
no minimum number of Shares and Warrants that the Issuer is required to sell in the Offering. The Purchaser understands and agrees that, in the event the Placement Agent in its sole discretion determines that the conditions to closing in the
Placement Agent Agreement have not been satisfied or if the Placement Agent Agreement may be terminated for any other reason permitted by the Placement Agent Agreement, then the Placement Agent may, but shall not be obligated to, terminate the
Placement Agent Agreement, which shall have the effect of terminating this Subscription Agreement pursuant to Section 15 below. 
 5. Representations, Warranties and Covenants of the Purchaser. 
 The
Purchaser acknowledges, represents and warrants to, and agrees with, the Issuer and the Placement Agent that: 
 5.1 The
Purchaser: (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to, investments in shares presenting an investment decision like that involved in the purchase of the Shares and Warrants,
including investments in securities issued by the Issuer and investments in comparable companies, (b) has answered all questions on the Signature Page and the answers thereto are true and correct as of the date hereof and will be true and
correct as of the Closing Date and (c) in connection with its decision to purchase the number of Shares and Warrants set forth on the Signature Page, has received and is relying only upon the Disclosure Package (including the documents
incorporated by reference therein) and the Offering Information. 

  
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 5.2 The Purchaser has full right, power, authority and capacity to enter into this Agreement
and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (b) this Agreement constitutes a valid and binding obligation of the Purchaser
enforceable against the Purchaser 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, and except as to the enforceability of any rights to indemnification or contribution that may be violative of the public policy underlying any law, rule or
regulation (including any federal or state securities law, rule or regulation). 
 5.3 The Purchaser understands that nothing in
this Agreement, the Disclosure Package, the Prospectus, the Offering Information or any other materials presented to the Purchaser in connection with the purchase and sale of the Shares and Warrants constitutes legal, tax or investment advice. The
Purchaser has consulted such legal, tax and investment advisors and made such investigation as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares. The Purchaser also understands that the
Common Stock is not listed for trading on any securities exchange and that the Issuer is under no obligation to list the Common Stock on any securities exchange. 
 5.4 The Placement Agent is not authorized to make and has not made any representation, disclosure or use of any information in connection with the purchase and sale of the Shares and Warrants, except as
set forth or incorporated by reference in the Prospectus or any Issuer Free Writing Prospectus. 
 5.5 No action has been or
will be taken in any jurisdiction outside the United States by the Issuer or the Placement Agent that would permit an offering of the Shares and Warrants, or possession or distribution of offering materials in connection with the issue of the
Securities in any jurisdiction outside the United States where action for that purpose is required. 
 5.6 Since the date on
which the Placement Agent first contacted the Purchaser about the Offering, the Purchaser has not disclosed any information regarding the Offering to any third parties (other than its legal, accounting and other advisors for the purpose of assessing
an investment in the Shares and Warrants who are bound by agreements or duties of confidentiality) and has not engaged in any purchases or sales involving the securities of the Issuer (including, without limitation, any Short Sales involving the
Issuer’s securities). The Purchaser covenants that it will not engage in any purchases or sales involving the securities of the Issuer (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly
disclosed. The Purchaser agrees that it will not use any of the Securities acquired pursuant to this Agreement to cover any short position in the Common Stock if doing so would be in violation of applicable securities laws. For purposes hereof,
“Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock
pledges, forward sales 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-US broker dealers or foreign regulated brokers. 

  
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 6. Survival of Representations, Warranties and Agreements; Third Party Beneficiary.
Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent, all covenants, agreements, representations and warranties made by the Issuer and the Purchaser herein will survive the execution of this Agreement, the
delivery to the Purchaser of the Shares and Warrants being purchased and the payment therefor. It is specifically agreed that the Placement Agent shall be a third party beneficiary with respect to the representations, warranties and agreements of
the Purchaser in Section 5 hereof. 
 7. Notices. All notices, requests, consents and other communications
hereunder will be in writing, will be mailed (a) if within the domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile or (b) if delivered
from outside the United States, by International Federal Express or facsimile, and (c) will be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered
by nationally recognized overnight carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed and (iv) if delivered by facsimile, upon electronic confirmation of
receipt and will be delivered and addressed as follows: 
 (a) if to the Issuer, to: 

International Stem Cell Corporation 
 5950 Priestly Drive 
 Carlsbad, CA 92008 

Attention: Chief Executive Officer 
 Fax: (            )             -
             
 and 

DLA Piper LLP (US) 
 4365 Executive Drive, Suite 1100 
 San Diego, CA 92121-2133 

Attention: Douglas Rein, Esq. 
 Fax: (858) 638-5043 
 (b) if to the Purchaser, at its address on the
Signature Page hereto, or at such other address or addresses as may have been furnished to the Issuer in writing. 
 8.
Amendments; Waivers. This Agreement may only be amended or modified in writing, signed by each of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant
to benefit. 
 9. Headings. The Section headings herein are for convenience only and shall not affect the construction
hereof. 
 10. Severability. The invalidity or unenforceability of any section, clause or provision of this Agreement
(including any section, clause or provision of this Annex I) shall not affect the validity or enforceability of any other section, clause or provision hereof. If any section, clause or provision of this Agreement is for any reason determined
to be invalid or unenforceable, there shall 

  
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be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 
 11. Governing Law. This Agreement will be governed by, and construed in accordance with, the 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. 
 12. Counterparts. This Agreement may be executed in two
or more 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 one or more counterparts have been signed by each party hereto and delivered
to the other parties. Delivery of a signed counterpart of this Agreement by facsimile or other electronic transmission shall constitute valid and sufficient delivery thereof. The Issuer and the Purchaser acknowledge and agree that the Issuer shall
deliver its counterpart to the Purchaser along with the Prospectus Supplement (or the filing by the Issuer of an electronic version thereof with the Commission). 
 13. Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties to this Agreement with respect to the subject matter hereof and supersedes all prior written
or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. 

14. Confirmation of Sale. The Purchaser acknowledges and agrees that such Purchaser’s receipt of the Issuer’s signed
counterpart to this Agreement, together with the Prospectus (or the filing by the Issuer of an electronic version thereof with the Commission), shall constitute written confirmation of the Issuer’s sale of the Shares to such Purchaser.

 15. Termination. In the event that the Placement Agent 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. 

  
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 ANNEX II 

IRS FORM W-9 

  
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