Document:

exhibit4-2.htm

    EXHIBIT 4.2 

     

    COMMON STOCK PURCHASE AGREEMENT

     

         THIS COMMON STOCK PURCHASE AGREEMENT (“Agreement”) is made and entered
into as of January 4, 2010 (the “Effective Date”), by and between GERON CORPORATION, a Delaware corporation having its
principal place of business at 230 Constitution Drive, Menlo Park, California
94025 (“Geron”), and EXPONENT, INC., a Delaware corporation having its principal
place of business at 149 Commonwealth Drive, Menlo Park, CA 94025 (“Landlord”).

     

    
      	      	A.	      	Geron and
      Landlord are the parties to that certain Lease Agreement dated as of April
      20, 2007 (the “Lease
      Agreement”),
      as extended by the parties pursuant to First Amendment To Lease Agreement
      dated January 4, 2010 (the “First Amendment”), under which Geron has
      agreed to lease certain office space (the “Property”) from Landlord in accordance with the
      terms of the Lease Agreement.
	
            	 
	
            	B.	
            	Pursuant to the
      Lease Agreement and the First Amendment, Geron may pay the aggregate
      rental fee for the Property (the “Rental Fee”) due under the Lease Agreement by
      delivery of shares of Geron’s Common Stock (the “Shares”). The parties have agreed that such
      delivery will be made in two installments of approximately equal value, to
      be made in accordance with the First
Amendment.

    

     

    THE PARTIES AGREE AS
FOLLOWS: 

     

    
      	1.	      	ISSUANCE OF SHARES;
      ADJUSTMENTS.
	 
	 	
            	1.1	      	As payment of the first installment of the Rental Fee, Geron will
      issue and deliver to Landlord certificates for 94,741 Shares. Upon
      issuance and delivery of the certificate(s) for the Shares, all Shares
      shall be duly authorized and validly issued and represent fully paid
      shares of Geron’s Common Stock.
	 
	2.	
            	CLOSING; DELIVERY.
	 
	 	
            	2.1	
            	The consummation of the transaction contemplated by this Agreement
      (the “Closing”) shall be held at such time and place
      as is mutually agreed upon between the parties, but in any event Geron
      shall make commercially reasonable efforts to accomplish the Closing no
      later than five (5) business days after the Effective Date hereof (the
      “Closing Date”). At the Closing, Geron shall deliver
      to Landlord one or more certificates representing all of the Shares, which
      Shares shall be issued in the name of Landlord or its designee and in such
      denominations as Landlord shall specify.
	  
	 	
            	2.2	
            	Geron’s obligations to issue and deliver the stock certificate(s)
      representing the Shares to Landlord at the Closing shall be subject to the
      following conditions, which may be waived by Geron:
	 
	 	
            	 	
            	2.2.1	      	the
      covenants and obligations that Landlord is required to perform or to
      comply with pursuant to this Agreement, at or prior to the Closing, must
      have been duly performed and complied with in all material respects;
      and
	 
	 	
            	 	
            	2.2.2	
            	the
      representations and warranties made by Landlord herein shall be true and
      correct in all material respects as of the Closing Date.
	 
	 	
            	2.3	
            	Landlord’s obligation to accept delivery of the stock
      certificate(s) representing the Shares at the Closing shall be subject to
      the following conditions, any one or more of which may be waived by
      Landlord:
	 
	 	
            	 	
            	2.3.1	
            	the
      covenants and obligations that Geron is required to perform or to comply
      with pursuant to this Agreement, at or prior to the Closing, must have
      been duly performed and complied with in all material
  respects;
	 
	 	
            	 	
            	2.3.2	
            	Geron
      shall have available under its Certificate of Incorporation sufficient
      authorized shares of Common Stock to issue the Shares to Landlord;
      and
	 
	 	
            	 	
            	2.3.3	
            	the
      representations and warranties made by Geron herein shall be true and
      correct in all material respects as of the Closing Date;
	  

    

    

    
    

    
      	3.	      	RESTRICTIONS ON RESALE OF
      SHARES.
	 
	 	
            	3.1	      	Legends. Landlord understands and acknowledges
      that the Shares are not registered under the Securities Act of 1933 (the
      “Act”), and that under the Act and other
      applicable laws Landlord may be required to hold such Shares for an
      indefinite period of time. Each stock certificate representing Shares
      shall bear the following legend:
	  
	 	
            	 	
            	“THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). ANY TRANSFER OF SUCH
      SECURITIES SHALL BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT
      IS IN EFFECT AS TO SUCH TRANSFER OR, IN THE OPINION OF COUNSEL REASONABLY
      ACCEPTABLE TO GERON, SUCH REGISTRATION IS UNNECESSARY FOR SUCH TRANSFER TO
      COMPLY WITH THE ACT. THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE
      TERMS OF THE COMMON STOCK PURCHASE AGREEMENT BY AND BETWEEN GERON AND
      LANDLORD DATED AS OF JANUARY 4, 2010. A COPY OF THE AGREEMENT CAN BE
      OBTAINED FROM THE SECRETARY OF GERON.”
	  
	 	
            	3.2	
            	Limits on Sales. Landlord agrees that if it decides to
      resell some or all of the Shares, it will do so only through orderly sales
      executed through a top tier brokerage house, and in an appropriate manner
      based upon whether the shares are registered or unregistered, i.e., on the Nasdaq National Market or in a
      Rule 144A or Rule 144 compliant transaction. Landlord further agrees that
      it will not engage in short selling with respect to Geron’s Common
      Stock.
	  
	 	
            	3.3	
            	Removal of Legends. Any legend endorsed on a certificate
      evidencing the Shares shall be removed, and Geron shall issue a
      certificate without such legend to the holder of such Shares, if such
      Shares are being sold pursuant to an effective registration statement
      under the Act or pursuant to Rule 144 promulgated thereunder, and the
      purchaser of Shares so sold may immediately resell such Shares without
      restriction and without registration; provided, however, that in the case
      of a sale pursuant to Rule 144, such holder of Shares shall provide such
      information as is reasonably requested by Geron to ensure that such Shares
      may be sold in reliance on Rule 144.
	  
	 	
            	3.4	
            	Further Limitations. Geron shall not be required (i) to
      transfer on its books any Shares that have been sold or otherwise
      transferred in violation of any of the provisions of this Agreement or
      applicable securities laws; or (ii) to treat as owner of such Shares or to
      accord the right to vote or pay dividends to any purchaser or other
      transferee to whom such Shares shall have been so transferred in violation
      of any of the provisions of this Agreement or applicable securities
      laws.
	 
	4.	
            	REGISTRATION RIGHTS
	 
	 	
            	4.1	
            	Geron
      agrees to make commercially reasonable efforts to file with the Securities
      and Exchange Commission (the “Commission”), within ten (10) business days after
      the Closing Date, a registration statement under the Act (the
      “Registration
      Statement”),
      on Form S-3 or other appropriate form, so as to permit a non-underwritten
      public offering and resale of the Shares under the Act by Landlord. Geron
      will exercise commercially reasonable efforts to cause the form of the
      Registration Statement to comply with all applicable requirements of the
      Act and the regulations of the Commission thereunder. Geron agrees to
      diligently pursue making the Registration Statement effective. Geron will
      make commercially reasonable efforts to notify Landlord of the
      effectiveness of the Registration Statement within one (1) business day of
      receiving notice from the Commission declaring the Registration Statement
      effective.
	  
	 	
            	4.2	
            	Geron
      will make commercially reasonable efforts to maintain the Registration
      Statement and any post-effective amendment thereto filed under this
      Section 4 effective under the Act until the earliest of (i) the date that
      none of the Shares covered by such Registration Statement are issued and
      outstanding, (ii) the date that all of the Shares have been sold pursuant
      to such Registration Statement, (iii) the date that all Shares have been
      otherwise transferred to persons who may trade such Shares without
      restriction under the Act, and Geron has delivered a new certificate or
      other evidence of ownership for such securities not bearing a restrictive
      legend, or (iv) the date all Shares may be sold at any time, without
      volume or manner of sale limitations, pursuant to Rule 144 or any similar
      provision then in effect under the Act, in the opinion of counsel to
      Geron, which counsel shall be reasonably acceptable to
  Landlord.
	 

    

    

    
    

    
      	         	4.3	      	Geron,
      at its expense, shall furnish to Landlord with respect to the Shares
      registered under the Registration Statement such reasonable number of
      copies of the Registration Statement, prospectuses and preliminary
      prospectuses in conformity with the requirements of the Act and such other
      documents as Landlord may reasonably request, in order to facilitate the
      public sale or other disposition of all or any of the Shares by Landlord,
      provided, however, that the obligation of Geron to deliver copies of
      prospectuses or preliminary prospectuses to Landlord shall be subject to
      the receipt by Geron of reasonable assurances from Landlord that Landlord
      will comply with the applicable provisions of the Act and of such other
      securities or blue sky laws as may be applicable in connection with any
      use of such prospectuses or preliminary prospectuses.
	
            	 
	
            	4.4	
            	All
      fees, disbursements and out-of-pocket expenses and costs incurred by Geron
      in connection with the preparation and filing of the Registration
      Statement under Section 4.1 and in complying with applicable securities
      and Blue Sky laws (including, without limitation, all attorneys' fees of
      Geron) shall be borne by Geron. Landlord shall bear the cost of fees and
      expenses of Landlord’s counsel.
	
            	 
	
            	4.5	
            	Geron
      will advise Landlord promptly after it shall receive notice or obtain
      knowledge of the issuance of any stop order by the Commission delaying or
      suspending the effectiveness of the Registration Statement or of the
      initiation of any proceeding for that purpose, and Geron will use its
      commercially reasonable efforts to prevent the issuance of any stop order
      or to obtain its withdrawal as promptly as possible if such stop order
      should be issued. If any event or circumstance occurs that causes the
      Registration Statement or any prospectus or supplement therein to not
      comply with the Act or the rules and regulations issued thereunder, Geron
      shall promptly notify Landlord and shall make commercially reasonable
      efforts to promptly amend or supplement the Registration Statement and/or
      prospectus so as to bring it into compliance with the Act and the rules
      and regulations thereunder. Upon such notification by Geron of the
      foregoing, Landlord will promptly suspend its offer and sale of Shares
      until Geron has notified Landlord that it has prepared and filed with the
      Commission a supplement or amendment to the Registration Statement and has
      been notified of the effectiveness of the Registration Statement, as
      supplemented or amended.
	
            	 
	
            	4.6	
            	With a
      view to making available to Landlord the benefits of Rule 144 (or its
      successor rule) and any other rule or regulation of the Commission that
      may at the time permit Landlord to sell the Shares to the public without
      registration, Geron covenants and agrees to: (i) make and keep public
      information available, as those terms are understood and defined in Rule
      144, until the earliest of (A) such date as all of the Shares may be
      resold pursuant to Rule 144 or any other rule of similar effect or (B)
      such date as all of the Shares shall have been resold; and (ii) file with
      the Commission in a timely manner all reports and other documents required
      of Geron under the Act and under the Securities Exchange Act of 1934 (the
      “Exchange Act”), as amended.
	
            	 
	
            	4.7	
            	Landlord will cooperate with Geron in all respects in connection
      with this Agreement, including timely supplying all information reasonably
      requested by Geron (which shall include all information regarding Landlord
      and proposed manner of sale of the Shares required to be disclosed in any
      Registration Statement) and executing and returning all documents
      reasonably requested in connection with the registration and sale of the
      Shares. Nothing in this Agreement shall obligate Landlord to consent to be
      named as an underwriter in any Registration Statement.
	
            	 
	
            	4.8	
            	Geron
      shall make commercially reasonable efforts to prepare and file with the
      SEC such amendments and supplements to the Registration Statement as may
      be necessary to comply with the provisions of the Act with respect to the
      disposition of all Shares covered by the Registration Statement; provided,
      however, that before filing a registration statement or any amendments or
      supplements thereto, or comparable statements under securities or blue sky
      laws of any jurisdiction, Geron will furnish to one counsel to be
      designated by Landlord, copies of all such documents proposed to be
      filed.
	
            	  

    

    

    
    

    
      	5.	      	INDEMNIFICATION.
	 
	 	
            	5.1	      	Geron
      agrees to indemnify and hold harmless Landlord (and each person, if any,
      who controls Landlord within the meaning of Section 15 of the Act, and
      each officer and director of Landlord) against any and all losses, claims,
      damages or liabilities (or actions or proceedings in respect thereof),
      joint or several, directly or indirectly based upon or arising out of (i)
      any untrue statement or alleged untrue statement of any material fact
      contained in the Registration Statement, any preliminary prospectus, final
      prospectus or summary prospectus contained therein or used in connection
      with the offering of the Shares, or any amendment or supplement thereto,
      or (ii) any omission or alleged omission to state a material fact required
      to be stated therein or necessary to make the statements therein not
      misleading; and Geron will reimburse each such indemnified party for any
      legal or any other expenses reasonably incurred by them in connection with
      investigating, preparing, pursuing or defending any such loss, claim,
      damage, liability, action or proceeding, except insofar as any such loss,
      claim, damage, liability, action, proceeding or expense arises out of or
      is based upon (A) an untrue statement or alleged untrue statement or
      omission or alleged omission made in the Registration Statement, any such
      preliminary prospectus, final prospectus, summary prospectus, amendment or
      supplement in reliance upon and in conformity with written information
      furnished to Geron by Landlord or such other person expressly for use in
      the preparation thereof, (B) the failure of Landlord to comply with its
      covenants and agreements contained in Sections 7.1 or 7.5.3 hereof or (C)
      any misstatement or omission in any prospectus that is corrected in any
      subsequent prospectus that was delivered to Landlord prior to the
      pertinent sale or sales by Landlord. Such indemnity shall remain in full
      force and effect, regardless of any investigation made by such indemnified
      party and shall survive the transfer of the Shares by
  Landlord.
	 
	 	
            	5.2	
            	Landlord agrees to indemnify and hold harmless Geron (and each
      person, if any, who controls Geron within the meaning of Section 15 of the
      Act, and each officer and director of Geron) from and against losses,
      claims, damages or liabilities (or actions or proceedings in respect
      thereof), joint or several, directly or indirectly based upon or arising
      out of, (i) any failure of Landlord to comply with the covenants and
      agreements contained in Sections 7.1 and 7.5.3 hereof or (ii) any untrue
      statement of a material fact contained in the Registration Statement or
      any omission of a material fact required to be stated in the Registration
      Statement or necessary in order to make the statements in the Registration
      Statement not misleading if such untrue statement or omission was made in
      reliance upon and in conformity with written information furnished to
      Geron by or on behalf of Landlord specifically for use in preparation of
      the Registration Statement; provided, however, that Landlord shall not be
      liable in any such case for (A) any untrue statement or omission in the
      Registration Statement, prospectus, or other such document which statement
      is corrected by Landlord and delivered to Geron prior to the sale from
      which such loss occurred, (B) any untrue statement or omission in any
      prospectus which is corrected by Landlord in any subsequent prospectus, or
      supplement or amendment thereto, and delivered to Geron prior to the sale
      or sales from which a loss or liability arose, or (C) any failure by Geron
      to fulfill any of its obligations under Section 5.1 hereof.
	  

    

    

    
    

    
      	
            	
            	5.3	 	Promptly after receipt by any
      indemnified person of a notice of a claim or the beginning of any action
      in respect of which indemnity is to be sought against an indemnifying
      person pursuant to this Section 5, such indemnified person shall notify
      the indemnifying person in writing of such claim or of the commencement of
      such action, but the omission to so notify the indemnifying party will not
      relieve it from any liability which it may have to any indemnified party
      under this Section 5 (except to the extent that such omission materially
      and adversely affects the indemnifying party’s ability to defend such
      action) or from any liability otherwise than under this Section 5. Subject
      to the provisions hereinafter stated, in case any such action shall be
      brought against an indemnified person, the indemnifying person shall be
      entitled to participate therein, and, to the extent that it shall elect by
      written notice delivered to the indemnified party promptly after receiving
      the aforesaid notice from such indemnified party, shall be entitled to
      assume the defense thereof, with counsel reasonably satisfactory to such
      indemnified person. After notice from the indemnifying person to such
      indemnified person of its election to assume the defense thereof, such
      indemnifying person shall not be liable to such indemnified person for any
      legal expense subsequently incurred by such indemnified person in
      connection with the defense thereof, provided, however, that if there
      exists or shall exist a conflict of interest that would make
      inappropriate, in the reasonable opinion of counsel to the indemnified
      person, for the same counsel to represent both the indemnified person and
      such indemnifying person or any affiliate or associate thereof, the
      indemnified person shall be entitled to retain its own counsel at the
      expense of such indemnifying person; provided, however, that no
      indemnifying person shall be responsible for the fees and expenses of more
      than one separate counsel (together with appropriate local counsel) for
      all indemnified parties. In no event shall any indemnifying person be
      liable in respect to any amounts paid in settlement of any action unless
      the indemnifying person shall have approved the terms of such settlement.
      No indemnifying person shall, without the prior written consent of the
      indemnified person, effect any settlement of any pending or threatened
      proceeding in respect of which any indemnified person is or could have
      been a party and indemnification could have been sought hereunder by such
      indemnified person, unless such settlement includes an unconditional
      release of such indemnified person from all liability on claims that are
      the subject matter of such proceeding.
	  
	 	
            	5.5	      	The
      provisions of this Section 5 shall survive the termination of this
      Agreement.
	 
	6.	      	REPRESENTATIONS AND COVENANTS OF
      GERON.
	 
	 	
            	Geron hereby represents, warrants and covenants to Landlord as
      follows:
	 
	 	
            	6.1	
            	Organization, Good Standing and
      Qualification. Geron
      is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has all requisite corporate
      power and authority to carry on its business as now conducted and as
      presently proposed to be conducted. Geron is duly qualified to transact
      business and is in good standing as a foreign corporation in each
      jurisdiction in which the failure to so qualify would have a material
      adverse effect on its business or properties.
	 
	 	
            	6.2	
            	Authorization. All corporate action on the part of
      Geron, its officers, directors and stockholders necessary for the
      authorization, execution and delivery of this Agreement, the performance
      of all obligations of Geron hereunder and the authorization, issuance and
      delivery of the Shares has been taken or will be taken prior to the
      Closing, and this Agreement, when executed and delivered, will constitute
      the valid and legally binding obligations of Geron, enforceable against
      Geron in accordance with its terms, except as limited by applicable
      bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
      and other laws of general application affecting enforcement of creditors’
      rights generally, as limited by laws relating to the availability of
      specific performance, injunctive relief or other equitable remedies. The
      execution and performance by Geron of its obligations under this Agreement
      does not conflict with (a) the charter or bylaws of Geron or (b) any law,
      rule or regulation applicable to Geron which would have a material adverse
      effect on Geron’s performance of its obligations hereunder, and to the
      best of Geron’s knowledge as of the Effective Date, does not cause a
      material breach under or default of any material contract or agreement to
      which Geron is a party or by which any of its material properties or
      assets are bound.
	 
	 	
            	6.3	
            	Valid Issuance of Common Stock.
      The Shares, when
      issued, sold and delivered in accordance with the terms hereof for the
      consideration expressed herein, will be duly and validly authorized and
      issued, fully paid and nonassessable and free of restrictions on transfer
      other than restrictions on transfer under this Agreement and applicable
      state and federal securities laws.
	 
	 	
            	6.4	
            	Legal Proceedings and Orders.
      There is no action,
      suit, proceeding or investigation pending or threatened against Geron that
      questions the validity of this Agreement or the right of Geron to enter
      into this Agreement or to consummate the transactions contemplated hereby,
      nor is Geron aware of any basis for any of the forgoing. Geron is neither
      a party to nor subject to the provisions of any order, writ, injunction,
      judgment or decree of any court or government agency or instrumentality
      that would affect the ability of Geron to enter into this Agreement or to
      consummate the transactions contemplated hereby.
	 

    

    

    
    

    
      	 	
            	6.5	      	Securities Compliance.
      To the best of its
      knowledge as of the Effective Date of this Agreement, Geron is in material
      compliance with all applicable requirements of the Act, and the rules of
      the Nasdaq Global Market, and has made all filings required to be made by
      it with the Commission.
	 
	7.	      	REPRESENTATIONS AND ACKNOWLEDGMENTS OF
      LANDLORD.
	 
	 	
            	Landlord hereby represents, warrants, acknowledges and agrees
      that:
	 
	 	
            	7.1	
            	Investment. Landlord is acquiring the Shares for
      Landlord’s own account, and not directly or indirectly for the account of
      any other person. Landlord is acquiring the Shares for investment and not
      with a view to distribution or resale thereof, except in compliance with
      the Act and any applicable state law regulating securities.
	 
	 	
            	7.2	
            	Access to Information.
      Landlord has
      consulted with its own attorney, accountant, or investment advisor as
      Landlord has deemed advisable with respect to the investment and has
      determined its suitability for Landlord. Landlord has had the opportunity
      to ask questions of, and to receive answers from, appropriate executive
      officers of Geron with respect to the terms and conditions of the
      transactions contemplated hereby and with respect to the business,
      affairs, financial condition and results of operations of Geron. Landlord
      has had access to such financial and other information as is necessary in
      order for Landlord to make a fully informed decision as to investment in
      Geron, and has had the opportunity to obtain any additional information
      necessary to verify any of such information to which Landlord has had
      access. Landlord acknowledges that neither Geron nor any of its officers,
      directors, employees, agents, representatives, or advisors has made any
      representation or warranty other than those specifically expressed
      herein.
	  
	 	
            	7.3	
            	Business and Financial Expertise.
      Landlord further
      represents and warrants that it has such business or financial expertise
      as to be able to evaluate its investment in Geron and purchase of the
      Shares.
	 
	 	
            	7.4	
            	Speculative Investment.
      Landlord
      acknowledges that the investment in Geron represented by the Shares is
      highly speculative in nature and is subject to a high degree of risk of
      loss in whole or in part; the amount of such investment is within
      Landlord’s risk capital means and is not so great in relation to
      Landlord’s total financial resources as would jeopardize the personal
      financial needs of Landlord in the event such investment were lost in
      whole or in part.
	 
	 	
            	7.5	
            	Unregistered Securities.
      Landlord
      acknowledges that:
	 
	 	
            	 	
            	7.5.1	      	Landlord must
      bear the economic risk of investment for an indefinite period of time
      because the Shares have not been registered under the Act and therefore
      cannot and will not be sold unless they are subsequently registered under
      the Act or an exemption from such registration is available. Geron has
      made no agreements, covenants or undertakings whatsoever to register any
      of the Shares under the Act, except as provided in Section 4 above. Geron
      has made no representations, warranties or covenants whatsoever as to
      whether any exemption from the Act, including, without limitation, any
      exemption for limited sales in routine brokers’ transactions pursuant to
      Rule 144 under the Act, will become available and any such exemption
      pursuant to Rule 144, if available at all, will not be available unless:
      (i) a public trading market then exists in Geron’s common stock, (ii)
      Geron has complied with the information requirements of Rule 144, and
      (iii) all other terms and conditions of Rule 144 have been
      satisfied.
	  

    

    

    
    

    
      	
            	7.5.2	      	Transfer of the Shares has not been registered or qualified under
      any applicable state law regulating securities and, therefore, the Shares
      cannot and will not be sold unless they are subsequently registered or
      qualified under any such act or an exemption therefrom is available. Geron
      has made no agreements, covenants or undertakings whatsoever to register
      or qualify any of the Shares under any such act except as provided in
      Section 4 above. Geron has made no representations, warranties or
      covenants whatsoever as to whether any exemption from any such act will
      become available.
	
            	 
	                  	7.5.3	
            	Landlord hereby certifies that it is an “Accredited
      Investor” as
      that term is defined in Rule 501 under the Act.
	
            	  

    

    
      	 	
            	7.6	      	Authorization. Landlord has full right, power,
      authority and capacity to enter into this Agreement and to consummate the
      transactions contemplated hereby and thereby and has taken all necessary
      action to authorize the execution, delivery and performance of this
      Agreement. Upon execution and delivery, this Agreement will constitute a
      valid and binding obligation of Landlord enforceable against Landlord in
      accordance with its terms, except as such enforceability may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
      transfer, liquidation or similar laws relating to, or affecting generally,
      the enforcement of creditor's rights and remedies or by other equitable
      principles of general application from time to time in
effect.
	 
	8.	      	TAX ADVICE. Landlord acknowledges that Landlord has
      not relied and will not rely upon Geron or Geron’s counsel with respect to
      any tax consequences related to the ownership, purchase, or disposition of
      the Shares. Landlord assumes full responsibility for all such consequences
      and for the preparation and filing of all tax returns and elections which
      may or must be filed in connection with the Shares.
	 
	9.	
            	NOTICES. Any notice, demand or other
      communication required or permitted hereunder shall be in writing and
      shall be deemed to have been duly given on the date of delivery if
      delivered personally or by facsimile, or one day, not including Saturdays,
      Sundays, or national holidays, after sending if sent by national overnight
      delivery service, or five days, not including Saturdays, Sundays, or
      national holidays, after mailing if mailed by first class United States
      mail, certified or registered with return receipt requested, postage
      prepaid, and addressed as follows:
	 

    

    
      	To Geron at:	Geron Corporation
	  	230 Constitution Drive
	  	Menlo Park, California
94025
	  	Attention: Senior Director,
    Legal
	  	Telephone:	(650) 473-7700
	  	Facsimile:	(650) 473-7750
	  
	To Landlord at:	Exponent, Inc.	  
	  	149 Commonwealth Drive
	  	Menlo Park, CA 94025
	  	Attention: Chief Financial
    Officer
	  	Telephone:	650-326-9400
	  	Facsimile:	650-326-8072

    

    
      	10.	      	BINDING EFFECT. This Agreement shall be binding upon the
      heirs, legal representatives and successors of Geron and of Landlord;
      provided, however, that Landlord may not assign any rights or obligations
      under this Agreement. Geron may not assign any of its rights or
      obligations under this Agreement.
	 
	11.	
            	GOVERNING LAW. This Agreement shall be governed by and
      construed in accordance with the laws of the State of
  California.
	 
	12.	
            	INVALID PROVISIONS. In the event that any provision of this
      Agreement is found to be invalid or otherwise unenforceable by a court or
      other tribunal of competent jurisdiction, such invalidity or
      unenforceability shall not be construed as rendering any other provision
      contained herein invalid or unenforceable, and all such other provisions
      shall be given full force and effect to the same extent as though the
      invalid and unenforceable provision was not contained herein.
	  

    

    

    
    

    
      	13.	      	COUNTERPARTS. This Agreement may be executed in any
      number of identical counterparts, each of which shall be deemed an
      original, but all of which together shall constitute one and the same
      instrument.
	 
	14.	
            	AMENDMENTS. This Agreement or any provision hereof
      may be changed, waived, or terminated only by a statement in writing
      signed by the party against whom such change, waiver or termination is
      sought to be enforced.
	 
	15.	
            	FUTURE COOPERATION. Each of the parties hereto agrees to
      cooperate at all times from and after the date hereof with respect to all
      of the matters described herein, and to execute such further assignments,
      releases, assumptions, amendments of the Agreement, notifications and
      other documents as may be reasonably requested for the purpose of giving
      effect to, or evidencing or giving notice of, the transactions
      contemplated by this Agreement.
	 
	16.	
            	ENTIRE AGREEMENT. This Agreement and the Lease Agreement,
      as amended by the First Amendment, constitute the entire agreement of the
      parties pertaining to the Shares and supersede all prior and
      contemporaneous agreements, representations, and understandings of the
      parties with respect thereto.

    

     

    *REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK* 

     

    *SIGNATURES FOLLOW*

     

    

    
    

         IN WITNESS WHEREOF, the parties hereto have executed this Common Stock
Purchase Agreement as of the date first above written. 

     

    
      	Geron
      Corporation
	   
	   /s/ David
      L. Greenwood
	By:	David L. Greenwood
	Title:	Executive Vice President and Chief
	  	Financial Officer
	   
	Landlord  
	   
	   /s/ Richard
      L. Schlenker
	By:	Richard L. Schlenker
	Title:     	Chief Financial Officer and Corporate
	  	Secretaryf8k123109ex4i_clearlite.htm

    Exhibit 4.1

     

     

    
      NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

      

      
        	 
      	
                Right
      to Purchase ______ shares of Common Stock of Clear-Lite Holdings, Inc.
      (subject to adjustment as provided
herein)

              

      

       

      FORM OF

      CLASS
A COMMON STOCK PURCHASE WARRANT

      

      
        	
                No.
      A-003

              	
                Issue
      Date:   December
      ___, 2009

              

      

       

      CLEAR-LITE
HOLDINGS, INC., a corporation organized under the laws of the State of Nevada
(the “Company”), hereby certifies that, for value received,
_________________________, or its assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company at any time after the
Issue Date until 5:00 p.m., E.S.T on the fifth anniversary of the Issue Date
(the “Expiration Date”), up to __________ fully paid and nonassessable shares of
Common Stock at a per share purchase price of $0.30.  The
aforedescribed purchase price per share, as adjusted from time to time as herein
provided, is referred to herein as the “Purchase Price.”  The number
and character of such shares of Common Stock and the Purchase Price are subject
to adjustment as provided herein.  The Company may reduce the Purchase
Price for some or all of the Warrants, temporarily or permanently, provided such
reduction is made as to all outstanding Warrants for all Holders of such
Warrants.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in that certain Subscription Agreement (the
“Subscription Agreement”), dated as of December ___, 2009, entered into by
the Company and the Holder.

      

      As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

       

      (a)           The
term “Company” shall mean Clear-Lite Holdings, Inc., a Nevada corporation, and
any corporation which shall succeed or assume the obligations of Clear-Lite
Holdings, Inc. hereunder.

       

      (b)           The
term “Common Stock” includes (i) the Company's Common Stock, $0.001 par
value per share, as authorized on the date of the Subscription Agreement, and
(ii) any other securities into which or for which any of the securities
described in (i) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or
otherwise.

       

      (c)           The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which the
holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to
Section 4 herein or otherwise.

       

      (d)           The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.           Exercise of
Warrant.

       

      1.1.           Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder hereof shall be entitled to receive,
upon exercise of this Warrant in whole in accordance with the terms of
subsection 1.2 or upon exercise of this Warrant in part in accordance with
subsection 1.3, shares of Common Stock of the Company, subject to
adjustment pursuant to Section 4.

       

      1.2.           Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery of an original or facsimile copy of the form of subscription
attached as Exhibit A hereto (the “Subscription Form”) duly executed by
such Holder and delivery within two days thereafter of payment, in cash, wire
transfer or by certified or official bank check payable to the order of the
Company, in the amount obtained by multiplying the number of shares of Common
Stock for which this Warrant is then exercisable by the Purchase Price then in
effect.  The original Warrant is not required to be surrendered to the
Company until it has been fully exercised.

       

      1.3.           Partial
Exercise.  This Warrant may be exercised in part (but not for a
fractional share) by delivery of a Subscription Form in the manner and at the
place provided in subsection 1.2 except that the amount payable by the
Holder on such partial exercise shall be the amount obtained by multiplying
(a) the number of whole shares of Common Stock designated by the Holder in
the Subscription Form by (b) the Purchase Price then in
effect.  On any such partial exercise provided the Holder has
surrendered the original Warrant, the Company, at its expense, will forthwith
issue and deliver to or upon the order of the Holder hereof a new Warrant of
like tenor, in the name of the Holder hereof or as such Holder (upon payment by
such Holder of any applicable transfer taxes) may request, the whole number of
shares of Common Stock for which such Warrant may still be
exercised.

       

      1.4.           Fair Market Value.
Fair Market Value of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean:

       

      (a)            If
the Company's Common Stock is traded on an exchange or is quoted on the NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange or the NYSE Amex Equities, then the average of the closing
sale prices of the Common Stock for the five (5) Trading Days immediately prior
to (but not including) the Determination Date;

       

      (b)          If the
Company's Common Stock is not traded on an exchange or on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
Stock Exchange or the NYSE Amex Equities, but is traded on the OTC Bulletin
Board or in the over-the-counter market or Pink Sheets, then the average of the
closing bid and ask prices reported for the five (5) Trading Days immediately
prior to (but not including) the Determination Date;

       

      (c)           Except
as provided in clause (d) below and Section 3.1, if the Company's Common
Stock is not publicly traded, then as the Holder and the Company agree, or in
the absence of such an agreement, by arbitration in accordance with the rules
then standing of the American Arbitration Association, before a single
arbitrator to be chosen from a panel of persons qualified by education and
training to pass on the matter to be decided; or

       

      (d)           If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company's charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of all of the Warrants are outstanding at the
Determination Date.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      1.5.           Company
Acknowledgment. The Company will, at the time of the exercise of the
Warrant, upon the request of the Holder hereof, acknowledge in writing its
continuing obligation to afford to such Holder any rights to which such Holder
shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such Holder any such rights.

       

      1.6.           Delivery of Stock
Certificates, etc. on Exercise. The Company agrees that, provided the
full purchase price listed in the Subscription Form is received as specified in
Section 1.2, the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder hereof as the record owner of such
shares as of the close of business on the date on which delivery of a
Subscription Form shall have occurred and payment made for such shares as
aforesaid. As soon as practicable after the exercise of this Warrant in full or
in part, and in any event within three (3) business days thereafter (“Warrant
Share Delivery Date”), the Company at its expense (including the payment by it
of any applicable issue taxes) will cause to be issued in the name of and
delivered to the Holder hereof, or as such Holder (upon payment by such Holder
of any applicable transfer taxes) may direct in compliance with applicable
securities laws, a certificate or certificates for the number of duly and
validly issued, fully paid and non-assessable shares of Common Stock (or Other
Securities) to which such Holder shall be entitled on such exercise, plus, in
lieu of any fractional share to which such Holder would otherwise be entitled,
cash equal to such fraction multiplied by the then Fair Market Value of one full
share of Common Stock, together with any other stock or other securities and
property (including cash, where applicable) to which such Holder is entitled
upon such exercise pursuant to Section 1 or otherwise.  The
Company understands that a delay in the delivery of the Warrant Shares after the
Warrant Share Delivery Date could result in economic loss to the
Holder.  As compensation to the Holder for such loss, the Company
agrees to pay (as liquidated damages and not as a penalty) to the Holder for
late issuance of Warrant Shares upon exercise of this Warrant the proportionate
amount of $100 per business day after the Warrant Share Delivery Date for each
$10,000 of Purchase Price of Warrant Shares for which this Warrant is exercised
which are not timely delivered.  The Company shall pay any payments
incurred under this Section in immediately available funds upon
demand.  Furthermore, in addition to any other remedies which may be
available to the Holder, in the event that the Company fails for any reason to
effect delivery of the Warrant Shares by the Warrant Share Delivery Date, the
Holder may revoke all or part of the relevant Warrant exercise by delivery of a
notice to such effect to the Company, whereupon the Company and the Holder shall
each be restored to their respective positions immediately prior to the exercise
of the relevant portion of this Warrant, except that the liquidated damages
described above shall be payable through the date notice of revocation or
rescission is given to the Company.

       

      1.7.           Buy-In.   In
addition to any other rights available to the Holder, if the Company fails to
deliver to a Holder the Warrant Shares as required pursuant to this Warrant,
within seven (7) business days after the Warrant Share Delivery Date and the
Holder or a broker on the Holder’s behalf, purchases (in an open market
transaction or otherwise) shares of common stock to deliver in satisfaction of a
sale by such Holder of the Warrant Shares which the Holder was entitled to
receive from the Company (a “Buy-In”), then the Company shall pay in cash to the
Holder (in addition to any remedies available to or elected by the Holder) the
amount by which (A) the Holder's total purchase price (including brokerage
commissions, if any) for the shares of common stock so purchased exceeds (B) the
aggregate Purchase Price of the Warrant Shares required to have been delivered
together with interest thereon at a rate of 15% per annum, accruing until such
amount and any accrued interest thereon is paid in full (which amount shall be
paid as liquidated damages and not as a penalty).  For example, if a
Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to $10,000 of Purchase Price of Warrant Shares to
have been received upon exercise of this Warrant, the Company shall be required
to pay the Holder $1,000, plus interest. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the
Buy-In.

       

      2.           Cashless
Exercise.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (a)           If
a registration statement (as described in the Subscription Agreement) is
effective and the Holder may sell its shares of Common Stock upon exercise
hereof, this Warrant may be exercisable in whole or in part for cash only as set
forth in Section 1 above.  If no such registration statement is
available, then commencing six months after the Closing Date, payment upon
exercise may be made at the option of the Holder either in (i) cash, wire
transfer or by certified or official bank check payable to the order of the
Company equal to the applicable aggregate Purchase Price, (ii) by delivery of
Common Stock issuable upon exercise of the Warrants in accordance with
Section (b) below or (iii) by a combination of any of the
foregoing methods, for the number of Common Stock specified in such form (as
such exercise number shall be adjusted to reflect any adjustment in the total
number of shares of Common Stock issuable to the holder per the terms of this
Warrant) and the holder shall thereupon be entitled to receive the number of
duly authorized, validly issued, fully-paid and non-assessable shares of Common
Stock (or Other Securities) determined as provided herein.

       

      (b)           Subject
to the provisions herein to the contrary, if the Fair Market Value of one share
of Common Stock is greater than the Purchase Price (at the date of calculation
as set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by delivery of a properly endorsed
Subscription Form delivered to the Company by any means described in Section 13,
in which event the Company shall issue to the holder a number of shares of
Common Stock computed using the following formula:

       

      X=Y (A-B)

                A

       

      
        
          	
                   
      Where    

                	
                  X=

                	
                  the
      number of shares of Common Stock to be issued to the
  holder

                

        

         

      

      
        	
                 
      

              	
                Y=

              	
                the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a portion of the Warrant is being exercised, the portion of the Warrant
      being exercised (at the date of such
  calculation)

              

      

       

      
        	
                 
      

              	
                A=

              	
                Fair
      Market Value

              

      

       

      
        	
                 
      

              	
                B=

              	
                Purchase
      Price (as adjusted to the date of such
  calculation)

              

      

       

      For
purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired
by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the
Subscription Agreement.

       

      3.           Adjustment for
Reorganization, Consolidation, Merger, etc.

       

      3.1.           Fundamental Transaction. 
If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or  consolidation  of the Company with
or into another entity, (B) the Company effects any sale of all or
substantially all of its assets in one or
a series of related transactions,  (C)
any tender offer or exchange offer (whether by the
Company or another entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their
shares for other securities, cash or property, (D) the Company
consummates a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, or spin-off) with one or
more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the 

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

        -continued-

         

        “beneficial
owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
50% of the aggregate Common Stock of the Company, or (F) 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 (in any such case, a
“Fundamental  Transaction”), then, upon
any subsequent exercise of this Warrant, the Holder shall have the
right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder, (a) upon
exercise of this Warrant, the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable upon or as a result of
such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is
acquired in (1) a transaction where the consideration paid to the holders
of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as
defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a
person or entity not traded on a national securities exchange, the Nasdaq Global
Select Market, the Nasdaq Global Market or the Nasdaq Capital
Market, cash equal to the Black-Scholes Value. 
For purposes of any such exercise, the determination of the
Purchase Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such fundamental Transaction, and the Company shall
apportion the Purchase Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of
the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a
Fundamental Transaction, then the Holder shall be given the same choice as to
the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.  To the extent necessary to
effectuate the foregoing provisions, any successor to the Company or
surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with
the foregoing provisions and evidencing the
Holder's right to exercise such warrant into Alternate
Consideration.  The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of
this Section 3.1 and insuring that this Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.  “Black-Scholes
Value” shall be determined in accordance with the Black-Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per
share of Common Stock equal to the VWAP of the Common Stock for the Trading Day
immediately preceding the date of consummation of the applicable Fundamental
Transaction, (ii) 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 the date of
such request and (iii) an expected volatility equal to the 100 day volatility
obtained from the HVT function on Bloomberg L.P. determined as of the Trading
Day immediately following the public announcement of the applicable Fundamental
Transaction.

      

      

      3.2.           Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this
Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the Other Securities and property receivable
on the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of any Other
Securities, including, in the case of any such transfer, the person acquiring
all or substantially all of the properties or assets of the Company, whether or
not such person shall have expressly assumed the terms of this Warrant as
provided in Section 4.  In the event this Warrant does not
continue in full force and effect after the consummation of the transaction
described in this Section 3, then only in such event will the Company's
securities and property (including cash, where applicable) receivable by the
Holder of the Warrants be delivered to the Trustee as contemplated by
Section 3.2.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      3.3           Share
Issuance.  Until the Expiration Date, if the Company shall
issue any Common Stock except for the Excepted Issuances (as defined in the
Subscription Agreement), prior to the complete exercise of this Warrant for a
consideration less than the Purchase Price that would be in effect at the time
of such issuance, then, and thereafter successively upon each such issuance, the
Purchase Price shall be reduced to such other lower price for then outstanding
Warrants.  For purposes of this adjustment, the issuance of any
security or debt instrument of the Company carrying the right to convert such
security or debt instrument into Common Stock or of any warrant, right or option
to purchase Common Stock shall result in an adjustment to the Purchase Price
upon the issuance of the above-described security, debt instrument, warrant,
right, or option if such issuance is at a price lower than the Purchase Price in
effect upon such issuance and again at any time upon any subsequent issuances of
shares of Common Stock upon exercise of such conversion or purchase rights if
such issuance is at a price lower than the Purchase Price in effect upon such
issuance.  Common Stock issued or issuable by the Company for no
consideration will be deemed issuable or to have been issued for $0.001 per
share of Common Stock.  Upon any reduction of the Purchase Price, the
number of shares of Common Stock that the Holder of this Warrant shall
thereafter, on the exercise hereof, be entitled to receive shall be adjusted to
a number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this Section 3.3) be issuable on such
exercise by a fraction of which (a) the numerator is the Purchase Price that
would otherwise (but for the provisions of this Section 3.3) be in effect, and
(b) the denominator is the Purchase Price in effect on the date of such
exercise.

       

      4.           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) issue additional shares of the Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Purchase Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Purchase Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Purchase Price then in effect. The
Purchase Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this
Section 4. The number of shares of Common Stock that the Holder of this
Warrant shall thereafter, on the exercise hereof, be entitled to receive shall
be adjusted to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
Purchase Price that would otherwise (but for the provisions of this Section 4)
be in effect, and (b) the denominator is the Purchase Price in effect on the
date of such exercise.

       

      5.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of the
Warrants, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms of the Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Purchase Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such adjustment or readjustment and as adjusted
or readjusted as provided in this Warrant. The Company will forthwith mail a
copy of each such certificate to the Holder of the Warrant and any Warrant Agent
of the Company (appointed pursuant to Section 11 hereof).

       

      6.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial
Statements.   The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of the
Warrants, all shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of the Warrant.  This Warrant entitles the
Holder hereof, upon written request, to receive copies of all financial and
other information distributed or required to be distributed to the holders of
the Company's Common Stock.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      7.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a “Transferor”). On the surrender for exchange of this
Warrant, with the Transferor's endorsement in the form of Exhibit B
attached hereto (the “Transferor Endorsement Form”) and together with an opinion
of counsel reasonably satisfactory to the Company that the transfer of this
Warrant will be in compliance with applicable securities laws, the Company will
issue and deliver to or on the order of the Transferor thereof a new Warrant or
Warrants of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Transferor Endorsement Form (each a “Transferee”), calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face or faces of the Warrant so surrendered by the
Transferor.

       

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

       

      9.           Registration
Rights.  The Holder of this Warrant has been granted certain
registration rights by the Company.  These registration rights are set
forth in the Subscription Agreement.  The terms of the Subscription
Agreement are incorporated herein by this reference.

       

      10.           Maximum
Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection with that number of shares of Common
Stock which would be in excess of the sum of (i) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates on an exercise
date, and (ii) the number of shares of Common Stock issuable upon the
exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial
ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of Common Stock on such date.  For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the 1934 Act and Rule 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate exercises which would result in the issuance of more than
4.99%.  The restriction described in this paragraph may be
waived, in whole or in part, upon sixty-one (61) days prior notice from the
Holder to the Company to increase such percentage to up to 9.99%, but not in
excess of 9.99%.  The Holder may decide whether to convert a
Convertible Note or exercise this Warrant to achieve an actual 4.99% or up to
9.99% ownership position as described above, but not in excess of
9.99%.

       

      11.           Warrant
Agent.  The Company may, by written notice to the Holder of the
Warrant, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common
Stock (or Other Securities) on the exercise of this Warrant pursuant to
Section 1, exchanging this Warrant pursuant to Section 7, and
replacing this Warrant pursuant to Section 8, or any of the foregoing, and
thereafter any such issuance, exchange or replacement, as the case may be, shall
be made at such office by such Warrant Agent.

       

      12.           Transfer on the Company's
Books.  Until this Warrant is transferred on the books of the
Company, the Company may treat the registered holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      13.           Notices.   All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:

       

      If to the
Company, to:

      Clear-Lite
Holdings, Inc.

      Attn:
Thomas J. Irvine, CEO

      102 NE
2nd Street, PMB 400

      Boca
Raton, FL 33432

      facsimile:
(561) 852-2322

      

      

      With a
copy by fax only to (which copy shall not constitute notice):

      Anslow
& Jaclin LLP

      Attn:
Joseph M. Lucosky, Esq.

      195 Route
9 South, Suite 204

      Manalapan,
NJ 07726

      facsimile:
(732) 577-1188

      

      If to the
Holder:

      To the
address and facsimile number listed on the first paragraph of this
Warrant

      

      With a
copy by fax only to (which copy shall not constitute notice):

      

       

      14.           Law Governing This
Warrant.  This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles
of conflicts of laws.  Any action brought by either party against the
other concerning the transactions contemplated by this Warrant shall be brought
only in the state courts of New York or in the federal courts located in the
state and county of New York.  The parties to this Warrant hereby
irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non
conveniens.  The Company and Holder waive trial by
jury.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney's fees and costs.  In the event
that any provision of this Warrant or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.   Each party hereby
irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Agreement or
any other Transaction Document 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 Agreement 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 way
any right to serve process in any other manner permitted by law.

       

       

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

       

      
        	 
      	
                CLEAR-LITE
      HOLDINGS, INC.

                 

                 

                 

              
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              

      

       

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
 

      Exhibit A

      

      FORM OF
SUBSCRIPTION

      (to be
signed only on exercise of Warrant)

       

      TO:  CLEAR-LITE
HOLDINGS, INC.

      The
undersigned, pursuant to the provisions set forth in the attached Warrant
(No.____), hereby irrevocably elects to purchase (check applicable
box):

      

      ___           ________
shares of the Common Stock covered by such Warrant; or

      ___           the
maximum number of shares of Common Stock covered by such Warrant pursuant to the
cashless exercise procedure set forth in Section 2.

      

      The
undersigned herewith makes payment of the full purchase price for such shares at
the price per share provided for in such Warrant, which is
$___________.  Such payment takes the form of (check applicable box or
boxes):

      

      ___           $__________
in lawful money of the United States; and/or

      ___           the
cancellation of such portion of the attached Warrant as is exercisable for a
total of _______ shares of Common Stock (using a Fair Market Value of $_______
per share for purposes of this calculation); and/or

      

      ___           the
cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2, to exercise this
Warrant with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in
Section 2.

      

      The
undersigned requests that the certificates for such shares be issued in the name
of, and delivered to _______________________________ whose address is
______________________________________________________________________________________.

      

      The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the within Warrant shall be made
pursuant to registration of the Common Stock under the Securities Act of 1933,
as amended (the “Securities Act”), or pursuant to an exemption from registration
under the Securities Act.

      

      
        	
                Dated:___________________

              	 
      
	 
      	
                (Signature
      must conform to name of holder as specified on the face of the
      Warrant)

                 

              
	 
      	 
      
	 
      	 
      
	 
      	
                (Address)

              

      

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      Exhibit B

      

      

      FORM OF
TRANSFEROR ENDORSEMENT

      (To be
signed only on transfer of Warrant)

      For value
received, the undersigned hereby sells, assigns, and transfers unto the
person(s) named below under the heading “Transferees” the right represented by
the within Warrant to purchase the percentage and number of shares of Common
Stock of CLEAR-LITE HOLDINGS, INC. to which the within Warrant relates specified
under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
person Attorney to transfer its respective right on the books of CLEAR-LITE
HOLDINGS, INC. with full power of substitution in the premises.

       

      

      
        	
                Transferees

              	
                Percentage Transferred

              	
                Number Transferred

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      

       

       

      
        
          	
                  Dated:  ______________,
      ___________

                   

                	 	 
      
	 
      	 	
                  (Signature
      must conform to name of holder as specified on the face of the
      warrant)

                   

                
	
                  Signed
      in the presence of:

                	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                  (Name)

                	 	
                   

                
	 
      	 	
                  (address)

                
	 
      	 	 
      
	
                  ACCEPTED
      AND AGREED:

                	 	 
      
	
                  [TRANSFEREE]

                	 	 
      
	 
      	 	
                  (address)

                
	 
      	 	 
      
	
                  (Name)

                	 	 
      
	 
      	 	
                   

                

        

      

      

    

    11

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