EXHIBIT 4.1
FORM OF COMMON STOCK AND WARRANT PURCHASE
AGREEMENT
THIS
COMMON STOCK AND WARRANT PURCHASE AGREEMENT (“
Agreement ”) is made and entered into as of
September 9, 2009 (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 (the
“Company” ), and _______________, each
may be referred to individually herein as an
“Investor ”, and collectively as the
“Investors” .
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A.
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The Company desires to sell, and
the Investors desire to purchase, shares of the Company’s
common stock, par value $0.001 per share (the “ Common
Stock ”).
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B.
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In connection with entering into
this Agreement, the Company shall issue to the Investors certain
Stock Purchase Warrants (each, a “
Warrant” and collectively, the “
Warrants” ) pursuant to which the Investors may
purchase up to an aggregate of 150,000 additional shares of Common
Stock at a price per share of $9.00 per share (as adjusted for any
stock dividends paid in common stock, and any combinations, stock
splits, recapitalizations and the like each with respect to the
Common Stock). The shares of Common Stock issuable upon exercise of
the Warrants are collectively referred to herein as the “
Warrant Shares .”
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C.
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The issuance of the Shares (as
defined below), the Warrants and Warrant Shares to the Investors
have been registered on the Company’s Registration Statement
on Form S-3, Registration No. 333-160498, which was declared
effective by the Securities and Exchange Commission (the “
SEC ” ) on July 22, 2009 (the “
Registration Statement ” ).
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THE PARTIES AGREE AS FOLLOWS
:
1. PURCHASE AND SALE OF COMMON STOCK AND
WARRANTS .
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1.1
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Subject to the terms and
conditions of this Agreement, each Investor agrees, severally but
not jointly, to purchase at the Closing (as defined below), and the
Company agrees to sell and issue to each Investor at the Closing,
(i) that number of shares of Common Stock set forth opposite each
Investor’s name on Exhibit A hereto and (ii) Warrants
exercisable for that number of shares of Common Stock set forth
opposite each Investor’s name on Exhibit A hereto. The
shares of Common Stock to be sold pursuant to this Agreement are
collectively referred to herein as the “ Shares
,” and the Shares, the Warrants and the Warrant Shares are
collectively referred to herein as the “
Securities ”. The aggregate purchase price of
the Securities shall be $3,602,500 (the “ Aggregate
Purchase Price ”). The number of shares of Common
Stock to be issued to Investors hereunder is determined by dividing
the Aggregate Purchase Price by $6.55.
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1.2
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At the Closing, the Company shall
issue a Warrant to each Investor. The Warrants shall be exercisable
for up to an aggregate total of 150,000 shares of Common Stock. The
Warrants shall be in substantially the form attached hereto as
Exhibit B .
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1
2. CLOSING; DELIVERY OF COMMON STOCK AND
WARRANTS.
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2.1
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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 no later than the close of business
on September 9, 2009 (the “ Closing Date
”). Prior to the Closing, the Company and each of the
Investors shall deliver all documents, instruments and writings
required to be delivered by any of them pursuant to this Agreement
in order to implement and effect the transactions contemplated
herein. At the Closing, (i) the Investors shall pay the Aggregate
Purchase Price by wire transfer of immediately available funds to
the Company (in accordance with the Company’s written
instructions), and (ii) the Company shall deliver to each Investor
(a) a certificate or certificates representing that number of
Shares purchased hereunder as set forth on Exhibit A and (b)
a Warrant in substantially the form attached hereto as Exhibit
B representing that number of Warrant Shares purchased
hereunder.
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2.2
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The Company’s obligations to issue and
deliver the stock certificate(s) representing the Shares to the
Investors at the Closing shall be subject to the following
conditions, any one or more of which may be waived by the
Company:
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2.2.1
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the covenants and obligations that the Investors
are 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;
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2.2.2
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the representations and warranties made by the
Investors herein shall be true and correct in all material respects
as of the Closing Date; and
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2.2.3
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each Investor shall have entered into a Lock-up
Agreement with the Company, in the form attached hereto as
Exhibit C (the “Lock-up Agreement”
).
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2.3
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Each Investor’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 the Investors:
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2.3.1
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the covenants and obligations that the Company
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;
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2.3.2
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the representation and warranties made by the
Company herein shall be true and correct in all material respects
as of the Closing Date.
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3. RESTRICTIONS ON RESALE OF SHARES
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3.1
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Legends . Each Investor understands, acknowledges and
agrees that the Shares and any Warrant Shares issued during the
Lock-Up Period (as defined in the Lock-Up Agreement) are subject to
the terms and conditions of the Lock-Up Agreement. Each stock
certificate representing the Shares and any Warrant Shares issued
during the Lock-Up Period shall bear the following
legend:
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“UNTIL SEPTEMBER 9, 2010, THE SHARES
REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN
ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE LOCK-UP AGREEMENT
BETWEEN THE COMPANY AND THE HOLDER OF THIS CERTIFICATE, A COPY OF
WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE
COMPANY.”
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4. INDEMNIFICATION .
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4.1
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The Company agrees to indemnify and hold
harmless each Investor 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
prospectus or prospectus supplement filed with the SEC and used in
connection with the offering of the Securities, or (ii) any
omission or alleged omission to state a material fact in the
Registration Statement, any prospectus or prospectus supplement
filed with the SEC and used in connection with the offering of the
Securities, or any amendment or supplement thereto, required to be
stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading; and the Company will reimburse each Investor for any
legal or any other expenses reasonably incurred by it 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 prospectus or prospectus
supplement, or any amendment or supplement thereto, in reliance
upon and in conformity with written information furnished to the
Company by or on behalf of any Investor expressly for use in the
preparation thereof, (B) the failure of any Investor to comply with
its covenants and agreement contained in Section 6 hereof, or (C)
any untrue statement, alleged untrue statement, or omission or
alleged omission in any prospectus or prospectus supplement that is
corrected in any subsequent prospectus that was delivered to each
Investor prior to the pertinent sale or sales by each Investor.
Such indemnity shall remain in full force and effect, regardless of
any investigation made by any Investor and shall survive the
transfer of the Securities by the each Investor.
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3
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4.2
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Each
Investor agrees to indemnify and hold harmless the Company (and
each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act of 1933, as amended (the “
Securities Act ”), or Section 20 of the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), and each officer of the
Company who signs the Registration Statement and each director of
the Company) 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 the Investors to comply with the covenants and
agreements contained in Section 6 hereof of (ii) untrue statement
or alleged untrue statement of a material fact contained in the
Registration Statement, any prospectus or prospectus supplement
filed with the SEC and used in connection with the offering of the
Securities or any amendment or supplement thereto, or any omission
or alleged omission of a material fact required to be stated in the
Registration Statement, any prospectus or prospectus supplement
filed with the SEC and used in connection with the offering of the
Securities, or any amendment or supplement thereto, required to be
stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading if such untrue statement, alleged untrue statement,
omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by on
behalf of the Investors specifically for use in preparation of the
Registration Statement, any prospectus or prospectus supplement;
provided, however, that the Investors shall not be liable in any
such case for (A) any untrue statement, alleged untrue statement,
omission or alleged omission in the Registration Statement, any
prospectus or prospectus supplement, or other such document which
statement is corrected by the Investors and delivered to the
Company prior to the sale from which such loss occurred, (B) any
untrue statement, alleged untrue statement, omission or alleged
omission in any prospectus which is corrected by the Investors in
any subsequent prospectus, or supplement or amendment thereto, and
delivered to the Company prior to the sale or sales from which a
loss or liability arose, or (C) any failure by the Company to
fulfill any of its obligations under Section 4.1 hereof.
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4.3
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Promptly after receipt by any indemnified party
or 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
party pursuant to this Section 4, such indemnified party or person
shall notify the indemnifying party in writing of such claim or of
the commencement of such action, but the omission to so notify the
indemnifying party will not
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