<SEC-DOCUMENT>0001206774-14-000360.txt : 20140130
<SEC-HEADER>0001206774-14-000360.hdr.sgml : 20140130
<ACCEPTANCE-DATETIME>20140130172952
ACCESSION NUMBER:		0001206774-14-000360
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20140130
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140130
DATE AS OF CHANGE:		20140130

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GERON CORP
		CENTRAL INDEX KEY:			0000886744
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				752287752
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20859
		FILM NUMBER:		14561699

	BUSINESS ADDRESS:	
		STREET 1:		149 COMMONWEALTH DRIVE
		STREET 2:		SUITE 2070
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025
		BUSINESS PHONE:		6504737700

	MAIL ADDRESS:	
		STREET 1:		149 COMMONWEALTH DRIVE
		STREET 2:		SUITE 2070
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GERON CORPORATION
		DATE OF NAME CHANGE:	19960521
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>geron_8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>

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<P align=center><B><FONT face="Times New Roman" size=2>UNITED
STATES<BR></FONT></B><B><FONT face="Times New Roman" size=2>SECURITIES AND
EXCHANGE COMMISSION<BR>WASHINGTON, D.C. 20549 <BR>___________<BR></FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>FORM 8-K </FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>CURRENT
REPORT<BR></FONT></B><B><FONT face="Times New Roman" size=2>PURSUANT TO SECTION
13 OR 15(d) OF THE<BR>SECURITIES EXCHANGE ACT OF 1934</FONT></B></P>
<P align=center><FONT face="Times New Roman" size=2>Date of Report (Date of
Earliest Event Reported): </FONT><B><FONT face="Times New Roman" size=2>January 30, 2014</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>GERON
CORPORATION</FONT></B><FONT face="Times New Roman" size=2> <BR></FONT><FONT face="Times New Roman" size=2>(Exact name of registrant as specified in its
charter) </FONT></P>
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    <TD style="TEXT-ALIGN: center" noWrap width="33%"><B><FONT face="Times New Roman" size=2>Delaware</FONT></B></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><B><FONT face="Times New Roman" size=2>0-20859</FONT></B></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><B><FONT face="Times New Roman" size=2>75-2287752</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><FONT face="Times New Roman" size=2>(State or other jurisdiction</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><FONT face="Times New Roman" size=2>(Commission File Number)</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><FONT face="Times New Roman" size=2>(IRS Employer</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><FONT face="Times New Roman" size=2>of incorporation)</FONT></TD>
    <TD noWrap align=left width="33%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"><FONT face="Times New Roman" size=2>Identification
No.)</FONT></TD></TR></TABLE><BR>
<P align=center><B><FONT face="Times New Roman" size=2>149 COMMONWEALTH DRIVE,
SUITE 2070<BR>MENLO PARK, CALIFORNIA 94025<BR></FONT></B><FONT face="Times New Roman" size=2>(Address of principal executive offices, including
zip code) </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>(650)
473-7700<BR></FONT></B><FONT face="Times New Roman" size=2>(Registrant&#146;s
telephone number, including area code) </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>N/A <BR></FONT></B><FONT face="Times New Roman" size=2>(Former name or former address, if changed since
last report) </FONT></P>
<P align=left><FONT face="Times New Roman" size=2>Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below): </FONT></P>
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    <TD vAlign=top noWrap align=left width="1%"><FONT face=Wingdings size=2>&#168;</FONT></TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>Written communications pursuant to Rule 425 under the Securities
      Act (17 CFR 230.425)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=Arial size=2><FONT face=Wingdings>&#168;</FONT></FONT>&nbsp; </TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=Arial size=2><FONT face=Wingdings>&#168;</FONT><FONT face="Times New Roman" size=3>&nbsp;
      </FONT></FONT></TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 <FONT face="Times New Roman" size=2>CFR
      240.14d-2(b))</FONT></FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=Arial size=2><FONT face=Wingdings>&#168;</FONT><FONT face="Times New Roman" size=3>&nbsp;
      </FONT></FONT></TD>
    <TD vAlign=top align=left width="98%"><FONT face="Times New Roman" size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 <FONT face="Times New Roman" size=2>CFR
      240.13e-4(c))</FONT></FONT>&nbsp; </TD></TR></TABLE><BR>
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<P align=justify><B><FONT face="Times New Roman" size=2>Item 8.01 Other
Events.</FONT></B></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Public Offering</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>On January 30,
2014, Geron Corporation (the &#147;Company&#148; or &#147;Geron&#148;) entered into an underwriting agreement
(the &#147;Underwriting Agreement&#148;) with Merrill Lynch, Pierce, Fenner &amp; Smith
Incorporated, as representative of the several underwriters (collectively, the
&#147;Underwriters&#148;), relating to an underwritten public offering, for the issuance and sale
of 22,500,000 shares (the &#147;Shares&#148;) of the Company&#146;s common stock, par value $0.001 per
share (the &#147;Common Stock&#148;). The price to the public in this offering is $4.00 per
share, and the Underwriters have agreed to purchase the shares from the Company
pursuant to the Underwriting Agreement at a price of $3.76 per share. The
estimated gross public offering proceeds will be approximately $90 million. The
Company expects the net proceeds from the sale of the Shares to be approximately
$84 million, after deducting the underwriting discount and estimated offering
expenses payable by Geron. The offering is expected to close on or about
February 4, 2014, subject to customary closing conditions contained in the
Underwriting Agreement. In addition, the Company granted to the Underwriters
under the terms of the Underwriting Agreement, an option, exercisable for 30
days, to purchase up to an additional 3,375,000 shares of its common stock.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=2 face="Times New Roman"></FONT><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT>The offering is being made pursuant to
the Company&#146;s shelf registration statement on Form S-3 filed with the Securities
and Exchange Commission (the &#147;SEC&#148;) on July 3, 2012, which became effective on
October 11, 2012 (Registration Statement No. 333-182537) and preliminary and
final prospectus supplements thereunder.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=2 face="Times New Roman"></FONT><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT>The Underwriting Agreement contains
customary representations, warranties and agreements by the Company, customary
conditions to closing, indemnification obligations of the Company and the
Underwriters, including for liabilities under the Securities Act of 1933, as
amended, other obligations of the parties and termination provisions. The
representations, warranties and covenants contained in the Underwriting
Agreement were made only for purposes of such agreement and as of specific
dates, were solely for the benefit of the parties to such agreement, and may be
subject to limitations agreed upon by the contracting parties. A copy of the
Underwriting Agreement is attached as Exhibit 1.1 to this report and is
incorporated herein by reference, and the foregoing description of the
Underwriting Agreement does not purport to be complete and is qualified in its
entirety by reference to such exhibit. A copy of the opinion of Cooley LLP
relating to the legality of the issuance and sale of the Shares in the offering
is attached as Exhibit 5.1 hereto.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Updated Company
Disclosure</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=2 face="Times New Roman"></FONT><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT>The Company is filing information for the
purpose of supplementing and updating certain risks and uncertainties that could
materially adversely affect its business, financial condition or results of
operations from the description included under the heading &#147;Item 1A. Risk
Factors&#148; in its Quarterly Report on Form 10-Q for the quarter ended September
30, 2013, filed with the SEC on November 7, 2013. The Company is also updating
certain aspects of the description of its business from that described under the
heading, &#147;Item 1. Business&#148; in the Company&#146;s Annual Report on Form 10-K for the
year ended December 31, 2012, filed with the SEC on March 15, 2013. The updated
Company disclosures are filed herewith as Exhibit 99.1 and are incorporated
herein by reference.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>2</FONT></P>
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<P align=justify><B><FONT face="Times New Roman" size=2>Forward-Looking
Statements</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=2 face="Times New Roman"></FONT><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Statements in this report that are not
strictly historical in nature constitute &#147;forward-looking statements.&#148; Such
statements include, but are not limited to the Company&#146;s issuance of securities,
the amount of proceeds from the offering and the closing of the offering. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause actual results to be materially different from
any results expressed or implied by such forward-looking statements. For
example, there are risks and uncertainties related to market conditions and the
satisfaction of customary closing conditions related to the public offering.
There can be no assurance that the Company will be able to complete the proposed
public offering on the anticipated terms, or at all. The Company will continue
to need significant additional capital to fund its operations and may be unable
to raise capital when needed, which would force the Company to delay, reduce or
eliminate its imetelstat clinical development program. Additional risks and
uncertainties relating to the Company and its business can be found in the
updated risk factors filed herewith as Exhibit 99.1. The Company expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in its expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Item 9.01. Financial Statements and
Exhibits.</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=2 face="Times New Roman"></FONT><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(d) Exhibits: </FONT></P>
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    <TD vAlign=top noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="1%"><B><FONT face="Times New Roman" size=2>Exhibit No.</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="48%"><B><FONT face="Times New Roman" size=2>Description</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="48%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%"></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top  width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Underwriting Agreement, dated January 30, 2014, by and
      between Geron Corporation and Merrill Lynch, Pierce, Fenner &amp; Smith
      Incorporated.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%"></TD>
    <TD vAlign=top noWrap align=center width="1%"><FONT face="Times New Roman" size=2>5.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%"></TD>
    <TD vAlign=top  width="96%" colSpan=2><FONT face="Times New Roman" size=2>Opinion of Cooley LLP.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%"></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>23.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top  width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Consent of Cooley LLP (included in Exhibit
    5.1).</FONT></TD></TR>
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    <TD vAlign=top noWrap align=center width="1%"></TD>
    <TD vAlign=top noWrap align=center width="1%"><FONT face="Times New Roman" size=2>99.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%"></TD>
    <TD vAlign=top  width="96%" colSpan=2><FONT face="Times New Roman" size=2>Updated Company Disclosure.</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>3 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>SIGNATURE </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized. </FONT></P>
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    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>GERON
      CORPORATION</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face="Times New Roman" size=2>Date: January
      30, 2014</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>By:&nbsp;&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="49%"><FONT size=2 face="Times New Roman">/s/ Stephen N. Rosenfield</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="49%"><FONT size=2 face="Times New Roman">Stephen N.
      Rosenfield</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="49%"><FONT size=2 face="Times New Roman">Executive
      Vice President, General</FONT></TD></TR>
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    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="49%"><FONT size=2 face="Times New Roman">Counsel and
      Corporate Secretary</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>4 </FONT></P>
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<P align=center><B><FONT face="Times New Roman" size=2>EXHIBIT INDEX</FONT></B></P>
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    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="1%"><B><FONT face="Times New Roman" size=2>Exhibit
No.</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="97%"><B><FONT face="Times New Roman" size=2>Description</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top width="97%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Underwriting Agreement, dated January 30,
      2014, by and between Geron Corporation and Merrill Lynch, Pierce, Fenner
      &amp; Smith Incorporated.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%"><FONT face="Times New Roman" size=2>5.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top width="97%"><FONT face="Times New Roman" size=2>Opinion of Cooley LLP.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>23.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top width="97%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Consent of Cooley LLP (included in Exhibit
      5.1).</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="1%"><FONT face="Times New Roman" size=2>99.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top width="97%"><FONT face="Times New Roman" size=2>Updated Company
Disclosure.</FONT></TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-1.1
<SEQUENCE>2
<FILENAME>exhibit1-1.htm
<DESCRIPTION>UNDERWRITING AGREEMENT
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<P align=right><B><FONT face="Times New Roman" size=2>EXHIBIT 1.1 </FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>Underwriting Agreement, Dated January
30, 2014 </FONT></B></P>
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    <TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" width="100%">&nbsp; </TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2></FONT>&nbsp;</P>
<P align=justify><FONT face="Times New Roman" size=2></FONT>&nbsp;</P>
<P align=justify><FONT face="Times New Roman" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="Times New Roman" size=2>GERON CORPORATION </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>(a Delaware corporation) </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>22,500,000 Shares of Common Stock </FONT></P>
<P align=center><U><FONT face="Times New Roman" size=2>UNDERWRITING
AGREEMENT</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=justify><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=justify><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=justify><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=justify><FONT face="Times New Roman" size=2>Dated: January 30, 2014 </FONT></P>
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    <TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" width="100%">&nbsp; </TD></TR></TABLE><BR>
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<P align=center><FONT face="Times New Roman" size=2>GERON CORPORATION </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>(a Delaware corporation) </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>22,500,000 Shares of Common Stock </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>UNDERWRITING AGREEMENT
</FONT></B></P>
<P align=right><FONT face="Times New Roman" size=2>January 30, 2014 </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Merrill Lynch, Pierce, Fenner &amp;
Smith
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Incorporated </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>as Representative of the several
Underwriters </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>One Bryant Park <BR></FONT><FONT face="Times New Roman" size=2>New York, New York 10036 </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Ladies and Gentlemen: </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Geron
Corporation, a Delaware corporation (the &#147;Company&#148;), confirms its agreement with
Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;Merrill Lynch&#148;) and
each of the other Underwriters named in Schedule A hereto (collectively, the
&#147;Underwriters,&#148; which term shall also include any underwriter substituted as
hereinafter provided in Section 10 hereof), for whom Merrill Lynch is acting as
representative (in such capacity, the &#147;Representative&#148;), with respect to (i) the
sale by the Company and the purchase by the Underwriters, acting severally and
not jointly, of the respective numbers of shares of Common Stock, par value
$0.001 per share, of the Company (&#147;Common Stock&#148;) set forth in Schedule A hereto
and (ii) the grant by the Company to the Underwriters, acting severally and not
jointly, of the option described in Section 2(b) hereof to purchase all or any
part of 3,375,000 additional shares of Common Stock for the sole purpose of covering sales of shares in excess of the Initial Securities. The aforesaid 22,500,000 shares of Common Stock (the &#147;Initial
Securities&#148;) to be purchased by the Underwriters and all or any part of the 3,375,000 shares of
Common Stock subject to the option described in Section 2(b) hereof (the &#147;Option
Securities&#148;) are herein called, collectively, the &#147;Securities.&#148; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Company understands that the Underwriters propose to make a public
offering of the Securities as soon as the Representative deems advisable after
this Agreement has been executed and delivered. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Company has prepared and filed with the Securities and Exchange
Commission (the &#147;Commission&#148;) a registration statement on Form S-3 (File No.
333-182537) covering the public offering and sale of certain securities,
including the Securities, under the Securities Act of 1933, as amended (the
&#147;1933 Act&#148;), and the rules and regulations promulgated thereunder (the &#147;1933 Act
Regulations&#148;), which registration statement was declared effective on October
11, 2012. Such registration statement, as of any time, means such registration
statement as amended on the date it was declared effective or by any
post-effective amendments thereto to such time, including the exhibits and any
schedules thereto at such time, the documents incorporated or deemed to be
incorporated by reference therein at such time pursuant to Item 12 of Form S-3
under the 1933 Act and the documents otherwise deemed to be a part thereof as of
such time pursuant to Rule 430B under the 1933 Act Regulations (&#147;Rule 430B&#148;), is
referred to herein as the &#147;Registration Statement;&#148; provided, however, that the
&#147;Registration Statement&#148; without reference to a time means such registration
statement as amended by any post-effective amendments thereto as of the time of
the first contract of sale for the Securities, which time shall be considered
the &#147;new effective date&#148; of such registration statement with respect to the
Securities within the meaning of paragraph (f)(2) of Rule 430B, including the
exhibits and schedules thereto as of such time, the documents incorporated or
deemed incorporated by reference therein at such time pursuant to Item 12 of
Form S-3 under the 1933 Act and the documents otherwise deemed to be a part
thereof as of such time pursuant to Rule 430B. Any registration statement filed
pursuant to Rule 462(b) of the 1933 Act Regulations to register a portion of the
Securities is herein referred to as the &#147;Rule 462(b) Registration Statement,&#148;
and after such filing, the term &#147;Registration Statement&#148; shall include the Rule
462(b) Registration Statement. Each preliminary prospectus (including any
preliminary prospectus supplement) used in connection with the offering of the
Securities, including the documents incorporated or deemed to be incorporated by
reference therein pursuant to Item 12 of Form S-3 under the 1933 Act, are
collectively referred to herein as a &#147;preliminary prospectus.&#148; Promptly after
execution and delivery of this Agreement, the Company will prepare and file a
final prospectus relating to the Securities in accordance with the provisions of
Rule 424(b) under the 1933 Act Regulations (&#147;Rule 424(b)&#148;). The final
prospectus, in the form first furnished or made available to the Underwriters
for use in connection with the offering of the Securities, including the
documents incorporated or deemed to be incorporated by reference therein
pursuant to Item 12 of Form S-3 under the 1933 Act, are collectively referred to
herein as the &#147;Prospectus.&#148; For purposes of this Agreement, all references to
the Registration Statement, any preliminary prospectus, the Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the
copy filed with the Commission pursuant to its Electronic Data Gathering,
Analysis and Retrieval system (or any successor system)(&#147;EDGAR&#148;).</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As used in this Agreement: </FONT></P>
<P align=justify style="padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&#147;Applicable Time&#148; means 5:30 A.M., New York City time, on January 30, 2014 or such
other time as agreed by the Company and the Representative. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&#147;General Disclosure Package&#148; means any Issuer General Use Free Writing
Prospectuses issued at or prior to the Applicable Time, the most recent
preliminary prospectus (including the documents incorporated or deemed to be
incorporated by reference therein pursuant to Item 12 of Form S-3 under the 1933
Act) that is included in the Registration Statement prior to the Applicable
Time, and the information included on Schedule B-1 hereto, all considered
together.</FONT><B><FONT face="Times New Roman" size=2> </FONT></B></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&#147;Issuer Free Writing Prospectus&#148; means any &#147;issuer free writing
prospectus,&#148; as defined in Rule 433 of the 1933 Act Regulations (&#147;Rule 433&#148;),
including without limitation any &#147;free writing prospectus&#148; (as defined in Rule
405 of the 1933 Act Regulations (&#147;Rule 405&#148;)) relating to the Securities that is
(i) required to be filed with the Commission by the Company, (ii) a &#147;road show
that is a written communication&#148; within the meaning of Rule 433(d)(8)(i),
whether or not required to be filed with the Commission, or (iii) exempt from
filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a
description of the Securities or of the offering that does not reflect the final
terms, in each case in the form filed or required to be filed with the
Commission or, if not required to be filed, in the form retained in the
Company&#146;s records pursuant to Rule 433(g). </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&#147;Issuer General Use Free Writing Prospectus&#148; means any Issuer Free
Writing Prospectus that is intended for general distribution to prospective
investors (other than a &#147;</FONT><I><FONT face="Times New Roman" size=2>bona
fide</FONT></I><FONT face="Times New Roman" size=2> electronic road show,&#148; as defined in
Rule 433), as evidenced by its being specified in Schedule B-2 hereto.
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&#147;Issuer Limited Use Free Writing Prospectus&#148; means any Issuer Free
Writing Prospectus that is not an Issuer General Use Free Writing
Prospectus.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>2 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All references in this Agreement to financial statements and schedules
and other information which is &#147;contained,&#148; &#147;included&#148; or &#147;stated&#148; (or other
references of like import) in the Registration Statement, any preliminary
prospectus or the Prospectus shall be deemed to include all such financial
statements and schedules and other information incorporated or deemed
incorporated by reference in the Registration Statement, any preliminary
prospectus or the Prospectus, as the case may be, prior to the execution and
delivery of this Agreement; and all references in this Agreement to amendments
or supplements to the Registration Statement, any preliminary prospectus or the
Prospectus shall be deemed to include the filing of any document under the
Securities Exchange Act of 1934, as amended (the &#147;1934 Act&#148;), and the rules and
regulations promulgated thereunder (the &#147;1934 Act Regulations&#148;), incorporated or
deemed to be incorporated by reference in the Registration Statement, such
preliminary prospectus or the Prospectus, as the case may be, at or after the
execution and delivery of this Agreement. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 1.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Representations and Warranties</FONT></U><FONT face="Times New Roman" size=2>.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Representations and Warranties by the Company</FONT></I><FONT face="Times New Roman" size=2>. The Company represents and warrants to each Underwriter as of the date
hereof, the Applicable Time, the Closing Time (as defined below) and any Date of
Delivery (as defined below) (except to the extent expressly made as of an
earlier date, in which case as of such earlier date), and agrees with each
Underwriter, as follows: </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Registration Statement and Prospectuses</FONT></U><FONT face="Times New Roman" size=2>. The Company meets the requirements for use of Form S-3 under the 1933
Act. Each of the Registration Statement and any post-effective amendment thereto
has become effective under the 1933 Act. No stop order suspending the
effectiveness of the Registration Statement or any post-effective amendment
thereto has been issued under the 1933 Act, no order preventing or suspending
the use of any preliminary prospectus or the Prospectus has been issued and no
proceedings for any of those purposes have been instituted or are pending or, to
the Company&#146;s knowledge, contemplated. The Company has complied with each
request (if any) from the Commission for additional information. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each of the Registration Statement and any post-effective amendment
thereto, at the time of its effectiveness and at each deemed effective date with
respect to the Underwriters pursuant to Rule 430B(f)(2) under the 1933 Act
Regulations, complied in all material respects with the requirements of the 1933
Act and the 1933 Act Regulations. Each preliminary prospectus, the Prospectus
and any amendment or supplement thereto, at the time each was filed with the
Commission, complied in all material respects with the requirements of the 1933
Act Regulations and each preliminary prospectus and the Prospectus delivered to
the Underwriters for use in connection with this offering was identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T.</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The documents incorporated or deemed to be incorporated by reference in
the Registration Statement and the Prospectus, when they became effective or at
the time they were or hereafter are filed with the Commission, complied and will
comply in all material respects with the requirements of the 1934 Act and the
rules and regulations of the Commission under the 1934 Act Regulations.
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Accurate Disclosure</FONT></U><FONT face="Times New Roman" size=2>. Neither the
Registration Statement nor any amendment thereto, at its effective time, at the
Closing Time or at any Date of Delivery, contained, contains or will contain an
untrue statement of a material fact or omitted, omits or will omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading. As of the Applicable Time, neither (A) the General
Disclosure Package nor (B) any individual Issuer Limited Use Free Writing
Prospectus, when considered together with the General Disclosure Package,
included, includes or will include an untrue statement of a material fact or
omitted, omits or will omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading. Neither the Prospectus nor any amendment or supplement
thereto, as of its issue date, at the time of any filing with the Commission
pursuant to Rule 424(b), at the Closing Time or at any Date of Delivery,
included, includes or will include an untrue statement of a material fact or
omitted, omits or will omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading. The documents incorporated or deemed to be incorporated by
reference in the Registration Statement, the General Disclosure Package and the
Prospectus, at the time the Registration Statement became effective or when such
documents incorporated by reference were filed with the Commission, as the case
may be, when read together with the other information in the Registration
Statement, the General Disclosure Package or the Prospectus, as the case may be,
did not and will not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in the case of the General Disclosure Package or the
Prospectus in the light of the circumstances under which they were made, not
misleading.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>3 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The representations and warranties in this subsection shall not apply to
statements in or omissions from the Registration Statement (or any amendment
thereto), the General Disclosure Package or the Prospectus (or any amendment or
supplement thereto) made in reliance upon and in conformity with written
information furnished to the Company by any Underwriter through the
Representative expressly for use therein. For purposes of this Agreement, the
only information so furnished shall be the information in the first paragraph
under the heading &#147;Underwriting&#150;Commissions and Discounts,&#148; the information in
the second and third paragraphs under the heading &#147;Underwriting&#150;Price
Stabilization, Short Positions&#148; and the information under the heading
&#147;Underwriting&#150;Electronic Distribution&#148; in each case contained in the Prospectus
(collectively, the &#147;Underwriter Information&#148;). </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Issuer Free Writing Prospectuses</FONT></U><FONT face="Times New Roman" size=2>. No
Issuer Free Writing Prospectus conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any
document incorporated by reference therein, and any preliminary or other
prospectus deemed to be a part thereof that has not been superseded or
modified.</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Company Not Ineligible Issuer</FONT></U><FONT face="Times New Roman" size=2>. At the
time of filing the Registration Statement and any post-effective amendment
thereto, at the earliest time thereafter that the Company or another offering
participant made a </FONT><I><FONT face="Times New Roman" size=2>bona fide</FONT></I><FONT face="Times New Roman" size=2> offer (within the meaning of Rule 164(h)(2) of the 1933 Act
Regulations) of the Securities and at the date hereof, the Company was not and
is not an &#147;ineligible issuer,&#148; as defined in Rule 405, without taking account of
any determination by the Commission pursuant to Rule 405 that it is not
necessary that the Company be considered an ineligible issuer. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(v)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Independent Accountants</FONT></U><FONT face="Times New Roman" size=2>. The
accountants who certified the financial statements and supporting schedules
included in the Registration Statement, the General Disclosure Package and the
Prospectus are independent public accountants as required by the 1933 Act, the
1933 Act Regulations, the 1934 Act, the 1934 Act Regulations and the Public
Accounting Oversight Board. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(vi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Financial Statements</FONT></U><FONT face="Times New Roman" size=2>. The financial
statements included or incorporated by reference in the Registration Statement,
the General Disclosure Package and the Prospectus, together with the related
schedules and notes, present fairly, in all material respects, the financial
position of the Company and its consolidated subsidiaries at the dates indicated
and the statement of operations, stockholders&#146; equity and cash flows of the
Company and its consolidated subsidiaries for the periods specified; said
financial statements have been prepared in conformity with U.S. generally
accepted accounting principles (&#147;GAAP&#148;) applied on a consistent basis throughout
the periods involved. The supporting schedules included or incorporated by
reference in the Registration Statement, the General Disclosure Package and the
Prospectus, if any, present fairly, in all material respects, in accordance with
GAAP the information required to be stated therein. The selected financial data
and the summary financial information, if any, included in the Registration
Statement, the General Disclosure Package and the Prospectus present fairly, in
all material respects, the information shown therein and have been compiled on a
basis consistent with that of the audited financial statements included therein.
Except as included therein, no historical or pro forma financial statements or
supporting schedules are required to be included or incorporated by reference in
the Registration Statement, the General Disclosure Package or the Prospectus
under the 1933 Act or the 1933 Act Regulations. The interactive data in
eXtensible Business Reporting Language incorporated by reference in the
Registration Statement, the General Disclosure Package and the Prospectus fairly
presents the information called for in all material respects and has been
prepared in accordance with the Commission's rules and guidelines applicable
thereto.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>4 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(vii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>No
Material Adverse Change in Business</FONT></U><FONT face="Times New Roman" size=2>. Except
as otherwise stated or contemplated therein, since the respective dates as of
which information is given in the General Disclosure Package or the Prospectus,
(A) there has been no material adverse change in the condition, financial or
otherwise, in the earnings, business affairs or business prospects of the
Company, whether or not arising in the ordinary course of business (a &#147;Material
Adverse Effect&#148;), (B) there have been no transactions entered into by the
Company, other than those in the ordinary course of business, which are material
with respect to the Company, and (C) there has been no dividend or distribution
of any kind declared, paid or made by the Company on any class of its capital
stock. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(viii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Good Standing of the Company</FONT></U><FONT face="Times New Roman" size=2>. The
Company has been duly organized and is validly existing as a corporation in good
standing under the laws of the State of Delaware and has corporate power and
authority to own, lease and operate its properties and to conduct its business
as described in the Registration Statement, the General Disclosure Package and
the Prospectus and to enter into and perform its obligations under this
Agreement; and the Company is duly qualified as a foreign corporation to
transact business and is in good standing in each other jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of
property or the conduct of business, except where the failure so to qualify or
to be in good standing would not result in a Material Adverse Effect.
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ix)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Good Standing of Subsidiaries</FONT></U><FONT face="Times New Roman" size=2>. The
Company has no subsidiaries.</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(x)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Capitalization</FONT></U><FONT face="Times New Roman" size=2>. The Company has an
authorized capitalization as set forth in the Registration Statement, the
General Disclosure Package and the Prospectus under the heading &#147;Description of
Capital Stock&#148;. The outstanding shares of capital stock of the Company have been
duly authorized and validly issued and are fully paid and non-assessable. None
of the outstanding shares of capital stock of the Company were issued in
violation of the preemptive or other similar rights of any securityholder of the
Company. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Authorization of Agreement</FONT></U><FONT face="Times New Roman" size=2>. This
Agreement has been duly authorized, executed and delivered by the Company.
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Authorization and Description of Securities</FONT></U><FONT face="Times New Roman" size=2>. The Securities to be purchased by the Underwriters from the Company
have been duly authorized for issuance and sale to the Underwriters pursuant to
this Agreement and, when issued and delivered by the Company pursuant to this
Agreement against payment of the consideration set forth herein, will be validly
issued and fully paid and non-assessable; and the issuance of the Securities is
not subject to the preemptive or other similar rights of any securityholder of
the Company. The Common Stock conforms to all statements relating thereto
contained in the Registration Statement, the General Disclosure Package and the
Prospectus and such description conforms to the rights set forth in the
instruments defining the same. No holder of Securities will be subject to
personal liability by reason of being such a holder.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>5 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xiii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Registration Rights</FONT></U><FONT face="Times New Roman" size=2>. There are no
persons with registration rights or other similar rights to have any securities
registered for sale pursuant to the Registration Statement or otherwise
registered for sale or sold by the Company under the 1933 Act pursuant to this
Agreement. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xiv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Absence of Violations, Defaults and Conflicts</FONT></U><FONT face="Times New Roman" size=2>. The Company is not (A) in violation of its charter or by-laws, (B) in
default in the performance or observance of any obligation, agreement, covenant
or condition contained in any contract, indenture, mortgage, deed of trust, loan
or credit agreement, note, lease or other agreement or instrument to which the
Company is a party or by which it may be bound or to which any of the properties
or assets of the Company is subject (collectively, &#147;Agreements and
Instruments&#148;), except for such defaults that would not, singly or in the
aggregate, result in a Material Adverse Effect, or (C) in violation of any law,
statute, rule, regulation, judgment, order, writ or decree of any arbitrator,
court, governmental body, regulatory body, administrative agency or other
authority, body or agency having jurisdiction over the Company or any of its
properties, assets or operations (each, a &#147;Governmental Entity&#148;), except for
such violations that would not, singly or in the aggregate, result in a Material
Adverse Effect. The execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated herein and in the Registration
Statement, the General Disclosure Package and the Prospectus (including the
issuance and sale of the Securities and the use of the proceeds from the sale of
the Securities as described therein under the caption &#147;Use of Proceeds&#148;) and
compliance by the Company with its obligations hereunder have been duly
authorized by all necessary corporate action and do not and will not, whether
with or without the giving of notice or passage of time or both, conflict with
or constitute a breach of, or default or Repayment Event (as defined below)
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any properties or assets of the Company pursuant to, the
Agreements and Instruments (except for such conflicts, breaches, defaults or
Repayment Events or liens, charges or encumbrances that would not, singly or in
the aggregate, result in a Material Adverse Effect), nor will such action result
in any violation of (i) the provisions of the charter or by-laws of the Company
or (ii) any law, statute, rule, regulation, judgment, order, writ or decree of
any Governmental Entity except, in the case of clause (ii), for any such
violation that would not, singly or in the aggregate, result in a Material
Adverse Effect. As used herein, a &#147;Repayment Event&#148; means any event or condition
which gives the holder of any note, debenture or other evidence of indebtedness
(or any person acting on such holder&#146;s behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such indebtedness by
the Company. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Absence of Labor Dispute</FONT></U><FONT face="Times New Roman" size=2>. No labor
dispute with the employees of the Company exists or, to the knowledge of the
Company, is imminent, and the Company is not aware of any existing or imminent
labor disturbance by the employees of any of its principal suppliers,
manufacturers, customers or contractors, which, in either case, would result in
a Material Adverse Effect. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xvi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Absence of Proceedings</FONT></U><FONT face="Times New Roman" size=2>. Except as
disclosed in the Registration Statement, the General Disclosure Package and the
Prospectus, there is no action, suit, proceeding, inquiry or investigation
before or brought by any Governmental Entity now pending or, to the knowledge of
the Company, threatened, against or affecting the Company, which could
reasonably be expected to result in a Material Adverse Effect, or which could
reasonably be expected to materially and adversely affect its properties or
assets or the consummation of the transactions contemplated in this Agreement or
the performance by the Company of its obligations hereunder; and the aggregate
of all pending legal or governmental proceedings to which the Company is a party
or of which any of its properties or assets is subject which are not described
in the Registration Statement, the General Disclosure Package and the
Prospectus, including ordinary routine litigation incidental to the business,
could not reasonably be expected to result in a Material Adverse
Effect.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>6 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xvii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Accuracy of Exhibits</FONT></U><FONT face="Times New Roman" size=2>. There are no
contracts or documents which are required to be described in the Registration
Statement, the General Disclosure Package or the Prospectus or to be filed as
exhibits to the Registration Statement which have not been so described and
filed as required. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xviii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Absence of Further Requirements</FONT></U><FONT face="Times New Roman" size=2>. No
filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any Governmental Entity is necessary or required for
the performance by the Company of its obligations hereunder, in connection with
the offering, issuance or sale of the Securities hereunder or the consummation
of the transactions contemplated by this Agreement, except such as have been
already obtained or as may be required under the 1933 Act, the 1933 Act
Regulations, the rules of the NASDAQ Stock Market LLC, state securities laws or
the rules of Financial Industry Regulatory Authority, Inc. (&#147;FINRA&#148;).
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xix)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Possession of Licenses and Permits</FONT></U><FONT face="Times New Roman" size=2>.
The Company possesses such permits, licenses, approvals, consents and other
authorizations (collectively, &#147;Governmental Licenses&#148;) issued by the
Governmental Entities that are necessary to conduct the business now operated by
them, including, without limitation, (A) all necessary U.S. Food and Drug
Administration (the &#147;FDA&#148;) clearances or approvals to conduct the Company&#146;s
business as now conducted and (B) applicable foreign regulatory agency
clearances or approvals to conduct the Company&#146;s business as now conducted,
except where the failure so to possess would not, singly or in the aggregate,
result in a Material Adverse Effect. The Company is in compliance with the terms
and conditions of all Governmental Licenses, except where the failure so to
comply would not, singly or in the aggregate, result in a Material Adverse
Effect. All of the Governmental Licenses are valid and in full force and effect,
except when the invalidity of such Governmental Licenses or the failure of such
Governmental Licenses to be in full force and effect would not, singly or in the
aggregate, result in a Material Adverse Effect. The Company has not received any
notice of proceedings relating to the revocation or modification of any
Governmental Licenses, including, without limitation, any FDA Form 483, notice
of adverse finding, warning letter, untitled letter or other correspondence or
notice from the FDA which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would result in a Material Adverse
Effect. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xx)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Studies, Tests and Trials.</FONT></U><FONT face="Times New Roman" size=2> The
description of the results of the studies, tests and trials contained in the
Registration Statement, the General Disclosure Package and the Prospectus are
accurate in all material respects (except that the foregoing representation
shall be to the Company&#146;s knowledge, after due inquiry, with respect to such
studies, tests and trials conducted by third parties), and the Company has no
knowledge of any other studies, tests or trials, the results of which could
reasonably be expected to materially discredit or materially call into question
the results described in the Registration Statement, the General Disclosure
Package and the Prospectus. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>7 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Clinical Trials</FONT></U><FONT face="Times New Roman" size=2>. Any clinical trials
or human and animal studies described in the Registration Statement, the General
Disclosure Package and the Prospectus were and, if still pending, are being
conducted (to the Company&#146;s knowledge, after due inquiry, with respect to such
studies conducted by third parties) in accordance, in all material respects,
with standard medical and scientific research procedures and all applicable
rules, regulations and policies of the FDA, including current Good Clinical
Practices and Good Laboratory Practices, and all applicable foreign regulatory
requirements and standards. Except as described in the Registration Statement,
the General Disclosure Package and the Prospectus or except as would not, singly
or in the aggregate, result in a Material Adverse Effect, the Company has not
received any notices or correspondence from the FDA or any other Governmental
Entity requiring the termination, suspension or material modification of any
studies, tests or preclinical or clinical trials conducted by or on behalf of
the Company.</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Title to Property</FONT></U><FONT face="Times New Roman" size=2>. The Company does
not own any real property. The Company has good title to all personal property
owned by it that is material to the business of the Company, in each case, free
and clear of all mortgages, pledges, liens, security interests, claims,
restrictions or encumbrances of any kind except such as (A) are described in the
Registration Statement, the General Disclosure Package and the Prospectus or (B)
do not, singly or in the aggregate, materially affect the value of such property
and do not interfere with the use made and proposed to be made of such property
by the Company; and all of the leases and subleases material to the business of
the Company, and under which the Company holds properties described in the
Registration Statement, the General Disclosure Package or the Prospectus, are in
full force and effect, and the Company has not received any notice of any
material claim of any sort that has been asserted by anyone adverse to the
rights of the Company under any of the leases or subleases mentioned above, or
affecting or questioning the rights of the Company to the continued possession
of the leased or subleased premises under any such lease or sublease.
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxiii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Possession of Intellectual Property</FONT></U><FONT face="Times New Roman" size=2>.
The Company owns or possesses sufficient rights to use all trademarks, service
marks, trade names (including all goodwill associated with the foregoing),
patent rights, copyrights, domain names, licenses, approvals, trade secrets,
inventions, technology, know-how and other intellectual property and similar
rights, including registrations and applications for registration thereof
(collectively, &#147;</FONT><B><FONT face="Times New Roman" size=2>Intellectual
Property</FONT></B><FONT face="Times New Roman" size=2> </FONT><B><FONT face="Times New Roman" size=2>Rights</FONT></B><FONT face="Times New Roman" size=2>&#148;) material to the conduct of
the business now conducted or proposed in the Registration Statement, the
General Disclosure Package or the Prospectus to be conducted by it. Each
material patent application owned by or exclusively licensed to the Company is
being diligently prosecuted, and each material issued patent owned by or
exclusively licensed to the Company is being diligently maintained. To the
Company&#146;s knowledge, the Company has not materially infringed, misappropriated
or otherwise violated the Intellectual Property Rights of any third party, and
to the Company&#146;s knowledge, neither the manufacture of, nor the use or sale of,
any of the product candidates described in the Registration Statement, the
General Disclosure Package or the Prospectus, would materially infringe or
otherwise violate the Intellectual Property Rights of any third party. Except as
would not, individually or in the aggregate, have a Material Adverse Effect, (i)
there are no rights of third parties to any of the Intellectual Property Rights
owned or purported to be owned by the Company, (ii) there is, to the Company&#146;s
knowledge, no infringement, misappropriation, breach, default or other
violation, or the occurrence of any event that with notice or the passage of
time would constitute any of the foregoing, by any third party of any
Intellectual Property Rights of the Company, (iii) none of the Intellectual
Property Rights used or held for use by the Company in its business has been
obtained or is being used or held for use by the Company in violation of any
contractual obligation binding on the Company or, to the Company&#146;s knowledge, in
violation of any rights of any third party, (iv) the Company has taken
reasonable steps in accordance with normal industry practice to maintain the
confidentiality of all Intellectual Property Rights the value of which to the
Company is contingent upon maintaining the confidentiality thereof, and (v) to
the Company&#146;s knowledge, all Intellectual Property Rights owned by or
exclusively licensed to the Company, except patents that have expired or are
expected to expire prior to the expected time of imetelstat product
commercialization; are valid and enforceable. Except as would not, if determined
adversely to the Company, individually or in the aggregate, have a Material
Adverse Effect, there is no pending or threatened action, suit, proceeding or
claim by any third party (x) challenging the Company&#146;s rights in or to, or
alleging the violation of any of the terms of, any of its Intellectual Property
Rights, (y) challenging the validity, enforceability or scope of any
Intellectual Property Rights owned by or exclusively licensed to the Company, or
(z) alleging that the Company has infringed, misappropriated or otherwise
violated or conflicted with any Intellectual Property Rights of any third party,
and in the case of each of (x), (y) and (z) above, the Company is unaware of any
fact which would form a reasonable basis for any such action, suit, proceeding
or claim.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>8 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxiv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Environmental Laws</FONT></U><FONT face="Times New Roman" size=2>. Except as
described in the Registration Statement, the General Disclosure Package and the
Prospectus or except as would not, singly or in the aggregate, result in a
Material Adverse Effect, (A) the Company is not in violation of any federal,
state, local or foreign statute, law, rule, regulation, ordinance, code, policy
or rule of common law or any judicial or administrative interpretation thereof,
including any judicial or administrative order, consent, decree or judgment,
relating to pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or
subsurface strata) or wildlife, including, without limitation, laws and
regulations relating to the release or threatened release of chemicals,
pollutants, contaminants, wastes, toxic substances, hazardous substances,
petroleum or petroleum products, asbestos-containing materials or mold
(collectively, &#147;Hazardous Materials&#148;) or to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials (collectively, &#147;Environmental Laws&#148;), (B) the Company has
all permits, authorizations and approvals required under any applicable
Environmental Laws and is in compliance with their requirements, (C) there are
no pending or, to the Company&#146;s knowledge, threatened administrative, regulatory
or judicial actions, suits, demands, demand letters, claims, liens, notices of
noncompliance or violation, investigation or proceedings relating to any
Environmental Law against the Company and (D) to the Company&#146;s knowledge, there
are no events or circumstances that would reasonably be expected to form the
basis of an order for clean-up or remediation, or an action, suit or proceeding
by any private party or Governmental Entity, against or affecting the Company
relating to Hazardous Materials or any Environmental Laws. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Health Care Laws</FONT></U><FONT face="Times New Roman" size=2>. Except as described
in the Registration Statement, the General Disclosure Package and the
Prospectus, neither the Company nor any of its business operations is in
violation of any Health Care Laws, except where the failure to be in compliance
would not, individually or in the aggregate, result in a Material Adverse
Effect. For purposes of this Agreement, &#147;Health Care Laws&#148; means (A) the Federal
Food, Drug, and Cosmetic Act, and the regulations promulgated thereunder, (B)
federal and state fraud and abuse laws, including, the federal Anti-Kickback
Statute (42 U.S.C. &#167;1320a-7b(b)), the Stark Law (42 U.S.C. &#167;1395nn), the civil
False Claims Act (31 U.S.C. &#167;3729 </FONT><I><FONT face="Times New Roman" size=2>et
seq</FONT></I><FONT face="Times New Roman" size=2>.), Sections 1320a-7 and 1320a-7a of Title
42 of the United States Code and the regulations promulgated pursuant to such
statutes, (C) the administrative simplification provisions of the Health
Insurance Portability and Accountability Act of 1996 (18 U.S.C. &#167;&#167;669, 1035,
1347 and 1518; 42 U.S.C. &#167;1320d </FONT><I><FONT face="Times New Roman" size=2>et
seq</FONT></I><FONT face="Times New Roman" size=2>.) and the regulations promulgated
thereunder, (D) Titles XVII (42 U.S.C. &#167;1395 </FONT><I><FONT face="Times New Roman" size=2>et seq</FONT></I><FONT face="Times New Roman" size=2>.) and XIX (42 U.S.C. &#167;1396
</FONT><I><FONT face="Times New Roman" size=2>et seq</FONT></I><FONT face="Times New Roman" size=2>.) of
the Social Security Act and the regulations promulgated thereunder, (E) the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (42
U.S.C. &#167;1395w-101 </FONT><I><FONT face="Times New Roman" size=2>et seq</FONT></I><FONT face="Times New Roman" size=2>.) and the regulations promulgated thereunder, (F) the Patient
Protection and Affordable Care Act, (G) all statutes, rules or regulations
applicable to the ownership, testing, development, manufacture, quality, safety,
accreditation, packaging, use, distribution, labeling, promotion, sale, offer
for sale, import, export or disposal of any product manufactured or distributed
by the Company and (H) any and all other health care laws and regulations
applicable to the business of the Company as currently conducted by it as
described in the Registration Statement, the General Disclosure Package and the
Prospectus, each of (A) through (H) as may be amended from time to
time.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>9 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxvi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Accounting Controls and Disclosure Controls</FONT></U><FONT face="Times New Roman" size=2>. The Company maintains effective internal control over financial
reporting (as defined under Rule 13-a15 and 15d-15 under the 1934 Act
Regulations) and a system of internal accounting controls sufficient to provide
reasonable assurances that: (A) transactions are executed in accordance with
management&#146;s general or specific authorization; (B) transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP
and to maintain accountability for assets; (C) access to assets is permitted
only in accordance with management&#146;s general or specific authorization; and (D)
the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. The interactive data in eXtensible Business Reporting Language
incorporated by reference in the Registration Statement, the General Disclosure
Package and the Prospectus fairly presents the information called for in all
material respects and is prepared in accordance with the Commission's rules and
guidelines applicable thereto. Except as described in the Registration
Statement, the General Disclosure Package and the Prospectus, since the end of
the Company&#146;s most recent audited fiscal year, there has been (1) no material
weakness in the Company&#146;s internal control over financial reporting (whether or
not remediated) and (2) no change in the Company&#146;s internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company&#146;s internal control over financial reporting. The
Company maintains an effective system of disclosure controls and procedures (as
defined in Rule 13a-15 and Rule 15d-15 under the 1934 Act Regulations) that are
designed to ensure that information required to be disclosed by the Company in
the reports that it files or submits under the 1934 Act is recorded, processed,
summarized and reported, within the time periods specified in the Commission&#146;s
rules and forms, and is accumulated and communicated to the Company&#146;s
management, including its principal executive officer or officers and principal
financial officer or officers, as appropriate, to allow timely decisions
regarding disclosure. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxvii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Payment of Taxes</FONT></U><FONT face="Times New Roman" size=2>. All United States
federal income tax returns of the Company and its subsidiaries required by law
to be filed have been filed and all taxes shown by such returns or otherwise
assessed, which are due and payable, have been paid, except assessments against
which appeals have been or will be promptly taken and as to which adequate
reserves have been provided. The United States federal income tax returns of the
Company through the fiscal year ended December 31, 2012 have been settled and no
assessment in connection therewith has been made against the Company. The
Company and its subsidiaries have filed all other tax returns that are required
to have been filed by them pursuant to applicable foreign, state, local or other
law except insofar as the failure to file such returns would not result in a
Material Adverse Effect, and has paid all taxes due pursuant to such returns or
pursuant to any assessment received by the Company and its subsidiaries, except
for such taxes, if any, as are being contested in good faith and as to which
adequate reserves have been established by the Company. The charges, accruals
and reserves on the books of the Company in respect of any income and
corporation tax liability for any years not finally determined are adequate to
meet any assessments or re-assessments for additional income tax for any years
not finally determined, except to the extent of any inadequacy that would not
result in a Material Adverse Effect.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>10 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxviii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Insurance</FONT></U><FONT face="Times New Roman" size=2>. The Company carries or is
entitled to the benefits of insurance, with financially sound and reputable
insurers, in such amounts and covering such risks as is generally maintained by
companies of established repute engaged in the same or similar business, and all
such insurance is in full force and effect. The Company has no reason to believe
that it will not be able (A) to renew its existing insurance coverage as and
when such policies expire or (B) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now
conducted and at a cost that would not result in a Material Adverse Effect. The
Company has not been denied any material insurance coverage which it has sought
or for which it has applied.</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxix)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Investment Company Act</FONT></U><FONT face="Times New Roman" size=2>. The Company is
not required, and upon the issuance and sale of the Securities as herein
contemplated and the application of the net proceeds therefrom as described in
the Registration Statement, the General Disclosure Package and the Prospectus
will not be required, to register as an &#147;investment company&#148; under the
Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;). </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxx)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Absence of Manipulation</FONT></U><FONT face="Times New Roman" size=2>. Neither the
Company nor any affiliate of the Company has taken, nor will the Company or any
affiliate take, directly or indirectly, any action which is designed, or would
be expected, to cause or result in, or which constitutes, the stabilization or
manipulation of the price of any security of the Company to facilitate the sale
or resale of the Securities or to result in a violation of Regulation M under
the 1934 Act. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxxi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Foreign Corrupt Practices Act</FONT></U><FONT face="Times New Roman" size=2>. None of
the Company, any of its subsidiaries or, to the knowledge of the Company, any
director, officer, agent, employee, affiliate or other person acting on behalf
of the Company or any of its subsidiaries is aware of or has taken any action,
directly or indirectly, that would result in a violation by such persons of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder (the &#147;FCPA&#148;), including, without limitation, making use of the mails
or any means or instrumentality of interstate commerce corruptly in furtherance
of an offer, payment, promise to pay or authorization of the payment of any
money, or other property, gift, promise to give, or authorization of the giving
of anything of value to any &#147;foreign official&#148; (as such term is defined in the
FCPA) or any foreign political party or official thereof or any candidate for
foreign political office, in contravention of the FCPA and the Company and, to
the knowledge of the Company, its affiliates have conducted their businesses in
compliance with the FCPA and have instituted and maintain policies and
procedures designed to ensure, and which are reasonably expected to continue to
ensure, continued compliance therewith. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxxii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Money Laundering Laws</FONT></U><FONT face="Times New Roman" size=2>. The operations
of the Company and its subsidiaries are and have been conducted at all times in
compliance with applicable financial recordkeeping and reporting requirements of
the Currency and Foreign Transactions Reporting Act of 1970, as amended, the
money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any Governmental Entity (collectively, the &#147;Money
Laundering Laws&#148;); and no action, suit or proceeding by or before any
Governmental Entity involving the Company or any of its subsidiaries with
respect to the Money Laundering Laws is pending or, to the best knowledge of the
Company, threatened.</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxxiii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>OFAC</FONT></U><FONT face="Times New Roman" size=2>. None of the Company, any of its
subsidiaries or, to the knowledge of the Company, any director, officer, agent,
employee, affiliate or representative of the Company or any of its subsidiaries
is an individual or entity (&#147;Person&#148;) currently the subject or target of any
sanctions administered or enforced by the United States Government, including,
without limitation, the U.S. Department of the Treasury&#146;s Office of Foreign
Assets Control (&#147;OFAC&#148;), the United Nations Security Council (&#147;UNSC&#148;), the
European Union, Her Majesty&#146;s Treasury (&#147;HMT&#148;), or other relevant sanctions
authority (collectively, &#147;Sanctions&#148;), nor is the Company located, organized or
resident in a country or territory that is the subject of Sanctions; and the
Company will not directly or indirectly use the proceeds of the sale of the
Securities, or lend, contribute or otherwise make available such proceeds to any
subsidiaries, joint venture partners or other Person, to fund any activities of
or business with any Person, or in any country or territory, that, at the time
of such funding, is the subject of Sanctions or in any other manner that will
result in a violation by any Person (including any Person participating in the
transaction, whether as underwriter, advisor, investor or otherwise) of
Sanctions.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>11 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxxiv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Lending Relationship</FONT></U><I><FONT face="Times New Roman" size=2>.
</FONT></I><FONT face="Times New Roman" size=2>Except as disclosed in the Registration
Statement, the General Disclosure Package and the Prospectus, the Company (i)
does not have any material lending or other relationship with any bank or
lending affiliate of any Underwriter and (ii) does not intend to use any of the
proceeds from the sale of the Securities to repay any outstanding debt owed to
any affiliate of any Underwriter. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxxv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Statistical and Market-Related Data</FONT></U><FONT face="Times New Roman" size=2>.
Any statistical and market-related data included in the Registration Statement,
the General Disclosure Package or the Prospectus are based on or derived from
sources that the Company believes, after reasonable inquiry, to be reliable and
accurate and, to the extent required, the Company has obtained the written
consent to the use of such data from such sources. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xxxvi)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>No Rated Securities</FONT></U><FONT face="Times New Roman" size=2>. The Company has
no debt securities or preferred stock that is rated by any &#147;nationally
recognized statistical rating agency&#148; (as that term is defined by the Commission
for purposes of Rule 436(g)(2) under the 1933 Act).<SUP> </SUP></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Officer&#146;s Certificates</FONT></I><FONT face="Times New Roman" size=2>. Any
certificate signed by any officer of the Company delivered to the Representative
or to counsel for the Underwriters shall be deemed a representation and warranty
by the Company to each Underwriter as to the matters covered thereby.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 2.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Sale and Delivery to Underwriters; Closing</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Initial Securities</FONT></I><FONT face="Times New Roman" size=2>. On the basis of
the representations and warranties herein contained and subject to the terms and
conditions herein set forth, the Company agrees to sell to each Underwriter,
severally and not jointly, and each Underwriter, severally and not jointly,
agrees to purchase from the Company, at the price per share set forth in
Schedule A the number of Initial Securities set forth in Schedule A opposite the
name of such Underwriter, plus any additional number of Initial Securities which
such Underwriter may become obligated to purchase pursuant to the provisions of
Section 10 hereof, subject, in each case, to such adjustments among the
Underwriters as the Representative in its sole discretion shall make to
eliminate any sales or purchases of fractional shares. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Option Securities</FONT></I><FONT face="Times New Roman" size=2>. In addition, on the
basis of the representations and warranties herein contained and subject to the
terms and conditions herein set forth, the Company hereby grants an option to
the Underwriters, severally and not jointly, to purchase up to an additional 3,375,000 shares of
Common Stock for the sole purpose of covering sales of shares in excess of the Initial Securities, at the price per share set forth in Schedule A, less an amount per
share equal to any dividends or distributions declared by the Company and
payable on the Initial Securities but not payable on the Option Securities. The
option hereby granted may be exercised for 30 days after the date hereof upon notice by
the Representative to the Company setting forth the number of Option Securities
as to which the several Underwriters are then exercising the option and the time
and date of payment and delivery for such Option Securities. Any such time and
date of delivery (a &#147;Date of Delivery&#148;) shall be determined by the
Representative, but shall not be later than seven full business days after the
exercise of said option, nor in any event prior to the Closing Time. If the
option is exercised as to all or any portion of the Option Securities, each of
the Underwriters, acting severally and not jointly, will purchase that
proportion of the total number of Option Securities then being purchased which
the number of Initial Securities set forth in Schedule A opposite the name of
such Underwriter bears to the total number of Initial Securities, subject, in
each case, to such adjustments as the Representative in its sole discretion
shall make to eliminate any sales or purchases of fractional shares.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>12 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Payment</FONT></I><FONT face="Times New Roman" size=2>. Payment of the purchase price
for, and delivery of certificates for, the Initial Securities shall be made at
the offices of Davis Polk &amp; Wardwell LLP, 1600 El Camino Real, Menlo Park,
California 94025, or at such other place as shall be agreed upon by the
Representative and the Company, at 9:00 A.M. (New York City time) on the third
(fourth, if the pricing occurs after 4:30 P.M. (New York City time) on any given
day) business day after the date hereof (unless postponed in accordance with the
provisions of Section 10), or such other time not later than ten business days
after such date as shall be agreed upon by the Representative and the Company
(such time and date of payment and delivery being herein called the &#147;Closing
Time&#148;). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, in the event that any or all of the Option Securities are
purchased by the Underwriters, payment of the purchase price for, and delivery
of certificates for, such Option Securities shall be made at the above-mentioned
offices, or at such other place as shall be agreed upon by the Representative
and the Company, on each Date of Delivery as specified in the notice from the
Representative to the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Payment shall be made to the Company by wire transfer of immediately
available funds to a bank account designated by the Company against delivery to
the Representative for the respective accounts of the Underwriters of
certificates for the Securities to be purchased by them. It is understood that
each Underwriter has authorized the Representative, for its account, to accept
delivery of, receipt for, and make payment of the purchase price for, the
Initial Securities and the Option Securities, if any, which it has agreed to
purchase. The Representative, individually and not as representative of the
Underwriters, may (but shall not be obligated to) make payment of the purchase
price for the Initial Securities or the Option Securities, if any, to be
purchased by any Underwriter whose funds have not been received by the Closing
Time or the relevant Date of Delivery, as the case may be, but such payment
shall not relieve such Underwriter from its obligations hereunder. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 3.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Covenants of the Company</FONT></U><FONT face="Times New Roman" size=2>. The Company
covenants with each Underwriter as follows: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Compliance with Securities Regulations and Commission
Requests</FONT></I><FONT face="Times New Roman" size=2>. The Company, subject to Section
3(b), will comply with the requirements of Rule 430B, and will notify the
Representative immediately, and confirm the notice in writing, (i) when any
post-effective amendment to the Registration Statement shall become effective or
any amendment or supplement to the Prospectus shall have been filed, (ii) of the
receipt of any comments from the Commission, (iii) of any request by the
Commission for any amendment to the Registration Statement or any amendment or
supplement to the Prospectus, including any document incorporated by reference
therein or for additional information, (iv) of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement or any
post-effective amendment or of any order preventing or suspending the use of any
preliminary prospectus or the Prospectus, or of the suspension of the
qualification of the Securities for offering or sale in any jurisdiction, or of
the initiation or threatening of any proceedings for any of such purposes or of
any examination pursuant to Section 8(d) or 8(e) of the 1933 Act concerning the
Registration Statement and (v) if the Company becomes the subject of a
proceeding under Section 8A of the 1933 Act in connection with the offering of
the Securities. The Company will effect all filings required under Rule 424(b),
in the manner and within the time period required by Rule 424(b) (without
reliance on Rule 424(b)(8)), and will take such steps as it deems necessary to
ascertain promptly whether the form of prospectus transmitted for filing under
Rule 424(b) was received for filing by the Commission and, in the event that it
was not, it will promptly file such prospectus. The Company will make every
reasonable effort to prevent the issuance of any stop order, prevention or
suspension and, if any such order is issued, to obtain the lifting thereof at
the earliest possible moment. The Company shall pay the required Commission
filing fees relating to the Securities within the time required by Rule 456(a)
and 457(o) under the 1933 Act Regulations.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>13 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Continued Compliance with Securities Laws</FONT></I><FONT face="Times New Roman" size=2>. The Company will comply with the 1933 Act, the 1933 Act Regulations,
the 1934 Act and the 1934 Act Regulations so as to permit the completion of the
distribution of the Securities as contemplated in this Agreement and in the
Registration Statement, the General Disclosure Package and the Prospectus. If at
any time when a prospectus relating to the Securities is (or, but for the
exception afforded by Rule 172 of the 1933 Act Regulations (&#147;Rule 172&#148;), would
be) required by the 1933 Act to be delivered in connection with sales of the
Securities, any event shall occur or condition shall exist as a result of which
it is necessary, in the opinion of counsel for the Underwriters or for the
Company, to (i) amend the Registration Statement in order that the Registration
Statement will not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, (ii) amend or supplement the General
Disclosure Package or the Prospectus in order that the General Disclosure
Package or the Prospectus, as the case may be, will not include any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein not misleading in the light of the circumstances
existing at the time it is delivered to a purchaser or (iii) amend the
Registration Statement or amend or supplement the General Disclosure Package or
the Prospectus, as the case may be, in order to comply with the requirements of
the 1933 Act or the 1933 Act Regulations, the Company will promptly (A) give the
Representative notice of such event, (B) prepare any amendment or supplement as
may be necessary to correct such statement or omission or to make the
Registration Statement, the General Disclosure Package or the Prospectus comply
with such requirements and, a reasonable amount of time prior to any proposed
filing or use, furnish the Representative with copies of any such amendment or
supplement and (C) file with the Commission any such amendment or supplement;
provided that the Company shall not file or use any such amendment or supplement
to which the Representative or counsel for the Underwriters shall object. The
Company will furnish to the Underwriters such number of copies of such amendment
or supplement as the Underwriters may reasonably request. The Company has given
the Representative notice of any filings made pursuant to the 1934 Act or 1934
Act Regulations within 48 hours prior to the Applicable Time; the Company will
give the Representative notice of its intention to make any such filing from the
Applicable Time to the Closing Time and will furnish the Representative with
copies of any such documents a reasonable amount of time prior to such proposed
filing, as the case may be, and will not file or use any such document to which
the Representative or counsel for the Underwriters shall reasonably object.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Delivery of Registration Statements</FONT></I><FONT face="Times New Roman" size=2>.
If requested, the Company has furnished or will deliver to the Representative
and counsel for the Underwriters, without charge, signed copies of the
Registration Statement as originally filed and each amendment thereto (including
exhibits filed therewith) and signed copies of all consents and certificates of
experts, and will also deliver to the Representative, without charge, a
conformed copy of the Registration Statement as originally filed and each
amendment thereto (without exhibits) for each of the Underwriters. The copies of
the Registration Statement and each amendment thereto furnished to the
Underwriters will be identical to the electronically transmitted copies thereof
filed with the Commission pursuant to EDGAR, except to the extent permitted by
Regulation S-T. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>14 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Delivery of Prospectuses</FONT></I><FONT face="Times New Roman" size=2>. The Company
has delivered to each Underwriter, without charge, as many copies of each
preliminary prospectus as such Underwriter reasonably requested, and the Company
hereby consents to the use of such copies for purposes permitted by the 1933
Act. The Company will furnish to each Underwriter, without charge, during the
period when a prospectus relating to the Securities is (or, but for the
exception afforded by Rule 172, would be) required to be delivered under the
1933 Act, such number of copies of the Prospectus (as amended or supplemented)
as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Blue
Sky Qualifications</FONT></I><FONT face="Times New Roman" size=2>. The Company will use its
reasonable best efforts, in cooperation with the Underwriters, to qualify the
Securities for offering and sale under the applicable securities laws of such
states and other jurisdictions (domestic or foreign) as the Representative may
designate and to maintain such qualifications in effect so long as required to
complete the distribution of the Securities; provided, however, that the Company
shall not be obligated to file any general consent to service of process or to
qualify as a foreign corporation or as a dealer in securities in any
jurisdiction in which it is not so qualified or to subject itself to taxation in
respect of doing business in any jurisdiction in which it is not otherwise so
subject. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(f)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Rule
158</FONT></I><FONT face="Times New Roman" size=2>. The Company will timely file such
reports pursuant to the 1934 Act as are necessary in order to make generally
available to its securityholders as soon as practicable an earnings statement
for the purposes of, and to provide to the Underwriters the benefits
contemplated by, the last paragraph of Section 11(a) of the 1933 Act.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(g)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Use
of Proceeds</FONT></I><FONT face="Times New Roman" size=2>. The Company will use the net
proceeds received by it from the sale of the Securities in the manner specified
in the General Disclosure Package and the Prospectus under &#147;Use of Proceeds.&#148;
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(h)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Listing</FONT></I><FONT face="Times New Roman" size=2>. The Company will use its best
efforts to effect and maintain the listing of the Securities on the NASDAQ
Global Select Market.&nbsp;</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>15 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)<FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Restriction
on Sale of Securities. </FONT></I><FONT face="Times New Roman" size=2>During a period of 60
days from the date of the Prospectus, the Company will not, without the prior
written consent of the Representative, (i) directly or indirectly, offer,
pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase or otherwise transfer or dispose of any shares of Common Stock or any
securities convertible into or exercisable or exchangeable for Common Stock or
file any registration statement under the 1933 Act with respect to any of the
foregoing or (ii) enter into any swap or any other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic
consequence of ownership of the Common Stock, whether any such swap or
transaction described in clause (i) or (ii) above is to be settled by delivery
of Common Stock or such other securities, in cash or otherwise. The foregoing
sentence shall not apply to (A) the Securities to be sold hereunder, (B) any
shares of Common Stock issued by the Company upon the exercise, settlement or
vesting of any warrant, right, option, restricted stock unit or other equity
award, or the conversion of a security outstanding on the date hereof and
referred to in the Registration Statement, the General Disclosure Package and
the Prospectus, (C) any shares of Common Stock issued, or any options to
purchase Common Stock, restricted stock units or other equity awards granted, in
each case pursuant to existing equity compensation plans or arrangements of the
Company referred to in the Registration Statement, the General Disclosure
Package and the Prospectus, (D) any shares of Common Stock issued pursuant to
existing defined-contribution savings plans under Section 401(k) of the Internal
Revenue Code (including any shares issued as Company matching contributions)
referred to in the Registration Statement, the General Disclosure Package and
the Prospectus, (E) any shares of Common Stock issued </FONT>pursuant to any
non-employee director stock plan or dividend reinvestment plan referred to in
the Registration Statement, the General Disclosure Package and the Prospectus,
(F) any shares of Common Stock issued to one or more counterparties in
connection with the consummation of any strategic partnership, joint venture,
collaboration or other strategic transaction, or the acquisition or license of
any business products or technology, provided that the aggregate number of
shares that the Company may sell or issue or agree to sell or issue pursuant to
this clause (F) shall not exceed 5% of the total number of shares of the
Company&#146;s Common Stock issued and outstanding immediately following the
completion of the transactions contemplated by this Agreement, or (G) the filing
of any registration statement on Form S-8 (including any post-amendments to any
such registration statement) in respect of any equity compensation plans or
arrangements maintained by the Company. Notwithstanding the foregoing, if (1)
during the last 17 days of the 60-day restricted period the Company issues an
earnings release or material news or a material event relating to the Company
occurs or (2) prior to the expiration of the 60-day restricted period, the
Company announces that it will issue an earnings release or becomes aware that
material news or a material event will occur during the 16-day period beginning
on the last day of the 60-day restricted period, the restrictions imposed in
this clause (i) shall continue to apply until the expiration of the 18-day
period beginning on the date of the issuance of the earnings release or the
occurrence of the material news or material event, unless the Representative
waives, in writing, such extension; provided, however, that such extension will
not apply if, within three business days prior to the 15th calendar day before
the last day of the 60-day restricted period, (A) the Company delivers a
certificate to the Representative, signed by its Chief Financial Officer or
Chief Executive Officer, certifying on behalf of the Company that (i) the Common
Stock qualifies as &#147;actively traded securities&#148; (as defined in Regulation M),
(ii) the Company meets the applicable requirements of paragraph (a)(1) of Rule
139 under the 1933 Act in the manner contemplated by NASD Conduct Rule
2711(f)(4), and (iii) the provisions of NASD Conduct Rule 2711(f)(4) are not
applicable to any research reports relating to the Company published or
distributed by any of the Underwriters during the 15 days before or after the
last day of the 60-day restricted period (before giving effect to such
extension), and (B) the Representative concurs, in its reasonable judgment, with
such certification. In addition, notwithstanding anything to the contrary
contained in this Section 3(i), the Company shall be permitted to keep in effect
the At-the-Market Issuance Sales Agreement, dated October 8, 2012, by and
between the Company and MLV &amp; Co. LLC (the &#147;MLV Agreement&#148;) and the
prospectus supplement to the base prospectus included in the Registration
Statement related thereto, provided that pursuant to the terms of this Section
3(i), no sales of Common Stock under the MLV Agreement shall be made during the
60-day restricted period (as may be extended as set forth above).</FONT><I><FONT face="Times New Roman" size=2> </FONT></I></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(j)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Reporting Requirements</FONT></I><FONT face="Times New Roman" size=2>. The Company,
during the period when a Prospectus relating to the Securities is (or, but for
the exception afforded by Rule 172, would be) required to be delivered under the
1933 Act, will file all documents required to be filed with the Commission
pursuant to the 1934 Act within the time periods required by the 1934 Act and
1934 Act Regulations. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(k)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Issuer Free Writing Prospectuses</FONT></I><FONT face="Times New Roman" size=2>. The
Company agrees that, unless it obtains the prior written consent of the
Representative, it will not make any offer relating to the Securities that would
constitute an Issuer Free Writing Prospectus or that would otherwise constitute
a &#147;free writing prospectus,&#148; or a portion thereof, required to be filed by the
Company with the Commission or retained by the Company under Rule 433; provided
that the Representative will be deemed to have consented to the Issuer Free
Writing Prospectuses listed on Schedule B-2 hereto and any &#147;road show that is a
written communication&#148; within the meaning of Rule 433(d)(8)(i) that has been
reviewed by the Representative. The Company represents that it has treated or
agrees that it will treat each such free writing prospectus consented to, or
deemed consented to, by the Representative as an &#147;issuer free writing
prospectus,&#148; as defined in Rule 433, and that it has complied and will comply
with the applicable requirements of Rule 433 with respect thereto, including
timely filing with the Commission where required, legending and record keeping.
If at any time following issuance of an Issuer Free Writing Prospectus there
occurred or occurs an event or development as a result of which such Issuer Free
Writing Prospectus conflicted or would conflict with the information contained
in the Registration Statement, any preliminary prospectus or the Prospectus or
included or would include an untrue statement of a material fact or omitted or
would omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances existing at that subsequent time, not
misleading, the Company will promptly notify the Representative and will
promptly amend or supplement, at its own expense, such Issuer Free Writing
Prospectus to eliminate or correct such conflict, untrue statement or
omission.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>16 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 4.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Payment of Expenses</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Expenses</FONT></I><FONT face="Times New Roman" size=2>. The Company will pay or
cause to be paid all expenses incident to the performance of its obligations
under this Agreement, including (i) the preparation, printing and filing of the
Registration Statement (including financial statements and exhibits) as
originally filed and each amendment thereto, (ii) the preparation, printing and
delivery to the Underwriters of copies of each preliminary prospectus, each
Issuer Free Writing Prospectus and the Prospectus and any amendments or
supplements thereto and any costs associated with electronic delivery of any of
the foregoing by the Underwriters to investors, (iii) the preparation, issuance
and delivery of the certificates for the Securities to the Underwriters,
including any stock or other transfer taxes and any stamp or other duties
payable upon the sale, issuance or delivery of the Securities to the
Underwriters, (iv) the fees and disbursements of the Company&#146;s counsel,
accountants and other advisors, (v) the qualification of the Securities under
securities laws in accordance with the provisions of Section 3(e) hereof,
including filing fees and the reasonable and reasonably-documented fees and
disbursements, not to exceed $50,000, of counsel for the Underwriters in
connection therewith and in connection with the preparation of the Blue Sky
Survey and any supplement thereto, (vi) the fees and expenses of any transfer
agent or registrar for the Securities, (vii) the costs and expenses of the
Company relating to investor presentations on any &#147;road show&#148; undertaken in
connection with the marketing of the Securities, including without limitation,
expenses associated with the production of road show slides and graphics, fees
and expenses of any consultants engaged by the Company in connection with the
road show presentations, travel and lodging expenses of the representatives and
officers of the Company and any such consultants, and the cost of aircraft and
other transportation chartered in connection with the road show, (viii) the
filing fees incident to, and the reasonable and reasonably-documented fees and
disbursements, not to exceed $50,000, of counsel to the Underwriters in
connection with, the review by FINRA of the terms of the sale of the Securities,
(ix) the fees and expenses incurred in connection with the listing of the
Securities on the NASDAQ Global Select Market and (x) the costs and expenses
(including, without limitation, any damages or other amounts payable in
connection with legal or contractual liability) associated with the reforming of
any contracts for sale of the Securities made by the Underwriters caused by a
breach of the representation contained in the third sentence of Section
1(a)(ii). It is understood that except as provided by this Section 4(a) and
Section 4(b) hereof, the Underwriters will pay all of their costs and expenses,
including fees and disbursements of counsel to the Underwriters and any stock or
other transfer taxes and any stamp or other duties payable upon the sale,
issuance or delivery of the Securities by the Underwriters. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Termination of Agreement</FONT></I><FONT face="Times New Roman" size=2>. If this
Agreement is terminated by the Representative prior to the payment and delivery
of the Initial Securities in accordance with the provisions of Section 5 (other
than by reason of the failure to satisfy the condition set forth in Section
5(d)), Section 9(a)(i) or Section 9(a)(iii), the Company shall reimburse the
Underwriters for all of their out-of-pocket expenses actually incurred by them,
including the reasonable and reasonably-documented fees and disbursements of
counsel for the Underwriters.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Allocation of Expenses</FONT></I><FONT face="Times New Roman" size=2>. The provisions
of this Section shall not affect any agreement that the Company may make for the
sharing of such costs and expenses. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>17 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 5.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Conditions of Underwriters&#146; Obligations</FONT></U><FONT face="Times New Roman" size=2>. The obligations of the several Underwriters hereunder are subject to
the accuracy of the representations and warranties of the Company contained
herein or in certificates of any officer of the Company delivered pursuant to
the provisions hereof, to the performance by the Company of its covenants and
other obligations hereunder, and to the following further conditions:
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Effectiveness of Registration Statement</FONT></I><FONT face="Times New Roman" size=2>. The Registration Statement has become effective and, at the Closing
Time, no stop order suspending the effectiveness of the Registration Statement
or any post-effective amendment thereto has been issued under the 1933 Act, no
order preventing or suspending the use of any preliminary prospectus or the
Prospectus has been issued and no proceedings for any of those purposes have
been instituted or are pending or, to the Company&#146;s knowledge, contemplated; and
the Company has complied with each request (if any) from the Commission for
additional information. The Company shall have paid the required Commission
filing fees relating to the Securities in accordance with Rules 456(a) and
457(o) under the 1933 Act Regulations. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Opinion of Counsel for Company</FONT></I><FONT face="Times New Roman" size=2>. At the
Closing Time, the Representative shall have received the opinion and negative
assurance letter, each dated the Closing Time, of Cooley LLP, counsel for the
Company, in form and substance stating in effect the matters set forth on
Exhibit A hereto.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Opinion of Intellectual Property Counsel for Company</FONT></I><FONT face="Times New Roman" size=2>. At the Closing Time, the Representative shall have received
the opinion, dated the Closing Time, of Bozicevic, Field &amp; Francis LLP,
intellectual property counsel for the Company, in form and substance stating in
effect the matters set forth on Exhibit B hereto. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Opinion of Counsel for Underwriters</FONT></I><FONT face="Times New Roman" size=2>.
At the Closing Time, the Representative shall have received the opinion and
negative assurance letter, each dated the Closing Time, of Davis Polk &amp;
Wardwell LLP, counsel for the Underwriters, in form and substance satisfactory
to the Representative, together with signed or reproduced copies of such letter
for each of the other Underwriters. In giving such opinion such counsel may
rely, as to all matters governed by the laws of jurisdictions other than the law
of the State of New York, the General Corporation Law of the State of Delaware
and the federal securities laws of the United States, upon the opinions of
counsel satisfactory to the Representative. Such counsel may also state that,
insofar as such opinion involves factual matters, they have relied, to the
extent they deem proper, upon certificates of officers and other representatives
of the Company and certificates of public officials. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Officers&#146; Certificate</FONT></I><FONT face="Times New Roman" size=2>. At the Closing
Time, there shall not have been, since the date hereof or since the respective
dates as of which information is given in the Registration Statement, the
General Disclosure Package or the Prospectus, any material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company, whether or not arising in the ordinary course
of business, and the Representative shall have received a certificate of the
Chief Executive Officer or the President of the Company and of the chief
financial or chief accounting officer of the Company, dated the Closing Time, to
the effect that (i) there has been no such material adverse change, (ii) the
representations and warranties of the Company in this Agreement are true and
correct with the same force and effect as though expressly made at and as of the
Closing Time, (iii) the Company has complied with all agreements and satisfied
all conditions on its part to be performed or satisfied at or prior to the
Closing Time, and (iv) no stop order suspending the effectiveness of the
Registration Statement under the 1933 Act has been issued, no order preventing
or suspending the use of any preliminary prospectus or the Prospectus has been
issued and no proceedings for any of those purposes have been instituted or are
pending or, to their knowledge, contemplated. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>18 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(f)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Accountant&#146;s Comfort Letter</FONT></I><FONT face="Times New Roman" size=2>. At the
time of the execution of this Agreement, the Representative shall have received
from Ernst &amp; Young LLP a letter, dated such date, in form and substance
satisfactory to the Representative, together with signed or reproduced copies of
such letter for each of the other Underwriters containing statements and
information of the type ordinarily included in accountants&#146; &#147;comfort letters&#148; to
underwriters with respect to the financial statements and certain financial
information contained in the Registration Statement, the General Disclosure
Package and the Prospectus. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(g)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Bring-down Comfort Letter</FONT></I><FONT face="Times New Roman" size=2>. At the
Closing Time, the Representative shall have received from Ernst &amp; Young LLP
a letter, dated as of the Closing Time, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (f) of this
Section, except that the specified date referred to shall be a date not more
than three business days prior to the Closing Time. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(h)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>No
Objection</FONT></I><FONT face="Times New Roman" size=2>. The Company shall have filed a
Notification: Listing of Additional Shares with the NASDAQ Stock Market and
shall have received no objection thereto from the NASDAQ Stock
Market.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Lock-up Agreements</FONT></I><FONT face="Times New Roman" size=2>. At the date of
this Agreement, the Representative shall have received an agreement
substantially in the form of Exhibit C hereto signed by the persons listed on
Schedule C hereto. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(j)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Conditions to Purchase of Option Securities</FONT></I><FONT face="Times New Roman" size=2>. In the event that the Underwriters exercise their option provided in
Section 2(b) hereof to purchase all or any portion of the Option Securities, the
representations and warranties of the Company contained herein and the
statements in any certificates furnished by the Company hereunder shall be true
and correct as of each Date of Delivery and, at the relevant Date of Delivery,
the Representative shall have received: </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i) </FONT><U><FONT face="Times New Roman" size=2>Officers&#146;
Certificate</FONT></U><FONT face="Times New Roman" size=2>. A certificate, dated such Date
of Delivery, of the President or a Vice President of the Company and of the
chief financial or chief accounting officer of the Company confirming that the
certificate delivered at the Closing Time pursuant to Section 5(e) hereof
remains true and correct as of such Date of Delivery. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii) </FONT><U><FONT face="Times New Roman" size=2>Opinion of Counsel for
Company</FONT></U><FONT face="Times New Roman" size=2>. If requested by the Representative,
the favorable opinion of Cooley LLP, counsel for the Company, together with the
favorable opinion of Bozicevic, Field &amp; Francis LLP, intellectual property
counsel for the Company, each in form and substance satisfactory to counsel for
the Underwriters, dated such Date of Delivery, relating to the Option Securities
to be purchased on such Date of Delivery and otherwise to the same effect as the
opinions required by Sections 5(b) and 5(c) hereof. </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Opinion of Counsel for Underwriters</FONT></U><FONT face="Times New Roman" size=2>.
If requested by the Representative, the favorable opinion of Davis Polk &amp;
Wardwell LLP, counsel for the Underwriters, dated such Date of Delivery,
relating to the Option Securities to be purchased on such Date of Delivery and
otherwise to the same effect as the opinion required by Section 5(d) hereof.
</FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iv) </FONT><U><FONT face="Times New Roman" size=2>Bring-down Comfort
Letter</FONT></U><FONT face="Times New Roman" size=2>. If requested by the Representative, a
letter from Ernst &amp; Young LLP, in form and substance satisfactory to the
Representative and dated such Date of Delivery, substantially in the same form
and substance as the letter furnished to the Representative pursuant to Section
5(g) hereof, except that the &#147;specified date&#148; in the letter furnished pursuant
to this paragraph shall be a date not more than three business days prior to
such Date of Delivery. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>19 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(k)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Additional Documents</FONT></I><FONT face="Times New Roman" size=2>. At the Closing
Time and at each Date of Delivery (if any) counsel for the Underwriters shall
have been furnished with such documents and opinions as they may require for the
purpose of enabling them to pass upon the issuance and sale of the Securities as
herein contemplated, or in order to evidence the accuracy of any of the
representations or warranties, or the fulfillment of any of the conditions,
herein contained; and all proceedings taken by the Company in connection with
the issuance and sale of the Securities as herein contemplated shall be
reasonably satisfactory in form and substance to the Representative and counsel
for the Underwriters. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(l)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Termination of Agreement</FONT></I><FONT face="Times New Roman" size=2>. If any
condition specified in this Section shall not have been fulfilled when and as
required to be fulfilled, this Agreement, or, in the case of any condition to
the purchase of Option Securities on a Date of Delivery which is after the
Closing Time, the obligations of the several Underwriters to purchase the
relevant Option Securities, may be terminated by the Representative by notice to
the Company at any time at or prior to Closing Time or such Date of Delivery, as
the case may be, and such termination shall be without liability of any party to
any other party except as provided in Section 4 and except that Sections 1, 6,
7, 8, 14, 15 and 16 shall survive any such termination and remain in full force
and effect. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 6.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Indemnification</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Indemnification of Underwriters</FONT></I><FONT face="Times New Roman" size=2>. The
Company agrees to indemnify and hold harmless each Underwriter, its affiliates
(as such term is defined in Rule 501(b) under the 1933 Act (each, an
&#147;Affiliate&#148;)), its selling agents and each person, if any, who controls any
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as follows: </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement (or any
amendment thereto), including any information deemed to be a part thereof
pursuant to Rule 430B, or the omission or alleged omission therefrom of a
material fact required to be stated therein or necessary to make the statements
therein not misleading or arising out of any untrue statement or alleged untrue
statement of a material fact included (A) in any preliminary prospectus, any
Issuer Free Writing Prospectus, the General Disclosure Package or the Prospectus
(or any amendment or supplement thereto) or (B) in any materials or information
provided to investors by, or with the approval of, the Company in connection
with the marketing of the offering of the Common Stock (&#147;Marketing Materials&#148;),
including any roadshow or investor presentations made to investors by the
Company (whether in person or electronically), or the omission or alleged
omission in any preliminary prospectus, Issuer Free Writing Prospectus,
Prospectus or in any Marketing Materials of a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue
statement or omission; provided that (subject to Section 6(d) below) any such
settlement is effected with the written consent of the Company; </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii) against any and all expense whatsoever, as incurred (including the
fees and disbursements of counsel chosen by the Representative), reasonably
incurred in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under (i) or (ii) above;</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>20 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>provided, however, that this indemnity
agreement shall not apply to any loss, liability, claim, damage or expense to
the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in the Registration Statement (or any amendment
thereto), including any information deemed to be a part thereof pursuant to Rule
430B, the General Disclosure Package or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with the Underwriter
Information. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b) </FONT><I><FONT face="Times New Roman" size=2>Indemnification of Company,
Directors and Officers</FONT></I><FONT face="Times New Roman" size=2>. Each Underwriter
severally agrees to indemnify and hold harmless the Company, its directors, each
of its officers who signed the Registration Statement, and each person, if any,
who controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, against any and all loss, liability, claim, damage
and expense described in the indemnity contained in subsection (a) of this
Section, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Registration Statement
(or any amendment thereto), including any information deemed to be a part
thereof pursuant to Rule 430B, the General Disclosure Package or the Prospectus
(or any amendment or supplement thereto) in reliance upon and in conformity with
the Underwriter Information.</FONT><B><FONT face="Times New Roman" size=2> </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c) </FONT><I><FONT face="Times New Roman" size=2>Actions against Parties;
Notification</FONT></I><FONT face="Times New Roman" size=2>. Each indemnified party shall
give notice as promptly as reasonably practicable to each indemnifying party of
any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this indemnity
agreement. In the case of parties indemnified pursuant to Section 6(a) above,
counsel to the indemnified parties shall be selected by the Representative, and,
in the case of parties indemnified pursuant to Section 6(b) above, counsel to
the indemnified parties shall be selected by the Company. An indemnifying party
may participate at its own expense in the defense of any such action; provided,
however, that counsel to the indemnifying party shall not (except with the
consent of the indemnified party) also be counsel to the indemnified party. In
no event shall the indemnifying parties be liable for fees and expenses of more
than one counsel (in addition to one local counsel in any applicable
jurisdiction) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section 6 or Section 7 hereof (whether or not the indemnified parties
are actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or
a failure to act by or on behalf of any indemnified party. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d) </FONT><I><FONT face="Times New Roman" size=2>Settlement without Consent if
Failure to Reimburse</FONT></I><FONT face="Times New Roman" size=2>. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by
Section 6(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>21 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 7.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Contribution</FONT></U><FONT face="Times New Roman" size=2>. If the indemnification
provided for in Section 6 hereof is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses,
liabilities, claims, damages and expenses incurred by such indemnified party, as
incurred, (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company, on the one hand, and the Underwriters, on the
other hand, from the offering of the Securities pursuant to this Agreement or
(ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the
Company, on the one hand, and of the Underwriters, on the other hand, in
connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The relative benefits received by the Company, on the one hand, and the
Underwriters, on the other hand, in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Company, on the one hand, and the total underwriting discount received by
the Underwriters, on the other hand, in each case as set forth on the cover of
the Prospectus, bear to the aggregate initial public offering price of the
Securities as set forth on the cover of the Prospectus. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The relative fault of the Company, on the one hand, and the Underwriters,
on the other hand, shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Underwriters and the parties&#146; relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Company and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to above in this Section 7. The aggregate
amount of losses, liabilities, claims, damages and expenses incurred by an
indemnified party and referred to above in this Section 7 shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Notwithstanding the provisions of this Section 7, no Underwriter shall be
required to contribute any amount in excess of the underwriting commissions
received by such Underwriter in connection with the Securities underwritten by
it and distributed to the public.</FONT><B><FONT face="Times New Roman" size=2>
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>For purposes of this Section 7, each person, if any, who controls an
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act and each Underwriter&#146;s Affiliates and selling agents shall have the
same rights to contribution as such Underwriter, and each director of the
Company, each officer of the Company who signed the Registration Statement, and
each person, if any, who controls the Company within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to
contribution as the Company. The Underwriters&#146; respective obligations to
contribute pursuant to this Section 7 are several in proportion to the number of
Initial Securities set forth opposite their respective names in Schedule A
hereto and not joint.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>22 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 8.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Representations, Warranties and Agreements to Survive</FONT></U><FONT face="Times New Roman" size=2>. All representations, warranties and agreements contained in
this Agreement or in certificates of officers of the Company submitted pursuant
hereto, shall remain operative and in full force and effect regardless of (i)
any investigation made by or on behalf of any Underwriter or its Affiliates or
selling agents, any person controlling any Underwriter, its officers or
directors, any person controlling the Company and (ii) delivery of and payment
for the Securities. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 9.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Termination of Agreement</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Termination</FONT></I><FONT face="Times New Roman" size=2>. The Representative may
terminate this Agreement, by notice to the Company, at any time at or prior to
the Closing Time (i) if there has been, in the judgment of the Representative,
since the time of execution of this Agreement or since the respective dates as
of which information is given in the Registration Statement, the General
Disclosure Package or the Prospectus, any Material Adverse Effect, or (ii) if
there has occurred any material adverse change in the financial markets in the
United States or the international financial markets, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any change or
development involving a prospective change in national or international
political, financial or economic conditions, in each case the effect of which is
such as to make it, in the judgment of the Representative, impracticable or
inadvisable to proceed with the completion of the offering or to enforce
contracts for the sale of the Securities, or (iii) if trading in any securities
of the Company has been suspended or materially limited by the Commission or the
NASDAQ Global Select Market, or (iv) if trading generally on the NYSE Amex or
the New York Stock Exchange or in the NASDAQ Global Market has been suspended or
materially limited, or minimum or maximum prices for trading have been fixed, or
maximum ranges for prices have been required, by any of said exchanges or by
order of the Commission, FINRA or any other governmental authority, or (v) a
material disruption has occurred in commercial banking or securities settlement
or clearance services in the United States, or (vi) if a banking moratorium has
been declared by either Federal or New York authorities. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><I><FONT face="Times New Roman" size=2>Liabilities</FONT></I><FONT face="Times New Roman" size=2>. If this Agreement is
terminated pursuant to this Section, such termination shall be without liability
of any party to any other party except as provided in Section 4 hereof, and
provided further that Sections 1, 6, 7, 8, 14, 15 and 16 shall survive such
termination and remain in full force and effect. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 10.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Default by One or More of the Underwriters</FONT></U><FONT face="Times New Roman" size=2>. If one or more of the Underwriters shall fail at the Closing Time or a
Date of Delivery to purchase the Securities which it or they are obligated to
purchase under this Agreement (the &#147;Defaulted Securities&#148;), the Representative
shall have the right, within 24 hours thereafter, to make arrangements for one
or more of the non-defaulting Underwriters, or any other underwriters, to
purchase all, but not less than all, of the Defaulted Securities in such amounts
as may be agreed upon and upon the terms herein set forth; if, however, the
Representative shall not have completed such arrangements within such 24-hour
period, then: </FONT></P>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>if the
number of Defaulted Securities does not exceed 10% of the number of Securities
to be purchased on such date, each of the non-defaulting Underwriters shall be
obligated, severally and not jointly, to purchase the full amount thereof in the
proportions that their respective underwriting obligations hereunder bear to the
underwriting obligations of all non-defaulting Underwriters, or </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>23 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: justify; padding-left: 15pt"><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>if the
number of Defaulted Securities exceeds 10% of the number of Securities to be
purchased on such date, this Agreement or, with respect to any Date of Delivery
which occurs after the Closing Time, the obligation of the Underwriters to
purchase, and the Company to sell, the Option Securities to be purchased and
sold on such Date of Delivery shall terminate without liability on the part of
any non-defaulting Underwriter. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>No action taken pursuant to this Section shall relieve any defaulting
Underwriter from liability in respect of its default. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In the event of any such default which does not result in a termination
of this Agreement or, in the case of a Date of Delivery which is after the
Closing Time, which does not result in a termination of the obligation of the
Underwriters to purchase and the Company to sell the relevant Option Securities,
as the case may be, either the (i) Representative or (ii) the Company shall have
the right to postpone Closing Time or the relevant Date of Delivery, as the case
may be, for a period not exceeding seven days in order to effect any required
changes in the Registration Statement, the General Disclosure Package or the
Prospectus or in any other documents or arrangements. As used herein, the term
&#147;Underwriter&#148; includes any person substituted for an Underwriter under this
Section 10. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 11.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Notices</FONT></U><FONT face="Times New Roman" size=2>. All notices and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if mailed or transmitted by any standard form of telecommunication.
Notices to the Underwriters shall be directed to Merrill Lynch at One Bryant
Park, New York, New York 10036, attention of Syndicate Department (facsimile:
(646) 855-3073), with a copy to ECM Legal (facsimile: (212) 230-8730); notices
to the Company shall be directed to it at 149 Commonwealth Drive, Suite 2070,
Menlo Park, California 94025, attention of General Counsel (facsimile: (650)
473-7701), with a copy (which shall not constitute notice) to Cooley LLP, 3175
Hanover Street, Palo Alto, California 94304, attention of Chadwick L. Mills
(facsimile: (650) 849-7400). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 12.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>No Advisory or Fiduciary Relationship</FONT></U><FONT face="Times New Roman" size=2>.
The Company acknowledges and agrees that (a) the purchase and sale of the
Securities pursuant to this Agreement, including the determination of the
initial public offering price of the Securities and any related discounts and
commissions, is an arm&#146;s-length commercial transaction between the Company, on
the one hand, and the several Underwriters, on the other hand, (b) in connection
with the offering of the Securities and the process leading thereto, each
Underwriter is and has been acting solely as a principal and is not the agent or
fiduciary of the Company, or its stockholders, creditors, employees or any other
party, (c) no Underwriter has assumed or will assume an advisory or fiduciary
responsibility in favor of the Company with respect to the offering of the
Securities or the process leading thereto (irrespective of whether such
Underwriter has advised or is currently advising the Company on other matters)
and no Underwriter has any obligation to the Company with respect to the
offering of the Securities except the obligations expressly set forth in this
Agreement, (d) the Underwriters and their respective affiliates may be engaged
in a broad range of transactions that involve interests that differ from those
of the Company, and (e) the Underwriters have not provided any legal,
accounting, regulatory or tax advice with respect to the offering of the
Securities and the Company has consulted its own respective legal, accounting,
regulatory and tax advisors to the extent it deemed appropriate.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 13.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Parties</FONT></U><FONT face="Times New Roman" size=2>. This Agreement shall inure to
the benefit of and be binding upon the Underwriters, the Company and their
respective successors. Nothing expressed or mentioned in this Agreement is
intended or shall be construed to give any person, firm or corporation, other
than the Underwriters, the Company and their respective successors and the
controlling persons and officers and directors referred to in Sections 6 and 7
and their heirs and legal representatives, any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision herein
contained. This Agreement and all conditions and provisions hereof are intended
to be for the sole and exclusive benefit of the Underwriters, the Company and
their respective successors, and said controlling persons and officers and
directors and their heirs and legal representatives, and for the benefit of no
other person, firm or corporation. No purchaser of Securities from any
Underwriter shall be deemed to be a successor by reason merely of such
purchase.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 14.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Trial by Jury</FONT></U><FONT face="Times New Roman" size=2>. The Company and each of
the Underwriters hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 15.</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2><u>GOVERNING LAW</u>. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE
ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF, THE STATE OF NEW YORK WITHOUT REGARD TO ITS
CHOICE OF LAW PROVISIONS. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 16.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Consent to Jurisdiction; Waiver of Immunity</FONT></U><FONT face="Times New Roman" size=2>. Any legal suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated hereby (&#147;Related Proceedings&#148;) shall
be instituted in (i) the federal courts of the United States of America located
in the City and County of New York, Borough of Manhattan or (ii) the courts of
the State of New York located in the City and County of New York, Borough of
Manhattan (collectively, the &#147;Specified Courts&#148;), and each party irrevocably
submits to the exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a &#147;Related
Judgment&#148;), as to which such jurisdiction is non-exclusive) of such courts in
any such suit, action or proceeding. Service of any process, summons, notice or
document by mail to such party&#146;s address set forth above shall be effective
service of process for any suit, action or other proceeding brought in any such
court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such suit, action or other proceeding brought in any such
court has been brought in an inconvenient forum.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 17.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>TIME</FONT></U><FONT face="Times New Roman" size=2>. TIME SHALL BE OF THE ESSENCE OF
THIS AGREEMENT. EXCEPT AS OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY
REFER TO NEW YORK CITY TIME. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 18.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Counterparts</FONT></U><FONT face="Times New Roman" size=2>. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same
Agreement. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>SECTION 19.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Effect of Headings</FONT></U><FONT face="Times New Roman" size=2>. The Section
headings herein are for convenience only and shall not affect the construction
hereof. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>25 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>If the
foregoing is in accordance with your understanding of our agreement, please sign
and return to the Company a counterpart hereof, whereupon this instrument, along
with all counterparts, will become a binding agreement between the Underwriters
and the Company in accordance with its terms. </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2><FONT face="Times New Roman" size=2>Very truly yours,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2><FONT face="Times New Roman" size=2>GERON CORPORATION</FONT></TD></TR>
  <TR>
    <TD width="50%" colSpan=2>&nbsp;</TD>
    <TD width="49%" colSpan=2></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>By&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="48%"><FONT face="Times New Roman" size=2>/s/ Olivia Bloom</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="48%"><FONT size=2>Title: SVP, CFO</FONT></TD></TR>
<TR>
    <TD width="50%" colSpan=2>&nbsp;</TD>
    <TD width="49%" colSpan=2></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>CONFIRMED AND ACCEPTED,</FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      as of the date first above written:</FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2></TD></TR>
  <TR style="VERTICAL-ALIGN: bottom">
    <TD style="TEXT-ALIGN: left" noWrap width="50%" colSpan=2>&nbsp;&nbsp;</TD>
    <TD style="TEXT-ALIGN: left" noWrap width="49%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: left" noWrap width="50%" colSpan=2><FONT face="Times New Roman" size=2>MERRILL LYNCH, PIERCE, FENNER &amp;
      SMITH</FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2></TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: left" noWrap width="50%" colSpan=2><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCORPORATED</FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2></TD></TR>
  <TR>
    <TD width="50%" colSpan=2>&nbsp;</TD>
    <TD width="49%" colSpan=2></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>By&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="49%"><FONT face="Times New Roman" size=2>/s/ Bradley Wolff</FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2></TD></TR>
  <TR>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="49%"><FONT face="Times New Roman" size=2>Authorized Signatory</FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2></TD></TR></TABLE><BR>
<P align=justify><FONT face="Times New Roman" size=2>For itself and as Representative of the
other Underwriters named in Schedule A hereto. </FONT></P>
<P align=center><I><FONT face="Times New Roman" size=2>[Signature page to Underwriting
Agreement] </FONT></I></P>
<P align=center><FONT face="Times New Roman" size=2>26 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><FONT face="Times New Roman" size=2>SCHEDULE A </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The initial public offering price per
share for the Securities shall be $4.00. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The purchase price per share for the
Securities to be paid by the several Underwriters shall be $3.76, being an amount equal to the
initial public offering price set forth above less $0.24 per share, subject to adjustment in
accordance with Section 2(b) for dividends or distributions declared by the
Company and payable on the Initial Securities but not payable on the Option
Securities. </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>Number of</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face="Times New Roman" size=2>Name
      of Underwriter</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face="Times New Roman" size=2>Initial
  Securities</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Merrill Lynch, Pierce, Fenner &amp;
      Smith</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Incorporated</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2>10,125,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face="Times New Roman" size=2>Stifel, Nicolaus &amp; Company, Incorporated</FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=2>4,500,000</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 97%"><FONT face="Times New Roman" size=2>Lazard Capital Markets LLC</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT size=2>3,375,000</FONT></TD></TR>

  <TR>
    <TD NOWRAP STYLE="text-align: left; width: 97%"><FONT size=2>Piper Jaffray &amp; Co.</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT size=2>3,375,000</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 97%"><FONT face="Times New Roman" size=2>MLV &amp; Co., LLC</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT size=2>1,125,000</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap align=right width="3%"></TD></TR>
  <TR STYLE="background-color: Silver">
    <TD noWrap align=left width="97%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 97%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Total</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 2pt double; text-align: right; width: 3%"><FONT face="Times New Roman" size=2>22,500,000</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>Sch A - 1</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><FONT face="Times New Roman" size=2>SCHEDULE B-1 </FONT></P>
<P align=center><U><FONT face="Times New Roman" size=2>Pricing Terms</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>1. The Company is selling 22,500,000 shares of Common Stock. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>2. The Company has granted an option to
the Underwriters, severally and not jointly, to purchase up to an additional 3,375,000 shares of Common
Stock. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>3. The initial public offering price
per share for the Securities shall be $4.00.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>4. The estimated net proceeds to the Company are $84.0 million
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>&nbsp;</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SCHEDULE B-2</FONT></P>
<P align=center><U><FONT face="Times New Roman" size=2>Free Writing
Prospectuses</FONT></U></P>
<P STYLE="text-align: justify"><FONT face="Times New Roman" size=2>Free Writing Prospectus of the Company as filed with the Securities and Exchange Commission on January 30, 2014</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>Sch B - 1 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><FONT face="Times New Roman" size=2>SCHEDULE C </FONT></P>
<P align=center><U><FONT face="Times New Roman" size=2>List of Persons and Entities Subject
to Lock-up</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Melissa A. Kelly Behrs<BR>Daniel M.
Bradbury<BR>Olivia K. Bloom<BR>Karin Eastham<BR>Andrew J. Grethlein<BR>Thomas
Hofstaetter<BR>Hoyoung Huh<BR>V. Bryan Lawlis<BR>Susan M. Molineaux<BR>Craig C.
Parker<BR>Stephen N. Rosenfield<BR>John A. Scarlett<BR>Robert J. Spiegel
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>Sch C - 1 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><FONT face="Times New Roman" size=2>Exhibit A </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>FORM OF OPINION OF COMPANY&#146;S
COUNSEL<BR>TO BE DELIVERED PURSUANT TO SECTION 5(B) </FONT></P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman" size=2>A-1 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><FONT face="Times New Roman" size=2>Exhibit B </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>FORM OF OPINION OF COMPANY&#146;S
INTELLECTUAL PROPERTY COUNSEL<BR>TO BE DELIVERED PURSUANT TO SECTION 5(C)
</FONT></P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center><FONT size=2 face="Times New Roman"></FONT>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman" size=2>B-1 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><FONT face="Times New Roman" size=2>Exhibit C </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>FORM OF LOCK-UP AGREEMENT </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>January ___, 2014 </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Merrill Lynch, Pierce, Fenner &amp;
Smith<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT face="Times New Roman" size=2>Incorporated, </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>as Representative of the
several<BR>Underwriters to be named in the<BR>within-mentioned Underwriting
Agreement (the &#147;Underwriters&#148;) </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>One Bryant Park <BR></FONT><FONT face="Times New Roman" size=2>New York, New York 10036 </FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>Re:</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="96%"><U><FONT face="Times New Roman" size=2>Proposed Public Offering by Geron
      Corporation</FONT></U></TD></TR></TABLE><BR>
<P align=justify><FONT face="Times New Roman" size=2>Dear Sirs: </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The
undersigned, a stockholder and an officer and/or director of Geron Corporation,
a Delaware corporation (the &#147;Company&#148;), understands that Merrill Lynch, Pierce,
Fenner &amp; Smith Incorporated (the &#147;Representative&#148;) proposes to enter into an
Underwriting Agreement (the &#147;Underwriting Agreement&#148;) with the Company providing
for the public offering of shares (the &#147;Securities&#148;) of the Company&#146;s common
stock, par value $0.001 per share (the &#147;Common Stock&#148;). In recognition of the
benefit that such an offering will confer upon the undersigned as a stockholder
and an officer and/or director of the Company, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned agrees with each underwriter to be named in the Underwriting
Agreement that, during the period beginning on the date hereof and ending on the
date that is 60 days from the date of the Underwriting Agreement (subject to
extensions as discussed below), the undersigned will not, without the prior
written consent of the Representative, directly or indirectly, (i) offer,
pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant for
the sale of, or otherwise dispose of or transfer any shares of the Company&#146;s
Common Stock or any securities convertible into or exchangeable or exercisable
for Common Stock, whether now owned or hereafter acquired by the undersigned or
with respect to which the undersigned has or hereafter acquires the power of
disposition (collectively, the &#147;Lock-Up Securities&#148;), or exercise any right with
respect to the registration of any of the Lock-up Securities, under the
Securities Act of 1933, as amended, or (ii) enter into any swap or any other
agreement or any transaction that transfers, in whole or in part, directly or
indirectly, the economic consequence of ownership of the Lock-Up Securities,
whether any such swap or transaction is to be settled by delivery of Common
Stock or other securities, in cash or otherwise. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Notwithstanding the foregoing, and subject to the conditions in this
paragraph, the undersigned may transfer the Lock-Up Securities without the prior
written consent of the Representative, provided that (1) the Representative
receives a signed lock-up agreement for the balance of the lockup period from
each donee, trustee, distributee, or transferee, as the case may be, (2) any
such transfer shall not involve a disposition for value, (3) such transfers are
not required to be reported with the Securities and Exchange Commission on Form
4 in accordance with Section 16(a) (&#147;Section 16(a)&#148;) of the Securities Exchange
Act of 1934, as amended (the &#147;Exchange Act&#148;), during the lockup period and (4)
the undersigned does not otherwise voluntarily effect any public filing or
report regarding such transfers during the lockup period: </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>C-1 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>as a </FONT><I><FONT face="Times New Roman" size=2>bona fide </FONT></I><FONT face="Times New Roman" size=2>gift or gifts, or by
      will or intestate succession upon the death of the undersigned;
    or</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>to any trust for the direct or
      indirect benefit of the undersigned or the immediate family of the
      undersigned (for purposes of this lock-up agreement, &#147;immediate family&#148;
      shall mean any relationship by blood, marriage or adoption, not more
      remote than first cousin); or</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>as a distribution to limited
      partners or stockholders of the undersigned; or</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>to the undersigned&#146;s affiliates
      or to any investment fund or other entity controlled or managed by the
      undersigned.</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>Notwithstanding the foregoing, and
subject to the conditions in this paragraph, the undersigned may also transfer
the Lock-Up Securities without the prior written consent of the Representative
if any such transfers are made by the undersigned: (i) to satisfy tax
withholding obligations of the undersigned in connection with the vesting or
exercise of equity awards outstanding as of the date of the preliminary
prospectus by the undersigned pursuant to the Company&#146;s equity compensation
plans and arrangements; or (ii) pursuant to the conversion or sale of, or an
offer to purchase, all or substantially all of the outstanding Common Stock,
whether pursuant to a merger, tender offer or otherwise; </FONT><I><FONT face="Times New Roman" size=2>provided</FONT></I><FONT face="Times New Roman" size=2>, </FONT><I><FONT face="Times New Roman" size=2>however</FONT></I><FONT face="Times New Roman" size=2>, that in the case
of any transfer described in clause (i) of this paragraph, it shall be a
condition to the transfer that if the undersigned is required to file a report
under Section 16(a), the undersigned shall include a statement in such report to
the effect that such transfer is being made for tax withholding obligations; and
</FONT><I><FONT face="Times New Roman" size=2>provided further</FONT></I><FONT face="Times New Roman" size=2> that in the case of any conversion or sale described in clause (ii) of
this paragraph, in the event that such transaction is abandoned, the Lock-Up
Securities shall remain subject to the restrictions hereunder. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Furthermore,
the undersigned may sell shares of Common Stock of the Company purchased by the
undersigned on the open market following the Public Offering if and only if (i)
such sales are not required to be reported during the lockup period in any
public report or filing with the Securities Exchange Commission, or otherwise
and (ii) the undersigned does not otherwise voluntarily effect any public filing
or report regarding such sales during the lockup period. Notwithstanding
anything to the contrary herein, the undersigned shall be permitted to establish
a sales plan with respect to the Lock-Up Securities that satisfies the
requirements of Rule 10b5-1 under the Exchange Act (a &#147;10b5-1 Plan&#148;), at any
time during the lockup period; </FONT><I><FONT face="Times New Roman" size=2>provided
that</FONT></I><FONT face="Times New Roman" size=2>, (y) such plan does not permit transfers
or sales of Common Stock or any security convertible into Common Stock during
the lockup period and (z) the undersigned shall not make any public announcement
or filing under the Exchange Act with respect to such 10b5-1 Plan.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Notwithstanding the foregoing, if: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(1) during the last 17 days of the 60-day lockup period, the Company
issues an earnings release or material news or a material event relating to the
Company occurs; or</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(2) prior to the expiration of the 60-day lockup period, the Company
announces that it will release earnings results or becomes aware that material
news or a material event will occur during the 16-day period beginning on the
last day of the 60-day lockup period, </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>the restrictions imposed by this
lock-up agreement shall continue to apply until the expiration of the 18-day
period beginning on the issuance of the earnings release or the occurrence of
the material news or material event, as applicable, unless the Representative
waives, in writing, such extension; <I><FONT face="Times New Roman" size=2>provided</FONT></I><FONT face="Times New Roman" size=2>, </FONT><FONT face="Times New Roman" size=2>however, that such extension will not apply if, within three business
days prior to the 15th calendar day before the last day of the 60-day lockup
period, (A) the Company delivers a certificate to the Representative, signed by
</FONT>its Chief Financial Officer or Chief Executive Officer, certifying on
behalf of the Company that (i) the Common Stock qualifies as &#147;actively traded
securities&#148; (as defined in Regulation M), (ii) the Company meets the applicable
requirements of paragraph (a)(1) of Rule 139 under the 1933 Act in the manner
contemplated by NASD Conduct Rule 2711(f)(4), and (iii) the provisions of NASD
Conduct Rule 2711(f)(4) are not applicable to any research reports relating to
the Company published or distributed by any of the Underwriters during the 15
days before or after the last day of the 60-day lockup period (before giving
effect to such extension), and (B) the Representative concurs, in its reasonable
judgment, with such certification. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>C-2 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The undersigned also agrees and consents to the entry of stop transfer
instructions with the Company&#146;s transfer agent and registrar against the
transfer of the Lock-Up Securities except in compliance with the foregoing
restrictions. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>It is
understood that, if (1) the Company notifies the Representative that it does not
intend to proceed with the public offering of the Securities, (2) the
Underwriting Agreement does not become effective, (3) the Underwriting Agreement
(other than the provisions thereof which survive termination) shall terminate or
be terminated for any reason prior to payment for and delivery of the
Securities, or (4) the public offering of the Securities shall not have been
completed by February 15, 2014, then this lock-up agreement shall immediately be
terminated and the undersigned shall automatically be released from all of his
or her or obligations under this lock-up agreement. </FONT></P>

<P align=center><I><FONT face="Times New Roman" size=2>[Signature page
follows]</FONT></I></P>
<P align=center><FONT face="Times New Roman" size=2>C-3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0 style="line-height: 14pt">

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face="Times New Roman" size=2>Very truly yours,</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face="Times New Roman" size=2>Signature:&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%">&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0 style="line-height: 14pt">

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face="Times New Roman" size=2>Print
      Name:&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%">&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0 style="line-height: 14pt">

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face="Times New Roman" size=2>Date:&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%">&nbsp;</TD></TR></TABLE></DIV><BR>

<P align=center><I><FONT face="Times New Roman" size=2>[Signature page to Lock-up Agreement]</FONT></I></P>
<P align=center><FONT face="Times New Roman" size=2>C-4</FONT></P>

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<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>exhibit5-1.htm
<DESCRIPTION>OPINION OF COOLEY LLP
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<P align=RIGHT><B><FONT face="Times New Roman" size=2>Exhibit 5.1</FONT></B></P>
<IMG src="exhibit5-1x1x1.jpg" border=0> <BR>
<P align=justify><FONT face="Times New Roman" size=2>Chadwick L. Mills<BR></FONT><FONT face="Times New Roman" size=1>(650) 843-5654<BR>cmills@cooley.com</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>January 30, 2014</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Geron Corporation<BR>149 Commonwealth
Drive<BR>Menlo Park, California 94025</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>RE: Geron Corporation</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2>Ladies and Gentlemen:</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>We have acted as counsel to Geron
Corporation, a Delaware corporation (the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Company</FONT></I></B><FONT face="Times New Roman" size=2>&#148;) and you have requested
our opinion with respect to certain matters in connection with the offering by
the Company, of up to 25,875,000 shares (the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Shares</FONT></I></B><FONT face="Times New Roman" size=2>&#148;) (including up to 3,375,000 shares that may be
sold pursuant to the exercise of an over-allotment option) of the Company&#146;s
common stock, par value $0.001 per share (the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Common Stock</FONT></I></B><FONT face="Times New Roman" size=2>&#148;), pursuant to a
Registration Statement on Form S-3, as amended (Registration No. 333-182537)
(the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Registration
Statement</FONT></I></B><FONT face="Times New Roman" size=2>&#148;), filed with the Securities
and Exchange Commission (the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Commission</FONT></I></B><FONT face="Times New Roman" size=2>&#148;) under the Securities
Act of 1933, as amended (the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Act</FONT></I></B><FONT face="Times New Roman" size=2>&#148;), the related prospectus
dated October 11, 2012 included in the Registration Statement (the
&#147;</FONT><B><I><FONT face="Times New Roman" size=2>Base Prospectus</FONT></I></B><FONT face="Times New Roman" size=2>&#148;) and the prospectus supplement dated January 30, 2014, filed with the
Commission pursuant to Rule 424(b) under the Act (the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Prospectus Supplement</FONT></I></B><FONT face="Times New Roman" size=2>&#148;). (The Base Prospectus and the Prospectus Supplement are collectively
referred to as the &#147;</FONT><B><I><FONT face="Times New Roman" size=2>Prospectus</FONT></I></B><FONT face="Times New Roman" size=2>.&#148;) The Shares are to be
sold by the Company as described in the Registration Statement and the
Prospectus.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>In connection with this opinion, we
have examined and relied upon the Registration Statement and the Prospectus, the
Company&#146;s Certificate of Incorporation, as amended, and Bylaws, each as
currently in effect, and the originals or copies certified to our satisfaction
of such records, documents, certificates, memoranda and other instruments as in
our judgment are necessary or appropriate to enable us to render the opinion
expressed below. We have assumed the genuineness and authenticity of all
documents submitted to us as originals, and the conformity to originals of all
documents submitted to us as copies.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Our opinion is expressed only with
respect to the federal laws of the United States of America and the General
Corporation Law of the State of Delaware.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>On the basis of the foregoing, and in
reliance thereon, we are of the opinion that the Shares, when sold in accordance
with the Registration Statement and the Prospectus, will be validly issued,
fully paid and nonassessable.</FONT></P>

<P align=justify><FONT face="Times New Roman" size=2>We consent to the reference to our firm
under the caption &#147;Legal Matters&#148; in the Prospectus included in the Registration
Statement and to the filing of this opinion as an exhibit to a current report of
the Company on Form 8-K. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Very truly yours, </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>C</FONT><FONT face="Times New Roman" size=2>OOLEY
</FONT><FONT face="Times New Roman" size=2>LLP </FONT></P>
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    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Chadwick L.
    Mills</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="98%"><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Chadwick L.
Mills</FONT></TD></TR></TABLE><BR>


<P align=center><FONT face="Times New Roman" size=2><SUP>FIVE PALO ALTO SQUARE, 3000 EL
CAMINO REAL, PALO ALTO, CA 94306-2155 T: (650) 843-5000 F: (650) 849-7400
WWW.COOLEY.COM</SUP></FONT></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>exhibit99-1.htm
<DESCRIPTION>UPDATED COMPANY DISCLOSURE
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<P align=right><B><FONT face="Times New Roman" size=2>Exhibit 99.1 </FONT></B></P>
<P align=left><B><FONT face="Times New Roman" size=2>Forward-Looking Statements
</FONT></B><FONT face="Times New Roman"></FONT></P>
<P align=left><FONT face="Times New Roman" size=2>This Current Report on Form 8-K, or Form
8-K, contains &#147;forward-looking statements&#148; within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are
subject to the &#147;safe harbor&#148; created by that section. In some cases, you can
identify forward-looking statements by the following words: &#147;may,&#148; &#147;will,&#148;
&#147;could,&#148; &#147;would,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;intend,&#148; &#147;plan,&#148; &#147;anticipate,&#148; &#147;believe,&#148;
&#147;estimate,&#148; &#147;predict,&#148; &#147;project,&#148; &#147;potential,&#148; &#147;continue,&#148; &#147;ongoing&#148; or the
negative of these terms or other comparable terminology, although not all
forward-looking statements contain these words. These statements involve risks,
uncertainties and other factors that may cause our actual results, levels of
activity, performance or achievements to be materially different from the
information expressed or implied by these forward-looking statements. Although
we believe that we have a reasonable basis for each forward-looking statement
contained in this Form 8-K, we caution you that these statements are based on a
combination of facts and factors currently known by us and our projections of
the future, about which we cannot be certain. Forward-looking statements include, but are not necessarily limited to, those relating to:</FONT></P>
<UL style="FONT-SIZE: 10pt; FONT-FAMILY: TIMES NEW ROMAN; TEXT-ALIGN: left"><LI><FONT face="Times New Roman" size=2>the magnitude and scope of our imetelstat research
  and development program, including the number of indications we intend to
  pursue; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the progress made, if any, in our imetelstat
  research and development program, including our planned Phase 2 clinical trial
  in MF, and potential future clinical trials and existing or future
  investigator-sponsored trials; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the design of our planned Phase 2 clinical trial
  of imetelstat in MF, including the selection of dosing regimens;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>changes in our clinical development plans for
  imetelstat; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the size and timing of expenditures and whether
  there are unanticipated expenditures; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our estimates regarding the sufficiency of our
  cash resources; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to complete the public offering of our common stock announced on January 30, 2014, and our requirements for additional capital; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the time
  and costs involved in obtaining regulatory clearances and approvals; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our
  ability to consistently and reproducibly manufacture imetelstat; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability
  to meaningfully reduce manufacturing costs of imetelstat; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to establish and maintain potential
  new collaborative arrangements for the development and commercialization of
  imetelstat; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the costs involved in preparing, filing,
  prosecuting, maintaining, defending and enforcing patent claims;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the implementation of our corporate strategy;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to successfully complete the Series A
  Distribution; and <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our future financial performance. </FONT></LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>In addition, you should refer to &#147;Risk
Factors&#148; in this Form 8-K for a discussion of these and other important factors
that may cause our actual results to differ materially from those expressed or
implied by our forward-looking statements. As a result of these factors, we
cannot assure you that the forward-looking statements in this Form 8-K will
prove to be accurate. </FONT><FONT face="Times New Roman" size=2>Furthermore, if our
forward-looking statements prove to be inaccurate, the inaccuracy may be
material. In light of the significant uncertainties in these forward-looking
statements, you should not regard these statements as a representation or
warranty by us or any other person that we will achieve our objectives and plans
in any specified time frame, or at all. Also, forward-looking statements
represent our estimates and assumptions only as of the date of this Form 8-K. We
undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by law.</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>BUSINESS OVERVIEW</FONT></B></P>
<P align=left><B><FONT face="Times New Roman" size=2>Company Overview </FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Geron is a clinical stage biopharmaceutical company developing a
telomerase inhibitor, imetelstat, in hematologic myeloid malignancies. Through a
combined strategy of internal efforts and potential future strategic
partnerships, we intend to advance the development and commercialization of
imetelstat in one or more hematologic myeloid malignancies. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The discovery and early development of imetelstat, our sole product
candidate, was based on our core expertise in telomerase and telomere biology.
Telomerase is an enzyme that enables cancer cells, including malignant
progenitor cells, to maintain telomere length, which provides them with the
capacity for limitless, uncontrolled proliferation. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Imetelstat is a potent and specific inhibitor of telomerase. Using our
proprietary nucleic acid chemistry, we designed imetelstat to be an
oligonucleotide that targets and binds with high affinity to the active site of
telomerase, thereby directly inhibiting telomerase activity and impeding
malignant cell proliferation. We developed imetelstat from inception and own
exclusive worldwide commercial rights with U.S. patent coverage extending
through 2025. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Based on the data from our Phase 2 clinical trial evaluating imetelstat
in essential thrombocythemia, or ET, which showed durable hematologic and
molecular responses in patients, and preliminary data from the first two cohorts
of an investigator-sponsored trial at Mayo Clinic evaluating imetelstat in
myelofibrosis, which we refer to as the Myelofibrosis IST, we intend to develop
imetelstat to treat one or more hematologic myeloid malignancies such as
myelofibrosis, or MF, which includes patients with primary MF, or PMF, post-essential thrombocythemia MF, or post-ET MF, or post-polycythemia vera MF, or
post-PV MF, all of which are referred to as MF; myelodysplastic syndromes, or
MDS; or acute myelogenous leukemia, or AML. We expect to initiate a
Geron-sponsored multi-center, Phase 2 clinical trial of imetelstat in patients
with MF in the first half of 2014. If the data from this trial are positive, and
subject to regulatory approval and the availability of additional funding, we
expect to initiate one or more randomized Phase 3 clinical trials of imetelstat
in patients with MF that could be designed to potentially support full
regulatory approval. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Myelofibrosis IST is also evaluating imetelstat in patients with MF
that has transformed into AML, known as blast-phase MF, and in patients with
refractory anemia with ringed sideroblasts, or RARS, a subpopulation of MDS.
Data we receive from these additional patients will inform, in part, our
decision to initiate one or more potential pilot studies of imetelstat in AML or
MDS. </FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Telomeres and Telomerase in Normal
Development </FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In the human body, normal growth and maintenance of tissues occurs by
cell division. However, most cells are only able to divide a limited number of
times, and this number of divisions is regulated by telomere length. Telomeres
are repetitions of a DNA sequence located at the ends of chromosomes. They act
as protective caps to maintain stability and integrity of the chromosomes, which
contain the cell&#146;s genetic material. Normally, every time a cell divides, the
telomeres shorten. Eventually, they shrink to a critically short length, and as
a result the cell either dies by apoptosis or stops dividing and senesces.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Telomerase is a naturally occurring enzyme that maintains telomeres and
prevents them from shortening during cell division in cells, such as stem cells,
that must remain immortalized to support normal health. Telomerase consists of
at least two essential components: an RNA template (hTR), which binds to the
telomere, and a catalytic subunit (hTERT) with reverse transcriptase activity,
which adds a specific DNA sequence to the chromosome ends. The 2009 Nobel Prize
for Physiology and Medicine was awarded to Drs. Elizabeth H. Blackburn and Carol
W. Greider, who were early Geron collaborators, together with Dr. Jack Szostak,
who is a current Geron collaborator, for the discovery of how chromosomes are
protected by telomeres and the enzyme telomerase. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Telomerase is active during embryonic development, enabling the rapid
cell division that supports normal growth. During the latter stages of human
fetal development and in adulthood, telomerase is repressed in most cells, and
telomere length gradually decreases during a lifetime. In tissues that have a
high turnover throughout life, such as blood and gut, telomerase can be
transiently upregulated in progenitor cells to enable controlled, self-limited
proliferation to replace cells lost through natural cell aging processes. In
proliferating progenitor cells, relatively long telomeres are maintained by
upregulated telomerase. As the progeny of progenitor cells mature, telomerase is
downregulated and telomeres shorten with cell division, preventing uncontrolled
proliferation. </FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Telomeres and Telomerase in Cancer
</FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Telomerase is upregulated in many tumor progenitor cells, which enables
the continued and uncontrolled proliferation of the malignant cells that drive
tumor growth and progression. Telomerase expression has been found to be <FONT face="Times New Roman" size=2>present in approximately 90% of biopsies taken from a broad
range of human cancers. Our non-clinical studies, in which the telomerase gene
was artificially introduced and expressed in normal cells grown in culture, have
suggested that telomerase does not itself cause a normal cell to become
malignant. However, the sustained upregulation of telomerase enables tumor cells
to maintain telomere length, providing them with the capacity for limitless
proliferation. We believe that the sustained upregulation of telomerase is
critical for tumor progression as it enables malignant progenitor cells to
acquire cellular immortality and avoid apoptosis, or cell death.
</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><FONT face="Times New Roman" size=2>Telomerase Inhibition: Inducing Cancer
Cell Death </FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We believe that inhibiting telomerase may be an attractive approach to
treating cancer because it may limit the proliferative capacity of malignant
cells. We and others have observed in various in vitro and rodent tumor models
that inhibiting telomerase results in telomere shortening and arrests
uncontrolled malignant cell proliferation and tumor growth. In vitro studies
have suggested that tumor cells with short telomeres may be especially sensitive
to the anti-proliferative effects of inhibiting telomerase. Our non-clinical
data also suggest that inhibiting telomerase is particularly effective at
limiting the proliferation of malignant progenitor cells, which have high levels
of telomerase and are believed to be important drivers of tumor growth and
progression. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Many hematologic malignancies, such as polycythemia vera, or PV, ET and
MF, are known to arise from malignant progenitor cells in the bone marrow that
express higher telomerase activity and have shorter telomeres when compared to
normal healthy cells. These disease characteristics support telomerase as a
rational and potentially specific oncology target for the use of imetelstat, a
potent and specific inhibitor of telomerase. </FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Imetelstat: The First Telomerase
Inhibitor to Advance to Clinical Development </FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Imetelstat is a lipid-conjugated 13-mer oligonucleotide that is designed
to be complementary to and bind with high affinity to the RNA template of
telomerase, thereby directly inhibiting telomerase activity. The compound has a
proprietary thio-phosphoramidate backbone, which is designed to provide
resistance to the effect of cellular nucleases, thus conferring improved
stability in plasma and tissues, as well as improved binding affinity to its
target. To improve the ability of </FONT><FONT face="Times New Roman" size=2>imetelstat to
permeate through cellular membranes, we conjugated the oligonucleotide to a
lipid group. Imetelstat&#146;s IC<sub>50</sub>, or </FONT><FONT face="Times New Roman" size=2>half maximal
inhibitory concentration, is 0.5-10nM in cell-free assays. The tissue half life
of imetelstat, or the time it takes for the concentration or amount of
imetelstat to be reduced by half, in bone marrow, spleen, liver and tumor has
been estimated to be 41 hours in humans, based on data from animal studies and
clinical trial data. The tissue half life indicates how long a drug will remain
present in the tissues, and a longer tissue half life may enable a drug to
remain at effective doses for a longer period of time. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Imetelstat has been shown in preclinical studies to exhibit relatively
preferential inhibition of clonal proliferation of malignant progenitor cells
compared to normal progenitors. For this reason, imetelstat has been studied as
a treatment for malignant diseases. Imetelstat is the first telomerase inhibitor
to advance to clinical development. The Phase 1 trials that we completed
evaluated the safety, tolerability, pharmacokinetics and pharmacodynamic effects
of imetelstat. Doses and dosing schedules were established that were tolerable
and achieved target exposures in patients that were consistent with those
required for efficacy in animal models. We believe adverse events were generally
manageable and reversible. The dose-limiting toxicities were thrombocytopenia,
or reduced platelet count, and neutropenia, or reduced neutrophil count.
Following intravenous administration of imetelstat using tolerable dosing
regimens, clinically relevant and significant inhibition of telomerase activity
was observed in various types of tissue in which telomerase activity is
measurable, including normal bone marrow hematopoietic cells, malignant plasma
cells, hair follicle cells, and peripheral blood mononuclear cells. </FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Developing Imetelstat to Treat
Hematologic Myeloid Malignancies </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Proof-of-Concept in Essential
Thrombocythemia </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Myeloproliferative neoplasms, or MPNs, are hematologic myeloid
malignancies that arise from malignant hematopoietic myeloid progenitor cells in
the bone marrow, such as the precursor cells of red blood cells, platelets and
granulocytes. Proliferation of malignant progenitor cells leads to an
overproduction of any combination of myeloid white cells, red blood cells and/or
platelets, depending on the disease. These overproduced cells may also be
abnormal, leading to additional clinical complications. MPN diseases include PV,
ET and MF. ET is an MPN characterized by a high platelet count, often
accompanied by a high white cell count, and an increased risk of thrombosis, or
bleeding, in higher-risk patients. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In January 2011, we initiated a Phase 2 clinical trial of imetelstat in
patients with ET. The Phase 2 ET trial was a multi-center, single arm, and
open-label trial that we designed to provide proof-of-concept for the potential
use of imetelstat as a treatment for hematologic myeloid malignancies,
including MF, MDS and AML. The trial leveraged clinical observations from Phase
1 trials suggesting that imetelstat reduces platelet counts, as well as
non-clinical observations that imetelstat distributes well to bone marrow in
rodent models and selectively inhibits the proliferation of malignant
progenitors ex vivo from patients with ET. Hematologic responses were measured
by reductions in platelet counts, and molecular responses were measured by
reductions in the JAK2 V617F mutant allele burden in circulating granulocytes as
assessed by reduction in the proportion of the abnormal Janus kinase 2, or JAK2,
gene compared to the normal, or wild type JAK2 gene. We believe a decrease in
the proportion of the JAK2 V617F mutant relative to the wild type JAK2 is
consistent with selective inhibition of the malignant progenitor cells
responsible for the disease. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We presented top-line data from the Phase 2 ET clinical trial at the
American Society of Hematology, or ASH, annual meeting in December 2012 and at
the Congress of the European Hematology Association, or EHA, in June 2013. A
total of 18 ET patients were enrolled into the study. Imetelstat induced
platelet count reductions in all patients (a 100% hematologic response rate) and
normalizations in 16 out of 18 patients (an 89% complete response rate). The
JAK2 V617F gene mutation was detected in eight patients at baseline. Seven out
of the eight (88%) patients achieved 72% to 96% reductions in JAK2 V617F allele
burden that qualified as partial molecular responses within three to 12 months
of treatment with imetelstat. Partial molecular responses were maintained in six
of the seven (86%) patients, with a median follow-up of 9.5 months (range 0 to
19 months) after first achieving a response. As of the EHA Meeting in June 2013,
the median durations of hematologic and molecular response had not yet been
reached. Currently, 11 patients remain on-study in the Phase 2 ET trial, with
the longest duration on-study being three years. These data suggest that
imetelstat inhibits the progenitor cells of the malignant clone believed to be
responsible for the underlying disease in a relatively selective manner.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In the Phase 2 ET trial, long-term administration of imetelstat was
generally well tolerated. One patient discontinued the trial due to drug-related Grade 1 and 2 constitutional adverse events and Grade 1 gastrointestinal
adverse events. The majority of the non-hematologic adverse events were mild to
moderate in severity, with the most frequently assessed imetelstat-related
adverse events reported by investigators being gastrointestinal events and
fatigue. No drug-related Grade 4 non-hematologic adverse events were reported.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Three patients had Grade 4 neutropenia, but no cases of febrile
neutropenia have been reported. No thromboembolic events or bleeding events
associated with thrombocytopenia have been reported. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>At least one abnormal liver function test, or LFT, was observed in
laboratory findings in all patients. The majority were Grade 1 elevations in
alanine aminotransferase, or ALT, and aspartate aminotransferase, or AST; two
Grade 3 increases in ALT/AST were reversible on dose reduction. With longer
dosing, Grade 1 increases in alkaline phosphatase were observed, associated with
mostly Grade 1 to some Grade 2 unconjugated hyperbilirubinemia. LFT
abnormalities do not appear to progressively worsen over time.</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Although the Phase 2 ET trial is no longer enrolling patients, we are
continuing to treat and follow the remaining patients on study. The high
hematologic and molecular response rates led us to explore the feasibility of
further development of imetelstat in ET. However, based on our own analysis and
after consulting with medical experts, we plan to pursue other hematologic
myeloid malignancies, such as MF, where there is an unmet medical need for a
product that could potentially be disease-modifying. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Clinical Development in
Myelofibrosis </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>MF is a myeloproliferative neoplasm among related diseases, such as ET,
and is characterized by clonal proliferation of malignant hematopoietic
progenitor cells in the bone marrow that causes bone marrow fibrosis, elevation
in bone density, known as osteosclerosis, and abnormal rapid proliferation of
blood vessels, known as pathological angiogenesis. MF patients may exhibit
abnormally low red blood cells/hemoglobin, known as progressive anemia,
abnormally low white blood cells, known as leukopenia, abnormally high white
blood cells, known as leukocytosis, abnormally low platelets, known as
thrombocytopenia, abnormally high platelets, known as thrombocytosis, immature
blood cells, known as peripheral blood leukoerythroblastosis, and abnormally
high precursor cells in the blood, known as excess circulating blasts. In
addition, impaired blood production from the bone marrow causes blood production
to shift to other organs such as the spleen and liver, known as extramedullary
hematopoiesis, which leads to an enlarged spleen, known as splenomegaly, or an
enlarged liver, known as hepatomegaly. MF patients can also suffer from
debilitating constitutional symptoms, such as drenching night sweats, fatigue,
severe itching, known as pruritis, fever and bone pain. The estimated prevalence
of MF in the United States is approximately 13,000 patients, with an annual
incidence of approximately 3,000 patients. Approximately 70% of MF patients have
two to three risk factors (intermediate-2) or four or more risk factors (high
risk), as defined by the Dynamic International Prognostic Scoring System Plus,
or DIPSS Plus, described in a 2011 Journal of Clinical Oncology article. These
patients have a median survival of approximately one to three years,
representing a significant unmet medical need. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Allogeneic hematopoietic cell transplantation, or allo-HCT, is the only
current treatment approach for MF that can lead to complete remission of the
disease with normalization of peripheral blood counts, regression of bone marrow
fibrosis, disappearance of cytogenetic abnormalities, normalization of spleen
size and resolution of constitutional symptoms. However, use of allo-HCT is
limited to a very small number of eligible patients due to the lack of suitable
donors, older age and/or co-morbid conditions. In addition, graft vs. host
disease and life-threatening infections are limitations of allo-HCT treatment.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Currently, the only approved drug therapy in the United States available
for MF patients is Incyte Corporation&#146;s ruxolitinib, or Jakafi<SUP>&#174;</SUP>, an
orally administered, non-specific inhibitor of the JAK/STAT kinase pathway, or
JAK inhibitor, which has shown benefit in reducing spleen size and providing
symptom relief in MF patients. Recently, there have also been reports of overall
survival benefit as well as improvement in bone marrow fibrosis from
Jakafi<SUP>&#174;</SUP> treatment. To date, the reported activity of
Jakafi<SUP>&#174;</SUP> and other JAK inhibitors in clinical development has been
consistent with a cytokine-related mechanism of action, but does not provide
evidence that the drugs affect the underlying malignant progenitor cells in the
bone marrow driving the disease. Other treatment modalities for MF include
hydroxyurea for the management of splenomegaly, leukocytosis, thrombocytosis and
constitutional symptoms; splenectomy and splenic irradiation for the management
of splenomegaly and co-existing cytopenias, or low blood cells; chemotherapy and
pegylated interferon. Drugs for the treatment of MF-associated anemia include
erythropoiesis-stimulating agents, androgens, danazol, corticosteroids,
thalidomide and lenalidomide. Investigational treatments include other
inhibitors of the JAK-STAT pathway, histone deacetylase inhibitors, inhibitors
of heat shock protein 90, hypomethylating agents, PI3 Kinase and mTOR
inhibitors, hedgehog inhibitors, anti-LOX2 inhibitors, recombinant pentraxin 2
protein, KIP-1 activators, TGF-beta inhibitors, FLT inhibitors, and other
tyrosine kinase inhibitors. Presently there are no available drugs that reliably
achieve clinical and pathologic remissions in patients with MF. </FONT></P>
<P align=left><I><FONT face="Times New Roman" size=2>Investigator-Sponsored Clinical Trial
in Myelofibrosis </FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Based on the data from the Phase 2 ET trial, in November 2012, Dr. Ayalew
Tefferi of Mayo Clinic initiated the Myelofibrosis IST. The Myelofibrosis IST is
an open-label trial in patients with PMF, post-ET MF, or post-PV MF who have two
to three risk factors (intermediate-2) or four or more risk factors (high risk)
as defined by DIPSS Plus. In the Myelofibrosis IST, imetelstat is administered
as a single agent through a two-hour intravenous infusion to patients in
multiple patient cohorts. In the first cohort, Cohort A, imetelstat is given
once every three weeks. In the second cohort, Cohort B, imetelstat is given
weekly for four weeks, followed by one dose every three weeks. Under the
protocol, patients in Cohorts A and B may receive an intensified dosing regimen,
up to once per week after the initial six cycles of treatment. The starting dose
of imetelstat in Cohorts A and B is 9.4mg/kg, with dose reductions and dose
holds allowed for toxicity. The primary endpoint in the Myelofibrosis IST is
overall response rate, which is defined by the proportion of patients who are
classified as responders, which means that they have achieved either a clinical
improvement, or CI, partial remission, or PR, or complete remission, or CR,
consistent with the criteria of the 2013 International Working Group for
Myeloproliferative Neoplasms Research and Treatment, or IWG-MRT criteria,
described in a 2013 Blood article. Secondary endpoints include reduction of
spleen size by palpation, improvement in anemia or inducement of red blood cell
transfusion independence, safety and tolerability. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>At the ASH annual meeting in December 2013, the investigator presented
preliminary efficacy data from the Myelofibrosis IST for the first 22 patients
enrolled sequentially in Cohorts A and B, and preliminary safety data from the
first 33 patients treated in the same two cohorts in the trial. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We have been informed by Mayo Clinic that effective January 22, 2014, the
Myelofibrosis IST is closed to new patient enrollment and that the remaining
patients in the Myelofibrosis IST will continue to receive imetelstat treatment
and be followed under the Myelofibrosis IST protocol. We believe that
approximately 79 patients have been enrolled in the Myelofibrosis IST, which
includes nine patients with blast-phase MF and nine patients with RARS, and that
approximately 20 patients have discontinued from the study since its inception.
In Mayo Clinic&#146;s notification informing us of its decision to cease new patient
enrollment, Mayo Clinic did not indicate that the decision to cease patient
enrollment was due to any efficacy or safety outcomes or concerns observed in
the Myelofibrosis IST. </FONT></P>
<P align=left><U><FONT face="Times New Roman" size=2>Geron&#146;s Analysis of the Efficacy Data
for the First 22 Patients Enrolled in the Myelofibrosis IST</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We have reviewed data made available to us in October 2013 for the first
22 patients enrolled sequentially (11 in Cohort A and 11 in Cohort B) in the
Myelofibrosis IST. These data included summary tables, patient listings and
pathology reports. We also performed an onsite review at Mayo Clinic of source
documents and the clinical database. </FONT></P>
<P align=left><I><U><FONT face="Times New Roman" size=2>Patient Demographics and
Status</FONT></U></I><I><FONT face="Times New Roman" size=2> </FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Below is a table setting forth our analysis of the demographics of the
first 22 patients enrolled sequentially in the Myelofibrosis IST, including
certain disease characteristics and exposure to any prior treatments:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cohort A (n =
      11)</FONT></B><B><FONT face="Times New Roman" size=1><SUP>(1)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap style="text-align: center" width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cohort B (n =
      11)<SUP>(2)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap style="text-align: center" width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (n =
      22)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Median Age (range;
      years)</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>68.0 (54.0 -
    76.0)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>69.0 (53.0 -
    79.0)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0><FONT size=2 face="Times New Roman"><FONT face="Times New Roman">68.0 </FONT>(53.0 -
      79.0)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Times New Roman" size=2>Male</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>7 (63.6%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>9 (81.8%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"><FONT size=2 face="Times New Roman"><FONT face="Times New Roman">16 </FONT>(72.7%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Myelofibrosis
      Subtype</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Primary
      Myelofibrosis</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>4 (36.4%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5 (45.5%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0><FONT size=2 face="Times New Roman"><FONT face="Times New Roman">9
      </FONT>(40.9%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post&#151;ET
      Myelofibrosis</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (9.1%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5 (45.5%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>6 (27.3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post&#151;PV
      Myelofibrosis</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>6 (54.5%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (9.1%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0><FONT size=2 face="Times New Roman"><FONT face="Times New Roman">7
      </FONT>(31.8%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Times New Roman" size=2>DIPSS Plus Risk Status</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="3%"></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Intermediate-2 Risk</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>7 (63.6%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>1 (9.1%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"><FONT face="Times New Roman" size=2>8 (36.4%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; High
      Risk</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>4 (36.4%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>10 (90.9%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"><FONT face="Times New Roman" size=2>14 (63.6%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Palpable
      Splenomegaly<SUP>(3)</SUP></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>7 (63.6%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>6 (54.5%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>13 (59.1%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Times New Roman" size=2>Palpable Hepatomegaly</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>1 (9.1%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>2 (18.2%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"><FONT face="Times New Roman" size=2>3 (13.6%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Constitutional
      Symptoms<SUP>(4)</SUP></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>8 (72.7%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>7 (63.6%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="4%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>15 (68.2%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Times New Roman" size=2>Any Prior Treatment</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>8 (72.7%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>10 (90.9%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"><FONT face="Times New Roman" size=2>18 (81.8%)<SUP>(5)</SUP></FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="88%">____________________</TD>
    <TD noWrap style="text-align: center" width="3%"></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="3%"></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="4%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(1)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Cohort A was administered imetelstat once every three
      weeks.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Cohort B was administered imetelstat weekly for four
      weeks, followed by one dose every three weeks.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(3)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Median spleen size by palpation at baseline for Cohort A
      was 19.0 cm (range: 13.0 - 25.0 cm) and for Cohort B was 11.0 cm (range
      8.0 - 23.0 cm). Total median spleen size was 16.0 cm (range 8.0 - 25.0
      cm). Baseline spleen sizes by palpation for patients achieving either CR
      or PR were either below the median or only had a spleen tip (palpable but
      generally less than 5 cm below the left costal margin).</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(4)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>DIPPS Plus assessment of symptoms at baseline: Includes
      unexplained persistent fever &gt; 38.3&#176;C (or &gt; 101&#176;F) during the past
      six months, unexplained non-menopausal night sweats during the past six
      months, unexplained weight loss &gt; 10% body weight in the previous six
      months, and unexplained non-articular bone pain during past six
      months.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(5)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Primary prior treatments include hydroxyurea (10/22,
      45.5%), JAK inhibitors (9/22, 40.9%), anagrelide (3/22, 13.6%),
      pomalidomide (3/22, 13.6%) and splenectomy (2/22,
  9.1%).</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As of October 2013, the median duration of follow-up for all 22 patients
was 5.3 months (range 1.3 - 10.4 months) with 7.6 months (1.3 - 10.4 months) for
Cohort A and 4.8 months (1.6 - 5.6 months) for Cohort B. Duration of follow-up
is defined as the time between the date of first dose and the date of last
contact in the clinical database as of the data cut-off date. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Of these 22 patients, a total of 17 patients remained on imetelstat
treatment as of October 2013, and the five discontinuations were due to death
(n=2), disease progression (n=1) and other reasons (n=2). Of the two deaths in
the first 22 patients in the study, one was due to an intracranial hemorrhage
with febrile neutropenia after prolonged myelosuppression, which was assessed as
possibly related to imetelstat by the investigator, and one was due to an upper
gastrointestinal hemorrhage which was considered unrelated to imetelstat by the
investigator. A non-responding patient whose spleen became palpable, or
measurable in length by physical exam due to increased size, was considered by
us as a case of disease progression. One patient discontinued after
transformation to chronic myelomonocytic leukemia, or CMML, and subsequent to
study discontinuation died from AML. Another patient discontinued due to lack of
response. </FONT></P>
<P align=left><I><U><FONT face="Times New Roman" size=2>Preliminary Efficacy
Data</FONT></U></I><I><FONT face="Times New Roman" size=2> </FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The following table presents our analysis of the preliminary (as of
October 2013) efficacy data for the first 22 sequentially-enrolled patients in
the Myelofibrosis IST, using the IWG-MRT criteria: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><B><FONT face="Times New Roman" size=1>Best Response per IWG-MRT
      Criteria</FONT></B></TD>
    <TD noWrap align=left width="85%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cohort A (n =
      11)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap style="text-align: center" width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cohort B (n =
      11)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap style="text-align: center" width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (n =
      22)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Remission (CR+PR)</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2 (18.2%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>3 (27.3%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5 (22.7%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" colSpan=2><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Complete Remission
      (CR)</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>2 (18.2%)*</FONT></TD>
    <TD noWrap style="text-align: center" width="1%">&nbsp;</TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>1 (9.1%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>3 (13.6%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partial Remission
      (PR)</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2 (18.2%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2 (9.1%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" colSpan=2><FONT face="Times New Roman" size=2>Clinical Improvement
      (CI)</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>1 (9.1%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>3 (27.3%)**</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD noWrap style="text-align: center" width="3%"><FONT face="Times New Roman" size=2>4 (18.2%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Overall Response (CR+PR+CI)</FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>3 (27.3%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>6 (54.5%)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap style="text-align: center" width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>9 (40.9%)</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="88%" colSpan=2>____________________</TD>
    <TD noWrap style="text-align: center" width="3%"></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="3%"></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="3%"></TD></TR></TABLE><BR>
<P align=left><FONT face="Times New Roman" size=2>Two patients are pending an assessment
demonstrating durability of response for at least 12-weeks: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>*</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>One patient who achieved a PR on
      April 30, 2013 and subsequently achieved a CR on October 9, 2013 (Cohort
      A); and</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>**</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>One patient who achieved a CI by
      meeting the criteria for a reduction in liver size on October 14, 2013
      (Cohort B).</FONT></TD></TR></TABLE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The median onset
time to remission (CR or PR) was 2.8 months (range 1.4 - 3.0 months). Four of
the patients who achieved remission (CR or PR) experienced reversal of bone
marrow fibrosis and recovery of normal megakaryocyte morphology, and one patient
achieved PR based on meeting all the criteria for CR except bone marrow
remission. Four patients met the criteria for clinical improvement: anemia
response (n=1), spleen response (n=2) and liver response (n=1), with a median
onset of 1.4 months (range 0.7 - 4.4 months). The investigator has informed us
that as of January 2014, no patients with CR, PR or CI had lost their response
and all of these patients continue to remain on imetelstat treatment.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Additional response rates evaluated by us included spleen and anemia
responses and resolution of constitutional symptoms, circulating blasts,
leukocytosis and thrombocytosis. </FONT></P>
<UL style="FONT-SIZE: 10pt; FONT-FAMILY: TIMES NEW ROMAN; TEXT-ALIGN: left"><LI><FONT face="Times New Roman" size=2>Five of 13 patients (38.5%) with splenomegaly
  achieved spleen responses by palpation, which is defined as either &ge; 50%
  decrease if baseline &ge; 10 centimeters or becoming non-palpable if baseline 5 to
  &lt; 10 centimeters. <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>Three of 12 patients (25.0%) achieved anemia
  responses which are defined as either becoming transfusion independent if
  dependent at baseline or gaining &ge; 2 gram per deciliter in hemoglobin level if
  transfusion-independent but with a hemoglobin level &lt; 10 gram per deciliter
  at baseline. <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>10 of 13 patients (76.9%) who had constitutional
  symptoms at baseline achieved symptoms response, defined as 50% reduction from
  baseline in grade, as assessed by the investigator. <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>11 of 14 patients (78.6%) with circulating blasts
  at baseline achieved complete resolution. <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>Seven of 15 patients (46.7%) with leukocytosis at
  baseline achieved normalization of white cell count. <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>Seven of 9 patients (77.8%) with thrombocytosis at
  baseline achieved normalization of platelet count. </FONT></LI></UL>
<P align=left><I><U><FONT face="Times New Roman" size=2>Investigator&#146;s Presentation of
Preliminary Safety Data</FONT></U></I><I><FONT face="Times New Roman" size=2>
</FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>At the ASH annual meeting in December 2013, the investigator presented
updated preliminary safety results from the first 33 patients treated in Cohorts
A and B in the Myelofibrosis IST. In the presentation, the investigator noted
that 24 of <FONT face="Times New Roman" size=2>33 patients remained on imetelstat treatment
as of December 2013, and the nine patients who discontinued treatment were due
to lack of response (n=6), transformation to CMML (n=1), death unrelated to
imetelstat treatment (n=1) and death possibly related to imetelstat treatment
(n=1). </FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Non-hematologic adverse events in these patients as reported by the
investigator were generally mild to moderate and not dose-limiting.
Non-hematologic treatment-related toxicities of imetelstat reported by the
investigator were: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"><B><FONT face="Times New Roman" size=1>Non-Hematologic Adverse Event, not related to
      myelosuppression</FONT></B></TD>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap style="text-align: center" width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All patients (n=33)
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Grade-1 nausea</FONT></TD>
    <TD noWrap style="text-align: center" width="2%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap style="text-align: center" width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5 (15%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="95%" colSpan=2><FONT face="Times New Roman" size=2>Grade-1 vomiting</FONT></TD>
    <TD noWrap style="text-align: center" width="2%"></TD>
    <TD noWrap style="text-align: center" width="2%"><FONT face="Times New Roman" size=2>1 (3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Grade-1/2 fatigue</FONT></TD>
    <TD noWrap style="text-align: center" width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>4 (12%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="95%" colSpan=2><FONT face="Times New Roman" size=2>Grade-2
      hyperbilirubinemia</FONT></TD>
    <TD noWrap style="text-align: center" width="2%"></TD>
    <TD noWrap style="text-align: center" width="2%"><FONT face="Times New Roman" size=2>2 (6%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Grade 2 APTT increase</FONT></TD>
    <TD noWrap style="text-align: center" width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap style="text-align: center" width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1
(3%)</FONT></TD></TR></TABLE><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, the investigator reported all grade 3/4 extramedullary
adverse events not related to myelosuppression, regardless of attribution:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="3%"><B><FONT face="Times New Roman" size=1>Non-Hematologic Adverse event,</FONT></B></TD>
    <TD noWrap align=left width="84%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><B><FONT face="Times New Roman" size=1>regardless of
      attribution</FONT></B></TD>
    <TD noWrap align=left width="84%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;
      Cohort A (n=19)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;
      Cohort B (n=14)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;
      All patients (n=33)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Fatigue</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2 (14%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>3 (9%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Atrial fibrillation</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>2 (11%)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>2 (6%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Alkaline phosphatase</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (7%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2 (6%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Heart failure</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Hyponatremia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Gastrointestinal bleed</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Hyperkalemia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (7%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Pruritus</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (7%)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (3%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Intestinal obstruction</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (7%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1
(3%)</FONT></TD></TR></TABLE><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Hematologic adverse events related to imetelstat as reported by the
investigator were the primary dose-limiting toxicity and included: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><B><FONT face="Times New Roman" size=1>Hematologic Adverse
      Events</FONT></B></TD>
    <TD noWrap align=left width="84%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;
      Cohort A (n=19)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;
      Cohort B (n=14)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;
      All Patients (n=33)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Grade-3/4 neutropenia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2 (11%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5 (36%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>7 (21%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Grade-3/4 thrombocytopenia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>5 (26%)</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>5 (36%)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>10 (30%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Grade-3/4 anemia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>3 (21%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>4 (12%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Grade-4 neutropenia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>1 (5%)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>3 (21%)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>4 (12%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Grade-4 thrombocytopenia</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>4 (29%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2><FONT face="Times New Roman">4
      </FONT>(12%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="87%" colSpan=2><FONT face="Times New Roman" size=2>Grade-5 febrile neutropenia with intracranial</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="87%" bgColor=#ffffff colSpan=2><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      hemorrhage, resulting in patient death</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&#151;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#ffffff><FONT face="Times New Roman" size=2>1 (7%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="3%" bgColor=#ffffff><FONT face="Times New Roman" size=2>1
(3%)</FONT></TD></TR></TABLE><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We believe myelosuppression was the principal dose-limiting toxicity,
consistent with our observations in previous Geron-sponsored imetelstat studies.
During the Myelofibrosis IST, however, more persistent and profound
myelosuppression, particularly thrombocytopenia, was observed with imetelstat
administered on a weekly basis. This included one case of febrile neutropenia
after prolonged myelosuppression with intracranial hemorrhage resulting in
patient death, which was assessed as possibly related to imetelstat by the
investigator. To mitigate the risk of severe, persistent cytopenias, the
protocol for the Myelofibrosis IST was amended to raise the hematologic
threshold for retreatment and include more stringent monitoring and dose
adjustment criteria. Since then, no further episodes of significant bleeding
events associated with thrombocytopenia, or infections, or additional episodes
of febrile neutropenia have been reported to us by the investigator. As a
result, we believe that the dose-limiting toxicity of the drug may be manageable
through dose hold rules and dose modifications. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Since the ongoing Myelofibrosis IST is an investigator-sponsored trial,
we do not have control over the data or the timing and reporting of additional
data from the Myelofibrosis IST. Furthermore, additional data from the remaining
patients enrolled in the Myelofibrosis IST is generated on an ongoing basis and
is not reflected in the preliminary data discussed above. In this regard,
additional and updated safety and efficacy data generated from the Myelofibrosis
IST may be materially different from the preliminary data discussed above. In
addition, the safety and efficacy data from the first two cohorts of the
Myelofibrosis IST discussed above are preliminary, and therefore, the final data
may be materially different from the preliminary data. Accordingly, the
preliminary data discussed above should be considered carefully and with caution. Please refer to the risk factor
below entitled &#147;Risks Related to Our Business&#151;Success in early clinical trials
may not be indicative of results in subsequent clinical trials. Likewise, data
reported by investigators from time-to-time is subject to audit and verification
procedures that could result in material differences to final data and may
change as more patient data becomes available.&#148; </FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<!--part b-->
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>


<P align=left><I><FONT face="Times New Roman" size=2>Planned Geron-Sponsored Phase 2
Clinical Trial in Myelofibrosis </FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>We believe
that the preliminary efficacy data from the first two cohorts in the
Myelofibrosis IST suggest that imetelstat treatment may produce clinical
improvement in certain MF patients, and also possibly partial or even complete
remissions, which may include bone marrow normalization, peripheral blood
morphologic remission and resolution of splenomegaly and constitutional symptoms
for some period of time, and that imetelstat may have potential
disease-modifying activity by possibly affecting the underlying malignant
progenitor cells in the bone marrow driving the disease. However, we will be
required to demonstrate through multiple Geron-sponsored clinical trials,
including larger-scale randomized Phase 3 clinical trials, that imetelstat is
safe and effective for use in a diverse population before we can seek to obtain
regulatory approval for its commercial sale. The next step we plan to undertake
in this development process is to initiate a planned Geron-sponsored
multi-center, Phase 2 clinical trial of imetelstat in patients with MF. The
planned Geron-sponsored Phase 2 clinical trial will be conducted across multiple
treating centers and across multiple geographic regions, and is being designed
to evaluate whether the results observed in the Myelofibrosis IST are
reproducible and not limited to a single treating center. A primary goal for the
planned Geron-sponsored Phase 2 clinical trial is to characterize the parameters
appropriate for one or more potential randomized Phase 3 clinical trials that
could be designed to potentially support full regulatory approval. These
parameters include defining the appropriate dosing regimen of imetelstat for MF
patients, and defining and validating key components of a composite remission
efficacy endpoint based on modifications of the IWG-MRT criteria. We expect to
initiate the planned Geron-sponsored Phase 2 clinical trial in MF in the first
half of 2014, with preliminary data expected to be available in mid-2015.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>After considering current input from
investigators, experts and regulators, the preliminary design of our Phase 2
clinical trial includes the following elements: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>Open-label, single agent imetelstat administered
  via intravenous infusion;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>Multi-center at approximately 20 to 30 study sites
  in the United States, Europe and other regions of the world;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>Approximately 100 to 150 evaluable patients with
  intermediate-2 or high risk PMF, post-ET MF, or post-PV</FONT> <FONT face="Times New Roman" size=2>MF, who have had at least one prior treatment with either
  hydroxyurea, a JAK inhibitor, or certain</FONT> <FONT face="Times New Roman" size=2>chemotherapeutic agents;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>Primary efficacy endpoint: achievement of a
  proposed, novel composite remission endpoint that includes</FONT> <FONT face="Times New Roman" size=2>reversal of bone marrow disease morphology (as shown through
  blasts, cellularity, fibrosis), normalization of</FONT> <FONT face="Times New Roman" size=2>peripheral blood (neutrophil count, platelet count, hemoglobin,
  immature myeloid cells), spleen and liver</FONT> <FONT face="Times New Roman" size=2>response (confirmed by imaging) and symptoms response (potentially
  using a patient reporting tool, such as the</FONT> <FONT face="Times New Roman" size=2>MF
  7-day Total Symptom Score, that can measure symptoms such as early satiety,
  night sweats, itching,</FONT> <FONT face="Times New Roman" size=2>bone/muscle pain, pain
  under ribs, and abdominal discomfort);</FONT> <BR>&nbsp;
  </LI><LI><FONT face="Times New Roman" size=2>Components of a proposed composite remission
  endpoint are expected to be validated by seeking to establish</FONT> <FONT face="Times New Roman" size=2>rigorous and reproducible measurements for each component,
  and to demonstrate consistent and durable</FONT> <FONT face="Times New Roman" size=2>beneficial effects of each of the components;</FONT> <BR>&nbsp;
  </LI><LI><FONT face="Times New Roman" size=2>Secondary endpoints include individual components
  of the proposed composite remission endpoint, clinical</FONT> <FONT face="Times New Roman" size=2>improvement, and molecular and cytogenetic response; exploratory
  endpoints include pharmacokinetics and</FONT> <FONT face="Times New Roman" size=2>correlative scientific investigations;</FONT> <BR>&nbsp;
  </LI><LI><FONT face="Times New Roman" size=2>Evaluation of safety and tolerability; and</FONT>
  <BR>&nbsp;
  </LI><LI><FONT face="Times New Roman" size=2>Three potential dosing regimens, each expected to
  consist of up to 50 patients, for example:<BR>&nbsp;</FONT></li>
  <UL type=disc><LI>
    <P align=left><FONT face="Times New Roman" size=2>9.4 mg/kg every three weeks, which is
    the dose being tested in Cohort A of the Myelofibrosis IST,
  </FONT></P></LI></UL></UL>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<div style="padding-left: 30pt">
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>a split dose of 9.4 mg/kg (e.g., 4.7 mg/kg on day
  one and day four) every three weeks to evaluate the</FONT> <FONT face="Times New Roman" size=2>effect of reducing peak imetelstat concentrations without reducing
  total amount of imetelstat being</FONT> <FONT face="Times New Roman" size=2>delivered,
  and<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>a reduced dose of 7.5 mg/kg every three weeks to
  evaluate the effect of reducing the total amount of</FONT> <FONT face="Times New Roman" size=2>imetelstat being delivered.</FONT> </LI></UL></div>
<P align=left><B><I><FONT face="Times New Roman" size=2>Potential Imetelstat Clinical
Development in Other Hematologic Myeloid Malignancies </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>The
Myelofibrosis IST has also enrolled additional patients to evaluate imetelstat
in other hematologic myeloid malignancies, including patients with blast-phase
MF and RARS, a subpopulation of MDS. Data we receive from these additional
patients will inform, in part, our decision to initiate one or more potential
pilot studies in AML or MDS. </FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Recent Developments </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Stem Cell Divestiture; Asterias
Series A Distribution </FONT></I></B></P>
<P align=left><I><FONT face="Times New Roman" size=2>Background </FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>On October 1, 2013, we closed the
transaction to divest our human embryonic stem cell assets and our autologous
cellular immunotherapy program pursuant to the terms of an asset contribution
agreement, or the Contribution Agreement, we entered into in January 2013 with
BioTime, Inc., or BioTime, and BioTime&#146;s wholly owned subsidiary, Asterias
Biotherapeutics, Inc., or Asterias (formerly known as BioTime Acquisition
Corporation). Under the terms of the Contribution Agreement, on October 1, 2013,
we contributed to Asterias our human embryonic stem cell assets, including
intellectual property, human embryonic stem cell lines and other assets related
to our discontinued human embryonic stem cell programs, including our Phase I
clinical trial of oligodendrocyte progenitor cells, or GRNOPC1, in patients with
acute spinal cord injury, as well as our autologous cellular immunotherapy
program, including data from the Phase I/II clinical trial of the autologous
cellular immunotherapy in patients with AML. On October 1, 2013, Asterias
assumed all post-closing liabilities with respect to all of the assets
contributed by us, including any liabilities related to the GRNOPC1 and
autologous cellular immunotherapy clinical trials. Additionally, Asterias was
substituted for us as a party in an appeal by us of two rulings in favor of
ViaCyte, Inc. by the United States Patent and Trademark Office&#146;s Board of Patent
Appeals and Interferences, filed by us in the United States District Court for
the Northern District of California in September 2012, or the ViaCyte Appeal,
and Asterias assumed all liabilities arising after October 1, 2013 with respect
to the ViaCyte Appeal. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As consideration for the
contribution of our human embryonic stem cell assets and autologous cellular
immunotherapy program to Asterias, on October 1, 2013 we received 6,537,779
shares of Asterias Series A common stock representing 21.4% of Asterias&#146;
outstanding common stock as a class as of that date. Under the terms of the
Contribution Agreement and subject to certain conditions and applicable law,
following a record date anticipated to be declared by our board of directors, we
will distribute all of the shares of Asterias Series A common stock to our
stockholders on a pro rata basis, other than with respect to fractional shares
and shares that would otherwise be distributed to Geron stockholders residing in
certain excluded jurisdictions, as described below, which shares, as required by
the Contribution Agreement, will be sold with the net cash proceeds therefrom
distributed ratably to the stockholders who would otherwise be entitled to
receive such shares. We refer to the anticipated distribution by us of the
Asterias Series A common stock as the Series A Distribution. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>On October 1, 2013, BioTime
contributed to Asterias 8,902,077 shares of BioTime common stock, five-year
warrants to purchase 8,000,000 additional shares of BioTime common stock at an
exercise price of $5.00 per share, or the BioTime Warrants, minority stakes in
two of BioTime&#146;s subsidiaries and rights to use certain human embryonic stem
cell lines. In addition, BioTime had previously loaned Asterias $5,000,000 in
cash and the principal amount of this debt was cancelled as part of the closing
under the Contribution Agreement. In consideration of BioTime&#146;s contributions,
on October 1, 2013 Asterias issued to BioTime 21,773,340 shares of Asterias
Series B common stock representing 71.6% of Asterias&#146; outstanding common stock
as a class as of that date, and three-year warrants to purchase 3,150,000
additional shares of Asterias Series B common stock at an exercise price of
$5.00 per share. Upon completion of the Series A Distribution, Asterias is
contractually obligated under the Contribution Agreement to distribute the
BioTime Warrants on a pro rata basis to the holders of Asterias Series A common
stock. </FONT></P>
<P align=left><I><FONT face="Times New Roman" size=2>Status of Anticipated Series A
Distribution </FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior to our ability to set a record
date for the Series A Distribution, we must receive notice from BioTime and
Asterias that certain securities registration or qualification requirements have
been met by them, including notice that the registration statement that Asterias
filed with the SEC covering the Series A Distribution has been declared
effective by the SEC and is otherwise available to effect the Series A
Distribution, which may not occur on a timely basis or at all. In this regard, our ability to effect the Series A Distribution has
been delayed beyond our expectations, and we have no control over when and
whether the Asterias registration statement will ultimately be declared
effective by the SEC and available to us in order to effect the Series A
Distribution. Likewise, Asterias may be unable to distribute to the Asterias
Series A stockholders the BioTime Warrants received by them from BioTime under
the Contribution Agreement. These anticipated distributions may be further
delayed, perhaps substantially, or precluded altogether for a variety of
reasons, including the failure of BioTime and/or Asterias to obtain or maintain
required federal and state registrations and qualifications necessary to enable
us to effect the Series A Distribution and/or to enable Asterias to complete the
distribution of the BioTime Warrants. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>In the event
that the conditions to our obligation to effect the Series A Distribution are
met, our board of directors will declare a dividend on shares of our common
stock payable in shares of Asterias Series A common stock. In that event, only
Geron stockholders as of the close of business on the record date declared by
our board of directors for the Series A Distribution and holding shares of our
common stock in certain jurisdictions would receive shares of Asterias Series A
common stock in the Series A Distribution. Accordingly, if the Series A
Distribution occurs, in order to receive any shares of Asterias Series A common
stock in the Series A Distribution, you would need to continue to hold shares of
our common stock through the record date and you would also need to reside in
one of the following jurisdictions: The United States, Anguilla, Argentina,
Austria, Australia, Belgium, Bulgaria, Canada, Cayman Islands, China, Croatia,
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Guam, Guernsey, Hong Kong, Hungary, India, Ireland, Israel, Italy, Japan, Korea,
Latvia, Lebanon, Liechtenstein, Luxembourg, Malta, Mexico, Monaco, Netherlands,
Norway, Panama, Poland, Portugal, Puerto Rico, Romania, Saudi Arabia, Singapore,
Slovenia, Slovakia, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates,
United Kingdom, Uruguay, British Virgin Islands, and the U.S. Virgin Islands. If
the anticipated Series A Distribution occurs, in lieu of Geron distributing the
Asterias Series A common stock in jurisdictions other than those set forth
above, the Asterias Series A common stock that would otherwise be distributed to
Geron stockholders who reside in such jurisdictions will instead be sold for
cash and the net cash proceeds will be distributed ratably to such stockholders.
Fractional shares will also be sold for cash with the net cash proceeds to be
distributed ratably to the Geron stockholders who were entitled to receive
fractional shares of Asterias Series A common stock. However, the exact
ratio can only be determined upon the record date, if any, to be declared by our
board of directors for the Series A Distribution. In the event that the
conditions to our obligation to effect the Series A Distribution are met, we
will publicly announce the record date at least ten days prior to the record
date. If the anticipated Series A Distribution occurs and you sell your shares
of Geron common stock prior to the record date for the Series A Distribution,
you would not receive any shares of Asterias Series A common stock (or cash in
lieu thereof) in the Series A Distribution. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Asterias is a newly organized,
development stage company in the start-up phase, and has only recently commenced
its primary product development programs. To date, Asterias&#146; operations have
been primarily limited to organizing and staffing its company and completing the
acquisition of our former stem cell assets. Accordingly, it is difficult if not
impossible to predict Asterias&#146; future performance or to evaluate its business
and prospects. In addition, there is currently no existing public market for
either the Asterias Series A common stock (or any other Asterias securities) or
the BioTime Warrants, and there can be no assurance that an active public market
for either the Asterias Series A common stock or BioTime Warrants will ever
develop. For these and other reasons, any value ascribed to the Asterias Series
A common stock or the BioTime Warrants is highly speculative and an investment
decision in our common stock should be based solely on an evaluation of our
company, its business and its prospects. In addition, we do not know when, if
ever, the anticipated Series A Distribution will occur and it is possible that
it may never occur. Please see the risk factor entitled &#147;Our stockholders may
realize little or no value from the divestiture of our stem cell assets, and as
a result our stock price may decline, we could be subject to litigation, and our
business may be adversely affected&#148; under &#147;Risk Factors&#148; below. </FONT></P>
<P align=left><I><FONT face="Times New Roman" size=2>Tax Consequences of Anticipated
Distribution </FONT></I></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If the anticipated Series A
Distribution occurs, the Series A Distribution will not qualify as a tax-free
spin-off under Section 355 of the Internal Revenue Code of 1986, as amended, or
the Code. Accordingly, the fair market value of the Asterias Series A common
stock at the time of the Series A Distribution, if it occurs, and the amount of
any cash distributed will be treated as dividend income for U.S. federal income
tax purposes for Geron stockholders to the extent made out of our current or
accumulated earnings and profits (as determined under U.S. federal income tax
principles), if any. We believe we had no accumulated earnings and profits as of
the end of 2013, and we expect that we also will have no current earnings and
profits for 2014. Accordingly, we do not believe the distribution of the
Asterias Series A common stock and any cash distributed will result in dividend
income to Geron stockholders provided that such distribution occurs in 2014.
However, because the amount of our 2014 current earnings and profits, if any,
cannot be known before the end of 2014, because we have not performed a formal
study of our accumulated earnings and profits as of the end of 2013, and because
both the timing and occurrence of the Series A Distribution is uncertain and so
could be made after the end of 2014, if at all, we can provide no assurance that the Series A Distribution, should it occur,
would not result in any dividend income to Geron stockholders. In addition, we
cannot tell you whether Asterias has earnings and profits and therefore whether
the anticipated distribution of the BioTime Warrants by Asterias will result in
dividend income. If a &#147;Non-U.S. Holder&#148; (as defined below) is treated as receiving dividend income, such Non-U.S. Holder would
generally be subject to U.S. federal withholding tax at a 30% rate (or lower
applicable treaty rate). For the purposes of this discussion, a &#147;Non-US. Holder&#148; is, for U.S. federal income tax purposes, a beneficial owner of common stock that is neither a U.S. Holder, nor a partnership (or other entity treated as a partnership for U.S. federal income tax purposes regardless of its place of organization or formation). A &#147;U.S. Holder&#148; means a beneficial owner of our common stock that is for U.S. federal income tax purposes (a) an individual who is a citizen or resident of the U.S., (b) a corporation or other entity treated as a corporation created or organized in or under the laws of the U.S., any state thereof or the District of Columbia, (c) an estate the income of which is subject to U.S. federal income taxation regardless of its source or (d) a trust if it (1) is subject to the primary supervision of a court within the U.S. and has one or more U.S. persons that have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>To the
extent that the fair market value of the Asterias Series A common stock and the
amount of any cash distributed exceeds our current and accumulated earnings and
profits, if any, they will first reduce Geron stockholders&#146; adjusted basis in
our common stock, but not below zero, and then will be treated as gain to the
extent of any excess. Any gain resulting from the Series A Distribution will be
short-term capital gain if the Geron stockholder has held our stock for one year
or less at the time of the Series A Distribution. The distribution by Asterias
of the BioTime Warrants, if it occurs, will be subject to similar U.S. federal
income tax treatment except that the amount of dividend income, if any, would be
based on the current or accumulated earnings and profits of Asterias, and any
fair market value of BioTime Warrants in excess of any such dividend amount
would result in gain to the extent such excess value exceeded the adjusted tax
basis of the Asterias Series A common stock. Any gain resulting from the
distribution of the BioTime Warrants will be short-term capital gain if the
Geron stockholder has held the Asterias Series A common stock for one year or
less at the time of the distribution of the BioTime Warrants. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If any dividend income or gain were
recognized by Geron stockholders in respect of our anticipated distribution of
the Asterias Series A common stock and cash, if any, or the anticipated
distribution by Asterias of the BioTime Warrants, as described above, then Geron
stockholders could incur U.S. federal income taxes with respect to the receipt
of such distribution. The lack of an existing market for the Asterias Series A
common stock could limit or preclude the ability of our stockholders to sell a
sufficient quantity of Asterias Series A common stock to satisfy such potential
tax liabilities. As a result, if the anticipated Series A Distribution occurs,
Geron stockholders may incur tax liabilities, but be unable to realize value
from any Asterias Series A common stock distributed by Geron and/or the BioTime
Warrants to be distributed by Asterias. Because no further action is required on
the part of Geron stockholders to receive the Asterias Series A common stock and
the related BioTime Warrants in the distributions, if the anticipated Series A
Distribution occurs and Geron stockholders do not want to receive the Asterias
Series A common stock and the related BioTime Warrants in the anticipated
distributions (or cash in lieu thereof), the only recourse for Geron
stockholders will be to divest their Geron common stock prior to the record date
set by our board of directors for the Series A Distribution. Prospective
investors are urged to consult their tax advisors with respect to the tax
consequences of the anticipated distributions generally and in their particular
circumstances, including the consequences of any proposed change in applicable
law. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This foregoing discussion of the
anticipated Series A Distribution is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to buy any
securities of Asterias or BioTime, nor shall there be any sale of these
securities in any state or other jurisdiction in which such offer, solicitation
or sale would be unlawful prior to the registration or qualification under the
securities laws of any such state or other jurisdiction. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>RISK FACTORS </FONT></B></P>


<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="Times New Roman" size=2>Our business is subject to various risks and uncertainties that may have a material adverse effect on our business, financial condition or results of operations. Investors should carefully consider the risks and uncertainties described below before making an investment decision. Our business faces significant risks and uncertainties, and those described below may not be the only risks and uncertainties we face. Additional risks and uncertainties not presently known to us or that we currently believe are immaterial may also significantly impair our business, financial condition or results of operations. If any of these risks or uncertainties occur, our business, results of operations or financial condition could suffer, the market price of our common stock could decline and you could lose all or part of your investment in our common stock.</FONT></I><FONT face="Times New Roman"></FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO OUR BUSINESS
</FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our success is solely dependent on
the success of one early-stage product candidate, imetelstat, and we cannot be
certain that imetelstat will advance to subsequent clinical trials or receive
regulatory approval on a timely basis, or at all. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our business is at an early stage of
development, and we are wholly dependent on the success of imetelstat, our sole
product candidate. We do not have any products that are commercially available.
Our ability to develop imetelstat to and through regulatory approval and
commercial launch is subject to significant risks and uncertainties and our
ability to, among other things: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>receive positive safety and efficacy data from
  existing and potential future investigator-sponsored trials of</FONT> <FONT face="Times New Roman" size=2>imetelstat, such as the Myelofibrosis IST, that provide the
  clinical rationale for the potential or continued</FONT> <FONT face="Times New Roman" size=2>development of imetelstat in hematologic myeloid
  malignancies;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>ascertain that the use of imetelstat does not
  result in significant systemic or organ toxicities or other safety</FONT>
  <FONT face="Times New Roman" size=2>issues resulting in an unacceptable benefit-risk
  profile;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>develop clinical plans for, and successfully
  enroll and complete, planned and potential future Geron-sponsored</FONT> <FONT face="Times New Roman" size=2>clinical trials of imetelstat in hematologic myeloid
  malignancies;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>collaborate successfully with clinical trial
  sites, academic institutions, clinical research organizations,
  physician</FONT> <FONT face="Times New Roman" size=2>investigators, including any
  physician investigators conducting investigator-sponsored trials of
  imetelstat, and</FONT> <FONT face="Times New Roman" size=2>other third
  parties;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtain positive clinical data from potential
  future Geron-sponsored clinical trials to enable subsequent clinical</FONT>
  <FONT face="Times New Roman" size=2>trials;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtain required regulatory clearances and
  approvals for imetelstat; for example, it is uncertain whether the U.S.</FONT>
  <FONT face="Times New Roman" size=2>Food and Drug Administration, or FDA, and regulatory
  authorities in other countries will require us to obtain</FONT> <FONT face="Times New Roman" size=2>and submit additional preclinical, manufacturing, or
  clinical data to proceed with any planned and potential</FONT> <FONT face="Times New Roman" size=2>future Geron-sponsored clinical trials; how the FDA and
  other regulatory authorities will interpret safety and</FONT> <FONT face="Times New Roman" size=2>efficacy data from any clinical trial, including the Myelofibrosis IST;
  how they will assess clinical benefit with</FONT> <FONT face="Times New Roman" size=2>data
  from a proposed composite remission endpoint that we expect will be evaluated
  in future Geron-sponsored</FONT> <FONT face="Times New Roman" size=2>clinical trials; the
  scope and type of clinical development and other data they might require us to
  generate and</FONT> <FONT face="Times New Roman" size=2>submit, especially with a novel
  primary efficacy endpoint such as a composite remission endpoint, before
  they</FONT> <FONT face="Times New Roman" size=2>might grant a marketing approval, if any;
  and the length of time and cost for us to complete any such</FONT> <FONT face="Times New Roman" size=2>requirements;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>enter into arrangements with third parties to
  provide services needed to further research and develop imetelstat,</FONT>
  <FONT face="Times New Roman" size=2>or to manufacture imetelstat, in each case at
  commercially reasonable costs;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>enter into arrangements with third parties, or
  establish internal capabilities, to provide sales, marketing and</FONT> <FONT face="Times New Roman" size=2>distribution functions in compliance with applicable
  laws;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtain appropriate coverage and reimbursement
  levels for the cost of imetelstat from governmental authorities,</FONT> <FONT face="Times New Roman" size=2>private health insurers and other third-party
  payors;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>maintain and enforce adequate intellectual
  property protection for imetelstat;</FONT> </LI></UL>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>maintain adequate financial resources and
  personnel to advance imetelstat to and through subsequent clinical</FONT>
  <FONT face="Times New Roman" size=2>trials, regulatory approval and commercial launch;
  and<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtain financing on commercially reasonable terms
  to fund our operations.</FONT> </LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>If we are
not able to successfully achieve the above-stated goals and overcome other
challenges that we may encounter in the research, development, manufacturing and
commercialization of imetelstat, we may be forced to abandon our development of
imetelstat, which would severely harm our business and could potentially cause
us to cease operations. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We are currently focused on the
development of imetelstat in hematologic myeloid malignancies, other than ET,
and future Geron-sponsored clinical development of imetelstat is highly
dependent on the results of existing and potential future investigator-sponsored
trials of imetelstat in hematologic myeloid malignancies, including the
Myelofibrosis IST. We have been informed by Mayo Clinic that the Myelofibrosis
IST has been closed to new patient enrollment effective January 22, 2014 and
that the remaining patients in the study will continue to receive imetelstat
treatment and be followed under the Myelofibrosis IST protocol. </FONT></p>
<P align=left><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman" size=2>We may be unable to develop, or initiate the development of,
imetelstat in MF or any additional hematologic myeloid malignancy indications,
which would likely result in our decision to discontinue development of
imetelstat and to potentially cease operations. In any event, imetelstat will
require significant additional clinical testing prior to possible regulatory
approval in the United States and other countries, and we do not expect
imetelstat to be commercially available for many years, if at all. Our clinical
development program for imetelstat may not lead to regulatory approval from the
FDA and similar foreign regulatory agencies if we fail to demonstrate that
imetelstat is safe and effective. We may therefore fail to commercialize
imetelstat. Any failure to advance imetelstat to subsequent clinical trials,
failure to obtain regulatory approval of imetelstat, or limitations on any
regulatory approval that we might receive, would severely harm our business and
prospects, and could potentially cause us to cease operations. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our ability to generate product
revenue is dependent on the successful regulatory approval and commercialization
of imetelstat. Imetelstat may not prove to be more effective for treating
hematologic cancers than current therapies. Competitors or other third parties
may also have proprietary rights that prevent us from developing and marketing
imetelstat, or our competitors may discover or commercialize similar, superior
or lower-cost products that make imetelstat unsuitable for marketing. Imetelstat
also may not be able to be manufactured in commercial quantities at an
acceptable cost. Any of the factors discussed above could delay or prevent us
from developing, commercializing or marketing imetelstat, which would materially
adversely affect our business and could potentially cause us to cease
operations. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>If imetelstat were to have an
unacceptable benefit-risk profile, our business and prospects could be severely
harmed. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Although toxicities and other safety
issues to date have not resulted in what we believe is an unacceptable
benefit-risk profile in our Phase 2 clinical trials of imetelstat in ET or
multiple myeloma, or in the Myelofibrosis IST, if there are safety results that
cause the benefit-risk profile to become unacceptable with respect to patients
enrolled in clinical trials of imetelstat conducted now or in the future by us
or any independent investigator, including the Myelofibrosis IST, we would
likely be delayed or prevented from advancing imetelstat into further clinical
development and may decide or be required to discontinue our development of
imetelstat, which would severely harm our business and prospects, and would
likely cause us to cease operations. Imetelstat may prove to have undesirable or
unintended side effects or other characteristics adversely affecting its safety,
efficacy or cost effectiveness that could prevent or limit its approval for
marketing and successful commercial use, or that could delay or prevent the
commencement and/or completion of clinical trials for imetelstat. For example,
in our Phase 1 clinical trials of imetelstat, we observed dose-limiting
toxicities, including reduced platelet count, or thrombocytopenia, when the drug
was used as a single agent, and reduced white blood cell count, or neutropenia,
when the drug was used in combination with paclitaxel, as well as a low
incidence of severe infusion reactions. In our Phase 2 clinical trials of
imetelstat in ET, multiple myeloma and solid tumors, we have observed
hematologic toxicities, abnormal laboratory liver function tests, and
non-laboratory test findings such as gastrointestinal events, infections,
muscular and joint pain and fatigue. In the Myelofibrosis IST, myelosuppression
has been the primary dose-limiting toxicity reported to date, consistent with
our observations in previous Geron-sponsored imetelstat studies. However, during
the Myelofibrosis IST, more persistent and profound myelosuppression,
particularly thrombocytopenia, was observed with imetelstat administered on a
weekly basis. This included one case of febrile neutropenia after prolonged
myelosuppression with intracranial hemorrhage resulting in patient death, which
was assessed as possibly related to imetelstat by the investigator. We may in
the future observe or report dose-limiting or hematologic toxicities or other
safety issues in our ongoing Phase 2 clinical trials of imetelstat in ET and
multiple myeloma or in our planned and potential future Geron or
investigator-sponsored trials of imetelstat. Likewise, because the Myelofibrosis
IST is still ongoing, the investigator may observe or report additional or more
severe toxicities or safety issues in the Myelofibrosis IST, including
additional serious adverse events, as patient treatment continues and more data
becomes available. If such toxicities or other safety issues result in an unacceptable benefit-risk profile, this would likely
delay or prevent the commencement and/or completion of our ongoing, planned or
potential future clinical trials or investigator-sponsored trials, including the
Myelofibrosis IST and our planned Phase 2 clinical trial of imetelstat in MF,
and may require us to conduct additional, unforeseen trials or to abandon our
development of imetelstat entirely. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Success in early clinical trials may
not be indicative of results in subsequent clinical trials. Likewise, data
reported by investigators from time-to-time is subject to audit and verification
procedures that could result in material differences to final data and may
change as more patient data becomes available. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>A number of
new drugs and biologics have shown promising results in initial clinical trials,
but subsequently failed to establish sufficient safety and efficacy data to
obtain necessary regulatory approvals. Data obtained from preclinical and
clinical activities are subject to varying interpretations, which may delay,
limit or prevent regulatory approval. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Data from our preclinical studies
and Phase 1 and Phase 2 clinical trials of imetelstat, as well as preliminary,
additional or updated data from investigator-sponsored trials, including the
Myelofibrosis IST, should not be relied upon as evidence that subsequent or
larger-scale clinical trials will succeed. The positive results we have obtained
from the patients enrolled in the Phase 2 clinical trial of imetelstat in ET may
not predict the future therapeutic benefit of imetelstat, if any, in other
hematologic myeloid malignancies, including MF. For example, the known
dose-limiting toxicities associated with imetelstat, such as profound
thrombocytopenia and febrile neutropenia and other safety issues, including
death, that have been observed in both Geron and investigator-sponsored trials,
including the Myelofibrosis IST, could cause complexities in treating patients
with MF and could result in the discontinuation of any of these trials. Also,
the IWG-MRT criteria used to assess efficacy in the Myelofibrosis IST, and the
proposed composite remission efficacy endpoint based on modifications of the
IWG-MRT criteria that we may use for our planned Phase 2 clinical trial in MF,
have not been validated for clinical use and may not be considered by the FDA or
other regulatory agencies to be accurate predictors of efficacy for different
endpoints that may be required by the FDA or other regulatory agencies for Phase
3 clinical trials. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In addition, because the
Myelofibrosis IST is not a Geron-sponsored trial, the clinical testing of
imetelstat in the Myelofibrosis IST requires us to rely on the investigator&#146;s
plan, design and conduct of the trial, and the evaluation and reporting of
results of the Myelofibrosis IST by the investigator, all of which we do not
control. The preliminary efficacy results of the Myelofibrosis IST are based
solely on data from the first two cohorts of the Myelofibrosis IST, consisting
of 22 patients, and we will need to seek to replicate the results of the
Myelofibrosis IST across one or more larger Phase 2 and Phase 3 trials in MF at
multiple treating centers. The results reported by the investigator in the
Myelofibrosis IST may not be replicated in any trials conducted by Geron or by
any other investigator or group of investigators, or in any trial enrolling a
larger number of patients or conducted at multiple treating centers, and thus
should not be relied upon as indicative of future clinical results of imetelstat
in MF or any other hematologic myeloid malignancy. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In addition, from time-to-time, we
may report or announce preliminary data from Geron-sponsored and
investigator-sponsored trials. For example, we have announced preliminary safety
and efficacy data from the first two cohorts of the Myelofibrosis IST. Since
this data is preliminary, the final data from the trial may be materially
different than the data we have previously reported. The preliminary data is
also subject to the risk that one or more of the clinical outcomes may
materially change as patient treatment continues and additional and updated
patient data becomes available. Since the Myelofibrosis IST is ongoing, safety
and efficacy data continues to be generated, and such additional and updated
data is not reflected in the preliminary data presented by the investigator at
the ASH annual meeting in December 2013. Because the additional and updated
safety and efficacy data may be materially different from the preliminary data
that we have reported, such preliminary data should be considered carefully and
with caution. Additional and updated data is also subject to our audit and
verification procedures, and since this could result in material differences
from the data reported by the investigator, additional or updated data that may
be reported from the Myelofibrosis IST should be considered carefully and with
caution. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Material adverse changes in final
data could significantly harm our business prospects. Even if final safety and
efficacy data from the Myelofibrosis IST are positive, significant additional
clinical testing will be necessary for the future development of imetelstat in
MF. Any such final safety and efficacy data from the Myelofibrosis IST may not
be reproducible in future clinical trials. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We will be required to demonstrate
through multiple Geron-sponsored clinical trials, including larger-scale Phase 3
clinical trials, that imetelstat is safe and effective for use in a diverse
population before we can seek to obtain regulatory approval for its commercial
sale. There is typically an extremely high rate of attrition from the failure of
drug candidates proceeding through clinical trials. If we are unable to develop
imetelstat in future clinical trials, including Phase 3 clinical trials, our
business may fail. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our research and development of
imetelstat is subject to numerous risks and uncertainties. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>The science
and technology of telomere biology, telomerase and our proprietary
oligonucleotide chemistry are relatively new. There is no precedent for the
successful commercialization of a therapeutic product candidate based on these
technologies. We must undertake significant research and development activities
to develop imetelstat based on these technologies, which will require
significant additional funding beyond the anticipated net proceeds from our public
offering of common stock announced on January 30, 2014, and may take years to accomplish, if
at all. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Because of the significant
scientific, regulatory and commercial milestones that must be reached for our
research and development of imetelstat to be successful, our development of
imetelstat in hematologic myeloid malignancies, including MF, or any other
indication, may be delayed or abandoned, even after we have expended significant
resources on it. Our decisions to discontinue our Phase 2 clinical trial of
imetelstat in metastatic breast cancer in September 2012, and to discontinue our
development of imetelstat in solid tumors with short telomeres in April 2013,
are examples of this. Any delay or abandonment of our development of imetelstat
in hematologic myeloid malignancies would have a material adverse effect on, and
likely result in the failure of, our business. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our stockholders may realize little
or no value from the divestiture of our stem cell assets, and as a result our
stock price may decline, we could be subject to litigation, and our business may
be adversely affected. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The completion of our obligations
under the Contribution Agreement among us, BioTime and Asterias to effect the
Series A Distribution is subject to numerous risks and uncertainties. We may be
unable to complete, on a timely basis or at all, the pro rata distribution by us
of the Asterias Series A common stock received by us from Asterias under the
Contribution Agreement or we may be unable to pay, in a timely manner or at all,
cash in lieu of either fractional shares or shares that would otherwise be
distributed to stockholders in certain excluded jurisdictions, in each case as
contemplated by the Contribution Agreement. Prior to our ability to set a record
date for the Series A Distribution, we must receive notice from BioTime and
Asterias that certain securities registration or qualification requirements have
been met by them, including notice that the registration statement that Asterias
filed with the SEC covering the Series A Distribution has been declared
effective by the SEC and is otherwise available to effect the Series A
Distribution, which may not occur on a timely basis or at all. In this regard,
our ability to effect the Series A Distribution has been delayed beyond our
expectations, and we have no control over when and whether the Asterias
registration statement will ultimately be declared effective by the SEC and
available to us in order to effect the Series A Distribution. Likewise, Asterias
may be unable to distribute to the Asterias Series A stockholders the BioTime
Warrants received by them from BioTime under the Contribution Agreement. These
anticipated distributions may be further delayed, perhaps substantially, or
precluded altogether for a variety of reasons, including the failure of BioTime
and/or Asterias to obtain or maintain required federal and state registrations
and qualifications necessary to enable us to effect the Series A Distribution
and/or to enable Asterias to complete the distribution of the BioTime Warrants.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In addition, there is currently no
existing public market for either the Asterias Series A common stock (or any
other Asterias securities) or the BioTime Warrants, and there can be no
assurance that an active public market for either the Asterias Series A common
stock or BioTime Warrants will ever develop. The absence of an active public
market for these securities would make it difficult for holders of Asterias
Series A common stock to sell their shares of Asterias Series A common stock or
BioTime Warrants and would adversely affect the value of the Asterias Series A
common stock and the BioTime Warrants. While Asterias plans to arrange for the
trading of the Asterias Series A common stock on the OTC Bulletin Board upon the
completion of the Series A Distribution, if it occurs, the Asterias Series A
common stock may be thinly traded or not at all, and may be subject to the SEC&#146;s
&#147;penny stock&#148; rules that impose restrictive sales practice requirements on
broker-dealers who sell penny stocks and provide for certain additional
disclosure requirements in connection with the sale of penny stocks. These rules
may have the effect of reducing the level of trading activity for the Asterias
Series A common stock. In addition, until such time as the Asterias Series A
common stock is listed on a national securities exchange, which may never occur,
applicable state securities laws may restrict the states in which and conditions
under which Geron stockholders who receive shares of Asterias Series A common
stock in the Series A Distribution (if it occurs) can sell such shares. For
these and other reasons, if the anticipated Series A Distribution occurs, Geron
stockholders may not be able to sell their shares of Asterias Series A common
stock in a timely manner or at an orderly market price, if at all, and Geron
stockholders may otherwise find it difficult to sell their Asterias Series A
common stock. In addition, Asterias is a newly organized, development stage
company in the start-up phase, and has only recently commenced its operations.
To date, Asterias&#146; operations have been primarily limited to organizing and
staffing its company and completing the acquisition of our former stem cell
assets. Accordingly, it is difficult if not impossible to predict Asterias&#146;
future performance or to evaluate its business and prospects. For these and
other reasons, any value ascribed to the Asterias Series A common stock or the
BioTime Warrants is highly speculative and an investment decision in our common stock should be based solely on an evaluation of our company, its business and its prospects. </FONT></P>
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<!--part c-->
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The anticipated
distributions of the Asterias Series A common stock by us, and the BioTime
Warrants by Asterias, and related transactions, as well as the asset
contribution transaction itself, could also result in litigation against us,
including litigation arising from or related to the value, if any, from the
Asterias Series A common stock and/or the BioTime Warrants or our role as a
named underwriter with respect to the Series A Distribution, or litigation based
on other matters related to the Contribution Agreement or the transactions
contemplated thereby. For example, some of our investors purchased shares of our
common stock because they were interested in the opportunities presented by our
human embryonic stem cell programs. Thus, certain stockholders may attribute
substantial financial value to our stem cell assets. If our stockholders believe
that the financial value which is or may be received by us or them from the
divestiture of our former stem cell assets is inadequate, our stock price may
decline and litigation may occur. Likewise, those Geron stockholders residing in
certain excluded jurisdictions will not receive any Asterias Series A common
stock or BioTime Warrants in the distributions should they occur, and will
receive only cash instead, which may be viewed as inadequate, and which will
result in those Geron stockholders having no continuing interest in our divested
human embryonic stem cell programs as stockholders or otherwise, which could
also result in litigation against us. As a result of these and other factors, we
may be exposed to a number of risks, including declines or fluctuations in our
stock price, additional advisor and legal fees, and distractions to our
management caused by activities undertaken in connection with resolving any
disputes related to the transaction. The occurrence of any one or more of the
above could have an adverse impact on our business and financial condition.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO CLINICAL AND
COMMERCIALIZATION ACTIVITIES </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>The ability to conduct and complete
planned and potential future Geron-sponsored or any investigator-sponsored
trials of imetelstat on a timely basis is subject to risks and uncertainties
related to factors such as performance by investigator-sponsors, availability
of drug supply, patient enrollment, and regulatory authorization.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Delays or terminations of our planned and potential future clinical
trials and of investigator-sponsored trials could be caused by matters such as:
</FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>lack of effectiveness of imetelstat during
  clinical trials or results that do not demonstrate statistically significant
  efficacy; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>safety issues, side effects or dose-limiting
  toxicities, including any additional or more severe safety issues related to
  imetelstat which may be observed in Geron-sponsored or investigator-sponsored
  trials, whether or not in the same indications or therapeutic
  areas;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>disruptions due to drug supply or quality
  issues;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>failure by independent physicians conducting
  existing or future investigator-sponsored trials of imetelstat to timely
  commence, enroll, complete or report data from such investigator-sponsored
  trials;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>not receiving timely regulatory clearances or
  approvals in any jurisdiction, whether within or outside of the United States,
  including, for example, not receiving acceptance of new manufacturing
  specifications or procedures or clinical trial protocol amendments by
  regulatory authorities, or not otherwise obtaining regulatory clearance to
  commence subsequent clinical trials;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>not receiving timely institutional review board or
  ethics committee approval of clinical trial protocols or protocol
  amendments;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>delays in patient enrollment due to size and
  nature of patient population, nature of protocols, proximity of patients to
  clinical sites, availability of effective treatments for the relevant disease
  and eligibility criteria for the trial;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>difficulty in obtaining or accessing necessary
  clinical data, including from the Myelofibrosis IST, which may result in
  incomplete data sets;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>unavailability of any study-related treatment
  (including comparator therapy);&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>lack of adequate funding to continue any clinical
  trial, including funding requirements resulting from unforeseen costs due to
  enrollment delays or discontinued participation by
  patients;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=2>issues with key vendors of
  clinical services, such as contract research organizations and laboratory
  service providers; or&nbsp;<BR>&nbsp;</FONT></FONT>
  </LI><LI><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=2>governmental or regulatory
  delays, information requests, clinical holds, and changes in regulatory
  requirements, policies and guidelines. </FONT></FONT></LI></UL>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Our enrollment
goals for future clinical trials of imetelstat, including our planned Phase 2
clinical trial in MF, and the enrollment goals of independent physicians
conducting existing or future investigator-sponsored trials of imetelstat, may
not be met. In addition, our inability to retain, or the inability of
independent physicians conducting investigator-sponsored trials of imetelstat to
retain, patients who have enrolled in a clinical trial but may be prone to
withdraw due to side effects from imetelstat, lack of efficacy or personal
issues, or who are lost to further follow-up, could result in clinical trial
delays, the inability to complete clinical trials, or incomplete data sets.
Further, any of our future clinical trials may be overseen by an internal safety
monitoring committee, or ISMC, and an ISMC may determine to delay or suspend one
or more of these trials due to safety or futility findings based on events
occurring during a clinical trial. Data that we receive from independent
physician investigators may be flawed or incomplete if the investigators fail to
follow appropriate clinical or quality practices. Delays in timely completion of
clinical testing of imetelstat, in clinical trials conducted by us or by
independent physician investigators could increase research and development
costs and could prevent or would delay us from obtaining regulatory approval for
imetelstat, both of which would likely have a material adverse effect on our
business. In addition, future Geron-sponsored clinical development of imetelstat
is highly dependent on the results of existing and potential future
investigator-sponsored trials of imetelstat in hematologic myeloid malignancies,
including the Myelofibrosis IST. </FONT><FONT face="Times New Roman" size=2>Accordingly, a
delay in the timely completion of or reporting of data from the Myelofibrosis
IST could have a material adverse effect on our ability to further develop
imetelstat or to advance imetelstat to subsequent clinical trials. Also, adverse
safety results from investigator-sponsored trials of imetelstat, including those
results that have been reported and those that may in the future be reported
from the Myelofibrosis IST, could delay or prevent the initiation or
continuation of Geron-sponsored clinical development of imetelstat. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Delays in the initiation of, or our
inability to initiate, subsequent clinical trials of imetelstat could result in
increased costs to us and would delay our ability to generate or prevent us from
generating revenues. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>To date, we have not initiated any clinical trials evaluating imetelstat
in any hematologic myeloid malignancies (other than ET), including MF. We are
currently focused on the development of imetelstat in hematologic myeloid
malignancies, other than ET, and future Geron-sponsored clinical development of
imetelstat is highly dependent on the results of existing and potential future
investigator-sponsored trials of imetelstat in hematologic myeloid malignancies,
including the Myelofibrosis IST. Because investigator-sponsored trials are not
Geron-sponsored trials, the clinical testing of imetelstat in
investigator-sponsored trials requires us to rely on the applicable
investigator&#146;s design and conduct of the trial, which we do not control, and it
is possible that the FDA or other regulatory agencies will not view these
investigator-sponsored trials, including the Myelofibrosis IST, as providing
adequate support for future clinical trials, whether controlled by us or third
parties, for any one or more reasons, including elements of the design or
execution of these investigator-sponsored trials or safety concerns or other
trial results. Accordingly, failure by physician investigators to properly
design or conduct existing or potential future investigator-sponsored trials of
imetelstat could produce results that might delay or prevent us from advancing
imetelstat into further clinical development. In addition, we do not have
control over the timing and reporting of the data from the Myelofibrosis IST or
any other investigator-sponsored trials, nor do we own the data from the trials.
Our arrangements with investigators may provide us certain information rights
with respect to the trials, including access to and the ability to use and
reference the data, including for our own regulatory filings, resulting from the
trials. If these obligations are breached by the investigators, or if the data
prove to be inadequate compared to the first-hand knowledge we might have gained
had the trials been Geron-sponsored clinical trials, or if the data cannot be
audited or verified by us, then our ability to design and conduct any
Geron-sponsored clinical trials may be adversely affected. Additionally, the FDA
or other regulatory agencies may disagree with our interpretation of
preclinical, manufacturing, or clinical data generated by any
investigator-sponsored trials. If so, the FDA or other regulatory agencies may
require us to obtain and submit additional preclinical, manufacturing, or
clinical data before we may initiate potential future Geron-sponsored clinical
trials of imetelstat and/or may not accept such additional data as adequate to
initiate any such Geron-sponsored clinical trials. Further, if we are unable to
verify, confirm or replicate the results from the Myelofibrosis IST or if
negative results are obtained, we would likely be further delayed or prevented
from advancing imetelstat into further clinical development and might decide to
discontinue our development of imetelstat, which would severely harm our
business and prospects, and could potentially cause us to cease operations.
</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT face="Times New Roman" size=2>In addition to the matters discussed
above, the commencement of subsequent clinical trials for imetelstat could be
delayed or abandoned for a variety of reasons, including as a result of failures
or delays in: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>commencement, enrollment or completion of clinical trials conducted by
  physician investigators conducting investigator-sponsored trials, or
  independent physician investigators promptly or adequately reporting data from
  such trials;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>demonstrating sufficient safety and
  efficacy in Phase 2 clinical trials conducted by us or by independent
  physician investigators to obtain regulatory clearance to commence subsequent
  clinical trials;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtaining sufficient
  funding;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>manufacturing sufficient quantities of
  imetelstat;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>producing imetelstat in a manner that meets the
  quality standards of the FDA and other regulatory
  agencies;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>ensuring our ability to manufacture imetelstat at
  acceptable costs for Phase 3 clinical trials and
  commercialization;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtaining clearance or approval of proposed trial
  designs or manufacturing specifications from the FDA and other regulatory
  authorities;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>reaching agreement on acceptable terms and on a
  timely basis, if at all, with collaborators and vendors located in the United
  States or in foreign jurisdictions, including contract research organizations,
  laboratory service providers, and the trial sites, on all aspects of clinical
  trials;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtaining institutional review board or ethics
  committee approval to conduct a clinical trial at a prospective site;
  and&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>securing and successfully screening appropriate
  subjects for participation in clinical trials. </FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2>The occurrence of any of these events
could adversely affect our ability to initiate, maintain or successfully
complete subsequent clinical trials, including our planned Phase 2 clinical
trial of imetelstat in MF, which could increase our development costs or our
ability to generate revenues could be impaired, either of which could adversely
impact our financial results and have a material adverse effect on our business.
</FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We may not be able to manufacture
imetelstat at costs or scales necessary to conduct our clinical trials or
potential future commercialization activities. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Imetelstat is
likely to be more expensive to manufacture than most other treatments currently
available today or that may be available in the future. The commercial cost of
manufacturing imetelstat will need to be significantly lower than our current
costs in order for imetelstat to become a commercially successful product.
Oligonucleotides are relatively large molecules produced using complex
chemistry, and the cost of manufacturing an oligonucleotide like imetelstat is
greater than the cost of making typical small-molecule drugs. Our present
imetelstat manufacturing processes are conducted at a relatively modest scale
appropriate for our ongoing Phase 2 clinical trials and investigator-sponsored
trials for which we provide clinical drug supply. We may not be able to achieve
sufficient scale increases or cost reductions necessary for successful
commercial production of imetelstat. Additionally, given the complexities of our
manufacturing processes, the resulting costs that we incur to conduct our
clinical trials may be higher than for other comparable treatments, requiring us
to expend relatively larger amounts of cash to complete our clinical trials,
which would negatively impact our financial condition and could increase our
need for additional capital. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Manufacturing imetelstat is subject
to process and technical challenges and regulatory risks. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We face numerous risks and uncertainties with regard to manufacturing
imetelstat. Regulatory requirements for oligonucleotide products are less
well-defined than for small-molecule drugs, and there is no guarantee that we
will achieve sufficient product quality standards required for Phase 3 clinical
trials or for commercial approval and manufacturing of imetelstat. Changes in
our manufacturing processes or formulations for imetelstat that may be made
during later stages of clinical development, including during Phase 3 clinical
trials, may result in regulatory delays, the need for further clinical trials,
rejection of a marketing application, or limitation on marketing authorization
by regulatory authorities, which would result in a material adverse effect on
our business. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>We have never conducted large-scale,
Phase 3 clinical trials, nor do we have experience as a company in those areas
required for the successful commercialization of imetelstat. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>We have never
conducted large-scale, Phase 3 clinical trials. We cannot be certain that any
large-scale, Phase 3 clinical trials will begin or be completed on time, if at
all. In order to initiate large-scale, randomized, Phase 3 clinical trials, we
will need to complete one or more Geron-sponsored Phase 2 clinical trials with
positive data generated from those trials. Phase 3 clinical trials also will
require additional financial and management resources and reliance on
third-party clinical investigators, clinical research organizations, lab service
providers, trial sites and consultants. Relying on third-party clinical
investigators or clinical research organizations may cause delays that are
outside of our control. Any such delays could have a material adverse effect on
our business. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We also do not have commercialization capabilities for imetelstat, and we
will need to establish sales, marketing and distribution capabilities or
establish and maintain agreements with third parties to market and sell
imetelstat. Developing internal sales, marketing and distribution capabilities
is an expensive and time-consuming process. We may not be able to enter into
third-party sales, marketing and distribution agreements on terms that are
economically attractive, or at all. Even if we do enter into such agreements,
these third parties may not successfully market or distribute imetelstat, which
may materially harm our business. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Obtaining regulatory approvals to
develop and market imetelstat in the United States and other countries is a
costly and lengthy process, and we cannot predict whether or when we will be
permitted to develop and commercialize imetelstat. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Federal, state and local governments in the United States and governments
in other countries have significant regulations in place that govern many of our
activities and may prevent us from successfully conducting our development
efforts or from commercializing imetelstat. The regulatory process, particularly
for a biopharmaceutical product candidate like imetelstat, is uncertain, can
take many years and requires the expenditure of substantial resources.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Prior to submission of any regulatory application seeking approval to
commence commercial sales of imetelstat, we will be required to conduct
extensive preclinical and clinical testing. For example, based on input from the
FDA, investigators, and experts, the goals for our planned Phase 2 clinical
trial in MF are to define and validate the key components of a composite
remission endpoint appropriate for one or more randomized Phase 3 clinical
trials that could be designed to potentially support full regulatory approval,
and to identify the appropriate dosing regimen designed to optimize the
benefit-risk profile of imetelstat. We expect the components of a composite
remission endpoint to be based on the IWG-MRT criteria. The IWG-MRT criteria
were established as a consensus among a group of academic experts, including the
investigator for the Myelofibrosis IST and investigators for clinical trials of
Jakafi<SUP>&#174;</SUP> and other compounds in development for MF, in order to assess
responses to investigational agents in clinical trials, but not as a regulatory
endpoint to support marketing approval. Therefore, in our planned Phase 2
clinical trial in MF, we expect to modify some or all of the components of
complete and partial remissions that are described in the IWG-MRT criteria to
enable more objective, rigorous or reproducible measurement or assessment of
responses, for example, by possibly using a central facility to review bone
marrow histology, imaging to confirm reduction in splenomegaly, and/or a patient
reporting tool to assess symptoms. If the FDA or other regulatory agencies do
not agree that any data generated from our planned Phase 2 clinical trial in MF
enabled us to identify or validate the components of an appropriate composite
remission endpoint, or to identify an appropriate dosing regimen, we would
likely be precluded from proceeding directly to one or more Phase 3 clinical
trials in MF, which would significantly delay our development timeline or could
preclude us from further developing imetelstat altogether, any of which would
have a material adverse effect on our business. Similarly, if our interpretation
of safety and efficacy data obtained from preclinical and clinical studies
varies from interpretations by the FDA or regulatory authorities in other
countries, this would likely delay, limit or prevent further development and
approval of imetelstat and have a material adverse effect on our business. For
example, the FDA and regulatory authorities in other countries may require more
or different data than what is expected to be generated from the planned
Geron-sponsored Phase 2 clinical trial in MF. In addition, delays or rejections
of regulatory approvals, or limitations in marketing authorizations, may be
encountered as a result of changes in regulatory environment or regulatory
agency policy during the period of product development and/or the period of
review of any application for regulatory agency approval for imetelstat. We do
not expect to receive regulatory approvals for imetelstat for many years, if at
all. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Imetelstat must receive all relevant regulatory agency approvals before
it may be marketed in the United States or other countries. Obtaining regulatory
approval is a lengthy, expensive and uncertain process. Because imetelstat
involves the application of new technologies and a new therapeutic approach, it
may be subject to substantial additional review by various government regulatory
authorities, and, as a result, the process of obtaining regulatory approvals for
imetelstat may proceed more slowly than for product candidates based upon more
conventional technologies, and any approval that we may receive could limit the
use of imetelstat. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Delays in
obtaining regulatory agency approvals or limitations in the scope of such
approvals could: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>significantly harm the commercial potential of
  imetelstat;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>impose costly procedures upon our
  activities;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>diminish any competitive advantages that we may
  attain; or&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>adversely affect our ability to receive royalties
  and generate revenues and profits. </FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2>Even if we commit the necessary time and
resources, the required regulatory agency approvals may not be obtained for
imetelstat. If we obtain regulatory agency approval for imetelstat, this
approval may entail limitations on the indicated uses or other aspects of the
product label for which it can be marketed that could limit the potential
commercial use of imetelstat. The occurrence of any of these events could
materially adversely affect our business. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Failure to achieve continued
compliance with government regulation over our products, if any, could delay or
halt commercialization of imetelstat, our sole product candidate.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Approved products and their manufacturers are subject to continual
review, and discovery of previously unknown problems with a product or its
manufacturer may result in restrictions on the product or manufacturer,
including importation, seizure and withdrawal of the product from the market.
The future sale by us of any commercially viable product will be subject to
government regulation related to numerous matters, including the processes of:
</FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>manufacturing;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>advertising and promoting;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>selling and marketing;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>labeling; and<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>distribution. </FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2>If, and to the extent that, we are unable
to comply with these regulations, our ability to earn revenues from product
sales will be materially and negatively impacted. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Failure to comply with regulatory requirements can result in severe civil
and criminal penalties, including but not limited to: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>recall or seizure of
  products;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>injunction against the manufacture, distribution,
  sales and marketing of products; and&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>criminal prosecution. </FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2>The imposition of any of these penalties
or other commercial limitations could significantly impair our business,
financial condition and results of operations. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO OUR FINANCIAL
POSITION AND NEED FOR ADDITIONAL FINANCING </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We have a history of losses and
anticipate continued future losses, and our continued losses could impair our
ability to sustain operations. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>We have incurred
operating losses every year since our operations began in 1990. As of September
30, 2013, our accumulated deficit was approximately $883.5 million. Losses have
resulted principally from costs incurred in connection with our research and
development activities and from general and administrative costs associated with
our operations. We expect to incur additional operating losses and, as our
clinical development activities continue, our operating losses may increase in
size. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Substantially all
of our revenues to date have been research support payments under collaboration
agreements and milestones, royalties and other revenues from our licensing
arrangements. We may be unsuccessful in entering into any new corporate
collaboration or license agreements that result in revenues, or existing
collaboration agreements or license arrangements may be terminated or expire.
Any revenues generated from ongoing collaboration agreements and revenues from
our licensing arrangements will not be sufficient alone to continue or expand
our research or development activities and otherwise sustain our operations.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We also expect to experience negative cash flow for the foreseeable
future as we fund our operating losses and capital expenditures. This will
result in decreases in our working capital, total assets and stockholders&#146;
equity, which may not be offset by future financings. We will need to generate
significant revenues to achieve profitability. We may not be able to generate
these revenues, and we may never achieve profitability. Our failure to achieve
profitability could negatively impact the market price of our common stock and
our ability to sustain operations. Even if we do become profitable, we may not
be able to sustain or increase profitability on a quarterly or annual basis.
</FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We will continue to need substantial additional
capital to conduct our operations and develop imetelstat, and our ability to
obtain the necessary funding is uncertain. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Although we anticipate completing the public offering of our common stock announced on January 30, 2014, we will nonetheless continue to require substantial capital resources in order to
conduct our operations and develop imetelstat, and we cannot assure you that our
existing capital resources, equipment financing arrangement, future interest
income and potential future sales of our common stock, including pursuant to our
At-The-Market Sales Agreement with MLV &amp; Co, LLC, will be sufficient to fund
future planned operations. The timing and degree of any future capital
requirements will depend on many factors, including: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>the accuracy of the assumptions underlying our
  estimates for our capital needs for 2014 and beyond;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>changes in our clinical development plans for
  imetelstat;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to meaningfully reduce manufacturing
  costs of imetelstat;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the magnitude and scope of our imetelstat research
  and development program, including the number of indications we intend to
  pursue;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the progress made, if any, in our imetelstat
  research and development program, including our potential future clinical
  trials and existing or future investigator-sponsored
  trials;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to establish, enforce and maintain
  strategic arrangements for research, development, clinical testing,
  manufacturing and marketing of imetelstat;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the time and costs involved in obtaining
  regulatory clearances and approvals; and&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the costs involved in preparing, filing,
  prosecuting, maintaining, defending and enforcing patent claims.
</FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, changes in our business may occur that would consume
available capital resources sooner than we expect. Additional financing through
strategic collaborations, public or private equity financings, capital lease
transactions or other financing sources may not be available on acceptable
terms, or at all. We may raise equity capital at a stock price or on other terms
that could result in substantial dilution of ownership for our stockholders. The
receptivity of the public and private equity markets to proposed financings is
substantially affected by the general economic, market and political climate and
by other factors which are unpredictable and over which we have no control. Our
ability to raise additional funds may be severely impaired if our product
candidate, imetelstat, fails to show adequate safety or efficacy in ongoing or
potential subsequent clinical trials, including in the Myelofibrosis IST and
other investigator-sponsored trials. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Further, in the event that we obtain additional funds through
arrangements with collaborative partners, these arrangements may require us to
relinquish some or all of our rights to imetelstat, which could adversely affect
our future business or operations. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If sufficient capital is not available, we may be required to delay,
reduce the scope of, suspend or eliminate some or all of the elements of our
imetelstat program, any of which could have a material adverse effect on our
business. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our ability to use our net operating
loss carryforwards and certain other tax attributes may be limited.
</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Under Section 382
of the Code, if a corporation undergoes an &#147;ownership change,&#148; generally defined
as a greater than 50% change (by value) in its equity ownership over a
three-year period, the corporation&#146;s ability to use its pre-change net operating
loss carryforwards and other pre-change tax attributes (such as research tax
credits) to offset its post-change taxable income or taxes may be limited.
Changes in our stock ownership, some of which are outside of our control, may
have resulted or could in the future result in an ownership change. If a
limitation were to apply, utilization of a portion of our domestic net operating
loss and tax credit carryforwards could be limited in future periods. In
addition, a portion of the carryforwards may expire before being available to
reduce future income tax liabilities. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO PROTECTING OUR
INTELLECTUAL PROPERTY </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our success will depend on our
ability to protect our technologies and our product candidate, imetelstat,
through patents and other intellectual property rights and to operate without
infringing the rights of others. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Protection of our
proprietary technology is critically important to our business. Our success will
depend in part on our ability to obtain, enforce and extend our patents and
maintain trade secrets, both in the United States and in other countries. If we
are unsuccessful in either of these regards, the value of our technologies and
imetelstat will be adversely affected, and we may be unable to continue our
development of imetelstat. By way of example, we do not yet have issued compound
patent coverage for imetelstat in Europe after 2020. Further, our patents may be
challenged, invalidated or circumvented, and our patent rights may not provide
proprietary protection or competitive advantages to us. In the event that we or
our licensors are unsuccessful in obtaining and enforcing patents, we may not be
able to further develop or commercialize imetelstat and our business may be
negatively impacted, and we may be unable to continue our operations.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Publication of discoveries in scientific or patent literature tends to
lag behind actual discoveries by at least several months and sometimes several
years. Therefore, the persons or entities that we or our licensors name as
inventors in our patents and patent applications may not have been the first to
invent the inventions disclosed in the patent applications or patents, or the
first to file patent applications for these inventions. As a result, we may not
be able to obtain patents for discoveries that we otherwise would consider
patentable and that we consider to be extremely significant to our future
success. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The patent positions of pharmaceutical and biopharmaceutical companies,
including ours, are highly uncertain and involve complex legal and technical
questions. In particular, legal principles for biotechnology and pharmaceutical
patents in the United States and in other countries are evolving, and the extent
to which we will be able to obtain patent coverage to protect our technologies
and imetelstat, or enforce issued patents, is uncertain. If we infringe the
patents of others, we may be blocked from continuing development work or be
required to obtain licenses on terms that may impact the value of imetelstat or
cause it to be commercially impracticable. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, on September 16, 2011, the Leahy-Smith America Invents Act,
or the AIA, was signed into law. The AIA includes a number of significant
changes to United States patent law. These include provisions that affect the
way patent applications will be prosecuted and may affect patent litigation. The
United States Patent and Trademark Office, or the Patent Office, has developed
new and untested regulations and procedures to govern the full implementation of
the AIA. Many of the substantive changes to patent law associated with the AIA,
and in particular, the first to file provisions, became effective on March 16,
2013. For example, under the AIA, patent rights are awarded to the first
inventor to file a patent application with respect to a particular invention.
Thus, after March 16, 2013, our ability to protect our patentable intellectual
property depends, in part, on our ability to be the first to file patent
applications with respect to our inventions. Delay in the filing of a patent
application for any purpose, including further development or refinement of an
invention, may result in the risk of loss of patent rights. The AIA and its
implementation could increase the uncertainties and costs surrounding the
prosecution of our patent applications and the enforcement or defense of our
issued patents, all of which could have a material adverse effect on our
business and financial condition. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The U.S. Supreme Court, or the Court, has also issued decisions for which
the full impact is not yet understood. On June 13, 2013, in </FONT><I><FONT face="Times New Roman" size=2>Association for Molecular Pathology v. Myriad Genetics,
Inc.</FONT></I><FONT face="Times New Roman" size=2> the Court held that claims to isolated
genomic DNA were not patentable subject matter, but claims to complementary DNA
(cDNA) molecules were patentable subject matter. The effect of the decision on
patents for other isolated natural products is uncertain. On March 20, 2012, in
</FONT><I><FONT face="Times New Roman" size=2>Mayo Collaborative Services, DBA Mayo Medical
Laboratories, et al. v. Prometheus Laboratories, Inc.</FONT></I><FONT face="Times New Roman" size=2>, the Court held that several claims drawn to measuring drug metabolite
levels from patient samples and correlating them to drug doses were not
patentable subject matter. The decision has created uncertainty around the
ability to patent certain biomarker-related method patents. These decisions have
increased the uncertainty with regard to our ability to obtain patents in the
future as well as the value of current and future
patents, once obtained. Depending on decisions by the U.S. federal courts and
the Patent Office, the interpretation of laws and regulations governing patents
could change in unpredictable ways that would weaken our ability to obtain new
patents or to enforce our existing patents, all of which could have a material
adverse effect on our business. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Challenges to our patent rights can
result in costly and time-consuming legal proceedings that may prevent or limit
development of imetelstat. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Our patents may
be challenged through administrative or judicial proceedings. Such proceedings
are typically lengthy and complex, and an adverse decision can result in the
loss of important patent rights. For example, where more than one party seeks
U.S. patent protection for the same technology, the Patent Office may declare an
interference proceeding in order to ascertain the party to which the patent
should be issued. Patent interferences are typically complex, highly contested
legal proceedings, subject to appeal. They are usually expensive and prolonged,
and can cause significant delay in the issuance of patents. Our pending patent
applications, or our issued patents, may be drawn into interference proceedings
or be challenged through post-grant review procedures, which may delay or
prevent the issuance of patents, or result in the loss of issued patent rights.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Under the AIA, interference proceedings have been eliminated for patent
applications filed on or after March 16, 2013, and have been replaced with other
types of proceedings, including derivation proceedings. The AIA also includes
post-grant review procedures subjecting U.S. patents to post-grant review
procedures similar to European oppositions. U.S. patents owned or licensed by us
may therefore be subject to post-grant review procedures, as well as other forms
of review and re-examination. A decision in such proceedings adverse to our
interests could result in the loss of valuable patent rights and negatively
impact our business. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Certain jurisdictions, such as Europe, New Zealand and Australia, permit
oppositions to be filed against granted patents or patents proposed to be
granted. Because our intent is to commercialize imetelstat internationally if
approved for commercial sale, securing both proprietary protection and freedom
to operate outside of the United States is important to our business. We have
been involved in both opposing the grant of patents to others through such
opposition proceedings and in defending our patent applications against
oppositions filed by others. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>These proceedings required significant time and costs required to protect
our intellectual property rights. If we are unable to commit these types of
resources for our imetelstat patent rights, we could be prevented or limited in
the development of imetelstat, which would have a material adverse effect on our
business. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>For example, we have been involved in several patent oppositions before
the European Patent Office, or EPO, with a series of companies (GemVax, Pharmexa
and KAEL-GemVax) developing GV1001, a cancer vaccine that employs a short
telomerase peptide to induce an immune response against telomerase. Pharmexa
originally obtained a European patent with broad claims to the use of telomerase
vaccines for the treatment of cancer. We opposed that patent and during the
opposition proceedings and subsequent appeal the original claims were revoked
and, new, narrower claims of the Pharmexa patent were allowed. In February 2010
and in March 2012, GemVax, AS, a company related to KAEL-GemVax, was granted two
further related European patents covering its telomerase peptide vaccine, which
we also opposed. In March 2013, GemVax, AS amended certain patent claims in
these two patents to narrow their scope, and we withdrew our oppositions to
GemVax&#146;s patents. On appeal, the Opposition Division, or OD, has approved the
amended claims for one patent, and we are waiting for a decision on the other
patent. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As more groups become engaged in scientific research and product
development in the areas of telomerase biology, the risk of our patents or
patents that we have in-licensed being challenged through patent interferences,
derivation proceedings, oppositions, re-examinations, litigation or other means
will likely increase. Challenges to our patents through these procedures can be
extremely expensive and time-consuming, even if the outcome is favorable to us.
An adverse outcome in a patent dispute could severely harm our business by:
</FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>causing us to lose patent rights in the relevant
  jurisdiction(s);&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>subjecting us to litigation, or otherwise
  preventing us from commercializing imetelstat in the relevant
  jurisdiction(s);&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>requiring us to obtain licenses to the disputed
  patents;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>forcing us to cease using the disputed technology;
  or&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=2>requiring us to develop or
  obtain alternative technologies. </FONT></FONT></LI></UL>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>We may be subject to infringement
claims that are costly to defend, and which may limit our ability to use
disputed technologies and prevent us from pursuing research and development or
commercialization of imetelstat. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Our commercial
success depends upon our ability to develop, manufacture, market and sell
imetelstat without infringing or otherwise violating the intellectual property
and other proprietary rights of third parties. There is considerable
intellectual property litigation in the biotechnology and pharmaceutical
industries, and many pharmaceutical companies, including our competitors, have
substantial patent portfolios. For example, we are aware that certain potential
competitors have or may be prosecuting broad patent estates, and while we
believe these patents will expire before imetelstat is commercialized and/or
that these patents are invalid and/or would not be infringed by the manufacture,
use or sale of imetelstat, it is possible that the owner of these patents will
assert claims against us in the future. In addition, we may not be aware of all
intellectual property rights potentially relating to imetelstat and its uses.
Thus, we do not know with certainty that imetelstat, or our intended
commercialization thereof, does not and will not infringe or otherwise violate
any third party&#146;s intellectual property. Any infringement claims against us
would likely be expensive to resolve, and if we are unable to resolve these
successfully, could subject us to an injunction which would prevent us from
commercializing imetelstat, and could also require us to pay substantial
damages. In addition to infringement claims, in the future we may also be
subject to other claims relating to intellectual property, such as claims that
we have misappropriated the trade secrets of third parties. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, we may become aware of discoveries and technologies
controlled by third parties that are advantageous to developing imetelstat. In
the event our technologies infringe the rights of others or we require the use
of discoveries and technologies controlled by third parties, we may be prevented
from pursuing research, development or commercialization of imetelstat, or may
be required to obtain licenses to those patents or other proprietary rights or
develop or obtain alternative technologies. We initiate negotiations for
licenses to other technologies as the need or opportunity arises. We may not be
able to obtain a license to a technology required for the research, development
or commercialization of imetelstat on commercially favorable terms, or at all,
or our licenses may be terminated on certain grounds, including as a result of
our failure to comply with our obligations under such licenses. If we do not
obtain a necessary license or if such a license is terminated, we may need to
redesign our technologies or obtain rights to alternate technologies, which may
not be possible, and even if possible, could cause delays in our development
efforts for imetelstat. In cases where we are unable to license necessary
technologies, we could be subject to litigation and prevented from developing
imetelstat. Our failure to obtain alternative technologies or a license to any
technology that we may require to research, develop or commercialize imetelstat
would significantly and negatively affect our business. We expect that as
imetelstat continues to progress in development, we will see more efforts by
others to obtain patents that are positioned to cover imetelstat. Our success
therefore depends significantly on our ability to operate without infringing
patents and the proprietary rights of others. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Much of the information and know-how
that is critical to our business is not patentable, and we may not be able to
prevent others from obtaining this information and establishing competitive
enterprises. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We sometimes rely on trade secrets to protect our proprietary technology,
especially in circumstances in which we believe patent protection is not
appropriate or available. We attempt to protect our proprietary technology in
part by confidentiality agreements with our employees, consultants,
collaborators and contractors. We cannot provide assurance that these agreements
will not be breached, that we would have adequate remedies for any breach, or
that our trade secrets will not otherwise become known or be independently
discovered by competitors, any of which would harm our business significantly.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO OUR RELATIONSHIPS
WITH THIRD PARTIES </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We depend on other parties to help
us develop and test imetelstat, and our ability to develop and commercialize
imetelstat may be impaired or delayed if collaborations are unsuccessful.
</FONT></I></B></P>
<P align=left><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT face="Times New Roman" size=2>Our strategy for the development, clinical
testing and commercialization of imetelstat may require us to enter into
collaborations with clinical research organizations, investigators, vendors,
clinical trial sites, corporate partners, licensors, licensees and others. We
are dependent upon the ability of these parties to perform their
responsibilities reliably. By way of example, we have contracted with two
clinical research organizations that are primarily responsible for the execution
of clinical site related activities for our ongoing imetelstat Phase 2 clinical
trials, including clinical trial site monitoring activities. In addition, for
our imetelstat program, we have contracted with a single vendor to develop and
maintain the clinical database and a single vendor to maintain our safety
database. For any future clinical trials of imetelstat that may be conducted by
us, we may rely on new or different vendors, or other third parties, with which
we may have little or no prior experience. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Accordingly, if
the performance of these services is not of the highest quality, or does not
achieve necessary regulatory compliance standards, or if such organization or
vendor stops or delays its performance for any reason, it would impair and delay
our ability to report data from our clinical trials and make the necessary
representations to regulatory authorities, if at all. In addition, licensors or
licensees could terminate their agreements with us, and we may not receive any
development or milestone payments. If we do not achieve milestones or perform
diligence obligations set forth in agreements that we have entered into with
others, or if our licensors or licensees breach or terminate their agreements
with us, our business may be materially harmed. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our imetelstat development strategy is also highly dependent on the
results of existing and potential future investigator-sponsored trials of
imetelstat in hematologic myeloid malignancies, including the Myelofibrosis IST.
We have been informed by Mayo Clinic that the Myelofibrosis IST has been closed
to new patient enrollment effective January 22, 2014. Because
investigator-sponsored trials are not Geron-sponsored trials, the clinical
testing of imetelstat in investigator-sponsored trials requires us to rely on
the applicable investigator&#146;s design and conduct of the trial, which we do not
control, and it is possible that the FDA or other regulatory agencies will not
view these investigator-sponsored trials, including the Myelofibrosis IST, as
providing adequate support for future clinical trials, whether controlled by us
or third parties, for any one or more reasons, including elements of the design
or execution of these investigator-sponsored trials or safety concerns or other
trial results. Accordingly, failure by physician investigators to properly
design or conduct existing or potential future investigator-sponsored trials of
imetelstat could produce results that might delay or prevent us from advancing
imetelstat into further clinical development. In addition, we do not have
control over the timing and reporting of the data from the Myelofibrosis IST or
any other investigator-sponsored trials, nor do we own the data from the trials.
Our arrangements with investigators may provide us certain information rights
with respect to the trials, including access to and the ability to use and
reference the data, including for our own regulatory filings, resulting from the
trials. If these obligations are breached by the investigators, or if the data
prove to be inadequate compared to the first-hand knowledge we might have gained
had the trials been Geron-sponsored clinical trials, or if the data cannot be
audited or verified by us, then our ability to design and conduct any
Geron-sponsored clinical trials may be adversely affected. Additionally, the FDA
or other regulatory agencies may disagree with our interpretation of
preclinical, manufacturing, or clinical data generated by any investigator-sponsored trials. If so, the FDA or other regulatory agencies may require us to
obtain and submit additional preclinical, manufacturing, or clinical data before
we may initiate potential future Geron-sponsored clinical trials of imetelstat
and/or may not accept such additional data as adequate to initiate any such
Geron-sponsored clinical trials. Further, if we are unable to verify, confirm or
replicate the results from the Myelofibrosis IST or if negative results are
obtained, we would likely be further delayed or prevented from advancing
imetelstat into further clinical development and might decide to discontinue our
development of imetelstat, which would severely harm our business and prospects,
and could potentially cause us to cease operations. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our ability to manufacture
imetelstat is uncertain because we must rely on third parties for manufacturing.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We rely on other companies for certain process development, supply of
starting materials, manufacturing of drug substance and drug product or other
technical and scientific work with respect to imetelstat, but we do not have
direct control over their personnel or operations. We rely on these
manufacturers to produce and deliver sufficient quantities of imetelstat to
support our clinical trials, including investigator-sponsored clinical trials,
on a timely basis and to comply with applicable regulatory requirements. If
these companies do not perform the work which they are contracted to perform,
fail to comply with applicable cGMP regulations do not complete the work within
the expected timelines, or if they fail to produce materials which are suitable
for use in clinical trials or choose to exit the business, our ability to
develop or manufacture imetelstat could be significantly harmed. For example, we
may need to change one or more of our suppliers due to these or other reasons
and the change could lead to delays in drug supply. Manufacturing delays could
adversely impact the initiation or completion of ongoing or future clinical
trials, including investigator-sponsored trials. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, our manufacturers may need to make substantial investments
to enable sufficient capacity increases and cost reductions, and to implement
those regulatory and compliance standards necessary for successful Phase 3
clinical trials and commercial production. Our manufacturers may not be able to
achieve such capacity increases, cost reductions, or regulatory and compliance
standards, and even if they do, such achievements may not be at a commercially
reasonable cost to us. We have not established long-term manufacturing
commitments, and changing manufacturers may be prolonged and difficult due to
inherent technical complexities, and because the number of potential
manufacturers is limited. It may be difficult or impossible for us to find a
replacement manufacturer on acceptable terms, or at all. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>There are other risks and uncertainties that we face with respect to
manufacturing. For example, one of our suppliers of active pharmaceutical
ingredient for imetelstat is currently restricted by the FDA from importing
materials into the United States. As another example, certain commonly used
reagents and solvents may experience market shortages and, if these shortages
occur, they may adversely impact our ability to manufacture imetelstat.
</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our reliance on investigators,
consultants, research institutions, and scientific contractors whose activities
are not wholly within our control may lead to delays in development of
imetelstat. </FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>We rely
extensively upon and have relationships with investigators, scientific
consultants, collaborators, and contractors at academic, commercial and other
institutions. Some of the investigators, scientific consultants, collaborators
and contractors upon whom we rely conduct research and development activities at
our request or initiate investigator-sponsored clinical trials to test
imetelstat, and others assist us in formulating and/or executing our research
and development and clinical and regulatory strategy or other matters related to
imetelstat. These investigators, scientific consultants, collaborators and
contractors are not our employees and may have commitments to, or consulting or
advisory contracts with, other entities that may limit their availability to us.
We have limited control over the activities of these investigators, scientific
consultants, collaborators and contractors and, except as otherwise required by
our collaboration and consulting agreements, can expect only limited amounts of
their time to be dedicated to our activities. If any of these third parties are
unable or refuse to contribute to projects on which we need their help, our
ability to generate advances in our technologies and develop imetelstat could be
significantly harmed. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO COMPETITIVE FACTORS
</FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>The loss of key personnel could slow
our ability to conduct research and develop imetelstat. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our future success depends to a significant extent on the skills,
experience and efforts of our executive officers and key members of our clinical
and scientific staff. We face intense competition for qualified individuals from
numerous pharmaceutical, biopharmaceutical and biotechnology companies, as well
as academic and other research institutions. The recent restructurings we
implemented could have an adverse impact on our ability to retain and recruit
qualified personnel or we may incur unanticipated inefficiencies caused by our
reduced personnel resources. We may be unable to retain our current personnel or
attract or assimilate other highly qualified management and scientific personnel
in the future on acceptable terms. The loss of any or all of these individuals
could harm our business and might significantly delay or prevent the achievement
of research, development or business objectives. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Some of our competitors may develop
technologies that are superior to or more cost-effective than ours, which may
significantly impact the commercial viability of imetelstat and damage our
ability to sustain operations. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The pharmaceutical and biotechnology industries are intensely
competitive. Other pharmaceutical and biotechnology companies and research
organizations currently engage in or have in the past engaged in efforts related
to the biological mechanisms that are the focus of our imetelstat program,
including the study of telomeres, telomerase and our proprietary oligonucleotide
chemistry, and the research and development of therapies for the treatment of
hematologic myeloid malignancies. In addition, other products and therapies that
could directly compete with imetelstat currently exist or are being developed by
pharmaceutical and biopharmaceutical companies and by academic institutions,
government agencies and other public and private research organizations.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Many companies are developing alternative therapies to treat hematologic
myeloid malignancies and, in this regard, are competitors of ours. For example,
if approved for commercial sale for the treatment of MF, imetelstat would
compete against Incyte Corporation&#146;s ruxolitinib, or Jakafi<SUP>&#174;</SUP>, which
is orally administered. In clinical trials, Jakafi<SUP>&#174;</SUP> reduced spleen
size, abdominal discomfort, early satiety, bone pain, night sweats and itching
in MF patients. Recently, there have also been reports of overall survival
benefit as well as improvement in bone marrow fibrosis from Jakafi<SUP>&#174;</SUP>
treatment. Other treatment modalities for MF include hydroxyurea for the
management of splenomegaly, leukocytosis, thrombocytosis and constitutional
symptoms; splenectomy and splenic irradiation for the management of splenomegaly
and co-existing cytopenias, or low blood cells; chemotherapy and pegylated
interferon. Drugs for the treatment of MF-associated anemia include
erythropoiesis-stimulating agents, androgens, danazol, corticosteroids,
thalidomide and lenalidomide. There are other investigational treatments further
along in development than imetelstat, such as momelitinib by Gilead Sciences,
Inc. and pacritinib by Cell Therapeutics, Inc., which are currently in Phase 3
clinical trials, and other inhibitors of the JAK-STAT pathway, as well as
several investigational treatments in early phase testing such as histone
deacetylase inhibitors, inhibitors of heat shock protein 90, hypomethylating
agents, PI3 Kinase and mTOR inhibitors, hedgehog inhibitors, anti-LOX2
inhibitors, recombinant pentraxin 2 protein, KIP-1 activators, TGF-beta
inhibitors, FLT inhibitors, and other tyrosine kinase inhibitors. </FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>There are more than 200 approved anti-cancer products on the market in
the United States, and several thousand in clinical development. Many of the
pharmaceutical companies developing and marketing these competing products (e.g.
Sanofi S.A., Bristol-Myers Squibb Company, Novartis AG, Incyte Corporation and
Gilead Sciences, Inc.) have significantly greater financial, technical and human
resources than we do, and greater expertise than we do in: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>research and development;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>manufacturing;&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>preclinical and clinical testing;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>obtaining regulatory approvals; and
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>marketing, sales and distribution. </FONT></LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Smaller companies
may also prove to be significant competitors, particularly through collaborative
arrangements with large and established companies. We anticipate increased
competition in the future as new companies explore treatments for hematologic
myeloid malignancies, which may significantly impact the commercial viability of
imetelstat. Academic institutions, government agencies and other public and
private research organizations may also conduct research, seek patent protection
and establish collaborative arrangements for research, clinical development and
marketing of products similar to ours. These companies and institutions compete
with us in recruiting and retaining qualified scientific and management
personnel as well as in acquiring technologies complementary to our imetelstat
program. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>In addition to the above factors, we
expect to face competition in the following areas: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>product efficacy and safety; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the timing and scope of regulatory
  consents;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>availability of resources;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>reimbursement coverage;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>price; and&nbsp;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>patent position, including potentially dominant
  patent positions of others. </FONT></LI></UL>
<P></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As a result of the foregoing, our competitors may develop more effective
or more affordable products, or achieve earlier patent protection or product
commercialization than us. Our competitors have developed, or are in the process
of developing, technologies that are, or in the future may be, competitive to
imetelstat. Some of these products may have an entirely different approach or
means of accomplishing therapeutic effects similar to those demonstrated by
imetelstat. Our competitors may develop products that are safer, more effective
or less costly than imetelstat, or more convenient to administer to patients
and, therefore, present a serious competitive threat to imetelstat. In addition,
our competitors may price their products below what we may determine to be an
acceptable price for imetelstat, may receive better third-party payor coverage
and/or reimbursement, or may be more cost effective than imetelstat. Such
competitive products or activities by our competitors may render imetelstat
obsolete, which would negatively impact our business and ability to sustain
operations. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>To be successful, imetelstat must be
accepted by the health care community, which can be very slow to adopt or
unreceptive to new technologies and products. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If approved for marketing, imetelstat may not achieve market acceptance
since hospitals, physicians, patients or the medical community in general may
decide not to accept and utilize imetelstat. If approved for commercial sale,
imetelstat will compete with a number of conventional and widely accepted drugs
and therapies manufactured and marketed by major pharmaceutical companies. The
degree of market acceptance of imetelstat will depend on a number of factors,
including: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>our establishment and demonstration to the medical
  community of the clinical efficacy and safety of imetelstat; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to demonstrate that imetelstat is
  superior to alternatives currently on the market;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to establish in the medical community
  the potential advantage of imetelstat over alternative treatment
  methods;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the label and promotional claims allowed by the
  FDA or other regulatory agencies for imetelstat, if any;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>sales, marketing and distribution support for
  imetelstat; and<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>reimbursement policies of government and
  third-party payors. </FONT></LI></UL>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The established
use of conventional products competitive with imetelstat may limit or preclude
the potential for imetelstat to receive market acceptance upon any
commercialization. We may be unable to demonstrate any pharmacoeconomic
advantage for imetelstat compared to established or standard-of-care therapies,
or newly developed therapies, for hematologic myeloid malignancies. Third-party
payors may decide that any potential improvement that imetelstat may provide to
clinical outcomes in hematologic myeloid malignancies is not adequate to justify
the costs of treatment with imetelstat. If third-party payors do not view
imetelstat as offering a better balance between clinical benefit and treatment
cost compared to standard-of-care therapies or other treatment modalities
currently in development, imetelstat may not be commercially viable. If the
health care community does not accept imetelstat for any of the foregoing
reasons, or for any other reason, our business would be materially harmed.
</FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>If we fail to obtain acceptable
prices or adequate reimbursement for imetelstat, the use of imetelstat could be
severely limited. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our ability to successfully commercialize imetelstat will depend
significantly on our ability to obtain acceptable prices and the availability of
reimbursement to the patient from third-party payors. In March 2010, the Patient
Protection and Affordability Care Act, as amended by the Health Care and
Education Affordability Reconciliation Act (collectively, the PPACA) became law.
In June 2012, the United States Supreme Court upheld the constitutionality of
key provisions of the PPACA. The PPACA contains numerous initiatives that impact
the pharmaceutical industry. These include, among other things: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>increasing existing price rebates in federally
  funded health care programs; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>expanding rebates, or other pharmaceutical company
  discounts, into new programs; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>imposing a new non-deductible excise tax on sales
  of certain prescription pharmaceutical products by prescription drug
  manufacturers and importers; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>reducing incentives for employer-sponsored health
  care; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>creating an independent commission to propose
  changes to Medicare with a particular focus on the cost of biopharmaceuticals
  in Medicare Part D; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>providing a government-run public option with
  biopharmaceutical price-setting capabilities; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>allowing the Secretary of Health and Human
  Services to negotiate drug prices within Medicare Part D directly with
  pharmaceutical manufacturers; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>reducing the number of years of data exclusivity
  for innovative biological products potentially leading to earlier biosimilar
  competition; and <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>increasing oversight by the FDA of pharmaceutical
  research and development processes and commercialization tactics.
</FONT></LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>While the PPACA
may increase the number of patients who have insurance coverage for imetelstat,
its cost containment measures could also adversely affect reimbursement for
imetelstat. Cost control initiatives could decrease the price that we receive
for imetelstat in the future. If imetelstat is not considered cost-effective or
if we fail to generate adequate third-party reimbursement for the users of
imetelstat, then we may be unable to maintain price levels sufficient to realize
an appropriate return on our investment for imetelstat, which could have an
adverse impact on our business. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO ENVIRONMENTAL AND
PRODUCT LIABILITY </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our activities involve hazardous
materials, and improper handling of these materials by our employees,
contractors, or agents could expose us to significant legal and financial
penalties. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If we are unable to comply with federal, state and county environmental
and safety laws and regulations, including those governing laboratory
procedures, exposure to blood-borne pathogens and the handling of biohazardous
materials, chemicals and various radioactive compounds previously used by us in
our discontinued research facility, we could be subject to considerable
additional cost or liability that would have a material adverse effect on our
financial condition. We, our contractors or agents may be required to incur
significant costs to comply with current or future environmental laws and
regulations and may be adversely affected by the cost of compliance with these
laws and regulations. </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Although we
believe that the safety procedures previously used by us for using, handling,
storing and disposing of hazardous materials in our discontinued research
facility complied with the standards prescribed by state and federal
regulations, we may incur significant unanticipated costs associated with the
closure and exit of our research facility. Further, any failure by us to control
the use, disposal, removal or storage, or to adequately restrict the discharge,
or assist in the clean up, of hazardous chemicals or hazardous, infectious or
toxic substances in connection with the closure of our research facility could
subject us to significant liabilities, including joint and several liability
under certain statutes. Any such liability or costs could exceed our resources
and could have a material adverse effect on our business, financial condition
and results of operations. Additionally, an accident could damage the
manufacturing facilities and operations of any third party contracted by us to
perform services with respect to our imetelstat program. Additional federal,
state and local laws and regulations affecting us may be adopted in the future.
We, our contractors and agents may incur substantial costs to comply with these
laws and regulations and substantial fines or penalties if we violate any of
these laws or regulations, which would adversely affect our business.
</FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We may not be able to obtain or
maintain sufficient insurance on commercially reasonable terms or with adequate
coverage against potential liabilities in order to protect ourselves against
product liability claims. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our business exposes us to potential product liability risks that are
inherent in the testing, manufacturing and marketing of human therapeutic and
diagnostic products. We may become subject to product liability claims if the
use of imetelstat, or GRN1005 in our discontinued trials, is alleged to have
injured patients. We currently have limited clinical trial liability insurance
and we may not be able to maintain this type of insurance for any of our
clinical trials. In addition, product liability insurance is becoming
increasingly expensive. Being unable to obtain or maintain product liability
insurance in the future on acceptable terms or with adequate coverage against
potential liabilities could have a material adverse effect on our business.
</FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our headquarters are located near
known earthquake fault zones, and the occurrence of an earthquake or other
catastrophic disaster could cause damage to our offices and equipment, which
could cause delays or even require us to cease or curtail operations.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our headquarters are located in the San Francisco Bay Area near known
earthquake fault zones and are vulnerable to significant damage from
earthquakes. We do not carry earthquake insurance. We are also vulnerable to
damage from other types of disasters, including fires, floods, power loss,
communications failures, terrorism and similar events. If any disaster were to
occur, our ability to operate our business at our office would be seriously, or
potentially completely, impaired. The insurance we maintain may not be adequate
to cover our losses from such disasters or other business interruptions.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>RISKS RELATED TO OUR COMMON STOCK AND
FINANCIAL REPORTING </FONT></B></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Historically, our stock price has
been extremely volatile. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Historically, our stock price has been extremely volatile. Between
January 1, 2004 and December 31, 2013, our stock has traded as high as $12.44
per share and as low as $0.91 per share. Between January 1, 2011 and December
31, 2013, the price has ranged between a high of $7.79 per share and a low of
$0.91 per share. The significant market price fluctuations of our common stock
have been due to and may in the future be influenced by a variety of factors,
including: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>announcements regarding our research and
  development of imetelstat, including clinical trial results or delays in any
  future clinical trials of imetelstat, or announcements regarding the results
  of or delays in investigator-sponsored trials of imetelstat, and investor
  perceptions thereof;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>announcements regarding the safety of imetelstat;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>announcements regarding our plans to discontinue
  certain programs or clinical trials, such as our prior announcements regarding
  the discontinuation of our stem cell programs and certain clinical trials;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our ability to complete the Series A Distribution
  and perception by our stockholders about the adequacy of the consideration
  received for the divestiture of our stem cell assets to Asterias;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the demand in the market for our common
  stock;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the experimental nature of
  imetelstat;<BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>fluctuations in our operating results;
</FONT></LI></UL>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>our declining cash balance as a result of
  operating losses; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>general market conditions or market conditions
  relating to the biopharmaceutical and pharmaceutical industries;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>announcements of technological innovations, new
  commercial products, or clinical progress or lack thereof by us, our
  collaborative partners or our competitors; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>announcements concerning regulatory developments,
  developments with respect to proprietary rights and our collaborations;
  <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>comments by securities analysts; <BR>&nbsp;</FONT>

  </LI><LI><FONT face="Times New Roman" size=2>large stockholders exiting their position in our
  common stock; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the issuance of common stock to partners, vendors
  or to investors to raise additional capital; and <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>the occurrence of any other risks and
  uncertainties discussed under the heading &#147;Risk Factors.&#148; </FONT></LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Stock prices and
trading volumes for many biopharmaceutical companies fluctuate widely for a
number of reasons, including factors which may be unrelated to their businesses
or results of operations, such as media coverage, legislative and regulatory
measures and the activities of various interest groups or organizations. In
addition to other risk factors described in this section, overall market
volatility, as well as general domestic or international economic, market and
political conditions, could materially and adversely affect the market price of
our common stock and the return on your investment. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>If we fail to meet continued listing
standards of NASDAQ, our common stock may be delisted, which could have a
material adverse effect on the liquidity of our common stock.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our common stock is currently traded on the Nasdaq Global Select Market.
The NASDAQ Stock Market LLC has requirements that a company must meet in order
to remain listed on NASDAQ. In particular, NASDAQ rules require us to maintain a
minimum bid price of $1.00 per share of our common stock. If the closing bid
price of our common stock were to fall below $1.00 per share for 30 consecutive
trading days or we do not meet other listing requirements, we would fail to be
in compliance with NASDAQ&#146;s listing standards. There can be no assurance that we
will continue to meet the minimum bid price requirement, or any other
requirement in the future. If we fail to meet the minimum bid price requirement,
The NASDAQ Stock Market LLC may initiate the delisting process with a
notification letter. If we were to receive such a notification, we would be
afforded a grace period of 180 calendar days to regain compliance with the
minimum bid price requirement. In order to regain compliance, shares of our
common stock would need to maintain a minimum closing bid price of at least
$1.00 per share for a minimum of 10 consecutive trading days. If our common
stock were to be delisted, the liquidity of our common stock would be adversely
affected and the market price of our common stock could decrease. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We may be subject to litigation that
will be costly to defend or pursue and uncertain in its outcome.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Securities-related class action litigation has often been brought against
companies, including many biotechnology companies, which experience volatility
in the market price of their securities. This risk is especially relevant for us
because biotechnology and biopharmaceutical companies often experience
significant stock price volatility in connection with their product development
programs. If the results of our business activities are not successful,
including without limitation, if: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>the final or any preliminary results from the
  Myelofibrosis IST, or any subsequent clinical trial of imetelstat, are not
  deemed to be successful; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>we or any investigators ascertain that the use of
  imetelstat results in significant systemic or organ toxicities or other safety
  issues resulting in an unacceptable benefit-risk profile; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>we or any investigators discontinue the further
  development of imetelstat; or <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>our stockholders believe the consideration
  received from the divestiture of our stem cell assets to be inadequate;
  </FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2>our stock price would likely decline, and
may result in litigation. A decision adverse to our interests in any such
lawsuit could result in the payment of substantial damages by us, and could have
a material adverse effect on our cash flow, results of operations and financial
position. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Our business may
bring us into conflict with our licensees, licensors, or others with whom we
have contractual or other business relationships, or with our competitors or
others whose interests differ from ours. If we are unable to resolve those
conflicts on terms that are satisfactory to all parties, we may become involved
in litigation brought by or against us. In addition, the conduct of clinical
trials, including our ongoing and any subsequent clinical trials of imetelstat
and any investigator-sponsored trials, are inherently risky and may expose us to
liability for matters such as patient injury or death, or for any failure to
meet regulatory and compliance requirements. Monitoring, initiating and
defending against legal actions are time-consuming for our management, are
likely to be expensive and may detract from our ability to fully focus our
internal resources on our business activities. The outcome of litigation is
always uncertain, and in some cases could include judgments against us that
require us to pay damages, enjoin us from certain activities, or otherwise
affect our legal or contractual rights, which could have a significant adverse
effect on our business. In addition, the inherent uncertainty of such litigation
could lead to increased volatility in our stock price and a decrease in the
value of your investment in our common stock. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>The sale of a substantial number of
shares may adversely affect the market price of our common stock.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The sale of a substantial number of shares of our common stock in the
public market, or the perception that such sales could occur, could
significantly and negatively affect the market price of our common stock. As of
September 30, 2013, we had 300,000,000 shares of common stock authorized for
issuance and 128,949,459 shares of common stock outstanding. In addition, we had reserved approximately 35,394,635 shares of common
stock for future issuance pursuant to our option and equity incentive plans and
outstanding warrants as of September 30, 2013, and subsequently agreed to issue and sell up to 25,875,000 shares of our common stock in the public offering of our common stock announced on January 30, 2014. Issuing additional shares could negatively affect the market
price of our common stock and the return on your investment. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Future sales of our common stock, including pursuant to our Sales
Agreement with MLV, or the issuance of common stock to satisfy our current or
future cash payment obligations or to acquire technology, property, or other
businesses, could cause immediate dilution and adversely affect the market price
of our common stock. In addition, under the universal shelf registration
statement filed by us in July 2012 and declared effective by the SEC in October
2012, we may sell any combination of common stock, preferred stock, debt
securities and warrants in one or more offerings, up to a cumulative value of
$200 million. The sale or issuance of our securities, as well as the existence
of outstanding options and shares of common stock reserved for issuance under
our option and equity incentive plans and outstanding warrants also may
adversely affect the terms upon which we are able to obtain additional capital
through the sale of equity securities. </FONT></P>



<P align=left><B><I><FONT face="Times New Roman" size=2>Our undesignated preferred stock may
inhibit potential acquisition bids; this may adversely affect the market price
of our common stock and the voting rights of holders of our common stock.
</FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our certificate of incorporation provides our board of directors with the
authority to issue up to 3,000,000 shares of undesignated preferred stock and to
determine or alter the rights, preferences, privileges and restrictions granted
to or imported upon these shares without further vote or action by our
stockholders. The issuance of shares of preferred stock may delay or prevent a
change in control transaction without further action by our stockholders. As a
result, the market price of our common stock may be adversely affected.
</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, if we issue preferred stock in the future that has
preference over our common stock with respect to the payment of dividends or
upon our liquidation, dissolution or winding up, or if we issue preferred stock
with voting rights that dilute the voting power of our common stock, the rights
of holders of our common stock or the market price of our common stock could be
adversely affected. </FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Provisions in our charter, bylaws
and Delaware law may inhibit potential acquisition bids for us, which may
prevent holders of our common stock from benefiting from what they believe may
be the positive aspects of acquisitions and takeovers. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman"></FONT></FONT>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Provisions
of our charter documents and bylaws may make it substantially more difficult for
a third party to acquire control of us and may prevent changes in our
management, including provisions that: </FONT></P>
<UL style="FONT-SIZE: 10pt"><LI><FONT face="Times New Roman" size=2>prevent stockholders from taking actions by
  written consent; <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>divide the board of directors into separate
  classes with terms of office that are structured to prevent all of the
  directors from being elected in any one year; and <BR>&nbsp;</FONT>
  </LI><LI><FONT face="Times New Roman" size=2>set forth procedures for nominating directors and
  submitting proposals for consideration at stockholders&#146; meetings.
</FONT></LI></UL>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Provisions of Delaware law may also inhibit potential acquisition bids
for us or prevent us from engaging in business combinations. In addition, we
have severance agreements with several employees and a severance plan which
could require an acquiror to pay a higher price. Either collectively or
individually, these provisions may prevent holders of our common stock from
benefiting from what they may believe are the positive aspects of acquisitions
and takeovers, including the potential realization of a higher rate of return on
their investment from these types of transactions. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>We do not intend to pay cash
dividends on our common stock in the foreseeable future. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Other than in connection with the anticipated Series A Distribution, we
do not anticipate paying cash dividends on our common stock in the foreseeable
future. Any payment of cash dividends will depend upon our financial condition,
results of operations, capital requirements and other factors and will be at the
discretion of our board of directors. </FONT></P>
<P align=left><B><I><FONT face="Times New Roman" size=2>Our stockholders may incur U.S.
federal income taxes as a result of the divestiture of our stem cell assets, and
non-U.S. stockholders may be subject to withholding taxes with respect to the
divestiture. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If the anticipated Series A Distribution occurs, the Series A
Distribution will not qualify as a tax-free spin-off under Section 355 of the
Code. Accordingly, the fair market value of the Asterias Series A common stock
at the time of the Series A Distribution, if it occurs, and the amount of any
cash distributed could be treated as dividend income for U.S. federal income tax
purposes for Geron stockholders. Similarly, we can provide no assurance that the
distribution of BioTime Warrants by Asterias will not result in dividend income.
As described above under the section entitled &#147;Recent Developments&#151;Stem Cell
Divestiture; Asterias Series A Distribution&#151;Tax Consequences of Anticipated
Distribution,&#148; any gain recognized by a Geron stockholder from the Series A
Distribution or the distribution of the BioTime Warrants will be short-term
capital gain if the Geron stockholder has held our stock or, as applicable, the
Asterias Series A common stock for one year or less at the time of relevant
distribution. </FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If any dividend income or gain were recognized by Geron stockholders in
respect of our distribution of the Asterias Series A common stock and cash, if
any, or the distribution by Asterias of the BioTime Warrants, as described above
under the section entitled &#147;Recent Developments&#151;Stem Cell Divestiture; Asterias
Series A Distribution&#151;Tax Consequences of Anticipated Distribution,&#148; then Geron
stockholders could incur U.S. federal income taxes with respect to the receipt
of such distribution. In addition, &#147;Non-U.S. Holders&#148; (as defined above under &#147;Recent Developments&#151;Stem Cell Divestiture; Asterias Series A Distribution&#151;Tax Consequences of Anticipated Distribution&#148;) may be subject to U.S. federal withholding. The lack of an existing market for the
Asterias Series A common stock could limit or preclude the ability of our
stockholders to sell a sufficient quantity of Asterias Series A common stock to
satisfy such potential tax liabilities. As a result, if the anticipated Series A
Distribution occurs, Geron stockholders may incur tax liabilities, but be unable
to realize value from any Asterias Series A common stock distributed by Geron
and/or the BioTime Warrants to be distributed by Asterias. Because no further
action is required on the part of Geron stockholders to receive the Asterias
Series A common stock and the related BioTime Warrants in the distributions, if
the anticipated Series A Distribution occurs and Geron stockholders do not want
to receive the Asterias Series A common stock and the related BioTime Warrants
in the anticipated distributions (or cash in lieu thereof), the only recourse
for Geron stockholders will be to divest their Geron common stock prior to the
record date to be set by our board of directors for the Series A Distribution.
Sales of Geron common stock by stockholders who do not want to receive Asterias
Series A common stock and the related BioTime Warrants in the anticipated distributions could result in downward pressure on our stock price. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><I><FONT face="Times New Roman" size=2>Failure to achieve and maintain
effective internal controls in accordance with Section 404 of the Sarbanes-Oxley
Act of 2002 could have a material adverse effect on our business and stock
price. </FONT></I></B></P>
<P align=left><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, requires
that we establish and maintain an adequate internal control structure and
procedures for financial reporting. Our annual reports on Form 10-K must contain
an assessment by management of the effectiveness of our internal control over
financial reporting and must include disclosure of any material weaknesses in
internal control over financial reporting that we have identified. In addition,
our independent registered public accounting firm must annually provide an
opinion on the effectiveness of our internal control over financial reporting.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The requirements
of Section 404 are ongoing and also apply to future years. We expect that our
internal control over financial reporting will continue to evolve as our
business develops. Although we are committed to continue to improve our internal
control processes and we will continue to diligently and vigorously review our
internal control over financial reporting in order to ensure compliance with
Section 404 requirements, any control system, regardless of how well designed,
operated and evaluated, can provide only reasonable, not absolute, assurance
that its objectives will be met. Therefore, we cannot be certain that in the
future material weaknesses or significant deficiencies will not exist or
otherwise be discovered. If material weaknesses or other significant
deficiencies occur, these weaknesses or deficiencies could result in
misstatements of our results of operations, restatements of our consolidated
financial statements, a decline in our stock price, or other material adverse
effects on our business, reputation, results of operations, financial condition
or liquidity. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
