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<SEC-DOCUMENT>0001206774-10-001134.txt : 20100430
<SEC-HEADER>0001206774-10-001134.hdr.sgml : 20100430
<ACCEPTANCE-DATETIME>20100430171552
ACCESSION NUMBER:		0001206774-10-001134
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20100331
FILED AS OF DATE:		20100430
DATE AS OF CHANGE:		20100430

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:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20859
		FILM NUMBER:		10788782

	BUSINESS ADDRESS:	
		STREET 1:		230 CONSTITUTION DRIVE
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025
		BUSINESS PHONE:		6504737700

	MAIL ADDRESS:	
		STREET 1:		200 CONSTITUTION DRIVE
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GERON CORPORATION
		DATE OF NAME CHANGE:	19960521
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>geron_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
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    <title>geron_10q.htm</title>
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      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">UNITED STATES<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">SECURITIES AND EXCHANGE COMMISSION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">WASHINGTON D.C. 20549</font></font><font style="FONT-FAMILY: serif">
<br></font><font size="2" style="FONT-FAMILY: serif">_______________ </font></div>
      <div>&#160;</div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">FORM 10-Q<br></font></font><font size="2" style="FONT-FAMILY: serif">_______________</font></div>
      <div>
      </div>
      <div>&#160;</div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr valign="bottom">
            <td align="left" colspan="3" valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">(Mark One)</font></td>
          </tr><tr valign="bottom">
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: wingdings">x</font></font></td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;&#160;&#160;&#160;&#160; </font></font></td>
            <td align="left" valign="top" width="97%"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">QUARTERLY REPORT
      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></td>
            <td align="left" valign="top" width="97%"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">ACT OF
      1934</font></font></td>
          </tr><tr>
            <td colspan="3" valign="top" width="100%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;</font></font></td>
            <td align="left" valign="top" width="1%">
            </td>
            <td valign="top" width="97%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">For the quarterly period ended March 31,
      2010</font></font></td>
          </tr><tr>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;</font></font></td>
            <td align="left" valign="top" width="1%">
            </td>
            <td valign="top" width="97%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;</font></font></td>
            <td align="left" valign="top" width="1%">
            </td>
            <td valign="top" width="97%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">OR</font></font></td>
          </tr><tr>
            <td colspan="3" valign="top" width="100%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" valign="top" width="1%"><font size="2" style="FONT-FAMILY: wingdings"><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font></font></td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;&#160;&#160;&#160;&#160;</font></font></td>
            <td align="left" valign="top" width="97%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">TRANSITION REPORT PURSUANT TO SECTION 13
      OR 15(d) OF THE SECURITIES EXCHANGE</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" valign="top" width="1%"><font size="2" style="FONT-FAMILY: wingdings">&#160;</font></td>
            <td align="left" valign="top" width="1%">&#160;</td>
            <td align="left" valign="top" width="97%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">ACT OF
      1934</font></font></td>
          </tr></table>
      <div>&#160;</div>
      <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">For the transition period from _____ to _____. </font></font></div>
      <div>&#160;</div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Commission File Number: 0-20859
</font></font><br><font size="2" style="FONT-FAMILY: serif">________________
</font></div>
      <div>&#160;</div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(Exact name of registrant as specified in its
charter)</font></font></div>
      <div align="center">
      </div>
      <div>&#160;</div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">DELAWARE</font></font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">75-2287752</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(State or other jurisdiction
      of</font></font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(I.R.S. Employer</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">incorporation or
      organization)</font></font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Identification
  No.)</font></font></td>
          </tr></table><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">&#160;</font></font><br>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">230 CONSTITUTION DRIVE, MENLO PARK,
      CA</font></font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">94025</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(Address of principal executive
      offices)</font></font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(Zip
Code)</font></font></td>
          </tr></table>
      <div>&#160;</div>
      <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(650) 473-7700<br></font></font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(Registrant&#8217;s telephone number, including area code)</font></font></div>
      <div>&#160;</div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">N/A <br></font></font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">(Former name, former address and former fiscal year, if changed since
last report)</font></font></div>
      <div>&#160;</div>
      <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.&#160; </font><font size="2" style="FONT-FAMILY: serif">Yes&#160;<font face="Wingdings">x</font><font style="FONT-FAMILY: Times New Roman">&#160; </font><font size="2" style="FONT-FAMILY: serif">No </font><font size="2" face="Wingdings">o</font></font></div>
      <div>&#160;</div>
      <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate website, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).&#160; Yes&#160;<font face="Wingdings">o</font><font style="FONT-FAMILY: Times New Roman">&#160; </font><font size="2" style="FONT-FAMILY: serif">No </font><font size="2" face="Wingdings">o</font></font></div>
      <div>&#160;</div>
      <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of &#8220;large accelerated
filer,&#8221; &#8220;accelerated filer,&#8221; and &#8220;smaller reporting company&#8221; in Rule 12b-2 of
the Exchange Act.</font></div>
      <div align="left">
      </div>
      <div>&#160;</div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="45%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160; Large accelerated filer</font></td>
            <td align="left" nowrap width="6%"><font size="2" style="FONT-FAMILY: wingdings">o</font></td>
            <td align="left" nowrap width="37%"><font size="2" style="FONT-FAMILY: serif">Accelerated filer</font></td>
            <td align="left" nowrap width="11%"><font size="2" style="FONT-FAMILY: wingdings">x</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="45%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160; Non-accelerated filer</font></td>
            <td align="left" nowrap width="6%"><font size="2" style="FONT-FAMILY: wingdings">o</font></td>
            <td align="left" nowrap width="37%"><font size="2" style="FONT-FAMILY: serif">Smaller reporting company</font></td>
            <td align="left" nowrap width="11%"><font size="2" style="FONT-FAMILY: wingdings">o</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="45%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160; (Do not check if a smaller reporting
company)</font></td>
            <td align="left" nowrap width="6%">&#160; </td>
            <td align="left" nowrap width="37%">&#160; </td>
            <td align="left" nowrap width="11%">&#160; </td>
          </tr></table>
      <div>&#160;</div>
      <div><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).&#160; <font size="2" style="FONT-FAMILY: serif">Yes&#160;<font face="Wingdings">o</font><font style="FONT-FAMILY: Times New Roman">&#160; </font><font size="2" style="FONT-FAMILY: serif">No </font><font size="2" face="Wingdings">x</font></font></font></div>
      <div>&#160;</div>
      <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Indicate the number of shares
outstanding of each of the issuer&#8217;s classes of common stock, as of the latest
practicable date.</font></div>
      <div>&#160;</div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Class:</font></td>
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Outstanding at April 26,
  2010:</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Common Stock, $0.001 par value</font></td>
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">98,181,475&#160;shares</font></td>
          </tr></table>
    </div><br>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br>INDEX
</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="2%">&#160;</td>
            <td nowrap width="1%">&#160;&#160;&#160; &#160;</td>
            <td align="left" nowrap width="96%">
            </td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Page</font></font></td>
          </tr><tr valign="bottom">
            <td colspan="4" width="100%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART I. FINANCIAL
      INFORMATION</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">Item 1:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Condensed Consolidated Financial Statements</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">1</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Condensed Consolidated Balance Sheets as
      of March 31, 2010 and December 31, 2009</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">1</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Condensed Consolidated Statements of Operations for the three
      months ended March 31, 2010 and 2009</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">2</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Condensed Consolidated Statements of
      Cash Flows for the three months ended March 31, 2010 and 2009</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">3</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Notes to Condensed Consolidated Financial Statements</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">4</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Item 2:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Management&#8217;s Discussion and Analysis of
      Financial Condition and Results of Operations</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">18</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">Item 3:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Quantitative and Qualitative Disclosures About Market
Risk</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">24</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Item 4:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Controls and Procedures</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">25</font></td>
          </tr><tr>
            <td colspan="4" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td colspan="4" width="100%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART II. OTHER
    INFORMATION</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">Item 1:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Legal Proceedings</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">26</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Item 1A:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Risk Factors</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">26</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">Item 2:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Unregistered Sales of Equity Securities and Use of
    Proceeds</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">41</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Item 3:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Defaults Upon Senior
Securities</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">42</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">Item 4:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">(Removed and Reserved)</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">42</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Item 5:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Other Information</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">42</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">Item 6:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="96%"><font size="2" style="FONT-FAMILY: serif">Exhibits</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">42</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="96%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">SIGNATURE</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">42</font></td>
          </tr></table>
    </div><br>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART I. FINANCIAL INFORMATION
</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 1. CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS </font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION </font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CONDENSED CONSOLIDATED BALANCE SHEETS<br>(IN
THOUSANDS) </font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="81%">
            </td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160;</td>
            <td colspan="3" nowrap width="8%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">MARCH 31,</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160;</td>
            <td colspan="3" nowrap width="8%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">DECEMBER 31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="8%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="8%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="8%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(UNAUDITED)</font></font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="6%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
          </tr><tr valign="bottom">
            <td nowrap width="81%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ASSETS</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">Current assets:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Cash and cash equivalents</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">35,900</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">34,601</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Restricted cash</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">791</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">791</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Current portion of marketable
      securities</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">89,390</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">77,009</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Interest and other receivables</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">1,359</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">1,318</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Current portion of prepaid
    assets</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">5,794</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">4,060</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Total current assets</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">133,234</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">117,779</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Noncurrent portion of marketable
      securities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">40,447</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">54,669</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">Noncurrent portion of prepaid assets</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">1,966</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">2,372</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Investments in licensees</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">932</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,328</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">Property and equipment, net</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">3,934</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">3,938</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Deposits and other assets</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">212</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">296</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">180,725</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">180,382</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr>
            <td colspan="9" width="99%">&#160;</td>
          </tr><tr valign="bottom">
            <td nowrap width="81%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">LIABILITIES AND STOCKHOLDERS&#8217;
      EQUITY</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">Current liabilities:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Accounts payable</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,807</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">2,176</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Accrued compensation</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">1,534</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">1,757</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Accrued liabilities</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,925</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,925</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Current portion of deferred
      revenue</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">700</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">700</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Fair value of derivatives</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">839</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">897</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Total current liabilities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">6,805</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">7,455</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Noncurrent portion of deferred
      revenue</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">175</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">350</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2" style="FONT-FAMILY: serif">Commitments and contingencies</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Stockholders&#8217; equity:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Common stock</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">97</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">92</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Additional paid-in capital</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">767,831</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">750,158</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Accumulated deficit</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      (593,907</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;
      (577,267</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Accumulated other comprehensive
      loss</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(276</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(406</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="FONT-FAMILY: serif">Total stockholders&#8217;
    equity</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">173,745</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">172,577</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="81%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">180,725</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">180,382</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" colspan="9" nowrap width="99%">&#160;</td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">See accompanying
notes. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">1 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION </font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS<br>(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)<br>(UNAUDITED)
</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="83%">
            </td>
            <td colspan="7" nowrap width="17%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">THREE MONTHS ENDED</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%">
            </td>
            <td colspan="7" nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">MARCH 31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%">
            </td>
            <td colspan="3" nowrap width="8%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="8%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Revenues from collaborative
      agreements</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">225</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">License fees and royalties</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">693</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">444</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Total revenues</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">918</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">444</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Operating expenses:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Research and development (including
      amounts</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      for related parties: 2010-$327, 2009-$429)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">13,545</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">13,771</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      General and administrative</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,850</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,378</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="FONT-FAMILY: serif">Total operating expenses</font></font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">17,395</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">17,149</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Loss from operations</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(16,477</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(16,705</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">Unrealized gain on derivatives, net</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">58</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">77</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Interest and other income</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">202</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">525</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">Losses recognized under equity method investment</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">(396</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="2" style="FONT-FAMILY: serif">(656</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Interest and other expense</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(27</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(52</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" style="BORDER-BOTTOM: #ffffff 2pt solid"><font size="2" style="FONT-FAMILY: serif">Net loss</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(16,640</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #ffffff 2pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #ffffff 2pt solid">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(16,811</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #ffffff 2pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #c0c0c0 2pt solid"><font size="2" style="FONT-FAMILY: serif">Basic and diluted
      net loss per share</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(0.18</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #c0c0c0 2pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #c0c0c0 2pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(0.20</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #c0c0c0 2pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Shares used in computing basic and
      diluted net loss per share</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160; 95,012,100</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160; 84,160,889</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" colspan="8" nowrap width="100%">&#160;</td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">See accompanying
notes.</font><font style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">2 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION </font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS<br>CHANGE IN CASH AND CASH EQUIVALENTS<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(IN THOUSANDS)<br>(UNAUDITED) </font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="85%">
            </td>
            <td colspan="7" nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">THREE MONTHS ENDED</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td colspan="7" nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">MARCH 31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160;</td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Cash flows from operating
      activities:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Net loss</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(16,640</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(16,811</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Adjustments to reconcile net loss to net
      cash used in operating activities:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Depreciation and
      amortization</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">397</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">431</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Accretion and amortization on investments,
      net</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">909</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(9</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Loss on retirement/sale of property and
      equipment</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Issuance of common stock in exchange for
      services by non-employees</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">865</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">745</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Stock-based compensation for employees and
      directors</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">3,069</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">2,520</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Amortization related to 401(k)
      contributions</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">193</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">127</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Loss on investments in
    licensees</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">396</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">656</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Unrealized gain on derivatives,
      net</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(58</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(77</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Changes in assets and liabilities:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Other current and noncurrent
      assets</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,299</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">2,076</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Other current and noncurrent
      liabilities</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">208</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">1,292</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">Advance payment from related party for
      research</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      and development</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(241</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Translation adjustment</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(3</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Net cash used in operating
      activities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(9,365</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(9,290</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Cash flows from investing
      activities:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Restricted cash transfer</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(1</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Purchases of property and
      equipment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(393</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(529</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Purchases of marketable securities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(32,935</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(48,460</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Proceeds from maturities of marketable
      securities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">34,000</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">27,879</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Net cash provided by (used in) investing activities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">672</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(21,111</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Cash flows from financing
      activities:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Proceeds from issuances of common stock and warrants, net of
      issuance costs</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">9,992</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">46,654</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Net cash provided by financing
      activities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">9,992</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">46,654</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Net increase in cash and cash equivalents</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">1,299</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">16,253</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Cash and cash equivalents at the
      beginning of the period</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">34,601</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">109,348</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Cash and cash equivalents at the end of the period</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160; 35,900</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160; 125,601</font></td>
            <td align="left" nowrap width="1%">&#160; </td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" colspan="8" nowrap width="100%">&#160;</td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">See accompanying
notes. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">3 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">1. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Basis of Presentation</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The terms &#8220;Geron&#8221;, the &#8220;Company&#8221;, &#8220;we&#8221; and &#8220;us&#8221; as used in this report
refer to Geron Corporation. The accompanying unaudited condensed consolidated
balance sheet as of March 31, 2010 and condensed consolidated statements of
operations for the three months ended March 31, 2010 and 2009 have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by U.S. generally accepted accounting principles for complete
financial statements. In the opinion of management of Geron, all adjustments
(consisting only of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month period
ended March 31, 2010 are not necessarily indicative of the results that may be
expected for the year ending December 31, 2010 or any other period. These
financial statements and notes should be read in conjunction with the financial
statements for each of the three years ended December 31, 2009, included in the
Company&#8217;s Annual Report on Form 10-K. The accompanying condensed consolidated
balance sheet as of December 31, 2009 has been derived from audited financial
statements at that date. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Principles of Consolidation
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The consolidated financial statements include the accounts of Geron, our
wholly-owned subsidiary, Geron Bio-Med Ltd. (Geron Bio-Med), a United Kingdom
company, and our majority-owned subsidiary, TA Therapeutics, Ltd. (TAT), a Hong
Kong company. We have eliminated intercompany accounts and transactions. We
prepare the financial statements of Geron Bio-Med using the local currency as
the functional currency. We translate the assets and liabilities of Geron
Bio-Med at rates of exchange at the balance sheet date and translate income and
expense items at average monthly rates of exchange. The resultant translation
adjustments are included in accumulated other comprehensive income (loss), a
separate component of stockholders&#8217; equity. The functional currency for TAT is
U.S. dollars. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Net Loss Per Share </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Basic earnings (loss) per share is calculated based on the weighted
average number of shares of common stock outstanding during the period. Diluted
earnings (loss) per share is calculated based on the weighted average number of
shares of common stock and dilutive securities outstanding during the period.
Potential dilutive securities primarily consist of outstanding employee stock
options, restricted stock and warrants to purchase common stock and are
determined using the treasury stock method at an average market price during the
period. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Because we were in a net loss position, diluted earnings per share
excludes the effects of potential dilutive securities. Had we been in a net
income position, diluted earnings per share would have included the shares used
in the computation of basic net loss per share as well as an additional
1,248,855 and </font><font size="2" style="FONT-FAMILY: serif">857,838</font><font size="2" style="FONT-FAMILY: serif"> shares for 2010 and 2009, respectively,
related to outstanding options, restricted stock and warrants (as determined
using the treasury stock method at the estimated average market value).
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Use of Estimates </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires us to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. On a regular basis, management evaluates these estimates and
assumptions. Actual results could differ from those estimates. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">4 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Fair Value of Financial Instruments
</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Cash Equivalents and Marketable
Securities</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We consider all highly liquid investments with an original maturity of
three months or less to be cash equivalents. We are subject to credit risk
related to our cash equivalents and marketable securities. We place our cash and
cash equivalents in money market funds and municipal securities. Our current
investments include U.S. Treasury securities, U.S. government-sponsored
enterprise securities and corporate notes with original maturities ranging from
five to 24 months.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We classify our marketable securities as available-for-sale. We record
available-for-sale securities at fair value with unrealized gains and losses
reported in accumulated other comprehensive income (loss) in stockholders&#8217;
equity. Realized gains and losses are included in interest and other income and
are derived using the specific identification method for determining the cost of
securities sold and have been insignificant to date. Dividend and interest
income are recognized when earned and included in interest and other income in
our condensed consolidated statements of operations. We recognize a charge when
the declines in the fair values below the amortized cost basis of our
available-for-sale securities are judged to be other-than-temporary. We consider
various factors in determining whether to recognize an other-than-temporary
charge, including whether we intend to sell the security or whether it is more
likely than not that we would be required to sell the security. Declines in
market value associated with credit losses judged as other-than-temporary result
in a charge to interest and other income. Other-than-temporary charges not
related to credit losses are included in accumulated other comprehensive income
(loss) in stockholders&#8217; equity. See Note 2 on Fair Value Measurements.
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Marketable and Non-Marketable Investments in
Licensees</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Investments in non-marketable nonpublic companies, in which we own less
than 20% of the outstanding voting stock and do not otherwise have the ability
to exert significant influence over the investees, are carried at cost, as
adjusted for other-than-temporary impairments. Investments in marketable equity
securities are carried at fair value as of the balance sheet date with
unrealized gains and losses reported in accumulated other comprehensive income
(loss) in stockholders&#8217; equity. Realized gains or losses are included in
interest and other income and are derived using the specific identification
method. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We apply the equity method of accounting for investments in licensees in
which we own more than 20% of the outstanding voting stock or otherwise have the
ability to exert significant influence over the investees. Under this method, we
increase (decrease) the carrying value of our investment by a proportionate
share of the investee&#8217;s earnings (losses). If losses exceed the carrying value
of the investment, losses are then applied against any advances to the investee,
including any commitment to provide financial support, until those amounts are
reduced to zero. The equity method is then suspended until the investee has
earnings. Any proportionate share of investee earnings is first applied to the
share of accumulated losses not recognized during the period the equity method
was suspended. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We monitor our investments in licensees for impairment on a quarterly
basis and make appropriate reductions in carrying values when such impairments
are determined to be other-than-temporary. Other-than-temporary charges are
included in interest and other income. Factors used in determining whether an
other-than-temporary charge should be recognized include, but are not limited
to: the current business environment including competition and uncertainty of
financial condition; going concern considerations such as the rate at which the
investee company utilizes cash, and the investee company&#8217;s ability to obtain
additional private financing to fulfill its stated business plan; the need for
changes to the investee company&#8217;s existing business model due to changing
business environments and its ability to successfully implement necessary
changes; and the general progress toward product development, including clinical
trial results. See Note 2 on Fair Value Measurements. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">5 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED) </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Fair Value of Derivatives</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">For warrants and non-employee options classified as assets or
liabilities, the fair value of these instruments is recorded on the condensed
consolidated balance sheet at inception of such classification and adjusted to
fair value at each financial reporting date. The change in fair value of the
warrants and non-employee options is recorded in the condensed consolidated
statements of operations as unrealized gain (loss) on derivatives. Fair value of
warrants and non-employee options is estimated using the Black Scholes
option-pricing model. The warrants and non-employee options continue to be
reported as an asset or liability until such time as the instruments are
exercised or expire or are otherwise modified to remove the provisions which
require this treatment, at which time these instruments are marked to fair value
and reclassified from assets or liabilities to stockholders&#8217; equity. For
warrants and non-employee options classified as permanent equity, the fair value
of the warrants and non-employee options is recorded in stockholders&#8217; equity and
no further adjustments are made. See Note 2 on Fair Value Measurements.
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Revenue Recognition</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We have several license agreements with various oncology, diagnostics,
research tools, agriculture and biologics production companies. With certain of
these agreements, we receive nonrefundable license payments in cash or equity
securities, option payments in cash or equity securities, royalties on future
sales of products, milestone payments, or any combination of these items.
Upfront nonrefundable signing, license or non-exclusive option fees are
recognized as revenue when rights to use the intellectual property related to
the license have been delivered and over the term of the agreement if we have
continuing performance obligations. Milestone payments, which are subject to
substantive contingencies, are recognized upon completion of specified
milestones, representing the culmination of the earnings process, according to
contract terms. Royalties are generally recognized upon receipt of the related
royalty payment. Deferred revenue represents the portion of research and license
payments received which has not been earned. When payments are received in
equity securities, we do not recognize any revenue unless such securities are
determined to be realizable in cash. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We recognize revenue under collaborative agreements as the related
research and development costs for services are rendered. We recognize related
party revenue under collaborative agreements as the related research and
development costs for services are rendered and when the source of funds have
not been derived from our contributions to the related party. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Restricted Cash </font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>The components of restricted cash
were as follows: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31,</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">December 31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td colspan="5" nowrap width="9%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Certificate of deposit for unused
      equipment line of credit</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">530</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">530</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">Certificate of deposit for credit card purchases</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">
            </td>
            <td nowrap width="3%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"><font size="2" style="FONT-FAMILY: serif">261</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td nowrap width="1%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">
            </td>
            <td nowrap width="3%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"><font size="2" style="FONT-FAMILY: serif">261</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#c0c0c0" style="PADDING-BOTTOM: 2pt">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: black 2pt double; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td nowrap width="3%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: black 2pt double; TEXT-ALIGN: right"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 791</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="PADDING-BOTTOM: 2pt">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: black 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: black 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 791</font></td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" colspan="6" nowrap width="99%">&#160;</td>
          </tr></table>
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Research and Development Expenses
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">All research and development costs are expensed as incurred. The value of
acquired in-process research and development is charged to research and
development expense on the date of acquisition, if not acquired in connection
with a business combination. Research and development expenses include, but are
not limited to, acquired in-process technology deemed to have no alternative
future use, payroll and personnel expense, lab supplies, preclinical studies,
raw materials to manufacture clinical trial drugs, manufacturing costs for
research and clinical trial materials, sponsored research at other labs,
consulting, costs to maintain technology licenses and research-related overhead.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">6 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED) </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Depreciation and Amortization
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We record property and equipment at cost and calculate depreciation using
the straight-line method over the estimated useful lives of the assets,
generally four years. Leasehold improvements are amortized over the shorter of
the estimated useful life or remaining term of the lease. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Stock-Based Compensation </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We recognize compensation expense on a straight-line basis for
stock-based awards granted after January 1, 2006, plus unvested awards granted
prior to January 1, 2006 based on the grant-date fair value estimated using
accounting guidance in effect at that time and following the straight-line
attribution method. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The following table summarizes the stock-based compensation expense
related to stock options, restricted stock awards and employee stock purchases
for the three months ended March 31, 2010 and 2009 which was allocated as
follows: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="88%">
            </td>
            <td colspan="5" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%">
            </td>
            <td colspan="5" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160; &#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%">
            </td>
            <td colspan="5" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Research and development</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,647</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,226</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%"><font size="2" style="FONT-FAMILY: serif">General and administrative</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">1,422</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">1,294</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Stock-based compensation expense
      included in</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      operating expenses</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 3,069</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 2,520</font></td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td colspan="6" nowrap width="99%">&#160;</td>
          </tr></table>
    </div><br>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Stock Options</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The fair value of options granted during the three months ended March 31,
2010 and 2009 has been estimated at the date of grant using the Black Scholes
option-pricing model with the following assumptions: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="83%">
            </td>
            <td colspan="3" nowrap width="14%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended March
      31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%">
            </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160; &#160;</td>
            <td nowrap width="8%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Dividend yield</font></td>
            <td nowrap width="5%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">None</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="8%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">None</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="83%" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Expected volatility</font></td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.627</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="8%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.630</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="83%" bgcolor="#c0c0c0" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Risk-free interest rate range</font></td>
            <td nowrap width="5%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">2.38% to 2.65%</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="8%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">1.54% to 1.81%</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="83%" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Expected term</font></td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">5 yrs</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="8%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">5
yrs</font></td>
          </tr></table>
    </div><br>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Employee Stock Purchase
Plan</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The fair value of employees&#8217; purchase rights during the three months
ended March 31, 2010 and 2009 has been estimated using the Black Scholes
option-pricing model with the following assumptions: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="88%">
            </td>
            <td colspan="3" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended March
      31,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%">
            </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160;</td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Dividend yield</font></td>
            <td nowrap width="5%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">None</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">None</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="88%" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Expected volatility range</font></td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.592 to 0.995</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.536 to 1.016</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="88%" bgcolor="#c0c0c0" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Risk-free interest rate range</font></td>
            <td nowrap width="5%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.18% to 0.54%</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.28% to 2.38%</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="88%" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Expected term range</font></td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">6 - 12 mos</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">6 - 12
mos</font></td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">7 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Dividend yield is based on historical cash dividend payments, which have
been none to date. The expected volatility is based on historical volatilities
of our stock since traded options on Geron stock do not correspond to option
terms and the trading volume of options is limited. The risk-free interest rate
range is based on the U.S. Zero Coupon Treasury Strip Yields for the expected
term in effect on the date of grant for an award. The expected term of options
is derived from actual historical exercise data and represents the period of
time that options granted are expected to be outstanding. The expected term of
employees&#8217; purchase rights is equal to the purchase period. We grant options
under our equity plans to employees, non-employee directors and consultants, for
whom the vesting period is generally four years. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As stock-based compensation expense recognized in the condensed
consolidated statements of operations for the three months ended March 31, 2010
and 2009 is based on awards ultimately expected to vest, it has been reduced for
estimated forfeitures but at a minimum, reflects the grant-date fair value of
those awards that actually vested in the period. Forfeitures have been estimated
at the time of grant based on historical experience and revised, if necessary,
in subsequent periods if actual forfeitures differ from those
estimates.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Restricted Stock Awards</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The stock-based compensation expense related to restricted stock awards
is determined using the fair value of our common stock on the date of grant and
reduced for estimated forfeitures as applicable. The fair value is amortized as
compensation expense over the service period of the award on a straight-line
basis. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Non-Employee Stock-Based
Awards</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">For our non-employee stock-based awards, the measurement date on which
the fair value of the stock-based award is calculated is equal to the earlier of
(i) the date at which a commitment for performance by the counterparty to earn
the equity instrument is reached or (ii) the date at which the counterparty&#8217;s
performance is complete. We recognize stock-based compensation expense for the
fair value of the vested portion of non-employee awards in our condensed
consolidated statements of operations. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Comprehensive Loss</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Comprehensive loss is comprised of net loss and other comprehensive
income (loss). Other comprehensive income (loss) includes certain changes in
stockholders&#8217; equity which are excluded from net loss. The activity in
comprehensive loss during the three months ended March 31, 2010 and 2009 was as
follows: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="95%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="87%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="13%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="87%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="13%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="87%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="87%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="13%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Net loss</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(16,640</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(16,811</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">Change in unrealized loss on available-for-sale
securities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; and marketable investments in
      licensees</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">133</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">3</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Change in foreign currency translation
      adjustments</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(3</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">Comprehensive loss</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (16,510</font></td>
            <td nowrap width="1%" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (16,808</font></td>
            <td nowrap width="1%" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="8" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;
</font></td>
          </tr></table>
    </div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">8 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>The components of accumulated other
comprehensive loss were as follows: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="95%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="84%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31, 2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="9%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">December 31, 2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="84%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="16%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="84%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Unrealized loss on available-for-sale
      securities and</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="7%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="84%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      marketable investments in licensees, net</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(101</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="7%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(234</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="84%"><font size="2" style="FONT-FAMILY: serif">Foreign currency translation adjustments</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(175</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(172</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="84%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Accumulated other comprehensive
      loss</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (276</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="7%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (406</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="8" nowrap width="84%" bgcolor="white"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;
</font></td>
          </tr></table>
    </div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Recently Issued Accounting Guidance
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In January 2010, the Financial Accounting Standards Board (FASB) issued
authoritative guidance to amend the disclosure requirements related to recurring
and nonrecurring fair value measurements. The guidance requires new disclosures
on the transfers of assets and liabilities between Level 1 and Level 2 of the
fair value measurement hierarchy, including the reasons and timing of the
transfers. Additionally, the guidance requires a roll forward of activities
related to the purchases, sales, issuances and settlements of assets and
liabilities measured using Level 3 fair value measurements. We adopted this
guidance as of January 1, 2010 and have reflected the increased level of
disclosures in our notes to condensed consolidated financial statements. See
Note 2 on Fair Value Measurements. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In January 2010, the FASB issued authoritative guidance to amend the
accounting and reporting requirements for decreases in ownership of a
subsidiary. This guidance requires that a decrease in the ownership interest of
a subsidiary that does not result in a change of control be treated as an equity
transaction. The guidance also expands the disclosure requirements about the
deconsolidation of a subsidiary. We adopted this guidance on January 1, 2010 and
it did not have a material impact on our consolidated financial position,
results of operations or cash flows, as no applicable deconsolidation of a
subsidiary or derecognition of assets occurred subsequent to the effective date
of such guidance.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In February 2010, the FASB issued authoritative guidance to define a
Securities and Exchange Commission (SEC) filer within the FASB Accounting
Standards Codification and eliminate the requirement for a SEC filer to disclose
the date through which subsequent events have been evaluated in order to remove
potential conflicts with current SEC guidance. We adopted the FASB guidance on
the date of issuance, February 24, 2010. As the new guidance only pertained to
disclosures, it had no impact on our consolidated financial position, results of
operations or cash flows upon adoption. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2. FAIR VALUE MEASUREMENTS</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We categorize assets and liabilities recorded at fair value on our
condensed consolidated balance sheet based upon the level of judgment associated
with inputs used to measure their fair value. The categories are as
follows:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr valign="bottom">
            <td align="left" nowrap valign="top" width="1%">&#160;&#160;&#160;&#160;&#160;</td>
            <td align="left" nowrap valign="top" width="1%"><font size="2" style="FONT-FAMILY: serif">Level 1 </font></td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">&#160;&#8211;&#160;
      </font></td>
            <td align="left" valign="top" width="97%"><font size="2" style="FONT-FAMILY: serif">Inputs are unadjusted, quoted prices in active markets for
      identical assets or liabilities at the measurement date. An active market
      for the asset or liability is a market in which transactions for the asset
      or liability occur with sufficient frequency and volume to provide pricing
      information on an ongoing basis.</font></td>
          </tr><tr>
            <td valign="top" width="1%">&#160;</td>
            <td colspan="3" valign="top" width="99%">&#160; </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="top" width="1%"><font size="2" style="FONT-FAMILY: serif">Level 2</font></td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">&#160;&#8211;&#160;
      </font></td>
            <td align="left" valign="top" width="97%"><font size="2" style="FONT-FAMILY: serif">Inputs (other than quoted market prices included in Level 1) are
      either directly or indirectly observable for the asset or liability
      through correlation with market data at the measurement date and for the
      duration of the instrument&#8217;s anticipated life.</font></td>
          </tr><tr>
            <td valign="top" width="1%">
            </td>
            <td colspan="3" valign="top" width="99%">&#160; </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="top" width="1%"><font size="2" style="FONT-FAMILY: serif">Level 3</font></td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">&#160;&#8211;&#160;
      </font></td>
            <td align="left" valign="top" width="97%"><font size="2" style="FONT-FAMILY: serif">Inputs reflect management&#8217;s best estimate of what market
      participants would use in pricing the asset or liability at the
      measurement date. Consideration is given to the risk inherent in the
      valuation technique and the risk inherent in the inputs to the
      model.</font></td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">9 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">A financial instrument&#8217;s categorization within the valuation hierarchy is
based upon the lowest level of input that is significant to the fair value
measurement. Following is a description of the valuation methodologies used for
instruments measured at fair value on our condensed consolidated balance sheet,
including the category for such instruments.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Cash Equivalents and Marketable Securities
Available-for-Sale </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Where quoted prices are available in an active market, securities are
categorized as Level 1. Examples of such Level 1 securities include highly
liquid U.S. Treasury securities, U.S. government-sponsored enterprise
securities, municipal securities and money market funds. If quoted market prices
are not available for the specific security, then fair values are estimated by
using pricing models, quoted prices of securities with similar characteristics
or discounted cash flows. Examples of such Level 2 securities include corporate
notes, asset-backed securities and commercial paper. </font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Marketable securities by security
type at March 31, 2010 were as follows: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Estimated</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Cost</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gains</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Losses</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Value</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="12" nowrap width="24%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Included in cash and cash
      equivalents:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Money market funds</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">31,336</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">31,336</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Municipal securities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,500</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,500</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">34,836</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">34,836</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Restricted cash:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Certificates of
    deposit</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">791</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">791</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Marketable securities:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; U.S. Treasury securities (due
      in less than 1 year)</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">32,862</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">11</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(7</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">32,866</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Government-sponsored enterprise securities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      (due in less than 1 year)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">4,457</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(8</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">4,449</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Government-sponsored
      enterprise securities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      (due in 1 to 2 years)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">4,000</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(4</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">3,996</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Corporate notes (due in less than 1 year)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">52,107</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">16</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(48</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">52,075</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Corporate notes (due in 1 to 2
      years)</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">36,512</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(62</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">36,451</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 129,938</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 28</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (129</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 129,837</font></td>
          </tr><tr>
            <td colspan="13" width="100%">&#160; </td>
          </tr><tr valign="bottom">
            <td align="left" colspan="13" width="100%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Marketable securities by
      security type at December 31, 2009 were as follows:</font></td>
          </tr><tr>
            <td colspan="13" width="100%">&#160; </td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Estimated</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Cost</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gains</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Losses</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Value</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="12" nowrap width="24%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Included in cash and cash
      equivalents:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Money market funds</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">33,395</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">33,395</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Restricted cash:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Certificate of
    deposit</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">791</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">791</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Marketable securities:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; U.S. Treasury securities (due
      in less than 1 year)</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">58,146</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">20</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(7</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">58,159</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Government-sponsored enterprise securities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      (due in 1 to 2 years)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">14,058</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(37</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">14,021</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Corporate notes (due in less
      than 1 year)</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">18,847</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">11</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(8</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">18,850</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Corporate notes (due in 1 to 2 years)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">40,861</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(213</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">40,648</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">131,912</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">31</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(265</font></td>
            <td nowrap width="1%" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">131,678</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="13" nowrap width="76%">&#160;&#160;
</td>
          </tr></table>
    </div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">10 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED) </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Marketable securities with unrealized losses at March 31, 2010 and
December 31, 2009 were as follows:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="12%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Less Than 12 Months</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">12 Months or Greater</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="13%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Total</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gross</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Estimated</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Estimated</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Estimated</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1">Unrealized</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair Value</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Losses</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1"><font style="FONT-FAMILY: serif">Fair Value</font></font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Losses</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1"><font style="FONT-FAMILY: serif">Fair Value</font></font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1"><font style="FONT-FAMILY: serif">Losses</font></font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="19" nowrap width="38%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">As of March 31, 2010:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">U.S. Treasury securities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (due in less than 1
      year)</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">17,291</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(7</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">17,291</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(7</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Government-sponsored
enterprise</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="FONT-FAMILY: serif">securities (due in less than 1
      year)</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">4,449</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(8</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">4,449</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(8</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">Government-sponsored enterprise</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; securities (due in 1 to 2
      years)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">3,996</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(4</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">3,996</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(4</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Corporate notes (due in less than 1
      year)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">31,963</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(48</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">31,963</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(48</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">Corporate notes (due in 1 to 2 years)</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">35,395</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(62</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">35,395</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(62</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">93,094</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(129</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">93,094</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(129</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="20" width="99%">&#160; </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">As of December 31,
2009:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">U.S. Treasury securities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (due in less than 1
      year)</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">18,859</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(7</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">18,859</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(7</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Government-sponsored
enterprise</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      securities (due in 1 to 2 years)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">14,021</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(37</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">14,021</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">(37</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%"><font size="2" style="FONT-FAMILY: serif">Corporate notes (due in less than 1 year)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">7,524</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(8</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">7,524</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(8</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Corporate notes (due in 1 to 2
      years)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 40,648</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (213</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; &#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; &#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 40,648</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; (213</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">81,052</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(265</font></td>
            <td nowrap width="1%" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">81,052</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(265</font></td>
            <td nowrap width="1%" style="PADDING-BOTTOM: 2pt; TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="20" nowrap width="61%">&#160;
</td>
          </tr></table>
    </div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The gross unrealized losses related to U.S. Treasury securities,
government-sponsored enterprise securities and corporate notes as of March 31,
2010 and December 31, 2009, were due to changes in interest rates. We determined
the gross unrealized losses on our marketable securities as of March 31, 2010
and December 31, 2009 were temporary in nature. We review our investments
quarterly to identify and evaluate whether any investments have indication of
possible impairment. Factors considered in determining whether a loss is
temporary include the length of time and extent to which the fair value has been
less than cost basis, the financial condition and near-term prospects of the
investee, and whether we intend to sell the security or whether it is more
likely than not that we would be required to sell the security. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Marketable and Non-Marketable Investments in
Licensees </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Where quoted prices are available in an active market, securities are
categorized as Level 1. Level 1 securities include publicly traded equities.
Significant investments in licensees accounted for using the equity method of
accounting or equity securities in non-marketable companies are not measured at
fair value and are not assigned a category level. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As of March 31, 2010 and December 31, 2009, the carrying values of our
investments in non-marketable nonpublic companies were $932,000 and $1,328,000,
respectively. We recognized no charges related to other-than-temporary declines
in fair values of investments in licensees for the three months ended March 31,
2010 and 2009. See Note 3 on Joint Venture and Related Party Transactions for
further discussion of investments in licensees. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">11 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Derivatives </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Warrants to purchase common stock and non-employee options are normally
traded less actively, have trade activity that is one way, and/or traded in
less-developed markets and are therefore valued based upon models with
significant unobservable market parameters, resulting in Level 3 categorization.
</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The fair value of derivatives has been calculated at each reporting date
using the Black Scholes option-pricing model with the following assumptions:
</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="95%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31, 2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">December 31, 2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Dividend yield</font></td>
            <td nowrap width="7%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">None</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="7%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">None</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Expected volatility range</font></td>
            <td nowrap width="7%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.307 to 0.627</font></td>
            <td nowrap width="1%">&#160;</td>
            <td nowrap width="7%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.607 to 0.632</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Risk-free interest rate range</font></td>
            <td nowrap width="7%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.15% to 2.55%</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="7%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0.06% to 2.69%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Expected term range</font></td>
            <td nowrap width="7%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">1 mo to 5 yrs</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="7%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">4 mos to 5
yrs</font></td>
          </tr></table>
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Dividend yield is based on historical cash dividend payments, which have
been none to date. The expected volatility range is based on historical
volatilities of our stock since traded options on Geron stock do not correspond
to derivatives&#8217; terms and trading volume of Geron options is limited. The
risk-free interest rate range is based on the U.S. Zero Coupon Treasury Strip
Yields for the expected term in effect on the reporting date. The expected term
of derivatives is equal to the remaining contractual term of the
instrument.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As of March 31, 2010 and December 31, 2009, the following warrants and
non-employee options to purchase common stock were considered derivatives and
classified as current liabilities: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="15%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="15%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="14%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="4" nowrap width="23%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">At March 31, 2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="4" nowrap width="22%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">At December 31, 2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="15%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="15%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="14%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Number</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Number</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="10%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Issuance</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Exercise</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Exercisable</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="14%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Expiration</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">of</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Value</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">of</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="10%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Value</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Date</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Price</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Date</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="14%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Date</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Shares</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td colspan="2" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Shares</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="10%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="15%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">April 2005</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">7.95</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="15%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">April 2005</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="14%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">April 2010</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="11%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">351,852</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="9%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="11%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">351,852</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="9%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">58</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="15%"><font size="2" style="FONT-FAMILY: serif">March
      2005</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 6.39</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="15%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">January 2007</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="14%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">March 2015</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">284,600</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="9%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">839</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">284,600</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="9%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">839</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="15%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="15%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="14%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="11%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">636,452</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="9%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">839</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="11%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">636,452</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="9%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">897</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="18" nowrap width="15%" bgcolor="white">&#160;&#160;
  </td>
          </tr></table>
    </div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">No reclassifications from current liabilities to stockholders&#8217; equity
were made for derivatives during the three months ended March 31, 2010.
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Fair Value on a Recurring Basis
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The following table presents information about our financial assets and
liabilities that are measured at fair value on a recurring basis as of March 31,
2010, and indicates the fair value category assigned. </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="23%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair Value Measurements at Reporting
      Date Using</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Significant</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Quoted Prices in</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Other</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Significant</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Active Markets for</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Observable</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Unobservable</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Identical Assets</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inputs</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inputs</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 1</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 2</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 3</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Total</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Assets</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">Money market funds (1)</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">31,336</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">31,336</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Municipal securities (1)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">3,500</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">3,500</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">U.S. Treasury securities (2)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">32,866</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">32,866</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Government-sponsored enterprise
      securities (2)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">8,445</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">8,445</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">Corporate notes (2)</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">88,526</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">88,526</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Total</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 76,147</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 88,526</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; &#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; 164,673</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="12" nowrap width="77%" bgcolor="white"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;
</font></td>
          </tr></table>
    </div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">12 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="23%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair Value Measurements at Reporting
      Date Using</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Significant</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Quoted Prices in</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Other</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Significant</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Active Markets for</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Observable</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Unobservable</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Identical Assets</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inputs</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inputs</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 1</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 2</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 3</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Total</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#c0c0c0"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Liabilities</font></font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="4%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="4%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="4%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">Derivatives (3)</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">839</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">839</font></td>
          </tr><tr valign="bottom" style="HEIGHT: 1px;">
            <td align="left" colspan="12" nowrap width="77%"><font style="FONT-FAMILY: serif">____________________
</font></td>
          </tr></table>
    </div>&#160;<br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(1)</font></td>
            <td nowrap valign="top">
            </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Included in cash and cash equivalents on our condensed consolidated
      balance sheets.</font></td>
          </tr><tr>
            <td colspan="3" valign="top" width="100%">&#160; </td>
          </tr><tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(2)</font></td>
            <td nowrap valign="top">
            </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Included in current and noncurrent marketable securities on our
      condensed consolidated balance sheets.</font></td>
          </tr><tr>
            <td colspan="3" valign="top" width="100%">&#160; </td>
          </tr><tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(3)</font></td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Included in fair value of derivatives on our condensed consolidated
      balance sheets.</font></td>
          </tr></table>
    </div>
    <div align="left">&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Changes in Level 3 Recurring Fair Value
Measurements</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The table below includes a rollforward of the balance sheet amounts for
the three months ended March 31, 2010 (including the change in fair value), for
financial instruments in the Level 3 category. When a determination is made to
classify a financial instrument within Level 3, the determination is based upon
the significance of the unobservable parameters to the overall fair value
measurement. However, Level 3 financial instruments typically include, in
addition to the unobservable components, observable components (that is,
components that are actively quoted and can be validated to external sources).
Accordingly, the gains and losses in the table below include changes in fair
value due in part to observable factors that are part of the methodology.
</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="19" nowrap width="38%" style="TEXT-ALIGN: center">
              <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair Value Measurements Using
      Significant Unobservable Inputs (Level 3)</font></font></div>
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="19" nowrap width="1%" style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended March 31,
      2010</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Change in</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Unrealized Gains</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Total</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Related to</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Unrealized</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Purchases,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Financial</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Gains Included</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Sales,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Transfers</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="4%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Instruments</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair Value at</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">in</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Issuances,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">In and/or</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Fair Value at</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Held at</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">December 31,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td colspan="3" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Earnings, net</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;</td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Settlements,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Out of</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31, 2010</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="61%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(1)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">net</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Level 3</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(1)</font></font> </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="61%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Derivative liabilities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      897</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      (58</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      &#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      &#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      839</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      (58</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr></table>
    </div>____________________<br>
    <div align="left">
    </div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(1)</font></td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Reported as unrealized gain on derivatives in our condensed
      consolidated statements of operations.</font></td>
          </tr></table>
    </div>
    <div align="left">&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">3. JOINT VENTURE AND RELATED PARTY
TRANSACTIONS </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Start Licensing and ViaGen, Inc.
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In April 2005, Geron and Exeter Life Sciences, Inc. (Exeter) established
Start Licensing, Inc. (Start), a joint venture to manage and license a broad
portfolio of intellectual property rights related to animal reproductive
technologies. We and Exeter owned 49.9% and 50.1% of Start, respectively. In
connection with the establishment of Start, we granted a worldwide, exclusive,
non-transferable license to our patent rights to nuclear transfer technology for
use in animal cloning, with the right to sublicense such patent rights. Since
there was no net book value associated with the patent rights at the execution
of the joint venture, no initial value was recognized for our investment in
Start. We suspended the equity method of accounting since our proportionate
share of net losses in Start exceeded our original carrying value of the
investment and we had no commitments to provide financial support or obligations
to perform services or other activities for Start. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">13 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In August 2008, Geron and Exeter entered into Contribution Agreements
whereby we and Exeter exchanged our equity interests in Start for equity
interests in ViaGen, Inc. (ViaGen). As a result of the exchange, Start became a
wholly-owned subsidiary of ViaGen. Ownership of ViaGen immediately following the
transaction was as follows: Exeter &#8211; 69%; Geron &#8211; 27%; and Smithfield Foods &#8211;
4%. Since no value had been recorded for our investment in Start, the same zero
carrying value was applied to our investment in ViaGen. Geron&#8217;s share of equity
method losses from Start that were not recognized during the period the equity
method was suspended has been carried over to the investment in ViaGen.
</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="FONT-FAMILY: serif">
</font><font size="2" style="FONT-FAMILY: serif">In September 2009, Geron made a
net equity investment in ViaGen of $2,010,000 and simultaneously Exeter
converted its outstanding debt with ViaGen into equity. The new equity purchase
did not fund prior ViaGen losses and represented additional financial support to
ViaGen. Ownership of ViaGen upon consummation of the transactions and at March
31, 2010 was as follows: Exeter &#8211; 70%; Geron &#8211; 28%; and Smithfield Foods &#8211; 2%.
We have no commitments to provide financial support or obligations to perform
services or other activities for ViaGen. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In applying the equity method of accounting to our investment in ViaGen,
we increase (decrease) the carrying value of our investment by our proportionate
share of ViaGen&#8217;s earnings (losses). If equity method losses exceed the carrying
value of the investment, losses will be applied against any advances to ViaGen,
including any commitments to provide financial support until those amounts are
reduced to zero. The equity method of accounting shall then be suspended until
income is subsequently reported. If income is reported, Geron&#8217;s proportionate
share of income shall first be applied to recognize the equity method losses
accumulated during the time the equity method was suspended.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">For the three months ended March 31, 2010 and 2009, we recognized
$396,000 and $656,000, respectively, for our proportionate share of ViaGen&#8217;s
operating losses. Our share of losses is recorded in the condensed consolidated
statements of operations under losses recognized under equity method investment.
The adjusted basis of our investment in ViaGen at March 31, 2010 and December
31, 2009 was $932,000 and $1,328,000, respectively, which is reflected under
investments in licensees on our condensed consolidated balance sheets.
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">TA Therapeutics, Ltd. </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In March 2005, we and the Biotechnology Research Corporation (BRC), a
subsidiary of Hong Kong University of Science and Technology, established a
joint venture company in Hong Kong called TA Therapeutics, Ltd. (TAT). TAT
conducts research and was established to commercially develop products that
utilize telomerase activator drugs to restore the regenerative and functional
capacity of cells in various organ systems that have been impacted by
senescence, injury or chronic disease. On June 15, 2007, we and BRC entered into
an agreement to restructure the TAT joint venture. Under the amended agreements,
we direct the preclinical and drug development activities, own a 75% voting
interest and exercise control over the company. Upon any winding up of TAT, all
intellectual property of TAT is assigned to us and BRC is entitled to royalties
on sales of future products developed from TAT&#8217;s efforts up to a fixed amount
based on BRC&#8217;s cash contributions. Upon a winding up of TAT, if the assets
available for distribution, other than the intellectual property, are
insufficient to repay the whole of the paid-up capital, such assets shall be
distributed so that the losses shall be borne by the shareholders in proportion
to the cash contributed by both parties. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As a result of our obtaining control over TAT, we have included the
results of TAT in our condensed consolidated financial statements beginning June
16, 2007. Based on consideration of the relevant rights described above, we have
determined that BRC&#8217;s 25% equity interest in TAT is not substantive. The amended
arrangement represented, in substance, a research and development arrangement
between us and BRC. Therefore, this arrangement was accounted for as a research
and development arrangement. As of December 31, 2009, all of BRC&#8217;s contributions
had been fully expended on research and development activities.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">14 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">For the three months ended March 31, 2010 and 2009, we incurred related
party research and development costs of $327,000 and $429,000, respectively. As
the source of funds used to perform this research activity on behalf of TAT was
derived from our cash contributions to TAT, no related party revenue has been
recognized for research and development services rendered for TAT for the three
months ended March 31, 2010 and 2009.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">4. STOCKHOLDERS&#8217; EQUITY </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Vendor Stock Issuances </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In January 2010, we issued 133,357 shares of our common stock to MPI
Research, Inc. (MPI) in a private placement as consideration under an amendment
to a master services agreement under which MPI has provided and will continue to
provide certain preclinical services in support of our clinical programs. The
fair value of the common stock of $829,000 was recorded as a prepaid asset and
is being amortized to research and development expense on a pro-rata basis as
services are performed. As of March 31, 2010, $290,000 remained as a prepaid
asset which is expected to be expensed over the next six months. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In January 2010, we issued 94,741 shares of our common stock to Exponent,
Inc. (Exponent), the lessor of the premises at 149 Commonwealth Drive, as a
first installment payment of rent due under the extended lease agreement for the
period from May 1, 2010 through July 31, 2012. The fair value of the common
stock of $589,000 was recorded as a prepaid asset and will be amortized to rent
expense on a pro-rata basis over the lease term.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In January 2010, we issued 287,401 shares of our common stock to
Samchully Pharm Co. Ltd. (Samchully) in a private placement as consideration
related to an addendum agreement to a manufacturing agreement pursuant to which
Samchully is performing certain services and manufacturing certain raw materials
and products for us intended for use in human clinical trials. The fair value of
the common stock of $1,704,000 was recorded as a prepaid asset and is being
amortized to research and development expense on a pro-rata basis upon the
performance of services and the proper receipt of materials. As of March 31,
2010, $1,704,000 remained as a prepaid asset which is expected to be expensed
over the next six months. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Warrant Exchange and Direct Equity Issuance
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">On January 14, 2010, we exchanged outstanding warrants to purchase
5,559,426 shares of common stock held by certain institutional investors for
2,700,000 shares of common stock. In connection with the warrant exchange, we
sold an additional 1,481,481 shares of common stock to the investors at a
premium to the market price and issued warrants to the investors to purchase an
additional 740,741 shares of common stock for gross proceeds of $10,000,000. The
warrants are immediately exercisable from time to time at a price of $6.75 per
share of common stock, and expire on October 31, 2010. A number of shares of
common stock equal to those issued in exchange for the outstanding warrants
cannot be sold during the 12 month period from the date of issuance unless the
sales are at prices in excess of $9.11 per share. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">5. COLLABORATIVE AGREEMENT
</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>In June 2009, we entered into a
worldwide exclusive license and alliance agreement with GE </font><font size="2" style="FONT-FAMILY: serif">Healthcare UK Limited (GEHC) to develop and
commercialize cellular assay products derived from human embryonic stem cells
(hESCs) for use in drug discovery, development and toxicity screening. Under the
terms of the agreement, GEHC has been granted an exclusive license under Geron&#8217;s
intellectual property portfolio covering the growth and differentiation of
hESCs, as well as a sublicense under Geron&#8217;s rights to the hESC patents held by
the Wisconsin Alumni Research Foundation. We have established a multi-year
alliance program with GEHC under which scientists from both companies will work
to develop hESC-based products for drug discovery. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">15</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In connection with the agreement, we received upfront non-refundable
license payments under the exclusive license and sublicense and can receive
milestone payments upon achievement of certain commercial development and
product sales events and royalties on future product sales. Under the alliance
program, GEHC is responsible for all costs incurred by GEHC and all costs
incurred by Geron for activities undertaken at Geron, including the funding of
Geron scientists working on the alliance program. An Alliance Steering
Committee, with representatives from each company, coordinates and manages the
alliance program. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">License payments under the GEHC agreement were recorded as deferred
revenue upon receipt and are being recognized ratably as license fee revenue
over the alliance program period as a result of our continuing involvement in
the collaboration. Funding received for Geron&#8217;s efforts under the alliance
program is being recognized as revenue from collaborative agreements as costs
are incurred, which approximates our level of effort over the period of the
alliance program. Since the milestone payments are subject to substantive
contingencies, any such payments will be recognized upon completion of the
specified milestones. Royalties received under the agreement will generally be
recognized as revenue upon receipt of the related royalty payment. For the three
months ended March 31, 2010, we recognized $225,000 as revenue from
collaborative agreements and $175,000 in license fee revenue in connection with
this agreement. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">6. SEGMENT INFORMATION </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our executive management team represents our chief decision maker. To
date, we have viewed our operations as one segment, the discovery and
development of therapeutic and diagnostic products for oncology and human
embryonic stem cell therapies. As a result, the financial information disclosed
herein materially represents all of the financial information related to our
principal operating segment.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">7. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS DATA </font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Supplemental schedule of non-cash
operating and investing activities: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(In Thousands)</font></font></td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Unaudited)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Supplemental Operating
    Activities:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Cash in transit from option
      exercises</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">33</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Reclassification of derivative liabilities to equity</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">30</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Issuance of common stock for
      401(k) matching contributions</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">972</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">665</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Issuance of common stock and warrants to purchase common stock</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      for services rendered to date or to be received in future
periods</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">2,587</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">1,353</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Reclassification of deposits
      to other current assets</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">83</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">350</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Supplemental Investing
    Activities:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#c0c0c0">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Net unrealized gain on
      marketable securities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">133</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">3</font></td>
          </tr></table>
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">8. SUBSEQUENT EVENTS </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In April 2010, we issued to Girindus America, Inc. (Girindus) 293,225
shares of our common stock in a private placement as consideration for a project
order under a manufacturing agreement pursuant to which Girindus is
manufacturing certain materials for us intended for therapeutic use in humans.
The fair value of the common stock of $1,680,000 will be recorded as a prepaid
asset and amortized to research and development expense on a pro-rata basis upon
the performance of services and the proper receipt of materials, which is
expected to be over the next six months.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In April 2010, we issued to ReSearch Pharmaceutical Services, Inc. (RPS)
259,965 shares of our common stock in a private placement as consideration for a
project agreement under a master services agreement under which RPS is providing
certain services in support of our clinical programs. The fair value of the
common stock of $1,490,000 will be recorded as a prepaid asset and amortized to
research and development expense on a pro-rata basis as services are performed,
which is expected to be over the next seven months.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">16 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">GERON CORPORATION<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>MARCH 31,
2010<br>(UNAUDITED)</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In April 2010, we issued to Prime Synthesis, Inc. (Prime Synthesis)
24,536 shares of our common stock in a private placement as consideration for an
addendum agreement under a master supply agreement pursuant to which Prime
Synthesis is manufacturing certain materials for us intended for therapeutic use
in humans. The fair value of the common stock of $141,000 will be recorded as a
prepaid asset and amortized to research and development expense on a pro-rata
basis upon the performance of services and the proper receipt of materials,
which is expected to be over the next six months.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In April 2010, we issued to Exponent, the lessor of the premises at 149
Commonwealth Drive, 93,258 shares of our common stock in a private placement as
a final installment payment of rent due under the extended lease agreement for
the period from May 1, 2010 through July 31, 2012. The fair value of the common
stock of $540,000 will be recorded as a prepaid asset and amortized to rent
expense on a pro-rata basis over the lease term.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">17 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 2. MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">FORWARD-LOOKING STATEMENTS
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">This Form 10-Q contains forward-looking statements that involve risks and
uncertainties. We use words such as &#8220;anticipate&#8221;, &#8220;believe&#8221;, &#8220;plan&#8221;, &#8220;expect&#8221;,
&#8220;future&#8221;, &#8220;intend&#8221; and similar expressions to identify forward-looking
statements. These statements are within the meaning of the &#8220;safe harbor&#8221;
provisions of the Private Securities Litigation Reform Act of 1995. These
statements appear throughout the Form 10-Q and are statements regarding our
intent, belief, or current expectations, primarily with respect to our
operations and related industry developments. You should not place undue
reliance on these forward-looking statements, which apply only as of the date of
this Form 10-Q. Our actual results could differ materially from those
anticipated in these forward-looking statements for many reasons, including the
risks faced by us and described in Part II, Item 1A, entitled &#8220;Risk Factors&#8221; and
in &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of
Operations&#8221; in Part I, Item 2 of this Form 10-Q. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">OVERVIEW </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The following discussion should be read in conjunction with the unaudited
condensed consolidated financial statements and notes thereto included in Part
I, Item 1 of this Form 10-Q and with Management&#8217;s Discussion and Analysis of
Financial Condition and Results of Operations contained in the Company&#8217;s Annual
Report on Form 10-K for the fiscal year ended December 31, 2009, as filed with
the Securities and Exchange Commission on February 26, 2010. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Geron is developing first-in-class biopharmaceuticals for the treatment
of cancer and chronic degenerative diseases, including spinal cord injury, heart
failure and diabetes. We are advancing an anti-cancer drug and a cancer vaccine
that target the enzyme telomerase through multiple clinical trials in different
cancers. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our results of operations have fluctuated from period to period and may
continue to fluctuate in the future, as well as the progress of our research and
development efforts and variations in the level of expenses related to
developmental efforts during any given period. Results of operations for any
period may be unrelated to results of operations for any other period. In
addition, historical results should not be viewed as indicative of future
operating results. We are subject to risks common to companies in our industry
and at our stage of development, including risks inherent in our research and
development efforts, reliance upon our collaborative partners, enforcement of
our patent and proprietary rights, need for future capital, potential
competition and uncertainty of clinical trial results or regulatory approvals or
clearances. In order for a product to be commercialized based on our research,
we and our collaborators must conduct preclinical tests and clinical trials,
demonstrate the efficacy and safety of our product candidates, obtain regulatory
approvals or clearances and enter into manufacturing, distribution and marketing
arrangements, as well as obtain market acceptance. We do not expect to receive
revenues or royalties based on therapeutic products for a period of years, if at
all. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CRITICAL ACCOUNTING POLICIES AND ESTIMATES
</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We believe that there have been no significant changes in our critical
accounting policies and estimates during the three months ended March 31, 2010
as compared to the critical accounting policies and estimates disclosed in our
Annual Report on Form 10-K for the year ended December 31, 2009, as filed with
the Securities and Exchange Commission on February 26, 2010. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our condensed consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of these financial statements requires management to make
estimates and assumptions that affect the reported assets, liabilities, revenues
and expenses. Note 1 of Notes to Condensed Consolidated Financial Statements
describes the significant accounting policies used in the preparation of the
condensed consolidated financial statements. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">18 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Estimates and assumptions about future events and their effects cannot be
determined with certainty. We base our estimates on historical experience and on
various other assumptions believed to be applicable and reasonable under the
circumstances. These estimates may change as new events occur, as additional
information is obtained and as our operating environment changes. These changes
have historically been minor and have been included in the condensed
consolidated financial statements as soon as they became known. Based on a
critical assessment of our accounting policies and the underlying judgments and
uncertainties affecting the application of those policies, management believes
that our condensed consolidated financial statements are fairly stated in
accordance with accounting principles generally accepted in the United States,
and present a meaningful presentation of our financial condition and results of
operations. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RESULTS OF OPERATIONS </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Revenues </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We recognized revenues of $225,000 from collaborative agreements for the
three months ended March 31, 2010, compared to none for the comparable 2009
period. Revenues in 2010 reflect revenue recognized under our collaboration with
GE Healthcare UK Limited. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We have entered into license and option agreements with companies
involved in oncology, diagnostics, research tools, agriculture and biologics
production. In each of these agreements, we have granted certain rights to our
technologies. In connection with the agreements, we are entitled to receive
license fees, option fees, milestone payments and royalties on future sales, or
any combination thereof. We recognized license fee revenues of $605,000 for the
three months ended March 31, 2010, compared to $380,000 for the comparable 2009
period related to our various agreements. The increase in license fees for the
2010 first quarter compared to the 2009 first quarter primarily reflected
revenue recognized from upfront license fee payments under our worldwide
exclusive license agreement with GE Healthcare UK Limited effective June 2009.
We expect to recognize revenues of $525,000 for the remainder of 2010, $350,000
in 2011 and no revenues thereafter related to our existing deferred revenue.
Current revenues may not be predictive of future revenues. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We received royalties of $88,000 for the three months ended March 31,
2010, compared to $64,000 for the comparable 2009 period on product sales of
telomerase detection and telomere measurement kits to the research-use-only
market, cell-based research products and agricultural products. License and
royalty revenues are dependent upon additional agreements being signed and
future product sales. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Research and Development
Expenses</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Research and development expenses were $13.5 million for the three months
ended March 31, 2010, compared to $13.8 million for the comparable 2009 period.
The decrease in research and development expenses for the 2010 first quarter
compared to the 2009 first quarter was primarily the net result of reduced
manufacturing costs of $670,000 due to the completion of patient enrollment in
our Phase II trial of GRNVAC1 and lower clinical trial costs of $437,000 due to
completion of patient enrollment in four of six trials of imetelstat, partially
offset by increased preclinical study costs of $291,000 for GRNOPC1 and higher
non-cash compensation expense of $421,000 associated with equity-based awards.
Overall, we expect research and development expenses to increase as we incur
expenses related to clinical trials for imetelstat along with continued
development of our human embryonic stem cell (hESC) programs. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our research and development activities have arisen from our two major
technology platforms, telomerase and hESCs. The oncology programs focus on
treating or diagnosing cancer by targeting or detecting the presence of
telomerase, either inhibiting activity of the telomerase enzyme, diagnosing
cancer by detecting the presence of telomerase, or using telomerase as a target
for therapeutic vaccines. Our core knowledge base in telomerase and telomere
biology supports all these approaches, and our scientists may contribute to any
or all of these programs in a given period. The following table gives the status
of our oncology clinical trials: </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">19 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="1%" style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="16%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="17%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="27%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="17%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-TOP: #000000 1pt solid">
            </td>
            <td nowrap width="17%" style="BORDER-TOP: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Patient</font></font></td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid">
            </td>
            <td nowrap width="16%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Product</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Development</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Enrollment</font></font></td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">&#160;&#160; </td>
            <td nowrap width="16%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Product</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Description</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td nowrap width="27%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Application</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Stage</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Status</font></font></td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">&#160;&#160; </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Imetelstat</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Chronic Lymphoproliferative</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase I Trial</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Completed</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(GRN163L)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Inhibitor</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Diseases</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(single agent)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Imetelstat</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Solid Tumors</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase I Trial</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Open</font></td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(GRN163L)</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Inhibitor</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(single
    agent)</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Imetelstat</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Multiple Myeloma*</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase I Trial</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Completed</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(GRN163L)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Inhibitor</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(single agent)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Imetelstat</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Non-Small Cell Lung</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase I Trial</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Completed</font></td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(GRN163L)</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Inhibitor</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Cancer*</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(combination)</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Imetelstat</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Breast Cancer*</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase I/II Trial</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Open</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(GRN163L)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Inhibitor</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(combination)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Imetelstat</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Multiple Myeloma</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase I Trial</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Completed</font></td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(GRN163L)</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Inhibitor</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(combination)</font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="16%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">GRNVAC1</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Telomerase</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Acute Myelogenous</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Phase II Trial</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Completed</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="16%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Cancer
      Vaccine</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="27%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Leukemia (AML)</font></td>
            <td nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="17%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%" style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" colspan="9" width="98%" style="PADDING-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">*&#160;&#160;&#160;&#160; Initiation of Phase II clinical trials in
      non-small cell lung cancer, multiple myeloma, breast cancer and essential
      thrombocythemia is planned for 2010.</font></td>
            <td align="left" nowrap width="1%" style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr></table>
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Interim data from the Phase I single agent trial in patients with
relapsed and refractory multiple myeloma has shown that imetelstat inhibits
telomerase both in the bulk myeloma fraction as well as the stem-cell containing
fraction in patients&#8217; bone marrow. Interim data from the trial in patients with
refractory, advanced solid cancers has shown that with a modified dosing
schedule, the exposures to imetelstat exceeded the levels associated with
inhibiting tumor growth from several models of human cancers. From the above
trials, we have obtained data to assess the safety, tolerability,
pharmacokinetics and pharmacodynamics of imetelstat. With this information, we
have established the single agent Phase II dose and dosing schedule and are
planning to advance imetelstat to Phase II clinical trials in four different
malignancies in 2010. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Taking the results from the Duke University clinical studies in prostate
cancer, hematologic malignancies and renal cell carcinoma, we optimized the
vaccine manufacturing process and transferred it to a contract manufacturer. We
are conducting a Phase II clinical trial of our telomerase vaccine using the
prime/boost vaccination protocol in patients with acute myelogenous leukemia in
complete clinical remission. Recent data from the trial showed that GRNVAC1 was
safe and generally well tolerated over multiple vaccinations. Continued
follow-up of patients for an additional nine months is required to estimate the
impact of vaccination on disease-free survival. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our hESC therapy programs focus on treating injuries and degenerative
diseases with cell therapies based on cells derived from hESCs. Core knowledge
of hESC biology, as well as a significant continuing effort in deriving,
growing, maintaining, and differentiating hESCs, underlies all aspects of this
group of programs. Many of our researchers are allocated to more than one hESC
program, and the percentage allocations of time change as the resource needs of
individual programs vary. In our hESC therapy programs, we have concentrated our
resources on several specific cell types, including: </font></div>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">GRNOPC1, hESC-derived
  oligodendrocyte progenitor cells, for the treatment of acute spinal cord
  injury;</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">GRNCM1, hESC-derived
  cardiomyocytes, for toxicology drug testing and the treatment of myocardial
  disease;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">GRNIC1, hESC-derived pancreatic
  islet &#223; cells for the treatment of diabetes;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">GRNCHND1, hESC-derived
  chondrocytes for the treatment of osteoarthritis;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">hESC-derived hepatocytes for ADME
  drug testing;</font> </li>
    </ul>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">20 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">hESC-derived dendritic cells for
  cancer immunotherapy and to prevent immune rejection of the other cell types
  used in therapeutic applications; and</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">hESC-derived osteoblasts for the
  treatment of osteoporosis.</font> </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We have developed proprietary methods to grow, maintain, and scale the
culture of undifferentiated hESCs that use feeder cell-free and serum-free media
with chemically defined components. We have also developed scalable processes to
differentiate these cells into therapeutically relevant cells. Currently, the
human clinical trial of GRNOPC1, our hESC-derived therapy targeted for the
treatment of acute spinal cord injury, has been placed on clinical hold by the
United States Food and Drug Administration (FDA). We are in discussions with the
agency to answer its questions and proceed with the clinical trial.
</font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Research and development expenses
allocated by program are as follows (in thousands): </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="80%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="89%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="5" nowrap width="9%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="9%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">March 31,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="89%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="9%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Unaudited)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Oncology</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">6,163</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">7,306</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%"><font size="2" style="FONT-FAMILY: serif">hESC Therapies</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">7,382</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">6,465</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #c0c0c0 2pt solid"><font size="2" style="FONT-FAMILY: serif">Total</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #c0c0c0 2pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 13,545</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 13,771</font></td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" colspan="7" nowrap width="99%">&#160;</td>
          </tr></table>
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">At this time, we cannot provide reliable estimates of how much time or
investment will be necessary to commercialize products from the programs
currently in progress. Drug development in the United States is a process that
includes multiple steps defined by the FDA under applicable statutes,
regulations and guidance documents. After the preclinical research process of
identifying, selecting and testing in animals a potential pharmaceutical
compound, the clinical development process begins with the filing of an
Investigational New Drug (IND) application. Clinical development typically
involves three phases of trials: Phase I, II and III. The most significant costs
associated with clinical development are incurred in Phase III trials, which
tend to be the longest and largest studies conducted during the drug development
process. After the completion of a successful preclinical and clinical
development program, a New Drug Application (NDA) or Biologics License
Application (BLA) must be filed with the FDA, which includes, among other
things, very large amounts of preclinical and clinical data and results and
manufacturing-related information necessary to support requested approval of the
product. The NDA/BLA must be reviewed and approved by the FDA. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">According to industry statistics, it generally takes 10 to 15 years to
research, develop and bring to market a new prescription medicine in the United
States. In light of the steps and complexities involved, the successful
development of our potential products is highly uncertain. Actual timelines and
costs to develop and commercialize a product are subject to enormous variability
and are very difficult to predict. In addition, various statutes and regulations
also govern or influence the manufacturing, safety reporting, labeling, storage,
record keeping and marketing of each product. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The lengthy process of seeking these regulatory reviews and approvals,
and the subsequent compliance with applicable statutes and regulations, require
the expenditure of substantial resources. Any failure by us to obtain, or any
delay in obtaining, regulatory approvals could materially adversely affect our
business. In responding to an NDA/BLA submission, the FDA may grant marketing
approval, may request additional information, may deny the application if it
determines that the application does not provide an adequate basis for approval,
and may also refuse to review an application that has been submitted if it
determines that the application does not provide an adequate basis for filing
and review. We cannot provide assurance that any approval required by the FDA
will be obtained on a timely basis, if at all. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">For a more complete discussion of the risks and uncertainties associated
with completing development of potential products, see the sub-section titled
&#8220;Delays in the commencement of clinical testing of our current and potential
product candidates could result in increased costs to us and delay our ability
to generate revenues&#8221; and &#8220;Obtaining regulatory approvals to market our product
candidates 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
commercialize our product candidates&#8221; in Part II, Item 1A entitled &#8220;Risk
Factors&#8221; and elsewhere in this quarterly report. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">21 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">General and Administrative
Expenses</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">General and administrative expenses were $3.9 million for the three
months ended March 31, 2010, compared to $3.4 million for the comparable 2009
period. The increase in general and administrative expenses for the 2010 first
quarter compared to the 2009 first quarter was primarily due to higher non-cash
compensation expense of $128,000 associated with equity-based awards, increased
legal costs associated with our patents of $102,000 and higher consulting costs
of $111,000. We currently anticipate general and administrative expenses to
remain consistent with current levels. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Unrealized Gain (Loss) on
Derivatives</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Unrealized gain (loss) on fair value of derivatives reflects a non-cash
adjustment for changes in fair value of warrants to purchase common stock and
options held by non-employees that are classified as current liabilities.
Derivatives classified as assets or liabilities are marked to fair value at each
financial reporting date with any resulting unrealized gain (loss) recorded in
the condensed consolidated statements of operations. The derivatives continue to
be reported as an asset or liability until such time as the instruments are
exercised or expire or are otherwise modified to remove the provisions which
require them to be recorded as assets or liabilities, at which time these
instruments are marked to fair value and reclassified from assets or liabilities
to stockholders&#8217; equity. We incurred unrealized gains on derivatives of $58,000
and $77,000 for the three months ended March 31, 2010 and 2009, respectively.
The unrealized gains on derivatives for 2010 and 2009 primarily reflected
reduced fair values of derivative liabilities resulting from shortening of their
contractual terms and changes in other inputs factored into the estimate of
their fair value such as the volatility of our common stock. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Interest and Other Income</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Interest income was $202,000 for the three months ended March 31, 2010,
compared to $525,000 for the comparable 2009 period. The decrease in interest
income for the 2010 first quarter compared to the 2009 first quarter was
primarily due to lower interest rates and lower cash and investment balances.
Interest earned in future periods will depend on the size of our securities
portfolio and prevailing interest rates. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Losses Recognized Under Equity Method
Investment</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We own 28% of ViaGen, Inc. (ViaGen), a licensee with in-house breeding
services and expertise in advanced reproductive technologies for animal cloning.
In accordance with the equity method of accounting, we recognized losses of
$396,000 and $656,000 for the three months ended March 31, 2010 and 2009,
respectively, for our proportionate share of ViaGen&#8217;s losses.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Interest and Other Expense</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Interest and other expense was $27,000 for the three months ended March
31, 2010, compared to $52,000 for the comparable 2009 period. The decrease in
interest and other expense for the 2010 first quarter compared to the 2009 first
quarter was primarily due to lower investment management charges. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Net Loss </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Net loss was $16.6 million for the three months ended March 31, 2010,
compared to $16.8 million for the comparable 2009 period. The decrease in net
loss for the 2010 first quarter compared to the 2009 first quarter was primarily
the net result of increased revenues under our license and collaboration with GE
Healthcare UK Limited, partially offset by decreased interest income due to
lower interest rates and lower cash and investment balances. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">22 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">LIQUIDITY AND CAPITAL
RESOURCES</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Cash, restricted cash, cash equivalents and marketable securities at
March 31, 2010 were $166.5 million, compared to $167.1 million at December 31,
2009. We have an investment policy to invest these funds in liquid, investment
grade securities, such as interest-bearing money market funds, U.S. government
and agency securities, corporate notes, commercial paper, asset-backed
securities and municipal securities. Our investment portfolio does not contain
securities with exposure to sub-prime mortgages, collateralized debt obligations
or auction rate securities and to date we have not recognized an
other-than-temporary impairment on our marketable securities or any significant
changes in aggregate fair value that would impact our cash resources or
liquidity. To date, we have not experienced lack of access to our invested cash
and cash equivalents; however, we cannot provide assurances that access to our
invested cash and cash equivalents will not be impacted by adverse conditions in
the financial markets. The decrease in cash, restricted cash, cash equivalents
and marketable securities in 2010 was the net result of use of cash for
operations, partially offset by the receipt of $10.0 million in gross proceeds
from the sale of shares of common stock and warrants to purchase additional
shares of common stock to institutional investors in January 2010. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We estimate that our existing capital resources, interest income and
equipment financing facility will be sufficient to fund our current level of
operations through at least December 2011. However, our future capital
requirements will be substantial. Changes in our research and development plans
or other changes affecting our operating expenses or cash balances may result in
the expenditure of available resources before such time. Factors that may
require us to use our available capital resources sooner than we anticipate
include: </font></div>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">continued clinical development of
  our product candidates, imetelstat, GRNVAC1 and GRNOPC1;</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">our ability to meaningfully reduce
  manufacturing costs of current product candidates;</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">future clinical trial
  results;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">progress of product and
  preclinical development of our other product candidates, such as GRNCM1,
  GRNIC1 and GRNCHND1;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">cost and timing of regulatory
  approvals; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">filing, maintenance, prosecution,
  defense and enforcement of patent claims and other intellectual property
  rights.</font> </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">If our capital resources are insufficient to meet future capital
requirements, we will need to raise additional capital to fund our operations.
We intend to seek additional funding through strategic collaborations, public or
private equity financings, equipment loans or other financing sources that may
be available. However, we may be unable to raise sufficient additional capital
when we need it, on favorable terms or at all. If we are unable to obtain
adequate funds on reasonable terms, we may be required to curtail operations
significantly or obtain funds by entering into financing, supply or
collaboration agreements on unattractive terms or we may be required to
relinquish rights to technology or product candidates or to grant licenses on
terms that are unfavorable to us. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Cash Flows from Operating Activities. </font></font><font size="2" style="FONT-FAMILY: serif">Net cash used in operations for the three
months ended March 31, 2010 and 2009 was $9.4 million and $9.3 million,
respectively. The increase in net cash used for operations in 2010 was primarily
the result of reduced interest income.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Cash Flows from Investing Activities. </font></font><font size="2" style="FONT-FAMILY: serif">Net cash provided by investing activities was
$672,000 for the three months ended March 31, 2010. Net cash used in investing
activities was $21.1 million for the three months ended March 31, 2009. The
decrease in net cash used in investing activities reflected decreased purchases
of marketable securities and increased maturities of marketable securities.
</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As of March 31, 2010 we had approximately $500,000 available for
borrowing under our equipment financing facility. We renewed the commitment for
this equipment financing facility in 2009 to further fund equipment purchases.
If we are unable to renew the commitment in the future, we will use our cash
resources for capital expenditures. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">23 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Cash Flows from Financing Activities.</font></font><font size="2" style="FONT-FAMILY: serif"> Net cash provided by financing activities was
$10.0 million and $46.7 million for the three months ended March 31, 2010 and
2009, respectively. In January 2010, we exchanged outstanding warrants held by
certain institutional investors for shares of our common stock. In connection
with the warrant exchange, we sold 1,481,481 shares of our common stock and
warrants to purchase an additional 740,741 shares of common stock to the
investors for gross proceeds of $10.0 million. In February 2009, we completed a
public offering of 7,250,000 shares of our common stock at a public offering
price of $6.60 per share, resulting in net proceeds of approximately $45.9
million after deducting underwriting discounts and commissions and offering
expenses. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Contractual Obligations</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As of March 31, 2010, our contractual obligations for the next five years
and thereafter were as follows: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="78%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="14" nowrap width="21%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Principal Payments Due by
      Period</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="78%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Remainder</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="3%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2011-</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="3%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2013-</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="3%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">After</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="78%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Contractual Obligations
    (1)</font></font></td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Total</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">in 2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td colspan="2" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2012</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td colspan="2" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2014</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;
    </td>
            <td colspan="2" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2014</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="78%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="14" nowrap width="21%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Amounts in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="78%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Equipment leases</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">39</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">12</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">25</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">2</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="78%"><font size="2" style="FONT-FAMILY: serif">Operating leases (2)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">&#8212;</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="78%" bgcolor="#c0c0c0"><font size="2" style="FONT-FAMILY: serif">Research funding (3)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">1,588</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">315</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">389</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">374</font></td>
            <td align="right" nowrap width="1%" bgcolor="#c0c0c0">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" bgcolor="#c0c0c0" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">510</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="78%"><font size="2" style="FONT-FAMILY: serif">Total contractual cash obligations</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 1,627</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">327</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 414</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 376</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$</font></td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 510</font></td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" colspan="16" nowrap width="100%">&#160;</td>
          </tr></table>
    </div>____________________<br>&#160;<br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(1)</font></td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">This table does not include any milestone payments under research
      collaborations or license agreements as the timing and likelihood of such
      payments are not known. In addition, this table does not include payments
      under our severance plan in the event of a change in control of the
      company or severance payments to key employees under involuntary
      termination.</font></td>
          </tr><tr>
            <td colspan="4" valign="top">&#160;</td>
          </tr><tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(2)</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="2" valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">In March 2008, we issued 742,158 shares of our common stock to the
      lessor of our premises at 200 and 230 Constitution Drive in payment of our
      monthly rental obligation from August 1, 2008 through July 31, 2012. In
      May 2007, we issued 210,569 shares of our common stock to the lessor of
      our premises at 149 Commonwealth Drive in payment of our monthly rental
      obligation from May 1, 2007 through April 30, 2010. In January 2010, we
      extended our lease at the premises at 149 Commonwealth Drive. We issued an
      aggregate of 187,999 shares of our common stock to the lessor of those
      premises in payment of our monthly rental obligation from May 1, 2010
      through July 31, 2012. The fair value of the common stock issuances has
      been recorded as a prepaid asset and will be amortized to rent expense on
      a straight-line basis over the lease periods.&#160; Future minimum
      payments under non-cancelable operating leases are zero through July 31,
      2012, as a result of the prepayments of rent with our common
    stock.</font></td>
          </tr><tr>
            <td colspan="4" valign="top">&#160;</td>
          </tr><tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(3)</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="2" valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Research funding is comprised of sponsored research and license
      commitments at various laboratories around the
world.</font></td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Off-Balance Sheet Arrangements
</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;None. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The following discussion about our market risk disclosures contains
forward-looking statements. Actual results could differ materially from those
projected in the forward-looking statements. We are exposed to market risk
related to changes in interest rates and foreign currency exchange rates. We do
not use derivative financial instruments for speculative or trading purposes.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">24 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Credit Risk</font></font><font size="2" style="FONT-FAMILY: serif">. We
place our cash, restricted cash, cash equivalents and marketable securities with
six financial institutions in the United States. Deposits with banks may exceed
the amount of insurance provided on such deposits. While we monitor the cash
balances in our operating accounts and adjust the cash balances as appropriate,
these cash balances could be impacted if the underlying financial institutions
fail or could be subject to other adverse conditions in the financial markets.
Financial instruments that potentially subject us to concentrations of credit
risk consist primarily of cash equivalents and marketable securities. Cash
equivalents and marketable securities currently consist of U.S. Treasury
securities, U.S. government-sponsored enterprise securities, municipal
securities,&#160;corporate notes and money market funds. Our investment policy,
approved by our Board of Directors, limits the amount we may invest in any one
type of investment issuer, thereby reducing credit risk concentrations. We limit
our credit and liquidity risks through our investment policy and through regular
reviews of our portfolio against our policy. To date, we have not experienced
any loss or lack of access to cash in our operating accounts or to our cash
equivalents and marketable securities in our investment portfolios.
</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Interest Rate Sensitivity</font></font><font size="2" style="FONT-FAMILY: serif">. The primary objective of our investment activities is to manage our
marketable securities portfolio to preserve principal and liquidity while
maximizing the return on the investment portfolio through the full investment of
available funds without significantly increasing risk. To achieve this
objective, we invest in widely diversified investments consisting of both fixed
rate and floating rate interest earning instruments, and both carry a degree of
interest rate risk. Fixed rate securities may have their fair value adversely
impacted due to a rise in interest rates, while floating rate securities may
produce less income than expected if interest rates fall. Due in part to these
factors, our future interest income may fall short of expectations due to
changes in market conditions and in interest rates or we may suffer losses in
principal if forced to sell securities which may have declined in fair value due
to changes in interest rates. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The fair value of our cash equivalents and marketable securities at March
31, 2010 was $164.7 million. These investments include $34.8 million of cash
equivalents which are due in less than 90 days, $89.4 million of short-term
investments which are due in less than one year and $40.5 million of long-term
investments which are due in one to two years. We primarily invest our
marketable securities portfolio in securities with at least an investment grade
rating to minimize interest rate and credit risk as well as to provide for an
immediate source of funds. Although changes in interest rates may affect the
fair value of the marketable securities portfolio and cause unrealized gains or
losses, such gains or losses would not be realized unless the investments are
sold. Due to the nature of our investments, which are primarily U.S. Treasury
securities, U.S. government-sponsored enterprise securities, municipal
securities, corporate notes and money market funds, we have concluded that there
is no material market risk exposure. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Foreign Currency Exchange Risk</font></font><font size="2" style="FONT-FAMILY: serif">. Because we translate foreign currencies into
U.S. dollars for reporting purposes, currency fluctuations can have an impact,
though generally immaterial, on our operating results. We believe that our
exposure to currency exchange fluctuation risk is insignificant primarily
because our wholly-owned international subsidiary, Geron Bio-Med Ltd., satisfies
its financial obligations almost exclusively in its local currency. As of March
31, 2010, there was an immaterial currency exchange impact from our intercompany
transactions. As of March 31, 2010, we did not engage in foreign currency
hedging activities. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 4. CONTROLS AND
PROCEDURES</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a) </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Evaluation of Disclosure Controls and
Procedures</font></font><font size="2" style="FONT-FAMILY: serif">. The Securities
and Exchange Commission defines the term &#8220;disclosure controls and procedures&#8221; to
mean a company&#8217;s controls and other procedures that are designed to ensure that
information required to be disclosed in the reports that it files or submits
under the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange Commission&#8217;s rules and forms. Our Chief Executive Officer and our Chief
Financial Officer have concluded, based on the evaluation of the effectiveness
of our disclosure controls and procedures by our management, with the
participation of our Chief Executive Officer and our Chief Financial Officer, as
of the end of the period covered by this report, that our disclosure controls
and procedures were effective for this purpose.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b) </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Changes in Internal Controls Over Financial
Reporting</font></font><font size="2" style="FONT-FAMILY: serif">. There was no
change in our internal control over financial reporting for the three months
ended March 31, 2010 that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">It should be noted that any system of controls, however well designed and
operated, can provide only reasonable assurance, and not absolute assurance,
that the objectives of the system are met. In addition, the design of any
control system is based in part upon certain assumptions about the likelihood of
future events. Because of these and other inherent limitations of control
systems, there can be no assurance that any design will succeed in achieving its
stated goals in all future circumstances. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">25 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART II. OTHER INFORMATION
</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 1. LEGAL PROCEEDINGS</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>None.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 1A. RISK FACTORS</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our business is subject to various risks, including those described
below. You should carefully consider these risk factors, together with all of
the other information included in this Form 10-Q. Any of these risks could
materially adversely affect our business, operating results and financial
condition. </font></div>
    <div>&#160;</div>
    <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO OUR BUSINESS </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Our business is at an early stage of development.
</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our business is at an early stage of development, in that we do not yet
have product candidates in late-stage clinical trials or on the market. We have
sponsored six Phase I or I/II trials of our lead anti-cancer drug, imetelstat,
in patients with chronic lymphoproliferative diseases, solid tumor malignancies,
non-small cell lung cancer, breast cancer and multiple myeloma. Four of those
trials have completed patient enrollment and the remaining two are expected to
complete enrollment in 2010. We currently plan to advance imetelstat to Phase II
trials in 2010 in four different malignancies. Patient enrollment for our
telomerase cancer vaccine, GRNVAC1, in patients with acute myelogenous leukemia
is now complete and we are awaiting the results from this Phase II trial. We
have no other product candidates in clinical testing. Currently, the clinical
trial of GRNOPC1, our human embryonic stem cell (hESC)-derived therapy targeted
for the treatment of acute spinal cord injury, has been placed on clinical hold
by the U.S. Food and Drug Administration (FDA). We are in discussions with the
FDA to answer its questions and seek the release of the clinical hold to permit
us to proceed with the clinical trial. Our ability to develop product candidates
that progress to and through clinical trials is subject to our ability to, among
other things: </font></div>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">succeed in our research and
  development efforts;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">select therapeutic compounds or
  cell therapies for development;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">obtain required regulatory
  approvals, including release by the FDA of the clinical hold for
  GRNOPC1;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">manufacture product candidates;
  and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">collaborate successfully with
  clinical trial sites, academic institutions, physician investigators, clinical
  research organizations and other third parties.</font> </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Potential lead drug compounds or other product candidates and
technologies require significant preclinical and clinical testing prior to
regulatory approval in the United States and other countries. Our product
candidates may prove to have undesirable and unintended side effects or other
characteristics adversely affecting their safety, efficacy or cost-effectiveness
that could prevent or limit their commercial use. In addition, our product
candidates may not prove to be more effective for treating disease or injury
than current therapies. Accordingly, we may have to delay or abandon efforts to
research, develop or obtain regulatory approvals to market our product
candidates. In addition, we will need to determine whether any of our potential
products can be manufactured in commercial quantities at an acceptable cost. Our
research and development efforts may not result in a product that can be or will
be approved by regulators or marketed successfully. Competitors may have
proprietary rights which prevent us from developing and marketing our products
or they may sell similar, superior or lower-cost products. Because of the
significant scientific, regulatory and commercial milestones that must be
reached for any of our development programs or product candidates to be
successful, any program or product candidate may be abandoned, even after we
have expended significant resources, such as our investments in telomerase
technology, hESCs, imetelstat, GRNVAC1 and GRNOPC1, which could adversely affect
our business and cause a sharp drop in our stock price.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">26 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The science and technology of telomere biology and telomerase and hESCs
are relatively new. There is no precedent for the successful commercialization
of therapeutic product candidates based on our technologies. These development
programs are therefore particularly risky. In addition, we, our licensees or our
collaborators must undertake significant research and development activities to
develop product candidates based on our technologies, which will require
additional funding and may take years to accomplish, if ever. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Restrictions on the use of hESCs, political commentary and the ethical
and social implications of research involving hESCs could prevent us from
developing or gaining acceptance for commercially viable products based upon
such stem cells and adversely affect the market price of our common stock.
</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Some of our most important programs involve the use of stem cells that
are derived from human embryos. The use of hESCs gives rise to ethical and
social issues regarding the appropriate use of these cells. Our research related
to hESCs may become the subject of adverse commentary or publicity, which could
significantly harm the market price for our common stock. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Some political and religious groups have voiced opposition to our
technology and practices. We use stem cells derived from human embryos that had
been created for </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">in vitro</font></font><font size="2" style="FONT-FAMILY: serif"> fertilization procedures but were no longer
desired or suitable for that use and were donated with appropriate informed
consent. Many research institutions, including some of our scientific
collaborators, have adopted policies regarding the ethical use of human
embryonic tissue. These policies may have the effect of limiting the scope of
research conducted using hESCs, thereby impairing our ability to conduct
research in this field. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Furthermore, on March 9, 2009, President Obama issued Executive Order
13505, entitled &#8220;Removing Barriers to Responsible Scientific Research Involving
Human Stem Cells&#8221; (the Executive Order). As a result, in July 2009 the Secretary
of Health and Human Services, through the Director of the National Institutes of
Health (NIH), issued new guidelines relating to human stem cell research. Under
the new guidelines, federal funding is allowed for research using hESCs derived
from embryos created by </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">in vitro</font></font><font size="2" style="FONT-FAMILY: serif">
fertilization for reproductive purposes, but are no longer needed for that
purpose. Strict ethics requirements must be followed to qualify new stem cell
lines, including extensive documentation around consent forms and written
policies and procedures. Certain states are considering enacting, or already
have enacted, legislation relating to stem cell research, including California,
whose voters approved Proposition 71 to provide state funds for stem cell
research in November 2004. In the United Kingdom and other countries, the use of
embryonic or fetal tissue in research (including the derivation of hESCs) is
regulated by the government, whether or not the research involves government
funding. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Government-imposed restrictions with respect to use of embryos or hESCs
in research and development could have a material adverse effect on us,
including: </font></div>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">harming our ability to establish
  critical partnerships and collaborations;</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">delaying or preventing progress in
  our research, product development or clinical testing;</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">preventing commercialization of
  therapies derived from hESCs; and</font> <br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">as a result of the potential
  adverse effects above, causing a decrease in the price of our common
  stock.</font> </li>
    </ul>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">27 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO OUR FINANCIAL POSITION AND
NEED FOR ADDITIONAL FINANCING </font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">We have a history of losses and anticipate future losses, and continued
losses could impair our ability to sustain operations.
</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We have incurred operating losses every year since our operations began
in 1990. As of March 31, 2010, our accumulated deficit was approximately $593.9
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 development efforts and clinical testing activities continue,
our operating losses may increase in size.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Substantially all of our revenues to date have been research support
payments under collaboration agreements and revenues from our licensing
arrangements. We may be unsuccessful in entering into any new corporate
collaboration or license agreement that results in revenues. We do not expect
that the revenues generated from these arrangements will be sufficient alone to
continue or expand our research or development activities and otherwise sustain
our operations.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">While we receive royalty revenue from licenses, we do not currently
expect to receive sufficient royalty revenues from these licenses to
independently sustain our operations. Our ability to continue or expand our
research and development activities and otherwise sustain our operations is
dependent on our ability, alone or with others, to, among other things,
manufacture and market therapeutic products.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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&#8217;
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. Even
if we do become profitable, we cannot assure you that we would be able to
sustain or increase profitability on a quarterly or annual basis.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">We will need additional capital to conduct our operations and develop our
product candidates, and our ability to obtain the necessary funding is
uncertain.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We will require substantial capital resources in order to conduct our
operations and develop our product candidates, and we cannot assure you that our
existing capital resources, interest income and equipment financing arrangement
will be sufficient to fund future planned operations. The timing and degree of
any future capital requirements will depend on many factors,
including:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">the accuracy of the assumptions
  underlying our estimates for our capital needs for the 2010 fiscal year and
  beyond;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the magnitude and scope of our
  research and development programs;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the progress we make in our
  research and development programs, preclinical development and clinical
  trials;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">our ability to establish, enforce
  and maintain strategic arrangements for research, development, clinical
  testing, manufacturing and marketing;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the number and type of product
  candidates that we pursue;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the time and costs involved in
  obtaining regulatory approvals and clearances; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the costs involved in preparing,
  filing, prosecuting, maintaining, defending and enforcing patent
  claims.</font> </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We do not have any committed sources of capital. 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. 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. Additional equity financings, if we obtain them, could
result in significant dilution to stockholders. Further, in the event that
additional funds are obtained through arrangements with collaborative partners,
these arrangements may require us to relinquish rights to some of our
technologies, product candidates or proposed products that we would otherwise
seek to develop and commercialize ourselves. If sufficient capital is not
available, we may be required to delay, reduce the scope of or eliminate one or
more of our programs, any of which could have a material adverse effect on our
business.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">28</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO CLINICAL AND
COMMERCIALIZATION ACTIVITIES</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Delays in the commencement of clinical testing of our current and
potential product candidates could result in increased costs to us and delay our
ability to generate revenues.</font></font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>The commencement of clinical trials
can be delayed for a variety of reasons, including delays in:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">demonstrating sufficient safety
  and efficacy to obtain regulatory clearance to commence a clinical
  trial;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">manufacturing sufficient
  quantities or producing drugs meeting our quality standards of a product
  candidate;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">obtaining approval of an
  Investigational New Drug (IND) application or proposed trial design from the
  FDA;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">reaching agreement on acceptable
  terms with our collaborators on all aspects of the clinical trial, including
  the contract research organizations (CROs) and the trial sites;
  and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">obtaining institutional review
  board approval to conduct a clinical trial at a prospective site.</font>
</li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition, clinical trials may be delayed due to insufficient patient
enrollment, which is a function of many factors, including the size and nature
of the patient population, the nature of the protocol, the proximity of patients
to clinical sites, the availability of effective treatments for the relevant
disease, and the eligibility criteria for the clinical trial. Delays in
commencing clinical testing of our product candidates could have a material
adverse effect on our business.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">We do not have experience as a company conducting large-scale clinical
trials, or in other areas required for the successful commercialization and
marketing of our product candidates.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We have no experience as a company in conducting large-scale, late stage
clinical trials. We cannot be certain that planned clinical trials will begin or
be completed on time, if at all. Large-scale trials would require either
additional financial and management resources, or reliance on third-party
clinical investigators, CROs or consultants. Relying on third-party clinical
investigators or CROs may force us to encounter delays that are outside of our
control. Any such delays could have a material adverse effect on our
business.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We also do not currently have marketing and distribution capabilities for
our product candidates. Developing an internal sales and distribution capability
would be an expensive and time-consuming process. We may enter into agreements
with third parties that would be responsible for marketing and distribution.
However, these third parties may not be capable of successfully selling any of
our product candidates. The inability to commercialize and market our product
candidates could materially adversely affect our business.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Obtaining regulatory approvals to market our product candidates 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 commercialize our product
candidates.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 creating commercially viable products from
our discoveries. The regulatory process, particularly for biopharmaceutical
product candidates like ours, is uncertain, can take many years and requires the
expenditure of substantial resources.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">29</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our potential product candidates will require extensive preclinical and
clinical testing prior to submission of any regulatory application to commence
commercial sales. In particular, human pharmaceutical therapeutic product
candidates are subject to rigorous requirements of the FDA in the United States
and similar health authorities in other countries in order to demonstrate safety
and efficacy. Data obtained from preclinical and clinical activities is
susceptible to varying interpretations that could delay, limit or prevent
regulatory agency approvals. In addition, delays or rejections may be
encountered as a result of changes in regulatory agency policy during the period
of product development and/or the period of review of any application for
regulatory agency approval for a product candidate.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Any product candidate that we or our collaborators develop 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 certain of our product candidates involve the
application of new technologies or are based upon a new therapeutic approach,
they may be subject to substantial additional review by various government
regulatory authorities, and, as a result, the process of obtaining regulatory
approvals for them may proceed more slowly than for product candidates based
upon more conventional technologies.</font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>Delays in obtaining regulatory
agency approvals could:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">significantly harm the marketing
  of any products that we or our collaborators develop;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">impose costly procedures upon our
  activities or the activities of our collaborators;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">diminish any competitive
  advantages that we or our collaborators may attain; or<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">adversely affect our ability to
  receive royalties and generate revenues and profits.</font> </li>
    </ul>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Even if we commit the
necessary time and resources, the required regulatory agency approvals may not
be obtained for any product candidates developed by us or in collaboration with
us. If we obtain regulatory agency approval for a new product, this approval may
entail limitations on the indicated uses for which it can be marketed that could
limit the potential commercial use of the product.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Failure to achieve continued compliance with government regulation over
approved products could delay or halt commercialization of our
products.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 withdrawal of the product from the market. The sale by us or our
collaborators of any commercially viable product will be subject to government
regulation from several standpoints, including the processes of:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">manufacturing;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">advertising and
  promoting;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">selling and
  marketing;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">labeling; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">distribution.</font> </li>
    </ul>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">If, and to the extent
that, we are unable to comply with these regulations, our ability to earn
revenues will be materially and negatively impacted.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Failure to comply with regulatory requirements can result in severe civil
and criminal penalties, including but not limited to:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">recall or seizure of
  products;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">injunction against the
  manufacture, distribution and sales and marketing of products;
  and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">criminal prosecution.</font>
</li>
    </ul>
    <div><font 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></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">30</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO PROTECTING OUR INTELLECTUAL
PROPERTY</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Impairment of our intellectual property rights may adversely affect the
value of our technologies and product candidates and limit our ability to pursue
their development.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Protection of our proprietary technology is critically important to our
business. Our success will depend in part on our ability to obtain and enforce
our patents and maintain trade secrets, both in the United States and in other
countries. 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 are unsuccessful in obtaining and
enforcing patents, our business would be negatively impacted.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 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 technology, or enforce
issued patents, is uncertain. In the United States, recent court decisions in
patent cases as well as proposed legislative changes to the patent system only
exacerbate this uncertainty. Furthermore, significant amendments to the
regulations governing the process of obtaining patents were proposed in a new
rule package by the United States Patent and Trademark Office (the Patent
Office) in 2007. The proposed new rules were widely regarded as detrimental to
the interests of biotechnology and pharmaceutical companies. The implementation
of the rule package was blocked by a court injunction requested by a
pharmaceutical company. The Patent Office challenged the court decision through
an appeal to the U.S. Court of Appeals for the Federal Circuit (CAFC), but the
appeal was dismissed in November 2009, after the Patent Office changed course
and rescinded the proposed new rules. At this point we do not know whether the
Patent Office will attempt to introduce new rules to replace those that were
recently withdrawn or whether any such new rules would also be
challenged.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In Europe, the European Patent Convention prohibits the granting of
European patents for inventions that concern &#8220;uses of human embryos for
industrial or commercial purposes.&#8221; The European Patent Office (EPO) was earlier
interpreting this prohibition broadly, and applying it to reject claims in any
patent application that pertained to hESCs. An early patent application filed by
the Wisconsin Alumni Research Foundation (WARF) with claims covering the
original isolation of hESCs was appealed as a test case, and examination of
other hESC patent applications was suspended while that case was heard. In
November 2008, the EPO Enlarged Board of Appeals held that the claims in the
WARF application were unpatentable. Geron holds a worldwide license under this
patent family, and since the decision is not subject to further appeal, this
WARF patent family will not afford protection to Geron&#8217;s hESC-based product
candidates in Europe. However, the reason given by the EPO for the decision was
narrowly focused: the EPO found the claims objectionable on the basis that at
the time that WARF filed the patent application it was necessary to use a human
embryo to obtain hESCs since no cell lines were available. In contrast, the
hESCs that we use, and which we employed in the technologies claimed in our own
European patent applications, were sourced from established hESC lines.
Consequently, the decision in the WARF case does not directly address the
patentability of the subject matter in our filings. The EPO has recently
restarted examination of hESC patent applications, but is being inconsistent in
its application of the WARF decision to these later filed cases. At this time,
we do not know whether or to what extent we will be able to obtain patent
protection for our hESC technologies in Europe. If we are unable to protect our
inventions related to hESCs in Europe, our business would be negatively
impacted.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Challenges to our patent rights can result in costly and time-consuming
legal proceedings that may prevent or limit development of our product
candidates.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">31</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Where several parties seek 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. Moreover, parties that receive an adverse decision in an
interference can lose important patent rights. Our pending patent applications,
or our issued patents, may be drawn into interference proceedings which may
delay or prevent the issuance of patents, or result in the loss of issued patent
rights. By way of example, we are currently a party to an interference
proceeding that involves patent filings for making endoderm cells from hESCs. We
requested that the Patent Office declare this interference after Novocell Inc.
was granted patent claims that conflict with subject matter we filed in an
earlier patent application. The interference proceeding will determine whether
we or Novocell are entitled to such patent claims. Since this interference is
still ongoing, we cannot predict what the outcome will be.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Outside of the United States, certain jurisdictions, such as Europe, New
Zealand and Australia, permit oppositions to be filed against the granting of
patents. Because our intent is to commercialize products internationally,
securing both proprietary protection and freedom to operate outside of the
United States is important to our business. We are 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. For example, we
have been involved in two patent oppositions before the EPO with a Danish
company, Pharmexa. Pharmexa (which acquired the Norwegian company GemVax in
2005) was developing a cancer vaccine that employs a short telomerase peptide to
induce an immune response against telomerase and was conducting a Phase III
clinical trial. Pharmexa obtained a European patent with broad claims to the use
of telomerase vaccines for the treatment of cancer, and Geron opposed that
patent in 2004. In 2005, the Opposition Division (OD) of the EPO revoked the
claims originally granted to Pharmexa, but permitted Pharmexa to add new,
narrower claims limited to five specific small peptide fragments of telomerase.
The decision was appealed to the Technical Board of Appeals (TBA). In August
2007, the TBA ruled, consistent with the decision of the OD, that Pharmexa was
not entitled to the originally granted broad claims but was only entitled to the
narrow claims limited to the five small peptides.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In parallel, Pharmexa opposed a European patent held by Geron, the claims
of which cover many facets of human telomerase, including the use of telomerase
peptides in cancer vaccines. In June 2006, the OD of the EPO revoked three of
the granted claims in Geron&#8217;s patent, specifically the three claims covering
telomerase peptide cancer vaccines. We have appealed that decision to the TBA,
and that appeal is still pending. Because this appeal is ongoing, the outcome
cannot be determined at this time. We are also seeking to obtain patent coverage
in Europe for telomerase peptides through a European divisional patent
application. If and when those patent claims are issued, they too may be subject
to an opposition proceeding. In late 2008, Pharmexa reported that it sold its
telomerase vaccine program to a Korean company, KAEL Co. Ltd.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">European opposition and appeal proceedings can take several years to
reach final decision. The oppositions discussed above reflect the complexity of
the patent landscape in which we operate, and illustrate the risks and
uncertainties. We are also currently involved in other patent opposition
proceedings in Europe and Australia.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Patent opposition proceedings are not currently available in the U.S.
patent system, but legislation has been proposed to introduce them. However,
issued U.S. patents can be reexamined by the Patent Office at the request of a
third party. Patents owned or licensed by Geron may therefore be subject to
reexamination. As in any legal proceeding, the outcome of patent reexaminations
is uncertain, and a decision adverse to our interests could result in the loss
of valuable patent rights.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In July 2006, requests were filed on behalf of the Foundation for
Taxpayer and Consumer Rights (now renamed as &#8220;Consumer Watchdog&#8221;) for
reexamination of three issued U.S. patents owned by WARF and relating to hESCs.
These three patents (U.S. Patent Nos. 5,843,780, 6,200,806 and 7,029,913), which
are the U.S. equivalents of the European WARF case discussed above, are licensed
to Geron pursuant to a January 2002 license agreement with WARF. The license
agreement conveys exclusive rights to Geron under the WARF patents for the
development and commercialization of therapeutics based on neural cells,
cardiomyocytes and pancreatic islet cells, derived from hESCs, as well as
non-exclusive rights for other product opportunities. In October 2006, the
Patent Office initiated the reexamination proceedings. After initially rejecting
the patent claims, the Patent Office issued decisions in all three cases
upholding the patentability of the claims. The decisions to uphold the 5,843,780
and 6,200,806 patents are final and not subject to further appeal. Consumer
Watchdog appealed the decision on the 7,029,913 patent. In April 2010, the Board
of Patent Appeals and Interferences reversed the earlier decision of the Patent
Office on the 7,029,913 patent. WARF will now have the opportunity
to&#160;present the&#160;claims&#160;for further examination&#160;at the Patent
Office. We cooperated with WARF in these reexamination actions and expect that
WARF will continue to vigorously defend its patent position.</font><font size="2" style="FONT-FAMILY: serif"> The final outcome of these or of any future
reexamination proceedings cannot be determined at this time. Reduction or loss
of claim scope in these WARF embryonic stem cell patents could negatively impact
Geron&#8217;s proprietary position in this technology.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">32</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As more groups become engaged in scientific research and product
development in the areas of telomerase biology and embryonic stem cells, the
risk of our patents being challenged through patent interferences, oppositions,
reexaminations 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></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">causing us to lose patent rights
  in the relevant jurisdiction(s);<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">subjecting us to litigation, or
  otherwise preventing us from commercializing potential products in the
  relevant jurisdiction(s);<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">requiring us to obtain licenses to
  the disputed patents;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">forcing us to cease using the
  disputed technology; or<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">requiring us to develop or obtain
  alternative technologies.</font> </li>
    </ul>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Furthermore, if such
challenges to our patent rights are not resolved promptly in our favor, our
existing business relationships may be jeopardized and we could be delayed or
prevented from entering into new collaborations or from commercializing certain
products, which could materially harm our business.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">If we fail to meet our obligations under license agreements, we may lose
our rights to key technologies on which our business
depends.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our business depends on several critical technologies that are based in
part on patents licensed from third parties. Those third-party license
agreements impose obligations on us, such as payment obligations and obligations
to diligently pursue development of commercial products under the licensed
patents. If a licensor believes that we have failed to meet our obligations
under a license agreement, the licensor could seek to limit or terminate our
license rights, which could lead to costly and time-consuming litigation and,
potentially, a loss of the licensed rights. During the period of any such
litigation our ability to carry out the development and commercialization of
potential products could be significantly and negatively affected. If our
license rights were restricted or ultimately lost, our ability to continue our
business based on the affected technology would be severely adversely
affected.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">We may be subject to litigation that will be costly to defend or pursue
and uncertain in its outcome.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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. That litigation is
likely to be expensive and may require a significant amount of management&#8217;s time
and attention, at the expense of other aspects of our business. 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.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">33</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">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 potential
products.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our commercial success depends significantly on our ability to operate
without infringing patents and the proprietary rights of others. Our
technologies may infringe the patents or proprietary rights of others. In
addition, we may become aware of discoveries and technology controlled by third
parties that are advantageous to our programs. In the event our technologies
infringe the rights of others or we require the use of discoveries and
technology controlled by third parties, we may be prevented from pursuing
research, development or commercialization of potential products or may be
required to obtain licenses to those patents or other proprietary rights or
develop or obtain alternative technologies. We have obtained licenses from
several universities and companies for technologies that we anticipate
incorporating into our potential products, and we initiate negotiation for
licenses to other technologies as the need or opportunity arises. We may not be
able to obtain a license to patented technology on commercially favorable terms,
or at all. If we do not obtain a necessary license, we may need to redesign our
technologies or obtain rights to alternate technologies, the research and
adoption of which could cause delays in product development. In cases where we
are unable to license necessary technologies, we could be prevented from
developing certain potential products. Our failure to obtain alternative
technologies or a license to any technology that we may require to research,
develop or commercialize our product candidates would significantly and
negatively affect our business.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">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></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 assure you 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></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO OUR RELATIONSHIPS WITH THIRD
PARTIES</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">We depend on other parties to help us develop, manufacture and test our
product candidates, and our ability to develop and commercialize potential
products may be impaired or delayed if collaborations are
unsuccessful.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our strategy for the development, clinical testing and commercialization
of our product candidates requires that we enter into collaborations with
corporate partners, licensors, licensees and others. We are dependent upon the
subsequent success of these other parties in performing their respective
responsibilities and the continued cooperation of our partners. By way of
examples: Merck is developing cancer vaccines targeted to telomerase other than
dendritic cell-based vaccines; Sienna is developing cancer diagnostics using our
telomerase technology; and GE Healthcare is developing cell-based assays using
cells derived from our hESCs. Our collaborators may not cooperate with us or
perform their obligations under our agreements with them. We cannot control the
amount and timing of our collaborators&#8217; resources that will be devoted to
activities related to our collaborative agreements with them. Our collaborators
may choose to pursue existing or alternative technologies in preference to those
being developed in collaboration with us.</font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Under agreements with
other parties, we may rely significantly on them to, among other
activities:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">conduct research and development
  activities in conjunction with us;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">design and conduct advanced
  clinical trials in the event that we reach clinical trials;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">fund research and development
  activities with us;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">manage and license certain patent
  rights;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">pay us fees upon the achievement
  of milestones; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">market with us any commercial
  products that result from our collaborations.</font> </li>
    </ul>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">34</font></div>
    <div>&#160;</div>
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    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The development and commercialization of potential products will be
delayed if collaborators or other partners fail to conduct these activities in a
timely manner or at all. In addition, our collaborators could terminate their
agreements with us and we may not receive any development or milestone payments.
If we do not achieve milestones set forth in the agreements, or if our
collaborators breach or terminate their collaborative agreements with us, our
business may be materially harmed.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We also rely on other companies for certain process development,
manufacturing or other technical scientific work, especially with respect to our
imetelstat, GRNVAC1, GRNOPC1 and GRNCM1 programs. We have contracts with these
companies that specify the work to be done and results to be achieved, but we do
not have direct control over their personnel or operations. If these companies
do not perform the work which they were assigned, our ability to develop or
manufacture our product candidates could be significantly harmed.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Our reliance on the activities of our non-employee consultants, research
institutions, and scientific contractors, whose activities are not wholly within
our control, may lead to delays in development of our product
candidates.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We rely extensively upon and have relationships with scientific
consultants at academic and other institutions, some of whom conduct research at
our request, and other consultants who assist us in formulating our research and
development and clinical strategy or other matters. These consultants 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 consultants 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.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition, we have formed research collaborations with many academic
and other research institutions throughout the world. These research facilities
may have commitments to other commercial and noncommercial entities. We have
limited control over the operations of these laboratories and can expect only
limited amounts of their time to be dedicated to our research
goals.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 our product candidates could be significantly
harmed.</font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO COMPETITIVE
FACTORS</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">The loss of key personnel could slow our ability to conduct research and
develop product candidates.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our future success depends to a significant extent on the skills,
experience and efforts of our executive officers and key members of our
scientific staff. We face intense competition for qualified individuals from
numerous pharmaceutical, biopharmaceutical and biotechnology companies, as well
as academic and other research institutions. 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></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Our product candidates are likely to be expensive to manufacture, and
they may not be profitable if we are unable to significantly reduce the costs to
manufacture them.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our telomerase inhibitor compound, imetelstat, our telomerase cancer
vaccine, GRNVAC1, and our hESC-based products are likely to be more expensive to
manufacture than most other drugs currently on the market today.
Oligonucleotides are relatively large molecules with complex chemistry, and the
cost of manufacturing an oligonucleotide like imetelstat is greater than the
cost of making most small-molecule drugs. Our present manufacturing processes
are conducted at a modest scale and we hope to substantially reduce
manufacturing costs through process improvements, as well as through scale
increases. If we are not able to do so, however, and, depending on the pricing
of the potential product, the profit margin on the telomerase inhibitor may be
significantly less than that of most drugs on the market today.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">35</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">GRNVAC1 is an autologous therapy that is produced from a patient&#8217;s blood
using a unique process that generates highly activated dendritic cells that
contain RNA coding for the protein component of telomerase. If we are unable to
scalably produce dendritic cells at a lower manufacturing cost, the cost of
GRNVAC1 may reduce the affordability of the therapy for patients and reduce our
potential profitability.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our manufacturing processes for differentiated cells from hESCs are
conducted at a small scale and at a high cost per unit measure. The cell-based
therapies we are developing based on hESCs will probably require large
quantities of cells. We continue to develop processes to scale up production of
the cells in a cost-effective way. We may not be able to charge a high enough
price for any cell therapy product we develop, even if it is safe and effective,
to make a profit. If we are unable to realize significant profits from our
potential product candidates, our business would be materially
harmed.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Some of our competitors may develop technologies that are superior to or
more cost-effective than ours, which may impact the commercial viability of our
technologies and which may significantly damage our ability to sustain
operations.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 programs in oncology and
human embryonic stem cell therapies, including the study of telomeres,
telomerase and hESCs. In addition, other products and therapies that could
compete directly with the product candidates that we are seeking to develop and
market currently exist or are being developed by pharmaceutical and
biopharmaceutical companies and by academic and other research
organizations.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Many companies are developing alternative therapies to treat cancer and,
in this regard, are competitors of ours. According to public data from the FDA
and NIH, there are more than 200 approved anti-cancer products on the market in
the United States, and several thousand in clinical development.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Many of the pharmaceutical companies developing and marketing these
competing products (including GlaxoSmithKline, Bristol-Myers Squibb Company and
Novartis AG, among others) have significantly greater financial resources and
expertise than we do in:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">research and
  development;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">manufacturing;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">preclinical and clinical
  testing;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">obtaining regulatory approvals;
  and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">marketing and distribution.</font>
  </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Smaller companies may also prove to be significant competitors,
particularly through collaborative arrangements with large and established
companies. 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
programs.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition to the above factors, we expect to face competition in the
following areas:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">product efficacy and
  safety;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the timing and scope of regulatory
  consents;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">availability of
  resources;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">reimbursement
  coverage;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">price; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">patent position, including
  potentially dominant patent positions of others.</font> </li>
    </ul>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">36</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">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
we do. Most significantly, competitive products may render any product
candidates that we develop obsolete, which would negatively impact our business
and ability to sustain operations.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">To be successful, our product candidates must be accepted by the health
care community, which can be very slow to adopt or unreceptive to new
technologies and products.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our product candidates and those developed by our collaborators, if
approved for marketing, may not achieve market acceptance since hospitals,
physicians, patients or the medical community in general may decide not to
accept and utilize these products. The product candidates that we are attempting
to develop represent substantial departures from established treatment methods
and will compete with a number of conventional drugs and therapies manufactured
and marketed by major pharmaceutical companies. The degree of market acceptance
of any of our developed potential products will depend on a number of factors,
including:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">our establishment and
  demonstration to the medical community of the clinical efficacy and safety of
  our product candidates;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">our ability to create products
  that are superior to alternatives currently on the market;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">our ability to establish in the
  medical community the potential advantage of our treatments over alternative
  treatment methods; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">reimbursement policies of
  government and third-party payors.</font> </li>
    </ul>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">If the health care
community does not accept our potential products for any of the foregoing
reasons, or for any other reason, our business would be materially
harmed.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">If we fail to obtain acceptable prices or adequate reimbursement for our
product candidates, the use of our potential products could be severely
limited.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our ability to successfully commercialize our product candidates 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, President Obama signed the Patient Protection and Affordability Care
Act,&#160;as amended&#160;by the Health Care and Education Affordability
Reconciliation Act (collectively, the PPACA) into law. Focused on expanding
healthcare coverage to millions of uninsured Americans and reducing the rate of
increase in healthcare costs, the PPACA contains numerous initiatives that
impact the pharmaceutical industry. These include, among other
things:</font></div>
    <ul>
      <li><font size="2" style="FONT-FAMILY: serif">increasing existing price rebates
  in federally funded health care programs;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">expanding rebates, or other
  pharmaceutical company discounts, into new programs;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">imposing a new non-deductible
  excise tax on sales of certain prescription pharmaceutical products by
  prescription drug manufacturers and importers;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">reducing incentives for
  employer-sponsored health care;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">creating an independent commission
  to propose changes to Medicare with a particular focus on the cost of
  biopharmaceuticals in Medicare Part D;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">providing a government-run public
  option with biopharmaceutical price-setting capabilities;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">allowing the Secretary of Health
  and Human Services to negotiate drug prices within Medicare Part D directly
  with pharmaceutical manufacturers;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">reducing the number of years of
  data exclusivity for innovative biological products potentially leading to
  earlier biosimilar competition;<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">increasing oversight by the FDA of
  pharmaceutical research and development processes and commercialization
  tactics; and<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">adding a tax credit for qualifying
  therapeutic discovery projects (QTDP).</font> </li>
    </ul>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">37</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif"><font size="2" style="FONT-FAMILY: serif">While the PPACA may increase the
number of patients who have insurance coverage for our product candidates, its
cost containment measures could also adversely affect reimbursement for our
potential products. Cost control initiatives could decrease the price that we
receive for any product candidate we may develop in the future. If our potential
products are not considered cost-effective or if we fail to generate adequate
third-party reimbursement for the users of our potential products and
treatments, then we may be unable to maintain price levels sufficient to realize
an appropriate return on our investment for potential products currently in
development, which could have an adverse impact on our
business.</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The QTDP tax credit is equal to 50% of qualifying expenses incurred or
directly related to the conduct of a qualifying therapeutic discovery project
for taxable years beginning in 2009 and 2010. The credit can be used to either
reduce the federal tax liability for an eligible taxpayer or be received as a
grant for the same amount tax free. Eligible taxpayers must be a single employer
of not more than 250 employees. To qualify for the credit, a project must be
submitted to and certified by the Treasury Department. As of April 30, 2010, the
final guidelines for the QTDP tax credit have not been released. Although our
research and development activities appear to meet the initial criteria to
receive a tax credit, we cannot predict the availability or amount of funds that
could be received. If we are unsuccessful in obtaining the benefits of the QTDP
tax credit and our competitors are successful, our business may be adversely
impacted.</font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO ENVIRONMENTAL AND PRODUCT
LIABILITY</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Our activities involve hazardous materials, and improper handling of
these materials by our employees or agents could expose us to significant legal
and financial penalties.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our research and development activities involve the controlled use of
hazardous materials, chemicals and various radioactive compounds. As a
consequence, we are subject to numerous environmental and safety laws and
regulations, including those governing laboratory procedures, exposure to
blood-borne pathogens and the handling of biohazardous materials. We 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></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Although we believe that our safety procedures for using, handling,
storing and disposing of hazardous materials comply with the standards
prescribed by state and federal regulations, the risk of accidental
contamination or injury from these materials cannot be eliminated. In the event
of such an accident, state or federal authorities could curtail our use of these
materials and we could be liable for any civil damages that result, the cost of
which could be substantial. 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 could subject us to significant liabilities, including joint and
several liability under certain statutes. Any such liability 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 our
research and manufacturing facilities and operations.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Additional federal, state and local laws and regulations affecting us may
be adopted in the future. We 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></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">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></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 our potential products is alleged to have injured subjects or patients.
This risk exists for product candidates tested in human clinical trials as well
as potential products that are sold commercially. 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></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">38</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">RISKS RELATED TO OUR COMMON STOCK AND
FINANCIAL REPORTING</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Our stock price has historically been very
volatile.</font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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. This 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></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Historically, our stock price has been extremely volatile. Between
January 2000 and March 2010, our stock has traded as high as $75.88 per share
and as low as $1.41 per share. Between January 1, 2007 and March 31, 2010, the
price has ranged between a high of $9.85 per share and a low of $1.95 per share.
The significant market price fluctuations of our common stock are due to a
variety of factors, including: </font></div>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">the demand in the market for our
  common stock;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the experimental nature of our
  product candidates;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">fluctuations in our operating
  results;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">market conditions relating to the
  biopharmaceutical and pharmaceutical industries;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">announcements of technological
  innovations, new commercial products, or clinical progress or lack thereof by
  us, our collaborative partners or our competitors;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">announcements concerning
  regulatory developments, developments with respect to proprietary rights and
  our collaborations;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">comments by securities
  analysts;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">general market
  conditions;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">political developments related to
  hESC research;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">public concern with respect to our
  product candidates; or</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">the issuance of common stock to
  partners, vendors or to investors to raise additional capital.</font> </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition, the stock market is subject to other factors outside our
control that can cause extreme price and volume fluctuations. In the third and
fourth quarters of 2008, as well as during 2009, broad distress in the financial
markets and the economy have resulted in greatly increased market uncertainty
and instability in both U.S. and international capital and credit markets. These
conditions, combined with volatile oil prices, declining business and consumer
confidence and increased unemployment have recently contributed to substantial
market volatility, and if such market conditions persist, the price of our
common stock may fluctuate or decline. Securities class action litigation has
often been brought against companies, including many biotechnology companies,
which experience volatility in the market price of their securities. Litigation
brought against us could result in substantial costs and a diversion of
management&#8217;s attention and resources, which could adversely affect our
business.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">The sale of a substantial number of shares may adversely affect the
market price for our common stock. </font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 for our common stock. As of
March 31, 2010, we had 200,000,000 shares of common stock authorized for
issuance and 97,458,243 shares of common stock outstanding. In addition, as of
March 31, 2010, we have reserved for future issuance approximately 22,266,272
shares of common stock for our stock plans, potential milestone payments and
outstanding warrants. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition, we have issued common stock to certain parties, such as
vendors and service providers, as payment for products and services. Under these
arrangements, we typically agree to register the shares for resale soon after
their issuance. We may continue to pay for certain goods and services in this
manner, which would dilute your interest in us. Also, sales of the shares issued
in this manner could negatively affect the market price for our common stock.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">39</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Our undesignated preferred stock may inhibit potential acquisition bids;
this may adversely affect the market price for our common stock and the voting
rights of holders of our common stock. </font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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. As of the date of this Form 10-Q, 50,000 shares of preferred stock
have been designated Series A Junior Participating Preferred Stock and the Board
of Directors still has authority to designate and issue up to 2,950,000 shares
of preferred stock in one or more classes or series. 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 for our common
stock may be adversely affected. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 for our common stock could be
adversely affected. </font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Provisions in our share purchase rights plan, charter and bylaws, and
provisions of 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></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our Board of Directors has adopted a share purchase rights plan, commonly
referred to as a &#8220;poison pill.&#8221; This plan entitles existing stockholders to
rights, including the right to purchase shares of common stock, in the event of
an acquisition of 15% or more of our outstanding common stock. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Our share purchase rights plan could prevent stockholders from profiting
from an increase in the market value of their shares as a result of a change of
control of us by delaying or preventing a change of control. In addition, our
Board of Directors has the authority, without further action by our
stockholders, to issue additional shares of common stock, and to fix the rights
and preferences of one or more series of preferred stock. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition to our share purchase rights plan and the undesignated
preferred stock, 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></div>
    <ul style="FONT-SIZE: 10pt">
      <li><font size="2" style="FONT-FAMILY: serif">prevent stockholders from taking
  actions by written consent;</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">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</font><br>&#160;
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">set forth procedures for
  nominating directors and submitting proposals for consideration at
  stockholders&#8217; meetings.</font> </li>
    </ul>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 change of control
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></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">We do not intend to pay cash dividends on our common stock in the
foreseeable future. </font></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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 the Board of Directors. Furthermore, we may incur
additional indebtedness that may severely restrict or prohibit the payment of
dividends. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">40</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">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></font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Section 404 of the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act)
requires that we establish and maintain an adequate internal control structure
and procedures for financial reporting. Our annual report 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></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The requirements of Section 404 of the Sarbanes-Oxley Act 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></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 2. UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS </font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">On January 5, 2010, we issued 133,357 shares of our common stock to MPI
Research, Inc. (MPI) in a private placement as consideration under an amendment
to a master services agreement under which MPI has provided and will continue to
provide certain preclinical services in support of our clinical programs. The
fair value of the common stock of $829,000 was recorded as a prepaid asset and
is being amortized to research and development expense on a pro-rata basis as
services are performed. As of March 31, 2010, $290,000 remained as a prepaid
asset which is expected to be expensed over the next six months. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">On January 5, 2010, we issued 94,741 shares of our common stock to
Exponent, Inc. (Exponent), the lessor of the premises at 149 Commonwealth Drive,
as a first installment payment of rent due under the extended lease agreement
for the period from May 1, 2010 through July 31, 2012. The fair value of the
common stock of $589,000 was recorded as a prepaid asset and will be amortized
to rent expense on a pro-rata basis over the lease term.</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">On January 25, 2010, we issued 287,401 shares of our common stock to
Samchully Pharm Co. Ltd. (Samchully) in a private placement as consideration
related to an addendum agreement to a manufacturing agreement pursuant to which
Samchully is performing certain services and manufacturing certain raw materials
and products for us intended for use in human clinical trials. The fair value of
the common stock of $1,704,000 was recorded as a prepaid asset and is being
amortized to research and development expense on a pro-rata basis upon the
performance of services and the proper receipt of materials. As of March 31,
2010, $1,704,000 remained as a prepaid asset which is expected to be expensed
over the next six months. </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">We issued the above-described shares of common stock in independent
transactions and in reliance upon the exemption from registration provided by
Section 4(2) of the Securities Act of 1933, as amended. Each of MPI, Exponent
and Samchully represented to us that it is an accredited investor as defined in
Rule 501(a) of the Securities Act of 1933, as amended, and that the securities
issued pursuant thereto were being acquired for investment purposes.
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Purchases of Equity Securities by the Issuer
and Affiliated Purchasers </font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>None.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">41</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 3. DEFAULTS UPON SENIOR
SECURITIES</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>None.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 4. (REMOVED AND
RESERVED)</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>None.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 5. OTHER INFORMATION</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>None.</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 6. EXHIBITS</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom" style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse;">
            <td nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exhibit<br>Number</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td align="left" nowrap width="94%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Description</font></td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
              <div align="center"><font size="2" style="FONT-FAMILY: serif">31.1</font></div>
            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Executive Officer pursuant to Form of Rule 13a-14(a) and 15d-14(a),
      as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
      dated April 30, 2010.</font></div>
            </td>
          </tr><tr>
            <td nowrap valign="top" width="4%">
            </td>
            <td nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
              <div align="center"><font size="2" style="FONT-FAMILY: serif">31.2</font></div>
            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Financial Officer pursuant to Form of Rule 13a-14(a) and 15d-14(a),
      as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
      dated April 30, 2010.</font></div>
            </td>
          </tr><tr>
            <td nowrap valign="top" width="4%">
            </td>
            <td nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
              <div align="center"><font size="2" style="FONT-FAMILY: serif">32.1</font></div>
            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted
      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated April 30,
      2010.</font></div>
            </td>
          </tr><tr>
            <td nowrap valign="top" width="4%">
            </td>
            <td nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
              <div align="center"><font size="2" style="FONT-FAMILY: serif">32.2</font></div>
            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted
      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated April 30,
      2010.</font></div>
            </td>
          </tr></table>
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">SIGNATURE</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">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, thereunto duly authorized.</font><font style="FONT-FAMILY: serif">
</font></div>
    <div>&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr>
            <td align="left" nowrap width="50%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">GERON
      CORPORATION</font></div>
            </td>
          </tr><tr>
            <td align="left" nowrap width="50%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="24%">&#160;</td>
            <td align="left" nowrap width="25%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="50%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">By:&#160; </font></td>
            <td align="left" nowrap width="24%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">/s/ DAVID L.
      GREENWOOD</font></td>
            <td align="left" nowrap width="25%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="50%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="49%"><font size="2" style="FONT-FAMILY: serif">David L. Greenwood</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="50%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="49%"><font size="2" style="FONT-FAMILY: serif">Executive Vice President
and</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="50%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="49%"><font size="2" style="FONT-FAMILY: serif">Chief Financial Officer</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="50%"><font size="2" style="FONT-FAMILY: serif">Date: April 30, 2010</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="49%"><font size="2" style="FONT-FAMILY: serif">(Duly Authorized
  Signatory)</font></td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">42</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT INDEX</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom" style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse;">
            <td nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exhibit<br>Number</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td align="left" nowrap width="94%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Description</font></td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
              <div align="center"><font size="2" style="FONT-FAMILY: serif">31.1</font></div>
            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Executive Officer pursuant to Form of Rule 13a-14(a) and 15d-14(a),
      as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
      dated April 30, 2010.</font></div>
            </td>
          </tr><tr>
            <td nowrap valign="top" width="4%">
            </td>
            <td nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
              <div align="center"><font size="2" style="FONT-FAMILY: serif">31.2</font></div>
            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Financial Officer pursuant to Form of Rule 13a-14(a) and 15d-14(a),
      as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
      dated April 30, 2010.</font></div>
            </td>
          </tr><tr>
            <td nowrap valign="top" width="4%">
            </td>
            <td nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
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            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted
      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated April 30,
      2010.</font></div>
            </td>
          </tr><tr>
            <td nowrap valign="top" width="4%">
            </td>
            <td nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top" width="4%" bgcolor="#c0c0c0">
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            </td>
            <td nowrap valign="top" width="1%" bgcolor="#c0c0c0">&#160;</td>
            <td align="left" valign="top" width="94%" bgcolor="#c0c0c0">
              <div align="left"><font size="2" style="FONT-FAMILY: serif">Certification of
      Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted
      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated April 30,
      2010.</font></div>
            </td>
          </tr></table>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exhibit31-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO FORM OF RULE 13A-14(A)
<TEXT>
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<head>
    <title>exhibit31-1.htm</title>
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    <div align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT 31.1</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CERTIFICATION PURSUANT TO<br>FORM OF RULE
13a-14(a) AND 15d-14(a)<br>AS ADOPTED PURSUANT TO<br>SECTION 302(A) OF THE
SARBANES-OXLEY ACT OF 2002</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">I, Thomas B. Okarma,
Chief Executive Officer of Geron Corporation, certify that: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
<tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">1.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">I have
      reviewed this quarterly report on Form 10-Q of Geron
  Corporation;</font></td>
          </tr><tr>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
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            </td>
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            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">Based
      on my knowledge, this report does not contain any untrue statement of a
      material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were made, not misleading with respect to the period covered by this
      report;</font> </td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
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            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">Based
      on my knowledge, the financial statements, and other financial information
      included in this report, fairly present in all material respects the
      financial condition, results of operations and cash flows of the
      registrant as of, and for, the periods presented in this
  report;</font></td>
          </tr><tr>
            <td nowrap>
            </td>
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          </tr><tr>
            <td nowrap valign="top">
            </td>
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            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">The
      registrant&#8217;s other certifying officer(s) and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
      control over financial reporting (as defined in Exchange Act Rules
      13a-15(f) and 15d-15(f)) for the registrant and have:</font></td>
          </tr><tr>
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            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td width="100%">
            </td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(a)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Designed such
      disclosure controls and procedures, or caused such disclosure controls and
      procedures to be designed under our supervision, to ensure that material
      information relating to the registrant, including its consolidated
      subsidiaries, is made known to us by others within those entities,
      particularly during the period in which this report is being
      prepared;</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
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            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Designed such
      internal control over financial reporting, or caused such internal control
      over financial reporting to be designed under our supervision, to provide
      reasonable assurance regarding the reliability of financial reporting and
      the preparation of financial statements for external purposes in
      accordance with generally accepted accounting principles;</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(c)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Evaluated the
      effectiveness of the registrant&#8217;s disclosure controls and procedures and
      presented in this report our conclusions about the effectiveness of the
      disclosure controls and procedures, as of the end of the period covered by
      this report based on such evaluation; and</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(d)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Disclosed in this
      report any change in the registrant&#8217;s internal control over financial
      reporting that occurred during the registrant&#8217;s most recent fiscal quarter
      (the registrant&#8217;s fourth fiscal quarter in the case of an annual report)
      that has materially affected, or is reasonably likely to materially
      affect, the registrant&#8217;s internal control over financial reporting;
      and</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">5.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">The
      registrant&#8217;s other certifying officer(s) and I have disclosed, based on
      our most recent evaluation of internal control over financial reporting,
      to the registrant&#8217;s auditors and the audit committee of the registrant&#8217;s
      board of directors (or persons performing the equivalent
    functions):</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(a)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">All significant
      deficiencies and material weaknesses in the design or operation of
      internal control over financial reporting which are reasonably likely to
      adversely affect the registrant&#8217;s ability to record, process, summarize
      and report financial information; and</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(b)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Any fraud,
      whether or not material, that involves management or other employees who
      have a significant role in the registrant&#8217;s internal control over
      financial reporting.</font></td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Date: April 30,
2010</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">/s/ THOMAS B. OKARMA&#160;
<br></font></font><font size="2" style="FONT-FAMILY: serif">Thomas B.
Okarma</font><br><font size="2" style="FONT-FAMILY: serif">President and Chief
Executive Officer</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exhibit31-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO FORM OF RULE 13A-14(A)
<TEXT>
<html>
<head>
    <title>exhibit31-2.htm</title>
<!-- Licensed to: DG3 I docs, Inc.-->
<!-- Document Created using EDGARizerAgent 5.1.5.0 -->
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</head>
<body bgcolor="#ffffff"><br>
    <div align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT 31.2</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CERTIFICATION PURSUANT TO<br>FORM OF RULE
13a-14(a) AND 15d-14(a)<br>AS ADOPTED PURSUANT TO<br>SECTION 302(A) OF THE
SARBANES-OXLEY ACT OF 2002</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">I, David L. Greenwood,
Chief Financial Officer of Geron Corporation, certify that: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
<tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">1.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">I have
      reviewed this quarterly report on Form 10-Q of Geron
  Corporation;</font></td>
          </tr><tr>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td colspan="3" width="100%">
            </td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">2.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">Based
      on my knowledge, this report does not contain any untrue statement of a
      material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were made, not misleading with respect to the period covered by this
      report;</font> </td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">3.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">Based
      on my knowledge, the financial statements, and other financial information
      included in this report, fairly present in all material respects the
      financial condition, results of operations and cash flows of the
      registrant as of, and for, the periods presented in this
  report;</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">4.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">The
      registrant&#8217;s other certifying officer(s) and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
      control over financial reporting (as defined in Exchange Act Rules
      13a-15(f) and 15d-15(f)) for the registrant and have:</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td width="100%">
            </td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(a)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Designed such
      disclosure controls and procedures, or caused such disclosure controls and
      procedures to be designed under our supervision, to ensure that material
      information relating to the registrant, including its consolidated
      subsidiaries, is made known to us by others within those entities,
      particularly during the period in which this report is being
      prepared;</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(b)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Designed such
      internal control over financial reporting, or caused such internal control
      over financial reporting to be designed under our supervision, to provide
      reasonable assurance regarding the reliability of financial reporting and
      the preparation of financial statements for external purposes in
      accordance with generally accepted accounting principles;</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(c)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Evaluated the
      effectiveness of the registrant&#8217;s disclosure controls and procedures and
      presented in this report our conclusions about the effectiveness of the
      disclosure controls and procedures, as of the end of the period covered by
      this report based on such evaluation; and</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(d)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Disclosed in this
      report any change in the registrant&#8217;s internal control over financial
      reporting that occurred during the registrant&#8217;s most recent fiscal quarter
      (the registrant&#8217;s fourth fiscal quarter in the case of an annual report)
      that has materially affected, or is reasonably likely to materially
      affect, the registrant&#8217;s internal control over financial reporting;
      and</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">5.</font></td>
            <td nowrap valign="top">
            </td>
            <td colspan="3" width="100%"><font size="2" style="FONT-FAMILY: serif">The
      registrant&#8217;s other certifying officer(s) and I have disclosed, based on
      our most recent evaluation of internal control over financial reporting,
      to the registrant&#8217;s auditors and the audit committee of the registrant&#8217;s
      board of directors (or persons performing the equivalent
    functions):</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(a)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">All significant
      deficiencies and material weaknesses in the design or operation of
      internal control over financial reporting which are reasonably likely to
      adversely affect the registrant&#8217;s ability to record, process, summarize
      and report financial information; and</font></td>
          </tr><tr>
            <td nowrap>
            </td>
            <td colspan="5" width="100%">&#160;</td>
          </tr><tr>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap>
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(b)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">Any fraud,
      whether or not material, that involves management or other employees who
      have a significant role in the registrant&#8217;s internal control over
      financial reporting.</font></td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Date: April 30,
2010</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">/s/ DAVID L. GREENWOOD&#160;
<br></font></font><font size="2" style="FONT-FAMILY: serif">David L.
Greenwood</font><br><font size="2" style="FONT-FAMILY: serif">Executive Vice
President and Chief Financial Officer</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exhibit32-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
<html>
<head>
    <title>exhibit32-1.htm</title>
<!-- Licensed to: DG3 I docs, Inc.-->
<!-- Document Created using EDGARizerAgent 5.1.5.0 -->
<!-- Copyright 1995 - 2009 Thomson Reuters. All rights reserved. -->
</head>
<body bgcolor="#ffffff"><br>
    <div align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT 32.1</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION
1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the
Sarbanes-Oxley Act of 2002, the undersigned officer of Geron Corporation (the
&#8220;Company&#8221;) hereby certifies, to such officer&#8217;s knowledge, that:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(i)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">the accompanying
      quarterly report on Form 10-Q of the Company for the quarter ended March
      31, 2010 (the &#8220;Report&#8221;) fully complies with the requirements of Section
      13(a) or Section 15(d), as applicable, of the Securities Exchange Act of
      1934, as amended; and</font></td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td width="100%">
            </td>
          </tr><tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(ii)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">the information
      contained in the Report fairly presents, in all material respects, the
      financial condition and results of operations of the
  Company.</font></td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Dated: April 30, 2010
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">/s/ THOMAS B.
OKARMA&#160;<br></font></font><font size="2" style="FONT-FAMILY: serif">Thomas B.
Okarma</font><br><font size="2" style="FONT-FAMILY: serif">President and Chief
Executive Officer</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">A signed original of this written statement required by Section 906 has
been provided to Geron Corporation and will be retained by Geron Corporation and
furnished to the Securities and Exchange Commission or its staff upon
request.</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>exhibit32-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
<html>
<head>
    <title>exhibit32-2.htm</title>
<!-- Licensed to: DG3 I docs, Inc.-->
<!-- Document Created using EDGARizerAgent 5.1.5.0 -->
<!-- Copyright 1995 - 2009 Thomson Reuters. All rights reserved. -->
</head>
<body bgcolor="#ffffff"><br>
    <div align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT 32.2</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION
1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002</font></font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the
Sarbanes-Oxley Act of 2002, the undersigned officer of Geron Corporation (the
&#8220;Company&#8221;) hereby certifies, to such officer&#8217;s knowledge, that:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(i)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">the accompanying
      quarterly report on Form 10-Q of the Company for the quarter ended March
      31, 2010 (the &#8220;Report&#8221;) fully complies with the requirements of Section
      13(a) or Section 15(d), as applicable, of the Securities Exchange Act of
      1934, as amended; and</font></td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td width="100%">
            </td>
          </tr><tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">(ii)</font></td>
            <td nowrap valign="top">
            </td>
            <td width="100%"><font size="2" style="FONT-FAMILY: serif">the information
      contained in the Report fairly presents, in all material respects, the
      financial condition and results of operations of the
  Company.</font></td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: serif">Dated: April 30, 2010
</font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">/s/ DAVID L.
GREENWOOD&#160;<br></font></font><font size="2" style="FONT-FAMILY: serif">David
L. Greenwood</font><br><font size="2" style="FONT-FAMILY: serif">Executive Vice
President and Chief Financial Officer</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">A signed original of this written statement required by Section 906 has
been provided to Geron Corporation and will be retained by Geron Corporation and
furnished to the Securities and Exchange Commission or its staff upon request.
</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
  </body>
</html>


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