Document:

SECURITIES PURCHASE AGREEMENT DATED JANUARY 29, 2004

 EXHIBIT 10.1 
  
 SECURITIES PURCHASE AGREEMENT 
 DATED JANUARY 29, 2004 
  
 This Securities Purchase Agreement (this “Agreement”) is dated as of January 29, 2004, among V.I. Technologies, Inc., a Delaware corporation (the “Company”), and the purchasers identified on the signature
pages hereto (each a “Purchaser” and collectively the “Purchasers”); and 
  
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined below), and Rule
506 promulgated thereunder, the Company desires to issue and sell to the Purchasers, and the Purchasers, severally and not jointly, desire to purchase from the Company, in the aggregate, up to 3,778,258 shares of Common Stock and Warrants to
purchase up to 1,511,299 shares of Common Stock. 
  
 NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated in this Section 1.1: 
  
 “Action” shall have the meaning ascribed to such term in Section 3.1(j). 
  
 “Affiliate” means any Person that, directly
or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund or managed account that
is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 
  
 “Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close. 
  
 “Closing” means the closing of the purchase and sale of the Common Stock pursuant to Section 2.1. 
  
 “Closing Date” means the date of the
Closing, which date shall not be later than three (3) business days following the satisfaction of each of the conditions set forth in Section 2.2 hereof. 
  
 “Closing Price” means the volume weighted average price per share of Common Stock calculated on the basis of transactions
reported by the Nasdaq Stock Market over the ten days preceding the Closing Date. 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “Common Stock” means the common stock of the Company, $0.01 par value per share, and any
securities into which such common stock may hereafter be reclassified. 

 “Common Stock Equivalents” means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for,
or otherwise entitles the holder thereof to receive, Common Stock. 
  
 “Company Counsel” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
  
 “Disclosure Schedules” means the Disclosure Schedules attached as Annex I hereto. 
  
 “Effective Date” means the date that the
Registration Statement is first declared effective by the Commission. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(l). 
  
 “Liens” means a lien, charge, security
interest, encumbrance, right of first refusal or other restriction. 
  
 “Material Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b). 
  
 “Per Share Purchase Price” means $1.15. 
  
 “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
  
 “Purchaser Option” shall have the meaning ascribed to such term in Section 2.3. 

 
 “Registration Statement” means a
registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Purchasers of the Shares and the Warrant Shares. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the
date of this Agreement, among the Company and each Purchaser, in the form of Exhibit A hereto. 
  
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 
  
 “Securities” means the Shares, the
Warrants, the Warrant Shares and the Option Shares. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Shares” means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement. 
  
 “Subsidiary” shall have the meaning
ascribed to such term in Section 3.1(a). 
  
 “Subscription Amount” means, as to each Purchaser and the Closing, the amounts set forth below such Purchaser’s signature block on the signature page hereto, in United States dollars and in immediately available funds.

  
 “Trading Day” means a day on
which the Common Stock is traded on a Trading Market. 
  
 “Trading Market” means the Nasdaq Stock Market. 
  
 “Transaction Documents” means this Agreement, the Registration Rights Agreement, the Warrant and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 “Warrants” means the Common Stock Purchase Warrants, in the form of
Exhibit B, issuable to the Purchasers at Closing, which warrants shall be exercisable immediately and have an exercise price of $1.75 and a term of exercise of four (4) years. 
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

  
 ARTICLE II 
 PURCHASE AND SALE 
  
 2.1 Closing. At the Closing, the Purchasers shall purchase, severally and not jointly, and the Company shall issue and sell, in the aggregate, a number of shares
of Common Stock equal to 3,778,258 shares of Common Stock and Warrants to purchase up to 1,511,299 shares of Common Stock on the Closing Date. Each Purchaser shall purchase from the Company, and the Company shall issue and sell to each Purchaser, a
number of Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price. No later than three (3) business days following the satisfaction of each of the conditions set forth in Section 2.2, the Closing shall occur
at the offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., One Financial Center, Boston, Massachusetts, or such other location as the parties shall mutually agree. 
  
 2.2 Closing Conditions. 
  
 (a) At the Closing the Company shall deliver or cause to be delivered to each Purchaser: 
  
 (i) this Agreement duly executed by the Company;

  
 (ii) a certificate evidencing a number of
Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser; 
  
 (iii) a Warrant, registered in the name of such Purchaser, pursuant to which such Purchaser shall have the right to acquire up to the
number of shares of Common Stock equal to 40% of the Shares to be issued to such Purchaser at such Closing; 
  
 (iv) the Registration Rights Agreement duly executed by the Company; 
  
 (v) a legal opinion of Company Counsel, in the form of Exhibit C attached hereto. 
  
 (b) At the Closing each Purchaser shall deliver or cause to
be delivered to the Company the following: 
  
 (i) this Agreement duly executed by such Purchaser; 
  
 (ii) such Purchaser’s Subscription Amount as to such Closing by wire transfer to the account of the Company; and 
  
 (iii) the Registration Rights Agreement duly executed by such Purchaser. 

 (c) All representations and warranties of the other party contained herein shall remain
true and correct as of the Closing Date. 
  
 (d)
As of the Closing Date, there shall have been no Material Adverse Effect with respect to the Company since the date hereof. 
  
 (e) From the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission (except for any
suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United
States or New York State authorities. 
  
 (f) The
approval of the Company’s stockholders of the issuance of the Shares for purposes of the requirements set forth in NASD Marketplace Rule 4350(i)(1)(D) shall have been obtained, at a special meeting of stockholders to be called for that purpose.
The Company shall obtain such approval within 45 days of the date of this Agreement. 
  
 2.3 Purchaser Option. Each Purchaser shall have the option to purchase from the Company, and the Company shall issue and sell to each such Purchaser who exercises such option, up to a number of Shares equal to twenty-five percent
(25%) of such Purchaser’s Subscription Amount divided by the Per Share Purchase Price (the “Purchaser Option”) at a purchase price equal to the Per Share Purchase Price per share. The Purchaser Option shall expire five (5)
months following the Effective Date. Each Purchaser exercising the Purchaser Option shall deliver to the Company an Exercise Form as set forth in the form of Exhibit D hereto. Within five (5) days of receipt of such Exercise Form, the Company
shall deliver to the Purchaser exercising such Purchaser Option a certificate evidencing the number of Shares purchased pursuant to the Purchaser Option (collectively, the “Option Shares”). 
  
 2.4 Additional Purchase. Subject to receipt of notice from the Company confirming the
approval of the Company’s stockholders, and subject to the satisfaction of the conditions set forth in Section 2.2 hereof, each Purchaser shall have the obligation to purchase such additional number of shares of Common Stock, at the Per Share
Purchase Price, requested by the dollar amount set forth under “Additional Purchaser Obligation” on the Purchaser’s signature page attached hereto. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
  
 3.1 Representations and Warranties
of the Company. Except as set forth under the corresponding section of the Disclosure Schedules delivered concurrently herewith, the Company hereby makes the following representations and warranties as of the date hereof and as of the Closing
Date to each Purchaser: 

 (a) Subsidiaries. Except for V.I. Technologies Ltd., an entity incorporated for
regulatory purposes in the United Kingdom (the “Subsidiary”), the Company has no direct or indirect subsidiaries. The Company owns, directly or indirectly, all of the capital stock of its Subsidiary free and clear of any lien, charge,
security interest, encumbrance, right of first refusal or other restriction (collectively, “Liens”), and all the issued and outstanding shares of capital stock of the Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights. 
  
 (b) Organization and Qualification. Each of the Company and the Subsidiary is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
organization (as applicable), with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor the Subsidiary is in violation of any of the
provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or
reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the
Company and the Subsidiary, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a
“Material Adverse Effect”). 
  
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations
thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of the Company and no
further action is required by the Company in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid
and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) as limited by public policy. 
  
 (d) No Conflicts. The execution, delivery and
performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company’s or the Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or 

 without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or the Subsidiary is a party or by which any property or asset of the Company or the Subsidiary is bound or affected, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or the Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or the Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect. 
  
 (e) Filings, Consents and Approvals. Other than as
set forth in Section 2.2(f) hereof, the Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (a) the filing with the Commission of the Registration Statement, the application(s) to each Trading Market
for the listing of the Shares, Warrant Shares and Option Shares for trading thereon in the time and manner required thereby, and applicable Blue Sky filings, (b) such as have already been obtained or such exemptive filings as are required to be made
under applicable securities laws, and (c) such other filings as may be required following the Closing Date under the Securities Act, the Exchange Act and corporate law. 
  
 (f) Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in
accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock
issuable pursuant to this Agreement and the Warrants. 
  
 (g) Capitalization. The capitalization of the Company is as described in the Company’s most recent periodic report filed with the Commission. The Company has not issued any capital stock since such filing other than pursuant to
the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plan, pursuant to the conversion or exercise of Common
Stock Equivalents outstanding on the date hereof, and in connection with the private placement transactions announced by the Company on December 5, 2003 (the “December 5 Transaction”). No Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities, the warrants and options issued to the purchasers in the
December 5 Transaction, and except for employee stock options under the Company’s stock option plans and except for employee rights under the Company’s employee stock purchase plan, there are no outstanding options, warrants, script rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may 

 become bound to issue additional shares of Common Stock, or securities or rights convertible or
exchangeable into shares of Common Stock. The issue and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. 
  
 (h) SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and
the Exchange Act, including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material) (the foregoing materials, including the
exhibits thereto, being collectively referred to herein as the “SEC Reports” and, together with the Disclosure Schedules to this Agreement, the “Disclosure Materials”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the
Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
  
 (i) Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as
disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or
required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans
or employee stock purchase plans. The Company does not have pending before the Commission any request for confidential treatment of information. 

 (j) Litigation. Except as disclosed in the SEC Reports, there is no action, suit,
inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction
Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary is or has been the subject of any Action involving a
claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 
  
 (k) Compliance. Except as disclosed in the SEC
Reports, neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or
any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of
any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in the case of clauses (i), (ii) and (iii) as would not have or reasonably be expected to result in a Material
Adverse Effect. 
  
 (l) Title to Assets.
The Company and the Subsidiary have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiary, taken as a whole, and good and marketable title in all personal
property owned by them that is material to the business of the Company and the Subsidiary, taken as a whole, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property
and facilities held under lease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiary are in material compliance. 
  
 (m) Patents and Trademarks. To the knowledge of the
Company and the Subsidiary, the Company and the Subsidiary have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are
necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have or reasonably be expected to result in a Material Adverse Effect (collectively, the
“Intellectual Property Rights”). Neither the Company nor the Subsidiary has received a written notice that the Intellectual Property Rights used by the Company or the Subsidiary violates or infringes the rights of any Person.

 (n) Insurance. The Company and the Subsidiary are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiary are engaged. Neither the Company nor the Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

  
 (o) Transactions With Affiliates and
Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or the
Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or
partner, in each case in excess of $60,000 other than (a) for payment of salary or consulting fees for services rendered, (b) reimbursement for expenses incurred on behalf of the Company and (c) for other employee benefits, including stock option
agreements under any stock option plan of the Company. 
  
 (p) Internal Accounting Controls. The Company and the Subsidiary maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has
established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including the
Subsidiary, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Form 10-K or 10-Q, as the case may be, is being prepared. The Company’s certifying officers have
evaluated the effectiveness of the Company’s controls and procedures as of the end of the quarter ended September 27, 2003 (such date, the “Evaluation Date”). The Company presented in its Form 10-Q for the quarter ended
September 27, 2003 the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes
in the Company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15 and 15d-15) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s internal
control over financial reporting. 

 (q) Certain Fees. The Purchasers shall have no obligation with respect to any
brokerage or finder’s fees or commissions payable to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other entity with respect to the transactions contemplated by this Agreement. 
  
 (r) Private Placement. Assuming the accuracy of the
Purchasers representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of the
Securities hereunder does not contravene the rules and regulations of the Trading Market. 
  
 (s) Investment Company. The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the
Investment Company Act of 1940, as amended. 
  
 (t) Registration Rights. Except for registration rights held by Ampersand Ventures, Pall Corporation and J.P. Morgan Partners and registration rights that have been waived, no Person has any outstanding right to cause the Company to
effect the registration under the Securities Act of any securities of the Company. 
  
 (u) Form S-3 Eligibility. Subject to the Company’s continued listing on The Nasdaq Stock Market, the Company is eligible to
register the resale of its Common Stock by the Purchasers under Form S-3 promulgated under the Securities Act. 
  
 (v) Listing and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any
Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market, other than notices that have been satisfactorily
resolved. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 
  
 (w) Application of Takeover Protections. The Company and its Board of Directors have taken all
necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s
Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their
rights under the Transaction Documents, including without limitation the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
  
 (x) Disclosure. The Company confirms that, neither the Company nor any other Person acting on its
behalf has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchasers will rely on the foregoing
representations and covenants in effecting transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this

 Agreement, furnished by or on behalf of the Company are true and correct and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 
  
 3.2 Representations and Warranties of the Purchasers. Each Purchaser hereby, for
itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date to the Company as follows: 
  
 (a) Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder. The
execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is a
party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its
terms. 
  
 (b) Investment Intent. Such
Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account for
investment purposes only and not with a view to or for distributing or reselling such Securities or any part thereof, has no present intention of distributing any of such Securities and has no arrangement or understanding with any other persons
regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state
securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities.

  
 (c) Purchaser Status. At the time such
Purchaser was offered the Securities, it was, and at the date hereof it is (a) an “accredited investor” as defined in Rule 501(a) under the Securities Act, and/or (b) a “qualified institutional buyer” as defined in Rule 144A
under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
  
 (d) Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is
able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 
  
 (e) General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or
other communication regarding the 

 Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement. 
  
 (f) Registration Required. Such Purchaser hereby covenants with the Company not to make any sale of the Shares, Warrant Shares or Option Shares without complying with the provisions hereof and of the
Registration Rights Agreement, and without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied (unless such Purchaser is selling such Shares, Warrant Shares or Option Shares in a transaction not subject
to the prospectus delivery requirement), and such Purchaser acknowledges that the certificates evidencing the Shares, Warrant Shares or Option Shares will be imprinted with a legend that prohibits their transfer except in accordance therewith.

  
 (g) No Tax or Legal Advice. Such
Purchaser understands that nothing in this Agreement, any other Transaction Document or any other materials presented to such Purchaser in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. Such
Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Securities. 
  
 ARTICLE IV 
 OTHER
AGREEMENTS OF THE PARTIES 
  
 4.1 Transfer Restrictions.
 
  
 (a) The Securities may only be
disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement, to the Company, to an Affiliate of a Purchaser or in connection with a pledge
as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a
Purchaser under this Agreement and the Registration Rights Agreement. 
  
 (b) The Purchasers agree to the imprinting, so long as is required by this Section 4.1(b), of a legend on any of the Securities in the following form: 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR 

 PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
  
 The Company acknowledges and agrees that a Purchaser may from
time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule
501(a) under the Securities Act and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the
Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will
execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. 
  
 (c) Certificates evidencing the Shares, Warrant Shares and Option Shares shall not contain any legend
(including the legend set forth in Section 4.1(b)), (i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Shares,
Warrant Shares or Option Shares pursuant to Rule 144, or (iii) if such Shares, Warrant Shares or Option Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the Staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the Effective Date if required by the
Company’s transfer agent to effect the removal of the legend hereunder. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Warrant Shares, such Warrant Shares
shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than five (5) Trading Days following the delivery by a
Purchaser to the Company or the Company’s transfer agent of a certificate representing Shares, Warrant Shares or Option Shares, as the case may be, issued with a restrictive legend, deliver or cause to be delivered to such Purchaser a
certificate representing such Securities that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer
set forth in this Section. 

 (d) In addition to such Purchaser’s other available remedies, the Company shall pay
to a Purchaser, in cash, as liquidated damages and not as a penalty, for each $1,000 of Shares or Warrant Shares (based on the Closing Price of the Common Stock on the date such Securities are submitted to the Company’s transfer agent) subject
to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after such fifth (5th) Trading Day until such certificate is delivered. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s
failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief. 
  
 (e) Each Purchaser severally and not jointly agrees that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance that the Purchaser will
sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom. 
  
 4.2 Furnishing of Information. As long as any Purchaser owns Securities, the Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. Upon the request of any such holder of Securities, the Company shall deliver to such
holder a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will
prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. 
  
 4.3 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchasers or
that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market. The Company covenants to obtain shareholder approval prior to closing any subsequent transaction that may be deemed to
be integrated with this offering for the purposes of the rules of the Nasdaq Stock Market. 
  
 4.4 Securities Laws Disclosure; Publicity. The Company shall, by 8:30 a.m. Eastern time on the Business Day following the date of this Agreement, issue a press release or file a Current Report on Form 8-K, in
each case reasonably acceptable to each Purchaser disclosing the transactions contemplated hereby. The Company and each Purchaser shall consult with each other in issuing any press releases with respect to the transactions contemplated hereby, and
neither the Company nor any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each
Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with notice of
such 

 public statement or communication. Notwithstanding the foregoing, other than as set forth above, the Company shall not
publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal
securities law in connection with the registration statement contemplated by the Registration Rights Agreement and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the
Purchasers with prior notice of such disclosure permitted under subclause (i) or (ii). 
  
 4.5 Shareholders Rights Plan. No claim will be made or enforced by the Company or any other Person that any Purchaser is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect or
hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and
the Purchasers. 
  
 4.6 Non-Public Information. The Company covenants and
agrees that neither it nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser
shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions in securities of
the Company. 
  
 4.7 Use of Proceeds. The Company shall use the net
proceeds from the sale of the Securities hereunder for working capital and other general purposes. 
  
 4.8 Indemnification of Purchasers. The Company will indemnify and hold the Purchasers and their directors, officers, shareholders, partners, employees and agents (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any
such Purchaser Party may suffer or incur as a result of or relating to: (a) any misrepresentation, breach or inaccuracy, or any allegation by a third party that, if true, would constitute a breach or inaccuracy, of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents; or (b) any cause of action, suit or claim brought or made against such Purchaser Party and arising solely out of or solely resulting
from the execution, delivery, performance or enforcement of this Agreement or any of the other Transaction Documents and without causation by any other activity, obligation, condition or liability pertaining to such Purchaser. The Company will
reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses are incurred. 
  
 4.9 Reservation of Common Stock. As of the date hereof, the Company has reserved and
the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares and Option Shares pursuant to this Agreement and
Warrant Shares pursuant to the Warrants. 

 4.10 Listing of Common Stock. The Company hereby agrees to use commercially reasonably efforts to maintain the
listing of the Common Stock on the Trading Market, and as soon as reasonably practicable following the Closing (but not later than the earlier of the Effective Date and the first anniversary of the Closing Date) to list the applicable Shares,
Warrant Shares and Option Shares on the Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will include in such application the Shares, Warrant Shares and Option Shares,
and will take such other action as is necessary or desirable in the opinion of the Purchasers to cause the Shares, Warrant Shares and Option Shares to be listed on such other Trading Market as promptly as possible. 
  
 4.11 Subsequent Equity Sales. From the date hereof until 30 days after the Effective
Date, neither the Company nor the Subsidiary shall issue additional shares of Common Stock or Common Stock Equivalents. Notwithstanding anything to the contrary herein, this Section 4.11 shall not apply to the following: (a) the granting of options
to employees, officers and directors of the Company pursuant to any stock option plan duly adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee
directors established for such purpose, or (b) the exercise of any security issued by the Company in connection with the offer and sale of the Company’s securities pursuant to this Agreement, or (c) the exercise of or conversion of any
convertible securities, options or warrants issued and outstanding on the date hereof, provided such securities have not been amended since the date hereof, (d) acquisitions or strategic investments, the primary purpose of which is not to raise
capital, (e) issuances of equity shares of Common Stock or Common Stock Equivalents in connection with or in contemplation of strategic alliances or corporate collaborations with non-financial purchasers, or (f) up to $6,600,000 worth of Common
Stock or Common Stock Equivalents. 
  
 ARTICLE V 
 MISCELLANEOUS 
  
 5.1 Fees and Expenses. Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement, except that the Company shall reimburse the Purchasers for the fees and expenses of legal counsel to the Purchasers, up to an
aggregate maximum of $25,000. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Securities. 
  
 5.2 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to
the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 
  
 5.3 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified on the
signature pages attached hereto prior to 6:30 p.m. (New York 

 City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number on the signature pages attached hereto on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of mailing, if sent by
U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

  
 5.4 Amendments; Waivers. No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 
  
 5.5 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
  
 5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser. Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom
such Purchaser assigns or transfers at least 50% of the amount of Securities originally purchased by such Purchaser hereunder, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions
hereof that apply to the “Purchasers.” 
  
 5.7 No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
  
 5.8 Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to the principles of conflicts of law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Delaware. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party hereto hereby irrevocably

 waives personal service of process and consents to process being served in any such suit, action or proceeding by
delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto (including its affiliates, agents, officers, directors and employees) hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an action or
proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding. 
  
 5.9 Survival.
The representations and warranties contained herein shall terminate upon the Closing and delivery of the Shares. 
  
 5.10 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 

 
 5.11 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision
that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
  
 5.12 Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or
cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement
Securities. 
  
 5.13 Remedies. In addition to being entitled to exercise
all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate
compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

  
 5.14 Independent Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the 

 obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any Transaction
Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way
acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own
separate legal counsel in their review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required
or requested to do so by the Purchasers. 
  
 (Signature Page
Follows) 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

									
	V.I. TECHNOLOGIES, INC.	 	 	 	 	 	 Address for Notice:

					
	 By:
	 	 /s/ John R. Barr

	 	 	 	 	 	 134 Coolidge Avenue

	 	 	 Name: John R. Barr
	 	 	 	 	 	 Watertown, MA 02472

	 	 	 Title: President and Chief Executive Officer
	 	 	 	 	 	 Attn: Thomas T. Higgins

	 	 	 	 	 	 	 	 	 Tel: (617) 926-1551

  
 With copy to (which shall not
constitute notice): 
 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
 One Financial Center 
 Boston, MA 02111 
 Attn: William T. Whelan, Esq. 
 Tel: 617-348-1869 
 Fax:
617-542-2241 
  
 [SIGNATURE PAGE CONTINUES] 
  
 PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT 
  

							
	 Bristol Investment Fund, Ltd.

	  	Address for Notice:	  	Bristol Capital Advisors, LLC
	 [NAME OF PURCHASER]
	  	 	  	6363 Sunset Boulevard, Fifth Floor
	 	  	 	  	 	  	 Hollywood, CA 90028

				
	 By:
	  	 /s/ Paul Kessler

	  	 	  	 
	 Name:
	  	 Paul Kessler
	  	 	  	 
	 Title:
	  	 Director
	  	 	  	 
		
	 Subscription Amount: $399,998.75
	  	 
				
	 	  	 	  	----	  	 
			
	 Capital Ventures International.

	  	Address for Notice:	  	 c/o Heights Capital Management

	 [NAME OF PURCHASER]
	  	 	  	 425 California St. Suite 1100

	 	  	 	  	 	  	 San Francisco, CA 94104

	 By:
	  	 Heights Capital Management, Inc.

				
	 By:
	  	 /s/ Martin Kobinger

	  	 	  	 
	 Name:
	  	 Martin Kobinger
	  	 	  	 
	 Title:
	  	 Investment Management
	  	 	  	 
			
	 Subscription Amount: $944,998.70
	  	 	  	 
				
	 	  	 	  	----	  	 
			
	 Cranshire Capital, L.P.

	  	Address for Notice:	  	 666 Dundee Road

	 [NAME OF PURCHASER]
	  	 	  	 Suite 1901

	 	  	 	  	 	  	 Northbrook, IL 60062

				
	 By:
	  	 /s/ Mitchell Kopin

	  	 	  	 
	 Name:
	  	Mitchell Kopin	  	 	  	 
	 Title:
	  	President- Downsview Capital, the General Partner	  	 	  	 
		
	 Subscription Amount: $100,000
	  	 
				
	 	  	 	  	 ----
	  	 

  

							
	 Crescent International, Ltd.

	  	Address for Notice:	 	 c/o GreenLight (Switzerland) S.A

	 [NAME OF PURCHASER]
	  	 	 	 84, Av. Louis Casai

	 	  	 	 	 P.O Box 161

	 	  	 	 	 CH 1216 Cointrin, Geneva

	 	  	 	 	 Switzerland

	 By:
	  	 /s/ Mel Craw Maxi Brezzi

	  	 	 	 
	 Name:
	  	 Mel Craw Maxi Brezzi
	  	 	 	 
	 Title:
	  	 Authorized Signatory
	  	 	 	 
		
	 Subscription Amount: $99,999.40
	 	 
				
	 	  	 	  	----	 	 
			
	 Michael R. Hamblett

	  	Address for Notice:	 	 34 Waterbury Ave.

	 [NAME OF PURCHASER]
	  	 	 	 Madison, CT 06443

				
	 By:
	  	 /s/ Michael R. Hamblett

	  	 	 	 
	 Name:
	  	 Michael R. Hamblett
	  	 	 	 
	 Title:
	  	 	  	 	 	 
		
	 Subscription Amount: $100,000
	 	 
				
	 	  	 	  	-----	 	 
			
	 Midsummer Investment, Ltd.

	  	Address for Notice:	 	 c/o Midsummer Capital LLC

	 [NAME OF PURCHASER]
	  	 	 	 485 Madison Avenue 23rd Floor

	 	  	 	  	 	 	 New York, NY 10022

	 By:
	  	 /s/ Scott Kaufman

	  	 	 	 
	 Name:
	  	 Scott Kaufman
	  	 	 	 
	 Title:
	  	Managing Director- Midsummer Capital LLC as Investment Advisor to Midsummer Investment, Ltd.
		
	 Subscription Amount: $349,999.05
	 	 
				
	 	  	 	  	-----	 	 
			
	 Portside Growth and Opportunity Fund

	  	Address for Notice:	 	 c/o Ramius Capital Group, LLC

	 [NAME OF PURCHASER]
	  	 	 	 666 Third Avenue, 26th Floor

	 	  	 	  	 	 	 New York, NY 10017

	 By:
	  	 /s/ Jeff Smith

	  	 	 	 
	 Name:
	  	 Jeff Smith
	  	 	 	 
	 Title:
	  	 Authorized Signatory
	  	 	 	 
		
	 Subscription Amount: $100,000
	 	 
				
	 	  	 	  	---	 	 
			
	 ProMed Partners, L.P.

	  	Address for Notice:	 	 c/o ProMed Management

	 [NAME OF PURCHASER]
	  	 	 	 125 Cambridgepark Drive

	 	  	 	  	 	 	 Cambridge, MA 02140

	 By:
	  	 /s/ David B. Musket

	  	 	 	 
	 Name:
	  	 David B. Musket
	  	 	 	 
	 Title:
	  	 Managing Partner
	  	 	 	 
			
	 Subscription Amount: $864,984
	  	 	 	 
	 	  	 	  	---	 	 

							
	 ProMed Offshore Fund, Ltd.

	  	Address for Notice:	  	 c/o ProMed Management

	 [NAME OF PURCHASER]
	  	 	  	 125 Cambridgepark Drive

	 	  	 	  	 	  	 Cambridge, MA 02140

				
	 By:
	  	 /s/ David B. Musket

	  	 	  	 
	 Name:
	  	 David B. Musket
	  	 	  	 
	 Title:
	  	 Managing Partner
	  	 	  	 
			
	 Subscription Amount: $140,162
	  	 	  	 
			
	 	  	---	  	 
	 ProMed Partners II, L.P.

	  	Address for Notice:	  	 c/o ProMed Management

	 [NAME OF PURCHASER]
	  	 	  	 125 Cambridgepark Drive

	 	  	 	  	 	  	 Cambridge, MA 02140

				
	 By:
	  	 /s/ David B. Musket

	  	 	  	 
	 Name:
	  	 David B. Musket
	  	 	  	 
	 Title:
	  	 Managing Partner
	  	 	  	 
			
	 Subscription Amount: $24,311
	  	 	  	 
			
	 	  	---	  	 
	 David B. Musket

	  	Address for Notice:	  	 c/o ProMed Management

	 [NAME OF PURCHASER]
	  	 	  	 125 Cambridgepark Drive

	 	  	 	  	 	  	 Cambridge, MA 02140

				
	 By:
	  	 /s/ David B. Musket

	  	 	  	 
	 Name:
	  	 David B. Musket
	  	 	  	 
	 Title:
	  	 	  	 	  	 
			
	 Subscription Amount: $220,547
	  	 	  	 
			
	 	  	---	  	 
	 Sagamore Hill Hub Fund, Ltd

	  	Address for Notice:	  	 Curt Schnackenberg c/o Sagamore Hill

	 [NAME OF PURCHASER]
	  	 	  	 #10 Glenville Street

	 	  	 	  	 	  	 Greenwich, CT 06831

				
	 By:
	  	 /s/ Len Zaltzman

	  	 	  	 
	 Name:
	  	 Len Zaltzman
	  	 	  	 
	 Title:
	  	 	  	 	  	 
			
	 Subscription Amount: $800,000
	  	 	  	 
	 	  	---	  	 
	 SRG Capital

	  	Address for Notice:	  	 SRG Capital LLC

	 [NAME OF PURCHASER]
	  	 	  	 120 Broadway, 40th Floor

	 	  	 	  	 	  	 New York, NY 10271

				
	 By:
	  	 /s/ Andrew Turchin

	  	 	  	 
	 Name:
	  	 Andrew Turchin
	  	 	  	 
	 Title:
	  	 Chief Financial Officer
	  	 	  	 
			
	 Subscription Amount: $100,000
	  	 	  	 
			
	 	  	-----	  	 
	 TCMP3 Partners

	  	Address for Notice:	  	 c/o Titan Capital Mgmt.

	 [NAME OF PURCHASER]
	  	 	  	 7 Century Drive Suite 201

	 	  	 	  	 	  	 Parsippany, N.J. 07054

				
	 By:
	  	 /s/ Walter Schenker

	  	 	  	 
	 Name:
	  	 Walter Schenker
	  	 	  	 
	 Title:
	  	 Principal
	  	 	  	 
			
	 Subscription Amount: $99,999.40
	  	 	  	 
			
	 	  	-------------------------------------SECURITIES PURCHASE AGREEMENT DATED JANUARY 13, 2004

 EXHIBIT 10.2 
  
 SECURITIES PURCHASE AGREEMENT 
 DATED JANUARY 13, 2004 
  
 This Securities Purchase Agreement (this “Agreement”) is dated as of January 13, 2004, among V.I. Technologies, Inc., a Delaware corporation (the “Company”), and the purchasers identified on the signature
pages hereto (each a “Purchaser” and collectively the “Purchasers”); and 
  
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined below), and Rule
506 promulgated thereunder, the Company desires to issue and sell to the Purchasers, and the Purchasers, severally and not jointly, desire to purchase from the Company, in the aggregate, up to 7,332,219 shares of Common Stock and Warrants to
purchase up to 2,932,884 shares of Common Stock. 
  
 NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated in this Section 1.1: 
  
 “Action” shall have the meaning ascribed to such term in Section 3.1(j). 
  
 “Affiliate” means any Person that, directly
or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund or managed account that
is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 
  
 “Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close. 
  
 “Closing” means the closing of the purchase and sale of the Common Stock pursuant to Section 2.1. 
  
 “Closing Date” means the date of the
Closing, which date shall not be later than three (3) business days following the satisfaction of each of the conditions set forth in Section 2.2 hereof. 
  
 “Closing Price” means the volume weighted average price per share of Common Stock calculated on the basis of transactions
reported by the Nasdaq Stock Market over the ten days preceding the Closing Date. 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “Common Stock” means the common stock of the Company, $0.01 par value per share, and any
securities into which such common stock may hereafter be reclassified. 

 “Common Stock Equivalents” means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for,
or otherwise entitles the holder thereof to receive, Common Stock. 
  
 “Company Counsel” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
  
 “Disclosure Schedules” means the Disclosure Schedules attached as Annex I hereto. 
  
 “Effective Date” means the date that the
Registration Statement is first declared effective by the Commission. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(l). 
  
 “Liens” means a lien, charge, security
interest, encumbrance, right of first refusal or other restriction. 
  
 “Material Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b). 
  
 “Per Share Purchase Price” means $.90. 
  
 “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
  
 “Purchaser Option” shall have the meaning ascribed to such term in Section 2.3. 

 
 “Registration Statement” means a
registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Purchasers of the Shares and the Warrant Shares. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the
date of this Agreement, among the Company and each Purchaser, in the form of Exhibit A hereto. 
  
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 
  
 “Securities” means the Shares, the
Warrants, the Warrant Shares and the Option Shares. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Shares” means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement. 
  
 “Subsidiary” shall have the meaning
ascribed to such term in Section 3.1(a). 
  
 “Subscription Amount” means, as to each Purchaser and the Closing, the amounts set forth below such Purchaser’s signature block on the signature page hereto, in United States dollars and in immediately available funds.

  
 “Trading Day” means a day on
which the Common Stock is traded on a Trading Market. 
  
 “Trading Market” means the Nasdaq Stock Market. 
  
 “Transaction Documents” means this Agreement, the Registration Rights Agreement, the Warrant and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 “Warrants” means the Common Stock Purchase Warrants, in the form of
Exhibit B, issuable to the Purchasers at Closing, which warrants shall be exercisable immediately and have an exercise price of $1.32 and a term of exercise of four (4) years. 
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

  
 ARTICLE II 
 PURCHASE AND SALE 
  
 2.1 Closing. At the Closing, the Purchasers shall purchase, severally and not jointly, and the Company shall issue and sell, in the aggregate, a number of shares
of Common Stock equal to 7,332,219 shares of Common Stock and Warrants to purchase up to 2,932,884 shares of Common Stock on the Closing Date. Each Purchaser shall purchase from the Company, and the Company shall issue and sell to each Purchaser, a
number of Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price. No later than three (3) business days following the satisfaction of each of the conditions set forth in Section 2.2, the Closing shall occur
at the offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., One Financial Center, Boston, Massachusetts, or such other location as the parties shall mutually agree. 
  
 2.2 Closing Conditions. 
  
 (a) At the Closing the Company shall deliver or cause to be delivered to each Purchaser: 
  
 (i) this Agreement duly executed by the Company; 

 
 (ii) a certificate evidencing a number of Shares equal to
such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser; 
  
 (iii) a Warrant, registered in the name of such Purchaser, pursuant to which such Purchaser shall have the right to acquire up to the
number of shares of Common Stock equal to 40% of the Shares to be issued to such Purchaser at such Closing; 
  
 (iv) the Registration Rights Agreement duly executed by the Company; 
  
 (v) a legal opinion of Company Counsel, in the form of Exhibit C attached hereto. 
  
 (b) At the Closing each Purchaser shall deliver or cause to
be delivered to the Company the following: 
  
 (i) this Agreement duly executed by such Purchaser; 
  
 (ii) such Purchaser’s Subscription Amount as to such Closing by wire transfer to the account of the Company; and 
  
 (iii) the Registration Rights Agreement duly executed by such Purchaser. 

 (c) All representations and warranties of the other party contained herein shall remain
true and correct as of the Closing Date. 
  
 (d)
As of the Closing Date, there shall have been no Material Adverse Effect with respect to the Company since the date hereof. 
  
 (e) From the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission (except for any
suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United
States or New York State authorities. 
  
 (f) The
approval of the Company’s stockholders of the issuance of the Shares for purposes of the requirements set forth in NASD Marketplace Rule 4350(i)(1)(D) shall have been obtained, at a special meeting of stockholders to be called for that purpose.
The Company shall obtain such approval within 45 days of the date of this Agreement. 
  
 2.3 Purchaser Option. Each Purchaser shall have the option to purchase from the Company, and the Company shall issue and sell to each such Purchaser who exercises such option, up to a number of Shares equal to twenty-five percent
(25%) of such Purchaser’s Subscription Amount divided by the Per Share Purchase Price (the “Purchaser Option”) at a purchase price equal to the Per Share Purchase Price per share. The Purchaser Option shall expire five (5)
months following the Effective Date. Each Purchaser exercising the Purchaser Option shall deliver to the Company an Exercise Form as set forth in the form of Exhibit D hereto. Within five (5) days of receipt of such Exercise Form, the Company
shall deliver to the Purchaser exercising such Purchaser Option a certificate evidencing the number of Shares purchased pursuant to the Purchaser Option (collectively, the “Option Shares”). 
  
 2.4 Additional Purchase. Subject to receipt of notice from the Company confirming the
approval of the Company’s stockholders, and subject to the satisfaction of the conditions set forth in Section 2.2 hereof, each Purchaser shall have the obligation to purchase such additional number of shares of Common Stock, at the Per Share
Purchase Price, requested by the dollar amount set forth under “Additional Purchaser Obligation” on the Purchaser’s signature page attached hereto. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
  
 3.1 Representations and Warranties
of the Company. Except as set forth under the corresponding section of the Disclosure Schedules delivered concurrently herewith, the Company hereby makes the following representations and warranties as of the date hereof and as of the Closing
Date to each Purchaser: 

 (a) Subsidiaries. Except for V.I. Technologies Ltd., an entity incorporated for
regulatory purposes in the United Kingdom (the “Subsidiary”), the Company has no direct or indirect subsidiaries. The Company owns, directly or indirectly, all of the capital stock of its Subsidiary free and clear of any lien, charge,
security interest, encumbrance, right of first refusal or other restriction (collectively, “Liens”), and all the issued and outstanding shares of capital stock of the Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights. 
  
 (b) Organization and Qualification. Each of the Company and the Subsidiary is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
organization (as applicable), with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor the Subsidiary is in violation of any of the
provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or
reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the
Company and the Subsidiary, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a
“Material Adverse Effect”). 
  
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations
thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of the Company and no
further action is required by the Company in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid
and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) as limited by public policy. 
  
 (d) No Conflicts. The execution, delivery and
performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company’s or the Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or 

 without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or the Subsidiary is a party or by which any property or asset of the Company or the Subsidiary is bound or affected, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or the Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or the Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect. 
  
 (e) Filings, Consents and Approvals. Other than as
set forth in Section 2.2(f) hereof, the Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (a) the filing with the Commission of the Registration Statement, the application(s) to each Trading Market
for the listing of the Shares, Warrant Shares and Option Shares for trading thereon in the time and manner required thereby, and applicable Blue Sky filings, (b) such as have already been obtained or such exemptive filings as are required to be made
under applicable securities laws, and (c) such other filings as may be required following the Closing Date under the Securities Act, the Exchange Act and corporate law. 
  
 (f) Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in
accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock
issuable pursuant to this Agreement and the Warrants. 
  
 (g) Capitalization. The capitalization of the Company is as described in the Company’s most recent periodic report filed with the Commission. The Company has not issued any capital stock since such filing other than pursuant to
the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plan, pursuant to the conversion or exercise of Common
Stock Equivalents outstanding on the date hereof, and in connection with the private placement transactions announced by the Company on December 5, 2003 (the “December 5 Transaction”). No Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities, the warrants and options issued to the purchasers in the
December 5 Transaction, and except for employee stock options under the Company’s stock option plans and except for employee rights under the Company’s employee stock purchase plan, there are no outstanding options, warrants, script rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may 

 become bound to issue additional shares of Common Stock, or securities or rights convertible or
exchangeable into shares of Common Stock. The issue and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. 
  
 (h) SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and
the Exchange Act, including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material) (the foregoing materials, including the
exhibits thereto, being collectively referred to herein as the “SEC Reports” and, together with the Disclosure Schedules to this Agreement, the “Disclosure Materials”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the
Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
  
 (i) Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as
disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or
required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans
or employee stock purchase plans. The Company does not have pending before the Commission any request for confidential treatment of information. 

 (j) Litigation. Except as disclosed in the SEC Reports, there is no action, suit,
inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction
Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary is or has been the subject of any Action involving a
claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 
  
 (k) Compliance. Except as disclosed in the SEC
Reports, neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or
any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of
any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in the case of clauses (i), (ii) and (iii) as would not have or reasonably be expected to result in a Material
Adverse Effect. 
  
 (l) Title to Assets.
The Company and the Subsidiary have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiary, taken as a whole, and good and marketable title in all personal
property owned by them that is material to the business of the Company and the Subsidiary, taken as a whole, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property
and facilities held under lease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiary are in material compliance. 
  
 (m) Patents and Trademarks. To the knowledge of the
Company and the Subsidiary, the Company and the Subsidiary have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are
necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have or reasonably be expected to result in a Material Adverse Effect (collectively, the
“Intellectual Property Rights”). Neither the Company nor the Subsidiary has received a written notice that the Intellectual Property Rights used by the Company or the Subsidiary violates or infringes the rights of any Person.

 (n) Insurance. The Company and the Subsidiary are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiary are engaged. Neither the Company nor the Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

  
 (0) Transactions With Affiliates and
Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or the
Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or
partner, in each case in excess of $60,000 other than (a) for payment of salary or consulting fees for services rendered, (b) reimbursement for expenses incurred on behalf of the Company and (c) for other employee benefits, including stock option
agreements under any stock option plan of the Company. 
  
 (p) Internal Accounting Controls. The Company and the Subsidiary maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has
established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including the
Subsidiary, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Form 10-K or 10-Q, as the case may be, is being prepared. The Company’s certifying officers have
evaluated the effectiveness of the Company’s controls and procedures as of the end of the quarter ended September 27, 2003 (such date, the “Evaluation Date”). The Company presented in its Form 10-Q for the quarter ended
September 27, 2003 the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes
in the Company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15 and 15d-15) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s internal
control over financial reporting. 

 (q) Certain Fees. The Purchasers shall have no obligation with respect to any
brokerage or finder’s fees or commissions payable to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other entity with respect to the transactions contemplated by this Agreement. 
  
 (r) Private Placement. Assuming the accuracy of the
Purchasers representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of the
Securities hereunder does not contravene the rules and regulations of the Trading Market. 
  
 (s) Investment Company. The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the
Investment Company Act of 1940, as amended. 
  
 (t) Registration Rights. Except for registration rights held by Ampersand Ventures, Pall Corporation and J.P. Morgan Partners and registration rights that have been waived, no Person has any outstanding right to cause the Company to
effect the registration under the Securities Act of any securities of the Company. 
  
 (u) Form S-3 Eligibility. Subject to the Company’s continued listing on The Nasdaq Stock Market, the Company is eligible to
register the resale of its Common Stock by the Purchasers under Form S-3 promulgated under the Securities Act. 
  
 (v) Listing and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any
Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market, other than notices that have been satisfactorily
resolved. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 
  
 (w) Application of Takeover Protections. The Company and its Board of Directors have taken all
necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s
Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their
rights under the Transaction Documents, including without limitation the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
  
 (x) Disclosure. The Company confirms that, neither the Company nor any other Person acting on its
behalf has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchasers will rely on the foregoing
representations and covenants in effecting transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this

 Agreement, furnished by or on behalf of the Company are true and correct and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 
  
 (y) No Integrated Offering. Neither the Company, nor
any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the
Securities to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable shareholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of the Company are listed or designated. 
  
 3.2 Representations and Warranties of the Purchasers. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date to the Company as
follows: 
  
 (a) Organization; Authority.
Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement has been duly authorized by all necessary
corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid
and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms. 
  
 (b) Investment Intent. Such Purchaser understands that the Securities are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account for investment purposes only and not with a view to or for distributing or reselling such Securities or any
part thereof, has no present intention of distributing any of such Securities and has no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and warranty not limiting such
Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its
business. Such Purchaser does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. 
  
 (c) Purchaser Status. At the time such Purchaser was offered the Securities, it was, and at the date hereof it is (a) an
“accredited investor” as defined in Rule 501(a) under the Securities Act, and/or (b) a “qualified institutional buyer” as defined in Rule 144A under the Securities Act. Such Purchaser is not required to be registered as a
broker-dealer under Section 15 of the Exchange Act. 

 (d) Experience of Such Purchaser. Such Purchaser, either alone or together with
its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and
risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 
  
 (e) General Solicitation. Such Purchaser is not
purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or
any other general solicitation or general advertisement. 
  
 (f) Registration Required. Such Purchaser hereby covenants with the Company not to make any sale of the Shares, Warrant Shares or Option Shares without complying with the provisions hereof and of the
Registration Rights Agreement, and without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied (unless such Purchaser is selling such Shares, Warrant Shares or Option Shares in a transaction not subject
to the prospectus delivery requirement), and such Purchaser acknowledges that the certificates evidencing the Shares, Warrant Shares or Option Shares will be imprinted with a legend that prohibits their transfer except in accordance therewith.

  
 (g) No Tax or Legal Advice. Such
Purchaser understands that nothing in this Agreement, any other Transaction Document or any other materials presented to such Purchaser in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. Such
Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Securities. 
  
 ARTICLE IV 
 OTHER
AGREEMENTS OF THE PARTIES 
  
 4.1 Transfer Restrictions.
 
  
 (a) The Securities may only be
disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement, to the Company, to an Affiliate of a Purchaser or in connection with a pledge
as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a
Purchaser under this Agreement and the Registration Rights Agreement. 

 (b) The Purchasers agree to the imprinting, so long as is required by this Section
4.1(b), of a legend on any of the Securities in the following form: 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
  
 The Company acknowledges and agrees that a Purchaser may
from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule
501(a) under the Securities Act and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the
Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will
execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. 
  
 (c) Certificates evidencing the Shares, Warrant Shares and Option Shares shall not contain any legend
(including the legend set forth in Section 4.1(b)), (i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Shares,
Warrant Shares or Option Shares pursuant to Rule 144, or (iii) if such Shares, Warrant Shares or Option Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the Staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the Effective Date if required by the
Company’s transfer agent to effect the removal of the legend hereunder. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Warrant 

 Shares, such Warrant Shares shall be issued free of all legends. The Company agrees that following the
Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than five (5) Trading Days following the delivery by a Purchaser to the Company or the Company’s transfer agent of a certificate
representing Shares, Warrant Shares or Option Shares, as the case may be, issued with a restrictive legend, deliver or cause to be delivered to such Purchaser a certificate representing such Securities that is free from all restrictive and other
legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. 
  
 (d) In addition to such Purchaser’s other available
remedies, the Company shall pay to a Purchaser, in cash, as liquidated damages and not as a penalty, for each $1,000 of Shares or Warrant Shares (based on the Closing Price of the Common Stock on the date such Securities are submitted to the
Company’s transfer agent) subject to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after such fifth (5th) Trading Day until such certificate is delivered. Nothing herein shall limit such Purchaser’s right to pursue actual
damages for the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief. 
  
 (e) Each Purchaser severally and not jointly agrees that the removal of the restrictive legend from certificates representing Securities
as set forth in this Section 4.1 is predicated upon the Company’s reliance that the Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom. 
  
 4.2 Furnishing of Information.
As long as any Purchaser owns Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act. Upon the request of any such holder of Securities, the Company shall deliver to such holder a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. As long as any Purchaser
owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers
to sell the Securities under Rule 144. 
  
 4.3 Integration. The Company
shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would
require the registration under the Securities Act of the sale of the Securities to the Purchasers or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market. The Company
covenants to obtain shareholder approval prior to closing any subsequent transaction that may be deemed to be integrated with this offering for the purposes of the rules of the Nasdaq Stock Market. 

 4.4 Securities Laws Disclosure; Publicity. The Company shall, by 8:30 a.m. Eastern time on the Business Day
following the date of this Agreement, issue a press release or file a Current Report on Form 8-K, in each case reasonably acceptable to each Purchaser disclosing the transactions contemplated hereby. The Company and each Purchaser shall consult with
each other in issuing any press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the
Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld, except if such disclosure is required by
law, in which case the disclosing party shall promptly provide the other party with notice of such public statement or communication. Notwithstanding the foregoing, other than as set forth above, the Company shall not publicly disclose the name of
any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection
with the registration statement contemplated by the Registration Rights Agreement and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of
such disclosure permitted under subclause (i) or (ii). 
  
 4.5 Shareholders
Rights Plan. No claim will be made or enforced by the Company or any other Person that any Purchaser is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect or hereafter adopted by the
Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

  
 4.6 Non-Public Information. The Company covenants and agrees that
neither it nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have
executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the
Company. 
  
 4.7 Use of Proceeds. The Company shall use the net proceeds
from the sale of the Securities hereunder for working capital and other general purposes. 
  
 4.8 Indemnification of Purchasers. The Company will indemnify and hold the Purchasers and their directors, officers, shareholders, partners, employees and agents (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any
such Purchaser Party may suffer or incur as a result of or relating to: (a) any misrepresentation, breach or inaccuracy, or any allegation by a third party that, if true, would constitute a breach or inaccuracy, of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents; or (b) any cause of action, suit or claim brought or made against such Purchaser Party and arising solely out of or solely resulting
from the execution, delivery, performance or enforcement of this Agreement or any of the other Transaction Documents and without causation by any other activity, obligation, 

 condition or liability pertaining to such Purchaser. The Company will reimburse such Purchaser for its reasonable legal
and other expenses (including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses are incurred. 
  
 4.9 Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep
available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares and Option Shares pursuant to this Agreement and Warrant Shares pursuant to the Warrants.

  
 4.10 Listing of Common Stock. The Company hereby agrees to use
commercially reasonably efforts to maintain the listing of the Common Stock on the Trading Market, and as soon as reasonably practicable following the Closing (but not later than the earlier of the Effective Date and the first anniversary of the
Closing Date) to list the applicable Shares, Warrant Shares and Option Shares on the Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will include in such application
the Shares, Warrant Shares and Option Shares, and will take such other action as is necessary or desirable in the opinion of the Purchasers to cause the Shares, Warrant Shares and Option Shares to be listed on such other Trading Market as promptly
as possible. 
  
 4.11 Subsequent Equity Sales. From the date hereof until
30 days after the Effective Date, neither the Company nor the Subsidiary shall issue additional shares of Common Stock or Common Stock Equivalents. Notwithstanding anything to the contrary herein, this Section 4.11 shall not apply to the following:
(a) the granting of options to employees, officers and directors of the Company pursuant to any stock option plan duly adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a
committee of non-employee directors established for such purpose, or (b) the exercise of any security issued by the Company in connection with the offer and sale of the Company’s securities pursuant to this Agreement, or (c) the exercise of or
conversion of any convertible securities, options or warrants issued and outstanding on the date hereof, provided such securities have not been amended since the date hereof, (d) acquisitions or strategic investments, the primary purpose of which is
not to raise capital, (e) issuances of equity shares of Common Stock or Common Stock Equivalents in connection with or in contemplation of strategic alliances or corporate collaborations with non-financial purchasers, or (f) up to $6,600,000 worth
of Common Stock or Common Stock Equivalents. 
  
 ARTICLE V

 MISCELLANEOUS 
  
 5.1 Fees and Expenses. Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement, except that the Company shall reimburse the Purchasers for the fees and expenses of legal
counsel to the Purchasers, up to an aggregate maximum of $25,000. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Securities. 

 5.2 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the
entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules. 
  
 5.3 Notices. Any and all notices or other
communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number on the signature pages attached hereto on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. 
  
 5.4 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission
of either party to exercise any right hereunder in any manner impair the exercise of any such right. 
  
 5.5 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
  
 5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser. Any Purchaser may assign any or all of its rights under this Agreement to any
Person to whom such Purchaser assigns or transfers at least 50% of the amount of Securities originally purchased by such Purchaser hereunder, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the
provisions hereof that apply to the “Purchasers.” 
  
 5.7 No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

  
 5.8 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the 

 interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Delaware. Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto (including its affiliates, agents, officers, directors and employees) hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of a Transaction
Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

  
 5.9 Survival. The representations and warranties contained herein shall
terminate upon the Closing and delivery of the Shares. 
  
 5.10 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf
such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 
  
 5.11 Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms
and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement. 
  
 5.12 Replacement of Securities.
If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities. 

 5.13 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including
recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any
breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate. 
  
 5.14 Independent Nature of Purchasers’ Obligations and Rights. The obligations of
each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction
Document. Nothing contained herein or in any Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document. Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for
such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the
convenience of the Company and not because it was required or requested to do so by the Purchasers. 
  
 (Signature Page Follows) 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

											
	V.I. TECHNOLOGIES, INC.	 	 	 	 	 	 	 	 Address for Notice:

						
	 By:
	 	 /s/ John R. Barr

	 	 	 	 	 	 	 	 134 Coolidge Avenue

	 	 	 Name: John R. Barr
	 	 	 	 	 	 	 	 Watertown, MA 02472

	 	 	 Title: President and Chief Executive Officer
	 	 	 	 	 	 	 	 Attn: Thomas T. Higgins

	 	 	 	 	 	 	 	 	 	 	 Tel: (617) 926-1551

  
 With copy to (which shall not
constitute notice): 
 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
 One Financial Center 
 Boston, MA 02111 
 Attn: William T. Whelan, Esq. 
 Tel: 617-348-1869 
 Fax:
617-542-2241 
  
 [SIGNATURE PAGE CONTINUES] 
  
 [PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT] 
  

							
	 Bluegrass Growth Fund LP

	  	Address for Notice:	  	 115 E 57th St. Suite 1111

	 [NAME OF PURCHASER]
	  	 	  	 New York, NY 10022

				
	 By:
	 	 /s/ Brian Shatz

	  	 	  	 
	 Name:
	 	 Brian Shatz
	  	 	  	 
	 Title:
	 	 Managing Member
	  	 	  	 
		
	 Subscription Amount: $250,000
	  	 
				
	 	 	 	  	----	  	 
			
	 Bristol Investment Fund, Ltd.

	  	Address for Notice:	  	 Bristol Capital Advisors, LLC

	 [NAME OF PURCHASER]
	  	 	  	 6363 Sunset Boulevard, Fifth Floor

	 	 	 	  	 	  	 Hollywood, CA 90028

				
	 By:
	 	 /s/ Paul Kessler

	  	 	  	 
	 Name:
	 	 Paul Kessler
	  	 	  	 
	 Title:
	 	 Director
	  	 	  	 
		
	 Subscription Amount: $500,000
	  	 
				
	 	 	 	  	----	  	 
			
	 Capital Ventures International.

	  	Address for Notice:	  	 c/o Heights Capital Management

	 [NAME OF PURCHASER]
	  	 	  	 425 California St. Suite 1100

	 	 	 	  	 	  	 San Francisco, CA 94104

				
	 By:
	 	 /s/ Martin Kobinger

	  	 	  	 
	 Name:
	 	 Martin Kobinger
	  	 	  	 
	 Title:
	 	 Investment Manager
	  	 	  	 
		
	 Subscription Amount: $750,000
	  	 
				
	 	 	 	  	----	  	 

							
	 Cranshire Capital, L.P.

	 	Address for Notice:	  	 666 Dundee Road

	 [NAME OF PURCHASER]
	 	 	  	 Suite 1901

	 	 	 	 	 	  	 Northbrook, IL 60062

				
	 By:
	 	 /s/ Mitchell Kopin

	 	 	  	 
	 Name:
	 	 Mitchell Kopin
	 	 	  	 
	 Title:
	 	 President– Downsview Capital, the General Partner
	  	 
		
	 Subscription Amount: $700,000
	  	 
	 	 	 	 	----	  	 
	 Crescent International, Ltd.

	 	Address for Notice:	  	 c/o GreenLight (Switzerland) S.A

	 [NAME OF PURCHASER]
	 	 	  	 84, Av. Louis Casai

	 	 	 	 	 	  	 P.O Box 161

	 	 	 	 	 	  	 CH 1216 Cointrin, Geneva

	 	 	 	 	 	  	 Switzerland

				
	 By:
	 	 /s/ Mel Craw Maxi Brezzi
	 	 	  	 
	 Name:
	 	 Mel Craw Maxi Brezzi
	 	 	  	 
	 Title:
	 	 Authorized Signatory
	 	 	  	 
		
	 Subscription Amount: $495,000
	  	 
	 	 	 	 	----	  	 
			
	 Elliott Associates, L.P.

	 	Address for Notice:	  	 712 5th Ave

	 [NAME OF PURCHASER]
	 	 	  	 New York, NY 10019

			
	 By:
	 	 Elliot Capital Advisors, L.P., as general partner
	  	 
	 By:
	 	 Braxton Associates, as general partner
	  	 
	 By:
	 	 /s/ Elliott Greenberg

	 	 	  	 
	 Name:
	 	 /s/ Elliot Greenberg
	 	 	  	 
	 Title:
	 	 Vice-President
	 	 	  	 
		
	 Subscription Amount: $360,000
	  	 
	 	 	 	 	----	  	 
	 Elliott International, L.P.

	 	Address for Notice:	  	 c/o Elliott Mgmt. Corp

	 [NAME OF PURCHASER]
	 	 	  	 712 5th Ave

	 	 	 	  	 New York, NY 10019

			
	 By:
	 	 Elliot International Capital Advisors Inc. as attorney-in-fact
	  	 
	 By:
	 	 /s/ Elliot Greenberg

	 	 	  	 
	 Name:
	 	 Elliot Greenberg
	 	 	  	 
	 Title:
	 	 Vice-President
	 	 	  	 
		
	 Subscription Amount: $540,000
	  	 
	 	 	 	 	----	  	 
			
	 Gryphon Master Fund, LP

	 	Address for Notice:	  	 500 Crescent Ct. #270

	 [NAME OF PURCHASER]
	 	 	  	 Dallas, TX 75201

	 	 	 	 	 	  	 Att: Ryan Wolters

				
	 By:
	 	 /s/ E.B. Lyon IV

	 	 	  	 
	 Name:
	 	 E.B. Lyon IV
	 	 	  	 
	 Title:
	 	 Authorized Agent
	 	 	  	 
		
	 Subscription Amount: $500,000.40
	  	 
				
	 	 	 	 	-----	  	 

  

							
	 Kingsbridge Capital Ltd.

	 	Address for Notice:	 	C/O Kingsbridge Corporate Services
	[NAME OF PURCHASER]	 	 	 	Main Street Kilcullen
	 	 	 	 	 	 	Co Kildare Ireland
	By:	 	 /s/ V. O’Donoghue

	 	 	 	 
	Name:	 	V.O’Donoghue	 	 	 	 
	Title:	 	Director	 	 	 	 
		
	Subscription Amount: $315,000	 	 
				
	 	 	 	 	----	 	 
			
	 Midsummer Investment, Ltd.

	 	Address for Notice:	 	c/o Midsummer Capital LLC
	[NAME OF PURCHASER]	 	 	 	485 Madison Avenue 23rd Floor
	 	 	 	 	 	 	New York, NY 10022
	By:	 	 /s/ Michel Amsalem

	 	 	 	 
	Name:	 	Michel Amsalem	 	 	 	 
	Title:	 	Director	 	 	 	 
		
	Subscription Amount: $500,000.00	 	 
				
	 	 	 	 	----	 	 
			
	 Portside Growth and Opportunity Fund

	 	Address for Notice:	 	c/o Ramius Capital Group, LLC
	[NAME OF PURCHASER]	 	 	 	666 Third Avenue, 26th Floor
	 	 	 	 	 	 	New York, NY 10017
	By:	 	 /s/ Jeff Solomon

	 	 	 	 
	Name:	 	Jeff Solomon	 	 	 	 
	Title:	 	Authorized Signatory	 	 	 	 
			
	Subscription Amount: $250,000	 	 	 	 
			
	 	 	----	 	 
			
	 SF Capital Partners Ltd

	 	Address for Notice:	 	c/o Staro Asset Management, LLC
	[NAME OF PURCHASER]	 	 	 	3600 South Lake Drive
	 	 	 	 	 	 	St. Francis, Wisconsin 53235
	By:	 	 /s/ Brian H. Davidson

	 	 	 	 
	Name:	 	Brian H. Davidson	 	 	 	 
	Title:	 	Authorized Signatory	 	 	 	 
		
	Subscription Amount: 805,556 shares at $0.90 per share = $725,000.40	 	 
				
	 	 	 	 	---	 	 
			
	 Spectra Capital Management, LLC

	 	Address for Notice:	 	c/o Spectra Financial Group LLC
	[NAME OF PURCHASER]	 	 	 	120 Broadway St. Suite 1050
	 	 	 	 	 	 	New York, NY 10271
	By:	 	 /s/ Gregory Porges

	 	 	 	 
	Name:	 	Gregory Porges	 	 	 	 
	Title:	 	Investment Manager	 	 	 	 
		
	Subscription Amount: $300,000	 	 
				
	 	 	 	 	---	 	 
			
	 Truk International Fund, LP

	 	Address for Notice:	 	45 Rockefeller Plaza
	[NAME OF PURCHASER]	 	 	 	Suite 2000
	 	 	 	 	 	 	New York, NY 10111
	By:	 	 /s/ Michael E. Fein

	 	 	 	 
	Name:	 	Michael E. Fein	 	 	 	 
	Title:	 	Principal, Atoll Asset Management, LLC, the Managing Member of Truk Opportunity Fund, LLC
		
	Subscription Amount: $27,000	 	 
				
	 	 	 	 	----	 	 

  

 22 

							
	 Truk Opportunity Fund, LLC

	 	Address for Notice:	 	45 Rockefeller Plaza
	[NAME OF PURCHASER]	 	 	 	Suite 2000
	 	 	 	 	 	 	New York, NY 10111
	By:	 	 /s/ Michael E. Fein

	 	 	 	 
	Name:	 	Michael E. Fein	 	 	 	 
	Title:	 	Principal, Atoll Asset Management, LLC, the Managing Member of Truk Opportunity Fund, LLC	 	 	 	 
		
	Subscription Amount: $135,000	 	 
				
	 	 	 	 	----	 	 
			
	 UBS O’Connor LLC f/b/o O’Connor PIPES
Corporate Strategies Master Ltd.

	 	Address for Notice:	 	One North Wacker Drive 32nd Floor
	[NAME OF PURCHASER]	 	 	 	 Chicago, IL 60606
  

				
	By:	 	 /s/ George Lacosto

	 	 	 	 
	Name:	 	George Lacosto	 	 	 	 
	Title:	 	 	 	 	 	 
		
	Subscription Amount: $252,000

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