Document:

EX-10.1

INDEMNIFICATION AGREEMENT

THIS AGREEMENT is made as of the 6th day of October, 2006, by and between Ryder
System, Inc., a Florida corporation (the “Corporation”), and the undersigned Director of the
Corporation (“Indemnitee”).

WHEREAS, it is essential to the Corporation to retain and attract as directors the most
capable persons available; and

WHEREAS, through its Restated Articles of Incorporation and By-laws it is the express policy
of the Corporation to indemnify its Directors so as to provide them with the maximum possible
protection permitted by law; and

WHEREAS, the Board of Directors has concluded that it is in the best interests of the
Corporation’s shareholders for the Corporation to contractually reaffirm the Shareholders’
expressed policy to indemnify its Directors and to establish procedures and presumptions with
respect thereto to make the process of indemnification more certain; and

WHEREAS, Florida Statutes, Section 607.0850, empowers corporations to indemnify, among others,
any person serving as a director of the Corporation, and such Section 607.0850 specifies that the
indemnification set forth therein shall not be deemed exclusive of any other rights to which those
seeking indemnification may be entitled under any bylaw, agreement, vote of shareholders or
Disinterested Directors, or otherwise; and

WHEREAS, the Corporation desires to have Indemnitee serve or continue to serve as a director
of the Corporation or of any other corporation, subsidiary, partnership, joint venture, or trust or
other enterprise of which Indemnitee has been or is serving at the request, or to represent the
interests, of the Corporation (hereinafter referred to as “Affiliates(s) of the Corporation”) free
from undue concern for unpredictable, inappropriate or unreasonable claims for damages by reason of
Indemnitee’s Corporate Status (as defined below) and Indemnitee desires to serve or to continue to
serve (provided that Indemnitee is furnished the indemnity provided for hereinafter), in one or
more of such capacities;

NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the Corporation and
Indemnitee hereby agrees as follows:

1. Agreement to Serve. Indemnitee will serve and/or continue to serve, at the will of
the Corporation or under separate contract, if such exists, the Corporation or an Affiliate of the
Corporation as a director faithfully and to the best of Indemnitee’s ability so long as Indemnitee
is duly elected and qualified in accordance with the provisions of the By-laws or board resolutions
thereof or until such time as Indemnitee tenders his or her resignation.

2. Indemnification. To the fullest extent permitted by the laws of the State of
Florida, the Corporation shall indemnify and advance Expenses (as hereinafter defined) to
Indemnitee as provided in this Agreement.

3. Proceedings Other Than Proceedings by or in the Right of the Corporation.
Indemnitee shall be entitled to the rights of indemnification, set forth in Section 2 if, by reason
of Indemnitee’s Corporate Status (as hereinafter defined), Indemnitee is, or is threatened to be,
made a party to any threatened, pending, or completed Proceeding (as hereinafter defined), other
than a Proceeding by or in the right of the Corporation. Indemnitee shall be indemnified against
Expenses, liability and loss, including but not limited to, judgments, fines, and amounts paid in
settlement actually and reasonably incurred by him/her or on Indemnitee’s behalf in connection with
such Proceeding or any claim, issue or matter related thereto, if such Indemnification is permitted
by applicable law and Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
to be in, or not opposed to, the best interests of the Corporation, and, with respect to any
criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful.

4. Proceedings by or in the Right of the Corporation. Indemnitee shall be entitled to
the rights of indemnification set forth in Section 2 if, by reason of Indemnitee’s Corporate
Status, Indemnitee is, or is threatened to be, made a party to any threatened, pending or completed
Proceeding brought by or in the right of the Corporation to procure a judgment in its favor
provided such Proceeding was authorized by the Board of Directors of the Corporation. Indemnitee
shall be indemnified against Expenses actually and reasonably incurred by him/her or on
Indemnitee’s behalf in connection with such Proceeding if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best interests of the
Corporation. Notwithstanding the foregoing, no indemnification against such Expenses shall be made
in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been
adjudged to be liable, unless the court in which the Proceeding was brought, or any other court of
competent jurisdiction, shall determine upon application that, despite the adjudication of
liability but in view of all circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses which such court shall deem proper.

5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of Indemnitee’s Corporate Status, a party to and is successful, on the merits or otherwise, in any
Proceeding or any claim, issue or matter therein, Indemnitee shall be indemnified against all
Expenses actually incurred by him/her or on Indemnitee’s behalf in connection therewith. If
Indemnitee is not wholly successful in such a Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such a Proceeding, the
Corporation shall indemnify Indemnitee against all Expenses actually incurred by him/her or on
Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For
purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

6. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a
witness in any Proceeding, Indemnitee shall be indemnified against all Expenses incurred by him/her
or on Indemnitee’s behalf in connection therewith.

7. Advancement of Expenses. The Corporation shall pay all Expenses incurred by or on
behalf of Indemnitee in connection with any Proceeding within sixty (60) days after the receipt by
the Corporation of a statement or statements from Indemnitee requesting such payment from time to
time, whether prior to or after final disposition of such Proceeding. Such statement or statements
shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses if it shall
ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses.

8. Procedure for Determination of Entitlement to Indemnification.

(a) To obtain indemnification, Indemnitee shall submit to the Corporation a written request,
accompanied by such documentation and information as is reasonably available to Indemnitee and is
reasonably necessary to determine whether and to what extent Indemnitee is entitled to
indemnification (hereinafter a “Request for Indemnification”). The Secretary of the Corporation
shall, promptly upon receipt of such a Request for Indemnification, advise the Board of Directors
in writing that Indemnitee has requested indemnification.

(b) Upon submission of a Request for Indemnification, a determination, (unless otherwise
ordered by a court), with respect to Indemnitee’s entitlement thereto, shall be made as follows:
(1) by the Board of Directors of the Corporation by a majority vote of a quorum consisting of
directors who were not parties to such proceeding; (2) if such quorum is not obtainable or, even if
obtainable, by majority vote of a committee duly designated by the Board of Directors (in which
directors who are parties may participate) consisting solely of two or more directors not at the
time parties to the Proceeding; (3) by Independent Counsel: (i) selected by the Board of Directors
prescribed in paragraph (a) or the committee prescribed in paragraph (b); or (ii) if a quorum of
the Directors cannot be obtained for paragraph (a) and the committee cannot be designated under
paragraph (b), selected by majority vote of the full Board of Directors (in which directors who are
parties may participate); or (4) by the Shareholders by a majority vote of a quorum consisting of
Shareholders who were not parties to such proceeding, or if no such quorum is obtainable, by a
majority vote of Shareholders who were not parties to such proceeding.

(c) If a determination is to be made by Independent Counsel, the Corporation shall pay all
fees and expenses of Independent Counsel in making such determination.

9. Presumptions and Effect of Certain Proceedings.

(a) When making a determination with respect to entitlement to indemnification, the person,
persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification if Indemnitee has submitted a Request for Indemnification in accordance with
Section 8(a) and the Corporation shall have the burden of proof to overcome that presumption.

(b) If the person, persons or entity empowered or selected under Section 8 to determine
whether Indemnitee is entitled to indemnification denies such request, in whole or in part, or
shall not have made such determination within sixty (60) days after receipt by the Corporation of
the request therefor, the Indemnittee may seek to establish any rights to indemnification granted
by Section 2 of this Agreement in any court of competent jurisdiction. The Indemnittee’s expenses
(including attorneys’ fees) incurred in connection with successfully establishing Indemnittee’s
right to indemnification, in whole or in part, in any such Proceeding or otherwise shall also be
indemnified by the Corporation.

(c) The termination of any Proceeding or of any claim, issue or matter related thereto by
judgment, order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement or by law) of
itself adversely affect the right of Indemnitee to indemnification or create a presumption that
Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in
or not opposed to the best interest of the Corporation or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful. In
addition, neither the failure of the Independent Counsel to have made a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual
determination by the Independent Counsel that the Indemnitee has not met such standard of conduct
or did not have such belief, prior to the commencement of proceedings by Indemnitee to secure an
arbitral or judicial determination that Indemnitee should be indemnified under applicable law shall
be a defense to Indemnitee’s claim or create a presumption that Indemnitee has not met any
particular standard of conduct or did not have any particular belief.

10. Exceptions. Any other provision herein to the contrary notwithstanding, the
Corporation shall not be obligated pursuant to the terms of this Agreement:

(a) Excluded Action or Omissions. To indemnify Indemnitee under circumstances that
would render such indemnification unlawful under Florida law.

(b) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to a Proceeding (or part thereof) initiated by Indemnitee, except with respect to:
(1) a Proceeding brought to establish or enforce a right to indemnification (which shall be
governed by the provisions of Section 9(b) of this Agreement); or (2) a Proceeding (or part
thereof) of which the Indemnitee has provided notice to the Board of Directors of Corporation of
his intent to commence such Proceeding and for which the Board of Directors has not denied
authorization to Indemnitee to commence such Proceeding (or any part thereof) within sixty (60)
days of its receipt of such notice, and then, Indemnitee shall be entitled to indemnification and
the advancement of Expenses for such Proceeding initiated by Indemnitee only upon such terms and
conditions as the Board of Directors may deem appropriate.

(c) Claims Under Section 16(b). To indemnify Indemnitee for Expenses and payment of
profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute as
evidenced by a judgment or ruling in any judicial, administrative or alternative dispute resolution
proceeding.

11. Non-Exclusivity; Survival of Rights; Insurance.

(a) The rights of indemnification and to receive advancement of Expenses as described by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Restated Articles of Incorporation, the By-Laws, any agreement,
a vote of shareholders, a resolution of Disinterested Directors or otherwise. No amendment,
alteration or repeal of the Restated Articles of Incorporation or the By-Laws or of any provision
hereof shall be effective as to Indemnitee with respect to any action or omission by such
Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. To the
extent that a change in the laws of the State of Florida (whether by statute or judicial action)
permits greater indemnification by agreement than would be afforded currently under the
Corporation’s Restated Articles of Incorporation, By-Laws and this Agreement, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded
by such change. The provisions of this Agreement shall continue as to an Indemnitee whose
Corporate Status has ceased and shall inure to the benefit of Indemnitee’s heirs, executors and
administrators.

(b) The Corporation shall maintain directors’ and officers’ liability insurance, covering
Indemnitee, with commercially reasonable coverage terms and limits for so long as Indemnitee serves
as a director of the Corporation or an Affiliate of the Corporation, provided and to the extent
that such insurance is available on a commercially reasonable basis. However, the Corporation
agrees that the provisions hereof shall remain in effect regardless of whether insurance coverage
is at any time obtained or retained by the Corporation; except that any payments made under an
insurance policy shall reduce the obligations of the Company hereunder.

12. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement shall not be in any way be affected or
impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement shall be
construed so as to give effect to the intent manifested by the provision held invalid, illegal or
unenforceable.

13. Definitions. For purposes of this Agreement:

(a) “Corporate Status” means the status of a person who is or was a director of the
Corporation or of any other corporation, partnership, joint venture, trust, employee benefit plan
or other enterprise which such person is or was serving at the request of the Corporation. Any
election or appointment of an Indemnitee as a director of the Corporation or of any corporation,
partnership or joint venture which is a subsidiary or affiliate of the Corporation, or of a trust
or employee benefit plan of the Corporation or any such subsidiary or affiliate, shall conclusively
evidence that such Indemnitee’s service in such capacity was at the request of the Corporation.

(b) “Disinterested Director” means a director of the Corporation who is not and was not a
party to the Proceeding in respect of which indemnification is sought by Indemnitee.

(c) “Expenses” means all attorneys’ fees, retainers, court costs, transcript costs, fees of
experts, witness fees, travel charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

(d) “Indemnitee” means any person who is, or is threatened to be made, a witness in or a party
to any Proceeding as described in Sections 3, 4, 5 or 6 by reason of Indemnitee’s Corporate Status.

(e) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent: (i) the Corporation or Indemnitee in any matter (other than with respect to the
rights of Indemnitee under this Agreement or other indemnities under similar indemnity agreements);
or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Corporation or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.

(f) “Proceeding” means any action, suit, indictment, information, arbitration, alternate
dispute resolution mechanism, inquiry, investigation, congressional, regulatory or administrative
hearing or any other proceeding whether civil, criminal, regulatory, administrative or
investigative, except one initiated by an Indemnitee unless such Proceeding was authorized by the
Board of Directors or Indemnitee is enforcing Indemnitee’s rights to indemnification and/or
advancement of Expenses. For purposes of this definition, a counterclaim, cross claim or third
party claim in a Proceeding shall be considered a separate and distinct Proceeding.

14. Notification and Defense of Claim.

(a) Indemnitee shall give the Corporation notice in writing as soon as reasonably practicable
of any claim made against him/her for which indemnity will or could be sought under this Agreement.
In addition, Indemnitee shall, at the Corporations’ expense give the Corporation such information
and cooperation as it may reasonable require and as shall be within Indemnitee’s power. Notice to
the Corporation shall be directed to Ryder System, Inc., 11690 NW 105th Street, Miami, Florida FL
33178, Attention: General Counsel (or such other address as the Corporation shall designate in
writing to Indemnitee). Notices to Indemnitee shall be directed to the address set forth below the
signature of the Indemnitee on this Agreement (or such other address as the Indemnitee shall
designate in writing to the Corporation). Notices shall be deemed received three (3) days after
the date postmarked, if sent by prepaid certified mail, return receipt requested, properly
addressed.

(b) In the event the Corporation shall be obligated to pay the Expenses of Indemnitee with
respect to a Proceeding, as provided in this Agreement, the Corporation, if appropriate, shall be
entitled to assume the defense of such Proceeding, with counsel reasonably acceptable to
Indemnitee, upon the delivery to Indemnitee of written notice of its election to do so. After
delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel
by the Corporation, the Corporation will not be liable to Indemnitee under this Agreement for any
fees of counsel subsequently incurred by Indemnitee with respect to the same Proceeding, provided
that Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding at
Indemnitee’s own expense. Notwithstanding the above provisions of this Section 14(b), the
Corporation shall not be entitled to assume the defense of a Proceeding with counsel of its
choosing, and all Expenses incurred by Indemnitee in defending such a Proceeding with Indemnitee’s
own counsel shall be the obligation of the Corporation, if (i) the employment of Indemnitee’s own
counsel has been previously authorized in writing by the Corporation; (ii) counsel to the
Corporation or Indemnitee shall have reasonably concluded that there may be a conflict of interest
or position, or reasonably believes that a conflict is likely to arise, on any significant issue
between the Corporation and Indemnitee in the conduct of any such defense; or (iii) the Corporation
shall not, in fact, have employed counsel to assume the defense of such Proceeding, except as
otherwise expressly provided by this Agreement. The Corporation shall not be entitled, without the
consent of Indemnitee, to assume the defense of any Proceeding brought by or in the right of the
Corporation or as to which counsel for the Corporation or Indemnitee shall have reasonably made the
conclusion provided for in clause (ii) above.

15. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute one and the same original.

16. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida.

17. Successors and Assigns. This Agreement shall be binding upon the Corporation and
its successors and assigns.

18. Amendment. This Agreement may be amended or modified only by a writing executed
and signed by the parties hereto.

* * *

Signature page follows.

1

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
signed as of the day and year first above written.

	 
	 

	RYDER SYSTEM, INC.

	 

	By:

	 

	Name: Robert D. Fatovic

Title: Executive Vice President, General

Counsel and Corporate Secretary

	 

	INDEMNITEE

     

Name:

	Address:

	 

2EX-10.1

Securities Purchase Agreement, dated as of October 5,
2006 (this “Agreement”), among Memory Pharmaceuticals
Corp., a Delaware corporation (the “Company”), and the
Purchasers listed on Exhibits A-1 and A-2 hereto, together with
their permitted transferees (each, a “Purchaser” and collectively,
the “Purchasers”).

Introduction

The Company and the Purchasers are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by Section 4(2) of the Securities Act.

The Purchasers desire to purchase and the Company desires to sell, upon the terms and
conditions stated in this Agreement, up to a maximum of $32,220,000 of the Company’s common stock,
par value $.001 per share (the “Common Stock”) and warrants to purchase Common Stock of the
Company; provided, however, that, the purchase by any Purchaser and the sale by the Company to such
Purchaser of any shares of Common Stock and Warrants, to (and only to) the extent that such
Purchaser and its Affiliates would thereafter own a number of shares of Common Stock (assuming the
exercise in full by such Purchaser of such securities of the Company that are convertible into or
exercisable for shares of Common Stock) in excess of 19.99% of the then outstanding shares of
Common Stock (the “Excess Securities”), shall be subject to the Requisite Approval.

As set forth herein, the Company has agreed to provide certain registration rights with
respect to the Shares and the Warrant Shares under the Securities Act and applicable state
securities laws.

Contemporaneously with the execution and delivery of this Agreement, the Principal Investors,
Anthony B. Evnin, Venrock Associates and certain related funds (“Venrock”) and Oxford BioScience
Partners II (Annex) L.P. and certain related funds (“Oxford”) are entering into a voting agreement
pursuant to which Mr. Evnin, Venrock and Oxford have each agreed to vote their respective shares of
Common Stock and the shares of any Affiliates in favor of the resolutions approving the Company’s
issuance of the Excess Securities.

The capitalized terms used herein and not otherwise defined have the meanings given them in
Article 7.

In consideration of the premises and the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company
and the Purchasers (severally and not jointly) hereby agree as follows:

ARTICLE I

Purchase and Sale of Securities

Section 1.1 Purchase and Sale of Securities. At the First Closing, the Company will
issue and sell to each Purchaser and each Purchaser will, severally and not jointly, purchase from
the Company, the number of shares of Common Stock and the warrants to purchase the number of shares
of Common Stock set forth opposite such Purchaser’s name on Exhibit A-1. At the Second Closing,
the Company will issue and sell to each Purchaser listed on Exhibit A-2, and each such Purchaser
will, severally and not jointly, purchase from the Company, the number of shares of Common Stock
set forth opposite such Purchaser’s name on Exhibit A-2 hereto. The aggregate number of shares of
Common Stock and the aggregate number of warrants being purchased at the Closings are referred to
as the “Shares” and the “Warrants,” respectively, and the Shares and the Warrants are collectively
referred to as the “Securities.” The purchase price for each Share shall be $1.11, which is the
closing bid price of the Common Stock as reported on Nasdaq (symbol “MEMY”), as the 4:00 p.m., EDT,
closing bid price on October 4, 2006 (the “Stock Purchase Price”). The purchase price for each
Warrant shall be $0.125 per each underlying Warrant Share (the “Warrant Purchase Price”; and
together with the Stock Purchase Price, the “Purchase Price”). The Warrants shall be exercisable
at an exercise price per Share equal to $1.33, which represents 120% of the Stock Purchase Price
and shall be substantially in the form attached as Exhibit B hereto.

Section 1.2 Payment. At the First Closing, each Purchaser will pay the aggregate
Purchase Price set forth opposite its name on Exhibit A-1 hereto by wire transfer of immediately
available funds in accordance with wire instructions provided by the Company to the Purchasers
prior to the First Closing Date. At the Second Closing, each Purchaser listed on Exhibit A-2 will
pay the aggregate Purchase Price set forth opposite its name on Exhibit A-2 by wire transfer of
immediately available funds in accordance with such wire instructions. At each Closing, the
Company will instruct its transfer agent to credit to each Purchaser purchasing Securities at such
Closing the number of Shares so purchased (and will deliver stock certificates to such Purchasers
representing the Shares purchased) and will deliver the Warrants purchased at such Closing against
delivery of the aggregate Purchase Price for such Shares and Warrants on the applicable Closing
Date.

Section 1.3 Closing Date. The closing (the “First Closing”) of the sale of the
Securities to the Purchasers listed on Exhibit A-1 will take place on or about October 16, 2006
(the “First Closing Date”). The closing of the Securities to the Purchasers listed on Exhibit A-2
(the “Second Closing”; each of the First Closing and the Second Closing being a “Closing” and
together the “Closings”) will take place on the date that is one business day following the
satisfaction or waiver of each of the conditions to the Second Closing set forth in Sections 5.1
and 5.3 (the “Second Closing Date”); provided, however, that if the Nasdaq Approval is received on
or prior to the First Closing Date, then the transactions contemplated to occur at the Second
Closing shall occur at the First Closing and all references to the “Second Closing” and the “Second
Closing Date” herein shall refer to the First Closing and the First Closing Date, respectively.
Each Closing will be held at the offices of Covington & Burling, 1330 Avenue of the Americas, New
York, New York 10019. The date and place of each Closing as set forth herein may be changed by
agreement of the Company and the Purchasers under this Agreement of 60% in interest of the
Securities to be purchased at such Closing.

Section 1.4 Adjustments. The number of Shares to be purchased by the Purchasers at
the First Closing and Second Closing, the Stock Purchase Price and the per share exercise price and
number of Warrant Shares shall be proportionately adjusted for any subdivision or combination of
Common Stock (by stock split, reverse stock split, dividend, reorganization, recapitalization or
otherwise).

ARTICLE II

Representations And Warranties Of The Company

The Company hereby represents and warrants to the Purchasers that:

Section 2.1 Organization and Qualification. The Company is duly incorporated, validly
existing and in good standing under the laws of the State of Delaware, with corporate power and
authority to conduct its business as currently conducted as disclosed in the SEC Documents. The
Company is duly qualified to do business and is in good standing in every jurisdiction in which the
nature of the business conducted by it 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
reasonably be expected to have a Material Adverse Effect.

Section 2.2 Authorization; Enforcement. The Company has all requisite corporate power
and authority to enter into and to perform its obligations under this Agreement and the Warrants,
to consummate the transactions contemplated hereby and thereby and to issue the Securities in
accordance with the terms hereof and to issue the Warrant Shares in accordance with the terms of
the Warrants. The execution, delivery and performance of this Agreement and the Warrants by the
Company and the consummation by it of the transactions contemplated hereby (including the issuance
of the Securities) and thereby have been duly authorized by the Company’s Board of Directors and no
further consent or authorization of the Company, its Board of Directors, or its stockholders (other
than the Stockholder Approval if prior Nasdaq Approval is not obtained) is required. This
Agreement has been duly executed by the Company and constitutes a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or moratorium
or similar laws affecting creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity and except as rights to indemnity and
contribution may be limited by state or federal securities laws or public policy underlying such
laws. At the First Closing, the Warrants will be duly executed by the Company and constitute a
legal, valid and binding obligation of the Company enforceable against the Company in accordance
with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, or moratorium or similar laws affecting creditors’ and contracting parties’ rights
generally and except as enforceability may be subject to general principles of equity and except as
rights to indemnity and contribution may be limited by state or federal securities laws or public
policy underlying such laws.

Section 2.3 Capitalization. The authorized capital stock of the Company, as of
September 30, 2006, consisted of 100,000,000 shares of Common Stock, of which 37,923,706 shares
were issued and outstanding and 5,000,000 shares of blank check Preferred Stock, $0.001 par value
per share, none of which have been designated. All of the issued and outstanding shares of Common
Stock have been duly authorized, validly issued, fully paid, and nonassessable. Options and
warrants to purchase an aggregate of 11,170,391 shares of Common Stock were outstanding as of
September 30, 2006. Except as disclosed in or contemplated by the SEC Documents, the Company does
not have outstanding any options to purchase, or any preemptive rights or other rights to subscribe
for or to purchase, any securities or obligations convertible into and exercisable and exchangeable
for, or any contracts or commitments to issue or sell, shares of its capital stock or any such
options, rights, convertible securities or obligations other than options granted under the
Company’s stock option plans and its employee stock purchase plan. The Company’s Second Amended
and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), as in
effect on the date hereof, and the Company’s Amended and Restated Bylaws (the “Bylaws”) as in
effect on the date hereof, are each filed as exhibits to the SEC Documents. Except as set forth in
the SEC Documents or as contemplated by this Agreement, there are no stockholder agreements, voting
agreements or other similar agreements with respect to the Common Stock to which the Company is a
party.

Section 2.4 Issuance of Securities. The Shares and all of the shares of Common Stock
issuable upon exercise of the Warrants (the “Warrant Shares”) are duly authorized and, upon
issuance in accordance with the terms of this Agreement (and in case of the Warrant Shares, the
Warrants), will be validly issued, fully paid and non-assessable and will not be subject to
preemptive rights or other similar rights of stockholders of the Company. Assuming the accuracy of
all representations and warranties of the Purchasers set out in Article 4, the offer and issuance
by the Company of the Shares, Warrants and Warrant Shares is exempt from registration under the
Securities Act and all applicable Blue Sky laws.

Section 2.5 No Conflicts; Government Consents and Permits. (a) The execution,
delivery and performance of this Agreement and the Warrants by the Company and the consummation by
the Company of the transactions contemplated hereby (including the issuance of the Securities) and
thereby will not (i) conflict with or result in a violation of any provision of its Certificate of
Incorporation or Bylaws, (ii) violate or conflict with, or result in a breach of any provision of,
or constitute a default under, or give to others any rights of consent, termination, amendment,
acceleration or cancellation of, any agreement, indenture, or instrument to which the Company is a
party, or (iii) except for the Stockholder Approval (if prior Nasdaq Approval is not obtained), the
registration of the Shares and Warrant Shares under the Securities Act pursuant to Section 6
hereof, any filings required to be made under federal or state securities laws, and any required
filings or notifications regarding the issuance or listing of additional shares with Nasdaq, result
in a violation of any law, rule, regulation, order, judgment or decree (including United States
federal and state securities laws and regulations and regulations of any self-regulatory
organizations to which the Company or its securities are subject) applicable to the Company, except
in the case of clauses (ii) and (iii) only, for such conflicts, breaches, defaults, and violations
as would not reasonably be expected to have a Material Adverse Effect.

(b) The Company is not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court or governmental agency or any regulatory or self regulatory
agency in order for it to execute, deliver or perform any of its obligations under this Agreement
and the Warrants in accordance with the terms hereof and thereof, or to issue and sell the
Securities in accordance with the terms hereof and the Warrant Shares in accordance with the terms
of the Warrants other than such as have been made or obtained, and except for the Stockholder
Approval (if prior Nasdaq Approval is not obtained), the registration of the Shares and Warrant
Shares under the Securities Act pursuant to Section 6 hereof, any filings required to be made under
federal or state securities laws, and any required filings or notifications regarding the issuance
or listing of additional shares with Nasdaq.

(c) The Company has all franchises, permits, licenses, and any similar authority necessary for
the conduct of its business as now being conducted by it, except for such franchise, permit,
license or similar authority, the lack of which would not reasonably be expected to have a Material
Adverse Effect. The Company has not received any written notice of any proceeding relating to
revocation or modification of any such franchise, permit, license, or similar authority except
where such revocation or modification would not reasonably be expected to have a Material Adverse
Effect.

Section 2.6 SEC Documents, Financial Statements. The Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed by it with the SEC
since April 5, 2004, pursuant to the reporting requirements of the Exchange Act (all of the
foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents (other than exhibits) incorporated by reference therein, being
hereinafter referred to herein as the “SEC Documents”). As of their respective dates, the SEC
Documents complied as to form in all material respects with the requirements of the Exchange Act or
the Securities Act, as the case may be, and the rules and regulations of the SEC promulgated
thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were
filed with the SEC, 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
have been prepared in accordance with accounting principles generally accepted in the United
States, consistently applied, during the periods involved (except (i) as may be otherwise indicated
in the Financial Statements or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes, may be condensed or summary statements or
may conform to the SEC’s rules and instructions for Reports on Form 10-Q) and fairly present in all
material respects the consolidated financial position of the Company as of the dates thereof and
the consolidated results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal and recurring year-end audit adjustments). All
material agreements that were required to be filed as exhibits to the SEC Documents under Item 601
of Regulation S-K (collectively, the “Material Agreements”) to which the Company is a party, or the
property or assets of the Company or are subject, have been filed as exhibits to the SEC Documents
and, except for this Agreement and the Warrants, the Company does not have any agreements,
contracts and commitments that are material to the business, financial condition, assets, prospects
or operations of the Company (“Other Material Contracts”). All Material Agreements and Other
Material Contracts are valid and enforceable against the Company in accordance with their
respective terms, except (i) as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or moratorium or similar laws affecting creditors’ rights generally, and (ii) as
enforceability may be subject to general principles of equity and except as rights to indemnity and
contribution may be limited by state or federal securities laws or public policy underlying such
laws. The Company is not in breach of or default under any of the Material Agreements or Other
Material Contracts, and to the Company’s knowledge, no other party to a Material Agreement or Other
Material Contract is in breach of or default under such Material Agreement or Other Material
Contracts, except in each case, for such breaches or defaults as would not reasonably be expected
to have a Material Adverse Effect. The Company has not received a notice of termination of any of
the Material Agreements.

Section 2.7 Absence of Litigation. As of the date hereof, there is no action, suit,
proceeding or investigation before or by any court, public board, government agency,
self-regulatory organization or body pending or, to the Company’s knowledge, threatened against the
Company that if determined adversely to the Company would reasonably be expected to have a Material
Adverse Effect. There has not been, and to the knowledge of the Company, there is not pending, any
investigation by the SEC involving the Company or any current or former director or officer of the
Company. The Company has not received any stop order or other order suspending the effectiveness
of any registration statement filed by the Company under the Exchange Act or the Securities Act
and, to the Company’s knowledge, the SEC has not issued any such order.

Section 2.8 Intellectual Property Rights. To the Company’s knowledge, the Company has
ownership of, or possesses licenses or sufficient rights to use all patents, patent applications,
patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service
marks, service names, trade names, copyrights, proprietary rights and processes necessary to enable
it to conduct its business as conducted as of the date hereof (the “Intellectual Property”). To
the Company’s knowledge, the Company has not infringed the intellectual property rights of third
parties and no third party, to the Company’s knowledge, is infringing the Intellectual Property, in
each case, which could reasonably be expected to result in a Material Adverse Effect. Except as
disclosed in the SEC Documents, there are no material options, licenses or agreements relating to
the Intellectual Property, nor is the Company bound by or a party to any material options, licenses
or agreements relating to the patents, patent applications, patent rights, inventions, know-how,
trade secrets, trademarks, trademark applications, service marks, service names, trade names,
copyrights, proprietary rights and processes of any other person or entity. As of the date hereof,
there is no material claim, action or proceeding pending or, to the Company’s knowledge,
threatened, that challenges the right of the Company with respect to any Intellectual Property.
All current and former employees of the Company have signed agreements assigning to the Company
all intellectual property rights arising in connection with such person’s employment with the
Company. All persons who have had access to Company trade secrets or confidential information have
signed a customary non-disclosure and non-use agreement not containing a “residuals” clause or
similar provision.

Section 2.9 Placement Agents. The Company has taken no action that would give rise to
any claim by any person for brokerage commissions, placement agent’s fees or similar payments
relating to this Agreement or the transactions contemplated hereby, except for dealings with the
Placement Agents, whose commissions and fees will be paid by the Company.

Section 2.10 Investment Company. The Company is not and, after giving effect to the
offering and sale of the Securities, will not be an “investment company” as such term is defined in
the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company shall
conduct its business in a manner so that it will not become subject to the Investment Company Act.

Section 2.11 No Material Adverse Change. Since September 30, 2006, except as
described or referred to in the SEC Documents and except for cash expenditures in the ordinary
course of business, there has not been a Material Adverse Effect. Since September 30, 2006, (i)
there has not been any dividend or distribution of any kind declared, set aside for payment, paid
or made by the Company on any class of capital stock, (ii) the Company has not sustained any
material loss or interference with the Company’s business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any
action, order or decree of any court or arbitrator or governmental or regulatory authority, and
(iii) the Company has not incurred any liabilities, contingent or otherwise except in the ordinary
course of business.

Section 2.12 Nasdaq Global Market. The issued and outstanding shares of Common Stock
are listed on Nasdaq, and, to the Company’s knowledge, there are no proceedings to revoke or
suspend such listing. The Company is in compliance in all material respects with the requirements
of Nasdaq for continued listing of the Common Stock thereon and any other Nasdaq listing and
maintenance requirements.

Section 2.13 Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company
acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s
length purchaser with respect to this Agreement and the Warrants and the transactions contemplated
hereby and thereby The Company further acknowledges that no Purchaser is acting as a financial
advisor or fiduciary of the Company (or in any similar capacity with respect to the Company), other
than as an officer or director of the Company, with respect to this Agreement and the Warrants and
the transactions contemplated hereby and thereby and any advice given by any Purchaser or any of
their respective representatives or agents to the Company in connection with this Agreement and the
transactions contemplated hereby and thereby is merely incidental to such Purchaser’s purchase of
the Securities. The Company further represents to each Purchaser that the Company’s decision to
enter into this Agreement has been based upon the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

Section 2.14 Accountants. KPMG LLP, who will express their opinion with respect to
the audited financial statements and schedules to be included as a part of the Registration
Statements prior to the filing of such Registration Statements, are independent accountants as
required by the Securities Act.

Section 2.15 Insurance. The Company is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as the Company believes are
prudent and customary for a company (i) in the businesses and location in which the Company is
engaged, (ii) with the resources of the Company, and (iii) at a similar stage of development as the
Company. The Company has not received any written notice that the Company will not be able to
renew its existing insurance coverage as and when such coverage expires. The Company believes it
will be able to obtain similar coverage at reasonable cost from similar insurers as may be
necessary to continue its business.

Section 2.16 Foreign Corrupt Practices. Since January 1, 2004, neither the Company,
nor to the Company’s knowledge, any director, officer, agent, employee or other person acting on
behalf of the Company has, in the course of its actions for, or on behalf of, the Company (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or
domestic government official or employee from corporate funds; (iii) violated or is in violation of
in any material respect any provision of the U.S. Foreign Corrupt Practices Act of 1977, as
amended; or (iv) made or received any unlawful bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to or from any foreign or domestic government official or employee.

Section 2.17 Private Placement. Neither the Company 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 any circumstances that would require registration of the
Securities under the Securities Act, including, without limitation, integration of the offering the
Shares or Warrant Shares with any prior offering under the Securities Act.

Section 2.18 No Registration Rights. No person has the right to (i) prohibit the
Company from filing a Registration Statement or fully performing its obligations under this
Agreement with respect thereto or (ii) other than as disclosed in the SEC Documents, require the
Company to register any securities for sale under the Securities Act by reason of the filing of a
Registration Statement. Except as disclosed in the SEC Documents, no other registration rights
exist with respect to the issuance of securities by the Company under the Securities Act that have
not been satisfied. The granting and performance of the registration rights under this Agreement
will not violate or conflict with, or result in a breach of any provision of, or constitute a
default under, any agreement, indenture or instrument to which the Company is a party.

Section 2.19 Taxes. The Company has filed (or has obtained an extension of time
within which to file) all necessary federal, state and foreign income and franchise tax returns and
has paid all taxes shown as due on such tax returns, except where the failure to so file or the
failure to so pay would not reasonably be expected to have a Material Adverse Effect. The Company
has complied in all material respects with all applicable legal requirements relating to the
payment and withholding of taxes and, within the time and in the manner prescribed by law, has
withheld from wages, fees and other payments to its employees and paid over to the proper
governmental or regulatory authorities all amounts required.

Section 2.20 Real and Personal Property. The Company has good and marketable title
to, or has valid rights to lease or otherwise use, all items of real and personal property that are
material to the business of the Company free and clear of all liens, encumbrances, claims and
defects and imperfections of title except those that (i) do not materially interfere with the use
of such property by the Company or (ii) would not reasonably be expected to have a Material Adverse
Effect.

Section 2.21 Application of Takeover Protections. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby will not impose any
restriction on any Purchaser, or create in any party (including any current stockholder of the
Company) any rights, under any share acquisition, business combination, poison pill (including any
distribution under a rights agreement), or other similar anti-takeover provisions under the
Company’s charter documents or the laws of its state of incorporation.

Section 2.22 No Manipulation of Stock. The Company has not taken, nor will it take,
directly or indirectly any action designed to stabilize or manipulate of the price of the Common
Stock or any security of the Company to facilitate the sale or resale of any of the Shares or
Warrant Shares.

Section 2.23 Related Party Transactions. Except with respect to the transactions (i)
that are not required to be disclosed and (ii) contemplated hereby to the extent any director or an
affiliate of any director purchases Securities hereunder, all transactions that have occurred
between or among the Company, on the one hand, and any of its officers or directors, or any
affiliate or affiliates of any such officer or director, on the other hand, prior to the date
hereof have been disclosed in the SEC Documents.

Section 2.24 Sarbanes-Oxley Act. The Company is in compliance with any and all
applicable requirements of the Sarbanes-Oxley Act of 2002 (as amended) that are effective as of the
date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder
that are effective as of the date hereof, except where such noncompliance would not have a Material
Adverse Effect.

Section 2.25 Employee Benefit Plans; Employee Matters. The consummation of the
transactions contemplated by this Agreement and the Warrants will not (i) entitle any current or
former employee or other service provider of the Company to severance benefits or any other
payment, compensation or benefit (including forgiveness of indebtedness), except as expressly
provided by this Agreement, or (ii) accelerate the time of payment or vesting, or increase the
amount of compensation or benefit due any such employee or service provider, alone or in
conjunction with any other possible event (including termination of employment). The Company is in
compliance in all material respects with all currently applicable laws and regulations respecting
employment, discrimination in employment, terms and conditions of employment, wages, hours and
occupational safety and health and employment practices, and is not engaged in any unfair labor
practice. To the Company’s knowledge, no employees of the Company are in violation of any term of
any material employment contract, patent disclosure agreement, noncompetition agreement, or any
restrictive covenant to a former employer relating to the right of any such employee to be employed
by the Company because of the nature of the business conducted or presently proposed to be
conducted by the Company or to the use of trade secrets or proprietary information of others. No
key employee of the Company has given written notice to the Company, and the Company is not
otherwise aware, that any such key employee intends to terminate his or her employment with the
Company.

Section 2.26 Regulatory Compliance. To the Company’s knowledge, and based on its
reasonable and good faith understanding of the requirements of the Federal Food, Drug and Cosmetic
Act and the regulations of the U.S. Food and Drug Administration thereunder (“FDCA”), the Company
has with respect to the research and/or development of the products of Company, including without
limitation clinical trials with respect to such products (a “Life Science Product”) complied in all
material respects with all applicable requirements of the FDCA. The Company has not received any
written notification from the U.S. Food and Drug Administration or any other federal, state or
foreign governmental entity alleging any violation by the Company of any law applicable to a Life
Science Product.

Section 2.27 Environmental Laws. The Company is not in violation of any applicable
statute, law or regulation relating to the environment or occupational health and safety, violation
of which would have a Material Adverse Effect. None of the premises or any properties owned,
occupied or leased by the Company have been used by the Company, or to the Company’s knowledge, by
any other Person to manufacture, treat, store, or dispose of any substance that have been
designated to be a “hazardous substance” under applicable environmental laws in violation of any
applicable environmental laws, violation of which would have a Material Adverse Effect.

Section 2.28 Board Approval and Recommendation to Stockholders. Prior to the date of
this Agreement, the Company’s Board of Directors, at a meeting duly called and held, has (a)
determined that the Offering is fair to, advisable and in the best interests of the Company and the
stockholders of the Company, and (b) has adopted resolutions recommending that the stockholders of
the Company vote to approve the Company’s issuance of the Excess Securities.

ARTICLE III

Purchaser’s Representations And Warranties

Each Purchaser represents and warrants to the Company, severally and not jointly, with respect
to itself and its purchase hereunder, that:

Section 3.1 Investment Purpose. The Purchaser is purchasing the Securities for its
own account and not with a present view toward the public sale or distribution thereof and has no
intention of selling or distributing any of such Securities or any arrangement or understanding
with any other persons regarding the sale or distribution of such Securities except in accordance
with the provisions of Article 6 and except as would not result in a violation of the Securities
Act. The Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of
the Securities except in accordance with the provisions of Article 6 or pursuant to and in
accordance with the Securities Act.

Section 3.2 Questionnaires. The Stock Certificate and Warrant Questionnaire and the
Registration Statement Questionnaire submitted by Purchaser to the Company in connection with its
purchase of the Securities was accurate and correct when delivered, is accurate and correct as of
the date hereof and will be accurate and correct on each Closing Date on which such Purchaser is
Purchasing any Securities.

Section 3.3 Reliance on Exemptions. The Purchaser understands that the Securities are
being offered and sold to it in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in
order to determine the availability of such exemptions and the eligibility of the Purchaser to
acquire the Securities.

Section 3.4 Information. The Purchaser has been furnished with all relevant materials
relating to the business, finances and operations of the Company necessary to make an investment
decision, and materials relating to the offer and sale of the Securities, that have been requested
by the Purchaser, including, without limitation, the Company’s SEC Documents, and the Purchaser has
had the opportunity to review the SEC Documents. The Purchaser has been afforded the opportunity
to ask questions of the Company. Neither such inquiries nor any other investigation conducted by
or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such
Purchaser’s right to rely on the truth, accuracy and completeness of the SEC Documents and the
Company’s representations and warranties contained herein.

Section 3.5 Acknowledgement of Risk. (a) The Purchaser acknowledges and understands
that its investment in the Securities involves a significant degree of risk, including, without
limitation, (i) the Company remains a development stage business with limited operating history and
requires substantial funds in addition to the proceeds from the sale of the Securities; (ii) an
investment in the Company is speculative, and only Purchasers who can afford the loss of their
entire investment should consider investing in the Company and the Securities; (iii) the Purchaser
may not be able to liquidate its investment; (iv) transferability of the Securities is extremely
limited; (v) in the event of a disposition of the Securities, the Purchaser could sustain the loss
of its entire investment; and (vi) the Company has not paid any dividends on its Common Stock since
inception and does not anticipate the payment of dividends in the foreseeable future. Such risks
are more fully set forth in the SEC Documents;

(b) The Purchaser is able to bear the economic risk of holding the Securities for an
indefinite period, and has knowledge and experience in financial and business matters such that it
is capable of evaluating the risks of the investment in the Securities; and

(c) The Purchaser has, in connection with the Purchaser’s decision to purchase Securities, not
relied upon any representations or other information (whether oral or written) other than as set
forth in the representations and warranties of the Company contained herein and the information
contained in the SEC Documents, and the Purchaser has, with respect to all matters relating to this
Agreement and the offer and sale of the Securities, relied solely upon the advice of such
Purchaser’s own counsel and has not relied upon or consulted any counsel to the Placement Agents or
counsel to the Company.

Section 3.6 Governmental Review. The Purchaser understands that no United States
federal or state agency or any other government or governmental agency has passed upon or made any
recommendation or endorsement of the Securities or an investment therein.

Section 3.7 Transfer or Resale. The Purchaser understands that:

(a) the Securities have not been and are not being registered under the Securities Act (other
than as contemplated in Article 6) or any applicable state securities laws and, consequently, the
Purchaser may have to bear the risk of owning the Securities for an indefinite period of time
because the Securities may not be transferred unless (i) the resale of the Securities is registered
pursuant to an effective registration statement under the Securities Act, as contemplated in
Article 6; (ii) the Purchaser has delivered to the Company an opinion of counsel (in form,
substance and scope reasonably satisfactory to the Company) to the effect that the Securities to be
sold or transferred may be sold or transferred pursuant to an exemption from such registration; or
(iii) the Securities are sold or transferred pursuant to Rule 144;

(b) any sale of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and, if Rule 144 is not applicable, any resale of the Securities under
circumstances in which the seller (or the person through whom the sale is made) may be deemed to be
an underwriter (as that term is defined in the Securities Act) may require compliance with some
other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and

(c) except as set forth in Article 6, neither the Company nor any other person is under any
obligation to register the resale of the Shares or the Warrant Shares under the Securities Act or
any state securities laws or to comply with the terms and conditions of any exemption thereunder.

Section 3.8 Legends. (a) The Purchaser understands the certificates representing the
Securities will bear a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS
OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT
THAT SUCH OPINION IS REQUIRED PURSUANT TO THAT CERTAIN SECURITIES PURCHASE AGREEMENT UNDER WHICH
THE SECURITIES WERE ISSUED.

(b) The Purchaser may request that the Company remove, and the Company agrees to authorize the
removal of any legend from the Shares and Warrant Shares (i) following any sale of the Shares or
Warrant Shares pursuant to an effective Registration Statement or Rule 144, or (ii) if such Shares
or Warrant Shares are eligible for sale under Rule 144(k). Following the time a legend is no longer
required for the Shares or Warrant Shares hereunder, the Company will, no later than five Business
Days following the delivery by a Purchaser to the Company or the Company’s transfer agent of a
legended certificate representing such securities, deliver or cause to be delivered to such
Purchaser or transferee a certificate representing such securities that is free from all
restrictive and other legends.

(c) Notwithstanding anything herein to the contrary, the Company acknowledges and agrees that
the Company will not require an opinion of counsel in connection with the transfer of any
Securities by a Purchaser that is: (i) a partnership transferring to its partners or former
partners in accordance with partnership interests; (ii) a corporation transferring to a
wholly-owned subsidiary or a parent corporation that owns all of the capital stock of the Holder;
(iii) a limited liability company transferring to its members or former members in accordance with
their interest in the limited liability company; or (iv) an affiliated investment fund transferring
to another affiliated investment fund; provided that in each case the transfer is effected in
accordance with applicable securities laws and the transferee agrees in writing to be subject to
the terms of this Agreement to the same extent as if the transferee were an original Purchaser
hereunder.

Section 3.9 Authorization; Enforcement. The Purchaser has the requisite power and
authority to enter into this Agreement and to consummate the transactions contemplated hereby. The
Purchaser has taken all necessary action to authorize the execution, delivery and performance of
this Agreement. Upon the execution and delivery of this Agreement, this Agreement shall constitute
a valid and binding obligation of the Purchaser enforceable in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity and except as rights to indemnity and
contribution may be limited by state or federal securities laws or public policy underlying such
laws.

Section 3.10 Residency. The Purchaser is a resident of the jurisdiction set forth
immediately below such Purchaser’s name on the signature pages hereto.

Section 3.11 No Short Sales. Between the time the Purchaser learned about the
Offering and the public announcement of the Offering, the Purchaser has not engaged in any short
sales or similar transactions with respect to the Common Stock, nor has the Purchaser, directly or
indirectly, caused any Person to engage in any short sales or similar transactions with respect to
the Common Stock.

Section 3.12 Acknowledgements Regarding Placement Agent. The Purchaser acknowledges
that the Placement Agents are acting as the exclusive placement agents on a “best efforts” basis
for the Securities being offered hereby and will be compensated by the Company for acting in such
capacity. The Purchaser represents that (i) the Purchaser was contacted regarding the sale of the
Securities by the Placement Agent (or an authorized agent or representative thereof) with whom the
Purchaser entered into a confidentiality agreement and (ii) no Securities were offered or sold to
it by means of any form of general solicitation or general advertising.

ARTICLE IV

Covenants

Section 4.1 Reporting Status. The Company’s Common Stock is registered under Section
12 of the Exchange Act. During the Registration Period (or within the periods permitted under Rule
12b-25 of the Exchange Act), the Company will timely file with the SEC all reports required to be
so filed under the Exchange Act, and the Company will not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the rules and
regulations thereunder would permit such termination.

Section 4.2 Expenses. The Company and each Purchaser is each severally and not
jointly liable for, and each will pay, its own expenses incurred in connection with the
negotiation, preparation, execution and delivery of this Agreement, including, without limitation,
attorneys’ and consultants’ fees and expenses; provided, however, that the Company will reimburse
each of the Principal Investors at each Closing for the reasonable consulting, legal, due diligence
and other out-of-pocket expenses incurred by each such Purchaser in connection with the
transactions contemplated by this Agreement, up to a maximum of $100,000 to each Principal
Investor.

Section 4.3 Financial Information. The financial statements of the Company to be
included in any documents filed with the SEC will be prepared in accordance with accounting
principles generally accepted in the United States, consistently applied (except (i) as may be
otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of
unaudited interim statements, to the extent they may not include footnotes, may be condensed or
summary statements or may conform to the SEC’s rules and instructions for Reports on Form 10-Q),
and will fairly present in all material respects the consolidated financial position of the Company
and consolidated results of its operations and cash flows as of, and for the periods covered by,
such financial statements (subject, in the case of unaudited statements, to normal and recurring
year-end audit adjustments).

Section 4.4 Securities Laws Disclosure; Publicity. On or before 9:30 a.m., New York
local time, on October 6, 2006 the Company shall issue a press release announcing the signing of
this Agreement and describing the material terms of the transactions contemplated by this
Agreement. On or before October 12, 2006, the Company shall file a Current Report on Form 8-K with
the SEC describing the terms of the transactions contemplated by this Agreement and including as an
exhibit to such Current Report on Form 8-K this Agreement, in the form required by the Exchange
Act. The Company shall not otherwise publicly disclose the name of any Purchaser, or include the
name of any Purchaser in any filing with the SEC (other than the Registration Statement and any
exhibits to filings made in respect of this transaction in accordance with periodic filing
requirements under the Exchange Act) or any regulatory agency, without the prior written consent of
such Purchaser, except to the extent such disclosure is required by law or regulations and except
in the case of the initial press release issued by the Company publicly announcing the execution of
this Agreement by the Purchasers, including the Principal Investors (in such latter case, the
Company shall provide the Principal Investors with prior notice of such disclosure).

Section 4.5 Sales by Purchasers. Each Purchaser will sell any Securities held by it
in compliance with applicable prospectus delivery requirements, if any, or otherwise in compliance
with the requirements for an exemption from registration under the Securities Act and the rules and
regulations promulgated thereunder. No Purchaser will make any sale, transfer or other disposition
of the Securities in violation of federal or state securities laws.

Section 4.6 Reservation of Common Stock. The Company shall reserve and keep available
at all times during which the Warrants remain exercisable, free of preemptive rights, a sufficient
number of shares of Common Stock for the purpose of enabling the Company to issue Warrant Shares
pursuant to this Agreement.

Section 4.7 Pledge of Securities. The Company acknowledges and agrees that the
Securities may be pledged by a Purchaser in connection with a bona fide margin agreement or
other loan or financing arrangement that is secured by the Securities. The pledge of Securities
shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no
Purchasers effecting a pledge of the Securities shall be required to provide the Company with any
notice thereof or otherwise make any delivery to the Company pursuant to this Agreement; provided
that a Purchaser and its pledgee shall comply with the provisions of this Agreement in order to
effect a sale, transfer, or assignment of any such Securities to such pledgee. At the expense of
the Purchaser pledging such Securities, the Company hereby agrees to execute and deliver such
documentation as pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by a Purchaser.

Section 4.8 Use of Proceeds. Following the payment of expenses in connection with the
transactions contemplated hereby including without limitation the placement agent fees and any
expenses paid by the Company pursuant to Section 4.2, the Company shall use the net proceeds from
the sale of the Shares and Warrants under this Agreement for research and development of its drug
programs and other general corporate purposes.

Section 4.9 Stockholder Approval; Requisite Approval. Unless the Company receives
prior Nasdaq Approval, the Company shall provide each stockholder entitled to vote at a special
meeting of stockholders of the Company (the “Stockholder Meeting”), which shall be promptly called
and held not later than 90 calendar days from the date hereof, a proxy statement meeting the
requirements of Section 14 of the Exchange Act and the related rules and regulations thereunder
promulgated by the SEC (the “Proxy Statement”) soliciting each such stockholder’s affirmative vote
at the Stockholder Meeting for approval of resolutions approving the Company’s issuance of all of
the Excess Securities (the “Stockholder Approval”) in accordance with law and the rules and
regulations of Nasdaq and the Delaware General Corporation Law, and the Company shall use its
reasonable best efforts to solicit its stockholders’ approval of such resolutions. Notwithstanding
any other provision of this Agreement, no Excess Securities shall be issued under this Agreement to
any Purchaser prior to Stockholder Approval (which, for this purpose shall not include the vote of
any shares acquired by such Purchaser under this Agreement prior to obtaining Stockholder Approval)
except in accordance with the rules and interpretations of Nasdaq. The Company shall permit a
single counsel for the Purchasers to review the Proxy Statement and all amendments and supplements
thereto, and shall furnish such counsel with the Proxy Statement not less than two Business Days
prior to the filing thereof with the SEC. The Company shall promptly furnish to any Purchaser who
so requests copies of notices or other communications related to the Proxy Statement or the
Stockholder Meeting received by the Company from the SEC.

Section 4.10 Operation of Business. During the period from the date of this Agreement
until the Second Closing, except as contemplated by this Agreement and the Warrants, the Company
shall carry on its business in the ordinary course in substantially the same manner as heretofore
conducted and, to the extent consistent with such business, use its commercially reasonable efforts
consistent with past practice and policies to preserve intact its present business organizations,
keep available the services of its present officers, consultants and employees and preserve its
relationships with customers, suppliers and others having business dealings with it.

Section 4.11 Non-Solicitation. (a) During the period from the date of this Agreement
until the earlier of the Second Closing or 120 calendar days from the date of this Agreement,
without the consent of each of the Principal Investors, which consent shall not be unreasonably
withheld, the Company shall not take, cause or permit (and shall use its reasonable best efforts to
ensure that none of its officers, directors, agents or representatives takes, causes or permits)
any person to take, directly or indirectly, any of the following actions with any third party: (i)
solicit, knowingly encourage, initiate or participate in any negotiations with respect to any
specific offer or proposal to acquire 30% or more of the business, assets or capital shares of the
Company (excluding licenses entered into in the ordinary course of business), whether by merger,
consolidation, other business combination, purchase of capital stock, purchase of assets, license,
lease, tender or exchange offer or otherwise (each of the foregoing, an “Alternative Proposal”),
(ii) disclose, in connection with an Alternative Proposal, any nonpublic information concerning the
Company’s business or properties or afford to any third party, in connection with an Alternative
Proposal, access to its properties, books or records, except in the ordinary course of business, as
required by law or regulation, or pursuant to a governmental request for information, (iii) enter
into or execute any agreement providing for an Alternative Proposal or (iv) make or authorize any
public statement, recommendation or solicitation in support of any Alternative Proposal or any
offer or proposal relating to an Alternative Proposal; provided, however, that, in each case, if
and to the extent that (i) the Stockholder Meeting has not yet occurred, (ii) the Board of
Directors of the Company believes in good faith, after consultation with the Company’s legal
counsel (and, in order for the Company to withhold, withdraw, modify or change in a manner adverse
to the Purchasers or take any action or make any statement in connection with the Stockholder
Meeting inconsistent with the Company’s Recommendation, the Company’s financial advisor), that such
Alternative Proposal is a Superior Proposal (as defined hereafter), and (iii) the Board of
Directors of the Company believes in good faith, after consultation with the Company’s counsel,
that the failure to participate in such negotiations, disclose such nonpublic information, provide
such access to its properties, books or records, enter into any agreement providing for such
Alternative Proposal or make or authorize any public statement, recommendation or solicitation in
support of any Alternative Proposal or any offer or proposal relating to an Alternative Proposal
would constitute a breach of the fiduciary duties of the Board of Directors of the Company under
applicable law, then the Company may participate in negotiations regarding such Alternative
Proposal (but only to the extent that such information was previously provided to the Purchasers
prior to the execution of this Agreement or is provided to the Purchasers concurrently therewith),
provide non-public information with respect to the Company, afford access to the properties, books
or records of the Company, enter into any agreement relating to such Alternative Proposal or make
or authorize any public statement, recommendation or solicitation in support of any Alternative
Proposal or any offer or proposal relating to an Alternative Proposal, as applicable.

(b) In the event that the Company is contacted by any third party expressing an interest in
discussing an Alternative Proposal, the Company will promptly, but in no event later than
twenty-four (24) hours following the Company’s knowledge of such contact, notify the Purchasers in
writing of such contact and the identity of the third party so contacting the Company and shall
promptly, but in no event later than twenty-four (24) hours, advise the Purchasers of any material
modification or proposed modification thereto.

(c) Nothing contained in this Agreement shall prohibit the Company or the Board of Directors
of the Company from taking and disclosing to the Company’s stockholders a position with respect to
an unsolicited bona fide tender or exchange offer by a third party pursuant to Rule 14e-2(a) of the
Exchange Act or from making any disclosure required by applicable law.

(d) For purposes of this Agreement, a “Superior Proposal” means an Alternative Proposal which
(i) is on terms (including conditions to consummation of the contemplated transaction) which the
Board of Directors of the Company in its reasonable good faith judgment (after consultation with
and based on the written advice of its financial advisor) believes to be more favorable to its
stockholders from a financial point of view than the transactions contemplated by this Agreement
and (ii) that is not attributable to a material breach by the Company of Section 4.11(a) hereof.

Section 4.12 Third Party Offer. During the period from the date of this Agreement
until the earlier of the Second Closing or 120 calendar days from the date of this Agreement, if
the Company intends to seek any financing (other than a debt financing not involving the issuance
of equity securities, other than warrants issued incidental to the issuance of such debt) or to
seek any transaction not in the ordinary course of business consistent with past practice that
would qualify as an Alternative Proposal but for the 30% threshold specified in Section 4.11(a) or
is approached by any third party with any offer to provide such financing or transaction that the
Company does not immediately and unconditionally reject (a “Third Party Offer"), the Company shall
first endeavor to negotiate with the Purchasers, for a period not to exceed fifteen (15) business
days, a financing or transaction comparable to the Third Party Offer. The Company and the
Purchasers shall negotiate in good faith with respect to such financing or transaction, but nothing
in this Agreement shall be construed to require the Purchasers to provide, on the one hand, or the
Company to accept, on the other hand, any such financing or transaction; provided, however, that if
the Company receives a Third Party Offer, the Company shall notify the Purchasers of the amount of
such offer and all the other material terms of such offer and, if the Purchasers, within the
fifteen (15) business day period specified above, offer to provide financing to, or enter into a
transaction with, the Company in the amount, as applicable, and on terms no less favorable than
those contained in the Third Party Offer, the Company shall accept the Purchasers’ offer, if (in
its sole discretion) it accepts any offer. For the avoidance of doubt, the parties hereto agree
that any Third Party Offer involving the right of a person other than the Purchasers or their
affiliates to (i) purchase or acquire less than 30% of the business, properties or other assets or
capital stock or other equity interests in the Company, whether by share issuance, equity or
convertible debt financing, sale of stock or assets, merger, consolidation, other business
combination, tender offer, exchange offer, recapitalization, reorganization, liquidation,
dissolution, license agreement, mortgage, lease or other transaction involving the Company, any
division or operating or principal business unit or the intellectual property of the Company, on
the one hand, and any other Person, on the other hand or (ii) enter into any transaction, that if
consummated, would result in any Person (or the stockholders of such Person) beneficially owning
securities representing less than 30% of the total voting power of the Company (or of the surviving
parent entity in such transaction) shall be deemed a Third Party Offer and not an Alternative
Proposal.

Section 4.13 Recommendations to the Nominating Committee. The Company and each of the
Principal Investors acknowledge that it is the present intention of the Company to elect an
individual to the Company’s Board of Directors who has substantial expertise in the Company’s
industry (an “Industry Expert”). The Nominations Committee of the Board of Directors of the
Company will solicit one or more recommendations from each of the Principal Investors, and shall
consult with each of the Principal Investors in connection with identifying, an Industry Expert to
be nominated for election to the Company’s Board of Directors. Any Industry Expert who is
nominated for election to the Board of Directors of the Company shall be reasonably acceptable to
each Principal Investor and to the Company.

ARTICLE V

Conditions To Closing

Section 5.1 Conditions to Obligations of the Company at each Closing. The Company’s
obligation to complete the purchase and sale of the Securities and deliver stock certificate(s) and
Warrants to the Purchasers at each Closing is subject to the fulfillment or waiver as of each
Closing Date of the following conditions:

(a) Receipt of Funds. The Company shall have received immediately available funds in
the full amount of the Purchase Price for the Shares and Warrants being purchased at such Closing
as set forth opposite such Purchaser’s name on Exhibit A-1 or A-2 hereto, as applicable.

(b) Representations and Warranties. The representations and warranties made by each
Purchaser in Article 3 shall be true and correct in all material respects as of each Closing Date.

(c) Covenants. All covenants, agreements and conditions contained in this Agreement
to be performed by the Purchasers on or prior to each Closing Date shall have been performed or
complied with in all material respects.

(d) Blue Sky. The Company shall have obtained all necessary blue sky law permits and
qualifications, or secured exemptions therefrom, required by any state for the offer and sale of
the Securities.

(e) Absence of Litigation. No proceeding challenging this Agreement or the
transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the
Closing, shall have been instituted or be pending before any court, arbitrator, governmental body,
agency or official.

(f) No Governmental Prohibition. The sale of the Securities by the Company shall not
be prohibited by any law or governmental order or regulation.

(g) No Stop Order. No stop order or suspension of trading shall have been imposed by
Nasdaq, the SEC or any other governmental or regulatory body with respect to public trading in the
Common Stock.

(h) Requisite Approval. With respect to the Second Closing only, the Company shall
have obtained the Requisite Approval.

Section 5.2 Conditions to Purchasers’ Obligations at the First Closing. Each
Purchaser’s obligation to complete the purchase and sale of the Shares and Warrants at the First
Closing is subject to the fulfillment or waiver as of the First Closing Date of the following
conditions:

(a) Representations and Warranties. The representations and warranties made by the
Company in Article 2 shall be true and correct in all material respects as of the First Closing
Date.

(b) Covenants. All covenants, agreements and conditions contained in this Agreement
to be performed by the Company on or prior to the First Closing Date shall have been performed or
complied with in all material respects.

(c) Blue Sky. The Company shall have obtained all necessary blue sky law permits and
qualifications, or secured exemptions therefrom, required by any state or foreign or other
jurisdiction for the offer and sale of the Shares.

(d) Legal Opinion. The Company shall have delivered to such Purchaser an opinion,
dated as of the First Closing Date, from Covington & Burling LLP, counsel to the Company, in form
and substance reasonably satisfactory to each of the Principal Investors.

(e) Transfer Agent Instructions. The Company shall have delivered to its transfer
agent irrevocable instructions to issue to such Purchaser or in such nominee name(s) as designated
by such Purchaser in writing such number of Shares set forth opposite such Purchaser’s name on
Exhibit A-1 hereto or, if requested by the Purchaser, one or more certificates representing such
Shares, and Warrants to purchase the Warrant Shares.

(f) Absence of Litigation. No proceeding challenging this Agreement and the Warrants
or the transactions contemplated hereby and thereby, or seeking to prohibit, alter, prevent or
materially delay the First Closing, shall have been instituted or be pending before any court,
arbitrator, governmental body, agency or official.

(g) No Governmental Prohibition. The sale of the Securities by the Company at the
First Closing shall not be prohibited by any law or governmental order or regulation or third party
consents or approvals, if any, necessary for the sale of the Securities shall have been received.

(h) No Stop Order. No stop order or suspension of trading shall have been imposed by
Nasdaq, the SEC or any other governmental or regulatory body with respect to public trading in the
Common Stock.

(i) Minimum Aggregate Commitment. Subject to the terms hereof, Purchasers shall have
committed to purchase, at the First Closing and the Second Closing, Securities resulting in
aggregate gross proceeds to the Company of at least $32,000,000.

(j) Board Representation. The Board of Directors of the Company shall have duly
elected Vaughn Kailian as a member of the Board of Directors as a Class II Director, effective as
of the First Closing Date. Subject to being deemed eligible to serve on the Nominations Committee
of the Board of Directors pursuant to the terms of the committee charter and applicable listing
standards and securities law requirements, the Company’s Board of Directors shall have appointed,
effective as of the Closing, Vaughn Kailian as a member of the Nominations Committee of the
Company’s Board of Directors, and such appointment shall be in full force and effect.

(k) Officers’ Certificates. The Company shall have delivered to each Purchaser (i) a
certificate of the Chief Executive Officer of the Company, dated the First Closing Date, confirming
the satisfaction of the conditions set forth in clauses (a) and (b) of this Section 5.2, and (ii) a
certificate of the Secretary of the Company, dated the First Closing Date, certifying as to the
incumbency and signatures of the officers executing this Agreement and the resolutions of the Board
of Directors approving this Agreement and the transactions contemplated hereby.

Section 5.3 Conditions to Purchasers’ Obligations at the Second Closing. Each
Purchaser’s obligation to complete the purchase and sale of the Shares and Warrants at the Second
Closing is subject to the fulfillment or waiver as of the Second Closing Date of the following
conditions:

(a) Requisite Approval. The Company shall have obtained the Requisite Approval.

(b) Conditions to First Closing. All conditions to the First Closing shall have been
satisfied and the First Closing shall have occurred.

(c) Representations and Warranties. The representations and warranties made by the
Company in Article 2 shall be true and correct in all material respects as of the Second Closing
Date.

(d) Officer’s Certificates. The Company shall have delivered to each Purchaser a
certificate of the Chief Executive Officer of the Company, dated the Second Closing Date,
confirming the satisfaction of the conditions set forth in clauses (a) and (c) of this Section 5.3.

(e) Transfer Agent Instructions. The Company shall have delivered to its transfer
agent irrevocable instructions to issue to such Purchaser or in such nominee name(s) as designated
by such Purchaser in writing such number of Shares set forth opposite such Purchaser’s name on
Exhibit A-2 hereto or, if requested by the Purchaser, one or more certificates representing such
Shares, and Warrants to purchase the Warrant Shares.

(f) Absence of Litigation. No proceeding challenging this Agreement or the
transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the
Second Closing, shall have been instituted or be pending before any court, arbitrator, governmental
body, agency or official.

(g) No Governmental Prohibition. The sale of the Shares by the Company at the Second
Closing shall not be prohibited by any law or governmental order or regulation.

(h) No Stop Order. No stop order or suspension of trading shall have been imposed by
Nasdaq, the SEC or any other governmental or regulatory body with respect to public trading in the
Common Stock.

(i) No Material Adverse Effect. Since the date of this Agreement, there shall not
have occurred a Material Adverse Effect.

(j) Legal Opinion. The Company shall have delivered to such Purchaser an opinion,
dated as of the Second Closing Date, from Covington & Burling LLP, counsel to the Company, in form
and substance reasonably satisfactory to each of the Principal Investors.

ARTICLE VI

Registration Rights

Section 6.1 Filing of Registration Statement. (a) As soon as reasonably practicable,
but in no event later than 30 days after the First Closing Date (the “First Filing Date”), the
Company shall file a registration statement covering the resale of the Registrable Securities (as
defined in Section 7.1) issued at the First Closing on a registration statement (the “First
Registration Statement”) with the SEC and effect the registration, qualifications or compliances
(including, without limitation, the execution of any required undertaking to file post-effective
amendments, appropriate qualifications or exemptions under applicable blue sky or other state
securities laws and appropriate compliance with applicable securities laws, requirements or
regulations) as promptly as possible after the filing thereof, but in any event prior to the date
which is 90 days after the First Closing Date.

(b) To the extent the Shares issued at the Second Closing can not be included in the First
Registration Statement, then as soon as reasonably practicable, but in no event later than 30 days
after the Second Closing Date (the “Second Filing Date”), the Company shall file a registration
statement covering the resale of the Registrable Securities issued at the Second Closing on a
registration statement (the “Second Registration Statement” and together with the First
Registration Statement, the “Registration Statements” and each a “Registration Statement”) with the
SEC and effect the registration, qualifications or compliances (including, without limitation, the
execution of any required undertaking to file post-effective amendments, appropriate qualifications
or exemptions under applicable blue sky or other state securities laws and appropriate compliance
with applicable securities laws, requirements or regulations) as promptly as possible after the
filing thereof, but in any event prior to the date which is 90 days after the Second Closing Date.

(c) Each Registration Statement will be on Form S-3; provided that if Form S-3 is not
available for use by the Company on any Filing Date, then such Registration Statement will be on
such form as is then available.

Section 6.2 Expenses. All Registration Expenses incurred in connection with any
registration, qualification, exemption or compliance pursuant to Section 6.1 shall be borne by the
Company. All Selling Expenses relating to the sale of securities registered by or on behalf of any
Holder shall be borne by such Holder.

Section 6.3 Registration Defaults. The Company further agrees that, in the event that
a Registration Statement (i) has not been declared effective by the SEC within 90 days after the
applicable Closing Date, if the SEC determines not to review such Registration Statement, (ii) has
not been declared effective by the SEC within 120 days after the applicable Closing Date, if the
SEC determines to review such Registration Statement, or (iii) after such Registration Statement is
declared effective by the SEC, is suspended by the Company or ceases to remain continuously
effective as to all Registrable Securities for which it is required to be effective, other than, in
each case, within the time period(s) permitted by Section 6.8(b) (each such event referred to in
clauses (i), (ii) and (iii), a “Registration Default”), for any thirty-day period or portion
thereof (a “Penalty Period”) during which the Registration Default remains uncured (which initial
thirty-day period shall commence on the date of such Registration Default), the Company shall
promptly pay, in cash, to each Purchaser 1% of such Purchaser’s aggregate Purchase Price for such
Purchaser’s Registrable Securities to be included in such Registration Statement for each Penalty
Period during which the Registration Default remains uncured (a “Registration Penalty”); provided,
however, that if a Purchaser fails to provide the Company with any information that is required to
be provided in a Registration Statement with respect to such Purchaser as set forth herein, then
the commencement of the Penalty Period described above shall be extended until two Business Days
following the date of receipt by the Company of such required information; provided further, that
the amount payable to any Holder hereunder for any partial Penalty Period shall be prorated for the
number of actual days during such Penalty Period during which a Registration Default remains
uncured; and provided further that in no event shall the Company be required to pay to any
Purchaser pursuant to this Section 6.3 an aggregate amount that exceeds 10% of the aggregate Stock
Purchase Price paid by such Purchaser for such Purchaser’s Shares and 10% of the aggregate Warrant
Purchase Price paid by such Purchaser for such Purchaser’s Warrants. Notwithstanding anything to
the contrary contained in this Section 6.3, in no event shall the Company be liable for more than
one Registration Penalty during any 30 day period or for multiple events giving rise to a
Registration Penalty during any 30 day period.

Section 6.4 Company Registrations. If (but without any obligation to do so) the
Company proposes to register (including for this purpose a registration effected by the Company for
stockholders) any of its stock or other securities under the Securities Act in connection with an
underwritten public offering of such securities solely for cash other than (i) a Registration
Statement required to be filed under Section 6.1 of this Agreement, (ii) a registration on Form S-8
relating solely to the sale of securities to participants in a Company stock plan or to other
compensatory arrangements to the extent includable on Form S-8, or (iii) a registration on Form
S-4, the Company shall, at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within 20 days after delivery of such
notice by the Company in accordance with Section 8.6, the Company shall, subject to the provisions
of this Article VI, use its reasonable best efforts to cause to be registered under the Securities
Act all of the Registrable Securities that each such Holder has requested to be registered. In the
event that the underwriters in such public offering advise the Company that marketing factors
require a limitation of the number of shares to be underwritten, the Company and its underwriters
shall allocate the number of Registrable Securities requested to be registered by each of the
Holders as follows: (i) first, to the Company; and (ii) second, to the Holders of Registrable
Securities and to such other holders of “Registrable Securities” under agreements in effect on the
date of this Agreement that have elected to participate in such offering, pro rata according to the
number of Registrable Securities held by each such Holder; provided, however, that in no event
shall the number of Registrable Securities to be registered in any public offering under this
Section 6.4 be less than twenty-five percent (25%) of the total number of shares to be registered
pursuant to such registration. The Company shall have no obligation under this Section 6.4 to make
any offering of its securities, or to complete an offering of its securities that it proposes to
make, and shall incur no liability to any Holder for its failure to do so. The Company’s
obligations under this Section 6.4 shall terminate upon expiration of the Registration Period.

Section 6.5 Registration Period Covenants. In the case of the registration,
qualification, exemption or compliance effected by the Company pursuant to this Agreement, the
Company shall, upon reasonable request, inform each Holder as to the status of such registration,
qualification, exemption and compliance. At its expense, during the Registration Period, the
Company shall:

(a) except for such times as the Company is permitted hereunder to suspend the use of the
prospectus forming part of a Registration Statement, use its commercially reasonable efforts to
keep such registration, and any qualification, exemption or compliance under state securities laws
that the Company determines to obtain, continuously effective with respect to a Holder, and to keep
such Registration Statement free of any material misstatements or omissions, until the earlier of
the following: (i) the third anniversary of the Second Closing Date or (ii) the date on which all
Shares and Warrant Shares held by such Holder may be sold under Rule 144(k) under the Securities
Act. The period of time during which the Company is required hereunder to keep the Registration
Statements effective is referred to herein as the “Registration Period.”

(b) advise the Holders:

(i) within two Business Days when a Registration Statement or any amendment thereto has
been filed with the SEC and when a Registration Statement or any post-effective amendment
thereto has become effective;

(ii) within two Business Days of any request by the SEC for amendments or supplements
to a Registration Statement or the prospectus included therein or for additional
information;

(iii) within two Business Days of the issuance by the SEC of any stop order suspending
the effectiveness of a Registration Statement or the initiation of any proceedings for such
purpose;

(iv) within two Business Days of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities included
therein for sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; and

(v) within two Business Days of the occurrence of any event that requires the making of
any changes in a Registration Statement or the prospectus so that, as of such date, the
statements therein are not misleading and do not omit to state a material fact required to
be stated therein or necessary to make the statements therein (in the case of the
prospectus, in the light of the circumstances under which they were made) not misleading;

(c) use its reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of any Registration Statement as soon as reasonably practicable;

(d) promptly deliver to each such Holder, without charge, as many copies of the prospectus
included in such Registration Statement and any amendment or supplement thereto as such Holder may
reasonably request in writing; and the Company consents to the use, consistent with the provisions
hereof, of the prospectus or any amendment or supplement thereto by each of the selling Holders of
Registrable Securities in connection with the offering and sale of the Registrable Securities
covered by the prospectus or any amendment or supplement thereto;

(e) if a Holder so requests in writing, deliver to each Holder, without charge, (i) one copy
of the following documents, other than those documents available via EDGAR: (A) its annual report
to its stockholders, if any (which annual report shall contain financial statements audited in
accordance with generally accepted accounting principles in the United States of America by a firm
of certified public accountants of recognized standing), (B) if not included in substance in its
annual report to stockholders, its annual report on Form 10-K (or similar form), (C) its definitive
proxy statement with respect to its annual meeting of stockholders, (D) each of its quarterly
reports to its stockholders, and, if not included in substance in its quarterly reports to
stockholders, its quarterly report on Form 10-Q (or similar form), and (E) a copy of the full
Registration Statement (the foregoing, in each case, excluding exhibits); and (ii) if explicitly
requested, all exhibits excluded by the parenthetical to the immediately preceding clause (E);

(f) prior to any public offering of Registrable Securities pursuant to any Registration
Statement, promptly take such actions as may be necessary to register or qualify or obtain an
exemption for offer and sale under the securities or blue sky laws of such United States
jurisdictions as any such Holders reasonably request in writing, provided that the Company shall
not for any such purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to general service of
process in any such jurisdiction, and do any and all other acts or things reasonably necessary or
advisable to enable the offer and sale in such jurisdictions of the Registrable Securities covered
by such Registration Statement;

(g) upon the occurrence of any event contemplated by Section 6.4(b)(v) above, except for such
times as the Company is permitted hereunder to suspend the use of the prospectus forming part of a
Registration Statement, the Company shall use its reasonable best efforts to as soon as reasonably
practicable prepare a post-effective amendment to a Registration Statement or a supplement to the
related prospectus, or file any other required document so that, as thereafter delivered to
purchasers of the Registrable Securities included therein, the prospectus will not include any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;

(h) otherwise use its reasonable best efforts to comply in all material respects with all
applicable rules and regulations of the SEC which could affect the sale of the Registrable
Securities;

(i) use its reasonable best efforts to cause all Registrable Securities to be listed on each
securities exchange or market, if any, on which equity securities issued by the Company have been
listed;

(j) use its reasonable best efforts to take all other steps necessary to effect the
registration of the Registrable Securities contemplated hereby and to enable the Holders to sell
Registrable Securities under Rule 144;

(k) provide to each Purchaser and its representatives, if requested, the opportunity to
conduct a reasonable inquiry of the Company’s financial and other records during normal business
hours and make available on reasonable prior notice and during normal business hours its officers,
directors and employees for questions regarding information which such Purchaser may reasonably
request in order to fulfill any due diligence obligation on its part; and

(l) permit a single counsel for the Purchasers to review the Registration Statements and all
amendments and supplements thereto, within two Business Days prior to the filing thereof with the
SEC;

provided that, in the case of clauses (k) and (l) above, the Company shall not be required (A) to
delay the filing of a Registration Statement or any amendment or supplement thereto as a result of
any ongoing diligence inquiry by or on behalf of a Holder or to receive any comments to such
Registration Statement or any amendment or supplement thereto by or on behalf of a Holder if such
inquiry or comments would require or result in a delay in the filing of such Registration
Statement, amendment or supplement, as the case may be, or (B) to provide, and shall not provide,
any Purchaser or its representatives with material, non-public information unless such Purchaser
agrees to receive such information and enters into a written confidentiality agreement with the
Company in a form reasonably acceptable to the Company.

Section 6.6 [Reserved]

Section 6.7 Indemnity. (a) To the extent permitted by law, the Company shall
indemnify each Holder, the directors, officers, members, partners, employees, agents or other
representatives of such Holder and each person controlling such Holder within the meaning of
Section 15 of the Securities Act, with respect to which any registration that has been effected
pursuant to this Agreement, against all claims, losses, damages, fines, penalties, costs,
reasonable attorney’s fees, amounts paid in settlement and liabilities (or action in respect
thereof) (collectively, “Claims”), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened (subject to Section 6.7(c) below), arising out of or based on
any untrue statement (or alleged untrue statement) of a material fact contained in a Registration
Statement, prospectus, any amendment or supplement thereof, or other document incident to any such
registration, qualification or compliance or based on any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, in light of the circumstances in which they were made, or any violation by the
Company of the Securities Act, the Exchange Act, any state securities law, or any rule or
regulation thereunder, relating to any relating to any action or inaction required of the Company
in connection with any such Registration Statement, qualification or compliance, and will reimburse
each Holder and each person controlling such Holder, the directors, officers, members, partners,
employees, agents or other representatives of such Holder, for reasonable legal and other
out-of-pocket expenses reasonably incurred in connection with investigating or defending any such
Claim as incurred; provided that the Company will not be liable in any such case to the extent that
any untrue statement or omission or allegation thereof is made in reliance upon and in conformity
with written information furnished to the Company by or on behalf of such Holder for use in
preparation of such Registration Statement, prospectus, amendment or supplement; provided further
that the Company will not be liable in any such case where the Claim arises out of or is related to
the failure of such Holder to comply with the covenants and agreements contained in this Agreement
respecting sales of Registrable Securities, and except that the foregoing indemnity agreement is
subject to the condition that, insofar as it relates to any such untrue statement or alleged untrue
statement or omission or alleged omission made in the preliminary prospectus but eliminated or
remedied in the amended prospectus on file with the SEC at the time a Registration Statement
becomes effective or in the amended prospectus filed with the SEC pursuant to Rule 424(b) or in the
prospectus subject to completion under Rule 434 of the Securities Act, which together meet the
requirements of Section 10(a) of the Securities Act (the “Final Prospectus”), such indemnity shall
not inure to the benefit of any such Holder, the directors, officers, members, partners, employees,
agents or other representatives of such Holder or any such controlling person, if a copy of the
Final Prospectus furnished by the Company to the Holder for delivery was not furnished to the
person or entity asserting the Claim at or prior to the time such furnishing is required by the
Securities Act and the Final Prospectus would have cured the defect giving rise to such loss,
liability, claim or damage.

(b) Each Holder will severally, and not jointly, indemnify the Company, each of its directors
and officers, and each person who controls the Company within the meaning of Section 15 of the
Securities Act, against all Claims (or actions in respect thereof), including any of the foregoing
incurred in settlement of any litigation, commenced or threatened (subject to Section 6.7(c)
below), arising out of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in a Registration Statement, prospectus, or any amendment or supplement thereof,
incident to any such registration, or based on any omission (or alleged omission) to state therein
a material fact required to be stated therein or necessary to make the statements therein not
misleading, in light of the circumstances in which they were made, and will reimburse the Company,
such directors and officers, and each person controlling the Company for reasonable legal and any
other expenses reasonably incurred in connection with investigating or defending any such Claim as
incurred, in each case to the extent, but only to the extent, that such untrue statement or
omission or allegation thereof is made in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Holder for use in preparation of a Registration
Statement, prospectus, amendment or supplement; provided that the indemnity shall not apply to the
extent that such Claim results from the fact that a current copy of the prospectus was not made
available to the person or entity asserting the Claim at or prior to the time such furnishing is
required by the Securities Act and the Final Prospectus would have cured the defect giving rise to
such loss, claim, damage or liability. Notwithstanding the foregoing, a Holder’s aggregate
liability pursuant to this subsection (b) shall be limited to the net amount received by the Holder
from the sale of the Registrable Securities giving rise to such claims, losses, damages and
liabilities (and actions in respect thereof).

(c) Each party entitled to indemnification under this Section 6.7 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party (at its expense) to assume the defense of any
such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party,
who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified
Party (whose approval shall not unreasonably be withheld or delayed), and the Indemnified Party may
participate in such defense at such Indemnified Party’s expense; provided further that the failure
of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party
of its obligations under this Agreement, unless such failure is materially prejudicial to the
Indemnifying Party in defending such claim or litigation. Notwithstanding the foregoing, an
Indemnified Party shall have the right to retain its own counsel, with the fees and expenses to be
paid by the Indemnifying Party, if representation of such Indemnified Party by the counsel retained
by the Indemnifying Party would be inappropriate due to actual or potential differing interests
between such Indemnified Party and any other party represented by such counsel in such proceeding.
An Indemnifying Party shall not be liable for any settlement of an action or claim effected without
its written consent (which consent will not be unreasonably withheld). An Indemnifying Party shall
not be liable for any settlement of an action or claim effected without its written consent (which
consent will not be unreasonably withheld or delayed). No Indemnifying Party, in its defense of
any such claim or litigation, shall, except with the consent (such consent not to be unreasonably
withheld or delayed) of the Indemnified Party consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation or which involves any relief or liability other than the payment of monetary damages.

(d) If the indemnification provided for in this Section 6.7 is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party or is insufficient to hold such Indemnified
Party harmless with respect to any Claim referred to therein, then the Indemnifying Party shall
contribute to the amount paid or payable by such Indemnified Party as a result of such Claim in
such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the
one hand and of the Indemnified Party on the other in connection with the statements or omissions
which resulted in such Claim as well as any other relevant equitable considerations. The relative
fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the Indemnifying Party or by
the Indemnified Party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, a
Holder’s aggregate liability pursuant to Sections 6.7(b) and (d) shall be limited to the net amount
received by the Holder from the sale of Registrable Securities giving rise to such Claim less all
other amounts paid as damages in respect thereto.

Section 6.8 Additional Covenants and Agreements of the Holders. (a) Each Holder
agrees that, upon receipt of any notice from the Company of the happening of any event requiring
the preparation of a supplement or amendment to a prospectus relating to Registrable Securities so
that, as thereafter delivered to the Holders, such prospectus shall not contain an untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, each Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Registration Statements and prospectus contemplated by
Section 6.1 until its receipt of copies of the supplemented or amended prospectus from the Company
and, if so directed by the Company, each Holder shall deliver to the Company all copies, other than
permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable
Securities current at the time of receipt of such notice.

(b) Each Holder shall suspend, upon request of the Company, any disposition of Registrable
Securities pursuant to the Registration Statements and prospectus contemplated by Section 6.1
during no more than 90 calendar days (which need not be consecutive days) during any 12-month
period to the extent that the Board of Directors of the Company determines in good faith, with the
advice of counsel, that the sale of Registrable Securities under a Registration Statement would be
reasonably likely to cause a violation of the Securities Act or Exchange Act.

(c) As a condition to the inclusion of its Registrable Securities, each Holder shall furnish
to the Company such information regarding such Holder and the distribution proposed by such Holder
as the Company may reasonably request in writing, including completing a Registration Statement
questionnaire in the form provided by the Company, or as shall be required in connection with any
registration referred to in this Article 6.

(d) Each Holder hereby covenants with the Company (i) not to make any sale of the Registrable
Securities without effectively causing the prospectus delivery requirements under the Securities
Act to be satisfied, and (ii) if such Registrable Securities are to be sold by any method or in any
transaction other than on a national securities exchange, Nasdaq or in the over-the-counter market,
in privately negotiated transactions, or in a combination of such methods, to notify the Company at
least five Business Days prior to the date on which the Holder first offers to sell any such
Registrable Securities.

(e) Each Holder acknowledges and agrees that the Registrable Securities sold pursuant to any
Registration Statement are not transferable on the books of the Company unless the stock
certificate submitted to the transfer agent evidencing such Registrable Securities is accompanied
by a certificate reasonably satisfactory to the Company to the effect that (i) the Registrable
Securities have been sold in accordance with such Registration Statement and (ii) the requirement
of delivering a current prospectus has been satisfied.

(f) Each Holder agrees not to take any action with respect to any distribution deemed to be
made pursuant to such Registration Statement which would constitute a violation of Regulation M
under the Exchange Act or any other applicable rule, regulation or law.

(g) At the end of the Registration Period, the Holders shall discontinue sales of shares
pursuant to such Registration Statement upon receipt of notice from the Company of its intention to
remove from registration the shares covered by such Registration Statement which remain unsold, and
such Holders shall notify the Company of the number of shares registered which remain unsold
immediately upon receipt of such notice from the Company.

Section 6.9 Additional Covenants and Agreements of the Company. With a view to making
available to the Holders the benefits of certain rules and regulations of the SEC which at any time
permit the sale of the Registrable Securities to the public without registration, so long as the
Holders still own Registrable Securities, the Company shall use its reasonable best efforts to:

(a) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act, at all times;

(b) file with the SEC in a timely manner all reports and other documents required of the
Company under the Exchange Act; and

(c) so long as a Holder owns any Registrable Securities, furnish to such Holder, upon any
reasonable request, a written statement by the Company as to its compliance with Rule 144 under the
Securities Act, and of the Exchange Act, a copy of the most recent annual or quarterly report of
the Company, and such other reports and documents of the Company as such Holder may reasonably
request in availing itself of any rule or regulation of the SEC allowing a Holder to sell any such
securities without registration.

Section 6.10 Assignment of Registration Rights. The rights to cause the Company to
register Registrable Securities granted to the Holders by the Company under Section 6.1 may be
assigned by a Holder in connection with a transfer by such Holder of all or a portion of its
Registrable Securities; provided, however, that (i) such transfer complies with all applicable
securities laws; (ii) such Holder gives prior written notice to the Company; and (iii) such
transferee agrees in writing to comply with the terms and provisions of this Agreement, and has
provided the Company with a completed Registration Statement Questionnaire in such form as is
reasonably requested by the Company. Except as specifically permitted by this Section 6.10, the
rights of a Holder with respect to Registrable Securities as set out herein shall not be
transferable to any other Person, and any attempted transfer shall cause all rights of such Holder
therein to be forfeited.

Section 6.11 Waiver of Registration Rights. The rights of any Holder under any
provision of this Article 6 may be waived (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely) or
amended by an instrument in writing signed by Holders holding not less than 60% of the Registrable
Securities (including Warrant Shares issuable upon exercise of the Warrants) and by each Principal
Investor; provided, however, that no consideration shall be offered or paid to any person to amend
or consent to a waiver or modification of any provision of this Section 6 unless the same
consideration also is offered to all Holders of Registrable Securities.

ARTICLE VII

Definitions

Section 7.1 Definitions.  The following capitalized terms have the following meanings:

“Affiliate” means, with respect to any Person (as defined below), any other Person
controlling, controlled by or under direct or indirect common control with such Person (for the
purposes of this definition “control,” when used with respect to any specified Person, shall mean
the power to direct the management and policies of such person, directly or indirectly, whether
through ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” shall have meanings correlative to the foregoing).

“Business Day” means a day Monday through Friday on which banks are generally open for
business in New York City.

“Bylaws” has the meaning set forth in Section 2.3.

“Certificate of Incorporation” has the meaning set forth in Section 2.3.

“Claims” has the meaning set forth in Section 6.7.

“Closing” and “Closings” have the respective meanings set forth in Section 1.3.

“Closing Date” has the meaning set forth in Section 1.3.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Excess Securities” has the meaning set forth in the Introduction.

“Filing Date” has the meaning set forth in Section 6.1.

“Final Prospectus” has the meaning set forth in Section 6.6(a).

“Financial Statements” means the financial statements of the Company included in the SEC
Documents.

“First Closing” has the meaning set forth in Section 1.3.

“First Closing Date” has the meaning set forth in Section 1.3.

“FDCA” has the meaning set forth in Section 2.26.

“Holder” means any person holding Registrable Securities or any person to whom the rights
under Article 6 have been transferred in accordance with Section 6.9 hereof.

“Indemnified Party” has the meaning set forth in Section 6.6(c).

“Indemnifying Party” has the meaning set forth in Section 6.6(c).

“Industry Expert” has the meaning set forth in Section 4.13.

“Intellectual Property” has the meaning set forth in Section 2.8.

“Life Science Product” has the meaning set forth in Section 2.26.

“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
assets, financial condition or prospects of the Company, taken as a whole, or (b) the ability of
the Company to perform its obligations pursuant to the transactions contemplated by this Agreement.

“Nasdaq” means The Nasdaq Global Market.

“Nasdaq Approval” means the receipt by the Company of a written interpretation from Nasdaq
pursuant to Nasdaq Marketplace Rule 4550 stating definitively that the Offering (including the
issuance of the Excess Securities to the Purchasers) will not be considered a “change in control”
under Nasdaq Marketplace Rule 4350(i)(1)(B).

“Offering” means the private placement of the Company’s Securities contemplated by this
Agreement.

“Other Material Contracts” has the meaning set forth in Section 2.6.

“Oxford” has the meaning set forth in the Introduction Section.

“Penalty Period” has the meaning set forth in Section 6.3.

“Person” means any person, individual, corporation, limited liability company, partnership,
trust or other nongovernmental entity or any governmental agency, court, authority or other body
(whether foreign, federal, state, local or otherwise).

“Placement Agents” means, collectively, Banc of America Securities LLC and Fortis Securities
Inc.

“Principal Investors” means Biomedical Value Fund, L.P. and Biomedical Off Shore Value Fund,
Ltd. and MPM BioVentures IV, L.P., MPM BioVentures IV-QP, L.P., MPM Asset Management Investors BV4
LLC, MPM BioEquities Master Fund LP, and MPM BioEquities Investor Fund LLC.

“Proxy Statement” has the meaning set forth in Section 4.9.

“Purchasers” mean the Purchasers whose names are set forth on the signature pages of this
Agreement, and their permitted transferees.

“Purchase Price” has the meaning set forth in Section 1.1.

“register,” “registered” and “registration” refer to the registration effected by preparing
and filing a registration statement in compliance with the Securities Act, and the declaration or
ordering of the effectiveness of such registration statement.

“Registrable Securities” means (i) the Shares and (ii) the Warrant Shares; provided, however,
that securities shall only be treated as Registrable Securities if and only for so long as they (A)
have not been disposed of pursuant to a registration statement declared effective by the SEC, (B)
have not been sold in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act so that all transfer restrictions and restrictive legends with
respect thereto are removed upon the consummation of such sale or (C) are held by a Holder or a
permitted transferee pursuant to Section 6.9.

“Registration Default” has the meaning set forth in Section 6.3.

“Registration Expenses” means all expenses incurred by the Company in complying with Section
6.1 hereof, including, without limitation, all registration, qualification and filing fees,
printing expenses, escrow fees, fees and expenses of counsel for the Company, blue sky fees and
expenses and the expense of any special audits incident to or required by any such registration
(but excluding the fees of legal counsel for any Holder).

“Registration Statement” has the meaning set forth in Section 6.1.

“Registration Penalty” has the meaning set forth in Section 6.3.

“Registration Period” has the meaning set forth in Section 6.4(a).

“Requisite Approval” means either (i) the Nasdaq Approval or (ii) the Stockholder Approval.

“Rule 144” means Rule 144 promulgated under the Securities Act, or any successor rule.

“SEC” means the United States Securities and Exchange Commission.

“SEC Documents” has the meaning set forth in Section 2.6.

“Second Closing” has the meaning set forth in Section 1.3.

“Second Closing Date” has the meaning set forth in Section 1.3.

“Securities” has the meaning set forth in Section 1.1.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute.

“Selling Expenses” means all selling commissions applicable to the sale of Registrable
Securities and all fees and expenses of legal counsel for any Holder.

“Shares” has the meaning set forth in Section 1.1.

“Stockholder Approval” has the meaning set forth in Section 4.9.

“Stockholder Meeting” has the meaning set forth in Section 4.9.

“Venrock” has the meaning set forth in the Introduction Section.

“Warrant Purchase Price” has the meaning set forth in Section 1.1.

“Warrant Shares” has the meaning set forth in Section 2.4.

“Warrants” has the meaning set forth in Section 1.1.

Section 7.2 Certain Interpretations. Except where expressly stated otherwise in this
Agreement, the following rules of interpretation apply to this Agreement: (i) “or” is not
exclusive and “include”, “includes” and “including” are not limiting; (ii) definitions contained in
this Agreement are applicable to the singular as well as the plural forms of such terms; (iii)
references to an agreement or instrument mean such agreement or instrument as from time to time
amended, modified or supplemented; (iv) references to a Person are also to its permitted successors
and assigns; (v) references to an “Article”, “Section”, “Subsection”, “Exhibit” or “Schedule” refer
to an Article of, a Section or Subsection of, or an Exhibit or Schedule to, this Agreement; and
(vi) words importing the masculine gender include the feminine or neuter and, in each case, vice
versa.

ARTICLE VIII

Governing Law; Miscellaneous

Section 8.1 Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement will be
governed by and interpreted in accordance with the laws of the State of New York without regard to
the principles of conflict of laws. Each of the parties hereto irrevocably submits and consents to
the exclusive jurisdiction of the courts of the State of New York located in New York County and
the United States District Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Each party hereto irrevocably waives any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO
THIS WAIVER.

Section 8.2 Counterparts; Signatures by Facsimile. This Agreement may be executed in
two or more counterparts, all of which are considered one and the same agreement and will become
effective when counterparts have been signed by each party and delivered to the other parties.
This Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

Section 8.3 Headings. The headings of this Agreement are for convenience of reference
only, are not part of this Agreement and do not affect its interpretation.

Section 8.4 Severability. If any provision of this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision will be deemed
modified in order to conform with such statute or rule of law. Any provision hereof that may prove
invalid or unenforceable under any law will not affect the validity or enforceability of any other
provision hereof.

Section 8.5 Entire Agreement; Amendments. This Agreement (including all schedules and
exhibits hereto) and any confidentiality agreement entered into between the Company and a Purchaser
(which confidentiality agreement shall continue to be in full force and effect) constitutes the
entire agreement among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than those set forth or
referred to herein or therein. This Agreement supersedes all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof. No provision of this Agreement
may be amended other than by an instrument in writing signed by the Company and the holders of at
least 60%-in-interest of the aggregate number of Shares and Warrant Shares issuable upon exercise
of the Warrants then held by the Purchasers under this Agreement. No provision of this Agreement
may be waived other than by an instrument in writing signed by the party against whom enforcement
of such waiver is sought. Any amendment or waiver effected in accordance with this Section 8.5
shall be binding upon each holder of any Securities purchased under this Agreement at the time
outstanding (including securities into which such Securities are convertible and for which such
Securities are exercisable), each future holder of all such securities, and the Company.

Section 8.6 Notices. All notices required or permitted hereunder shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the party to be notified,
(b) when sent by confirmed email, telex or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (c) five days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (d) one business day
after deposit with a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. The addresses for such communications are:

	 	 	 	If to the Company: Memory Pharmaceuticals Corp.

	 	 	 
	100 Philips Parkway

Montvale, NJ 07645

	 	

	 
	 	 
	Attn: Vice President — Legal Affairs

	 
	 	 
	With a copy to:

	 	Covington & Burling LLP

1330 Avenue of the Americas

New York, NY 10019

Attn: Ellen B. Corenswet

If to a Purchaser: To the address set forth immediately below such Purchaser’s name on the
signature pages hereto. Each party will provide ten days’ advance written notice to the other
parties of any change in its address.

Section 8.7 Successors and Assigns. This Agreement is binding upon and inures to the
benefit of the parties and their successors and assigns. The Company will not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the
Purchasers, and no Purchaser may assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Company, except as permitted in accordance with Section
6.9 hereof.

Section 8.8 Third Party Beneficiaries. This Agreement is intended for the benefit of
the parties hereto, their respective permitted successors and assigns and the Placement Agents, and
is not for the benefit of, nor may any provision hereof be enforced by, any other person.

Section 8.9 Further Assurances. Each party will do and perform, or cause to be done
and performed, all such further acts and things, and will execute and deliver all other agreements,
certificates, instruments and documents, as another party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

Section 8.10 No Strict Construction. The language used in this Agreement is 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.

Section 8.11 Equitable Relief. The Company recognizes that if it fails to perform or
discharge any of its obligations under this Agreement, any remedy at law may prove to be inadequate
relief to the Purchasers. The Company therefore agrees that the Purchasers are entitled to seek
temporary and permanent injunctive relief in any such case. Each Purchaser also recognizes that,
if it fails to perform or discharge any of its obligations under this Agreement, any remedy at law
may prove to be inadequate relief to the Company. Each Purchaser therefore agrees that the Company
is entitled to seek temporary and permanent injunctive relief in any such case.

Section 8.12 Survival of Representations and Warranties. Notwithstanding any
investigation made by any party to this Agreement, all representations and warranties made by the
Company and the Purchasers herein shall survive for a period of one year following the date hereof.

Section 8.13 Independent Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser under this Agreement 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 this Agreement. Nothing contained herein 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, or are deemed affiliates (as
such term is defined under the Exchange Act) with respect to such obligations or the transactions
contemplated by this Agreement. Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

[Signature Page Follows]

1

In Witness Whereof, the undersigned Purchasers and the Company have caused
this Agreement to be duly executed as of the date first above written.

Memory Pharmaceuticals Corp.

By: /s/ James R. Sulat

Name: James R. Sulat

Title: President and Chief Executive Officer

2

Purchaser

BIO MEDICAL VALUE FUND, L.P.

(investor name)

By: Great Point GP, LLC, its General Partner

By: /s/ David E. Kroin

(signature)

David E. Kroin, Managing Director

(print name and title)

Address: 165 Mason Street

3rd Floor

Greenwich, CT 06830

Facsimile: 203.971.3320

3

Purchaser

BIO MEDICAL OFF SHORE VALUE FUND, LTD.

(investor name)

By: GREAT POINT PARTNERS, LLC, its Investment Manager

By: /s/ David E. Kroin

(signature)

David E. Kroin, Managing Director

(print name and title)

Address:

Facsimile:

4

Purchaser

MPM BIOVENTURES IV, L.P.

(investor name)

By: MPM BIOVENTURES IV GP LLC, its General Partner

By: MPM BIOVENTURES IV LLC, its Managing Member

By: /s/ Vaughn Kailian

(signature)

Vaughn Kailian, Member

(print name and title)

MPM BIOVENTURES IV-QP, L.P.

(investor name)

By: MPM BIOVENTURES IV GP LLC, its General Partner

By: MPM BIOVENTURES IV LLC, its Managing Member

By: /s/ Vaughn Kailian

(signature)

Vaughn Kailian, Member

(print name and title)

MPM ASSET MANAGEMENT INVESTORS BV4 LLC.

(investor name)

By: MPM BIOVENTURES IV GP LLC, its General Partner

By: /s/ Vaughn Kailian

(signature)

Vaughn Kailian, Member

(print name and title)

5

Purchaser

MPM BIOEQUITIES MASTER FUND, LP

(investor name)

By: MPM BioEquities GP, L.P., its General Partner

By: MPM BioEquities GP LLC, its General Partner

By:  /s/ Kurt von Emster

(signature)

Kurt von Emster, Manager

(print name and title)

Address: MPM BioEquities

200 Clarendon St., 54th Floor

Boston, MA 02116

Facsimile: 617.425.9314

6

Purchaser

MPM BIOEQUITIES INVESTORS FUND, LLC

(investor name)

By: /s/ Kurt von Emster

(signature)

Kurt von Emster, Manager

(print name and title)

Address: MPM BioEquities

200 Clarendon St., 54th Floor

Boston, MA 02116

Facsimile: 617.425.9314

7

Purchaser

VENROCK ASSOCIATES

(investor name)

By: /s/ Linda H. Hanauer

(signature)

Linda H. Hanauer, Authorized Signatory

(print name and title)

Address: 30 Rockefeller Plaza

Suite 5508

New York, NY 10112

Facsimile: 212.649.5788

8

Purchaser

VENROCK ASSOCIATES II LP.

(investor name)

By: /s/ Linda H. Hanauer

(signature)

Linda H. Hanauer, Authorized Signatory

(print name and title)

Address: 30 Rockefeller Plaza

Suite 5508

New York, NY 10112

Facsimile: 212.649.5788

9

Purchaser

ALTA BioPHARMA PARTNERS III GmbH & Co. Beteiligungs KG

(investor name)

By: ALTA BioPHARMA MANAGEMENT III, LLC

By: /s/ Alix Marduel

(signature)

Alix Marduel, Director

(print name and title)

Address: One Embarcadero Center, Suite 3700

San Francisco, CA 94111

Facsimile: 415.362.6178

10

Purchaser

ALTA BioPHARMA PARTNERS III, L.P.

(investor name)

By: ALTA BioPHARMA MANAGEMENT III, LLC

By: /s/ Alix Marduel

(signature)

Alix Marduel, Director

(print name and title)

Address: One Embarcadero Center, Suite 3700

San Francisco, CA 94111

Facsimile: 415.362.6178

11

Purchaser

ALTA EMBARCADERO BioPHARMA PARTNERS III, LLC

(investor name)

By: /s/ Alix Marduel

(signature)

Alix Marduel, Manager

(print name and title)

Address: One Embarcadero Center, Suite 3700

San Francisco, CA 94111

Facsimile: 415.362.6178

12

Purchaser

For An Amount of 850,000 USD

GIMV NV

(investor name)

By: /s/ Dirk Beeusaert

(signature)

Dirk Beeusaert, Chief Legal Officer

(print name and title)

By: /s/ Marc Vercruysse

(signature)

Marc Vercruysse, Chief Financial Officer

(print name and title)

Address: Karel Oomsstraat 37

2018 Antwerp

Belgium

Facsimile: +32.3.290.21.05

13

Purchaser

For An Amount of 150,000 USD

Adviesbeheer GIMV Life Sciences NV

(investor name)

By: /s/ Dirk Beeusaert

(signature)

Dirk Beeusaert, Special Mandatory

(print name and title)

By: /s/ Marc Vercruysse

(signature)

Marc Vercruysse, Director

(print name and title)

Address: Karel Oomsstraat 37

2018 Antwerp

Belgium

Facsimile: +32.3.290.21.05

14

Purchaser

Anthony B. Evnin

(investor name)

By: /s/ Anthony B. Evnin

(signature)

Anthony B. Evnin

(print name and title)

Address: 364 East Middle Patent Road

Greenwich, CT 06831

Facsimile: 212.649.5788

15

Purchaser

Keyes Sulat Revocable Trust

(investor name)

By: /s/ James R. Sulat

(signature)

James R. Sulat, Trustee

(print name and title)

Address: c/o Memory Pharmaceuticals

100 Philips Parkway

Montvale, NY 07645

Facsimile:

16

Purchaser

Michael E. Meyers

(investor name)

By: /s/ Michael E. Meyers

(signature)

Michael E. Meyers

(print name and title)

Address: 181 E. 90th Street

11th Floor

New York, NY 10128

Facsimile: 212.410.7888

17

EXHIBIT A-1

SCHEDULE OF PURCHASERS FOR THE FIRST CLOSING

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchaser	 	Shares	 	Warrants	 	Purchase Price
	Biomedical Value Fund LP
	 	 	5,277,966	 	 	 	1,656,078	 	 	$	6,065,552.01	 
	Biomedical Offshore Value Fund Ltd.
	 	 	4,496,046	 	 	 	1,410,733	 	 	$	5,166,952.69	 
	MPM BioVentures IV, L.P.
	 	 	180,691	 	 	 	56,695	 	 	$	207,653.89	 
	MPM BioVentures IV-QP, L.P.
	 	 	8,600,908	 	 	 	2,698,726	 	 	$	9,884,348.63	 
	MPM Asset Management Investors BV4 LLC
	 	 	294,269	 	 	 	92,333	 	 	$	338,180.22	 
	MPM BioEquites Master Fund LP
	 	 	690,464	 	 	 	216,648	 	 	$	793,496.04	 
	MPM BioEquites Investor Fund LLC
	 	 	7,680	 	 	 	2,409	 	 	$	8,825.93	 
	Venrock Associates*
	 	 	359,255	 	 	 	89,813	 	 	$	409,999.68	 
	Venrock Associates II, L.P.*
	 	 	516,977	 	 	 	129,244	 	 	$	589,999.97	 
	Alta BioPharma Partners III GmbH & Co. Beteiligungs KG
	 	 	107,798	 	 	 	26,949	 	 	$	123,024.41	 
	Alta BioPharma Partners III, L.P.
	 	 	1,605,110	 	 	 	401,277	 	 	$	1,831,831.73	 
	Alta Embarcadero BioPharma Partners III, LLC
	 	 	39,557	 	 	 	9,889	 	 	$	45,144.40	 
	GIMV
	 	 	744,797	 	 	 	186,199	 	 	$	849,999.55	 
	Adviesbeheer GIMV Life Sciences
	 	 	131,435	 	 	 	32,858	 	 	$	150,000.10	 
	Tony Evnin*
	 	 	87,623	 	 	 	21,905	 	 	$	99,999.66	 
	Jim Sulat*
	 	 	87,623	 	 	 	21,905	 	 	$	99,999.66	 
	Michael Meyers*
	 	 	17,525	 	 	 	4,381	 	 	$	20,000.38	 
	Total
	 	 	23,245,724	 	 	 	7,058,042	 	 	$	26,685,008.95	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

* Denotes that Purchaser is an Affiliate of a director of the Company.

18

EXHIBIT A-2

SCHEDULE OF PURCHASERS FOR THE SECOND CLOSING

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchaser	 	Shares	 	Warrants	 	Purchase Price
	Biomedical Value Fund LP
	 	 	1,346,349	 	 	 	—	 	 	$	1,494,447.39	 
	Biomedical Offshore Value Fund Ltd.
	 	 	1,146,890	 	 	 	—	 	 	$	1,273,047.90	 
	MPM BioVentures IV, L.P.
	 	 	46,092	 	 	 	—	 	 	$	51,162.12	 
	MPM BioVentures IV-QP, L.P.
	 	 	2,193,994	 	 	 	—	 	 	$	2,435,333.34	 
	MPM Asset Management Investors BV4 LLC
	 	 	75,065	 	 	 	—	 	 	$	83,322.15	 
	MPM BioEquites Master Fund LP
	 	 	176,129	 	 	 	—	 	 	$	195,503.19	 
	MPM BioEquites Investor Fund LLC
	 	 	1,959	 	 	 	—	 	 	$	2,174.49	 
	Total
	 	 	4,986,478	 	 	 	—	 	 	$	5,534,990.58	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

* DENOTES THAT PURCHASER IS AN AFFILIATE OF A DIRECTOR OF THE COMPANY.

19

EXHIBIT B

FORM OF WARRANT

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS OR UNLESS
OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT
THAT AN OPINION IS REQUIRED PURSUANT TO THE AGREEMENT UNDER WHICH THE SECURITIES WERE ISSUED.

MEMORY PHARMACEUTICALS CORP.

WARRANT TO PURCHASE COMMON STOCK

No. W- October      , 2006

Void After October __, 2011

This Certifies That, for value received, , with its principal office at , or its
successors and permitted assigns (the “Holder”), is entitled to subscribe for and purchase at the
Exercise Price (defined below) from Memory Pharmaceuticals Corp., a Delaware corporation, with its
principal office at 100 Philips Parkway, Montvale, New Jersey 07645 (the “Company”) up to shares
of the common stock of the Company, par value $.001 per share (the “Common Stock”), subject to
adjustment as provided herein. This Warrant is one of a series of Warrants being issued pursuant
to the terms of the Securities Purchase Agreement, dated October 5, 2006, among the Company and the
original Holder of this Warrant and the other parties named therein (the “Purchase Agreement”).
Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such
terms in the Purchase Agreement.

Definitions. As used herein, the following terms shall have the meanings ascribed to
them below:

“Exercise Period” shall mean the period commencing on the date hereof and, unless sooner
exercised or terminated as provided below, ending on the earlier of (i) October      , 2011 at 5:00
p.m. and (ii) ten Business Days after notice from the Company, in accordance with Section 11 of
this Warrant, provided that such notice may only be given by the Company if the closing price of
the Common Stock on the Nasdaq Global Market or the Nasdaq Capital Market, as applicable (or, if
the Common Stock is not traded on the Nasdaq Global Market or the Nasdaq Capital Market, the
closing bid price of the Common Stock in the over-the-counter market), for a period of 30
consecutive trading days at any time after the date of this Warrant, is greater than $3.00 per
share.

“Exercise Price” shall mean $_.     per share, subject to adjustment pursuant to Section 5
below.

“Warrant Shares” shall mean the shares of the Common Stock issued upon exercise of this
Warrant, subject to adjustment pursuant to the terms herein, including but not limited to
adjustment pursuant to Section 5 below.

Exercise of Warrant. 

Method of Exercise. The rights represented by this Warrant may be exercised in whole or in
part at any time during the Exercise Period, by delivery of the following to the Company at its
address set forth above (or at such other address as it may designate by notice in writing to the
Holder):

an executed Notice of Exercise in the form attached hereto;

payment of the Exercise Price either (i) in cash or by check or wire transfer of immediately
available funds, or (ii) pursuant to a Cashless Exercise, as described below; and

this Warrant.

Unless otherwise agreed in writing by the Holder, immediately prior to the expiration of the
Exercise Period, the portion of this Warrant not exercised prior thereto shall automatically be
deemed to be exercised in full in the manner set forth in Section 2.2, without any further action
on behalf of the Holder; provided, however, that in the event that the cashless exercise formula
set forth in Section 2.2 yields a result that is less than or equal to zero, then the unexercised
portion of this Warrant shall automatically terminate and become void.

Upon the exercise of the rights represented by this Warrant, shares of Common Stock shall be issued
for the Warrant Shares so purchased, and shall be registered in the name of the Holder or persons
affiliated with the Holder, if the Holder so designates, within a reasonable time after the rights
represented by this Warrant shall have been so exercised and shall be issued in certificate form
and delivered to the Holder, if so requested.

The person in whose name any Warrant Shares are to be issued upon exercise of this Warrant shall be
deemed to have become the holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date of issuance of the
shares of Common Stock, except that, if the date of such surrender and payment is a date when the
stock transfer books of the Company are closed, such person shall be deemed to have become the
holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open.

Cashless Exercise. Notwithstanding any provisions herein to the contrary, if, at any time
during the Exercise Period, the Current Market Price (as defined below) of one share of Common
Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu
of exercising this Warrant by payment of cash, the Holder may exercise this Warrant by a cashless
exercise by surrender of this Warrant at the principal office of the Company together with the
properly endorsed Notice of Exercise and the Company shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

	 	 	 	 	 
	
 
	 	X = Y (B-A)
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	Where:

	 	B

X =
	 	

the number of shares of Common Stock to be issued to the Holder.

	 	 	 	Y = the number of shares of Common Stock purchasable upon
exercise of all of the Warrant or, if only a portion of the Warrant is being
exercised, the portion of the Warrant being exercised.

	 	 	 
	A =

B =

	 	the Exercise Price.

the Current Market Price of one share of Common Stock.

	 	 	 	“Current Market Price” means on any particular date:

if the Common Stock is traded on the Nasdaq Capital Market or the Nasdaq Global Market, the
average of the closing prices of the Common Stock on such market over the five trading days ending
immediately prior to the applicable date of valuation;

if the Common Stock is traded on any registered national stock exchange but is not traded on
the Nasdaq Capital Market or the Nasdaq Global Market, the average of the closing prices of the
Common Stock on such exchange over the five trading days ending immediately prior to the applicable
date of valuation

if the Common Stock is traded over-the-counter, but not on the Nasdaq Capital Market, the
Nasdaq Global Market or a registered national stock exchange, the average of the closing bid prices
over the 30-day period ending immediately prior to the applicable date of valuation; and

if there is no active public market for the Common Stock, the value thereof, as determined in
good faith by the Board of Directors of the Company upon due consideration of the proposed
determination thereof by the Holder.

Partial Exercise. If this Warrant is exercised in part only, the Company shall, upon
surrender of this Warrant, execute and deliver, within 10 days of the date of exercise, a new
Warrant evidencing the rights of the Holder, or such other person as shall be designated in the
Notice of Exercise, to purchase the balance of the Warrant Shares purchasable hereunder. In no
event shall this Warrant be exercised for a fractional Warrant Share, and the Company shall not
distribute a Warrant exercisable for a fractional Warrant Share. Fractional Warrant Shares shall
be treated as provided in Section 6 hereof.

2.4 Delivery. Certificates for shares purchased hereunder shall be transmitted by the
transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker
with the Depository Trust Company through its Deposit Withdrawal Agent Commission system if the
Company is a participant in such system (and so long as the legend may be removed in accordance
with Section 3.8(b) of the Purchase Agreement), and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise.

Covenants of the Company.

Covenants as to Warrant Shares. The Company covenants and agrees that all Warrant Shares that
may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be
validly issued, fully paid and nonassessable, and free from all taxes, liens and charges with
respect to the issuance thereof. The Company further covenants and agrees that the Company will at
all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a
sufficient number of shares of its Common Stock to provide for the exercise of the rights
represented by this Warrant (taking into account any adjustments and restrictions set forth in
Sections 5, 6, and 7 hereof). If at any time during the Exercise Period the number of authorized
but unissued shares of Common Stock shall not be sufficient to permit exercise of this Warrant, the
Company will take such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of Common Stock (or other securities as provided
herein) to such number of shares as shall be sufficient for such purposes.

Section 8.14 No Impairment. Except and to the extent as waived or consented to by the Holder
or otherwise in accordance with Section 10 hereof, the Company will not, by amendment of its
Certificate of Incorporation (as such may be amended from time to time), or through any means,
avoid or seek to avoid the observance or performance of any of the terms to be observed or
performed hereunder by the Company, but will at all times in good faith assist in the carrying out
of all the provisions of this Warrant and in the taking of all such action as may be necessary or
appropriate in order to protect the exercise rights of the Holder against impairment.

Section 8.15 Notices of Record Date. In the event of any taking by the Company of a record of
the holders of any class of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend (other than a cash dividend which is the same as cash dividends
paid in previous quarters) or other distribution, the Company shall mail to the Holder, at least
ten days prior to the date specified herein, a notice specifying the date on which any such record
is to be taken for the purpose of such dividend or distribution.

3.4 Charges, Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of
this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding
tax (other than related to the income of the Holder), transfer agent fee or other incidental tax or
expense in respect of the issuance of such certificates, all of which taxes and expenses shall be
paid by the Company; provided, however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the registration of any certificates for
Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof.

Representations of Holder.

Section 8.16 Acquisition of Warrant for Personal Account. The Holder represents and warrants
that it is acquiring the Warrant and the Warrant Shares solely for its account and not with a
present view toward the public or distribution of said Warrant or Warrant Shares or any part
thereof and has no intention of selling or distributing said Warrant or Warrant Shares or any
arrangement or understanding with any other persons regarding the sale or distribution of said
Warrant or, except in accordance with the provisions of Article 6 of the Purchase Agreement, the
Warrant Shares, and except as would not result in a violation of the Securities Act. The Holder
will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) the Warrant except in
accordance with the Securities Act and will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or
take a pledge of) the Warrant Shares except in accordance with the provisions of Article 6 of the
Purchase Agreement or pursuant to and in accordance with the Securities Act.

Section 8.17 Securities Are Not Registered.

The Holder understands that the offer and sale of the Warrant or the Warrant Shares have not
been registered under the Securities Act on the basis that no distribution or public offering of
the stock of the Company is to be effected. The Holder realizes that the basis for the exemption
may not be present if, notwithstanding its representations, the Holder has a present intention of
acquiring the securities for a fixed or determinable period in the future, selling (in connection
with a distribution or otherwise), granting any participation in, or otherwise distributing the
securities. Except in accordance with Article 6 of the Purchase Agreement, the Holder has no such
present intention.

The Holder recognizes that the Warrant and the Warrant Shares must be held indefinitely unless
they are subsequently registered under the Securities Act or an exemption from such registration is
available. The Holder recognizes that the Company has no obligation to register the Warrant or,
except as provided in the Purchase Agreement, the Warrant Shares, or to comply with any exemption
from such registration.

The Holder is aware that neither the Warrant nor the Warrant Shares may be sold pursuant to
Rule 144 adopted under the Securities Act unless certain conditions are met, including, among other
things, the existence of a public market for the shares, the availability of certain current public
information about the Company, the resale following the required holding period under Rule 144 and
the number of shares being sold during any three month period not exceeding specified limitations.
Holder is aware that any such sale made in reliance on Rule 144, if Rule 144 is available, may be
made only in accordance with the terms of Rule 144 or in accordance with the provisions of Rule
144(k).

Section 8.18 Disposition of Warrant and Warrant Shares.

The Holder understands that the Warrants and the Warrant Shares have not been and are not
being registered under the Securities Act (other than as contemplated in Article 6 of the Purchase
Agreement) or any applicable state securities laws and, consequently, the Purchaser may have to
bear the risk of owning the Warrant and the Warrant Shares for an indefinite period of time because
such securities may not be transferred unless (i) the resale of such securities is registered
pursuant to an effective registration statement under the Securities Act; (ii) the Holder has
delivered to the Company an opinion of counsel (in form, substance and scope reasonably
satisfactory to the Company) to the effect that the Warrants or Warrant Shares to be sold or
transferred may be sold or transferred pursuant to an exemption from such registration; or
(iii) such securities are sold or transferred pursuant to Rule 144 or Rule 144(k). Notwithstanding
the foregoing provisions of this Section 4.3 above, no such restrictions shall apply to a transfer
or assignment by a Holder that is: (i) a partnership transferring to its partners or former
partners in accordance with partnership interests; (ii) a corporation transferring to a
wholly-owned subsidiary or a parent corporation that owns all of the capital stock of the Holder;
(iii) a limited liability company transferring to its members or former members in accordance with
their interest in the limited liability company; (iv) an affiliated investment fund transferring to
another affiliated investment fund; or (v) an individual transferring to the Holder’s family member
or trust for the benefit of an individual Holder; provided that in each case the transfer is
effected in accordance with applicable securities laws and the transferee agrees in writing to be
subject to the terms of this Warrant and the Purchase Agreement to the same extent as if the
transferee were an original Holder hereunder and thereunder.

The Holder understands and agrees that all certificates evidencing the Warrant Shares to be
issued to the Holder may bear a legend in substantially the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES. THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS OFFERED,
SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO
REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED TO THE EXTENT THAT SUCH OPINION IS REQUIRED PURSUANT TO
THAT CERTAIN SECURITIES PURCHASE AGREEMENT UNDER WHICH THE SECURITIES WERE
ISSUED.

Adjustment of Exercise Price. In the event of changes in the outstanding Common
Stock of the Company by reason of stock dividends, split-ups, recapitalizations, reclassifications,
combinations or exchanges of shares, separations, reorganizations, liquidations, or the like (other
than as set forth in Section 7), the number and class of shares available under the Warrant in the
aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder, on exercise
for the same aggregate Exercise Price, the total number, class, and kind of shares as the Holder
would have owned had the Warrant been exercised prior to the event and had the Holder continued to
hold such shares until after the event requiring adjustment. The form of this Warrant need not be
changed because of any adjustment in the number, class, and kind of shares subject to this Warrant.
The Company shall promptly provide a certificate from its Chief Executive Officer notifying the
Holder in writing of any adjustment in the Exercise Price and/or the total number, class, and kind
of shares issuable upon exercise of this Warrant, which certificate shall specify the Exercise
Price and number, class and kind of shares under this Warrant after giving effect to such
adjustment.

Fractional Shares. No fractional shares shall be issued upon the exercise of this
Warrant as a consequence of any adjustment pursuant hereto. All Warrant Shares (including
fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining
whether the exercise would result in the issuance of any fractional share. If, after aggregation,
the exercise would result in the issuance of a fractional share, the Company shall, in lieu of
issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash
equal to the product resulting from multiplying the fair market value of the Common Stock on the
date of exercise of the Warrant by such fraction.

Certain Events.  In the event of, at any time during the Exercise Period, any capital
reorganization, or any reclassification of the capital stock of the Company (other than a change in
par value or from par value to no par value or no par value to par value or as a result of a stock
dividend or subdivision, split-up or combination of shares), or the consolidation or merger of the
Company with or into another corporation (other than a merger solely to effect a reincorporation of
the Company into another state), in each case, in which the stockholders of the Company immediately
prior to such capital reorganization, reclassification, consolidation or merger, will hold less
than a majority of the outstanding shares of the Company or resulting corporation immediately after
such capital reorganization, reclassification, consolidation or merger, or the sale or other
disposition of all or substantially all of the properties and assets of the Company and its
subsidiaries, taken as a whole, in its entirety to any other person, other than sales or other
dispositions that do not require stockholder approval (each, an “Event”), then, as a condition of
such Event, lawful and adequate provision shall be made whereby each Holder shall thereafter have
the right to purchase and receive upon the basis and upon the terms and conditions herein specified
and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant,
such shares of stock, securities or assets as would have been issuable or payable with respect to
or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately
theretofore issuable upon exercise of the Warrant, had such Event not taken place, and in any such
case appropriate provision shall be made with respect to the rights and interests of each Holder to
the end that the provisions hereof (including, without limitation, provision for adjustment of the
Exercise Price) shall thereafter be applicable, as nearly equivalent as may be practicable in
relation to any shares of stock, securities or assets thereafter deliverable upon the exercise
hereof. If holders of Common Stock are given any choice as to the securities, cash or property to
be received in an Event, then the Holder shall be given the same choice as to the securities, cash
or assets it receives upon any exercise of this Warrant following such Event. The Company shall
not effect any such Event unless prior to or simultaneously with the consummation thereof the
successor corporation (if other than the Company) resulting from such consolidation or merger, or
the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or
entity shall assume the obligation to deliver to the Holder, at the last address of the Holder
appearing on the books of the Company, such shares of stock, securities or assets as, in accordance
with the foregoing provisions, the Holder may be entitled to purchase, and the other obligations
under this Warrant. The provisions of this Section 7 shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, sales, transfers or other
dispositions.

No Stockholder Rights. This Warrant in and of itself shall not entitle the Holder to
any voting rights or other rights as a stockholder of the Company.

Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen,
mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may
reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or
destroyed. Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any
time enforceable by anyone.

ARTICLE IX Modifications and Waiver. This Warrant and any provision hereof
may be changed, waived, discharged or terminated only by an instrument in writing signed by the
Company and (i) Purchasers holding Warrants representing at least 60% of the number of Warrant
Shares then issuable upon exercise of the then unexercised Warrants, provided, however, that such
modification, amendment or waiver is made with respect to all unexercised Warrants issued pursuant
to the Purchase Agreement and does not adversely affect the Holder without adversely affecting all
holders of Warrants in a similar manner; or (ii) the Holder.

ARTICLE X Notices, etc. All notices required or permitted hereunder shall
be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed email, telex or facsimile if sent during normal business hours
of the recipient, if not, then on the next business day, (c) five days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (d) one business day
after deposit with a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the Company at the address
listed on the signature page and to the Holders at the addresses on the Company records, or at such
other address as the Company or Holder may designate by ten days’ advance written notice to the
other party hereto.

Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained herein.

Governing Law. This Warrant and all rights, obligations and liabilities hereunder
shall be governed by the laws of the State of New York without regard to the principles of conflict
of laws. The Company and the Holder each irrevocably submit and consent to the exclusive
jurisdiction of the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of any suit, action,
proceeding or judgment relating to or arising out of this Warrant. The Company and the Holder each
irrevocably waive any objection to the laying of venue of any such suit, action or proceeding
brought in such courts and irrevocably waive any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. THE COMPANY AND EACH HOLDER
WAIVE ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

Descriptive Headings. The descriptive headings of the several paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. The
language in this Warrant shall be construed as to its fair meaning without regard to which party
drafted this Warrant.

Severability.  The invalidity or unenforceability of any provision of this Warrant in
any jurisdiction shall not affect the validity or enforceability of such provision in any other
jurisdiction, or affect any other provision of this Warrant, which shall remain in full force and
effect.

[Signature Page Follows]

20

In Witness Whereof, the Company has caused this Warrant to be executed by its duly
authorized officer as of      , 2006.

	 	 	 
	Memory Pharmaceuticals Corp.

	 
	 	 
	By:

	 	

	 

	 	 
	Name: James R. Sulat

	 	

	Title: President and Chief Executive Officer

	 
	 	 
	Address:

	 	100 Philips Parkway

Montvale, NJ 07645

Attention: President and Chief
Executive Officer

Facsimile: (201) 802-7190

21

NOTICE OF EXERCISE

TO: Memory Pharmaceuticals Corp.

(1) The undersigned hereby elects to (check one box only):

• purchase      shares of the Common Stock of Memory Pharmaceuticals Corp. (the
“Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full for such shares.

• purchase the number of shares of Common Stock of the Company by cashless exercise
pursuant to the terms of the Warrant as shall be issuable upon cashless exercise of the
portion of the Warrant relating to      shares.

(2) Please issue a certificate or certificates representing said shares of Common Stock in the name
of the undersigned or in such other name as is specified below:

(Name)

(Address)

(3) The undersigned represents that (i) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention of
distributing or reselling such shares; (ii) the undersigned is aware of the Company’s business
affairs and financial condition and has acquired sufficient information about the Company to reach
an informed and knowledgeable decision regarding its investment in the Company; (iii) the
undersigned is experienced in making investments of this type and has such knowledge and background
in financial and business matters that the undersigned is capable of evaluating the merits and
risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned is
aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under
the Securities Act unless certain conditions are met and until the undersigned has held the shares
for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is
the availability of current information to the public about the Company and the Company has not
made such information available and has no present plans to do so; and (v) the undersigned agrees
not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and
until there is then in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with said registration statement,
or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company,
stating that such registration is not required.

	 	 	 
	(Date)

	 	(Signature)

(Print name)
	 
	 	 

22

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