Document:

Certificate of Designations

 EXHIBIT 4.1 
  
 CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS 
  
 OF 
  
 SERIES A PREFERRED STOCK 
  
 OF 
  
 BIOSPHERE MEDICAL, INC. 
  
 (Pursuant to Section 151 of 
 the Delaware General Corporation Law) 
  
 Biosphere Medical, Inc. (the “Corporation”), a
corporation organized and existing under the laws of the State of Delaware, hereby certifies that, pursuant to authority conferred on its Board of Directors (the “Board”) by the Amended and Restated Certificate of
Incorporation of the Corporation, the following resolution was adopted by a duly authorized committee of the Board consisting solely of independent directors (within the meaning of Nasdaq Market Place Rule 4200(a)(15)) at a meeting of such committee
duly held on November 3, 2004, which resolution remains in full force and effect on the date hereof: 
  
 RESOLVED, that there is hereby established a series of the Corporation’s authorized Preferred Stock (the “Preferred Stock”) having a
par value of $0.01 per share, which series shall be designated as “Series A Preferred Stock” (the “Series A Preferred Stock”) and shall consist of Twelve Thousand (12,000) shares. The shares of Series A Preferred Stock shall have
the voting powers, designations, preferences and other special rights, and qualifications, limitations and restrictions thereof set forth below: 
  
 1. Certain Definitions. As used herein, the following terms shall have the following meanings: 
  
 (a) “Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any
Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,”
“controlling” and “controlled” have meanings correlative to the foregoing. 
  
 (b) “Business Day” shall mean a day, other than a Saturday or Sunday, on which banks in New York City are open for the general
transaction of business. 
  
 (c)
“Cerberus” means Cerberus Capital Management, L.P., Cerberus Partners, L.P. and/or one or more of its Affiliates. 

 (d) “Fair Market Value” shall mean, with respect to any listed security, its
Market Price, and with respect to any property or assets other than cash or listed securities, the fair value thereof determined in good faith by the Board and the Requisite Holders. 
  
 (e) “Initial Issue Date” shall mean the date that shares of Series A Preferred Stock are first
issued by the Corporation. 
  
 (f) “Liquidation
Event” shall mean: (i) any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary; (ii) a consolidation or merger of the Corporation with or into any other corporation or corporations which results
in the stockholders of the Corporation owning less than fifty percent (50%) of the outstanding capital stock of the surviving entity; (iii) a sale, lease or exchange of all or substantially all of the assets of the Corporation; (iv) the issuance
and/or sale by the Corporation in one or a series of related transactions of shares of Common Stock (or securities convertible or exchangeable into or exercisable for shares of Common Stock) constituting a majority of the shares of Common Stock
outstanding immediately following such issuance (treating all securities convertible or exchangeable into or exercisable for shares of Common Stock as having been fully converted, exchanged and exercised, without regard to any exercise, conversion
or exchange limitations therein); (v) any other form of acquisition or business combination where the Corporation is the target of such acquisition and where a change in control occurs such that the Person seeking to acquire the Corporation has the
power to elect a majority of the Board as a result of the transaction; and (vi) any other liquidity events that the Requisite Holders and the Board mutually agree shall constitute a Liquidation Event; provided, however, that the
issuance of (i) Series A Preferred Stock on the Initial Issue Date or as dividends on such Series A Preferred Stock, or (ii) Common Stock in conversion of the Series A Preferred Stock or the Warrants issued on the Initial Issue Date, shall not
constitute a Liquidation Event. 
  
 (g) “Market
Price”, as of a particular date (the “Valuation Date”), shall mean the following with respect to any class of listed securities: (A) if such security is then listed on a national stock exchange, the Market Price
shall be the average of the closing sale price of one share of such security on such exchange on the ten (10) trading days prior to the Valuation Date, provided that if such security has not traded in the prior ten (10) trading sessions, the Market
Price shall be the average closing price of such security in the most recent ten (10) trading sessions during which such security has traded; (B) if such security is then included in The Nasdaq Stock Market, Inc. (“Nasdaq”), the Market
Price shall be the average of the closing sale price of one share of such security on Nasdaq on the ten (10) trading days prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low ask price
quoted on Nasdaq as of the end of the ten (10) trading days prior to the Valuation Date, provided that if such security has not traded in the prior ten (10) trading sessions, the Market Price shall be the average closing price of one share of such
security in the most recent ten (10) trading sessions during which such security has traded; (C) if such security is then included in the Over-the-Counter Bulletin Board, the Market Price shall be the average of the closing sale price of one share
of such security on the Over-the-Counter Bulletin Board on the ten (10) trading days prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low ask price quoted on the Over-the-Counter
Bulletin Board as of the end of the ten (10) trading days prior to the Valuation Date, provided that if such stock has not traded in the prior ten (10) trading sessions, the Market Price shall be the average closing price of 
  

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 one share of such security in the most recent ten (10) trading sessions during which such security has traded; or (D) if
such security is then included in the “pink sheets,” the Market Price shall be the average of the closing sale price of one share of such security on the “pink sheets” on the ten (10) trading days prior to the Valuation Date or,
if no such closing sale price is available, the average of the high bid and the low ask price quoted on the “pink sheets” as of the end of the ten (10) trading days prior to the Valuation Date, provided that if such stock has not traded in
the prior ten (10) trading sessions, the Market Price shall be the average closing price of one share of such security in the most recent ten (10) trading sessions during which such security has traded. 
  
 (h) “Person” shall mean any individual, partnership,
Corporation, limited liability Corporation, joint venture, association, joint stock Corporation, trust, unincorporated organization, government or agency or political subdivision thereof, or other entity. 
  
 (i) “Requisite Holders” if Cerberus and Sepracor Inc.
are holders of the then outstanding shares of Series A Preferred Stock, then, Requisite Holders shall mean Cerberus and Sepracor Inc., otherwise, Requisite Holders shall mean the holders of a majority of the then outstanding shares of Series A
Preferred Stock. 
  
 (j) “Series A Stated
Value” shall mean, with respect to each share of Series A Preferred Stock, One Thousand Dollars ($1,000.00), which Series A Stated Value shall be subject to appropriate adjustment pursuant to this Section 1(j) from time to time in the
event of any stock dividend, stock split, reverse stock split, reclassification, stock combination or other recapitalization affecting the Series A Preferred Stock. 
  
 2. Designation; Preference and Ranking. The Series A Preferred Stock shall consist of
Twelve Thousand (12,000) shares. The preferences of each share of Series A Preferred Stock with respect to dividend payments and distributions of the Corporation’s assets upon voluntary or involuntary liquidation, dissolution or winding up of
the Corporation shall be equal to the preferences of every other share of Series A Preferred Stock from time to time outstanding in every respect. Notwithstanding the terms and conditions of any series of Preferred Stock now or hereafter existing
providing that the Series A Preferred Stock shall rank junior, pari passu or senior thereto, the Series A Preferred Stock shall rank senior to all other outstanding series of Preferred Stock and senior to the Common Stock, par value $0.01 per share
(the “Common Stock”), of the Corporation as to the payment of dividends and the distribution of assets upon voluntary or involuntary liquidation, dissolution or winding up of the Corporation. 
  
 3. Dividend Rights. 
  
 (a) Each holder of Series A Preferred Stock, in preference and priority to
the holders of all other classes of stock, shall be entitled to receive, with respect to each share of Series A Preferred Stock then outstanding and held by such holder of Series A Preferred Stock, dividends, commencing from the date of issuance of
such share of Series A Preferred Stock, at the rate of six percent (6%) per annum (on the basis of a 360 day year) of the Series A Stated Value (the “Series A Preferred Dividends”). The Series A Preferred Dividends shall be
cumulative, whether or not earned or declared, and shall be paid quarterly in arrears on the first day of January, April, July and October in each year that Series A Preferred Stock is outstanding, and shall be prorated for periods shorter than one
quarter. The Series A Preferred Dividends 
  

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 shall be paid to each holder of Series A Preferred Stock out of legally available funds or, at the Corporation’s
election, through the issuance of such number of additional shares of Series A Preferred Stock (rounded down to the nearest whole share with any fractional shares being issued in cash in an amount equal to the Series A Stated Value of such
fractional share of Series A Preferred Stock) determined by dividing the amount of the total accrued but unpaid dividends then outstanding on such holder’s shares of the Series A Preferred Stock by the Series A Conversion Price then in effect;
provided, however, the number of shares of Series A Preferred Stock that may be issued as a dividend upon the Corporation’s election under this sentence shall be limited (i) if and to the extent that the Corporation
shall have received written advice from the Nasdaq that such issuance would result in a change of control (within the meaning of Nasdaq Marketplace Rule 4350(i)(1)(B), as amended from time to time (“NASD Rule 4350(i)(1)(B)”)
or (ii) if and to the extent such issuance would result in the issuance of more than 19.9% of the Common Stock outstanding as of the Initial Issue Date, for the purposes of the Nasdaq Marketplace Rule 4350(i)(1)(D), as amended from time to time
(“NASD Rule 4350(i)(1)(D)”); provided, further, however, if the immediately preceding proviso shall in fact limit the issuance of any shares of Series A Preferred Stock in payment of
a given dividend, then the Corporation’s election to pay such dividend in shares of Series A Preferred Stock shall be ineffective to the extent of such limitation, and such dividend shall instead thereupon be paid in cash by the Corporation out
of legally available funds. Any election by the Corporation to pay dividends in cash or shares of Series A Preferred Stock shall be made uniformly with respect to all outstanding shares of Series A Preferred Stock for a given dividend period.

  
 (b) No dividends shall be paid on any Common Stock of the
Corporation or any other capital stock of the Corporation as long as any Series A Preferred Stock is outstanding. 
  
 (c) In the event that the Corporation shall at any time pay a dividend on the Common Stock (other than a dividend payable solely in shares of Common
Stock) or any other class or series of capital stock of the Corporation, the Corporation shall, at the same time, pay to each holder of Series A Preferred Stock a dividend equal to the dividend that would have been payable to such holder if the
shares of Series A Preferred Stock held by such holder had been converted into Common Stock on the date of determination of holders of Common Stock entitled to receive such dividends. 
  
 4. Liquidation Rights. 
  
 (a) Upon the consummation of a Liquidation Event, the holders of Series A Preferred Stock shall be entitled to receive, on a
pro rata basis, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the holders of the Common Stock, or any other class of capital stock of the Corporation, an amount equal to the Series A
Stated Value for each share of Series A Preferred Stock then held by such holder, plus an amount equal to all declared but unpaid dividends, and all accrued but unpaid dividends set forth in Section 3(a) above, on each such share of Series A
Preferred Stock (the “Liquidation Preference Amount”). If, upon the occurrence of any such Liquidation Event, the assets and funds to be distributed among the holders of Series A Preferred Stock shall be insufficient to
permit the payment to such holders of the aggregate Liquidation Preference Amount, then the entire assets and funds of the Corporation legally available for distribution shall be distributed ratably among the holders of Series A Preferred Stock in
proportion to the Liquidation 
  

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 Preference Amount each such holder is entitled to receive, and no assets of the Corporation shall be distributed to the
holders of the Common Stock or any other class or series of capital stock of the Corporation in respect of such Common Stock or such other stock unless and until the Liquidation Preference Amount payable to all holders of the Series A Preferred
Stock has been indefeasibly paid in full. 
  
 (b) After payment of
the aggregate Liquidation Preference Amount to the holders of the Series A Preferred Stock as set forth in Section 4(a) above and subject to any other distribution that may be required with respect to any future series of Preferred Stock that
may from time to time come into existence, the remaining assets and funds of the Corporation, if any, available for distribution to stockholders shall be distributed ratably among the holders of the Series A Preferred Stock, any other class or
series of capital stock that participates with the Common Stock in the distribution of assets upon any Liquidation Event (or similar event) and the Common Stock, with the holders of the Series A Preferred Stock deemed to hold that number of shares
of Common Stock into which such shares of Series A Preferred Stock are then convertible. 
  
 (c) Whenever the distributions provided for in this Section 4 shall be payable in property other than cash, the value of such distribution shall be the Fair Market Value thereof. All distributions (including
distributions other than cash) made hereunder shall be made pro rata to the holders of Series A Preferred Stock, based on the number of shares of Series A Preferred Stock held by each such holder. 
  
 (d) Nothing in this Section 4 shall affect in any way the right of
each holder of Series A Preferred Stock to convert such shares at any time and from time to time into Common Stock in accordance with Section 6 hereof prior to the consummation of any Liquidation Event. 
  
 5. Voting Rights; Protective Provisions.

  
 (a) Except as otherwise provided herein or as required by
applicable law, the holders of Series A Preferred Stock shall be entitled to vote on all matters on which the holders of Common Stock shall be entitled to vote, in the same manner and with the same effect as the holders of Common Stock, voting
together with the holders of Common Stock as a single class. For this purpose, the holders of Series A Preferred Stock shall be given notice of any meeting of stockholders as to which the holders of Common Stock are given notice in accordance with
the by-laws of the Corporation. As to any matter on which the holders of Series A Preferred Stock shall be entitled to vote, each holder of Series A Preferred Stock shall be entitled to cast a number of votes per share of Series A Preferred Stock
held of record by such holder on the record date for the meeting of stockholders, if such matter is subject to a vote at a meeting of stockholders, or on the effective date of any written consent, if such matter is subject to a written consent of
the stockholders without a meeting of stockholders, equal to the number of shares of Common Stock into which such share of Series A Preferred Stock is then convertible on such record date or effective date, as the case may be, in accordance with
Section 6 hereof. 
  
 (b) So long as four thousand (4,000)
or more shares of Series A Preferred Stock first issued by the Corporation on the Initial Issue Date are outstanding (appropriately adjusted for any stock dividend, stock split, reverse stock split, reclassification, stock 
  

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 combination or other recapitalization occurring after the Initial Issue Date), the Corporation shall not, without the
affirmative vote or written consent of the Requisite Holders (which consent shall not be unreasonably withheld) take any of the following actions or agree to take any of the following actions: 
  
 (1) amend, alter or repeal any of the provisions of the Corporation’s
Amended and Restated Certificate of Incorporation or Bylaws, or recapitalize, reclassify, reorganize or exchange any class of the Corporation’s capital stock, including through a merger or consolidation, in each case, in a manner that would
adversely effect the rights of the holders of Series A Preferred Stock, or in any way change the rights of the Series A Preferred Stock; 
  
 (2) authorize, create, designate, issue or sell any (A) class or series of capital stock (including shares of treasury stock), (B) rights, options,
warrants or other securities convertible into or exercisable or exchangeable for capital stock or (C) any debt security which by its terms is convertible into or exchangeable for any capital stock or has any other equity feature or any security that
is a combination of debt and equity, which capital stock, in each case, is senior to or pari passu with the Series A Preferred Stock; 
  
 (3) increase or decrease (other than following a conversion or redemption of Series A Preferred Stock, and then, only to the extent of such conversion or
redemption) the number of authorized shares of Series A Preferred Stock or authorize the issuance of or issue any shares of Series A Preferred Stock (other than in connection with the payment of Series A Preferred Dividends in accordance with
Section 3 hereof); 
  
 (4) agree to any restriction on the
Corporation’s ability to satisfy its obligations hereunder to holders of Series A Preferred Stock or the Corporation’s ability to honor the exercise of any rights of the holders of the Series A Preferred Stock; 
  
 (5) directly or indirectly declare or pay any dividend or make any
distribution (whether in cash, shares of capital stock of the Corporation, or other property) on shares of capital stock of the Corporation, or redeem, purchase or otherwise acquire for value (including through an exchange), or set apart money or
other property for any mandatory purchase or analogous fund for the redemption, purchase or acquisition of any shares of capital stock of the Corporation, except for: (i) the Series A Preferred Dividends; and (ii) the redemption or repurchase of (x)
shares of Series A Preferred Stock in accordance with the terms of this Certificate of Designations, or (y) shares of Common Stock held by employees, officers or directors of the Corporation pursuant to a written plan or program approved by the
Board; 
  
 (6) conduct transactions with Affiliates, unless the
terms and conditions of any such transaction are at least as favorable to the Corporation as in an arms-length transaction, as determined by a majority of the disinterested members of the Board, and are approved by a majority of the disinterested
members of the Board; and 
  
 (7) enter into any agreement, or
form or permit any subsidiary, to do any of the foregoing. 
  
 For
purpose of this Section 5(b), in addition to and not in lieu of any other rights they may have, with respect to the matters specified in this Section 5(b), the holders of Series A 
  

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 Preferred Stock shall be given notice of any meeting of stockholders as to which the holders of Common Stock or any other
class or series of capital stock of the Corporation are given notice in accordance with the By-laws of the Corporation, or if such matter is not subject to the vote or written consent of the stockholders of the Corporation, then the Corporation
shall give written notice of such matter to the holders of the Series A Preferred Stock at their respective addresses then in the books and records of the Corporation (or such other address as may be directed in a signed writing to the Corporation
from time to time by any such holder). As to any matter on which the holders of Series A Preferred Stock shall be entitled to vote in accordance with this Sections 5(b), each holder of Series A Preferred Stock shall have one vote for each
share of Series A Preferred Stock held of record by such holder on the record date for the meeting of stockholders, if such matter is subject to a vote at a meeting of stockholders, or on the effective date of any written consent, if such matter is
subject to a written consent of the stockholders without a meeting of stockholders, or on the date of the notice given to the holders of Series A Preferred Stock, if such matter is not subject to the vote or written consent of the stockholders.

  
 6. Conversion. The
holders of shares of Series A Preferred Stock shall have the following conversion rights: 
  
 (a) Subject to the terms and conditions of this Section 6, the holder of any share or shares of Series A Preferred Stock shall have the right, at its option at any time, to convert any such shares of Series A
Preferred Stock into such number of fully paid and nonassessable shares of Common Stock as is obtained by: (i) multiplying the number of shares of Series A Preferred Stock to be converted by the Series A Stated Value and adding to such product an
amount equal to all declared but unpaid dividends and all accrued but unpaid dividends set forth in Section 3(a) above, with respect to such shares of Series A Preferred Stock to be converted; and (ii) dividing the result obtained pursuant to
clause (i) above by the Series A Conversion Price then in effect. The “Series A Conversion Price” shall initially be four dollars ($4.00), and shall be subject to adjustment from time to time in accordance with the provisions
of this Section 6. The rights of conversion set forth in this Section 6 shall be exercised by any holder of Series A Preferred Stock by giving written notice to the Corporation that such holder elects to convert a stated number of
shares of Series A Preferred Stock into Common Stock and by surrender of a certificate or certificates for the shares of Series A Preferred Stock so to be converted (or, in lieu thereof, by delivery of an appropriate lost stock affidavit in the
event such certificate or certificates have been lost or destroyed in accordance with Section 11) to the Corporation at its principal office (or such other office or agency of the Corporation as the Corporation may designate by notice in
writing to the holders of Series A Preferred Stock) at any time on the date set forth in such notice (which date shall not be earlier than the Corporation’s receipt of such notice), together with a statement of the name or names (with address)
in which the certificate or certificates for shares of Common Stock shall be issued. Notwithstanding anything in this Section 6(a) to the contrary, a holder Series A Preferred Stock shall not be entitled to convert its shares of Series A
Preferred Stock (i) if and to the extent the Corporation shall have received written advice from Nasdaq that such conversion would result in a change of control (within the meaning of NASD Rule 4350(i)(1)(B)), or (ii) if and to the extent that such
conversion would result in the issuance of more than 19.9% of the Corporation’s Common Stock outstanding as of the Initial Issue Date, for purposes of NASD Rule 4350(i)(1)(D). 
  

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 (b) Promptly after receipt of the written notice referred to in Section 6(a) above and surrender
of the certificate or certificates for the share or shares of Series A Preferred Stock to be converted (or, in lieu thereof, by delivery of an appropriate lost stock affidavit in the event such certificate or certificates have been lost or destroyed
in accordance with Section 11), but in no event more than three (3) Business Days thereafter, the Corporation shall issue and deliver, or cause to be issued and delivered, to the holder of Series A Preferred Stock, registered in such name or
names as such holder may direct in writing, a certificate or certificates for the number of whole shares of Common Stock issuable upon the conversion of such share (a “Conversion Share”) or shares of Series A Preferred Stock.
To the extent permitted by law, such conversion shall be deemed to have been effected, and the Series A Conversion Price shall be determined, as of the close of business on the date on which such written notice shall have been received by the
Corporation and the certificate or certificates for such share or shares of Series A Preferred Stock shall have been surrendered as aforesaid (or, in lieu thereof, an appropriate lost stock affidavit has been delivered to the Corporation in
accordance with Section 11), and at such time, the rights of the holder of such share or shares of Series A Preferred Stock shall cease with respect to the shares of Series A Preferred Stock being converted, and the Person or Persons in whose
name or names any certificate or certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed to have become the holder or holders of record of the shares represented thereby. 
  
 (c) No fractional shares shall be issued upon any conversion of shares of
Series A Preferred Stock into Common Stock. If any fractional share of Common Stock would, except for the provisions of the first sentence of this Section 6(c), be delivered upon such conversion, the Corporation, in lieu of delivering such
fractional share, shall pay to the holder surrendering the shares of Series A Preferred Stock for conversion an amount in cash equal to the Market Price of such fractional share of Common Stock. In case the number of shares of Series A Preferred
Stock represented by the certificate or certificates surrendered pursuant to Section 6(a) above exceeds the number of shares converted, the Corporation shall, upon such conversion, execute and deliver to the holder, at the expense of the
Corporation, a new certificate or certificates for the number of shares of Series A Preferred Stock represented by the certificate or certificates surrendered which are not to be converted. 
  
 (d) Except as provided in Section 6(e) below, if and whenever the
Corporation shall issue or sell, or is, in accordance with Sections 6(d)(1) through 6(d)(5) hereof, deemed to have issued or sold, any shares of Common Stock for a consideration per share less than the Series A Conversion Price in effect
immediately prior to the time of such issue or sale, then and in each such case (a “Trigger Issuance”), regardless of whether such issuance or sale was approved under Section 5 above, effective as of the close of
business on the effective date of the Trigger Issuance the then-existing Series A Conversion Price shall be reduced to a price (calculated to the nearest cent) determined by multiplying the Series A Conversion Price then in effect by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such issuance plus the number of shares of Common Stock that the aggregate consideration received by the Corporation for the total number of Additional
Shares of Common Stock so issued would purchase at the Series A Conversion Price in effect immediately prior to such issuance, and the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such issue
plus the number of Additional Shares of Common Stock so issued. 
  

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 For purposes of this Section 6(d), “Additional Shares of Common Stock”
shall mean all shares of Common Stock issued by the Corporation or deemed to be issued pursuant to this Section 6(d), other than those excluded issuances set forth in Section 6(e) hereof. 
  
 For purposes of this Section 6(d), the following subsections (d)(l) to
(d)(5) shall also be applicable (subject, in each such case, to the provisions of Section 6(e) hereof): 
  
 (d)(1) In case at any time after the Initial Issue Date the Corporation shall in any manner grant, issue or sell any stock or security
convertible into or exchangeable for Common Stock (“Convertible Securities”) or any warrants or other rights to subscribe for or to purchase, or any options for the purchase of, Common Stock or any Convertible Securities
(such warrants, rights or options being called “Options”), whether or not the right to convert, exchange or exercise any such Convertible Securities or such Options are immediately exercisable, and the price per share for
which Common Stock is issuable upon the conversion or exchange of such Convertible Securities or upon the exercise of such Options (determined by dividing (i) the sum of (x) the total amount, if any, received or receivable by the Corporation as
consideration for the issue or sale of such Convertible Securities or the granting of such Options, plus (y) the aggregate amount of additional consideration, if any, payable to the Corporation upon the conversion or exchange of all such Convertible
Securities or the exercise of all such Options, plus (z), in the case of such Options to purchase Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the conversion or exchange of such Convertible
Securities, by (ii) the maximum number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities, or upon the exercise of such Options, or upon the conversion or exchange of all such Convertible Securities
issuable upon the exercise of such Options), shall be less than the Series A Conversion Price in effect immediately prior to the time of the issue or sale of such Convertible Securities or the granting of such Options, then the total number of
shares of Common Stock issuable upon the conversion or exchange of such Convertible Securities, or the exercise of such Options, or upon the conversion or exchange of the maximum amount of such Convertible Securities issuable upon the exercise of
such Options, shall be deemed to have been issued for a price (calculated to the nearest cent) determined by multiplying the Series A Conversion Price then in effect by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issuance plus the number of shares of Common Stock that the aggregate consideration received by the Corporation for the total number of Additional Shares of Common Stock so issued would purchase at the Series A
Conversion Price in effect immediately prior to such issuance, and the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the number of Additional Shares of Common Stock so issued, and
thereafter such Additional Shares of Common Stock shall be deemed to be outstanding for purposes of adjusting the Series A Conversion Price. Except as otherwise provided in Section 6(d)(2), no additional adjustment of the Series A Conversion
Price shall be made upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities or upon exercise of such Options. 
  

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 (d)(2) Upon the happening of any of the following events, namely, if the purchase price
provided for in any Option referred to in Section 6(d)(l) hereof, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in Section 6(d)(l), or the rate at which
Convertible Securities referred to in Section 6(d)(l) are convertible into or exchangeable for Common Stock shall change at any time (including, but not limited to, changes under or by reason of provisions designed to protect against
dilution), the Series A Conversion Price in effect at the time of such event shall forthwith be readjusted to the Series A Conversion Price which would have been in effect at such time had such Options or Convertible Securities still outstanding
provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time initially granted, issued or sold, but only if as a result of such adjustment the Series A Conversion Price then in effect
hereunder is thereby reduced. 
  
 (d)(3) In case
any shares of Common Stock, Options or Convertible Securities shall be issued or sold for cash, the consideration received therefor shall be deemed to be the net amount received by the Corporation therefor, after deduction therefrom of any expenses
incurred or any underwriting commissions or concessions paid or allowed by the Corporation in connection therewith. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other than cash,
the amount of the consideration other than cash received by the Corporation shall be deemed to be the Fair Market Value of such consideration, after deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by
the Corporation in connection therewith. 
  
 (d)(4) In case the Corporation shall take a record of the holders of its Common Stock for the purpose of entitling them (i) to receive a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (ii) to
subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. Notwithstanding the foregoing, no anti-dilution adjustment provided for in this Section 6 shall be
effected with respect to any transaction for which a record date is set by the Corporation if the transaction is abandoned by the Corporation prior to the time such transaction becomes effective. 
  
 (d)(5) The number of shares of Common Stock outstanding at
any given time shall not include shares owned or held by or for the account of the Corporation or any of its subsidiaries, and the disposition of any such shares (other than the cancellation or retirement thereof) shall be considered an issue or
sale of Common Stock for the purpose of this Section 6(d). 
  

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 (e) Notwithstanding anything in this Section 6 to the contrary, the Corporation shall not be
required to make any adjustment of the Series A Conversion Price in the case of the following issuances of shares of Common Stock from and after the Initial Issue Date: (i) issuances upon the exercise of any Options or Convertible Securities
granted, issued and outstanding on the Initial Issue Date; (ii) issuances of securities as consideration for a merger or consolidation with, or purchase of assets from, a non-Affiliated third party; (iii) issuance of Common Stock upon conversion of
the Series A Preferred Stock, exercise of the warrants issued in connection therewith, or as payment-in-kind dividends on the Series A Preferred Dividends in accordance with the Section 3(a) hereof; (iv) shares of Common Stock (or Options
with respect thereto) issued or issuable to employees, officers or directors of, or consultants or advisors to, the Company or any of its subsidiaries, pursuant to a plan, agreement or arrangement approved by the Board; and (v) shares of Common
Stock issued or issuable as a result of any stock split, combination, dividend, distribution, reclassification, exchange or substitution for which an equitable adjustment has been made under Sections 6(f), (g), (h) or (i) below (collectively,
“Excluded Issuances”). 
  
 (f) If, at any
time after the Initial Issue Date, the number of shares of Common Stock outstanding is increased by a stock dividend payable in shares of Common Stock or by a subdivision or split-up of shares of Common Stock, then, following the record date for the
determination of holders of Common Stock entitled to receive such stock dividend, or to be affected by such subdivision or split-up, the Series A Conversion Price shall be appropriately decreased so that the number of shares of Common Stock issuable
upon conversion of the Series A Preferred Stock shall be increased in proportion to such increase in outstanding shares. 
  
 (g) If, at any time after the Initial Issue Date, the number of shares of Common Stock outstanding is decreased by a reverse-split or other combination of
the outstanding shares of Common Stock into a smaller number of shares of Common Stock, then, following the record date to determine shares affected by such combination, the Series A Conversion Price shall be appropriately increased so that the
number of Conversion Shares issuable on conversion of each share of Series A Preferred Stock shall be decreased in proportion to such decrease in outstanding shares. 
  
 (h) If the Common Stock issuable upon the conversion of the Series A Preferred Stock shall be changed into the same or
different number of shares of any class or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a subdivision or combination or shares of stock dividend provided for elsewhere in this Section 6, or
the sale of all or substantially all of the Corporation’s properties and assets to any other Person), then and in each such event the holder of each share of Series A Preferred Stock shall have the right thereafter to convert such share into
the kind and amount of shares of stock and other securities and property receivable upon such reorganization, reclassification or other change by holders of the number of shares of Common Stock into which such shares of Series A Preferred Stock
might have been converted, as the case may be, immediately prior to such reorganization, reclassification or change, all subject to further adjustment as provided herein. 
  

 - 11 - 

 (i) If at any time or from time to time there shall be a merger or consolidation of the Corporation with
or into another corporation, or the sale of all or substantially all of the Corporation’s properties and assets to any other Person, except for any merger, consolidation or sale of all or substantially all of the Corporation’s properties
or assets that constitutes a Liquidation Event and for which the holder has received the full Liquidation Preference Amount, then, as a part of such merger, or consolidation or sale, provision shall be made so that holders of Series A Preferred
Stock, as the case may be, shall thereafter be entitled to receive upon conversion of the Series A Preferred Stock, the number of shares of stock or other securities or property of the Corporation, or of the successor corporation resulting from such
merger, consolidation or sale, to which such holder would have been entitled if such holder had converted its shares of Series A Preferred Stock immediately prior to such merger, consolidation or sale. In any such case, appropriate adjustment shall
be made in the application of the provisions of this Section 6 with respect to the rights of the holders of the Series A Preferred Stock after the merger, consolidation or sale to the end that the provisions of this Section 6,
including adjustment of the Series A Conversion Price then in effect for the Series A Preferred Stock and the number of shares issuable upon conversion of the Series A Preferred Stock) shall be applicable after that event in as nearly equivalent a
manner as may be practicable. 
  
 (j) If the Market Price of the
Common Stock for any forty (40) days during any sixty (60) consecutive trading day period shall equal or exceed 250% of the Series A Conversion Price then in effect, then, within ten (10) Business Days after receipt of written notice to the holders
of the Series A Preferred Stock from the Corporation, which notice shall be delivered to the holders of the Series A Preferred Stock within ten (10) Business Days of the end of the relevant sixty (60) consecutive trading day period, the Corporation
may elect to convert all but not less than all of the Series A Preferred Stock; provided, however, the Corporation may not convert any of the shares of Series A Preferred Stock unless (i) the Corporation receives from its
independent legal counsel an opinion (without the holder thereof providing such counsel any representations relating to affiliate status of such holder), dated as of such date, in form, scope and substance as is reasonably satisfactory to the
holders of the Series A Preferred Stock and their respective counsel, that the shares are then eligible for resale pursuant to Rule 144(k) promulgated under the Securities Act of 1933, as amended, or (ii) a registration statement covering the resale
of the shares of Common Stock issuable upon such conversion has been declared and then remains effective with the Securities and Exchange Commission during the entirety of such entire 60-day period and thereafter remains effective until the last day
on which the Corporation is required to keep such registration statement effective under the terms of the Investor Rights Agreement, dated as of November 9, 2004, among the Corporation, Cerberus Partners, L.P. and Sepracor Inc. 
  
 (k) Notices of Record Date. In case at any time: 
  
 (1) the Corporation shall declare any dividend upon its Common Stock or any
other class or series of capital stock of the Corporation payable in cash or stock or make any other distribution to the holders of its Common Stock or any such other class or series of capital stock; 
  

 - 12 - 

 (2) the Corporation shall offer for subscription pro rata to the holders of its Common Stock or
any other class or series of capital stock of the Corporation any additional shares of stock of any class or other rights; or 
  
 (3) there shall be any capital reorganization or reclassification of the capital stock of the Corporation or any Liquidation Event; 
  
 then, in any one or more of said cases, the Corporation shall give, (a) at
least twenty (20) Business Days’ prior written notice of the date on which the books of the Corporation shall close or a record shall be taken for such dividend, distribution or subscription rights or for determining rights to vote in respect
of any event set forth in clause (3) of this Section 6(k) and (b) in the case of any event set forth in clause (3) of this Section 6(k), at least twenty (20) Business Days’ prior written notice of the date when the same shall take
place. Such notice in accordance with the foregoing clause (a) shall also specify, in the case of any such dividend, distribution or subscription rights, the date on which the holders of Common Stock or such other class or series of capital stock
shall be entitled thereto and such notice in accordance with the foregoing clause (b) shall also specify the date on which the holders of Common Stock and such other series or class of capital stock shall be entitled to exchange their Common Stock
and other stock for securities or other property deliverable upon consummation of the applicable event set forth in clause (3) of this Section 6(k). 
  
 (l) Upon any adjustment of the Series A Conversion Price, then and in each such case the Corporation shall give prompt written notice thereof, by delivery
in person or by certified or registered mail, return receipt requested, addressed to each holder of shares of Series A Preferred Stock at the address of such holder as shown on the books of the Corporation, which notice shall state the Series A
Conversion Price resulting from such adjustment and setting forth in reasonable detail the method upon which such calculation is based. 
  
 (m) The Corporation will take all such action as may be necessary to assure that all such shares of Common Stock may be so issued without violation of any
applicable law or regulation, or of any requirement of any national securities exchange upon which the Common Stock may be listed. The Corporation will not take any action which results in any adjustment of the Series A Conversion Price if the total
number of shares of Common Stock issued and issuable after such action upon conversion of the Series A Preferred Stock would exceed the total number of shares of Common Stock then authorized by the Corporation’s Amended and Restated Certificate
of Incorporation. 
  
 (n) The Corporation will at no time close
its transfer books against the transfer of any Series A Preferred Stock or of any shares of Common Stock issued or issuable upon the conversion of any shares of Series A Preferred Stock in any manner which interferes with the timely conversion of
such Series A Preferred Stock, except as may otherwise be required to comply with applicable securities laws. 
  
 7. Redemption. 
  
 (a) At any time after November 9, 2007, all but not less than all of the outstanding and unconverted shares of Series A Preferred Stock may be, at the
Corporation’s 
  

 - 13 - 

 sole option, redeemed by the Corporation pursuant to this Section 7, from funds legally available therefor at an
amount equal to the aggregate Liquidation Preference Amount for such shares (the “Redemption Payment”). In order to effect a redemption of the outstanding and unconverted shares of Series A Preferred Stock, the Corporation shall
give written notice thereof (the “Redemption Notice”) to each holder of the Series A Preferred Stock in accordance with Section 9 below, at least twenty-five (25) days prior to the date (the “Redemption
Date”) specified in the Redemption Notice for such redemption. On the Redemption Date, the Corporation shall deliver to each such holder the aggregate Redemption Payment applicable to such holder’s Series A Preferred Stock, in lawful
money of the United States. All outstanding and unconverted shares of Series A Preferred Stock shall be redeemed on the Redemption Date. From and after the Redemption Date, except as provided in Section 7(b) below, all shares of Series A
Preferred Stock shall cease to be outstanding, shall have the status of authorized but undesignated preferred stock, and shall, as to the holders thereof, represent the irrevocable and unqualified right to receive the Redemption Payment required by
this Section 7. 
  
 (b) If any portion of the applicable
Redemption Payment under Section 7(a) shall not be paid by the Corporation within seven (7) calendar days after the Redemption Date, interest shall accrue thereon at the rate of 15% per annum until the Redemption Payment plus all such
interest is paid in full (which amount shall be paid as liquidated damages and not as a penalty). In addition, if any portion of such Redemption Payment remains unpaid for more than seven (7) calendar days after the Redemption Date, the holder of
the Series A Preferred Stock subject to such redemption may elect, by written notice to the Corporation, to either (i) demand conversion in accordance with the formula and the time frame therefor set forth in Section 6 of all of the shares of
Preferred Stock for which such redemption price, plus accrued liquidated damages thereof, has not been paid in full (the “Unpaid Redemption Shares”), in which event the Series A Conversion Price for such shares shall be the
lower of the Market Price calculated as of the Redemption Date and the Market Price as of such holder’s written demand for conversion, or (ii) invalidate ab initio such redemption, notwithstanding anything herein contained to the
contrary. If such holder elects option (i) above, the Corporation shall within five (5) Business Days of its receipt of such election deliver to such holder the shares of Common Stock issuable upon conversion of the Unpaid Redemption Shares subject
to such holder’s conversion demand and otherwise perform its obligations hereunder with respect thereto; or, if such holder elects option (ii) above, the Corporation shall promptly, and in any event not later than five (5) Business Days from
receipt of such holder’s notice of such election, return to such holder all of the Unpaid Redemption Shares. 
  
 (c) Except as expressly provided in Section 7(b), the delivery of a Redemption Notice shall not terminate or impair a holder’s right to
convert its Series A Preferred Stock until the later of (x) the Redemption Date, and (y) such holder’s receipt of the full amount due to such holder under this Section 7 in respect of such redemption. 
  
 8. Reservation and Listing of Shares.

  
 (a) The Corporation shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for the purpose of providing for the conversion of the Series A Preferred Stock and the exercise of the Warrants issued in connection therewith, such number of shares of
Common Stock as shall from time to time equal the number 
  

 - 14 - 

 of shares sufficient to permit the conversion of the Series A Preferred Stock and the exercise of such Warrants issued
pursuant to this Agreement in accordance with their respective terms, without regard to any exercise limitations contained in such Warrants. The Corporation covenants that all shares of Common Stock which shall be issued upon conversion of the
Series A Preferred Stock shall be duly and validly issued and fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issue thereof, and, without limiting the generality of the foregoing, the Corporation
covenants that it will from time to time take all such action as may be requisite to assure that the par value per share of the Common Stock is at all times equal to or less than the Series A Conversion Price in effect at the time. 
  
 (b) The Corporation shall: (i) prepare and file with Nasdaq on a timely basis
the necessary Notification Form regarding the listing on the Nasdaq of a number of additional shares of Common Stock which is at least equal to the maximum number of shares then issuable upon conversion of the Series A Preferred Stock, together with
the shares issuable in payment of Series A Dividends (without regard to any limitation on conversions of Series A Preferred Stock); (ii) use its best efforts to maintain, so long as any other shares of Common Stock shall be so listed, the listing of
all such shares then issuable upon conversion of the Series A Preferred Stock on the Nasdaq; and (iii) provide to the holders of the Series A Preferred Stock evidence of such filing upon request. This Section shall apply to each exchange, securities
association and quotation service on which the Common Stock shall be listed for trading from time to time. 
  
 9. Notices. Except as otherwise provided herein, all notices or other communications required hereunder shall be in writing
and shall be deemed to have been received: (a) upon hand delivery (receipt acknowledged) or delivery by telex (with correct answer back received) telecopy or facsimile (with transmission confirmation report) at the address or number designated below
(if received by 8:00 p.m. New York Time), or the first business day following such delivery (if received after 8:00 p.m. New York Time); or (b) on the second business day following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever shall first occur; and shall be regarded as properly addressed if sent to the parties or their representatives at the addresses given below: 
  

			
	 To the Corporation:
	 	 Biosphere Medical, Inc.

	 	 	 1050 Hingham Street

	 	 	 Rockland, MA 02370 USA

	 	 	 Attn: President

	 	 	 Fax: 781-681-5093

		
	 With a copy to:
	 	 Wilmer Cutler Pickering Hale and Dorr LLP

	 	 	 60 State Street

	 	 	 Boston, Massachusetts 02109

	 	 	 Attn: Susan W. Murley, Esq.

	 	 	 Fax: 617-526-5000

  

 - 15 - 

			
	 To the holders of Series A Preferred Stock:

		
	 	 	 Cerberus Partners, L.P.

	 	 	 299 Park Avenue, 22nd Floor

	 	 	 New York, New York 10171

	 	 	 Attn: Mr. Seth P. Plattus

	 	 	 Fax: (212) 891-1541

		
	 	 	 Cerberus Partners, L.P.

	 	 	 299 Park Avenue, 22nd Floor

	 	 	 New York, New York 10171

	 	 	 Attn: Mr. Daniel Frank

	 	 	 Fax: (212) 284-7818

		
	 	 	 Sepracor Inc.

	 	 	 84 Waterford Drive

	 	 	 Marlborough, MA 01752

	 	 	 Attn: President

	 	 	 Fax: 508-357-7495

		
	 With copies to:
	 	 Lowenstein Sandler PC

	 	 	 65 Livingston Avenue

	 	 	 Roseland, NJ 07068-1791

	 	 	 Attn: Robert G. Minion, Esq.

	 	 	 Fax: (973) 597-2400

		
	 	 	 Wilmer Cutler Pickering Hale and Dorr LLP

	 	 	 60 State Street

	 	 	 Boston, Massachusetts 02109

	 	 	 Attn: Susan W. Murley, Esq.

	 	 	 Fax: 617-526-5000

  
 or such other address as any of the
above may have furnished to the other parties in writing by registered mail, return receipt requested. 
  
 10. Amendment. This Certificate of Designations shall not be amended without the prior written consent of the Requisite
Holders. The Corporation may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Corporation shall have obtained the written consent to such amendment, action or omission to act, of the
Requisite Holders. 
  
 11. Lost or Stolen
Certificates. Upon receipt by the Corporation of evidence reasonably satisfactory to the Corporation of the loss, theft, destruction or mutilation of any stock certificates representing Series A Preferred Stock, and, in the case of loss,
theft or destruction, of any indemnification undertaking by the holder of Series A Preferred Stock to the Corporation in customary form and, in the case of mutilation, upon surrender and cancellation of such Series A Preferred Stock certificate(s),
the Corporation shall execute and deliver new preferred stock certificate(s) of like tenor and date; provided, however, the Corporation shall not be obligated to re-issue preferred stock certificates if the holder of Series A Preferred
Stock contemporaneously requests the Corporation to convert such Series A Preferred Stock into Common Stock. 
  

 - 16 - 

 12. Remedies Characterized; Other Obligations, Breaches and Injunctive
Relief. The remedies provided in this Certificate of Designation shall be cumulative and in addition to all other remedies available under this Certificate of Designation, at law or in equity (including a decree of specific performance
and/or other injunctive relief). No remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit a holder’s right to pursue actual damages for any failure by the
Corporation to comply with the terms of this Certificate of Designation. The Corporation covenants that it will not take any action which might materially impair the rights of the holders of Series A Preferred Stock without the consent of the
Requisite Holders. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the holder in respect thereof, and shall not, except as expressly
provided herein, be subject to any other obligation of the Corporation (or the performance thereof). The Corporation acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the holders of Series A Preferred Stock
and that the remedy at law in the event of any such breach may be inadequate. The Corporation therefore agrees that, in the event of any such breach or threatened breach, the holders of Series A Preferred Stock shall be entitled, in addition to all
other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 
  
 13. Specific Shall Not Limit General; Construction. No specific provision
contained in this Certificate of Designation shall limit or modify any more general provision contained herein. 
  
 14. Failure or Indulgence Not Waiver. Any waiver by a holder of Series A Preferred Stock of any power, right or privilege hereunder shall be
in a writing signed by such holder. 
  
 15.
Payment of Tax Upon Issue of Transfer. The issuance of certificates for shares of the Common Stock upon conversion of the shares of Series A Preferred Stock shall be made without charge to the holders thereof for any documentary
stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and
delivery of any such certificate upon conversion in a name other than that of the holders of Series A Preferred Stock so converted. 
  
 16. Effect of Headings. The section headings herein are for convenience only and shall not affect the construction hereof.

  
 [Signature page follows] 
  

 - 17 - 

 IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designations to be duly executed as of
the 9th day of November, 2004. 
  

			
	BIOSPHERE MEDICAL, INC.
	
	 /s/ Martin J. Joyce

	 Name:
	 	 Martin J. Joyce

	 Title:
	 	 Vice President and

	 	 	 Chief Financial Officer

  
 [Signature Page
— Series A Certificate of Designations]Securities Purchase Agreement

 EXHIBIT 10.1 
  
 SECURITIES PURCHASE AGREEMENT 
  
 THIS SECURITIES PURCHASE AGREEMENT (“Agreement”) is made as of this 10th day of November, 2004, by
and among BioSphere Medical, Inc., a Delaware corporation (the “Company”), and the investors identified on the signature pages hereto (each an “Investor” and collectively, the “Investors”).

  
 RECITALS: 
 A. The Company desires to raise $8,000,000 through the issuance and sale to the Investors of the following securities pursuant to this Agreement: (i)
8,000 shares (the “Shares”) of a newly created series of preferred stock, par value $0.01 per share, of the Company, designated as “Series A Convertible Preferred Stock” (the “Preferred Stock”), which Preferred Stock
shall have the rights, preferences and privileges set forth in the Certificate of Designations of Series A Convertible Preferred Stock, in the form of Exhibit A attached hereto (the “Certificate of Designations”); and (ii) warrants to
acquire shares of common stock, par value $0.01 per share, of the Company (“Common Stock”) in the form of Exhibit B attached hereto (the “Warrants”); 
  
 B. Upon the terms and subject to the conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities
Act of 1933, as amended, and Rule 506 promulgated thereunder, the Investors desire to purchase from the Company, and the Company desires to issue and sell to the Investors, such number of shares of Preferred Stock and Warrants, as are set forth next
to each such Investor’s name on Schedule I attached hereto; and 
  
 C. Contemporaneously with the purchase and sale of the Shares and the Warrants at the Closing, the parties hereto will enter into an Investor Rights Agreement, in the form attached hereto as Exhibit C (the “Investor Rights
Agreement”), which shall, among other things, set forth the rights of the Investors to: (i) the registration of shares of Common Stock issuable to the Investors upon conversion of the Preferred Stock and the exercise of the Warrants; (ii) the
receipt of certain information from the Company; and (iii) the participation in future issuances of equity and debt securities of the Company. 
  
 NOW, THEREFORE, in consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and each of the Investors, severally and not jointly, hereto agree as follows: 
  
 1. Definitions. In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth in this Section 1: 
  
 “Affiliate” means, with respect to any Person, any other Person which directly or indirectly Controls, is Controlled by, or is under common Control with, such Person. Notwithstanding the foregoing, none respective of the
Company, its owners, officers, directors, employees, agents or advisors (or any of their family members) shall be deemed an “Affiliate” of an Investor, unless any such Person is otherwise (i.e., independent of the Company) an Affiliate of
such Investor. 

 “Agreement” has the meaning set forth in the preamble to this Agreement. 
  
 “Business Day” means a day, other than a Saturday or Sunday,
on which banks in Boston, Massachusetts and New York, New York are open for the general transaction of business. 
  
 “Cerberus” means Cerberus Capital Management, L.P. and Cerberus Partners, L.P. 
  
 “Cerberus Counsel” means Lowenstein Sandler PC, counsel to
Cerberus. 
  
 “Certificate of Designations” has
the meaning set forth in the recitals to this Agreement. 
  
 “Closing” has the meaning set forth in Section 3. 
  
 “Closing Date” means the date on which the Closing occurs. 
  
 “Common Stock” means the Common Stock and any other securities into which or for which such Common Stock may be converted or exchanged
pursuant to a plan of recapitalization, reorganization, merger, consolidation, sale of assets or other similar transaction. 
  
 “Company” has the meaning set forth in the preamble to this Agreement. 
  
 “Company Counsel” means Wilmer Cutler Pickering Hale and Dorr LLP, counsel to the Company. 
  
 “Company’s Knowledge” means the actual knowledge of the
officers of the Company and of each of the Subsidiaries, after due inquiry and investigation. 
  
 “Confidential Information” means trade secrets, confidential information and know-how (including but not limited to ideas, formulae, compositions, manufacturing and production processes, procedures
and techniques, research and development information, clinical data, computer program code, performance specifications, support documentation, drawings, specifications, designs, business and marketing plans, and customer and supplier lists and
related information). 
  
 “Control” means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Cerberus Counsel Fees” has the meaning set forth in
Section 9.5. 
  
 “Eligible Market” means
the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market or the Nasdaq SmallCap Market. 
  

 - 2 - 

 “Environmental Laws” has the meaning set forth in Section 4.15. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and any successor federal statute, and the rules and regulations of the SEC promulgated thereunder, all as the same shall be in effect from time to time. 
  
 “Form 10-K” has the meaning set forth in Section 4.6. 
  
 “Indemnified Person” has the meaning set forth in Section
8.3. 
  
 “Intellectual Property” means all of
the following: (i) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and
Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; (v) Confidential Information; and (vi)
computer software (including, but not limited to, data, data bases and documentation). 
  
 “Investor(s)” has the meaning set forth in the preamble to this Agreement. 
  
 “Investor Rights Agreement” has the meaning set forth in the recitals to this Agreement. 
  
 “License Agreements” has the meaning set forth in Section
4.14(b). 
  
 “Losses” has the meaning set
forth in Section 8.2. 
  
 “Material Adverse
Effect” means a material adverse effect on: (i) the legality, validity or enforceability of any Transaction Document; (ii) the results of operations, assets, prospects, business or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole; or (iii) adversely impair the Company’s ability to perform fully on a timely basis its obligations under any of the Transaction Documents. 
  
 “Material Contract” means any contract of the Company or any Subsidiary: (i) that was required to be filed
as an exhibit to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K of the Securities Act; or (ii) the loss, termination or expiration of which could reasonably be expected to have a Material Adverse Effect. 

 
 “Nasdaq” means the Nasdaq Stock Market, Inc. 

 
 “Person” means an individual, corporation, partnership,
limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 
  
 “Preferred Shares” means the shares of Common Stock issuable
upon conversion of the Preferred Stock. 
  

 - 3 - 

 “Preferred Stock” has the meaning set forth in the recitals to this Agreement.

  
 “Regulation D” means Regulation D, as
promulgated by the SEC under the Securities Act. 
  
 “SEC” means the U.S. Securities and Exchange Commission or any other federal agency then administering the Securities Act and other federal securities laws. 
  
 “SEC Filings” has the meaning set forth in Section 4.6. 
  
 “Securities” means the Shares, the Preferred Shares, the
shares of Common Stock issuable as payment-in-kind dividends on the Preferred Stock in accordance with the terms thereof, the Warrants and the Warrant Shares. 
  

“Securities Act” means the Securities Act of 1933, as amended, and any successor federal statute, and the rules and regulations of the
SEC promulgated thereunder, all as the same shall be in effect from time to time. 
  
 “Shares” has the meaning set forth in the recitals to this Agreement. 
  
 “Subsidiary” has the meaning set forth in Section 4.1. 
  
 “Transaction Documents” means this Agreement, the Certificate of Designations, the Warrants, the Investor
Rights Agreement, and each of the other agreements, documents, certificates and instruments executed and delivered in connection with the foregoing. 
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants. 
  
 “Warrants” has the meaning set forth in the recitals to this
Agreement. 
  
 2. Purchase and Sale of Securities. Upon the
terms and subject to the conditions contained herein, at the Closing, the Company shall issue and sell, and each Investor listed on Schedule I attached hereto, shall severally, and not jointly, purchase, the number of shares of Preferred Stock and
Warrants, in each case, in the respective amounts set forth opposite such Investor’s name on Schedule I attached hereto, in exchange for the cash consideration set forth as the “Purchase Price” opposite such Investor’s
name on Schedule I attached hereto. 
  
 3. Closing.

  
 3.1 Date, Time and Place. The closing of the
transactions contemplated by this Agreement (the “Closing”) shall take place at 10:00 a.m. at the offices of Company Counsel, 399 Park Avenue, New York, New York 10022 on the date hereof (the “Closing Date”), or at
such other location and/or on such other date as the Company and the Investors shall mutually agree. 
  
 3.2 Closing. Upon satisfaction of the conditions to the Closing set forth in Section 6 hereof, the Company shall issue or cause to be
issued: (i) to each Investor, a certificate 
  

 - 4 - 

 or certificates representing the number of shares of Preferred Stock as is set forth opposite such Investor’s name
on Schedule I attached hereto; and (ii) to each such Investor, the Warrants to purchase such number of shares of Common Stock as is set forth opposite such Investor’s name on Schedule I attached hereto, against delivery to the
Company by, or for the benefit of, such Investor of the amount set forth as the “Purchase Price” opposite such Investor’s name on Schedule I attached hereto, in immediately available funds, by wire transfer to an account
designated before Closing in writing by the Company for such purpose. 
  
 4. Representations and Warranties of the Company. The Company hereby represents and warrants to the Investors on and as of the date hereof, knowing and intending their reliance hereon, that: 
  
 4.1 Organization, Good Standing and Qualification. Each of the
Company and its subsidiaries, a complete list of which is set forth in Schedule 4.1 hereto (“Subsidiaries”), is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to own its properties. Each of the Company and its Subsidiaries is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the conduct of its business or its ownership or its leasing of property makes such qualification or licensing necessary, unless the failure to so qualify in any such jurisdiction would not have a Material
Adverse Effect. 
  
 4.2 Authorization. The Company has the
requisite corporate power and authority and has taken all requisite action on the part of the Company, its officers, directors and stockholders necessary for: (i) the authorization, execution and delivery of the Transaction Documents; (ii) the
authorization of the performance of all obligations of the Company hereunder or thereunder; and (iii) the authorization, issuance (or reservation for issuance) and delivery of the Securities. The Transaction Documents constitute the legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to
or affecting creditors’ rights generally and general principles of equity. 
  
 4.3 Capitalization. 
  
 Schedule 4.3(a) sets forth: (i) the authorized capital stock of the Company on the date hereof; (ii) the number of shares of capital stock issued and outstanding; (iii) the number of shares of capital stock issuable, and the number
of shares of capital stock reserved for issuance, pursuant to the Company’s stock plans; and (iv) the number of shares of capital stock issuable and reserved for issuance pursuant to securities (other than the Securities) exercisable for, or
convertible into or exchangeable for any shares of capital stock of the Company. All of the shares of the Company’s capital stock have been, or upon issuance will be, duly authorized, validly issued, fully paid, nonassessable and free of
pre-emptive rights and were, or upon issuance will be, issued in full compliance with applicable law and any rights of third parties. All of the issued and outstanding shares of capital stock of each Subsidiary have been duly authorized and validly
issued and are fully paid, nonassessable and free of pre-emptive rights, were issued in full compliance with applicable law and any rights of third parties and are owned 
  

 - 5 - 

 by the Company, beneficially and of record, and, except as described on Schedule 4.3(a), are subject to no lien,
encumbrance or other adverse claim. No Person is entitled to pre-emptive or similar statutory or contractual rights with respect to any securities of the Company. Except as described on Schedule 4.3(a), there are no outstanding warrants,
options, convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries is or may be obligated to issue any equity securities of any kind and, except as contemplated by this
Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of any equity securities of any kind. Except as described on Schedule 4.3(a) and except for the Investor Rights Agreement, there are no
voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among the Company and any of its security holders or other third parties relating to the securities of the Company. Except as
described on Schedule 4.3(a) and except for the Investor Rights Agreement, the Company has not granted any Person the right to require the Company to register any of its securities under the Securities Act, whether on a demand basis or in
connection with the registration of securities of the Company for its own account or for the account of any other Person. 
  
 Schedule 4.3(b) sets forth a true and complete table setting forth the pro forma capitalization of the Company on a fully diluted basis giving
effect to: (i) the issuance of the Shares and the Warrants at the Closing; (ii) any adjustments in other securities resulting from the issuance of the Shares and the Warrants at the Closing; and (iii) the exercise or conversion of all outstanding
securities. Except as described on Schedule 4.3(b), the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common Stock or other securities to any other Person (other than the Investors) and will
not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security. 
  
 4.4 Valid Issuance. The Shares have been duly and validly authorized and when issued to the Investors in accordance with the terms of this
Agreement, will be validly issued, fully paid and nonassessable, shall have the rights, preferences and limitations set forth in the Certificate of Designations and shall be free and clear of all liens, claims, encumbrances and restrictions, except
for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws. Upon the due conversion of the Preferred Stock, the Preferred Shares will be validly issued, fully paid and nonassessable, and shall be
free and clear of all liens, claims, encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws. The Warrants have been duly and validly authorized and, upon the
due exercise of the Warrants, the Warrant Shares will be validly issued, fully paid and non-assessable, and shall be free and clear of all liens, claims, encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction
Documents or imposed by applicable securities laws. The Company has reserved a sufficient number of shares of Common Stock for issuance upon conversion of the Preferred Stock and exercise of the Warrants. As of the Closing Date, the Preferred Shares
and the Warrant Shares have been authorized for listing on the Nasdaq National Market. 
  
 4.5 Consents. The execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and sale of the Securities require no consent of, authorization by, exemption from,
filing with or notice to, any governmental body, agency, official or any other Person, including without limitation, Nasdaq, other than those filings that 
  

 - 6 - 

 have been made pursuant to applicable state securities laws and those post-sale filings pursuant to applicable state and
federal securities laws which the Company undertakes to file within the applicable time periods. The Company has taken all action necessary to exempt: (i) the issuance and sale of the Securities; (ii) the offer, issuance of the Preferred Shares upon
due conversion of the Preferred Stock; (iii) the issuance of the Warrant Shares upon due exercise of the Warrants; and (iv) the other transactions contemplated by the Transaction Documents from the provisions of any anti-takeover, business
combination or control share law or statute binding on the Company or to which the Company or any of its assets and properties may be subject or any provision of the Company’s Certificate of Incorporation, Bylaws or any stockholder rights
agreement that is or could become applicable to the Investors as a result of the transactions contemplated hereby, including without limitation, the issuance of the Securities and the ownership, disposition or voting of the Securities by the
Investors or the exercise of any right granted to the Investors pursuant to this Agreement or the other Transaction Documents. 
  
 4.6 Delivery of SEC Filings; Business. Copies of the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31,
2003 (the “Form 10-K”), and all other reports filed by the Company pursuant to the Exchange Act since the filing of the Form 10-K and prior to the date hereof (collectively, the “SEC Filings”) are available on
EDGAR. The SEC Filings are the only filings required of the Company pursuant to the Exchange Act for such period. The Company and its Subsidiaries are engaged only in the business described in the SEC Filings and the SEC Filings contain a complete
and accurate description in all material respects of the business of the Company and its Subsidiaries, taken as a whole. 
  
 4.7 No Material Adverse Change. Except as identified and described in the SEC Filings or as described on Schedule 4.7(a), since September
30, 2004, there has not been: 
  
 (i) any change in the
consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in the financial statements included in the SEC Filings, except for changes which have not and could not reasonably be expected to have a
Material Adverse Effect, individually or in the aggregate; 
  
 (ii) any declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the Company, or any redemption or repurchase of any securities of the Company; 
  
 (iii) any material damage, destruction or loss, whether or not covered by
insurance, to any assets or properties of the Company or its Subsidiaries; 
  
 (iv) any waiver, not in the ordinary course of business, by the Company or any Subsidiary of a material right or of a material debt owed to it; 
  
 (v) any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a
Subsidiary, except which is not material to the assets, properties, financial condition, operating results, prospects or business of the Company and its Subsidiaries, taken as a whole; 
  

 - 7 - 

 (vi) any change or amendment to the Company’s Certificate of Incorporation or Bylaws, or material
change to any material contract or arrangement by which the Company or any Subsidiary is bound or to which any of their respective assets or properties is subject; 
  
 (vii) any material labor difficulties or labor union organizing activities with respect to employees of the Company or any
Subsidiary; 
  
 (viii) any material transaction entered into by
the Company or a Subsidiary other than in the ordinary course of business; 
  
 (ix) the loss of the services of any key employee, or change in the composition or duties of the named executive officers (within the meaning of Item 402 of Regulation S-K promulgated under the Securities Act) of the
Company or any Subsidiary; 
  
 (x) the loss or threatened loss of
any customer which has had or could reasonably be expected to have a Material Adverse Effect; or 
  
 (xi) any other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect. 
  
 4.8 SEC Filings. 
  
 At the time of filing thereof, the SEC Filings complied as to form in all
material respects with the requirements of the Exchange Act and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances
under which they were made, not misleading. Neither the Company nor any of its Subsidiaries is (with or without the lapse of time or the giving of notice, or both) in breach or default of any Material Contract and, to the Company’s Knowledge,
no other party to any Material Contract is (with or without the lapse of time or the giving of notice, or both) in breach or default of any Material Contract. Neither the Company nor any Subsidiary has received any notice of the intention of any
party to terminate any Material Contract. 
  
 4.9 No Conflict,
Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Securities will not (with or without the lapse of time or the giving of notice, or both) conflict
with or result in a breach or violation of any of the terms and provisions of, or constitute a default under: (i) the Company’s Certificate of Incorporation or Bylaws, both as in effect on the date hereof (true and accurate copies of which have
been provided to the Investors before the date hereof); or (ii) (a) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company, any Subsidiary or any of their
respective assets or properties or (b) except as set forth on Schedule 4.9, any agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or a Subsidiary is bound or to which any of their respective
assets or properties is subject. 
  
 4.10 Tax Matters. Each
of the Company and each Subsidiary has timely prepared and filed all tax returns required to have been filed by the Company or such Subsidiary 
  

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 with all appropriate governmental agencies and timely paid all taxes shown thereon or otherwise owed by it. The charges,
accruals and reserves on the books of the Company in respect of taxes for all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company or any Subsidiary nor, to the Company’s
Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits by any federal, state or local taxing authority except for any assessment which is not material to the Company and its
Subsidiaries, taken as a whole. All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third
party when due. There are no tax liens or claims pending or, to the Company’s Knowledge, threatened against the Company or any Subsidiary or any of their respective assets or properties. Except as described on Schedule 4.10, there are no
outstanding tax sharing agreements or other such arrangements between the Company and any Subsidiary or other corporation or entity. Neither the Company nor any Subsidiary is presently undergoing any audit by a taxing authority, or has waived or
extended any statute of limitations at the request of any taxing authority. 
  
 4.11 Title to Properties. Except as disclosed in the SEC Filings or as set forth on Schedule 4.11, the Company and each Subsidiary has good and marketable title to all real properties and all other
properties and assets owned by it, in each case free from liens, encumbrances and defects that would materially affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; and except as
disclosed in the SEC Filings, the Company and each Subsidiary holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially interfere with the use made or currently planned to be made thereof
by them. 
  
 4.12 Certificates, Authorities and Permits.
The Company and each Subsidiary possess adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by it, and neither the Company nor any Subsidiary has received
any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined adversely to the Company or such Subsidiary, could reasonably be expected to have a Material Adverse Effect,
individually or in the aggregate. 
  
 4.13 No Labor
Disputes. No material labor dispute with the employees of the Company or any Subsidiary exists or, to the Company’s Knowledge, is imminent. 
  
 4.14 Intellectual Property. 
  
 (a) All Intellectual Property of the Company and its Subsidiaries is currently in compliance with all legal requirements (including timely filings,
proofs and payments of fees) and is valid and enforceable. Except as listed on Schedule 4.14(a), no Intellectual Property of the Company or its Subsidiaries which is necessary for the conduct of Company’s and each of its
Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has been or is now involved in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no such action is threatened.
Except as listed on Schedule 4.14(a), no patent of the Company or its Subsidiaries has been or is now involved in any interference, reissue, re-examination or opposition proceeding. 
  

 - 9 - 

 (b) All of the licenses and sublicenses and consent, royalty or other agreements concerning Intellectual
Property which are necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted to which the Company or any Subsidiary is a party or by which
any of their assets are bound (other than generally commercially available, non custom, off the shelf software application programs having a retail acquisition price of less than $10,000 per license) (collectively, “License
Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties thereto and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with their terms, except to the extent
that enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally, and there exists no event or condition which
will result in a material violation or breach of or constitute (with or without due notice or lapse of time or both) a default by the Company or any of its Subsidiaries or, to the Company’s Knowledge, any other party, under any such License
Agreement. 
  
 (c) The Company and its Subsidiaries own or have
the valid right to use all of the Intellectual Property that is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted, free and clear
of all liens, encumbrances, adverse claims or obligations to license all such owned Intellectual Property and Confidential Information, other than licenses entered into in the ordinary course of the Company’s and its Subsidiaries’
businesses. The Company and its Subsidiaries have a valid and enforceable right to use all third party Intellectual Property and Confidential Information used or held for use in the respective businesses of the Company and its Subsidiaries as
currently conducted or as currently proposed to be conducted. 
  
 (d) The conduct of the Company’s and its Subsidiaries’ businesses as currently conducted and as currently proposed to be conducted does not and will not infringe any Intellectual Property rights of any third party or any
confidentiality obligation owed to a third party. To the Company’s Knowledge, the Intellectual Property and Confidential Information of the Company and its Subsidiaries which are necessary for the conduct of Company’s and each of its
Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted are not being infringed by any third party. Except as set forth on Schedule 4.14(d), there is no litigation or order pending or
outstanding or, to the Company’s Knowledge, threatened or imminent, that seeks to limit or challenge or that concerns the ownership, use, validity or enforceability of any Intellectual Property or Confidential Information of the Company and its
Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual Property or Confidential Information owned by a third party, and, to the Company’s Knowledge, there is no valid basis for the same. 
  
 (e) The consummation of the transactions contemplated hereby will not result
in the alteration, loss, impairment of or restriction on the Company’s or any of its Subsidiaries’ ownership or right to use any of the Intellectual Property or Confidential Information which is necessary for the conduct of the
Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted. 
  

 - 10 - 

 (f) To the Company’s Knowledge, all software owned by the Company or any of its Subsidiaries, and,
to the Company’s Knowledge, all software licensed from third parties by the Company or any of its Subsidiaries: (i) is free from any material defect or programming, design or documentation error; (ii) operates and runs in a reasonable and
efficient business manner; and (iii) conforms in all material respects to the specifications and purposes thereof. 
  
 (g) The Company and its Subsidiaries have taken reasonable steps to protect the Company’s and its Subsidiaries’ rights in their Intellectual
Property and Confidential Information. Each employee, consultant and contractor who has had access to Confidential Information and Intellectual Property which is necessary for the conduct of Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of such Confidential Information and Intellectual Property and has executed appropriate agreements that
are substantially consistent with the Company’s standard forms therefor. To the Company’s Knowledge, there has been no material disclosure of any of the Company’s or its Subsidiaries’ Confidential Information or Intellectual
Property to any third party without the Company’s consent. 
  
 4.15 Environmental Matters. Neither the Company nor any Subsidiary: (i) is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use,
disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”); (ii) owns or operates any
real property contaminated with any substance that is subject to any Environmental Laws; (iii) is liable for any off-site disposal or contamination pursuant to any Environmental Laws; and (iv) is subject to any claim relating to any Environmental
Laws; which violation, contamination, liability or claim has had or could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the Company’s Knowledge, threatened
investigation that might lead to such a claim. 
  
 4.16
Litigation. Except as disclosed in the SEC Filings, there are no pending actions, suits or proceedings against or affecting the Company, its Subsidiaries or any of its or their properties; and to the Company’s Knowledge, no such actions,
suits or proceedings are threatened or contemplated. 
  
 4.17
Financial Statements. The financial statements included in each SEC Filing fairly present the consolidated financial position of the Company and its Subsidiaries as of the dates shown and their consolidated results of operations and cash
flows for the periods shown, and such financial statements have been prepared in conformity with United States generally accepted accounting principles applied on a consistent basis. Except as set forth in the financial statements of the Company and
its Subsidiaries included in the SEC Filings filed prior to the date hereof, neither the Company nor any of its Subsidiaries has incurred any liabilities, contingent or otherwise, except those which, individually or in the aggregate, have not had or
could not reasonably be expected to have a Material Adverse Effect. 
  

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 4.18 Insurance Coverage. The Company and each Subsidiary maintains in full force and effect
insurance coverage sufficient to cover liabilities to which the Company may reasonably become subject, and such types and amounts of other insurance with respect to its business and properties as are customarily carried by persons engaged in the
same or similar business as the Company. 
  
 4.19 Brokers and
Finders. No Person will have, as a result of the transactions contemplated by this Agreement or the other Transaction Documents, any valid right, interest or claim against or upon the Company, any Subsidiary or any Investor for any commission,
fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company. 
  
 4.20 No Directed Selling Efforts or General Solicitation. Neither the Company nor any Affiliate, nor any Person acting on its behalf has conducted
any “general solicitation” or “general advertising” (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities. 
  
 4.21 No Integrated Offering. Neither the Company nor any of its Affiliates, nor any Person acting on its or their
behalf has, directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any Company security under circumstances that would adversely affect reliance by the Company on Section 4(2) of the Securities Act
for the exemption from the registration requirements imposed under Section 5 of the Securities Act for the transactions contemplated by this Agreement or the other Transaction Documents or would require such registration under the Securities Act.

  
 4.22 Private Placement. Subject to the accuracy of the
representations and warranties of the Investors contained in Section 5 hereof, the offer and sale of the Securities to the Investors as contemplated hereby is made in reliance upon available exemptions from the registration requirements of
the Securities Act. 
  
 4.23 Questionable Payments. Neither
the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of their respective current or former stockholders, directors, officers, employees, agents or other Persons acting on behalf of the Company or any Subsidiary, has on
behalf of the Company or any Subsidiary or in connection with their respective businesses: (i) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (ii) made any direct
or indirect unlawful payments to any governmental officials or employees from corporate funds; (iii) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (iv) made any false or fictitious entries on the
books and records of the Company or any Subsidiary; or (v) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature. 
  
 4.24 Transactions with Affiliates. Except as disclosed in SEC Filings made on or prior to the date hereof, none of
the officers or directors of the Company or a Subsidiary and, to the Company’s Knowledge, none of the employees of the Company, is presently a party to any transaction with the Company or a Subsidiary or to a presently contemplated transaction
(other than for services as employees, officers and directors) that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the Securities Act, without regard to the dollar thresholds contained in such Item.

  

 - 12 - 

 4.25 Nasdaq Compliance. The Common Stock is registered pursuant to Section 12(g) of the Exchange
Act, and is listed on the Nasdaq National Market, and the Company has taken no action designed to, or which to the Company’s Knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or
delisting the Common Stock from the Nasdaq National Market. No order ceasing or suspending trading in any securities of the Company or prohibiting the issuance and/or sale of the Securities is in effect and no proceedings for such purpose are
pending or, to the Company’s Knowledge, threatened. 
  
 5.
Representations and Warranties of the Investors. Each of the Investors hereby severally, and not jointly, represents and warrants to the Company on and as of the date hereof, knowing and intending that the Company rely thereon, that:

  
 5.1 Authorization. The Investor has the requisite
power and authority to enter into this Agreement and the Investor Rights Agreement. The execution, delivery and performance by the Investor of the Transaction Documents to which such Investor is a party have been duly authorized and will each
constitute the valid and legally binding obligation of the Investor, enforceable against the Investor in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability, relating to or affecting creditors’ rights generally, and general principles of equity. 
  
 5.2 Purchase Entirely for Own Account. The Securities to be received by the Investor hereunder will be acquired for the Investor’s own
account, not as nominee or agent, for investment purposes only and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and the Investor has no present intention of selling, granting any participation
in, or otherwise distributing the same in violation of the Securities Act. The Investor is not a registered broker dealer or an entity engaged in the business of being a broker dealer. 
  
 5.3 Investment Experience. The Investor acknowledges that it can bear the economic risk and complete loss of its
investment in the Securities and it has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment contemplated hereby. The Investor has significant experience in making
private investments, similar to the purchase of the Securities hereunder. The Investor understands that its investment in the Securities involves a high degree of risk. 
  
 5.4 Disclosure of Information. The Investor has received all additional information related to the Company and the
offer and sale of the Securities as requested by it and has had an opportunity to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities. The Investor
acknowledges receipt of copies of and its satisfactory review of the SEC Filings. Neither such inquiries nor any other due diligence investigation conducted by the Investor shall modify, amend or affect the Investor’s right to rely on the
Company’s representations and warranties contained in this Agreement. 
  

 - 13 - 

 5.5 Reliance on Exemptions. Each Investor understands that (i) the Securities are being offered
and sold in reliance upon specific exemptions from the registration requirements of the U.S. federal and state securities laws and (ii) the Company is relying upon the truth and accuracy of, and such Investor’s compliance with, the
representations, warranties, agreements, acknowledgements and understandings of such Investor set forth herein in order to determine the availability of such exemptions and the eligibility of such Investor to acquire the Securities. Each Investor
understands that no U.S. federal or state agency or any other government or governmental agency has passed upon the validity of or made any recommendation or endorsement of the Securities. 
  
 5.6 Restricted Securities. The Investor understands that the
Securities are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable
regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. 
  
 5.7 Legends. 
  
 (a) It is understood that, except as provided below, certificates evidencing such Securities may bear a restrictive legend in the following form:

  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE LAWS OF ANY STATE OF THE UNITED STATES OR IN ANY OTHER JURISDICTION. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN
REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, OR (II) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.” 
  
 (b) If required by the authorities of any state in connection with the issuance of sale of the Securities, certificates evidencing such Securities may bear the legend required by such state authority. 
  
 (c) From and after the earlier of: (i) the registration of the Preferred
Shares and the Warrant Shares for resale pursuant to the Investor Rights Agreement; and (ii) the time when the Corporation receives from its independent legal counsel an opinion that the Securities are then eligible for transfer pursuant to Rule
144(k) promulgated under the Securities Act, the Company shall, upon an Investor’s written request (the “Certificate Request”), promptly cause certificates evidencing such Securities to be replaced with certificates which do
not bear 
  

 - 14 - 

 such restrictive legends. When the Company is required to cause unlegended certificates to replace previously issued
legended certificates, if unlegended certificates are not delivered to an Investor within three (3) Business Days of submission by that Investor of legended certificate(s) to the Company’s transfer agent together with a representation letter in
customary form, the Company shall be liable to the Investor for liquidated damages equal to1.5% of the aggregate market price (i.e., the highest closing price during such three day period) of the Securities evidenced by such certificate(s) for each
10-day period (or portion thereof) beyond such three (3) Business Day-period that the unlegended certificates have not been so delivered. Notwithstanding the foregoing, such three (3) Business Day-period shall be extended until the Company or its
transfer agent has received from the Investor such information as is necessary for the issuance of the unlegended certificates in accordance with applicable Federal and state securities laws and as is reasonably requested in writing by the Company
promptly, and in no even more than one (1) Business Day, following the Company’s receipt of such Investor’s Certificate Request. The Company shall pay such amount(s) to the Investor upon demand therefor, and such payment shall be in
addition to, and not in lieu of, all other remedies and rights available to such Investor. 
  
 5.8 Accredited Investor. The Investor is an “accredited investor” as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act. 
  
 5.9 No General Solicitation. The Investor did not learn of the
investment in the Securities as a result of any “general advertising” or “general solicitation” as those terms are contemplated in Regulation D, as amended, under the Securities Act. The Investor is a resident of the jurisdiction
set forth under such Investor’s name on Schedule I hereto. 
  
 5.10 Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement or any other Transaction Document, any valid right, interest or claim against or upon the Company, any Subsidiary or any
other Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Investor. 
  
 6. Conditions to Closing. 
  

6.1 Conditions to the Investors’ Obligations. The obligation of the Investors to purchase the Securities at Closing is subject to the
fulfillment, to the satisfaction of each of the Investors, on or prior to the Closing Date, of the following conditions, any of which may be waived in writing by all of the Investors: 
  
 (a) The representations and warranties made by the Company in Section 4 hereof shall be true and correct on the
Closing Date. The Company shall have performed in all material respects all obligations and conditions herein required to be performed or observed by it on or prior to the Closing Date; 
  
 (b) The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers
necessary or appropriate for consummation of the purchase and sale of the Securities all of which shall be in full force and effect; 
  

 - 15 - 

 (c) The Company shall have executed and delivered a counterpart to the Investor Rights Agreement to each
Investor; 
  
 (d) No judgment, writ, order, injunction, award or
decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental
authority, or self-regulatory organization enjoining or preventing the consummation of the transactions contemplated by this Agreement or any other Transaction Document; 
  
 (e) The Company shall have delivered to the Investors a certificate, dated as of the Closing Date, executed by the Chief
Executive Officer or Chief Financial Officer of the Company, certifying as to the fulfillment of the conditions specified in subsections (a), (b), (d) and (h) of this Section 6.1; 
  
 (f) The Company shall have delivered to the Investors a certificate, dated as of the Closing Date, executed by the
Secretary of the Company, certifying as to: (i) the resolutions of the Board of Directors of the Company authorizing the transactions contemplated by this Agreement and the other Transaction Documents; (ii) the Certificate of Incorporation of the
Company; (iii) the By-Laws of the Company, each as in effect as of the Closing Date and (iv) a good standing certificate from the Secretary of State of the State of Delaware; 
  
 (g) The Investors shall have received an opinion, in the form attached hereto as Exhibit D, dated as of the Closing
date, from Company Counsel; 
  
 (h) No stop order or suspension
of trading shall have been imposed by any Person with respect to public trading in the Common Stock; and 
  
 (i) The Company shall have delivered evidence satisfactory to the Investors of the filing of the Certificate of Designations with the Secretary of State
of the State of Delaware. 
  
 6.2 Conditions to Obligations of
the Company. The Company’s obligation to sell and issue the Shares and the Warrants at Closing is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be
waived in writing by the Company: 
  
 (a) The representations
and warranties made by the Investors in Section 5 hereof shall be true and correct in all material respects on the Closing Date; 
  
 (b) Each of the Investors shall have executed and delivered a counterpart to the Investor Rights Agreement to the Company; 
  
 (c) Each of the Investors shall have delivered to the Company the amount
set forth as the “Purchase Price” opposite such Investor’s name on Schedule I attached hereto; and 
  

 - 16 - 

 (d) No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or
magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental authority, or self-regulatory organization
enjoining or preventing the consummation of the transactions contemplated by this Agreement or any other Transaction Document. 
  
 7. Covenants and Agreements of the Company. 
  
 7.1 Reservation of Common Stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of providing for the conversion of the Preferred Stock and the exercise of the Warrants, such number of shares of Common Stock as shall from time to time equal the number of shares sufficient to permit the conversion of
the Preferred Stock and the exercise of the Warrants issued pursuant to this Agreement in accordance with their respective terms, without regard to any exercise limitations contained therein. 
  
 7.2 No Conflicting Agreements. The Company will not take any action,
enter into any agreement or make any commitment that would conflict or interfere in any material respect with the Company’s obligations to the Investors under the Transaction Documents. 
  
 7.3 Insurance. The Company shall not materially reduce the insurance
coverages described in Section 4.18. 
  
 7.4 Compliance
with Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees of all governmental authorities, except to the extent non-compliance would not have a Material Adverse Effect.

  
 7.5 Use of Proceeds. The proceeds from the sale of the
Securities shall be used for the payment of expenses related to the transactions contemplated hereby and for general corporate purposes consistent with the Company’s business as of the Closing Date. 
  
 7.6 Exchange Listing. The Company shall use its best efforts to
maintain the listing of its shares of Common Stock the Nasdaq National Market or any other Eligible Market. 
  
 8. Survival and Indemnification. 
  
 8.1 Survival. All representations, warranties, covenants and agreements contained in this Agreement shall be deemed to be representations,
warranties, covenants and agreements as of the date hereof and shall survive the Closing Date until the third anniversary thereof; provided, however, that the provisions contained in: (a) Section 4.4 hereof shall survive
indefinitely; and (b) Sections 4.10 and 4.15 shall survive until 90 days after the applicable statute of limitations. 
  
 8.2 Indemnification. The Company shall indemnify and hold harmless, each Investor and its Affiliates and the directors, officers, employees,
investors, partners and agents of each Investor and its Affiliates, from and against any and all losses, claims, damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements and other 
  

 - 17 - 

 expenses incurred in connection with investigating, preparing or defending any action, claim or proceeding, pending or
threatened and the costs of enforcement hereof) (collectively, “Losses”) to which any such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by, or to be performed on the
part of, the Company under the Transaction Documents, and will reimburse any such Person for all such amounts as they are incurred by such Person. 
  
 8.3 Conduct of Indemnification Proceedings. Promptly after receipt by any Person (the “Indemnified Person”) of notice of any demand,
claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity may be sought pursuant to Section 8.2, such Indemnified Person shall promptly notify
the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the payment of all fees and expenses in connection with such defense
and such counsel; provided, however, that the failure of any Indemnified Person to so notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually and materially
prejudiced by such failure to notify. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company
and the Indemnified Person shall have mutually agreed to the retention of such counsel; or (ii) in the reasonable judgment of counsel to such Indemnified Person (x) representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them or (y) if there are one or more defenses available to such Indemnified Person that is/are not available to the Company. The Company shall not be liable for any settlement of any proceeding
effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned, but if settled with such consent, or if there be a final judgment for the plaintiff therein, the Company shall indemnify and hold
harmless such Indemnified Person from and against any Losses by reason of such settlement or judgment. Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned, the Company
shall not effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement
includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding. 
  
 9. Miscellaneous. 
  
 9.1 Successors and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Investors,
as applicable; provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part, without the prior written consent of the Company, to an Affiliate or the other Investors, provided, that,
no such assignment shall be effective or confer any right on any such assignee unless, prior to such assignment, the assignee agrees in writing that such assignee will be bound by all provisions binding on such Investor hereunder. The provisions of
this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Except for Cerberus Counsel, which is an express intended third-party beneficiary hereof for the limited purpose of
Section 9.5 of this Agreement, and except for any 
  

 - 18 - 

 other provisions of this Agreement expressly to the contrary, nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement. 
  
 9.2 Counterparts; Faxes. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be deemed an original. 
  
 9.3 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement. 
  
 9.4 Notices. Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given as hereinafter described: (i) if given by personal delivery, then such
notice shall be deemed given upon such delivery; (ii) if given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete transmittal; (iii) if given by mail, then such notice shall be deemed given upon
the earlier of (A) receipt of such notice by the recipient or (B) three (3) days after such notice is deposited in first class mail, postage prepaid; and (iv) if given by an internationally recognized overnight air courier, then such notice shall be
deemed given one (1) day after delivery to such carrier. All notices shall be addressed to the party to be notified at the address as follows, or at such other address as such party may designate by ten (10) days’ advance written notice to the
other party: 
  

			
	 If to the Company:
	 	 
	 	 	 Biosphere Medical, Inc.

	 	 	 1050 Hingham Street

	 	 	 Rockland, Massachusetts 02370

	 	 	 Attn: President

	 	 	 Fax: (781) 681-5093

		
	 With a copy to:
	 	 
		
	 	 	 Wilmer Cutler Pickering Hale and Dorr LLP

	 	 	 60 State Street

	 	 	 Boston, Massachusetts 02109

	 	 	 Attn: Susan W. Murley, Esq.

	 	 	 Fax: (617) 526-5000

	
	 If to any of the Investors:

		
	 	 	 to the addresses set forth on Schedule I attached hereto.

  

 - 19 - 

 9.5 Expenses. The Company shall pay the fees and expenses of Cerberus Counsel in connection with
the transactions contemplated by this Agreement (the “Cerberus Counsel Fees”), in an amount not to exceed $100,000 through the Closing Date, which Cerberus Counsel Fees shall include, without limitation, the fees and expenses
associated with the negotiation, preparation and execution and delivery of this Agreement and the other Transaction Documents. The Cerberus Counsel Fees shall be paid to Cerberus Counsel on the Closing Date by the wire transfer from the Company to
Cerberus Counsel. Except as set forth above, the Company and the Investors shall each bear their own expenses in connection with the negotiation, preparation, execution and delivery of this Agreement. In the event that legal proceedings are
commenced by any party to this Agreement against another party to this Agreement in connection with this Agreement or the other Transaction Documents, the party or parties which do not prevail in such proceedings shall severally, but not jointly,
pay their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the prevailing party in such proceedings. 
  
 9.6 Amendments and Waivers. This Agreement shall not be amended and the observance of any term of this Agreement
shall not be waived (either generally or in a particular instance and either retroactively or prospectively) without the prior written consent of the Company and the Investors; provided, however, that any provision hereof which impairs
the rights or increases the obligations of a specific Investor disproportionately to other Investors shall not be amended or waived without the prior written consent of the Company and that particular Investor; provided, further, that
any provision affecting the rights or obligations of Cerberus Counsel, shall not be waived or amended without the prior written consent of Cerberus Counsel. Any amendment or waiver effected in accordance with this Section 9.6 shall be binding
upon each holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities, and the Company. 
  
 9.7 Publicity. No public release or announcement concerning the transactions contemplated by this Agreement or any other Transaction Document shall
be issued by the Company or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors) or the Investors (in the case of a release or announcement by the Company) (which consents shall not be
unreasonably withheld), except as such release or announcement may be required by law or the applicable rules or regulations of any securities exchange or securities market on which the Securities are then listed and trading, in which case the
Company or the Investors, as the case may be, shall allow the Investors or the Company, as applicable, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in advance of such issuance.

  
 9.8 Severability. Any provision of this Agreement that
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were
written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 
  

 - 20 - 

 9.9 Entire Agreement. This Agreement, including the Exhibits and Schedules, and the other
Transaction Documents constitute the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to
the subject matter hereof and thereof. Prior drafts or versions of this Agreement shall not be used to interpret this Agreement. 
  
 9.10 Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 
  
 9.11 Governing Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State
of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the 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. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any
such suit, action or proceeding and to the laying of venue in such court. 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. THE COMPANY AND EACH OF THE INVESTORS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATING TO OR
ARISING OUT OF THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. 
  
 [signature page follows] 
  

 - 21 - 

 [Company Signature Page] 
  
 IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written. 
  

			
	BIOSPHERE MEDICAL, INC.
		
	 By:
	 	 /s/ Martin J. Joyce

	 Name:
	 	 Martin J. Joyce

	 Title:
	 	 Vice President and Chief Financial Officer

  

 - 22 - 

 [Investor Signature Page] 
  
 IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written. 
  

			
	NAME OF INVESTOR:
	
	 Sepracor Inc.

	 (Print Name of Investor)

		
	 By:
	 	 /s/ Timothy J. Barberich

	 Name:
	 	 Timothy J. Barberich

	 Title:
	 	 Chairman of the Board of Chief
 Executive Officer

  

 - 23 - 

 [Investor Signature Page] 
  
 IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written. 
  

			
	CERBERUS PARTNERS, L.P.
		
	 By:
	 	 Cerberus Associates, LLC,

	 	 	 Its General Partner

		
	 By:
	 	 /s/ Seth Plattus

	 	 	 Seth Plattus

	 	 	 Managing Director

  

 - 24 - 

 Schedule I 
  
 Investors 
  

								
	 Name and Address of Investor

	  	Purchase Price

	  	Number of Shares
of Preferred Stock

	  	Number of
Warrants

	 Cerberus Partners, L.P.
 299 Park Avenue, 22nd Floor
 New York, New York 10171
 Attn: Mr. Seth P. Plattus
 Fax: (212) 891-1541
	  	$	4,000,000	  	4,000	  	200,000
				
	 And
	  	 	 	  	 	  	 
				
	 Cerberus Partners, L.P.
 299 Park Avenue, 22nd Floor
 New York, New York 10171
 Attn: Mr. Daniel Frank
 Fax: (212) 284-7818
	  	 	 	  	 	  	 
				
	 Resident of the State of New York
	  	 	 	  	 	  	 
				
	 With a copy to:
	  	 	 	  	 	  	 
				
	 Lowenstein Sandler PC
 65 Livingston Avenue
 Roseland, NJ 07068
 Attn: Robert G. Minion, Esq.
 Fax: (973) 597-2400
	  	 	 	  	 	  	 
				
	 Sepracor, Inc.
 84 Waterford Drive
 Marlborough, MA 01752
 Attn: President
 Fax: 508-357-7495
	  	$	4,000,000	  	4,000	  	200,000
				
	 With a copy to:
	  	 	 	  	 	  	 
				
	 Wilmer Cutler Pickering Hale and Dorr LLP
 60 State Street
 Boston, Massachusetts 02109
 Attn: Susan W. Murley, Esq.
 Fax: (617) 526-5000
	  	 	 	  	 	  	 
	 	  	
	
	  	
	  	

				
	 Total
	  	$	8,000,000	  	8,000	  	400,000
	 	  	
	
	  	
	  	

  

 1 

 Exhibits 
  

			
	 Exhibit A
	  	 Certificate of Designations

	 Exhibit B
	  	 Warrant

	 Exhibit C
	  	 Investor Rights Agreement

	 Exhibit D
	  	 WCPHD Opinion

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