Document:

EX-4.8

 

Exhibit 4.8

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

          AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of September
19, 2006, by and among Biodel, Inc. (the “Company”), a Delaware corporation, and the Investors (as
such term is defined herein) signatory hereto.

W I T N E S S E T H:

          WHEREAS, pursuant to the terms of the Securities Purchase Agreement (the “Purchase
Agreement”), dated as of July 19, 2006, by and among the Company and the Institutional Investors,
the Institutional Investors purchased from the Company 5,380,711 shares of Series B Convertible
Preferred Stock, $0.01 par value per share (“Series B Preferred Stock”), of the Company (the
“Institutional Investor Shares”), and warrants (the “Institutional Investor Warrants”) to purchase
an aggregate of 4,076,497 shares of the Company’s Common Stock, (the “Common Stock”), $0.01 par
value per share, for an aggregate purchase price of $21,000,000; and

          WHEREAS, the Company and the Institutional Investors entered into a Registration Rights
Agreement, dated as of July 19, 2006 (the “Original Registration Rights Agreement”), to provide for
the circumstances under which the Company will register securities of the Company on behalf of the
Institutional Investors; and

          WHEREAS, Solomon S. Steiner and the 1999 Weisman Family Trust purchased 38,071 shares and
12,690 shares of Series B Preferred Stock, respectively, and warrants to purchase 28,930 shares and
9,643 shares of Common Stock, respectively, pursuant to the Purchase Agreement; and

          WHEREAS, prior to the purchase by the Institutional Investors of the Institutional Investor
Shares and the Institutional Investor Warrants, the Company issued to certain investors units
(each, a “Unit” and collectively, the “Units”) consisting of a 7% promissory note and a warrant to
purchase shares of Common Stock, and the Units were convertible by the Company into the securities
that were issued pursuant to the transactions contemplated by the Purchase Agreement; and

          WHEREAS, the Company has so converted the Units into shares of Series B Preferred Stock
and warrants to purchase shares of Common Stock, and the Company desires to

 

 

provide to each former holder of Units the opportunity to obtain registration rights with
regard to the shares of Common Stock issuable to such former holders upon conversion of their
respective shares of Series B Preferred Stock and Series B Warrants, upon the terms and subject to
the conditions set forth in this Agreement; and

          WHEREAS, in connection with the issuance of securities to the Institutional Investors pursuant
to the Securities Purchase Agreement, the Company issued to Scott A. Weisman and to McGinn Smith
Holdings, LLC certain warrants (the “McGinn Warrants”) to purchase shares of Series B Preferred
Stock and Common Stock, and the Company desires to provide to each of such warrant holders the
opportunity to obtain registration rights with regard to the shares of Common Stock issuable to
them, upon the terms and subject to the conditions set forth in this Agreement; and

          WHEREAS, to effect the foregoing, the Company and the Institutional Investors desire to amend
and to restate in its entirety the Original Registration Rights Agreement as provided below.

          NOW, THEREFORE, in consideration of the premises and of the mutual covenants and obligations
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company hereby covenants and agrees with the Investors, and
with each subsequent holder of Restricted Securities (as such term is defined herein) as follows:

          Section 1. Definitions. As used herein, the following terms shall have the following
respective meanings:

     “Certificate of Designation” shall mean the Certificate of Designation of Series B
Convertible Preferred Stock of the Company, as in effect as of the date hereof.

     “Certificate of Incorporation” shall mean the Certificate of Incorporation of the
Company, as amended, in effect on the date hereof.

     “Commission” shall mean the Securities and Exchange Commission, or any other Federal
agency at the time administering the Securities Act.

     “Common Stock” shall mean, collectively, the shares of common stock, $0.01 par value
per share, of the Company, and any class or series of common stock of the

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Company authorized after the date hereof, or any other class or series of stock resulting from
successive changes or reclassifications of any class or series of common stock of the
Company.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any
similar Federal statute, and the rules and regulations of the Commission thereunder, all as
the same shall be in effect at the time.

     “Initial Public Offering” shall mean the sale by the Company or any other person or
entity of equity securities of the Company pursuant to a registration statement on Form S-1
(or its then equivalent) under the Securities Act in conjunction with which such equity
securities become registered under the Exchange Act.

     “Institutional Investor Shares” shall have the meaning ascribed to such term in the
recitals hereto.

     “Institutional Investor Warrants” shall have the meaning ascribed to such term in the
recitals hereto.

     “Institutional Investors” shall mean Great Point Partners I, L.P., Vivo Ventures Fund
V, L.P., Vivo Ventures V Affiliates Fund, L.P., Caduceus Private Investments II, L.P.,
Caduceus Private Investments II (QP), L.P., UBS Juniper Crossover Fund, L.L.C., New England
Partners Capital, L.P. and Nexus Medical Partners II S.C.A. SICAR.

     “Investors” means each of the Institutional Investors and each of the Permitted New
Investors.

     “Investor Shares” means the Institutional Investor Shares and the Permitted New
Investor Shares.

     “Investor Warrants” means the Institutional Investor Warrants and the Permitted New
Investor Warrants.

     “Material Transaction” means any material transaction in which the Company proposes to
engage or is engaged, including a purchase or sale of assets or securities, financing,
merger, consolidation or any other transaction that, in each case, would require disclosure
pursuant to the Securities Act or Exchange Act, and with respect to which the

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Company’s Board of Directors has reasonably determined in good faith that compliance
with this Agreement would require the Company to disclose material, non-public information
prior to such time as it would otherwise be required to be disclosed.

     “McGinn Warrants” shall have the meaning ascribed to such term in the recitals hereto.

     “Original Registration Rights Agreement” shall have the meaning ascribed to such term
in the recitals hereto.

     “Permitted New Investors” shall mean each of the persons and entities set forth on
Annex II hereto and who shall become a party to this Agreement pursuant to a joinder
agreement in substantially the form attached to this Agreement as Annex II.

     “Permitted New Investor Shares” shall mean the shares of Series B Preferred Stock into
which the former Units of the Permitted New Investors have been converted by the Company,
the shares of Series B Preferred Stock purchased by Solomon S. Steiner and the 1999 Weisman
Family Trust pursuant to the Purchase Agreement, and the shares of Series B Preferred Stock
issuable to Scott A. Weisman and to McGinn Smith Holdings, LLC upon exercise of the McGinn
Warrants, in each case as set forth on Annex III hereto.

     “Permitted New Investor Warrants” shall mean the warrants to purchase shares of Common
Stock issued to the Permitted New Investors upon the conversion of their respective Units,
the warrants to purchase shares of Common Stock issued to Solomon S. Steiner and the 1999
Weisman Family Trust pursuant to the Purchase Agreement, and the warrants to purchase shares
of Series B Preferred Stock and Common Stock issuable to Scott A. Weisman and to McGinn
Smith Holdings, LLC issuable pursuant to the McGinn Warrants, in each case as set forth on
Annex III hereto.

     “Purchase Agreement” shall have the meaning ascribed to such term in the recitals
hereto.

     “Registration Expenses” shall mean the expenses so described in Section 5
hereof.

     “Restricted Securities” shall mean the Investor Shares and the Restricted Stock.

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     “Restricted Stock” shall mean the shares of Common Stock into which the Investor Shares
are convertible, the shares of Common Stock issuable upon exercise of the Investor Warrants,
and any capital stock or other securities issued or issuable with respect to such Investor
Shares, Investor Warrants, or Common Stock by way of a stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, conversion, consolidation
or other reorganization.

     “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar
Federal statute, and the rules and regulations of the Commission thereunder, all as the same
shall be in effect at the time.

     “Series A Preferred Stock” shall mean the Series A Convertible Preferred Stock of the
Company, $0.01 par value per share.

     “Series B Preferred Stock” shall have the meaning ascribed to such term in the recitals
hereto.

     “Selling Expenses” shall mean the expenses so described in Section 5 hereof.

     “Stockholders’ Agreement” shall mean the Stockholders’ Agreement, dated as of the date
hereof, between the Company and the Stockholders signatory thereto, as may be amended from
time to time.

     “Threshold Amount” shall mean that number of Investors holding at least fifty percent
(50%) of the Restricted Stock then held by all Investors.

     “Unit” and “Units” shall have the meanings ascribed to such terms in the recitals
hereto.

          Section 2.  Required Registration.

               (a) At any time beginning six months following the completion of an Initial Public Offering, a
Threshold Amount of the Investors may, by written notice, request that the Company register under
the Securities Act all or any portion of the shares of Restricted Stock held by such requesting
holders (or which would be held by such requesting holders, upon conversion of the Investor Shares
and Investor Warrants owned by such requesting holders) for sale in the manner specified in such
notice; provided, however, that the Company shall not be

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obligated to register Restricted Stock pursuant to such request: (i) subject to Section
3(a) below, during the period beginning 30 days prior to the filing, and ending on a date 90
days following the effective date, of a registration statement filed by the Company relating to an
underwritten offering only of the Company’s capital stock (other than a registration statement for
the Company’s capital stock which does not give rise to incidental registration rights pursuant to
Section 3(a) below) provided that the Company is actively employing in good faith its best
efforts to cause such registration statement to become effective; or (ii) if the Company, upon the
advice of counsel, notifies the requesting Investors that the filing of such a registration
statement would require the disclosure of material non-public information about the Company that
the Company is not otherwise required to disclose, the disclosure of which could have a material
adverse effect on the business or financial condition of the Company, in which event no such
registration statement need be filed until the earlier of the lapse of 60 days from the date of the
notification of the Company or such information is no longer required to be disclosed, is not
material or non-public, or its disclosure would not have a material adverse effect on the business
or financial condition of the Company; provided, however, that the Company may not
exercise its right under this clause (ii) more than twice in any 12-month period. Notwithstanding
anything to the contrary contained herein, no request may be made under this Section 2
within 180 days after the effective date of a registration statement filed by the Company covering
a firm commitment underwritten public offering in which the holders of Restricted Stock shall have
been entitled to join pursuant to this Section 2 or Section 3 hereof and in which
there shall have been effectively registered all shares of Restricted Stock as to which
registration shall have been so requested.

               (b) Promptly following receipt of any notice under this Section 2, the Company shall
immediately notify all other Investors from whom notice has not been received and shall file and
use its reasonable best efforts to have declared effective a registration statement under the
Securities Act for the public sale, in accordance with the method of disposition specified in such
notice from requesting holders, of the number of shares of Restricted Stock specified in such
notice (and in any notices received from other holders of Restricted Stock within 15 days after the
date of such notice from the Company). If such method of disposition shall be an underwritten
public offering, the Investors participating in such registration who own a majority in interest of
the Restricted Stock to be included in such registration by such Investors may designate the
managing underwriter of such offering, subject to the approval of the Company, which approval shall
not be unreasonably withheld. The number of shares of Restricted Stock to be included in such an
underwriting may be reduced (pro rata among all holders requesting, under this
Section 2, to participate in such registration) if and to the extent

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that the managing underwriter shall be of the opinion that such inclusion would adversely affect the marketing of the
securities to be sold therein. With respect to the preceding sentence, if the Company elects
to reduce pro rata the amount of Restricted Stock proposed to be offered in the
underwriting, for purposes of making any such reduction, each holder of Restricted Stock which is a
partnership, together with the affiliates, partners, employees, retired partners and retired
employees of such holder, the estates and family members of any such partners, employees, retired
partners and retired employees and of their spouses, and any trusts for the benefit of any of the
foregoing persons shall be deemed to be a single “person”, and any pro rata
reduction with respect to such “person” shall be based upon the aggregate number of shares of
Restricted Stock owned by all entities and individuals included as such “person,” as defined in
this sentence (and the aggregate number so allocated to such “person” shall be allocated among the
entities and individuals included in such “person” in such manner as such holder of Restricted
Stock may reasonably determine). The Company shall be obligated to register Restricted Stock
pursuant to requests made under this Section 2 on two occasions only; provided,
however, that as to such occasion such obligation shall be deemed satisfied only when a
registration statement covering all shares of Restricted Stock specified in notices received as
aforesaid (or such lesser number of shares (but not less than 75% for the shares of Restricted
Stock specified in such notice) as may have been determined by the managing underwriter), for sale
in accordance with the method of disposition specified by the requesting holders, shall have become
effective and, if such method of disposition is a firm commitment underwritten public offering, all
such shares shall have been sold pursuant thereto.

               (c) The Company shall be entitled to include in any registration statement referred to in this
Section 2 for which the method of distribution is an underwritten public offering, for sale
in accordance with the method of disposition specified by the requesting holders, shares of Common
Stock to be sold by the Company for its own account, except as and to the extent that, in the
opinion of the managing underwriter (if such method of disposition shall be an underwritten public
offering), such inclusion would adversely affect the marketing of the Restricted Stock to be sold.
Except as set forth in this Section 2, no securities shall be included in any registration
statement referred to in this Section 2 without the prior written consent of the holders of
a majority in interest of the Investors’ Restricted Stock requested to be included in such
registration. Except with respect to registration statements on Form S-4 or S-8 or a registration
statement contemplated by the first sentence of this Section 2(c), the Company will not file with
the Commission any other registration statement with respect to its Common Stock, whether for its
own account or that of other stockholders, from the date of receipt of a notice

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from requesting holders pursuant to this Section 2 until the completion of the period of distribution of
the registration contemplated thereby.

          Section 3.  Incidental Registration; Certain Registration.

               (a) If the Company at any time (other than pursuant to Section 2 hereof) proposes to
register any of its securities under the Securities Act for sale to the public, whether for its own
account or for the account of other security holders or both (except with respect to registration
statements on Form S-8, S-4, or another form which is not available for registering Restricted
Stock for sale to the public), each such time it will give prompt written notice to all holders of
Restricted Stock of its intention to do so. Upon the written request of any such holder, given
within 20 days after the date of any such notice, to register any of its Restricted Stock (which
request shall state the intended method of disposition thereof), the Company will cause the
Restricted Stock as to which registration shall have been so requested to be included in the
securities to be covered by the registration statement proposed to be filed by the Company, all to
the extent requisite to permit the sale or other disposition by the holder (in accordance with its
written request) of such Restricted Stock so registered. The Company may withdraw any such
registration statement before it becomes effective or postpone the offering of securities
contemplated by such registration statement without any obligation to the holders of any Restricted
Stock. In the event that any registration pursuant to this Section 3 shall be, in whole or
in part, an underwritten public offering of Common Stock, any request by a holder pursuant to this
Section 3 to register Restricted Stock shall specify that either (i) such Restricted Stock
is to be included in the underwriting on the same terms and conditions as the shares of Common
Stock otherwise being sold through underwriters under such registration or (ii) such Restricted
Stock is to be sold in the open market without any underwriting, on terms and conditions comparable
to those normally applicable to offerings of common stock in reasonably similar circumstances. The
number of shares of Common Stock, including, without limitation Restricted Stock, to be included in
such an underwriting may be reduced (pro rata among the requesting holders of Restricted Stock) if
and to the extent that the managing underwriter shall be of the opinion that such inclusion would
adversely affect the marketing of the securities to be sold by the Company therein;
provided, however, that, subject to the rights of the holders of Series A Preferred
Stock, if any shares are to be included in such underwriting for the account of any person other
than the Company, the number of shares to be included by any such person shall be reduced first to
zero, if necessary, before any Restricted Stock is reduced. With respect to the proviso of the
preceding sentence, if the Company elects to reduce pro rata the amount of Restricted Stock
proposed to be offered in the underwriting for the accounts of all persons other

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than the Company,for purposes of making any such reduction, each holder of Restricted Stock which is a partnership,
together with the affiliates, partners, employees, retired partners and retired employees of such
holder, the estates and family members of any such partners, employees, retired partners and
retired employees and of their spouses, and any trusts for the benefit of any of the foregoing persons
shall be deemed to be a single “person,” and any pro rata reduction with respect to
such “person” shall be based upon the aggregate number of shares of Restricted Stock owned by all
entities and individuals included as such “person”, as defined in this sentence (and the aggregate
number so allocated to such “person” shall be allocated among the entities and individuals included
in such “person” in such manner as such holder of Restricted Stock may reasonably determine).
Notwithstanding anything to the contrary contained in this Section 3, in the event that
there is an underwritten offering of securities of the Company pursuant to a registration statement
covering Restricted Stock and a selling holder of Restricted Stock does not elect to sell his, her
or its Restricted Stock to the underwriters of the Company’s securities in connection with such
offering, such holder shall refrain from selling such Restricted Stock not registered pursuant to
this Section 3 during the period of distribution of the Company’s securities by such
underwriters and the period in which the underwriting syndicate participates in the after market;
provided, however, that such holder shall, in any event, be entitled to sell its
Restricted Stock commencing on the 120th day after the effective date of such registration
statement.

               (b) If, at a time when Form S-3 is available for such registration, the Company shall receive
from any Investor a written request or requests that the Company effect a registration on Form S-3
of any of such holder’s Restricted Stock, the Company will promptly give written notice of the
proposed registration to all other holders of Restricted Stock and, as soon as practicable, effect
such registration and all such related qualifications and compliances as may be requested and as
would permit or facilitate the sale and distribution of all Restricted Stock as are specified in
such request and any written requests of other holders of Restricted Stock given within 20 days
after receipt of such notice. The Company shall not be required to file a registration statement
under Form S-3 if it would not be required to file a registration statement under Section 2
hereof pursuant to Section 2(a)(ii). The Company shall have no obligation to effect a
registration under this Section 3(b) unless either (i) all the outstanding shares of
Restricted Stock are requested to be sold pursuant to such registration or (ii) the aggregate
offering price of the securities requested to be sold pursuant to such registration is, in the good
faith judgment of the Company, expected to be equal to or greater than $3,000,000. Any
registration under this Section 3(b) will not be counted as a registration under
Section 2 above.

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          Section 4. Registration Procedures. If and whenever the Company is required by the
provisions of Section 2 or 3 hereof to effect the registration of any shares of
Restricted Stock under the Securities Act, the Company will expeditiously:

               (a) prepare and file with the Commission a registration statement (which, in the case of an
underwritten public offering pursuant to Section 2 hereof, shall be on Form S-1 or other
form of general applicability satisfactory to the managing underwriter selected as therein
provided) with respect to such securities and use its reasonable best efforts to cause such
registration statement to become and remain effective (provided that before filing a registration
statement or any amendments or supplements thereto, the Company will furnish to the counsel
selected by the holders of a majority of the Restricted Stock covered by such registration
statement copies of all such documents and provide an opportunity for such counsel to provide
comments on such documents) for the period of the distribution contemplated thereby (determined as
hereinafter provided);

               (b) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for the period specified in Section 4(a) above and as to
comply with the provisions of the Securities Act with respect to the disposition of all Restricted
Stock covered by such registration statement in accordance with the sellers’ intended method of
disposition set forth in such registration statement for such period;

               (c) furnish to each seller and to each underwriter such number of copies of the registration
statement and the prospectus included therein (including each preliminary prospectus and any
amendment or supplement thereto) and such other documents as such persons may reasonably request in
order to facilitate the public sale or other disposition of the Restricted Stock covered by such
registration statement;

               (d) use its reasonable best efforts to register or qualify the Restricted Stock covered by
such registration statement under the securities or blue sky laws of such jurisdictions as the
sellers of Restricted Stock or, in the case of an underwritten public offering, the managing
underwriter shall reasonably request and do any and all other acts and things which are reasonably
necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of
the Restricted Stock owned by such seller (provided that the Company will not be required to (i)
qualify generally to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subsection or (ii) consent to general service of process (i.e.,

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service of
process which is not limited solely to securities law violations) in any such jurisdiction);

               (e) immediately notify each seller under such registration statement and each underwriter, at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of the happening of any event as a result of which the prospectus
contained in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances then existing and,
subject to Section 2(a), at the request of any seller, the Company will promptly prepare a
supplement or amendment to such registration statement so that, as thereafter delivered to the
purchasers of such Restricted Stock, such registration statement will not contain an untrue
statement of a material fact or omit to state any fact necessary to make the statements therein not
misleading;

               (f) furnish, at the request of any seller, on the date that Restricted Stock is delivered to
the underwriters for sale pursuant to such registration: (i) an opinion dated such date of counsel
representing the Company for the purposes of such registration, addressed to the underwriters and
to such seller, (A) stating that such registration statement has become effective under the
Securities Act, (B) stating that, to the best knowledge of such counsel, no stop order suspending
the effectiveness thereof has been issued and no proceedings for that purpose have been instituted
or are pending or contemplated under the Securities Act, (C) stating that the registration
statement and the related prospectus, and each amendment or supplement thereof, comply as to form
in all material respects with the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder (except that such counsel need not express any opinion as
to financial statements and statistical information contained therein), (D) containing a 10b-5
opinion in customary form (which at such counsel’s option may be in a separate letter) and (E) to
such other effects as may reasonably be requested by counsel for the underwriters, and (ii) a
letter dated such date from the independent public accountants retained by the Company, addressed
to the underwriters, (A) stating that they are independent public accountants within the meaning of
the Securities Act and that, in the opinion of such accountants, the financial statements of the
Company included in the registration statement or the prospectus, or any amendment or supplement
thereof, comply as to form in all material respects with the applicable accounting requirements of
the Securities Act, and such letter shall additionally cover such other financial matters
(including information as to the period ending no more than five business days prior to the date of
such letter) with respect to the registration in respect of which such letter is being given as
such underwriters or such seller may reasonably request, and (B)

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containing “cold comfort” language
covering such matters of the type customarily covered by “cold comfort” letters as the holders of a
majority in nominal value of the Restricted Stock being sold reasonably request;

               (g) make available for inspection by each seller, any underwriter participating in any
distribution pursuant to such registration statement, and any attorney, accountant or other agent
retained by such seller or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company’s officers, directors, employees,
public accountants, attorneys and financial advisors to supply all information reasonably requested
by any such seller, underwriter, attorney, accountant or agent in connection with such registration
statement;

               (h) use its best efforts to cause all such Restricted Stock to be listed on a recognized U.S.
stock exchange or traded on a U.S. inter-dealer quotation system and, if similar securities issued
by the Company are already so listed, on each securities exchange or inter-dealer quotation system
on which similar securities issued by the Company are then listed or traded;

               (i) provide a transfer agent and registrar for all such Restricted Stock not later than the
printing of any preliminary prospectus;

               (j) assist any underwriter or seller(s) of at least $5,000,0000 of Restricted Stock, based on
the then Current Market Price (as such term is defined in the Certificate of Designation),
participating in such registration or offering in its marketing efforts with prospective investors
by causing the Company’s officers, directors and employees to participate in reasonable marketing
efforts, including “roadshow” presentations in such locations and at such times as the Company and
the managing underwriter may agree, or such seller(s) may reasonable request, in connection with
any offering;

               (k) otherwise use its best efforts to comply with all applicable rules and regulations of the
Commission or any other applicable regulatory authority, and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering the period of at least
twelve months beginning with the first day of the Company’s first full calendar quarter after the
effective date of the registration statement, which earnings statement shall satisfy the provisions
of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

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               (l) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related offering
document or suspending the qualification of any Restricted Stock included in such registration
statement or offering document for sale in any jurisdiction, the Company will use its reasonable
best efforts promptly to obtain the withdrawal of such order; and

               (m) use its reasonable best efforts to cause such Restricted Stock covered by such
registration statement to be registered with or approved by such other governmental agencies or
authorities as may be necessary to enable the sellers thereof to consummate the disposition of such
Restricted Stock.

          For purposes of Sections 4(a) and (b) above and of Section 2(c)
hereof, the period of distribution of Restricted Stock in a firm commitment underwritten public
offering shall be deemed to extend until each underwriter has completed the distribution of all
securities purchased by it, and the period of distribution of Restricted Stock in any other
registration shall be deemed to extend until the earlier of the sale of all Restricted Stock
covered thereby or six months after the effective date thereof.

          In connection with each registration hereunder, the selling holders of Restricted Stock will
furnish to the Company such information with respect to themselves and the proposed distribution by
them as shall be necessary in order to assure compliance with Federal and applicable state
securities laws.

          In connection with each registration pursuant to Sections 2 and 3 hereof
covering an underwritten public offering, the Company agrees to enter into such customary
agreements (including underwriting agreements) as the managing underwriter selected in the manner
herein provided may request in such form and containing such provisions as are customary in the
securities business for such an arrangement between underwriters and companies of the Company’s
size and investment stature, provided that such agreement shall not contain any such provision
applicable to the Company which is inconsistent with the provisions hereof.

          The Company agrees (i) not to effect any public sale or distribution of its capital stock or
any securities convertible into or exchangeable or exercisable for such securities, during the
seven days prior to and during the 90-day period beginning on the effective date of any
registration statement (except as part of such underwritten registration pursuant to the terms
hereof or pursuant to registrations on Forms S-4 or S-8 or any successor forms), unless the

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underwriters managing such public offering otherwise agree, and (ii) to use its reasonable best
efforts to cause each holder of at least five percent (5%) (on a fully diluted basis) of its
capital stock, or any securities convertible into or exchangeable or exercisable for its capital
stock (other than in a public offering pursuant to the terms hereof) to agree not to effect any
public sale or distribution (including sales pursuant to Rule 144 under the Securities Act) of any
such securities during such period (except as part of such underwritten offering, if otherwise permitted
pursuant to the terms hereof), unless the underwriters managing such public offering otherwise
agree.

          Any holder of Restricted Stock, and their permitted transferees, receiving any written notice
from the company regarding the Company’s plans to file a registration statement shall treat such
notice confidentially and shall not disclose such information to any person other than as necessary
to exercise its rights under this Agreement.

          Section 5. Expenses. All expenses incurred by the Company in complying with
Sections 2 and 3 hereof, including, without limitation, all registration and filing
fees, fees and expenses of compliance with securities and blue sky laws, fees and expenses in
connection with any listing of the Common Stock on a securities exchange or inter-dealer quotation
system, printing expenses, fees and disbursements of counsel and the independent registered public
accounting firm for the Company and the fees and disbursements of the underwriters, fees of the
National Association of Securities Dealers, Inc., transfer taxes, fees of transfer agents and
registrars and reasonable fees and expenses of one counsel for the sellers of Restricted Stock, but
excluding any Selling Expenses (as defined below), are herein called “Registration Expenses”. All
underwriting discounts and selling commissions applicable to the sale of Restricted Stock are
herein called “Selling Expenses.” The Company will pay all Registration Expenses in connection
with each registration statement filed pursuant to Section 2 or 3 hereof. All
Selling Expenses incurred in connection with any sale of Restricted Stock by any participating
seller shall be borne by such participating seller, or by such persons other than the Company
(except to the extent the Company shall be a seller) as they may agree.

          Section 6. Indemnification. In the event of a registration of any of the Restricted
Stock under the Securities Act pursuant to Section 2 or 3 hereof, the Company will
indemnify and hold harmless each seller of such Restricted Stock thereunder and each underwriter of
such Restricted Stock thereunder and their respective officers, directors and employees and each
other person, if any, who controls such seller or underwriter within the meaning of the Securities
Act, against any and all losses, claims, damages, expenses or liabilities, joint or several, to
which such person may become subject under the Securities Act or otherwise,

14

 

insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in any registration
statement under which such Restricted Stock was registered under the Securities Act pursuant to
Section 2 or 3, any preliminary prospectus (unless such statement was corrected in
the final prospectus) or final prospectus contained therein, any amendment or supplement thereof,
any materials or information provided to investors by, or with the approval of, the Company in
connection with the marketing of the offering of the Restricted Stock, including any roadshow or
investor presentations made to investors by the Company (whether in person or electronically), or
any application, filing or other material filed, registered, distributed or otherwise furnished by
the Company or with the consent of the Company in connection with the securities laws of any state
or political subdivision thereof, including any blue sky application, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will reimburse each such
person for any legal or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability, expense or action; provided, however, that
the Company will not be liable in any such case if and to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission so made in conformity with information furnished by such person in
writing specifically for use in such registration statement or prospectus.

          In the event of a registration of any of the Restricted Stock under the Securities Act
pursuant to Section 2 or 3 hereof, each seller of such Restricted Stock thereunder,
severally and not jointly, will indemnify and hold harmless the Company and each person, if any,
who controls the Company within the meaning of the Securities Act, each officer of the Company who
signs the registration statement, each director of the Company, each underwriter and each person
who controls any underwriter within the meaning of the Securities Act, against all losses, claims,
damages, expenses or liabilities, to which the Company or such officer or director or underwriter
or controlling person may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages, expenses or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact contained in
the registration statement under which such Restricted Stock was registered under the Securities
Act pursuant to Section 2 or 3, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the Company and

15

 

each such officer, director, underwriter and controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that such seller will be liable
hereunder in any such case if and only to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in reliance upon and in conformity with information pertaining
to such seller, as such, furnished in writing to the
Company by such seller specifically for use in such registration statement or prospectus;
provided, further, however, that the liability of each seller hereunder
shall be limited to the proportion of any such loss, claim, damage, liability or expense which is
equal to the proportion that the public offering price of the shares sold by such seller under
such registration statement bears to the total public offering price of all securities sold
thereunder, but not to exceed the proceeds received by such seller from the sale of Restricted
Stock covered by such registration statement.

          Promptly after receipt by an indemnified party hereunder of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission
so to notify the indemnifying party shall not relieve it from any liability which it may have to
any indemnified party under this Section 6 unless the indemnified party’s defense of such
action is materially and adversely affected. In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume
and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party,
and, after notice from the indemnifying party to such indemnified party of its election to assume
and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified
party under this Section 6 for any legal expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than reasonable costs of investigation and of
liaison with counsel so selected; provided, however, that, if the indemnified
party shall have reasonably concluded that there may be reasonable defenses available to it which
are different from or additional to those available to the other party or parties thereto or if the
interests of the indemnified party reasonably may be deemed to conflict with the interests of the
other party or parties thereto, the indemnified party shall have the right to select a separate
counsel and to assume such legal defenses and otherwise to participate in the defense of such
action, with the expenses and fees of such separate counsel and other expenses related to
such participation to be reimbursed by the indemnifying party as incurred.

16

 

          Notwithstanding the foregoing, any indemnified party shall have the right to retain its own
counsel in any such action, but the fees and disbursements of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party shall have failed to retain counsel for
the indemnified party as aforesaid, (ii) the indemnified party shall have reasonably concluded that
there may be reasonable defenses available to it which are different from or additional to those
available to the other party or parties thereto or that the interests of the
indemnified party conflict with the interests of the other party or parties thereto, or (iii)
the indemnifying party and such indemnified party shall have mutually agreed to the retention of
such counsel. It is understood that the indemnifying party shall not, in connection with any
action or related actions in the same jurisdiction, be liable for the fees and disbursements of
more than one separate firm qualified in such jurisdiction to act as counsel for the indemnified
party. The indemnifying party shall not (i) without the prior written consent of the indemnified
parties (which consent shall not be unreasonably withheld), settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding
in respect of which indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action) unless such
settlement, compromise or consent includes an unconditional release of each indemnified party from
all liability arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any proceeding effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with such consent or if there be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any
loss or liability by reason of such settlement or judgment. If the indemnification provided for in
the first two paragraphs of this Section 6 is unavailable to or insufficient to hold
harmless an indemnified party under such paragraphs in respect of any losses, claims, damages or
liabilities or actions referred to therein, then each indemnifying party shall in lieu of
indemnifying such indemnified party contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages, liabilities or actions in such proportion as
appropriate to reflect the relative fault of the Company, on the one hand, and the sellers of such
Restricted Stock, on the other, in connection with the statement or omissions which resulted in
such losses, claims, damages, liabilities or actions, as well as any other relevant equitable
considerations including, without limitation, the failure to give any notice under the second
paragraph of this Section 6. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company, on the
one hand, or by the sellers of such Restricted Stock, on the other hand, and to the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.

17

 

          The Company and the sellers of Restricted Stock agree that it would not be just and equitable
if contribution pursuant to this Section 6 were determined by pro rata
allocation (even if all of the sellers of Restricted Stock were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount paid or payable by
an indemnified party as a result of the losses, claims, damages, liabilities or action referred
to in the immediately preceding paragraph shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this and the immediately preceding paragraph, the sellers of such Restricted Stock
shall not be required to contribute any amount in excess of the amount, if any, by which the total
price at which the Common Stock sold by each of them was offered to the public exceeds the amount
of any damages which they would have otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person
who is not guilty of such fraudulent misrepresentation. The indemnification of underwriters
provided for in this Section 6 shall be on such other terms and conditions as are at the
time customary and reasonably required by such underwriters and the indemnification of the sellers
of Restricted Stock in such underwriting shall, at the sellers’ request, be modified to conform to
such terms and conditions.

          The indemnification provided for under this Agreement will remain in full force and effect
regardless of any investigation made by or on behalf of the indemnified party or any officer,
director or controlling person of such indemnified party and will survive the transfer of
securities.

          Section 7. Changes in Common Stock. If, and as often as, there are any changes in the
Common Stock by way of stock split, stock dividend, combination or reclassification, or through
merger, consolidation, reorganization or recapitalization, or by any other means, appropriate
adjustment shall be made in the provisions hereof, as may be required, so that the rights and
privileges granted by this Agreement shall continue with respect to the Common Stock as so changed.

          Section 8. Lock-up Agreement. In connection with an Initial Public Offering, each
Investor agrees that it shall not sell publicly, make any short sale of, or otherwise dispose
publicly of, any Restricted Securities (other than sales or dispositions to members of the

18

 

Permitted Transferees (as such term is defined in the Stockholders’ Agreement) of the Institutional
Investors and other than with respect to those shares of Common Stock included in such
registration) without the prior written consent of the Company, for a period (the “Lock-up Period”)
designated by the Company in writing to the Investors, which period shall begin not more than 2
days prior to the Registration Date and shall not last more than 180 days after the Registration
Date; provided, however, that the Investors shall not be bound by the
foregoing unless (i) all executive officers, directors , and stockholders of the Company owning
more than one percent (1%) of the equity securities of the Company on a fully diluted basis agree
to a Lock-up Period of at least the same duration and on substantially similar terms as pertain to
the Investors and (ii) either all parties subject to a Lock-up Period shall only be released early
from their obligations thereunder on a pro rata basis, or one or more of such parties may be
released early for a portion (not to exceed 10% of the Restricted Securities owned by such party)
of their obligations thereunder for good reason, in the managing underwriter’s sole discretion.

          Section 9. Other Registration Rights. Except as provided in this Agreement, and
except for the registration rights granted to holders of shares of Series A Preferred Stock or
warrants to purchase shares of Series A Preferred Stock, the Company will not grant to any person
the right to request the Company to register any Common Stock, or any securities convertible or
exchangeable into or exercisable for Common Stock, which are superior to or pari passu with the
rights granted to the Investors hereunder, without the prior written consent of the Institutional
Investors, which consent shall not be unreasonably withheld. The Company will not enter into any
agreement inconsistent with the terms of this Agreement.

          Section 10. Representations and Warranties of the Company. The Company represents and
warrants to each of the other parties hereto as follows (which representations and warranties shall
survive the execution and delivery of this Agreement):

               (a) The execution, delivery and performance of this Agreement by the Company have been duly
authorized by all requisite corporate action and does not violate any provision of law, any order
of any court or other agency of government, and does not and will not violate the Certificate of
Incorporation or By-laws of the Company, or any provision of any indenture, agreement or other
instrument to which it or any of its properties or assets is bound, or conflict with, result in a
breach of or constitute (with due notice or lapse of time or both) a default under any such
indenture, agreement or other instrument, or result in the creation or imposition of any lien,
charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Company
or any of its subsidiaries.

19

 

               (b) This Agreement has been duly executed and delivered by the Company and constitutes the
legal, valid and binding obligation of the Company, enforceable in accordance with its terms.

          Section 11. Rule 144 Reporting. The Company agrees with each of the other parties
hereto as follows:

               (a) The Company shall make and keep current public information available as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after it has become
subject to the Exchange Act.

               (b) The Company shall file with the Commission in a timely manner all reports and other
documents as the Commission may prescribe under Section 13(a) or 15(d) of the Exchange Act, and the
rules and regulations promulgated thereunder at any time after the Company has become subject to
such reporting requirements of the Exchange Act.

               (c) The Company shall furnish to each holder of Restricted Securities forthwith upon request
(which request shall state that such holder has a present intention to sell (within the meaning of
Rule 144) Restricted Securities): (i) a written statement by the Company as to its compliance with
the reporting requirements of Rule 144 (at any time from and after 90 days following the effective
date of the first registration statement of the Company for an offering of its securities to the
general public), and of the Exchange Act (at any time after it has become subject to such reporting
requirements), (ii) a copy of the most recent annual or quarterly report of the Company filed with
the Commission, and (iii) such other reports and documents so filed as such holder may reasonably
request, in each case set forth in clauses (ii) and (iii), to the extent any such report shall not
be available on the Commission’s EDGAR system, to avail itself of any rule or regulation of the
Commission allowing a holder of Restricted Securities to sell any such securities without
registration.

          Section 12. Consent by Institutional Investors to Joinder. The Institutional
Investors each hereby consents and agrees to the addition, at any time and from time to time, of
each of the Permitted New Investors as a party to this Agreement.

20

 

          Section 13. Miscellaneous.

               (a) The obligations and rights under Sections 2, 3 and 8 shall
terminate as to an Investor when (i) such Investor is no longer an “affiliate” as used in Rule 144
and (ii) such Investor is permitted to sell all Restricted Stock then held by it pursuant to Rule
144(k).

               (b) All covenants and agreements contained in this Agreement by or on behalf of any of the
parties hereto shall bind and inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not. Without limiting the generality of the foregoing, the
registration rights conferred herein on the holders of Restricted Securities shall inure to the
benefit of any and all subsequent holders from time to time of the Restricted Securities, but only
to the extent that the transfer of same is permitted under the Transaction Documents (as such term
is defined in the Purchase Agreement) and only to the further extent that the transferor of such
Restricted Securities would have been entitled to such rights had it not transferred such
Restricted Securities.

               (c) All notices, demands and other communications provided for or permitted hereunder shall be
made in writing and shall be by registered or certified first-class mail, return receipt requested,
telecopier (with receipt confirmed), courier service or personal delivery:

               if to the Investors, to their respective addresses on Annex I hereto:

               if to the Company:

Biodel Inc.

6 Christopher Columbus Avenue

Danbury, CT 06810

Telecopier No.: 203-798-3601

Attention: Dr. Solomon S. Steiner, Ph.D.

21

 

with a copy to:

Troutman Sanders LLP

The Chrysler Building

405 Lexington Avenue

New York, NY 10174

Telecopier No.: (212) 704-6288

Attention: Mr. William D. Freedman, Esq.

or to such other address or addresses as shall have been furnished in writing to the other parties
hereto. Each party hereto agrees, at all times, to provide the Company with an address for notices
hereunder.

          All such notices and communications shall be deemed to have been duly given: when delivered by
hand, if personally delivered; when delivered by courier, if delivered by commercial overnight
courier service; if mailed, five Business Days (as defined in the Purchase Agreement) after being
deposited in the mail, postage prepaid; or if telecopied, when receipt is acknowledged.

               (d) THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND ENFORCED UNDER, THE
LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED
ENTIRELY WITHIN SUCH STATE.

               (e) (I) EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY
BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE
SOUTHERN DISTRICT OF NEW YORK AND HEREBY EXPRESSLY SUBMITS TO THE PERSONAL JURISDICTION AND VENUE
OF SUCH COURTS FOR THE PURPOSES THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER VENUE AND ANY
CLAIM THAT SUCH COURTS ARE AN INCONVENIENT FORUM. EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
THE MAILING OF COPIES THEREOF BY

22

 

REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS ADDRESS SET FORTH IN SECTION 13(C), SUCH
SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH MAILING.

          (II) THE COMPANY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING
OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE
PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. EXCEPT AS PROHIBITED BY LAW, THE COMPANY HEREBY WAIVES
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION
TO, ACTUAL DAMAGES.

               (f) This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof and may not be modified or amended except in writing.

               (g) Telefacsimile transmissions of any executed original document and/or retransmission of any
executed telefacsimile transmission shall be deemed to be the same as the delivery of an executed
original. At the request of any party hereto, the other parties hereto shall confirm telefacsimile
transmissions by executing duplicate original documents and delivering the same to the requesting
party or parties. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

               (h) The Company (on the one hand) and the Investors (on the other hand) agree that any
amendment to the Federal securities laws (and regulations promulgated thereunder (and related
registration forms), and related state securities laws shall not affect the substantive
registration requirements (and other obligations of the Company) set forth in this Agreement; and,
following any such amendment, the Company shall continue to be required to cause the registration
of Restricted Stock (and pay all Registration Expenses and provide indemnification) under the
Federal securities laws, as amended, in a manner consistent to carry out the intent and purposes of
(and on terms as similar as practicable as the terms set forth in) this Agreement.

23

 

               (i) If any one or more of the provisions contained in this Agreement, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in every other respect and
of the remaining provisions hereof shall not be in any way impaired, unless the provisions held
invalid, illegal or unenforceable shall substantially impair the benefits of the remaining
provisions of this Agreement. The parties hereto further agree to replace such invalid, illegal or
unenforceable provision of this Agreement with a valid, legal and enforceable provision that will
achieve, to the extent possible, the economic, business and other purposes of such invalid, illegal
or unenforceable provision.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

24

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written.

	 	 	 	 	 	 	 
	 	 	BIODEL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Solomon Steiner 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Solomon S. Steiner, Ph.D.	 	 
	 

	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	GREAT POINT PARTNERS I, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Great Point Partners I GP, LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Kroin 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: David Kroin	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	VIVO VENTURES FUND V, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Managing Member of Vivo Ventures V, LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Albert Cha 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Albert Cha	 	 
	 

	 	 	 	Title: Managing Member	 	 

25

 

	 	 	 	 	 	 	 
	 	 	VIVO VENTURES V AFFILIATES FUND, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Managing Member of Vivo Ventures V, LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Albert Cha	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Albert Cha	 	
	 

	 	 	 	Title: Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	CADUCEUS PRIVATE INVESTMENTS II, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Eric A. Bittelman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eric A. Bittelman	 	 
	 

	 	 	 	Title: CFO, OrbiMed Capital GP II
LLC
          General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	CADUCEUS PRIVATE INVESTMENTS II (QP), L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Eric A. Bittelman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eric A. Bittelman	 	 
	 

	 	 	 	Title: CFO, OrbiMed Capital GP II
LLC
          General Partner	 	 
	 
	 	 	 	 	 	 
	i
	 	 	 	 	 	 
	 	 	UBS JUNIPER CROSSOVER FUND, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Eric A. Bittelman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eric A. Bittelman	 	 
	 

	 	 	 	Title: CFO, OrbiMed Advisors, LLC	 	 

 

 

	 	 	 	 	 	 	 
	 	 	NEW ENGLAND PARTNERS CAPITAL, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	NEP Capital, LLC,	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Rousseau	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: John Rousseau	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	NEXUS MEDICAL PARTNERS II S.C.A. SICAR	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Nexus Medical Luxembourg Sarl	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Rousseau	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: John Rousseau	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Illegible	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title: Director	 	 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

 

 

ANNEX I

NOTICE INFORMATION FOR THE INVESTORS

Great Point Partners I, L.P.

165 Mason Street

Greenwich, CT 06824

Telecopier No.:

Attention: Mr. David Kroin

Email:

With a copy to:

Morrison Cohen LLP

909 Third Avenue

New York, NY 10022

Telecopier No.:

Attention: David A. Scherl, Esq. and Jack Levy, Esq.

Email:

Vivo Ventures Fund V, L.P.

Vivo Ventures V Affiliates Fund, L.P.

c/o Vivo Ventures

575 High Street, Suite 201

Palo Alto, CA 94301

Telecopier No.:

Attention: Dr. Albert Cha, MD PhD

Email:

Caduceus Private Investments II, LP

Caduceus Private Investments II (QP), LP

UBS Juniper Crossover Fund, L.L.C.

c/o OrbiMed

767 Third Avenue, 30th Floor

New York, NY 10017

Attention: Samuel P. Wertheimer, Ph.D

Email:

28

 

With a copy to:

Bingham McCutchen

50 Federal Street

Boston, MA 02110-1726

Attention: James Carrigan

Email:

New England Partners Capital, L.P.

Nexus Medical Partners II S.C.A. SICAR

One Boston Place, Suite 3630

Boston, MA 02108

Attention: John Rousseau

Email:

29

 

ANNEX II

CONSENT AND JOINDER AGREEMENT

(See Attached)

30

 

ANNEX III

PERMITTED NEW INVESTORS, NEW INVESTOR

SHARES AND NEW INVESTOR WARRANTS

(See Attached)

31EX-10.1

 

Exhibit 10.1

INDEMNIFICATION AGREEMENT

          INDEMNIFICATION AGREEMENT dated as of the [___] day of [___] (this “Agreement”) by and
between Biodel Inc., a Delaware corporation (the “Company”), and [___] (the
“Indemnitee”), [a member of the board of directors][and][an officer] of the Company.

          The Company desires to attract and retain the services of highly qualified individuals, such
as the Indemnitee, to serve as directors or officers of the Company or its subsidiaries. In
furtherance thereof, the Company wishes to indemnify such individuals so as to provide them with
the protection set forth in this Agreement. Therefore, the Company has agreed with the Indemnitee
upon the terms, provisions and conditions of indemnification as set forth in this Agreement.

          Certain capitalized terms used in this Agreement are defined in section 7 hereof.

          NOW THEREFORE, the Company and the Indemnitee hereby agree as follows:

          1. Indemnification.

          1.1 Third Party Proceedings. The Company shall indemnify the Indemnitee if the
Indemnitee is or was a party to or witness or other participant in, or is threatened to be made a
party to, any threatened or pending Action (other than any Action by or in the right of the
Company, as to which Section 1.2 shall be applicable) by reason of the fact that Indemnitee is or
was a director or officer of the Company or any Subsidiary of the Company, by reason of any action
or inaction on the part of the Indemnitee while a director or officer of the Company or any
Subsidiary of the Company, and/or by reason of the fact that the Indemnitee is or was serving at
the request of the Company as a director, officer, employee or agent of another Entity, against all
of the Indemnitee’s Indemnified Losses if, but only if, (i) the Indemnitee acted in good faith and
in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company or such Subsidiary, and, with respect to any criminal Action, had no reasonable cause to
believe the Indemnitee’s conduct was unlawful, and (ii) such indemnification is otherwise permitted
by applicable law. The termination of any Action by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that
the Indemnitee did not act in good faith and in a manner that the Indemnitee reasonably believed to
be in the best interests of the Company or such Subsidiary or that the Indemnitee had reasonable
cause to believe that the Indemnitee’s conduct was unlawful.

          1.2 Actions by or in the Right of the Company. The Company shall indemnify the
Indemnitee if the Indemnitee is or was a party to or a witness or other participant in or is
threatened to be made a party to any threatened or pending Action by or in the right of the Company
or any Subsidiary of the Company to procure a judgment in its favor by reason of the fact that the
Indemnitee is or was a director or officer of the Company or any Subsidiary of the Company, by
reason of any action or inaction on the part of the Indemnitee while a director or officer of the
Company or a Subsidiary of the Company or by reason of the fact that the Indemnitee is or was
serving at the request of the Company as a director, officer, employee or agent of another Entity,
against all Indemnified Losses if, but only if, (i) the Indemnitee acted in

 

 

good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company and its stockholders, and (ii) such indemnification is permitted by
applicable law. No indemnification shall be made in respect of any Action as to which the
Indemnitee shall have been finally adjudged to be liable to the Company in the performance of the
Indemnitee’s duties to the Company and its stockholders, unless and only to the extent that the
court in which such Action is or was pending shall determine upon application that, in view of all
the circumstances of the Action, the Indemnitee is fairly and reasonably entitled to indemnity for
Indemnified Losses and then only to the extent that the court shall determine.

          2. Expenses; Indemnification Procedure.

          2.1 Advancement of Expenses. The Company shall advance all reasonable out-of-pocket
expenses incurred by the Indemnitee in connection with the investigation, defense, settlement or
appeal of any Action referenced in Section 1.1 or 1.2 hereof. The Indemnitee hereby undertakes to
repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that
the Indemnitee is not entitled to be indemnified by the Company as authorized hereby or that such
indemnification is not otherwise permitted by applicable law. The advances to be made hereunder
shall be paid by the Company to the Indemnitee within thirty (30) days following delivery of a
written request therefor from the Indemnitee and the making of security arrangements reasonably
satisfactory to the Company. In the event it shall have been ultimately determined that the
Indemnitee is not entitled to be indemnified by the Company as authorized hereby or that such
indemnification is not otherwise permitted by applicable law, any advances made to the Indemnitee
by the Company shall be repaid to the Company within thirty (30) days following delivery of a
written request therefor from the Company.

          2.2 Determination of Conduct. The determination that indemnification of the
Indemnitee is proper under the circumstances because the Indemnitee has met the applicable standard
of conduct set forth in Sections 1.1 or 1.2 of this Agreement shall be made by any of the
following: (1) the Company’s Board of Directors (or by a duly authorized executive committee
thereof) by a majority vote of directors (or committee members) who are not parties to such Action,
even though less than a quorum, (2) if there are no such disinterested directors of the Company, or
if such disinterested directors so direct, by independent legal counsel chosen by such
disinterested director or the Company, in a written opinion, or (3) by the Company’s stockholders,
with the shares owned by the Indemnitee not being entitled to vote thereon. Notwithstanding the
foregoing, if the Company does not determine that indemnification is proper under the
circumstances, the Indemnitee may seek determination by any court of competent jurisdiction that
indemnification hereunder is appropriate.

          2.3 Notice/Cooperation by the Indemnitee. The Indemnitee shall, as a condition
precedent to the Indemnitee’s right to be indemnified under this Agreement, give the Company notice
in writing as soon as practicable of any claim, and/or of the commencement of any Action, against
the Indemnitee for which indemnification will or could be sought under this Agreement. Any such
notice to the Company shall be given in the manner set forth in Section 8.1 hereof. In addition,
the Indemnitee shall give the Company such information and shall cooperate with respect to such
Action as the Company may reasonably require and as shall be within the Indemnitee’s power.
Failure to give prompt written notice pursuant to this Section 2.3 shall release the Company from
its indemnification obligations hereunder if and only to the extent that

2

 

the Company’s ability to defend such Action is materially affected by the failure to give such
prompt written notice.

          2.4 Notice to Insurers. If, at the time of the receipt of a notice pursuant to
Section 2.3 of a claim, and/or of the commencement of any Action, against the Indemnitee for which
indemnification will or could be sought under this Agreement, the Company has director and/or
officer liability insurance in effect, the Company shall give prompt notice of such claim or the
commencement of such Action to the insurers in accordance with the procedures set forth in the
respective policies.

          2.5 Selection of Counsel. In any matter for which the Company shall provide
indemnification for the Indemnitee, the Company shall be entitled to assume the defense of the
Action, with legal counsel selected by the Company and reasonably acceptable to the Indemnitee,
upon the delivery to the Indemnitee of written notice of its election so to do. After delivery of
such notice and the retention of legal counsel by the Company for that purpose, the Company will
not be liable to the Indemnitee under this Agreement for any fees or expenses of legal counsel
subsequently incurred by the Indemnitee with respect to the same Action; provided that the
Indemnitee shall have the right to employ separate counsel in any such proceeding at the
Indemnitee’s sole cost and expense.

          3. Additional Indemnification Provisions; Non-Exclusivity.

          3.1 Application. The provisions of this Agreement shall be deemed applicable to all
actual or alleged actions or omissions by the Indemnitee arising, related to or connected with or
during any and all periods of time that the Indemnitee was, is, or shall be serving as a director
or officer of the Company or any Subsidiary of the Company, or, at the request of the Company, as a
director, officer, employee or agent of another Entity.

          3.2 Scope. The Company hereby agrees to indemnify the Indemnitee to the fullest
extent permitted by applicable law (except as set forth in Section 6 hereof), notwithstanding that
such indemnification is not specifically authorized by the other provisions of this Agreement, the
Company’s Certificate of Incorporation or the Company’s By-laws. In the event of any changes,
after the date of this Agreement, in any applicable law, statute, or rule that expands the right of
a Delaware corporation to indemnify a member of its board of directors or an officer, such changes
shall be, ipso facto, within the purview of the Indemnitee’s rights and the Company’s obligations
under this Agreement.

          3.3 Enforcing the Agreement. If the Indemnitee properly makes a claim for
indemnification or an advance of expenses that is payable pursuant to the terms of this Agreement,
and that claim is not paid by the Company, or on its behalf, within ninety (90) days after a
written claim has been received by the Company, the Indemnitee may at any time thereafter bring
suit against the Company to recover the unpaid amount of the claim and if successful in such suit,
the Indemnitee shall be entitled to be paid also all reasonable out-of-pocket costs and expenses
(including, without limitation, reasonable attorneys’ fees and expenses) actually incurred in
connection with prosecuting such claim.

3

 

          3.4 Subrogation. In the event of any payments made by the Company to the Indemnitee
under this Agreement, the Company shall be subrogated to the extent of such payments to all of the
rights of recovery of the Indemnitee, who shall execute all documents and instruments and shall
take all actions that may be necessary or that may be reasonably requested by the Company to secure
such rights, including, without limitation, the execution of such documents necessary to enable the
Company effectively to bring suit to enforce such rights.

          3.5 Non-Exclusivity. The indemnification provided by this Agreement shall not be
deemed exclusive of any rights to which an the Indemnitee may be entitled under the Company’s
Certificate of Incorporation, its By-laws, any agreement, any vote of stockholders or disinterested
directors, applicable law, insurance policy or otherwise, both as to action in the Indemnitee’s
official capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to the Indemnitee for an action
taken or not taken while serving in an indemnified capacity even though the Indemnitee may have
ceased to serve in such capacity at the time of any covered action, suit or other proceeding.

          4. Partial Indemnification. If the Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the Indemnitee’s Indemnified
Losses in the investigation, defense, appeal or settlement of any Action but not, however, for the
total amount thereof, the Company shall nevertheless indemnify the Indemnitee for that portion to
which the Indemnitee is entitled.

          5. Mutual Acknowledgment. Both the Company and the Indemnitee acknowledge that in certain
instances, federal law or public policy may override applicable state law and prohibit the Company
from indemnifying its directors or officers under this Agreement or otherwise. For example, the
Company and the Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has
taken the position that indemnification is not permissible for liabilities arising under certain
federal securities laws, and federal legislation prohibits indemnification for certain ERISA
violations. The Indemnitee understands and acknowledges that the Company may be required in the
future to undertake with the SEC to submit the question of indemnification to a court in certain
circumstances for a determination of the Company’s right under public policy to indemnify the
Indemnitee, and the Indemnitee acknowledges and agrees that in such instances indemnification
hereunder may not be available or may be limited.

          6. Exceptions. Any other provision of this Agreement to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement for the following:

          (i) Claims Initiated by the Indemnitee. To indemnify or advance expenses
to the Indemnitee with respect to any Action initiated or brought voluntarily by the
Indemnitee and not by way of defense, unless said Action was authorized by the Board
of Directors of the Company.

          (ii) Improper Personal Benefit. To indemnify the Indemnitee against
liability for any transaction from which the Indemnitee, or any Affiliate of

4

 

the Indemnitee, derived an improper personal benefit, including, but not limited
to, self-dealing or usurpation of a corporate opportunity.

          (iii) Dishonesty. To indemnify the Indemnitee if a judgment or other
final adjudication adverse to the Indemnitee established that the Indemnitee committed
acts of active and deliberate dishonesty, with actual dishonest purpose and intent,
which acts were material to the cause of action so adjudicated.

          (iv) Grounds for “Cause” Employment Terminations. To indemnify the
Indemnitee in connection with any matter that would constitute “Cause” for the
termination of the Indemnitee by the Company under any employment agreement between
the Indemnitee and the Company or any of its subsidiaries.

          (v) Insured Claims. To indemnify the Indemnitee for any amounts that
have been paid directly to the Indemnitee by an insurance carrier under a policy of
liability insurance maintained by the Company.

          (vi) Claims Under Section 16(b). To indemnify the Indemnitee for an
accounting of profits in fact realized from the purchase and sale of securities within
the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or
any similar successor statute.

          7. Definitions. For purposes of this Agreement, the following terms shall have the following
meanings:

          7.1 “Action” means any threat, action, cause of action, suit, appeal, mediation, arbitration,
settlement or other proceeding of any kind, whether civil, criminal, administrative or
investigative, and in each case any threat thereof.

          7.2 “Affiliate” means any Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with the Person specified.

          7.3 “Control”, as used with respect to any Person, means the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise and, in any event and without limitation of the previous sentence, any Person owning
fifty percent (50%) or more of the voting securities of a second Person shall be deemed to control
that second Person.

          7.4 “Entity” means any corporation, partnership, joint venture, limited liability company,
trust or other enterprise.

          7.5 “ERISA” means the Employee Retirement Income Security Act of 1974, together with all
amendments thereto and all rules and regulations thereunder.

          7.6 “Indemnified Losses” means any and all liabilities and losses, judgments, fines, penalties
and amounts paid in settlement (but only if such settlement is approved in advance by the Company),
costs and expenses (including, without limitation, reasonable

5

 

attorneys’ fees and expenses) actually and reasonably incurred by the Indemnitee in connection
with such action, suit or proceeding.

          7.7 “Person” means any individual, partnership, limited liability company, corporation, joint
venture, trust, estate or other Entity.

          7.8 “Subsidiary” means, with respect to any Person (including the Company), any Entity of
which the Person owns more than 50% of the voting power.

          8. Miscellaneous.

          8.1 Notices. Any notice or demand which is required or provided to be given under
this Agreement shall be deemed to have been sufficiently given and received for all purposes when
delivered by hand or by telecopy that has been confirmed as received by 5:00 P.M. on a business
day, one (1) business day after being sent by nationally recognized overnight courier or received
by telecopy after 5:00 P.M. on any day, or five (5) business days after being sent by certified or
registered mail, postage and charges prepaid, return receipt requested, to the parties at the
addresses indicated on the signature page hereto

          8.2 Entire Agreement. This Agreement supersedes all prior discussions and agreements
between the parties with respect to the subject matter hereof and thereof and contains the sole and
entire agreement between the parties hereto with respect to the subject matter hereof.

          8.3 Waiver. Any term or condition of this Agreement may be waived at any time by the
party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed by or on behalf of the party waiving such term or
condition. No waiver by any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies, either under this Agreement or
by law or otherwise afforded, shall be cumulative and not alternative.

          8.4 Amendment. This Agreement may be amended, supplemented or modified only by a
written instrument duly executed by or on behalf of each party hereto.

          8.5 No Third Party Beneficiary. The terms and provisions of this Agreement are
intended solely for the benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon
any other Person.

          8.6 Successors, Etc.; No Assignment; Binding Effect. This Agreement is binding upon
all of the successors and assigns of, and any purchaser of all or substantially all of the assets
of, the Company. Neither this Agreement nor any right, interest or obligation hereunder may be
assigned by any party hereto without the prior written consent of the other party hereto, and any
attempt to do so shall be void.

          8.7 Headings. The headings used in this Agreement have been inserted for convenience
of reference only and do not define or limit the provisions hereof.

6

 

          8.8 Invalid Provisions. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any present or future law, and if the rights or obligations of any
party hereto under this Agreement shall not be materially and adversely affected thereby, (a) such
provision shall be fully severable, (b) this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never composed a part hereof, (c) the remaining
provisions of this Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance and (d) in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as a part of this Agreement
a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

          8.9 Drafting History. In resolving any dispute or construing any provision in this
Agreement, there shall be no presumption made or inference drawn (a) because the attorneys for one
of the parties drafted such provision of this Agreement, (b) because of the drafting history of
this Agreement, or (c) because of the inclusion of a provision not contained in a prior draft or
the deletion of a provision contained in a prior draft.

          8.10 Governing Law. This Agreement shall be governed by and construed in accordance
with the Laws of the State of Delaware applicable to a contract executed and performed in such
State without giving effect to the conflicts of laws principles thereof, which would result in the
applicability of the Laws of another jurisdiction.

          8.11 Jurisdiction. Each of the parties hereto hereby irrevocably consents and
submits to the jurisdiction of the United States District Court for the Southern District of New
York and the courts of the State of New York located in New York County in connection with any
Action arising out of or relating to this Agreement, waives any objection to venue in the United
States District Court for the Southern District of New York and the courts of the State of New York
located in New York County, and agrees that service of any summons, complaint, notice or other
process relating to such Action may be effected in the manner provided by Section 8.1. In any
Action arising out of or relating to this Agreement, each of the parties waives trial by jury.

          8.12 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

[Signature Page Follows]

7

 

          IN WITNESS WHEREOF, the parties hereby have executed this Agreement as of the date first above
written.

	 	 	 
	 

	 	BIODEL INC.
	 
	 	 
	 

	 	By:                                                             
	 

	 	       Name:
	 

	 	       Title:
	 
	 	 
	 

	 	          Address and facsimile number for notices:
	 
	 	 
	 

	 	          Biodel Inc.
	 

	 	          6 West Kenosia Avenue
	 

	 	          Danbury, CT 06810
	 

	 	          Attn:                     
	 

	 	          Fax: 203-798-3601
	 
	 	 
	 

	 	                                                            
	 

	 	Name:
	 
	 	 
	 

	 	          Address and facsimile number for notices:

8

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